Why Your Business Needs Innovation
Innovation is crucial to a business's survival, and it's even more important in times of crisis.
History proves this to be true. During the 2009 financial crisis, organizations that maintained their focus on innovation outperformed the market average by more than 30%, and continued to grow over the next three to five years.
Necessity is the mother of invention. Here are a few other examples of innovation during crisis:
- The climate change crisis drove the growth of solar equipment and electric cars
- The SARS epidemic of 2002 led to the widespread adoption of e-commerce in China, making the country the epicenter of innovation around social commerce
But during the coronavirus pandemic, innovation tumbled down most companies' priority lists.
In a 2020 McKinsey survey of 200 organizations across the industries, only one fourth reported that capturing new growth was a top priority, compared with 60% pre-pandemic. The survey showed decline in innovation in every industry, except medical products and pharmaceuticals, which showed an increase of 30%.
Many executives have bypassed innovation in favor of cutting costs, implementing safety measures, and stabilizing the core business. Those surveyed believe they will return to their innovation efforts once the world is stabilized. But by then it may be too late.
NOT INNOVATING IS A MISTAKE
We believe that in time of crisis, innovation is more important than ever. If you wait until conditions are right, you will miss out on opportunities. Innovation is the long game - and you need to continually invest in it before you reap the benefits.
Some industries have innovated during the pandemic:
- Car manufacturers made ventilators
- Breweries made hand sanitizer
- Restaurants offered curbside pick-up
- Meetings were conducted via Zoom
- Sales processes were going virtual
- Drones delivered medical supplies
- Companies made 3D prints of nasal testing swabs
JUST INNOVATE. YOUR COMPETITION IS.
Innovation needs to stay a priority in your business because your competitors are finding a way to do it. If you don't keep up, you'll be left behind, if you even survive at all.
Invest in systems that can bring you better information, data management, and reduce your employee turnover. AI is becoming more and more prevalent, and is able to understand customer needs, even deciphering full sentences and responding to customer inquiries accordingly. The salon and airline industry are using AI as a front-line for customer interaction.
How has your business innovated in the face of the pandemic? Share with us on Facebook, Twitter and LinkedIn!