Innovation in Recession - A Simple Three-Step Exercise

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Innovation in Recession - A Simple Three-Step Exercise

  1. 1. Innovation in Recession A simple three-step exercise
  2. 2. Innovation is usually seen as a luxury in times of growth.
  3. 3. For most companies, we can describe the actions taken during economic crisis as follows Reduction measuresLayoffs, cuttingwages,withholdingexpansion, etc. Severity of Crisis
  4. 4. That’s wrong!Past recessions have proven themselves opportunities for growth and for launching new products.
  5. 5. That’s wrong!Past recessions have proven themselves opportunities for growth and for launching new products.Kimberly-Clark Axe body spray Crest Whitestrips The soap opera genreCorp.’s Pull-Ups Training Pants
  6. 6. All clear? Now, let theInnovation begin!
  7. 7. The Scenario We own an exclusive chain of caféswith average distribution of branches, during recession
  8. 8. Intuitively (and just like ourcompetitors), our brains tell us not to open more branches during a recession Reduction measures Here’s our graph Severity of Crisis
  9. 9. Step #1We will artificially change the graph
  10. 10. Reduction Option 1 measures Option 2 Severity of CrisisChanging the graph forces us to think in a different way and be more creative.
  11. 11. Step #2The forced change of the graph generates a new scenario
  12. 12. Step #2The forced change of the graph generates a new scenario The more severe the crisis, the more branches we open!
  13. 13. Step #3We come up with ideas for business activities in this new scenario
  14. 14. Idea AWe could use mobile coffee stands,each functioning as a mini branch ofthe chain.
  15. 15. Idea A Mobile Coffee StandsWhat are the advantages of this idea?
  16. 16. Idea A Mobile Coffee StandsWhat are the advantages of this idea?Significantly improves business reach, at muchlower cost than opening new branches. Thisincreases customer awareness of the brand.
  17. 17. Idea BLimit idea A and declare that standsare positioned in each neighborhoodfor as long as the recession continues.
  18. 18. Idea B Recession-long coffee standsWhat are the advantages of this idea?
  19. 19. Idea B Recession-long coffee standsWhat are the advantages of this idea?Suggesting that quality coffee is a necessity andnot a luxury for our customers.
  20. 20. Idea CWe could reinforce the idea by hiringpeople who have lost their jobs in thecurrent crisis.
  21. 21. Idea C Hire recession “victims”What are the advantages of this idea?
  22. 22. Idea C Hire recession “victims”What are the advantages of this idea?Boosting our brand’s image and esteem.
  23. 23. What just happened?
  24. 24. We used a thinking tool
  25. 25. We used a thinking tool It’s called Attribute Dependency
  26. 26. Attribute DependencyThe idea is to force us to imagine a differentrelationship between two variables
  27. 27. Attribute DependencyThe idea is to force us to imagine a differentrelationship between two variables.In this exercise, we reversed the relationshipbetween the variable “severity of crisis” and thevariable “reduction measures”
  28. 28. Try to think of other variables whose relationship should be reversed
  29. 29. Can you come up with new, non-trivial solutions?
  30. 30. Be an Innovative Manager!Boost your managements skills and outplayyour market with SIT’s 3-day premiuminnovation training course.February 27-29, 2012NYC

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