Gudjon’s Blog

Rising oil prices, recession, the mortgage crisis, the credit crunch, inflation, falling stock markets, lower tax collections, any business or industry in today’s globalized world really can’t avoid being part of it all. Take for instance the banking system. A healthy banking system is a crucial part of our economy’s infrastructure. It’s a kind of like the first layers in Maslow’s hierarchy of needs, but seen from the enterprise perspective.

While there are certainly major downsides to the current economic situation, it can have some positive angles to it. Let’s face it. People were becoming a bit too satisfied– even lazy, taking more the easy way, like focusing primarily on short-term financial returns through acquisitions and leveraged buy-outs rather than spending on true innovation and core product development. With all that cash floating around, it was easy to just go with the flow, take the easiest route and think short-term.

Now that the credit crunch has hit, people have once again started thinking about getting the most bang for their buck, about the need to think of long-term profitability and bring into play a true yin and yang of discipline and imagination.

Crisis — As the Mother of Innovation

That is why I say the credit crunch can be good for innovation. Let’s look at a few examples:

• Instead of rushing out onto the job market to make a quick buck, more and more young people are deciding to stay in school to educate themselves further while riding out the economic downturn. We will no doubt see an increase in the number of research projects bringing us new ideas for business development.
• The growth of the banking sector has undeniably caused somewhat of a brain drain. In the current banking crisis, the best and the brightest will no longer automatically follow the easy money to a job in banking, but will be open to exciting possibilities in other industries, thus giving innovative companies increased access to talent.
• During an economic boom, many companies and consumers will chose the most obvious option, without regard for cost or long-term viability. It is easiest to go with something you know, so when money isn’t a big consideration, lesser known, but highly innovative solutions may not get as much attention. Once money becomes tight, businesses and consumers become more cost conscious and focused on long-term benefits. This fuels innovation, idea development and a focus on fulfilling customer needs as efficiently as possible.

Entrepreneurial thinking is especially important for our society. Innovative companies play a crucial role in getting us out of the current malaise. The way to forge ahead and spur the economy back into high growth is value creation through innovation.

What defines entrepreneurism?

In its core I’d say primarily long-term committed.

An entrepreneur is willing to take long-term risk and going against the odds with its new innovative venture. Long-term is a dream, vision or a plan that can take 5 to 7 years to realize.

When economy is booming most people are triggered by short-term wins. Even the best entrepreneur can fall in the pitfall of going only for the short-term craze when they are more needed on the innovation front.

The survival of the fittest

New opportunities opens when companies become more price conscious. As budgets are being cut, it will not be enough to be just a Fortune 100 company to win new businesses. Companies have to offer the best quality for the best prices.

This opens up opportunities for Industria, as the company has been true to its core values of innovation, therefore putting us in a good position to use the current economic situation to strengthen and grow the company.

Today Industria is offering a new paradigm change on how products and technologies are being offered within our market segment. What required investments of millions, now only costs a fraction by using our new service model.

I have said it before, Google of television still remains to be found.