Fund the future: Innovate!

0 Submitted by on Tue, 19 May 2009, 10:06

A recent article by the CEO of Xerox, Anne Mulcahy, published in this month’s Fortune magazine, warns companies against making cuts in innovation during the economic downturn.

She believes that the business that do survive the current recession will be those that didn’t mortgage their future. Companies must continue to invest in R&D, new businesses and even disruptive innovation in work processes in order to stay ahead of the game.

“If you fail to fund the future, all you’ll be left with is a really lean company trying to churn old ideas into new business.”

She highlights the case of Xerox’s own financial struggle several years ago, when she was told to cut R&D spending.

“To me, Xerox innovation was sacred. Why avoid financial bankruptcy only to face technological bankruptcy down the road?”

And she was right…

Despite the economic downturn, Xerox continues to be the main player in the industry. And now that so many customers are looking for ways to save money, thanks to the company’s innovative entrepreneurial team, they are able to come up with solutions to save customers up to 30% in costs.

“These days we’re inviting more and more of our customers into our labs to help us see if our research is on the right track… We know some clients are just not in a position to spend today, but we’re using this time to get them thinking about what’s to come and to keep our innovation investments aligned with the emerging trends in their marketplace.”

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