Innovation in a Recession

" The country is in recession and economic downturn doesn't mean businesses have to stop innovating in fact."

" Recession could actually help set up some companies for success got aunt Betty is the president and you know site."

" Consulting firm and the author of the silver lining Bruce brown is the chief technology officer for Procter and gambled and and join me right now -- Scott let me start with you -- how does how does this actually happens in -- in -- recession was tightening their belts."

" Let's not Elvis is due to stick to our knitting so to speak why does -- actually help could help him."

" Well -- people certainly have a perspective now that they have a choice either we innovate or we survive. It is -- false choice. Those people who choose only to survive this people who choose not to innovate and are actually sowing the seeds of their own destruction the world changes too fast you've got to think and act differently. The good news of today's tough times though is the scarcity that everyone is feeling. Is actually innovations friend. If you look at why inhibition often is hard for big companies. It's because they've got too much too much money too much time too much patience and so the discipline their feeling is actually in the long run. Really going to help."

" That we'll talk about the company's budget gamble certainly one of the Bruce when I think about. -- and gamble I think about the old true tried and true tied in in products like that that people will buy through recessions through tough times."

" It's not a difficult working at a company like that to say no during these tough times we still have to spend a lot of money on innovations the important isn't."

" Now it's actually it's it's not as hard as you think because innovation is fundamental to our successes of the company Chris. You know we lead our industry and innovation. You know in fact we spend almost two -- and innovation -- closest competitors and more than our top competitors combined. In fact during this last year when things got tough we have maintained. Our our innovation investment in fact if you include things like capital expenditure Chris. We've actually increased our division -- best investment significantly. As we build nineteen new. Manufacturing plants to ensure that we can grow for the future. That's just one measure in terms of how we spend but we also look at how effective revision is Chris. In fact in 2008. We had five of the top ten new product innovations in our industry. In fact in 2001 which was the last time there was a slowdown we have six of the top. And as we look forward to 2010. It looks to be the largest innovation -- for us in the last decade so. In the innovation is fundamental to how we do our business innovation is how we grow. And so we have stayed the course and investing in innovation."

" It's interesting Bruce I was looking at the history of tide and actually Fed -- I was invented in 1933 at the absolute height. Of the Great Depression so even going that far back. Still it innovating Scott you all what companies do you think you know obviously we hear about Procter & Gamble company's UC right now they're doing the job and and -- emerge from this downturn."

" As an accidental. I think certainly there's a lot to like about what Procter & Gamble is doing and I think."

" The thing that is so powerful about it is it isn't about a single product it is in about a single idea."

" It's about treating innovation as a discipline so you can have a portfolio different ideas that can drive it forward. Another company that I think he's doing a great job as Amazon. Really trying to think about how it can create new markets new business models new ways of making money and serving different customers. I've been a big fan of the Kindle since it launched just got slightly -- yeah that's right. And this morning actually downloaded a very fine book the silver mining look at that -- out -- about ninety seconds nine seconds to download the whole book after -- up pop up book is interesting -- I thought that it is a real those are real -- that it. But this is the thing that's so great about what -- what Amazon is done with the candle. The product is a good solid product but he has built a business model that makes it so easy to get content."

" And because of that even in the face of -- downturn people are willing to spend -- And escape happens throughout history. No matter how tough the times innovation is possible."

" So people like Amazon people like P&G and others are showing the way and will lead us out of this downturn."

" Scott Bruce -- thank you so much for your insight you certainly do appreciate and don't forget you get Scott's book the silver lining at bookstores everywhere. Or on your Kindle that -- got that child."