Innovations can expand a company’s existing product line or add new services related to those existing products.  For example, a company may find a new use for their products that lets them expand into a new market, which attracts a new group of customers.  Selling products in multiple markets increases overall sales and reduces the impact on the bottom line if there’s a slow-down in one market.

Other business innovations may add new features to existing products.  One way to identify new features that may boost sales is to review customer feedback, market research and problems identified by market commentators.  If your existing customers are requesting a particular feature, there are likely other customers (and potential customers) that want the same feature.  If a new product feature becomes a “must have” feature in your market, you have created a competitive edge for your company.

Addressing problems in the market by providing a customer-friendly solution is a great way to distinguish your company from its competitors and position the company as an “innovator”. Companies that are innovators in their marketplace often enjoy the advantage of customers that are raving fans of the company and its products.  These happy customers provide valuable word-of-mouth advertising that further strengthens your leadership position in the market.

Developing a business innovation strategy that seeks to address unmet needs in the market and provide innovative products strengthens the company’s position in the market and creates a valuable competitive advantage.