Innovation in a

competitive World
Luis A. Márquez Heine
Staying in the game

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The Age of Business Model Innovations

“… Business as usual ….. Not any longer

• 20 years ago

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The Age of New Business Models

• Business Model Innovators are more profitable tan

producto innovators
• 14 of 25 most profitable companies are business
model innovators
• Driver for succesful sutainability
• 60% of companies increased profits

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The Age of Business Model Innovations

Is a specific instrument of
entreprenuership. A new capacity to create
wealth and impact

Innovation almost never fails due to lack of creativity

it´s always for lack of discipline.

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Industrias
Kay

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Profit

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Profit

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Network

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Structure

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Product Performance

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Customer Service

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Service

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8
Players
• Romeo & Juliet (1591-1595)The plot is based on an Italian tale, translated into verse
as The Tragical History of Romeus and Juliet by Arthur Brooke in 1562 and retold in
prose in Palace of Pleasure by William Painter in 1567. Shakespeare borrowed heavily
from both.

• Hamlet (1599-1602)Amleth(Latinized Amlethus, Old Icelandic Amlóði) is a figure in a

medieval Scandinavian legend, the direct predecessor of the character of Prince
Hamlet, the hero of William Shakespeare's tragedy Hamlet, Prince of Denmark.

• Macbeth (1599 –1606)Holinshed's Chronicles, also known as Holinsheds Chronicles

of England, Scotland, and Ireland, is a collaborative work published in several volumes
and two editions, the first in 1577, and the second in 1587. It was a large,
comprehensive description of the British history.

• King Lear (1603 –1606)Shakespeare's play is based on various accounts of the semi-
legendary Brythonic figure Leir of Britain. Shakespeare's most important source is
probably the second edition of The Chronicles of England, Scotlande, and Irelande by
Raphael Holinshed, published in 1587. Holinshed himself found the story in the earlier
Historia Regum BritanniaebyGeoffrey of Monmouth, that was written in the 12th
century.
Steal Like an Artist
Garbage IN,

Garbage Out.

The artist is a collector, a selective collector. Your are good as

the stuff that surrounds you
“Steal from anywhere that resonates with inspiration of fuels your imagination.
Devour old films, new films, music, books, paintings, poems, dreams, random
conversations, bridges, street signs, trees, clouds, light and shadows. Select only
things to steal from that speak directly to your soul. If you do this, your work (and
theft) will be authentic.”

Jim Jarmusch
Good Theft Bad Theft
Honor Degrade
Study Skim
Steal From Many Steal From One
Credit Plagiarize
Transform Imitate
Remix Rip Off
Idea
Value What is your definition of “innovation”: Turning an idea
into a solution that adds value from a customer’s
Solution perspective

Relevance
What is your definition of “innovation”: The application
of ideas that are novel and useful. Creativity, the ability to
generate novel and useful ideas, is the seed of innovation
but unless it’s applied and scaled it’s still just an idea.

What is your definition of “innovation”? Very simply

put, innovation is about staying relevant
Process
Execution
Perception
What is your definition of “innovation”? I define the
innovation process as a great idea, executed brilliantly,
and communicated in a way that is both intuitive and fully
New celebrates the magic of the initial concept.

What is your definition of “innovation”? An innovation

is a feasible relevant offering such as a product, service,
process or experience with a viable business model that is
perceived as new and is adopted by customers.

What is your definition of “innovation”? the

introduction of new products and services that add value
to the organization.
 What is your definition of “innovation”? Not an easy
answer: Innovation needs to be defined and agreed upon
in each organization, making sure it is strategically and
everybody is aligned

What is your definition of “innovation”? the

fundamental way the company brings constant value to
Alignment their customers business or life and consequently their
shareholders and stakeholders.

Strategy
Product innovation: A good or service that is new or significantly improved.
This includes significant improvements in technical specifications, components
and materials, software in the product, user friendliness or other functional
characteristics.

Process innovation: A new or significantly improved production or delivery

method. This includes significant changes in techniques, equipment and/or
software.

Marketing innovation: A new marketing method involving significant changes

in product design or packaging, product placement, product promotion or
pricing.

Organizational innovation: A new organizational method in business

practices, workplace organization or external relations

2005 Oslo Manual

Knowledge Innovation has also been described as a
Consequences process of combining old and new
knowledge

New knowledge gets at the requirement

of novelty and old knowledge gets at a
potential means of determining value

This causes a natural tension because the

actors must bring sources of novelty (new
knowledge) while using old knowledge to
asses the value and most importantly it´s
consequences
Novelty
Value
Cycle Novelty is a reminder that not everything
new is of value and confirmation is a
reminder that not everything old is bad

For an individual then innovation is a

cycle that requires both a capability to
develop novel courses of action and a
capability to determine their value.
Capacities
Artifacts
Ability The performance of innovation is
linked and constrained by:
Actors 1. the capacities of the artifacts
2. the ability of the actors to create
and use artifacts to drive this
cycle.

