A cost-cutting initiative within your innovation agenda needs to be run as a strategic initiative with the same board sponsorship, direction and accountability as any other critical initiative. It is important to ensure central governance, senior management agreement and employees’ engagement.
When introducing a cost-cutting strategy in your innovation agenda, you should first have a clear view of your company’s strategy and map out good and bad costs for programme intervention, at macro and micro levels. Both macro- and micro-level-oriented strategies have value and they often make more sense combined.
In partnership with the UK’s Department for International Development (DFID), Unilever is expanding its commitment to support social enterprises through the joint initiative TRANSFORM. To invite ideas and collaboration to further catalyse impact, they have chosen Exago’s open innovation software.
To introduce a cost-cutting strategy in your innovation management initiative and ensure that your business remains relevant and able to maximise its potential under less favourable circumstances, five major steps should be taken.
In our economic environment, connecting innovation and strategic cost-cutting becomes relevant for all companies, both incumbent and challengers.