On BusinessWeek.com, Scott D. Anthony, David S. Duncan and Richard N. Foster offer a guide to profiting through innovation in a recession.
The authors "see at least three categories of companies that should see a silver lining amid today's economic conditions [and] each can benefit from making strategic moves that build on their unique advantages."
The first category is described as "on-the-brink attackers". Innovators who have been working on the fringes of a market now have an opportunity to take advantage of the giants' problems and make an impact on the mainstream.
"Businesses on the brink of breaking through can improve their chances of success by focusing on strategies shared by the most successful disrupters," say the authors.
Innovation "systematizers" make up the second group with a chance to shine in a recession. Businesses that have already banked on innovation can "double down" and create multiyear growth gaps over the competition.
The authors advise systematizers to look closely at their portfolios and ask questions such as whether they could still hit revenue and profit targets if half or more of the projects fail, and also work out which of the ideas they should accelerate, decelerate or shut down.
The third category is the "streamliners". These are businesses that can "use current conditions to accelerate efforts to truly change at the pace of the market without losing control". Streamliners should use the present economic climate to look at business activities that have passed their sell-by date and dispassionately discontinue them.
Innovation, Recession-Style
Scott D. Anthony, David S. Duncan and Richard N. Foster, Business Week, 19/12/08
