As the crisis continues, innovation leaders are forced to focus on "short term innovation, which is actually a good thing. Here's why.
As the crisis continues, innovation leaders are forced to focus on “short term innovation.” This is counter-intuitive to many. How do we get the best out of this situation? I did some research and asked around to find out why short term innovation can be a good thing. This is what I learned:
- Companies clean up the portfolio and get rid of “living-dead” projects that only survived in times with plenty of resources.
- Companies are forced to develop better processes and set sharper deadlines which can make innovation more efficient in the long run.
- Companies pay more attention to external partners as a way to get extra funds for innovation. This speeds up the move towards open innovation which I believe will become a very effective type of innovation in the years to come.
- Larger companies can acquire innovation cheaper as the price of promising smaller companies drops.
Of course, we also need to discuss why short term innovation is a bad thing:
- Companies as well as the society in general could lose out on the benefits of the many radical innovation projects that are being stopped right now. Hopefully most of these projects can be put into a latent mode and be activated again when the business climate improves.
- It forces employees and partners to work harder and contribute out of fear of losing their job rather than out of the passion for the opportunities they see in the projects
This is an intentionally short post. It would be great if we could build further on the pros and cons of innovation in the current business climate. I look forward to hearing your comments.