Branding efforts are vital to achieving innovation success, research has found.
The research - Branding Innovation: A StrategiCom Study of Singapore SMEs - explored how SME leaders perceive innovation, investigated the extent of innovation management and innovation success at SMEs and examined the presence and extent of branding efforts applied to such success.
The study showed that 91 per cent of Singapore SMEs understand the contemporary definition of innovation as a new development that adds value for a company and the stakeholder, is applicable to all businesses and does not necessarily require formal R&D.
However, only 21 per cent successfully apply innovation management tools.
Among this group, 51 per cent used human resource management to engage people to innovate and develop skills, 35 per cent searched external sources such as universities and research institutions to provide advice on innovation, 29 per cent sought to cooperate with external companies or the government to share the risk and cost of innovation, and 27 per cent conducted regular meetings for knowledge sharing.
Stressing that innovation goes beyond technical issues, Wilson Chew, principal consultant & CEO of StrategiCom, said: 'It is vital that SMEs manage innovation through a holistic approach, one that permeates all aspects of the organisation.'
Of the 21 per cent of respondents that recorded innovation success, 90.5 per cent applied branding efforts to commercialise their innovations.
The merits of branding an innovation lead to the main outcome that every company seeks - profitability. There are several reasons for this:
First, branding enhances the marketability of an innovation, increasing the receptiveness of a new product or service.
Secondly, a branded innovation can command a premium over a non-branded innovation, due to product differentiation.
Third, a strong brand generates long-term profitability for a company, especially in the local property, retail, F&B and environment industries.
Dr Chew said the profits a company generates from effective innovation commercialisation can be re-invested in other innovation areas that will generate new revenue streams.
But innovation tools and branding efforts are required to make the most of the commercial potential of innovation successes.
Full details of the study will be announced at the Singapore Brand Conference on March 25.
PRINT
E-MAIL
SHARE