For executives running a business, regardless of its size or type, the need to innovate has been touted as the route to growth. For mid-market companies, there is more pressure than ever. Not only do they compete with larger corporations, but now there is a constant influx of startups and entrepreneurs pushing to do what they do, but better.
So does that mean companies need to develop a new product to be competitive?
Ron Totaro, chair of CEO Connection’s Innovation Committee and current interim CEO, advisor and board member for fintech and SaaS-enabled private equity portfolio companies, says that what mid-market companies need to remember is that “innovation” does not have to mean creating the next big thing.
“There is a misconception that innovation means creating new products,” says Totaro. “The reality is that innovation can manifest itself in many ways. Innovation could be improving customer experience: something as simple as switching from paper invoicing to electronic invoicing. Now clients get their invoices faster, they are easier to file, and perhaps they include more information, such as how their money is being spent. If you improve relationships and retention rates through new processes, you are innovating.”
Even making changes your customers can’t see can be the difference. Streamlining your back office and customer care, and leveraging technology through e-commerce capabilities can make your company stand out to your existing customers and give you the bandwidth to reach an even wider prospect base.
If new products are the place you want to innovate, Totaro says the market is ripe for that as well. But, “You don’t have to create everything within your four walls.”
“So much can be purchased or partnered with others to build,” he says. “License technologies, creating interesting partnerships with two-way value.”
As an example of those strategies, Totaro recommends CEO Connection’s Angel Investor Network for mid-market companies looking for an opportunity to invest in innovation. In partnership with incubators including Wharton/Penn Ventures and Invest In Canada, the Network leverages the combined resources of the mid-market. It provides mid-market companies with vetted, quality deal-flow opportunities for consideration throughout the year. The entrepreneurs and startups are sourced in part through alliance partners with some of the world’s top universities.
“I don’t know of any other entity that has a forum like the Angel Investor Network, created specifically for the mid-market,” says Totaro. “Having that kind of access is invaluable, regardless of industry. Startups that are trying to be disruptive in cloud deployment, customer service, digital marketing… you get to see creative ways that new problems are being solved.”
Members of the Angel Investor Network automatically gain access to CEOC’s Innovation Committee. The Innovation Committee meets once a quarter to collaborate, sharing insights and ideas across core innovation topics. Members are also invited to the Business Plan Showcase, held in conjunction with the annual Mid-Market Convention, where they can meet with vetted investors and review investment opportunities.
As staying ahead of the curve becomes an ever-present focus of corporate growth and profit, this access is even more valuable.
“Seeing companies that are are expressing new ways to go about business [through the Angel Investor Network] helps you think more broadly about how your business runs,” says Totaro. “Every company needs to continually reinvent itself, and those that don’t are going to fall behind.”
For more information on CEO Connection’s Angel Investor Network, email angelnetwork@ceoconnection.com