Development spearheads growth. There is no potential for expansion or future for a business that does not consistently develop products, compete on the market, and try to gain an advantage over its competitors. A report by the OECD describes that the benefits from innovation are usually indirect and derive from the impact that have on user industries, but also notes that innovative firms are “less susceptible to cyclical pressures in comparison to non-innovative firms” and that innovation tends to arise out of competitive environments.
Growing significantly bigger is often painful for companies because of the weight of bureaucratic inefficiency coupled with stagnation in products. SuccessFactors offers a way to cut through these productivity losses and keep your business focused and organized through the streamlining effects of its extensive HR suite.
The Relationship Between Innovation, Market Forces, and Development
Creativity is an increasingly valued trait that companies seek in their prospective employees. That’s because creativity is usually linked with the ability to come up with elegant and new solutions to a market problem. There is enormous transformative potential behind people and groups that innovate, so much so that a survey of CEOs found innovation as the most important factor behind a company’s growth.
FastCompany reveals that innovation is often the impetus behind a bigger company’s intent to merge with smaller companies. Mergers are explained as a way for companies like P&G to hedge their bets and diversify the outlets and industries in which they have a potential to innovate in. P&G’s investments into its market-leading brands like Gillette, Venus, Oral B, and Duracell are part of this strategy to drive innovation and profitability in turn.
We see this strategy across a number of social media platforms as well, with the best example being Facebook. Something that Facebook is incredibly keen on is snapping up a number of small to medium sized social platforms usually appealing to a certain niche. Instagram, WhatsApp, and Oculus VR are examples of Facebook’s own multibillion dollar version of this market strategy that takes advantage of innovation through mergers.
Innovation plays an important market role for businesses by enhancing their competitive advantage and reducing impact of market fluctuations on sales. It achieves this protective role by enhancing client side experiences for the business, which drives growth and confidence in the company over time. Therefore, improving the development team that’s responsible for the innovative products and services your business offers mitigates risk and enhances profitability.
Structuring Reliable Innovation Over Time
With the such an emphasis on innovation, it’s no surprise that investments into a company’s HR and employment infrastructure become critical due to their relationship to creating a successful development team. Naturally, infrastructures that are organized and have a wider oversight and regulatory system also have the best performance when it comes to reducing organizational inefficiency and market stagnation.
SuccessFactors’ HCM suite contains a series of modules that help guide and structure your business’ entire approach to human resources. On the whole, the digital integration, accessibility, and transparency afforded by SuccessFactors allows businesses to reduce their employee turnover rates by 32%.
The suite is meant to provide an interconnected system of modules that gives you the benefits of an system that captures the big picture from the perspective of an overview while also allowing you to have the resolution you would expect from more specialized reporting softwares. The unity and availability of SuccessFactors as an easily integratable suite is one of its most advantageous features.
Reap The Benefits of M&As Without Suffering The Disadvantages
Your development team will gain from the HR boost resulting from a successful merger or acquisition. The general intent of mergers and acquisitions is to engender growth and diversity for both businesses. Recently, the business of mergers and acquisitions (M&A) has skyrocketed in value to a figure of $4.7 trillion in 2015. It heralds a new wave of popularity for M&As, and shows that many companies are disposed to combine for the purpose of becoming more competitive.
However, looking at the increasing trend M&As in the recent past, you’ll also find a pattern in the relative success and failure of these decisions. Research on the issue reveals that “the main reason for M&A failure is at the process through which the deal is perceived and carried out” and that the failure rate of mergers actually goes up as the deal closes. This indicates that organizational structuring, management, and visionary fit are all important factors that need to be heavily controlled and neatly organized to ensure success. The use of contextual measures such as surveys will allow both businesses to drive down risk through research.
Again, the centralized payroll processing and accounting integration that SuccessFactors offers is a key benefit that can produce up to a 26% reduction in HR transaction costs simply because of its single-system implementation. Handling M&As correctly is a vital step towards ensuring that your company remains relevant in a rapidly paced market, and streamlining these organizational processes are essential to a healthy and efficient development team.