In his excellent book, Game Changer, author, Ram Charan states that "When innovation is at the center of a company's way of doing things, it finds ways to innovate not just products, but also functions, logistics, business models, and processes. This point is well taken given today's economic environment.
While an innovative company will probably continue to research and develop new products even in a downturn, those same companies need to look at all of their processes in order to stay competitive or even just to stay in the game. There is little doubt that times like these, and they may actually be quite unique, demand creativity and innovation by great companies.
Even though the normal business cycles as we have known them lead to downturns as well as booms, this recession really is unique. It is unique for many reasons that have to do with banks and mortgages. This current situation is also a result of the rate of change in business and in our society.
Many years ago, a very popular book titled Future Shock by Alvin Toffler was recommended reading for all people interested in the future. In the book, Toffler speaks of accelerating rates of change that will leave people disconnected and suffering from shattering stress and disorientation.
In my observation, the rate of change has been event greater than that. Our extraordinary means of communication that exist in this decade, have accelerated change beyond that of our imagination from the 1970's. I believe that this change level has directly contributed to our current slump.
Many companies will emerge from this slump in an even better position than prior to it but in order to accomplish this amazing run, they will need to innovate. They need to apply innovation to all aspects of their business. Companies need to take a macro and micro look at their operations now and figure out how they plan to emerge.
It is not business as usual in 2009 but these are times for careful analysis and very strategic planning. Keeping innovation at the forefront of that planning is the key to surviving this recession and emerging as a leader.
3 comments:
Very nice.
Question--can innovative thinking be learned? Strategies to sharpen the skill?
Do you have the book mentioned in your post? Are you done with it? Can I borrow? I finished A Long Way Gone. Looking for something to tide me over until after the 26th.
I think that innovative thinking can be learned. However, part of the aging process for people includes becoming locked in a comfort zone making innovation more difficult.
When innovative thinking is institutionlized into a company and participation occurs at all levels, adapting to innovative thinking becomes easier.
I do have the book but I have not yet finished reading it.
I totally disagree. While it is true about that "comfort zone" of the aging process that you mentioned, let's look at the other side of the coin as well.
I believe that as we age, the "midlife crisis" that hits some of us actually PROPELS us to try innovative new things ... some good and some bad, but at least we TRY them, knowing that our time on Earth is precious.
We take up new activities such as snorkelling, scuba-diving, bungee jumping, sky-diving, and some things that are less adventurous, but no less risky, like opening our own business or learning a new skill like pottery or guitar or gardening.
For the first time in many years, the kids are grown and gone, the house is empty, and we feel free to expand our minds and bodies ... whether they're willing or not, LOL!
I for one refuse to be saddled with that "stagnant, old-fashioned" label, and I truly believe that some, if not many, companies are missing out on the knowledge, great work ethic, and newfound freedom of the mature worker.
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