Corona creates a breeding ground for innovative companies - Crisis management through innovation strategies and promotion of technologies

Introduction:

In this SEViX interview, Senior Executive Partner Dr Thomas Forster https://sevix-group.com/partner-forster/ and innovation expert Prof.-Dr. Horst Schmidt-Bischoffshausen talk to SEViX founder Rainer E. Ulrich about what is needed to make a company truly sustainable and to bring about long lasting change.

In the last few months, Corona has presented new challenges to personal and economic life. Actually, the focus is on life after the crisis with managing the consequences of economic and technological changes that people and organizations are confronted with. Apart from necessary answers, the question simultaneously arises how Corona can be used as an opportunity for innovation, for the application of possible new basic technologies and, as a result, for new profitable growth spurts.

SEViX: Can Corona be understood as a crisis that can set off new growth and innovation cycles?

Dr Forster: At present, it is not possible to reliably predict what the economic and financial situation will look like after the ongoing corona virus crisis. When we start from the Kondratieff cycles - description of economic waves by the Russian economist Kondratieff - we are still in the 6th Kondratieff cycle. This cycle is still dominated by information technology and digitalization. It will continue to dominate us - like the Kondratieff cycles 1-5 before - for another 30-40 years.

Kondratieff speaks of waves of upturns and downturns. Periods of growth and recovery are years with predominantly a good economic situation. These years are followed by downturn phases, which are mainly characterized by years of recession. In these downturn years, also caused by crises, new innovations, so-called basic innovations, are usually emerging.

These innovations lead again and again to new upswings, economic growth and prosperity. It can certainly be assumed, if we want to recognize possible opportunities due to Corona, that successful crisis management, new growth and prosperity will only be accompanied by a push of new innovations or the acceleration of already known innovations. Corona will therefore promote the awareness that only innovative companies will successfully prevail in a competitive business environment. 

SEViX: Which new innovative impulses can be assumed after Corona?

Dr Forster: We are convinced that Corona will initially push a further acceleration of digitization. Unfortunately, Germany and Europe still occupy only weak market positions of the market penetration of this basic technology. Even during the crisis, however, we were already able to perceive indicators of an accelerated market penetration of digitization, such as an increase of video conferencing or increased working from the home office. As a consequence, we will have different organizational structures in the future, which will be much leaner.However, even after Corona, we will continue to talk about already known "new" basic technologies on which focus was already placed before the crisis, such as autonomous driving, nuclear fusion technology, cloud computing, nanotechnology or artificial intelligence. Here, too, we can certainly expect a boost in the form of higher acceleration, increased market penetration.

However, the topic of health, which 6th Kondratieff also describes as a determining factor alongside digitization, will become even more important. The pandemic will make people even more aware of their health. Life science companies with a high level of product development competence, which concentrate on product innovations in biotechnology, biochemistry, pharmaceuticals and medical technology, will face growth spurts. 

SEViX:  So what can companies do to strengthen their powers of innovation again?

Prof Schmidt-Bischoffshausen: Basically, new strategies and business models must be developed in all companies, and these strategies and models must include a definition of their own innovation strategies. New innovation processes and innovative corporate cultures are necessary. Very important determinants are own identification with the company, creativity and innovative ability as well as qualified know-how-intensive products and manufacturing processes. Let me give you an innovative example of a component production using 3D printing. 3D printing offers designers promising opportunities for lightweight construction. Manufacturing "on demand" is also possible. No stock keeping is necessary and changes at short notice are possible.

However, no company can be competitive in every respect. Even in an area of protected competitiveness there are zones where they are not competitive or living in a vulnerable position. Therefore, focused differentiation is important. It offers decisive advantages in a newly developing economic world, especially in comparison to low-wage countries. We at SEVIX effectively help you to build up a technology and innovation management through appropriate methods and our experience knowledge. 

SEViX: Which other characteristics and competencies are relevant for a successful and innovative company in competition during and after the crisis?

Dr Forster: This is a new entrepreneurial profile that requires strategic competence and anticipatory skills in order to overcome crises and manage uncertainties that lie in the short- to long-term future. Only with these competencies, acceptance, assessment and calculability of risks will become possible. In the future, the right entrepreneurial personalities will become a differentiation aspect and a competitive advantage in competition. Only the right strategic orientation will be able to identify crises and opportunities at an early stage and implement solutions successfully. Only successful companies have decisive competitive advantages and ensure innovative corporate cultures that enable the successful implementation of innovation strategies.

SEViX: I'm afraid this is all we have time for today. Thank you, Dr Forster and Prof-Dr Schmidt-Bischoffshausen, for taking your time to speak with us on the subject of "Crisis management through innovation strategies and the promotion of technologies". If you like to learn more about the SEViX core business area "Business Transformation" and other current topics in business and management, please visit https://sevix-group.com .

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• Strategy and organizational development
• Increase in company value

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