Progress and innovation will advance with you or without you. Startups without anything to lose will pop up with an idea that will cause you more aggravation than tough economic times. If you stop innovating you've lost half the battle. So, bottom line: Keep innovating. Start by thinking of ways to use the "slowdown" to your advantage.
Extend. The economic downturn is a result of the lack of innovation and self-sufficiency that used to be hallmarks of America's global influence.
America lost innovation when it became the most self-centered and consuming country on planet earth.
If we can get past being hoggish consumers of the plannet and start innovating again, we might have a chance of regaining some credibility in the world marketplace. Until then - we're screwed. So invest, invest, invest... but invest wisely.
My two cents.
Today, status quo business models are being smashed. Why? Technology is part of the reason, but it's really peoples' comfort with this technology and their lack of tolerance for centralized power and control. Just look at the music and publishing business. The Internet eliminates hierarchy and the middle man. The big producers are nervous because they can't figure out a model for prosperity on the Web...the company that reinvents a business model in their sector, will win BIG!
Get some 20-somethings in a room and let them brainstorm...after all, they’re the ones in touch with your market.
Time to turn up the heat on innovation. Get started today.
As the fear of recession increases and cost cutting continues, the role of innovation will undoubtedly come under greater scrutiny in board rooms and budget reviews everywhere. Understandably some will question the logic of additional expenditures in a time of corporate belt-tightening – posing the challenge “can we afford to innovative?” Perhaps the more critical question, when taking the broad perspective, is can your organization truly afford not to innovate?
Innovation – and all it means to an organization: sustainable growth, category leadership, rising above commodity status – is fundamental to success in any business climate. It must, however, be flexible enough to adapt the changing needs of the marketplace and the consumer.
Organizations should view their innovation efforts as part of a long-term business strategy, and never lose sight of the primary reason that an organization commits to innovation – regardless of the economy: to differentiate against the competition, add value throughout the supply chain, create consumer/end-user delight and drive incremental sales. Why would a company stop the very thing that will help them breakthrough and distinguish itself successfully in the marketplace?
Eliminating or drastically reducing your innovation budget during tough economic times puts the future sales and the value of a company at risk. Rather, smart innovators think “differently” about their innovation process to monitor costs yet maximize the output. Those business leaders will find a way to thrive – not merely survive – through the rough times.
"Safe" could be defined a couple of different ways in that question.
"Safe" should encompass of course what's best for the long term. Innovation should be promoted as much as ever. There's a risk involved with each new endeavor, and the possible scenarios are innumerable and so can't be laid out for easy solutions in an online forum survey.
Focusing on some kind of services for the home owner may not be wise in this kind of environment, but neither should it be dismissed on its face. Maybe the new "thing" would actually fit a cautious homeowner's needs.
You need to fight like hell to save a critical mass of seed corn (innovation / R&D) no matter how hungry you are for those resources. Once it's gone a cold, dark future is a certainity. It's just a matter of how long it take for the lights to flicker out.
An innovative risk is always worth taking. Even if the creative risk does not bring in profit, lessons learned are invaluable and modifications are also possible. Also, innovation doesn't always have to be risky. The monetary and educational positives outweigh the possible monetary losses and innovation should take place no matter economic situation.
Innovation is something to be defined as an positive approach towards the demand or say NEED.Respectively,with context to an economic downturn,it becomes more necessary to boost up the innovative activities within and outside the enterprise so as to cope up with the effects of the economic downfall on the economy and ownself as a whole.The process should be executed with utmost care keeping in mind that there should not be any negative effect of the process on the company itself..however..risk is an itegral part of the Business.
It depends on the innovations. I believe true innovative activity is a fluid process that rolls with the economic punches. In the event of an economic downturn you don't curb your innovations you ensure that the innovations are steered in the right direction. I.E. making your company more sustainable, finding solutions that reduce cost on your end, introducing products or services to the general population that they need DURING an economic downturn. A perfect example, rising oil prices are making us look at alternatives to oil. Rising food prices tell us that bio fuel made from grains is probably not the right choice. The company, group, or individual that comes up with a viable alternative can help solve two global issues. Innovations is huge during economic downturns, it just depends on what you're direction.