The challenge: not all sources of novelty

lead to innovation, so the value of those
sources must be determined
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The Innovation Challenge
Find the sweet spot where identified consequences help an entity
determine:

• what knowledge to transform and,

• what to keep the same to develop the next course of action

Infrastructure for innovation

Infrastructure is made up of two things: artifacts and actors
Lack of infrastructure limits capacities
and abilities
= Lack Potential for Innovation

infrastructure’s capability for innovation is

determined by the capacity of the artifacts and the
abilities of actors to develop and use artifacts to
drive the innovation cycle
Actors
Artifacts
Distributive
the infrastructure for innovation concept
emphasizes the relational performance of
structure as both social (actors) and
technical (artifacts) and how it is
inherently distributed.

connotes how structure can be become

taken for granted until breakdowns in
performance reveal specific parts of it.
Innovation is:

Conceptual and perceptual

The creation of a new

viable Business
offering
 Innovation is a specific instrument of
entrepreneurship.

A new capacity to create wealth and impact

if we look more closely actors put some artifacts into use in an activity in a new
way and based on the consequences observed they intentionally transform
some artifacts to improve performance in the next cycle
1. How can we beat our most powerful competitors?
2. What products should we develop? Which improvements over previous products will customers
reward with premium prices and which will they greet with indifference?
3. Which initial customers will constitute the most viable foundation upon which to build a successful
business?
4. Which activities required to design, produce, sell and distribute our product should our company do
internally and which should we rely upon our partners and suppliers provide?
5. How can we be sure that we maintain strong competitive advantages that yield attractive profits?
How can we tell when commoditization is going to occur, and what can we do to keep earning
attractive returns?
6. What is the best organizational structure for this venture? What organizational units and which
managers should contribute to and be responsible for its success?
7. How do we get the details of a winning strategy right? When is flexibility important and when will
flexibility cause us to fail?
8. Whose investment capital will help us succeed and whose capital might be the kiss of death? What
sources of money will help us most at different stages of our development?
9. What role should the CEO play in sustaining the growth of the business? When should CEO´s keep
their hands off new business and when should they become involved?
Types of Innovation
Lean Method & Business Model Canvas

Outcome-Driven Innovation ODI

The Innovator´s Solution

5 Core Methods of Innovation

Open Innovation / Open Business Models

Purposeful Innovation/ Source Innovative Opportunity

10 Types of Innovation
ODI
Innovation is the process of creating a product or service
solution that delivers significant new customer value

Practical terms, is the process of figuring out “what customers

want”

Process begins:

1. Selection of Customer
2. Identification & Priotization of Opportunities
3. Ends with the creation of an innovative product concept
4. Delivers the new and significant value
ODI

1. Customers buy products and services to help them get Jobs done

2. Customers use a set of metrics to judge how a job is getting doneand

how a product performs

3. These customer metrics make posible this systemic and

predictable creation of breaktrhough products and services
2019 TECH
TRENDS
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What are the skills for innovators:
1. Critical Thinking and problem solving
2. Collaboration across networks and leading by influence
3. Agility and Adaptability
4. Initiative and Entreprenuership
5. Accesing and Analyzing information
6. Effective oral and written communication
7. Curiosity & Imagination
Tim Brown, President of IDEO
5 Characteristics of “design thinkers”:
1. Empathy – Imagine the world form different perspectives and having
an attitude that puts people first
2. Integrative thinking – To see all aaspects of the problema and posible
breakthrough solutions
3. Optimism – No matter how challenging the problema, a solution can
be found
4. Experimentalism – Process of trial and error that explores problems
and posible solutions in new and creative ways
Dyer, Gregersen & Christensen discovered 5 skills that
separeate innovative from non innovative:

1. Questionning – Break out status quo

2. Observing – Detect small behavioral details in the
activities of customers, suppliers, and other companies
Doing
3. Experimenting – Relentlessly try on new experiences
and explore the world
4. Networking – individuals of diverse backgrounds, gain
radically different perspectives
5. Association – People get together to cultivate new Thinking
insights
How to Kill Creativity
Teresa Amabile
Capacity of Creativity =
• Expertise . Knowledge, technical, procedural, and intellectual
• Creative thinking skills Determine how flexibly and imaginatively
people approach thier problems. Do thier solutions upend the Creative
status quo? Do they persevere through dry spells? Thinking
• Motivation.
Skills

Expertise Motiviation

Creativity
Innovation