Managing Cash Flow through Innovation

Managing cash flow may mean learning how to make products or deliver services in new and better ways - especially improving on the position of the competition.

Innovation in business is a more profitable long-term than cost cutting, according to a 16 year study from Bain and Company. The findings are in "Managment Tools and Trends 2009" by Darrell Rigby and co-author Barbara Bioldeau.

The findings stated:

• Innovation continues to be very important yet tough

• 8 of 10 executives agree that "innovation is more important than cost reduction for long-term success'

• 6 of 10 believe they could dramatically boost innovation by collaborating with other companies and half say their entire organization is actively engaged in improving innovation

Another topic of interest was "our company will use this recession to improve our competitive position" 75% agreed while 9% disagreed.

The study was linked to on the Web site Strategyplus.org under "What's New: Management Tools and Trends 2009."

Another post worth reading is this one from June 2009 titled "Cash Flow in Recession" highlighting James Ellis, dean of the Marshall School of Business. He lauded innovation as a way of moving out of recession.