In a business context, innovation is a process that involves dealing with the unknown, with uncertainty. But uncertainty doesn’t mean it’s impossible to reduce the risks. One way is to acquire an innovative solution that has been developed externally, by a startup, for example. Here are 5 practical tips on how to reduce the risk of buying an innovative solution.
1- Confront your ideas
At the root of every purchase is what’s known as “purchase intent”, that moment when you seriously consider buying a product or service. It’s the same for innovation, but before you come to the final decision, give yourself the opportunity to confront the reasons why you’d like to buy. Step outside your usual circles and seek out the opinions of others to validate your assumptions. For example, what would IT professionals have to say about acquiring a new solution for a marketing team? Don’t hesitate to involve users in your thinking too. Confronting your ideas and hypotheses will enable you to validate whether the proposed innovative solution is really the best option for your needs. In the current economic climate, it’s natural to be cautious about spending and tobuy only when necessary.
2- Big vision, small projects
In innovation, it’s often said to dream big – to reach for a view that you wouldn’t get in your usual working environment. However, once the big picture is in place, the trap often becomes wanting to “accomplish everything at once”. To reduce the risk involved in acquiring an innovation, it’s important to get back to basics. By planning the implementation of an innovation in small projects, you’ll be able to control your spending at each stage, and only commit to the next step if the results are conclusive. You only have to think of “that new system that nobody uses ” – a business classic – to understand the importance of a step-by-step approach. Startups are often very open to this approach.
3- Try before you buy
It’s all very well, but all too often we overlook the possibility of carrying out a test before making a purchase. By testing a solution, you’ll be in a much better position to judge its suitability and fair price. You’d be surprised how open contractors are to arranging a demonstration, even when it comes to technological solutions.
4- Use the financial levers available to you
Did you know that to encourage local SMEs and their innovations, there are a number of financial levers available to lighten your financial load? Depending on the size of your company and your location in the region, some programs can even pay up to 90% of the bill or $50,000. Enough to convince a hesitant management team that innovation is within reach. Startups in incubators like MT Lab often have access to such financial leverage through government programs.
5- Ask who you do business with
Trust is the basis of all business relationships. For a first collaboration, don’t hesitate to ask if the company can provide you with customer references so that you can call them. This will give you a good idea of the attitude and quality of your potential future supplier. With startups, you may be their first customer: you can always ask the entrepreneur for references from former bosses or employees. As companies are made up of individuals, the reputations that precede them will give you an idea of their reliability in delivering what you want. Taking the time to investigate who you’re doing business with will give you the assurance that acquiring the innovative solution will be trouble-free.
With these 5 tips in mind, you should be able to avoid breaking out in a cold sweat when you sign your next check for an innovation: because where risks are controlled, uncertainties are reduced.
Originally published on Tourisme Express on January 25, 2021
