Innovation as a Means to Survive the Crisis
By: Ronja Lodmark
Tags: Strategy, Markets, Business, Covid 19, Innovation

The word crisis originates from the Greek ‘krísi’ which means ‘decisive moment’. Though the meaning can be interpreted in various ways, the sentiment it carries sheds a light of optimism particularly for businesses trying to keep above water in these testing times. Just as ‘krisi’ suggests, it is how businesses confront the challenges imposed by the current state of affairs which ultimately will dictate the outcome, being either prosperous or defeating.

The coronavirus pandemic was far from discriminatory with organisations on a global scale suffering its impact. In-person service providers and hospitality industries have been the ones affected the most, with investors seen moving their assets to more secure options since early March. On the other hand, the pandemic could be defined as zero-sum as there is a category of industries which has seen tangible growth and profitability stemming from this crisis. Communication tools and Telemedicine have proliferated greatly from the previous year and the industry of Telemedicine alone has an estimated worth of a quarter trillion dollars. Though there are clear beneficiaries to emerge from this crisis, what is possibly even more interesting to explore are the ways of which businesses with a seemingly ‘doomed’ business model managed to diversify through innovation in order to navigate their way out of this crisis.

On a macro perspective a surprising number of mergers and acquisitions have been seen throughout this last quarter of 2020 with many analysts pledging M&As to be “the only way out of the crisis”. However, this V-shaped increase in M&As has raised concerns, with recent studies predicting pessimistic forecasts featuring revenue losses and consumer surpluses. However, the big picture M&A business aside, — it is by looking at innovation on a micro level that one can begin to appreciate the true sense of creativity this pandemic has brought on. For instance, an Atlanta high school student honed her entrepreneurial disposition and created a service allowing the public to purchase meals from local restaurants to hospital workers. And it is this kind of multilateral approach to innovation, that came to nuance the way a great amount of businesses would restructure their operations.

Recent reports from McKinsey & Co. have outlined just how much companies allowing for creativity and independence among their employees have benefitted from and in instances even saved, their business. For instance, a U.S based industrial company followed a proposal from one of its frontline employees and began manufacturing ventilators, and all up and running within a week. Similarly, a group of gym owners forced to shut down collaborated and moved their services online by operating a ‘virtual gym’. Local restaurant and grocery stores have teamed up with online delivery services which has generated a positive surge in a consumer consciousness of buying and supporting local businesses. Further, a group of women who lost their jobs recruiting for big tech companies, created a HR initiative supporting job seekers through free consulting and guidance. The common denominators that can be appreciated across the examples above are that of; creativity and ownership.

It is no secret that the pandemic has inferred a great amount of stress on businesses worldwide. Large quantities of organisations have had to shut their doors on a permanent basis and many of them being small, local, often family owned businesses. These are difficult times to navigate through for any business, but as seen, the pandemic has also come with its own set of opportunities. Large companies forced to restructure their organisational culture have discovered a wealth of value by recognising the real abilities of their employees. By reinventing traditional ways of working with a more collaborative approach, companies have been able to generate creative solutions to novel challenges. And by leveraging the uniqueness of diverse yet unified perspectives, individuals and businesses have managed to acknowledge this ‘decisive moment’ we are in, and carved a path toward success.

Ronja Lodmark