Extend. Carefully monitor reserves, Encourage the people in touch with the intended market to make the "Baby steps" of creating a product your consumers will find irresistable.
During times of recession, the market is usually awash with talent that can be hand at lower cost than before. It is during these times that smarter, well run companies will collect these great people and continue to expand their solutions. Also during these times companies have an opportunity to build an emotional brand with their target market since most companies are leaving them stranded with their problems unsolved.
In truth recession provides grand expansion opportunities for smart, well run companies. Take advantage.
An economic downturn is a macro-economic phenomenon. Rarely is success or failure in a small or medium sized business determined by such "big picture" issues. By contrast, while your business plan, vision and strategy should have some idea of where you're going; your business activities should be focused on valid tactical goals and achievements. Unless your gut tells you that an economic downturn will radically change the way your company is building its "forest," don't change the way you're dealing with the "trees and the bark." In short: don't get distracted by macro-economic trends that don't immediately impact your business - focus on developing the business as you would have before awareness/acknowledgement of the trend.
It may depend on the nature of undertaking , nevertheless in almost all cases of a down turn the no 1 remedy is to synergize. This is a time to bring out the best of your self, innovations in sales and marketing visavis innovations in cost cutbacks are the keys to turn around a business headed for the 4 sale column. Turning around a failing business requires overwhelming innovation, it is that idea that saves the enterprise , and the reason it usually takes a new brain is because it brings new innovation. INNOVATION IS EMPOWERMENT IN BUSINESS.
Innovation is essentially change. A firm could change products and services, processes, business models, paradigms and positioning of their services and brands. My take is that firms need more innovation during downturns to stay competitive and to meet their performance targets. The form and nature of the innovation drives would most probably vary from one economic cycle to the next, but I think most firms would lean towards efficiency and productivity related innovation drives during economic down-turns.
Kheepe Moremi
If a company finds that it is beginning to suffer because of a macro-economic downturn, and there is no real problem with its business plan or product, it should focus its innovative efforts on improving the efficiency of its operations. Employees could be involved in this to a significant degree by encouraging them to identify the small things that add up. For instance, a secretary might note that your company could use recycled paper and ink, that the ink setting on most print jobs could be reduced to 'fast draft' or 'fast normal' and that the company could buy bigger computer monitors so that employees felt comfortable reading documents on-screen, rather than printing them off. These are very minor examples, but when these savings are combined, you may well find that a substantial amount of money is saved. These savings could even be directed towards bonuses that encourage employees to identify further savings. This method of innovation is safe and beneficial during economic downturn.
After the aforementioned innovations have been found, your company should have a little breathing space to invest in innovation concerning the business plan and product. Monitor the economic situation. After a little while economic downturn will ensure that many creative minds are looking for work. Avoid searching for this straight away - the downturn may continue for sometime. However, if you snap this talent up at low cost as you ease out of the economic downturn, you can use it to help lift your performance in the future. This is slightly risky, because you may underestimate the length of the downturn, and hire more employees when you will not be able to pay for them.
Since there is no way of knowing how long the downturn will last, the most important activity a company can engage in is healthy survival. A downturn can be a weeding out process of the weaker companies or the ones with too much fat. Getting to the other side of the storm as healthy as possible I think is the best advice...then, assess the landscape. If a few other companies made it with you, but have been severely weakened in the struggle to stay alive...this would be a great time to innovate. New breakthrough concepts and no one to fight over market share with. Innovating in the middle of down market, while it can work out, it is a very risky move.
19 Total
April 15, 2008 at 9:45pm by Bradley Joyce
Now is the time to push your limits while everyone else is sitting back on their heels!
April 16, 2008 at 8:32am by Michael Kramer
Progress and innovation will advance with you or without you. Startups without anything to lose will pop up with an idea that will cause you more aggravation than tough economic times. If you stop innovating you've lost half the battle. So, bottom line: Keep innovating. Start by thinking of ways to use the "slowdown" to your advantage.
April 16, 2008 at 9:25am by Martin Moreno
extend ideas as this is where companies can differentiate from other companies and survive tough ecomonic times
April 16, 2008 at 11:55am by Kathryn Smidstra
Extend. The economic downturn is a result of the lack of innovation and self-sufficiency that used to be hallmarks of America's global influence.
