Innovate In a Recession
If the downturn is hurting your entrepreneurial spirit, we have good news for you: Recessions are historically ripe with opportunity for innovation. Don’t believe us? Read on.
By Tiffany Meyers | Entrepreneur Magazine - February 2009
Change Your Mind-Set
The economy tanks. You have two options: hole up in a bunker and hope it ends before you run out of tinned peas, or innovate and emerge stronger than when the economy took the hit. “During a recession, people tend to say, ‘Let’s stop everything and save money until it’s over,’” says Bernard Meyerson, vice president and CTO of IBM’s systems and technology group. “Well, you’re not going to save your way to greatness.” But you can innovate your way there. So stop moping and heed our experts’ advice. Here are three steps that’ll help you focus on innovation rather than recession woes.
- Take a Reality Check
“Love the lows,” the experts proclaim. “Relish the recessions.” Given the national mood, even Curb Your Enthusiasm’s Larry David comes across as more sensitive. In fact, before you relish anything, “make sure your core business is strong,” says Susan Schuman, CEO of innovation and leadership firm SYPartners. “Protect your core, because only then will you have the capacity to innovate.” - Don’t Go It Alone
There’s the romantic notion of innovation: lone genius, devising the idea of the century–from a tool shed. Then there’s reality. “Innovation is actually much more complex,” says Edward Bevan, vice president of innovation and market insight at IBM. “Increasingly, it’s the integration of technology, business models and pro-cesses–all wrapped together. It’s very difficult for any one entity to do that alone.”Bevan ought to know. He oversaw IBM’s 2008 “Innovation Jam,” an online gathering of thinkers who generated far-ranging ideas from which IBM will extract solutions that all participants can use. Few entrepreneurs could erect an IBM-size jam, but the guiding principle applies: “We believe that if we pool our wisdom, we’ll end up with better results,” Bevan says.
