Innovation is a new, better and more efficient way to meet an existing need. A new way of doing things, a new business model. It is what runs the world’s progress.
Innovation has had an enormous impact on economic activity for centuries, since the internal combustion engine, electrification and telephony paved their way as trasformative technologies.
However, innovation is often misunderstood.
In 1987, it was unimaginable for the Nobel-Prize-winning economist Robert Solow that the economic importance of services can outweigh the economic importance of manufacturing. In a New York Times article, Solow stated that the independent economic existence of digital services was a fantasy of the people who “tell war stories and go in for heavy breathing”. He was confident that the “real economy” was about physical products.¹
As the future showed, it did not take long for companies providing digital services to become one of the leading firms worldwide. Less than three decades after Solow’s article, Wall Street was all after “Big Tech”.
Today innovation is everywhere. It is a vital part of equities and a huge growth factor. Innovation opportunities emerge from unforeseen sources and are often misclassified due to the difficulty of being tied to a specific industry.
It is challenging for investors to understand the market potential and the long-term impact of disruptive innovations. Nowadays, they need more guidance than ever.
Aware of potential investment opportunities that will define the financial industry, it’s time to effectively communicate your findings and enlighten investors on the impact of these breakthroughs.
Here’s how to do it right.
Rise above the noise
We are living in times of rapid economic change that determine a compelling environment for investors.
According to Innosight’s report,² corporate longevity remains in long-term decline. In the late 1970s, the average tenure of companies in the S&P 500 was 30-35 years. It is forecast to shrink to 15-20 years, as early as this decade.
Meanwhile, a lot of capital today is invested in legacy industries like fossil fuels, for example. With the growing stranded asset risk, there is a significant amount of capital waiting to be redirected. Asset managers are constantly on the run to identify the winning innovative industries of today that deserve to benefit from investors’ money.
Due to the pandemic, there is a surge of innovation with disruptive forces concentrated in the so-called fast-growing “hybrid industries”. Digital healthcare, retailtainment, and e-mobility are just a few examples. Although innovation goes way beyond technology, tech is a key driver of change.
Companies that are thriving are digital. Real innovations exceed sector barriers, but what is often common between those winning innovations of today is the internet technology. IT is the backbone of progress in the 21st century, continually reshaping every aspect of the economy.
Deep Learning and AI, blockchain, electric vehicles, renewable energy, biotech and Fintech. All so completely different but united by technology. While technology’s use-cases surge, their nature isn’t that easy to comprehend. There are a lot of opportunities for investors, but they rarely knock. And often, they all look the same.
So how can investors catch the tailwind and ride it when the options aren’t that clear?
The answer is – with your help. As an expert, your main duty is to educate and engage. A strong culture of thought leadership is needed to rise above the noise and strengthen your marketing communication. Conversions will follow.
Guiding your prospects from insight to action
“Thought leadership” may be a buzzword, but when it comes to investment marketing, you may want to bookmark it in your dictionary. In a world full of noise and distraction, high-quality information served at the right place, at the right time is gold. It is what’s needed to make your organization stand out.
Many financial institutions are already working on that front and reaping the rewards of efficient and engaging marketing communication strategies. Those, ready to act today, will be best positioned to capitalize on the investors’ appetite for innovation-driven opportunities. To make the most out of your communication efforts, make sure to be authentic but also practical.
When introducing something new, understand and demonstrate its benefits, how this innovation relieves a real pain. Put yourself in your audience's shoes and identify the key questions in their heads. What do they need to know to make faster and better decisions? What is causing insecurities and preventing action? Find an unexploited niche relevant to your business and establish a presence through your expert insights.
Once you have your topics, prepare customer-tailored content to meet your audience needs. Promote your knowledge and skills to potential investors and engage them with your brand. Be regular, bold and educative. But most important, be moderate.