Futurist Jim Carroll had a recent blog posting which outlined some options all businesses are facing in the current economic turmoil. They are freeze, panic or innovate.

The global economic climate is gaining such momentum and the rate of change is happening so fast that many are predicting that 65 per cent of pre-schoolers will work in fields that do not currently exist.

Companies like Minolta figure they have 18 to 24 months to sell a new camera before it becomes obsolete. Video games need to earn their profits within months. How do we keep up?

In an age of such rapid change it’s not the big that will survive, but the fast. Unless your company is constantly looking at new technology, new innovations and more importantly how to remain flexible and fast enough to incorporate these changes into your business you will soon find yourself on the sidelines.

The first two options will most likely result in predictable results. So the message is innovate.

According to Carroll, a key area of innovation in slow times is to solidify existing relationships by solving customer/client problems before they know they have them.

Think about these issues, and innovate from them in terms of what you do with your customers or clients:

u when times get tough, quality, service and relationships rule – operational excellence is more important than ever.

u focus on a new partnership with the customer, for example: “we’ve got the latest strategies to help achieve cost savings.”

u stay ahead of fast-paced change that you can utilize for the customer – with the attitude being, “we’re on top of fast paced developments that impact you, so you don’t need to be.”

u make sure your customer understands that you are ahead of the pack in solving their problems.

Staying in front of the trends, and solving your customer’s problems faster, will be a key method of providing for retention, which is going to prove to be critical during the correction. It’s a critical innovation strategy right now.

Innovation is fundamentally problem solving. And problem solving starts with clearly articulating what the problem is. Most of us start by trying to come up with the solution without knowing exactly what the problem is.

Create an innovation culture in your organization. At your next staff meeting develop a list of current problems. At the following meeting go around the table, or across the table if there are only two of you, and see what ideas come forth. Don’t limit your imagination.

Innovation can and should be done not only on your business, but in your business. This means you need to look at how your business operates as well as your products or services you provide.

Does your company get the most out of it’s employees? How do you measure your employee’s productivity?

In the old days this meant you were at the office from 9-5. With the younger generation this simply doesn’t work. Does your organization utilize the latest technology to ensure your are up to date and operating at peak efficiency?

Some of the new Internet technology innovators are turning to design schools rather that business schools to help them break into the market.

The thinking is that the business school will have a very predictable approach by looking at the size of the market and using financial analysis to come up with a solution.

By contrast the design school, made up of a mix of students, professors and industry experts, started at the other end – the consumer. By using ethnography they were able to come up with multiple solutions.

Carroll says: “The key today is velocity: business is impacted by rapid consumer change, product change, business model change, cost challenges, market change. The phrase I’ve been using for years is ‘volatility is the new normal.’ Realize that, and build your innovation strategy around that, and you’ll be set for the types of challenges that will come your way.”

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For assistance with your entrepreneurial ideas, or to find out more, e-mail nielsgram@telus.net or visit his blog at www.nielsgram.wordpress.com.