Lego shows innovation is a necessity to survive and thrive

Practically every industry in the business world can live and die off of the innovations that are created. If a business is capable of creating new and unique ideas then that business will end up thriving. Any business that is not willing to change and will not adjust itself based on the new trends that have been introduced in today’s society will certainly fail.

Being innovative is one of the most important yet demanding business strategies that people can engage in today. Innovation is required to allow new concepts to continue to bring in more people.

The success of the Lego toy group, a group that was once in danger of going bankrupt in the early 2000s, shows that a business can go far by choosing unique ideas. These unique points have allowed the business to create a number of fine options that have particularly given businesses a number of benefits and features that allow it to be more successful.

Using Crowdsourcing to aid RND

Crowdsourcing is a very unique action that people can engage in when they are trying to make profits. Crowdsourcing is an action where ideas or solutions are gathered by people from outside the business sector. That is, the general public has the full right to come up with ideas to improve whatever it is a business wants to do.

Lego has used this idea to save money on research and development as it is outsourcing the process to the general public. As a result, instead of spending money on trying to create ideas, the public is allowed to submit its ideas online and through social media. It not only encourages Lego to find new ideas for products but also allow fans of its products to be more creative. It is as though they are allowing those people to be entrepreneurs of sorts.

Extending To the Digital Realm

The Gen Y and Z is glued to devices and loves app, and as result much of Lego’s new target audience too has gravitated towards the use of electronic devices for their entertainment abandoning traditional toys in favor of tablet, smartphones and various types of online activities. Therefore, Lego chose to get into that market but decided to make a twist on this strategy. Lego chose to incorporate its physical toys into the field.

Using digital products has become a key to Lego’s success as it allows people to get accounts online for all sorts of Lego features. This includes the option to link one’s physical creations online to different social media sharing programs. People are allowed to link to their social media accounts and share their products while also using different applications and programs to allow people to track their process and to interact with what they build in a virtual environment.

The development of programmable robots in the DIY Mindstorms series has especially been worthwhile. This is an innovative series where a user can build a robot and control it through Bluetooth-connected controls or through downloadable programs. This allows users to create items that link the physical and virtual worlds together.

The Creation of Branded Stores

Lego did not abandon the brick and mortar strategy, on the contrary Lego embraced it. Branded stores have particularly helped Lego over the years to allow products to become more popular and interesting for all people to explore. Lego has decided over the years that by sticking with its own sales process instead of having to stick with shipping its products off to third parties for sale, the company can save money on getting more items ready.

A positive aspect of these branded stores is that they will provide people with access to all sorts of Lego products in just about every line that Lego has to offer. In addition, Lego has been able to offer services in these stores where people can not only see real models of different products but also buy individual pieces in certain barrels. These pieces are separated by the types that they are made with and the colors that they come with. This allows people to have more control over the creativity process.

I think Lego’s last decade of business strategy should be mandatory read for anyone interested in digital transformation or business strategy topics.