How Innovation Consulting Works

Innovation consulting is an activity associated with the process through which companies are supported in the development and implementation of new ideas, products, or business models. It is about finding creative solutions to challenges and helping companies act as pioneers and trendsetters in their industry, rather than just following developments. The primary goals to be achieved in the context of innovation consulting are:

The process of innovation consulting can be broken down into several key phases, which we roughly divide into five individual steps:

1. Analysis and Goal Definition
In the first phase, the aim is to understand the specific needs and challenges of the company. This includes:
Market and Competitor Research: Analyzing trends, competitors, and target groups is the starting point of any innovation consulting process.
SWOT Analysis: Identifying strengths, weaknesses, opportunities, and threats to the respective business model.
The goal of this first phase is to not only gain an overview of the current status but also to set clear innovation goals.

2. Idea Generation and Creativity Techniques
In this phase, the company's creative potential is unleashed. Consultants often use established creativity techniques such as:
Design Thinking
Brainstorming
Mind Mapping
Cross-industry Innovation

The goal of this phase is to develop innovative ideas that will propel the company forward and offer long-term competitive advantages.

3. Concept Development and Prototyping
Once promising ideas have been identified, the next step is concept development:
Prototyping: Developing initial prototypes helps to test the feasibility of the ideas; MVPs (Minimal Viable Products) offer a way to demonstrate the feasibility of the idea (Proof of Concept).
Refinement: The developed ideas and corresponding concepts need to be adjusted and refined based on the initial research results.
Feedback and Validation: In this phase, feedback from stakeholders and potential customers must be gathered.

4. Implementation and Execution
After proving the general feasibility, the next phase involves the final product or solution to be developed and brought to market:
Project Management: A crucial aspect of any activity is ensuring the timely execution of innovative measures. Project management is, therefore, extremely important in this phase.
Resource Management: Equally essential is the allocation of budget, personnel, and possibly other materials.
Market Launch: Once the hurdles have been overcome, the focus shifts to implementing the go-to-market strategy. This includes establishing distribution channels and strategically planning marketing campaigns.5. Success Control and Adjustment
After the market launch, it is important to monitor the performance of the innovation and continuously make adjustments in an iterative manner:
Monitoring: Collecting key data on usage and performance of the innovation, particularly online access and/or sales figures from third parties.
Optimization: Those who love their product continuously make adjustments to the product and the processes associated with it.

All parties involved in innovation consulting rely on a variety of methods and tools that help structure and significantly accelerate the innovation process. Some of the most well-known methods include:

Innovation consultants primarily act as external experts who not only provide creative ideas but also, depending on the need, serve as moderators, coaches, and project managers. The tasks of innovation consultants include the following activities:

Innovation consulting offers numerous benefits to all companies – including SMEs – that are under massive innovation pressure:

Innovation consulting is crucial for companies when it comes to staying competitive in a constantly changing market environment. By using creative methods, strategic consulting, and a well-structured innovation process, companies can not only improve their existing products and services but also develop entirely new, future-proof solutions. In short: By investing in innovation consulting, companies are investing in their entrepreneurial future and helping establish a new status quo that necessarily must again be questioned in the future – ad infinitum.