The concept of innovation is typically associated with products but during a recession it has particular relevance to your business model. Why? Because customers are looking harder than ever for more value and vendors who can best accommodate them. Marketers who can translate this into how they do business stand to profit. Literally. What happens is that most managers tend to focus on costs during a downturn. Not that there's anything wrong with that, but it can backfire. It can cost more than you'll ever save: the loss of business, customers, brand and opportunities. You can avoid this trap by thinking about your big-picture value proposition. Think of your business model holistically. Like a mobile hanging from the ceiling. Mess with one part of it and it affects the whole system.
It was during recessions and downturns that some wildly successful business-model innovations came into being: Software as a subscription service in the 90's (Salesforce.com) outsourcing of personal computer computer components in the 80's (IBM) are now taken for granted. At the time they were as disruptive as any product breakthrough. And they rewarded the innovators in proportion to the disruption. Think customer value and you can reap the harvest, no matter how tough the times.
Comment Preview