Innovation provides many ways to increase revenue in your business. Properly managed innovation can increase sales of products or services.  An increase in sales can result from new products or services, as well as the introduction of new features for existing products or services.

Increased business revenue can result from:

  1. New customers that are attracted to the innovative products or new product features.
  2. Existing customers that purchase more of the new products or purchase the new products in addition to the products they previously purchased.
  3. Existing customers that purchase more frequently due to the new product innovations.

For example, certain individuals may not have purchased a particular type of electronic device due to perceived problems or confusion with operating the device.  However, when a version of the device with an innovative user interface is developed by a new company, these individuals purchase the product from the new company due to the ease of use.  In this example, the innovative product brings new customers into the market and increased revenue for that company.

When developing an Innovation Plan, be sure to consider opportunities to increase business revenue with both existing customers and new customers.  Also, consider how innovative products (and product features) can attract new customers who have not previously purchased products in your market.