America lost innovation when it became the most self-centered and consuming country on planet earth.
If we can get past being hoggish consumers of the plannet and start innovating again, we might have a chance of regaining some credibility in the world marketplace. Until then - we're screwed. So invest, invest, invest... but invest wisely.
My two cents.
April 16, 2008 at 12:01pm by Bradley Szollose
Today, status quo business models are being smashed. Why? Technology is part of the reason, but it's really peoples' comfort with this technology and their lack of tolerance for centralized power and control. Just look at the music and publishing business. The Internet eliminates hierarchy and the middle man. The big producers are nervous because they can't figure out a model for prosperity on the Web...the company that reinvents a business model in their sector, will win BIG!
Get some 20-somethings in a room and let them brainstorm...after all, they’re the ones in touch with your market.
Time to turn up the heat on innovation. Get started today.
April 16, 2008 at 12:12pm by John Edelmann
As the fear of recession increases and cost cutting continues, the role of innovation will undoubtedly come under greater scrutiny in board rooms and budget reviews everywhere. Understandably some will question the logic of additional expenditures in a time of corporate belt-tightening – posing the challenge “can we afford to innovative?” Perhaps the more critical question, when taking the broad perspective, is can your organization truly afford not to innovate?
Innovation – and all it means to an organization: sustainable growth, category leadership, rising above commodity status – is fundamental to success in any business climate. It must, however, be flexible enough to adapt the changing needs of the marketplace and the consumer.
Organizations should view their innovation efforts as part of a long-term business strategy, and never lose sight of the primary reason that an organization commits to innovation – regardless of the economy: to differentiate against the competition, add value throughout the supply chain, create consumer/end-user delight and drive incremental sales. Why would a company stop the very thing that will help them breakthrough and distinguish itself successfully in the marketplace?
Eliminating or drastically reducing your innovation budget during tough economic times puts the future sales and the value of a company at risk. Rather, smart innovators think “differently” about their innovation process to monitor costs yet maximize the output. Those business leaders will find a way to thrive – not merely survive – through the rough times.
April 16, 2008 at 7:38pm by k. kemper
innovation; expand.
people want solutions
at all times.
if the innovation solves problems that
other products don't,
bring it out.
April 16, 2008 at 10:08pm by Ray Gardner
"Safe" could be defined a couple of different ways in that question.
"Safe" should encompass of course what's best for the long term. Innovation should be promoted as much as ever. There's a risk involved with each new endeavor, and the possible scenarios are innumerable and so can't be laid out for easy solutions in an online forum survey.
Focusing on some kind of services for the home owner may not be wise in this kind of environment, but neither should it be dismissed on its face. Maybe the new "thing" would actually fit a cautious homeowner's needs.
Et cetera and so on.
April 17, 2008 at 3:31am by Bryan Howard
You need to fight like hell to save a critical mass of seed corn (innovation / R&D) no matter how hungry you are for those resources. Once it's gone a cold, dark future is a certainity. It's just a matter of how long it take for the lights to flicker out.
April 17, 2008 at 11:14am by Ivana Zgaljic
An innovative risk is always worth taking. Even if the creative risk does not bring in profit, lessons learned are invaluable and modifications are also possible. Also, innovation doesn't always have to be risky. The monetary and educational positives outweigh the possible monetary losses and innovation should take place no matter economic situation.
April 19, 2008 at 9:21am by Asad Sayeed Khan
Innovation is something to be defined as an positive approach towards the demand or say NEED.Respectively,with context to an economic downturn,it becomes more necessary to boost up the innovative activities within and outside the enterprise so as to cope up with the effects of the economic downfall on the economy and ownself as a whole.The process should be executed with utmost care keeping in mind that there should not be any negative effect of the process on the company itself..however..risk is an itegral part of the Business.
