Innovation – Cost or Investment ?

In our industry, does the top management think of innovation as an investment?

The answer is No.

Many think of it as cost to the company.

Why should a factory spend money on innovations? The buyer has a design team, who’s job is to think of new ideas. They have product specialists who survey the market & bring in new product ideas regularly/ The factories also believe that providing a few swatches when the buyer asks or getting tech packs & executing them is enough to run the business.

In a broad sense everyone thinks innovation is represented by introducing or implementing new ideas or methods. This cannot be farther from the truth. It is the process that involves multiple activities to uncover new ways to do things. It is the process of translating an idea or invention into goods & services that create value for which a customer will pay.

A fabric which got converted to garment for the first time is an Innovation. Polyester convertefilm, filament and staple fibre is an innovation.

1. Product Innovation : a) Making a completely new product. B) Giving a new feature in an existing product. C) Enhancing the features of an existing product.

2. Process Innovation : Combination of methods, technologies and skills to produce & support a product.

3. Business Model Innovation : A holistic and organisation-wide transformation which is usually not an incremental change.

Product innovation is a result of new technology or new insights about customer needs. Of course process innovation has innumerable ways to show the customer an additional value in the product. Business model innovation can impact everything from product to cost to market. Online business & sales is an example here which changed the offline store sales model.

There are lots of product innovations happening in our apparel industry. Few are : Moisture Absorbent Fabrics, Recycled fibres, yarns and fabrics, Smart Clothing, Biodegradable garments, Leather alternatives from Apple Pectins, Nano textiles, fibres from organic material waste etc.

Bulk application route of Natural Dyes, Seamless and Stitchless garmenting, Zero waste production, less water technologies, digital printing, ozone finishing of denims are some of the Process innovations under process.

Today, the environment is fast faced where technology is advancing at a breakneck speed. For any business, it is important that it adapts to these changing trends in order to become competitive. Bigger opportunities are created by Innovations which are critical for the survival, economic growth and success of a company. Innovation will become a reality when leaders are open-minded & collaborative. Manufacturers/vendors should always strive to work on innovations based on the above 3 areas to keep themselves relevant in the market. It's only through innovation that they propose a uniqueness to the buyers.

Product innovation is often visible to the consumers, while a process innovation may only be seen and valued internally.  Process innovation has a large impact on cost of production & increases revenue, thus impacting the company itself first.

Innovation may not bring in returns immediately, but in the longer run it makes a large difference. The current trend of sustainable product innovations is one such example. What was once an innovation is today the customer’s demand. All the manufacturers who shifted to such products a few years back are making highly profitable returns today.

So, is innovation a cost or an investment?

I believe it's an investment… Do share your point of view on this subject!

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