Crisis vs innovative initiatives

Crisis vs innovative initiatives

In these turbulent economic times, it is not easy to gamble or start an activity without approximating, as closely as possible, the risk we may face. However, matching the risk we face is a difficult task in socially stochastic processes.

While it is true that a significant component of risk could be defined as extrinsic risk factors, i.e. elements that are not essential or genuine, it is also true that intrinsic factors play a positive role in making a project as risk-free as possible.

In the current economic situation, the extrinsic risk is common and detected, but it has not yet been sized; typical scenarios of crisis situations. However, it is in the intrinsic spheres of action where society can and must act by taking advantage of innovation as a differentiating element.

Although innovation has been understood to be applied to specific products and services, it can also be used to processes, with a direct connection to the growth of the commercial margin of any organisation[1]. Within process innovation and as a facilitator of business activity, it is corporate entrepreneurship that in some way participates in direct organisational innovation. Understood as the process in which company teams conceive, encourage, promote and manage new businesses which, despite being different from those of the parent company, are supported by the assets, market position, capabilities and other resources of the latter; it is, without doubt, a possible response to turbulent times that require rapid adaptation to social changes.

According to the II Report on Corporate Entrepreneurship in Spain[2] it is a “relatively recent phenomenon, although it is growing rapidly”. Another of the conclusions highlighted is that “the majority of organisations see corporate entrepreneurship as a way to introduce improvements in existing business models and processes or to improve the functioning of personnel structures”.

From an economic point of view, the concept in question would be a direct application of the so-called learning economies, derived from the knowledge accumulated through experience. This leads to specialisation in a specific field on the part of the staff, in this case, the training of intrapreneurs, which will continuously seek to improve efficiency.

[1] It is important to note that no reference is made to research and development. Concepts that, by definition, precede innovation and, due to their study nature, are not so close to business reality in a direct way.

[2] Promoted by Santander Universities, CISE, Deusto Business School, Universidad Autónoma de Madrid and Universidad Pontificia de Comillas.

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