April 19, 2008 at 5:56pm by Nathan Bagby
It depends on the innovations. I believe true innovative activity is a fluid process that rolls with the economic punches. In the event of an economic downturn you don't curb your innovations you ensure that the innovations are steered in the right direction. I.E. making your company more sustainable, finding solutions that reduce cost on your end, introducing products or services to the general population that they need DURING an economic downturn. A perfect example, rising oil prices are making us look at alternatives to oil. Rising food prices tell us that bio fuel made from grains is probably not the right choice. The company, group, or individual that comes up with a viable alternative can help solve two global issues. Innovations is huge during economic downturns, it just depends on what you're direction.
April 20, 2008 at 6:50pm by David Stevenson
Extend. Carefully monitor reserves, Encourage the people in touch with the intended market to make the "Baby steps" of creating a product your consumers will find irresistable.
April 21, 2008 at 9:41am by
During times of recession, the market is usually awash with talent that can be hand at lower cost than before. It is during these times that smarter, well run companies will collect these great people and continue to expand their solutions. Also during these times companies have an opportunity to build an emotional brand with their target market since most companies are leaving them stranded with their problems unsolved.
In truth recession provides grand expansion opportunities for smart, well run companies. Take advantage.
April 21, 2008 at 11:08am by Bill Franklin
An economic downturn is a macro-economic phenomenon. Rarely is success or failure in a small or medium sized business determined by such "big picture" issues. By contrast, while your business plan, vision and strategy should have some idea of where you're going; your business activities should be focused on valid tactical goals and achievements. Unless your gut tells you that an economic downturn will radically change the way your company is building its "forest," don't change the way you're dealing with the "trees and the bark." In short: don't get distracted by macro-economic trends that don't immediately impact your business - focus on developing the business as you would have before awareness/acknowledgement of the trend.
May 7, 2008 at 5:42am by Charles Matovu
It may depend on the nature of undertaking , nevertheless in almost all cases of a down turn the no 1 remedy is to synergize. This is a time to bring out the best of your self, innovations in sales and marketing visavis innovations in cost cutbacks are the keys to turn around a business headed for the 4 sale column. Turning around a failing business requires overwhelming innovation, it is that idea that saves the enterprise , and the reason it usually takes a new brain is because it brings new innovation. INNOVATION IS EMPOWERMENT IN BUSINESS.
May 7, 2008 at 3:47pm by
Innovation is essentially change. A firm could change products and services, processes, business models, paradigms and positioning of their services and brands. My take is that firms need more innovation during downturns to stay competitive and to meet their performance targets. The form and nature of the innovation drives would most probably vary from one economic cycle to the next, but I think most firms would lean towards efficiency and productivity related innovation drives during economic down-turns.
Kheepe Moremi
May 24, 2008 at 12:35am by Luke Morton
If a company finds that it is beginning to suffer because of a macro-economic downturn, and there is no real problem with its business plan or product, it should focus its innovative efforts on improving the efficiency of its operations. Employees could be involved in this to a significant degree by encouraging them to identify the small things that add up. For instance, a secretary might note that your company could use recycled paper and ink, that the ink setting on most print jobs could be reduced to 'fast draft' or 'fast normal' and that the company could buy bigger computer monitors so that employees felt comfortable reading documents on-screen, rather than printing them off. These are very minor examples, but when these savings are combined, you may well find that a substantial amount of money is saved. These savings could even be directed towards bonuses that encourage employees to identify further savings. This method of innovation is safe and beneficial during economic downturn.
After the aforementioned innovations have been found, your company should have a little breathing space to invest in innovation concerning the business plan and product. Monitor the economic situation. After a little while economic downturn will ensure that many creative minds are looking for work. Avoid searching for this straight away - the downturn may continue for sometime. However, if you snap this talent up at low cost as you ease out of the economic downturn, you can use it to help lift your performance in the future. This is slightly risky, because you may underestimate the length of the downturn, and hire more employees when you will not be able to pay for them.
June 10, 2008 at 10:55pm by Kevin Royes
Since there is no way of knowing how long the downturn will last, the most important activity a company can engage in is healthy survival. A downturn can be a weeding out process of the weaker companies or the ones with too much fat. Getting to the other side of the storm as healthy as possible I think is the best advice...then, assess the landscape. If a few other companies made it with you, but have been severely weakened in the struggle to stay alive...this would be a great time to innovate. New breakthrough concepts and no one to fight over market share with. Innovating in the middle of down market, while it can work out, it is a very risky move.