Innovation Strategies for the Innovation Strategies for the Global RecessionGlobal Recession

Presentation By,Presentation By,Mr. Sagar Kumar Mr. Sagar Kumar

Mr. Chuck Frey Mr. Chuck Frey Founder & Editor Founder & Editor InnovationTools InnovationTools http://www.innovationtools.com http://twitter.com/innovationtools chuck@innovationtools.com

Ms. Renee Hopkins Callahan Ms. Renee Hopkins Callahan Director of Publications Director of Publications Renee_Innosight Renee_Innosight http://www.innosight.com http://twitter.com/reneecallahan http://twitter.com/strategy_innov rcallahan@innosight.com

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A Special Report Presentation on “Innovation Strategies for the Global Recession” Written By,

What is Recession ?What is Recession ?In economics, a recession is a general slowdown in economic activity over a sustained period of time, or a business cycle contraction. During recessions, many macroeconomic indicators varyin a similar way. Production as measured by Gross Domestic Product (GDP), employment,investment spending, capacity utilization,household incomes and business profits all fall during recessions.

Governments usually respond to recessions by adopting expansionary macroeconomic policies,such as increasing money supply, increasing government spending and decreasing taxation.

Overall ThemesOverall Themes

Start scenario planning now.

Redouble your focus on customer needs.

Strengthen the positioning of your products and services using marketing innovation.

Prune your innovation portfolio.

Look for opportunities to inexpensively test new ideas.

Embrace open-source innovation.

Look for creative ways to extend your current products.

Take a fresh look at your supplier relationships.

Conduct a disruptive threat assessment.

Don’t just think about innovation in terms of products, services, and business models.

Innovation strategies Innovation strategies

Promoting your product and/or service's value in a recession.

Better utilize your resources.

Deliver more value to customers .

Creative partnerships with other struggling companies.

Establish better ways to collaborate.

Keep It Simple Sweetheart (KISS) .

Putting It All Together .

As the world dips into what is now being described as the worst recession since the 1930s, many businesses

are revisiting their innovation strategies.

Innovation can help us Innovation can help us Recession-proof our business.Recession-proof our business.As the economy continues to tumble, it is tempting to cut back on our investments in innovation. But now is the perfect time to increase our innovation efforts.

Reduce R&D costs.

Reduce operating costs.

Match supply and demand.

Suppliers’ business.

Solve your customers’ pain.

Fail cheaply.

Before you can multiply, we must first learn to divide.

Small & Sweet

Company

R&D

Operating

S&D

Fail cheaply

Innovation is real and sustainable in Innovation is real and sustainable in troubled timestroubled timesInnovating through a downturn (not just in a downturn) means thinking and acting differentlyto make innovation real and sustainable in troubled times.

Cash is king AND real assets matter .

Batten down the hatches AND plan for new escapes .

Save yourself AND protect your friends.

Clean house AND build foundations for new adjacent rooms.

Divide and conquer AND connect the dots.

Have some

coffee Mr.

Trouble

Making Making Innovation Innovation WorkWork

Clean the pipeline.Clean the pipeline. Get rid of the projects in the R&D pipeline that are not essential.Unless you have just completed arigorous housecleaning, your pipeline contains projects that are not that important; get rid of them. Under the current conditions you can’t afford to waste the resources on good, but not great, projects.

R & D Pipeline

Thank You Sir, For taking our Housecleaning service.

Reduce Complexity.Reduce Complexity.Dump the ProductsProducts and Broad Portfolios Broad Portfolios that weigh you

down and do not provide value. In the past, many of those products seemed worth supporting and broad portfolios may have seemed attractive. Now they just suck up R&D resources and time - both of which are precious.

Dumping Missile Lunch Pad

It is time to let some go.

Severe conditions punish those that are slow. Drive a few critical projects faster and reap the benefits sooner. Allocate additional resources to selected high priority innovation projects that can deliver near-term benefits. We can find the additional resources from the projects what we have dumped from

the pipeline and the reduced complexity. Also remove any barriers that would delay decision making and action.

Concluding the Next Move ……Concluding the Next Move ……

Suggesting ways to managing capacity in time of Recession.Suggesting ways to managing capacity in time of Recession.‘Convert which is something more valuable.’- “Outsourcing”.‘Convert which is something more valuable.’- “Outsourcing”.

I want to find out new sources in time of Recession can you help me out: Make sure you have sufficient quantities of the best available resources

because this storm is not going to blow over any time soon. Take advantage of R&D talent in low cost countries such as China, India, Vietnam, and Eastern

Europe. Properly done, sourcing not only lowers cost but also improves innovativeness.

HelloHello Tech support.. How may I help you ?Tech support.. How may I help you ?

I want to find out newI want to find out newsources in time of sources in time of Recession, can you Recession, can you help me out ?help me out ?

Ok, make sure you have sufficient Ok, make sure you have sufficient quantities of the best availablequantities of the best availableresources.resources.

WhyWhy

Because this storm is not goingBecause this storm is not goingto blow over any time soon. to blow over any time soon.

What to do now ?What to do now ?

Take advantage of R&D talent in low cost Take advantage of R&D talent in low cost countries such as India, China, Vietnam, andcountries such as India, China, Vietnam, andEastern Europe.Eastern Europe.

If we done it properly ?If we done it properly ?Sourcing not only lower cost but Sourcing not only lower cost but also improves innovations.also improves innovations.

Thank You.Thank You. It my pleasure.It my pleasure.

Thank you, for listening

our presentation on

InnovationInnovationStrategiesStrategies

for thefor theGlobalGlobal

RecessionRecession