Innovation Knows No Recession

By David Clark, New Business Development Manager, the Malco Design & Deliver Group

During a recession, you need to continue having the confidence to know that moving new ideas to market will help you grow. Your new product pipeline should be directed at your best growth opportunities, those that point the way to the future of your business.

Keep in mind that more market share changes occur during a recession than during good times. Witness how Apple Computer and Ford Motor Company have increased market share by moving forward with innovative new products designed for continuing future growth. Both companies kept their new product development on track despite the economic downturn and are now reaping the rewards.

These successes make a case for moving longer-term projects forward, not back. Now is the time to grab market share, while downturns provide the opportunity to widen the gap between you and your competitors.

Innovation leads the way to this growth. Gillette's most successful product ever, the Sensor razor, was launched during the 1990 recession and paved the way for continuing product innovation to become the company's biggest source of profit growth.

Flexibility + Innovation = Growth

There is a link between innovation and economic recession, and this link is based on the flexibility to respond in good times or bad. This flexibility, coupled with innovation, equals growth.

To grow, you need to commit resources to new product design and development. However, you may be afraid to commit these resources due to the uncertain economy.

During tough times, organizations tend to look at their fixed costs as either good costs or bad costs. Innovation itself is classified as a good cost because it leads to increased market share and revenue. However, actually hiring new people to push innovation forward is looked upon as a bad cost because of the long-term commitment generally associated with new employees.

A Juicier Steak, Not a Louder Sizzle

It has been said that innovation leads to a juicier steak, not a louder sizzle. It's not necessary to hire people and increase your fixed costs to move innovation forward when you can outsource your innovation and product design efforts and actually reduce your fixed costs. The Malco Design & Deliver Group lets you get new products moving forward while holding the line on fixed costs, resulting in a much juicier steak for your organization.