The lifecycle of products and services dictates that decline is inevitable. No matter how well your sales are doing now, you always need to think about tomorrow. Either that or sit back and watch as competitors eat up your customers.
Because nothing stands still, you need to develop your products and services even if you don’t want to grow. But if you want to eclipse the competition and grow your business – innovation can be king.
But hang on a minute. According to the 2007 BusinessWeek-BCG annual survey of senior executives, just 46% of respondents said they were satisfied with their return on innovation spend.
The same BusinessWeek-BCG survey also named Apple, the US based computer and iPod maker, ‘the world’s most innovative company’ for the third year running. Apple’s R&D spend is significantly lower than its main competitors, but year after year it yields more return on innovation spend than anyone else.
A global innovation study by management consultancy firm Booz Allen concludes that “It’s the process, not the pocketbook. Superior results seem to be a function of the quality of an organisation’s innovation process – the bets it makes and how it pursues them – rather than either the absolute or relative magnitude of its innovation spending.”
So, are you content to spend big money on innovation? Or do you see innovation as something more unique that grows from process and quality of judgement? Considering such questions is important if you want to innovate to grow.
More info - Use innovation to grow your business
Or visit the Planning how to grow section of the Business Link website.
Exporting goods and services to international markets presents many challenges and carries a fair share of risk. But exporting can deliver big benefits – including increased revenues, reduced reliance on domestic markets, or fast track growth.
In fact, there are many reasons why you may choose to export. You may decide:
- There is international demand for your goods or services
- There is scope for charging higher prices in international markets
- You want to reduce your reliance on domestic markets
- You want to grow or grow more quickly than you can solely in domestic markets
- You have the expertise to exploit unsaturated or growing international markets
- Competitive pressures in domestic markets force you to export to maintain profits
- Foreign competitors enter your domestic market, forcing you to counteract
- You want to launch an offensive into foreign markets before a competitor does
- Your business has relatively low production/labour costs compared to foreign competitors
- You have a strategic need, such as a desire to acquire technology, increased capacity or industry partners
So if you have good reasons to export… What are the next steps?
Assessing your export potential is crucial. Undertaking market research helps you identify and evaluate potential markets, encompassing an assessment of industry structure, likely levels of demand, the general competitive landscape and other factors such as whether you will need to develop your goods or services to adapt to foreign markets.
If your research suggests viable options, a carefully compiled export plan should be built defining precisely how you will enter your chosen markets.
To find out what’s next… Take a look at our Ten key steps to successful exporting
More info – View more resources on Exporting at the Business Link website
Workplace absence rises; one in three employees exaggerate sickness
According to a CBI / AXA survey workers took an average of seven days off sick in 2006, amounting to 175 million days at a cost of £13.4bn. The research suggests the most important factor affecting absence is the size of an organisation. Findings show that employers with less than 50 staff had on average 4 days absence per employee compared with double that figure in companies with over 5,000 employees.
A further independent survey commissioned by business consultancy firm Croner finds that a third of employees admit to exaggerating their sickness to justify taking time off. Results show that 91 per cent of employers felt cold and flu was a suitable reason for sickness compared to 81% of employees. Croner’s research suggests a possible disparity between employer and employee about what is or is not a justified reason for sickness.
More info – Manage absence and sickness
Regulation updates – Unlawful discrimination
Preventing unlawful discrimination on grounds of religion or belief in goods, facilities and services
From 30 April 2007, the law will require that you provide your normal service in a non-discriminatory way.
Preventing unlawful discrimination on grounds of sexual orientation in goods, facilities and services
From 30 April 2007, sexual orientation laws will require that you treat customers in a non-discriminatory way.
For information about upcoming regulation changes, including sector specific changes, visit the Regulation updates section of the Business Link website.
Some online trends fade as quickly as they appear. Blogs, podcasts and social networks are here to stay – at least for the time being. So should businesses get involved?
Well it depends. Finding a ‘fit’ between your business and whatever trend takes your fancy is vital. Whilst you may feel innovative experimenting with new ideas, without clear value to you and your audience, what’s the point? Sometimes the skill is deciding what not to do – just because something is new and innovative doesn’t mean you should do it.
But as demonstrated in our review, companies that do find a ‘fit’ see big benefits – from looking innovative or trendy, right through to measurable returns like saving money or engaging more effectively with customers.
Download our review of blogs, podcasts and social networks
The risk of work related ill health or injury exists in every workplace. That’s why all employers are required by law to carry out risk assessments and maintain regular checks to ensure compliance with health and safety requirements.
To dispel the myth that ‘risk assessments must always be long and complex’ the Health & Safety Executive says: “Risk assessments should be fit for purpose and acted upon. OK, if you’re running an oil refinery you’re going to need a fair amount of paperwork. But for most, bullet points work very well indeed.”
The Business Link guide Risk assessment – an overview summarises your legal obligations and how to meet them.
Of course, it’s not just about complying with the law. Demonstrating your duty of care by managing occupational health effectively will make your employees feel safer in their work. Preventing accidents and ill health could also save you money and improve efficiency.
If you are thinking ‘this doesn’t apply to my type of business’ or ‘the risks are low’ – think again. Here are just a few figures to change your mind:
- The Health and Safety Executive estimates that in 2005/2006: 2 million people were suffering from an illness they believed was caused by current or past jobs; 523,000 of these cases were new in the last 12 months; and 30 million days were lost overall due to work-related ill health.
- Affecting around 1 million people a year, Musculoskeletal disorders (MSDs) are the most common occupational illness in Great Britain. Upper Limb Disorder (often called RSI) can affect anyone using their upper arms to carry out their work – from computer users to assembly workers.
- A recent study carried out by the Medical Research Institute of New Zealand found 34% of 62 people admitted to hospital with deep vein thrombosis (DVT) had spent long periods of time at their desks, compared with 21% who had recently made a long haul flight.
Such findings reinforce the fact that occupational illness affects lots of people across a wide range of industry sectors and job roles. Implementing a well-managed approach to occupational health (up to and beyond legal requirements) can help minimise the personal risks and business costs of occupational illness and injury.
More info - Occupational health and welfare: an overview
More info – Ensure your employees are operating computers effectively
Or visit the People, health and welfare section of the Business Link website for a wide range of health, safety and occupational health related topics.