Targeted innovation – the response to a world changed by economic crisis

In a zombie economy, successful companies will make decisive changes to their approach to innovation, ensuring their survival of any extended downturn and beginning the upturn with a new-found competitive edge.

Ian Rhodes, PA expert in Technology and Innovation says, "It is likely to be at least two years before companies can think about business as usual. To achieve stability and ensure survival, companies have been implementing cost reduction programmes and rationalising their business portfolios.

"The zombie economy should not mean innovation hibernation. A proactive approach to streamlining your portfolio, to focus on providing benefits to customers and strengthening market position, will pay dividends in the new world."

To innovate for the upturn, it will be important for your company to:

1. Intensify the focus on creating value for your customers: release resources by eliminating projects that do not contribute to growth and focus on  opportunities in new markets

2. Instigate ‘lean’ innovation: seek enhancements to existing products through added value services or personalisation to provide significant and unexpected benefits to consumers

3. Direct all your innovative power at the priority issues: use the crisis to create a high-energy, innovation-focused, culture. By removing the organisational roadblocks that stifle innovation a new momentum can be created

4. Take advantage of ‘one-off’ opportunities: capitalise on the consequences of the downturn to strengthen the company’s position for the future by acquiring or licensing in technology from struggling competitors accessing government stimulus packages or customising products to the needs of emerging markets

5. Leverage ‘open innovation’: avoid major investment by integrating external innovation partnerships with your internal innovation processes and infrastructure. Use these networks to respond rapidly and effectively to the innovation opportunities that arise.

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