Innovation as part of business strategy

Many organizations experience difficulties integrating innovation initiatives into their business strategies, despite the well-proven correlation between innovation and good business results.

We discussed with Ivan Alexandrov, founder and CEO of EBAG - an innovative service for quick and easy food and home products shopping - how innovation is intertwined in strategic business development.

"Even in the digital age, people will remain the most valuable resource in organizations" is a quote by your colleague Kiril Ludachki, Project Manager Logistics and Transport. In this context, how do you stimulate and develop innovative thinking in the EBAG teams?

Ivan Alexandrov: It is important to clarify what innovation means for us. The customer always understands unmistakably when a company puts the clients’ needs in focus. From this point of view, innovation for us is the creation of something new that improves the customer experience and facilitates a better lifestyle for our clients. That's why we encourage our employees to always consider how their ideas/projects helps our customers. And we have many examples of implemented ideas proposed directly by colleagues who are in daily contact with our clients.

Talking about internal processes, we consider innovation proposals for creating a product, process, or service that helps improve our efficiency, effectiveness, or competitive advantage. We are currently developing an internal innovation program by first asking our colleagues in a short survey what they think and what ideas they have. As next, we formed a working group and by piloting small projects we test the realization of the ideas on a  company level.

We believe that innovation proposals can come from any employee. We have open communication channels so ideas can be easily shared, evaluated and implemented by managers.

Speaking of the definition of innovation, what do you think would be innovation in your business field in 3 years?

Ivan Alexandrov: The speed of technology evolution and consumer habits change makes it difficult to predict. Exactly 3 years ago, when we set up our large logistics center to serve more customers, it was new for people to order their daily home purchases online. Currently, ordering fresh fruits and vegetables directly from the farm online while relaxing comfortably on the couch at home is already part of the normal daily life of many Bulgarian families.

With a 3-year horizon at EBAG, we will certainly use the power of technology and artificial intelligence to make our customers' lives easier and more fun, as well as to continue to care for nature. Imagine a daily routine where you don't have to take the time to go to dry cleaning, for example. Instead, our couriers, while handing over your purchases, accept your outerwear and later return it cleaned to you.

In our short-term plans, we have set several measures to increase the sustainability of our services (more electric cars, minimization of plastic packaging, collection, and processing of glass waste). Today we are pleased to recycle the paper bags that customers return to our couriers on their next delivery.

An important aspect for us is also the implementation of innovative projects throughout the whole chain - from farms in different parts of the country to the door of our customers.

Your services and the plans you describe for their development distinguish you as pioneers on the Bulgarian market. What is the formula for successful planning in situations where you are doing a lot of things for the first time and paving the way for completely new services, previously unknown to your customers?

Ivan Alexandrov: A key factor for our successful planning is a clear long-term vision - what we want to achieve for our customers, for the development of the business environment, and for the society in which we live.

Another key element is also the balance between planning and flexibility. Recent months have shown that the external environment can change dramatically and in unexpected directions. That's why we strive to be adaptable in our every day work- from building flexible logistics that allow us to quickly accelerate processes, to motivating our front-line employees to work in a smart and synchronized way, so they could communicate customer expectations to the management and suggest ways to meet those.

In short - Planning is a key process for every business, including ours. We know where we want to go and working hard for it, but we are flexible in adapting our itinerary, i.e. the implementation of operational objectives. This is our strength - we are always ready to review and adapt our plans to achieve the best for our customers.

You mentioned the developments from recent months as an example of a situation of high unpredictability. How do you manage to synchronize business goals with innovative initiatives in such unpredictable times?

Ivan Alexandrov: High unpredictability on the one hand is a challenge for business, on the other hand, it allows us to quickly test different concepts and probe what customers like and what will be accepted or rejected by the market. We are not afraid to experiment. We learn from our mistakes and we’re improving constantly. We try to always be a few steps ahead by analyzing different opportunities for the development of a particular situation.

And finally, what innovations do you think leaders in the world should focus on after the pandemic?

Ivan Alexandrov: I think one of the biggest challenges in the world after the pandemic, as we know it now, will be how to live again in a harmonious world where technology helps and supports people without dominating their lives. From this point of view, innovative projects directed towards providing services that meet the highly individual needs of each client will be beneficial for everyone. From my perspective, business leaders have the difficult task of creating valuable innovative projects that provide opportunities for inclusion and professional realization of people with different education, age, and skills. Through such initiatives, we can all contribute to sustainable growth after the pandemic.

EBAG.bg is an innovative service for quick and easy daily shopping of food and home products. The company's mission is to provide quality and diverse products with fast, same day delivery and has a strong emphasis on the supply of Bulgarian farm, dairy products, boutique goods, and products that are not offered in supermarkets but specialty stores