The word “innovation” is one of those words that can mean different things, depending on your background. Some associate it only with technology—AI, automation, or disruptive startups. Others think of it as something reserved for industry giants like Apple or Google. I believe midsize companies have a huge advantage and opportunity to innovate!
At its core, innovation simply means creating new value. It’s about solving problems in a better way, whether that means improving a product, rethinking a business model, or optimizing internal processes. But organizations can miss an opportunity if they aren’t prepared to receive great ideas.
Here’s a practical breakdown of what innovation really means—and why it’s essential for businesses of all sizes.
Innovation Is More Than Just Technology
Many assume innovation equals technology. While technology enables innovation, real innovation is about improving experiences, efficiency, and outcomes—whether through new tools, business strategies, or ways of thinking.
- Product innovation brings new improvements to existing products through better features or services. It can also mean adjacent products that service a different industry or uses current systems to solve a slightly different problem.
- Process innovation brings a better way of doing things such as setting priorities, knowing when to automate or when to bring a human in the loop, or finding ways to reduce costs without compromising what makes you special.
- Business model innovation can bring a new way to make money. For example, subscription services may enhance one-time purchases. Netflix didn’t just improve DVD rentals; it changed
Innovation Can Be Big or Small
Not all innovation is disruptive or groundbreaking—small, incremental changes can drive massive long-term gains.
- Incremental Innovation – Small improvements over time. (Example: Car companies improving fuel efficiency.)
- Disruptive Innovation – Radically changing the market. (Example: Uber replacing traditional taxis.)
- Sustainable Innovation – Making existing solutions better. (Example: Cloud storage improving over time.)
For example, a midsize payroll processing company noticed that many of their small businesses were forgetting to process payroll on time. They integrated smart, behavior-based reminders that analyzed processing habits and predicted when payroll should be run and notified customers in a frictionless way that made processing possible with one click.
Innovation Isn’t Just About Ideas—It’s About Execution
A great idea isn’t innovation until it’s successfully implemented. The most successful innovators:
- Identify real problems that need solving
- Test and refine their ideas before scaling
- Ensure the innovation delivers measurable value
An appropriate example here is that Steven Sasson of Kodak invented and patented the digital camera, however Kodak failed to execute on its potential. Companies like Apple and Samsung capitalized on that opportunity.
Innovation Is a Mindset, Not a One-Time Project
Businesses that treat innovation as a one-time initiative often fail. The most successful companies:
- Encourage a culture where employees feel safe to experiment – then recognize the gems
- Continuously seek ways to improve, adapt, and evolve – someone is on the receiving end of the gems
- Learn from failure rather than fearing it – some companies actually reward audacious ideas that bring lessons
Instead of trying to be the biggest retailer like Amazon, Shopify innovated by enabling millions of small businesses to start, sell market, and manage their online businesses—proving that innovation isn’t just about technology, but about rethinking business models.
Innovation Doesn’t Have to Be Expensive
Many midsize companies assume innovation requires massive budgets—but some of the most impactful innovations come from simple process improvements, better customer experiences, or creative thinking.
- Automating repetitive tasks – can bring more efficiency without hiring
- Finding a new niche markets – can yield business growth without reinventing the wheel
- Leveraging partnerships – may introduce new customers without major investments
For example, a small consulting firm created an AI-powered proposal generator, cutting proposal writing time by 50%—without hiring new staff.
Final Thoughts: Innovation Is About Creating Value
At its core, innovation is about:
- Solving problems in new and better ways
- Creating value, whether for customers, employees, or the business
- Being adaptable and continuously improving
The question isn’t whether your business should innovate—it’s how. Read other blog entries here.
Would you like insights tailored to your industry or specific business challenges? Contact us to discuss how we might support your innovation efforts.
