In an increasingly disruptive world, innovation is no longer optional, it’s a necessity for businesses aiming to survive and thrive. Innovation isn’t just about inventing completely new products; it’s also about improving processes, enhancing customer experiences and finding more effective ways to operate. Companies that prioritise innovation position themselves to grow revenue, outperform competitors and navigate market disruptions with agility. They consistently transform uncertainty into opportunity and new value.
Innovation priorities and impact
Globally, innovation is a top agenda item for business leaders. Research shows that nearly 8 in 10 companies place innovation among their highest priorities, reflecting a growing understanding of its strategic value. Leaders are investing in emerging technologies such as artificial intelligence, automation and digital transformation to unlock new opportunities. These investments translate into measurable business outcomes. Based on research, innovating companies tend to see higher revenue growth, stronger customer loyalty and more resilient market share.
As global markets evolve, innovation also fosters adaptability. Businesses able to anticipate, quickly test, learn from and pivot their offerings can respond more effectively to changing consumer demands and economic conditions, effectively reducing the risks associated with dynamic market forces, moving from assumptions to new knowledge and strategically impactful innovation.
South Africa’s innovation journey
The Business Innovation Survey (BIS) conducted by the Human Sciences Research Council indicate that around 62% of South African businesses engaged in some form of innovation between 2019 and 2021. This includes activities such as introducing new or improved products, implementing novel processes and adopting technology solutions. Given the growing support through government funding, start-up initiatives and digital transformation efforts, it is anticipated that the new survey, launching in June 2025 will demonstrate increased figures, reflecting a strengthening innovation ecosystem in the country.
While many South African companies focus on incremental improvements, these step-by-step innovations can still deliver significant efficiency gains and competitive advantages locally and abroad. Skilled employees, ongoing training and external partnerships have been identified as key enablers of innovation in the country.
Nevertheless, barriers remain, including limited access to finance, market constraints and skills shortages. Addressing these challenges through supportive policies, industry collaboration and increased R&D investment is critical to unlocking South Africa’s innovation potential.
Benefits for efficiency and talent
Across both developed and developing economies, innovation is helping businesses become more efficient. By adopting new technologies and optimising processes, companies are reducing operational costs and improving productivity – crucial factors in maintaining profitability and competitiveness.
Moreover, a culture of innovation attracts talent. Employees increasingly seek workplaces where creativity and continuous learning are encouraged. Businesses viewed as innovative tend to retain high-performing staff and energise teams, which further fuels sustainable success.
Building support for innovation
Encouraging innovation requires deliberate effort and investment. Governments and organisations globally, including in South Africa, are launching programmes to bolster innovation ecosystems by providing funding, mentorship and collaboration platforms, especially targeting start-ups and technology sectors.
Successful innovation involves more than ideas; it demands turning concepts into tangible solutions that address real-world problems. Whether improving existing offerings or exploring breakthrough technologies, effectively managed innovation can drive sustainable growth, improve social outcomes and build resilience against economic shocks.
Why innovate now
If innovation isn’t yet a core part of your strategy, there’s no better time to start than now. Innovation helps businesses stay relevant, build competitive moats and future-proof against uncertainties. By fostering a mindset open to experimentation and change, you can unlock opportunities that lead to lasting success in a rapidly shifting landscape.