Why SMEs need to systematise innovation
Innovation in mid-sized companies often fails because of one fundamental problem: the lack of a system. While large corporations maintain their own R&D departments with hundreds of staff, SMEs have to organise innovation as an integral part of day-to-day business.
The 35-field model at a glance
Our 35-field model structures innovation in three clusters: margin-increasing (12 fields), revenue-accelerating (12 fields) and cash-flow-relieving (11 fields). Each field has a clearly defined value contribution and a proven implementation methodology.
Cluster 1 — margin-increasing
This cluster includes fields such as:
- Process automation
- Lean AI integration
- Quality predictors
- Energy efficiency optimisation
- Supply chain resilience
The average margin contribution per implemented field is 0.8–1.5 percentage points.
Cluster 2 — revenue-accelerating
Example fields:
- Product innovation
- Service expansion
- Market expansion
- Digital channels
- Customer loyalty programmes
- Cross-selling
- Pricing optimisation
Here we measure the contribution in absolute revenue growth — typically €1–3M per field in the first year.
Cluster 3 — cash-flow-relieving
This cluster covers:
- Working capital optimisation
- Receivables management
- Inventory optimisation
- Payment terms
- Internal financing capacity
These fields often deliver results fastest — on average, 90 days to the first measurable impact.
Prioritisation instead of a scattergun approach
The key to success: don't tackle all 35 fields at once. Instead, use the IKM score to prioritise the 8–12 fields with the greatest leverage. Our Innovation Tracker in the client portal makes progress across all active fields transparent and manageable.