Innovation approaches to prepare for a crisis
With every crisis comes myriad opportunities for innovation and creative responses to changing needs. Emerging niches will lead the agenda in the coming years. This can be a difficult realization for such a hard-hit sector, but winners will inevitably emerge from this crisis and they will set the agenda for the post-COVID industry.
The lack of a clear innovation strategy is a fundamental problem when responding to unforeseen events. Innovation is often misunderstood as something you do when things are going well. However, times of crisis are in fact fertile ground for innovation. Don’t be intimidated into trying to maintain the status quo – this is the time to think outside of the box.
What is Innovation Strategy?
Innovation is about creating new value that people are willing to use and pay for, whereas strategy is the plan for harnessing, for example, marketing, operations, finance and R&D to achieve a competitive goal.
Building innovation into your strategy development process starts with making a deliberate choice of focusing on the best possible way to achieve goals as well as justifying the reasons behind that choice.
Innovation approaches – Business Model Innovation
Business model innovation has been defined as “the art of enhancing advantage and value creation by making simultaneous — and mutually supportive — changes both to an organization’s value proposition to customers and to its underlying operating model.” This framework provides a compelling case for harnessing a crisis as an innovation push.
The primary goal of business model innovation is to realize new revenue sources by improving product value and how products are delivered to customers. Business model innovation requires a deep understanding of your business’s competitive advantage and can be approached in four different ways.
There are already champions emerging within the travel and tourism industry who have harnessed this crisis and differentiated themselves in their innovative response to this crisis.
Ask yourself where your business sits on these axes to help define your response.
Establishing innovation techniques and systems
It is vital to define which innovation techniques and systems are needed to link your innovation infrastructure elements together. What are the most important systems that support and help measure the results of your strategy? In times of stability, testing and reverse-engineering of strategies can help accomplish this, however, a crisis provides an open real-time innovation field-test, if managed correctly. Consider the following aspects:
By breaking down the decision-making chain in this way, you can develop resilience against panic. Take a step back and break down your business’s response to each of the emerging constraints and requirements to foster leadership.