Innovator’s Dilemmas: to innovate or not to innovate
“Slowing Economy Dampens Research and Development Spending. Total funding for research and development (R&D) is expected to increase just 3.3 percent in 2008 from the $355 billion funded in 2007 to the $367 billion expected to be funded in 2008.”
“Recessions present a good opportunity to collaborate with others on finding, developing, and marketing new ideas. With the economy softening, it’s tempting for companies to turn off the lights and shut the door on innovation efforts until things pick up. But while this might look like a smart move, the impact—lost momentum, team dispersion, and wasted investments—is less than desirable. It doesn’t have to be this way.”
A Ripe Time for Open Innovation
These days we can read reminders about the fact that recessions are part of life, they help correct excesses which would otherwise perpetuate poor management that could cause even worse problems ahead.
Good managers can be impacted at the time of experiencing elevated market risks and financial pressure, making it harder for them to obtain funding for innovative projects, specially when the survival of the business might actually be at stake. So, a couple of questions come to mind: what do you do in a bear market? is it true that necessity is the mother of invention?
Some people claim that they perform better under healthy tension and pressure and that having to overcome constrains makes them be more resourceful and creative, thus being able to make a difference when many other are just playing safe. Some other become more conservative and more efficient by avoiding any unnecessary risk so they can remain in business and grow again when a bull market comes around. In my mind, both could be innovating, the difference would be whether they focus on product or process innovation.
Open innovation would help with tackling both. As Jeneanne Rea explains “open innovation is about connecting with others to find new ideas and, often, to co-develop and co-market them”. Hence, open innovation involves process innovation enabling product innovation. As far as corporate partnerships are concerned, they often start by discussing shared visions, the benefits from cross-pollination, leveraging synergies, complementary skills and assets as well as agreeing on roles, responsibilities, intellectual property management and commitment levels. Many fail to realize that as the market changes the partners’ business priorities can shift and even fall out of alignment. That is no one’s fault. Since partnering is not a risk free practice it pays to conduct scenario planning early enough in the process as well as articulating exit strategies.
Related posts:
- Quality vs. innovation?
- Value vs. revenue?
- Do you really need to be disruptive?
- Who is the innovator?
- How do you demo innovative technologies?
- Do you really need business modeling?
- Innovators’ dilemmas
- Is innovation just about problem solving?
| J. de Francisco |  |
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| New Jersey, 20 March 08 |  |
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