Dec 2016 3 Minutes

Innovation – Don’t Accept The Status Quo

 The government is encouraging businesses to look very closely at innovation strategies within business operations.

One of the key concepts for successful innovation is for all team members not to accept the status quo.  Just because something is being done a particular way for a number of years doesn’t mean that it’s the correct way.  Could the process be changed?

In many cases, small improvements are the best.  Team members should be encouraged, on a daily basis, to stand back and think about what’s going on in their sphere of influence.  This could take about 5 minutes, to rationally think about the work process and note down the changes that could be made to improve business operations.

Every innovation starts with an idea, however it then needs to be developed, nurtured and, if it’s any good, grow the idea to a stage where it can be trialled.  If, at any stage, there’s a problem in the process, there’s no use proceeding with it.  Think about something else.  If it’s good, then it needs to be implemented.  This will require documentations, perhaps require patent applications and then the product/service will be ready for commercialisation.

All team members should be encouraged to be thinking about innovation and to accept innovation as part of their job.  They need to think of ways and means of doing the job better.

The government is going to encourage innovation by making it easier for companies to raise capital.

The legislation for the crowd funded equity raising and the amendments to the Corporation’s Code have passed the House of Representatives and are currently in the Senate.  The government is hopeful that this legislation will be operational by 1st July 2016.  The government is yet to introduce legislation for the second new company which, at this stage, is being called “innovation company”.  Hopefully, that legislation will be introduced to the Parliament in the near future.

Having the ability to raise capital is a very important part of the problem but is not the complete picture.  Businesses need to be proactive in the nurturing of a culture of encouraging team members to be proactive in the identification of improvements that could be made within the business.

One of the ways that you can obtain some government assistance for this is to claim Research and Development expenditure as a taxation rebate.  You need to be a company to claim the R&D rebate.  If you’re contemplating undertaking R&D projects that will cost in excess of $20,000 per annum (including labour costs and labour on costs), it could be beneficial to incorporate a company.

If you would like to have a discussion with us relative to strategies for establishing systems within your business, to enhance your innovative processes and to claim an R&D tax rebate, please don’t hesitate to contact us.