What does innovation in business mean to you?
CT: For me, innovation in business today is all about rethinking how we approach challenges and opportunities and coming up with new ways of working; new ways that often involve leveraging some of the amazing technologies available to us. It's not just about creating new products or services, but instead focusses on transforming how we operate, communicate, and deliver value to customers. These changes can range from exploiting tools like AI and data analytics to enhance decision-making, to adopting sustainable practices that not only benefit the environment but also drive economic growth. It's not just about technology. It's also about pushing boundaries in how we think, collaborate, and execute ideas that challenge the status quo. In a fast-paced business, innovation is about moving quickly and adapting to changing needs through novel solutions.
Do you think a company can expand or sustain its market position without engaging in innovation?
JW: In short, I believe not. Innovation plays a crucial role in adapting and staying competitive in today's ever changing market conditions. As Charlie rightly pointed out, it extends beyond mere product development; contemporary innovation encompasses refining processes and enhancing services. It should not be just a one-time occurrence but an ongoing journey. A company that fails to innovate may find itself struggling to differentiate, respond to industry shifts or capture new market opportunities. In my experience, businesses that foster a culture of continuous improvement and are leveraging R&D tax credits to support their innovation projects, greatly increase their chances of achieving long-term growth.
Can you give an example of how technology is shaping business innovation at Celsio?
CT: Absolutely. At Celsio, we've integrated process automation into our operations. We're an SME, so leveraging software and automation tools allow us to operate at a scale we simply could not do manually. Our project delivery approach accelerates projects, reduces costs for us and the companies we provide services to, and allows our customers to engage with us when it works for them. By leveraging this technology, we've been able to not only improve our efficiency but also find the space and time to anticipate and meet customer needs more effectively, staying ahead in a competitive market. Even when approached from a technology point of view, innovation starts with mindset. We encourage and enable teams to be curious, to question the norm, and to not fear failure. We want companies to invest in developing their own understanding and competency in innovation as that fosters creative thinking and delivers real impact. We look for innovation to become part of the organisational DNA – how they operate on a daily basis.
How is innovative technology shaping the broader market landscape?
JW: The technology and communications sector leads in the number of R&D tax credit claims. While it's our second-largest market segment, various other industries are directing their investment towards technology enhancements. This trend of digital transformation has brought technology into new areas of business that fundamentally alter the way businesses operate and compete. It is increasing efficiencies, connectivity, and providing novel approaches to addressing consumer needs, preferences and experiences. The pandemic and the economic challenges it created has undeniably accelerated digital transformation. We are also seeing automation playing a prominent role in the market, being intertwined in manufacturing lines, robotics, back office processes and projects involving SMART or IoT devices. Additionally, there is a significant focus on security enhancements, particularly within the FinTech (Financial Technology) sector. Digital transformation and the introduction of AI are becoming increasingly prevalent.
What are the biggest challenges businesses face in innovation?
CT: The biggest challenge is often 'the way things have always been done around here'. Moving the company away from a deeply embedded traditional, often risk-averse mindset to one that embraces experimentation, innovation, and failure as part of business as usual. Additionally, staying abreast of rapidly changing technologies and integrating them into existing systems can be daunting for many businesses. It's human nature to resist change and to defer to the status quo, so encouraging your team internally to embrace new ideas can be difficult. There are simple, obvious ways to overcome this resistance, but these only tend to be obvious when they're pointed out and we have the benefit of hindsight.
How can the R&D tax credit incentive aid and encourage innovation?
JW: Over the past two decades, R&D tax credits have served as a cornerstone in supporting UK innovation. The incentive empowers businesses to mitigate some of the key expenses associated with R&D projects, including staff salaries, subcontractors, consumable waste and software. Encompassing both successful and unsuccessful innovations, the program effectively reduces risks and increases financial flexibility for innovating businesses. R&D tax credits play an active part in helping both established and early-stage companies push both their technological and business growth further.
