Ask the Experts: 7 Ways to Stay Innovative in this Economy
January 19, 2009 -- A consumer goods company that continues to innovate without pause -- while its competitors are curtailing product development efforts -- has the best chance for growth despite a recession. That is why CGT asked the experts to share best practices for staying innovative in this uncertain economy (or any economy for that matter). Here is what they had to say:
1. Actively manage the product portfolio. Now more than ever, historic demand is not a good predictor of future demand. Focus on product portfolio rationalization efforts to streamline complexity and sense product portfolio changes. Tie demand sensing to product portfolio management. - Lora Cecere, Vice President, Consumer Products, AMR Research
2. Focus on core. When the economy slows down, the customers you are likely to lose are the ones on the periphery -- that were less loyal (and hence less profitable) to begin with. Concentrate your portfolio of businesses on long-term winners -- shed the marginal ones. That designation is defined, first, by financial performance; and second, by the degree to which an individual business employs mutually reinforcing capabilities that cross business unit lines and distinguish the enterprise as a whole. - Alex Kandybin, Partner, and Surbhee Grover, Senior Associate, Booz & Co.
3. Collaborate, collaborate, collaborate. Form more partnerships to draw additional resources and insights through crowd sourcing. Use the power of inspired user groups to accelerate innovation while utilizing virtual volunteer consultants. - Cheryl Perkins, Founder & President, InnovationEdge
4. Think cheap. Don't focus on premium. Instead, focus on delivering the basic needs for the consumer at the cheapest price possible. - Tom Szaky, Co-Founder & CEO, TerraCycle Inc.
5. Focus on gaining relative market share. One way to accomplish this is via products and offerings that are not only relevant and differentiated, but difficult to copy. Differentiation that is difficult for competitors to replicate (via technology, patents, claims, brand equity, etc.) leads to sustainable advantage and enhanced relative market share. - Alex Kandybin, Partner, and Surbhee Grover, Senior Associate, Booz & Co.
6. Build Strong Leadership. Make it clear to your team that your culture supports innovation and growth. Theyll likely see this as a strong leadership focused on long-term direction, showing no evidence of short-term panic. - Cheryl Perkins, Founder & President, InnovationEdge
7. Hire! If you can take advantage of it, start hiring people since there is a fantastic talent pool out there that can't find jobs. - Tom Szaky, Co-Founder & CEO, TerraCycle Inc.
For more expert tips on how to help your business survive in a downed economy, read the following articles:
CG Survival Guide: Five Ways to Outlive the Recession
CG Survival Guide, Part 2: Five More Ways to Outlive the Recession
Beating the Odds: Three CG Companies Thrive Despite a Recession
P&G Knows Best: Inside its New Approach to Global PLM
1. Actively manage the product portfolio. Now more than ever, historic demand is not a good predictor of future demand. Focus on product portfolio rationalization efforts to streamline complexity and sense product portfolio changes. Tie demand sensing to product portfolio management. - Lora Cecere, Vice President, Consumer Products, AMR Research
2. Focus on core. When the economy slows down, the customers you are likely to lose are the ones on the periphery -- that were less loyal (and hence less profitable) to begin with. Concentrate your portfolio of businesses on long-term winners -- shed the marginal ones. That designation is defined, first, by financial performance; and second, by the degree to which an individual business employs mutually reinforcing capabilities that cross business unit lines and distinguish the enterprise as a whole. - Alex Kandybin, Partner, and Surbhee Grover, Senior Associate, Booz & Co.
3. Collaborate, collaborate, collaborate. Form more partnerships to draw additional resources and insights through crowd sourcing. Use the power of inspired user groups to accelerate innovation while utilizing virtual volunteer consultants. - Cheryl Perkins, Founder & President, InnovationEdge
4. Think cheap. Don't focus on premium. Instead, focus on delivering the basic needs for the consumer at the cheapest price possible. - Tom Szaky, Co-Founder & CEO, TerraCycle Inc.
5. Focus on gaining relative market share. One way to accomplish this is via products and offerings that are not only relevant and differentiated, but difficult to copy. Differentiation that is difficult for competitors to replicate (via technology, patents, claims, brand equity, etc.) leads to sustainable advantage and enhanced relative market share. - Alex Kandybin, Partner, and Surbhee Grover, Senior Associate, Booz & Co.
6. Build Strong Leadership. Make it clear to your team that your culture supports innovation and growth. Theyll likely see this as a strong leadership focused on long-term direction, showing no evidence of short-term panic. - Cheryl Perkins, Founder & President, InnovationEdge
7. Hire! If you can take advantage of it, start hiring people since there is a fantastic talent pool out there that can't find jobs. - Tom Szaky, Co-Founder & CEO, TerraCycle Inc.
For more expert tips on how to help your business survive in a downed economy, read the following articles:
CG Survival Guide: Five Ways to Outlive the Recession
CG Survival Guide, Part 2: Five More Ways to Outlive the Recession
Beating the Odds: Three CG Companies Thrive Despite a Recession
P&G Knows Best: Inside its New Approach to Global PLM