BusinessDay

Innovation crucial to business sustainability, growth, profitability – experts

As the world continues to respond to the social-economic crisis brought about by the COVID-19 pandemic, climate change, and the recent Russia-Ukraine war, innovation has been identified as a crucial metrix in ensuring organisational success and business continuity.

This according to industry experts is crucial to the continuing success of any organisation, because of its capacity to enhance market position, increase sales and market share, reduce waste, and save cost as well as increase productivity, growth and profitability.

“As business environment changes, driven by technological and social shifts, innovation is central to ensuring the development and growth as well as sustainability of organisations. Directors, as business leaders must be futuristic in their outlook and come up with new and creative ideas for business to thrive in this highly competitive environment, Ije Jidenma, President/Chairman of Council, Institute of Directors Nigeria (IoD), said at the hybrid Fellows’ luncheon held on Thursday, 16 June in Lagos.

Themed ‘Innovation, Sustainability and the Future Role of Directors in the Nigerian and Global Economy,’ Jidenma said that directors must lead the charge and play major roles leveraging their understanding of the goals and motivations of the business, the cultures and nuances of their operating markets, as well as a vested interest in the sustainability of the organisations.

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“There is, therefore, no better time to address the matter of innovation than now as organisations all over the world are concerned about sustainability and survival amidst these issues. The impact of these global challenges is so devastating that only innovative businesses will survive and thrive,” she said.

According to her, becoming an innovative organisation is a continuous journey. She states further that it does not have to be groundbreaking; however it can involve simple, incremental enhancement in any area of an organisation. “It requires companies that have a long history and legacy to embrace shifts in culture, process and structure to become consistently creative”.

Ademola Aladekomo, founder, Chams Plc, and guest speaker at the IoD Fellows’ luncheon, said there is a need to diversify board compositions to reflect the different cultures, generation, and must also be inclusive.

According to him, lots of board members do not have the will power to tackle critical issues; hence board members must transform themselves and cannot afford to be indifferent in 2023. He also disclosed that the recent N803 billion valuation growth of Charms Plc, in two years was due to prioritising tech and being innovative.

Aladekomo, in speaking about innovation in the education sector said the Academic Staff Union of Universities (ASUU) has outlived its purpose and urged private sector players to take up the education sector by way of investment. “Cooperate Nigerians must take-up education,” he said.

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