The Innovation Imperative
21st Century Business Review August 2009 by Bansi Nagji, Jeff Wordham
Of all the choices facing companies in these tumultuous times, those related to innovation are perhaps the most challenging. Put starkly, companies can choose to respond to the recession with a survival strategy or a leadership strategy for innovation.
Most companies pursue a survival strategy, cutting costs to the bone while adopting a risk-averse posture and focusing on defending their core businesses. Companies that choose this strategy do so at their own peril—increasing the likelihood that they will be among the majority of companies which emerge from recession in a weakened competitive position.
Some forward-looking companies choose a more productive strategy and take a leadership stance, recognizing that recessions and times of uncertainty present unusual opportunities. During a recession, competitors pull inward, creating openings for firms to go on the offensive with targeted and refined innovation programs, enabling them to gain ground during the downturn and increase momentum when the economy picks up. >>