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Innovation: The Backbone of a Scale-up Strategy (1/2)
Innovation: The Backbone of a Scale-up Strategy (1/2)

January 24, 2022

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Scalability is a feature that describes a company's ability to perform well in the face of increasing workload. When it comes to scaling a firm, it implies having a reliable technique to boost its performance even when you are testing it with more stringent outcome criteria. In simple terms, scale-up is a stage of business development relevant to high-end technological markets, market access, staff numbers, and growing sales or services.

In the case of start-ups, scaling is a time-consuming process that requires great effort. Start-ups can scale when they validate their business models, overcome start-up challenges and are ready for exponential growth. Scaling requires quick action on stakeholder feedback, fearless creativity, and a constant awareness of core values. To scale up, a start-up must:

  1. Develop the right strategy

Setting the right strategy for scaling a business is fundamental in the scaling process. Techniques and tips by other successful entrepreneurs should be emulated while mentoring and guidance from experts become very useful.

 

  1. Invest in technology and innovation

While scaling a business, it is vital to streamline as many processes as possible. Investing in technology and the production of innovative ideas can help make the business process least labor-intensive. Focus on Customer Relationship Management (CRM) systems, cloud computing, Inventory Management Software, digital marketing tools, or ERP systems for transforming business processes. Investing in technology not only aids scaling a business but also enables better functioning of firms.

  1. Improve marketing 

For scaling a business, it is imperative to have a robust marketing plan in place. As a start-up matures, the reach too must increase. Along with direct marketing, ensure focus on social media marketing, content marketing, and influencer marketing. Understand customer needs and plan marketing strategies accordingly. Proper marketing can help improve reputation and build good relationships with customers.

 

Scaleup stratgy1

Innovation as a Growth Catalyst

Innovation is a key catalyst for creating an impactful start-up to scale up. Innovation can lead to higher productivity, meaning that the same input generates a greater output. Technology has created enormous commercial prospects and given entrepreneurs the ability to go global. People's perceptions of engaging with and purchasing from businesses have shifted because of the latest user-friendly apps. Innovation leads to the creation and application of new ideas and technologies that improve goods and services or increase the efficiency of their production.

Innovation in Product & Solutions

Covid-19 is likely to be remembered not only as a major health and economic disaster but also as a catalyst for digitalization and innovation.  The Indian start-up ecosystem fared well during and after the epidemic, mainly because of its

extraordinary innovation and perseverance in the face of adversity. The rapid adoption of digital technology by consumers and businesses functioned as a catalyst for this growth. 

Every vertical went through innovation to manage changing customer needs and market requirements. To start with Fintech, there has been rapid growth in payments, wealth management, and insurance. Interoperability enablers, alternative retail investment assets (e.g., gold), revenue-flow-based finance, and Internet-native lending are some of the emerging use-cases (e.g., SaaS financing).

Similarly, Healthcare start-ups and unicorns innovated themselves according to the market needs. Providing innovative solutions like telemedicine and online pharmacies helped them scale substantially even during struggling times as it also expanded the intended addressable market. Telemedicine and teleconsultation platforms have seen 2.2 times increase in revenue. Care providers' use of electronic health records has increased by 1.8 times. Digital tools for small-medium care providers, neurology and neurosciences, low-cost linked devices–screening, and low-cost devices for emergency care are some of the emerging use cases.


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