In today’s rapidly evolving global economy, businesses face pressure to stay competitive and relevant. This challenge is compounded by unreliable infrastructure, fluctuating economic conditions, and unpredictable government policies for Nigerian companies. Businesses prioritising creative problem solving, embracing new technologies, and continuously adapting their strategies are better equipped to succeed.
According to research from Harvard Business Review, businesses that prioritise innovation consistently outperform their peers, especially in volatile markets like Nigeria. These businesses can identify new opportunities, streamline operations, and better serve their consumers.
Across Nigeria, businesses harness innovation to overcome challenges, whether leveraging digital platforms, transforming traditional business models, or finding new ways to address local issues. As global competition increases and market conditions change, Nigerian businesses that embrace innovation will be better positioned to seize opportunities, mitigate risks, and drive long-term success.
Strategies for fostering innovation in Nigerian businesses
Leverage Technology:
Technology is at the heart of innovation, allowing businesses to streamline operations, reduce costs, and reach a broader customer base. Technology can significantly improve business operations, whether it’s using cloud-based platforms, data analytics, or digital marketing tools. Businesses should invest in affordable technology solutions such as cloud-based accounting, digital marketing, and e-commerce platforms, among others, to drive innovation that suits their needs.
Cultivate an innovative culture
Nigerian businesses that cultivate an environment where employees are encouraged to think creatively and experiment with new ideas often stay ahead of the competition. Creating an internal innovation hub or holding regular brainstorming sessions can help spark new ways of thinking. Flutterwave, a prominent payments technology firm, fosters an innovative culture by allowing employees to experiment with new ideas and iterate on solutions.
Invest in Research and Development (R&D):
Investing in R&D is critical to staying ahead in innovation. Businesses that consistently explore new ideas test new products, refine processes, respond to market demands, and launch new offerings swiftly. Nigerian companies can collaborate with academic institutions that offer R&D support, which can provide valuable research insights.
Read also: Failed start-ups and the Nigerian business environment
Maintain adaptability and agility:
The ability to pivot quickly when market conditions change is essential. Nigerian businesses must remain agile in disruptions, whether new government regulations, economic downturns, or changing consumer habits. For example, when the Lagos State government banned motorcycles (Okadas) in 2020, Gokada, a ride-hailing service focused on motorcycles, quickly pivoted to a logistics and delivery business, tapping into the fast-growing e-commerce sector and ensuring the company’s survival while maintaining its relevance.
Focus on customer-centric innovation:
Continuously engage with customers to understand their evolving needs and preferences. By staying attuned to customer feedback and integrating it into product development, businesses can create solutions that resonate and differentiate them from competitors. Jumia is an e-commerce platform that leverages customer feedback to tailor its product offerings and user experience. Jumia innovated by introducing payment systems like JumiaPay.
Foster agility in operations:
Create a business model that is adaptable to market changes. This might involve developing shorter innovation cycles, adopting agile methodologies, and keeping a close eye on market shifts, allowing businesses to pivot as necessary. An example is MTN Nigeria, which expanded its services beyond telecommunications by offering mobile financial services like MTN MoMo, adapting to the demand for digital financial solutions and enhancing customer engagement and business growth.
Leverage data for strategic decisions:
By implementing effective data collection and analysis practices, businesses can make informed decisions about market trends, consumer behaviour, and operational efficiencies, helping them remain competitive and innovative.
Enhance Efficiency and Profitability
Innovation is about streamlining internal processes, reducing costs and inefficiencies, and improving profitability. LifeBank is a health tech company that uses data and logistics to deliver essential medical supplies, like blood and oxygen, to hospitals, optimising supply chains and improving patient care.
In conclusion, Nigerian businesses must embrace a culture of continuous innovation, learning, and reinvention. Embracing new business models or product concepts allows companies to pivot effectively and sustain competitiveness. Successful companies invest in their workforce by providing professional development opportunities that encourage creative thinking, boost morale, and foster the innovation necessary for ongoing progress.
Finally, the achievements of Nigerian companies like MTN, Jumia, Gokada, Flutterwave, and LifeBank prove the importance of innovation across industries and business sizes. Nigerian businesses can sustain long-term growth through relentless innovation and adaptability and stand out in the global marketplace.
Ayobami Ishola, FCCA, is a finance expert with over 10 years of experience partnering with organisations to deliver strategic insights that drive growth. Her expertise spans accounting, audit, finance, and business strategy, strongly emphasising optimising business outcomes.
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