Alar Kolk: Innovation can make a company grow

Alar Kolk, President of the European Innovation Academy, said at the Innovation Lab 2015 event that the main objective for innovation is to make a company grow. Innovation may include taking traditional trade online or the creation of new services for existing products or services.

At the Innovation Lab event, Kolk presented various successful examples of innovative approaches that have benefited companies. “Innovation may include changing customer behaviour: for example, Lego changed the users of its products from simple builders into superheroes, and their profit is constantly growing as new heroes are added,” Kolk elaborated.

Several services in the world are built on top of other services. As one of the best examples of this, Kolk cited Ryanair, which provides accommodation and car rental in addition to cheap flights. “You can change your service or product to be more unique, and many a product can become better with the addition of a service,” Kolk conveyed his encouragement.

It is important to consider what customers get out of the use of your company’s service / product, how to make them more loyal than they have been, and how to address customers’ typical situations so that they are satisfied. “Uber has successfully begun to conquer the world by solving a problem with two clicks: how to find a taxi in a strange city. Fans of Harley-Davidson make up a large brand-loyal community which is being constantly maintained. For customers, it is important to feel important,” Kolk cited some examples.
Charging customers can be innovative as well. Kolk noted charging customers differently than before as the reason for the financial success of Spotify. “In the iTunes system, every track has to be paid for separately, which people do not like very much. Spotify, on the other hand, offers a service subject to a monthly fee, which suits people better. Spotify’s win is Apple’s loss,” Kolk explained.

In your innovation plans, it definitely pays to stay up to date with trends. “3D printing, data-based products / services, wearable devices as new advertising channels – all these are still modestly visible at the moment but becoming increasingly important,” Kolk was convinced.
Innovation may also include relocating your business to an online shop or, vice versa, switching from an online shop to catalogue sales. “Based on your company, an ‘innovation engine’ suitable specifically for this company should be chosen,” Kolk recommended.
Alar Kolk (Estonia) is a sought-after lecturer on innovation and President of the European Innovation Academy, having previously served as Vice-Rector of the Tallinn University of Technology and as a member of the management at Enterprise Estonia (EAS).

The Innovation Lab 2015 event, organised by SEB on 3 March, in Tallinn, featured several of Europe’s most sought-after and experienced business leaders, innovators and entrepreneurship consultants.

For more information:

Evelin Allas
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SEB
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E-mail evelin.allas@seb.ee
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