Of course it is important to survive in markets as a business. How can you keep existing in market that get more and more determined by plagiarism and tougher competitors? The answer does not seem easy. You have to create products with innovation that excites…
In every business the longing for news and new products is almost pure motivation. People are not really satisfied if no real progress exists. Therefore most industrial businesses invest in R&D – research and development in order to get more successful. And also small business owner have to focus on renewal. The numbers show that the focus on new invention is exceptionally high in large enterprises. And the gap has increased in the last years.
The tremendous spending on R&D: Amazon #1 (2018)
The following graphic shows the large spending. It is unbelievable how much money is invested. And it seems to pay out. Amazon manages to create growth as well as Google and not to forget many players in the car industry. Theses big companies almost seem to breath with new innovations and inventions. The reason for this spending are certainly unclear because growth might also be reached with tremendous low price strategies. But as can be seen at Apple or Google or Facebook new innovations seem to build almost magnetic bondage to customers. New inventions, new creations are always welcome.
Why exciting products drive growth more than any other product feature
They seem to create reach and excitement which is actually important in overfilled and mostly saturated markets. Since everything should ran faster and more efficiently customers are always looking for more value. It seems more important to receive another advantage in a competitive market, that also includes chances for new jobs, better loans, or higher incomes.
The pressure pushes upon large companies as well as on SME. But the small and medium Enterprises seem to lose track year by year. The question is, if the hard pressure and the longing for more innovations might reduce middle size companies even harder in the next 1-3 years. A dark scenario can be created. But there might be some shafts of sunlight not only in KI industries.
Excellence cluster for SME
Networking and joint venture are well known to large companies. If it is not possible to build up networking events also for small business with possibilities to connect, many enterprises might fall apart. Over 50% of the small and medium businesses are dying after 10 years. That seems a high quote but nevertheless half of all businesses are surviving. But this number might not make a change in keeping up these enterprises. Actually the SME are creating more than 2/3 of the total employment. And although this number might differ from country to country the high significance of these enterprises is undoubtedly high.
Innovations that excites
Innovations that can be seen now and then and in most cases they are responsible for rapid growth. New technologies can be the basis. Especially in the car industries basic inventions like ABS, or the airbag had also great effects on the sales of car producers. Also today modern navigation systems computational assistance like Parking Assistance systems or the provision of autonomous driving assistance is also today key to sales success. The better the features, the greater the sales success. And not only the technology but also the customer satisfaction while driving or using the product, make people long for more standards and better product features.