Innovation, when it seeks to increase competitive potential, uses its own Value Chain: Observe the environment, to discover new opportunities in advance, choose those that are, or may be soon, within our reach, and direct our efforts towards concrete solutions, derived of acquired vision.
Technomania, Organnovation… and other more critical factors: People and Observation of the Environment.
"If you don't know where you are going, it doesn't matter which way you choose" (Chinese Proverb)
Fire, the first technological advance in history, was installed with such intensity in the human subconscious that, possibly, since then it has been conditioning our reflections regarding our potential capacity, oriented towards the progress of our civilization.
The industrial revolution, much later, further increased our human pride, from a greater knowledge of all the factors of transformation of the environment. As a consequence, we were able to discover both material (technology) and intangible (methodology) resources that, increasingly adequately combined, allowed us to develop techniques and procedures that paved the way for a culture based on organizational efficiency, oriented towards production.
Nowadays, well into the information age, and the knowledge age increasingly solidly installed, it nevertheless seems as if the human spirit has been unable to overcome the "success syndrome". Proud of its achievements, as spectacular as the arrival to the Moon (still questioned), or of unimaginable advances in the domains of telecommunications, biotechnology, medicine, energy, etc., the human race persists in its vision, reveling in efficiency, sometimes over purpose. It reminds me, a bit, of "the cart and the oxen."
Invention and Innovation
At this point in the film "The Innovation", we are all convinced that only a vision can guide the inventor, or the innovator… which, however, are not the same.
Leonardo Da Vinci, paradigm of the inventor, could not however be as innovative as he would have liked. Obviously, he must have had very clear visions, but his inventions failed to awaken (much less connect with) felt needs, and valued as priorities. Many of your contributions were way ahead of actual application opportunities. His enormous contribution was inspiring others to continue researching, and eventually manufacturing solutions.
In my opinion, invention becomes innovation when it is oriented towards a specific purpose: the opportunity to create, or radically transform, solutions to new, or current, real needs.
In the competitive context, moreover, it is necessary that these needs become sufficiently perceived and valued, and their solutions adequately rewarded.
And I think that something else is still missing: anticipation in identifying the opportunity.
I deeply admire, as a truly innovative person, Akio Morita, co-founder of SONY, and his contribution to the leisure of many citizens who enjoy music, freely chosen, making travel, sports, etc. more useful and happy.
The Walkman, an indisputable radical innovation, was imagined by Morita, from her own need, and the observation of the environment. As they say, he used to jog, alone, and thought it would be much more entertaining if he could listen to music. On his trips to New York, he had seen some African Americans in Harlem carrying heavy radios. It did not seem an acceptable solution…
He asked his engineers to build a prototype, exclusively geared towards cassette playback and portability. He also asked the sellers to probe the distributors' opinion, which was resounding: They didn't see much of a future for a device without recording capabilities.
However, guided by his vision, and as he did not require large investments or deadlines in research and technological development, he went ahead. He sent samples of the first series manufactured to all opinion leaders with prescribing capacity: artists, athletes, announcers, journalists, etc. … And it was a success. SONY monopolized this new segment, which they themselves had created, because it was anticipated. The reactions of PANASONIC, and other competitors, failed to prevent the Walkman from becoming a popular name for the new product category.
Unlike this story, MP3 has been more of an invention, or incremental innovation, that has not provided any manufacturer with clear competitive advantages. Of course, increasing storage capacity, reducing weight, and incorporating recording, has provided an improved, more efficient solution… for the same need for autonomy and personal mobility.
Technomania, Organnovation
The rapid development, and integration, of technologies derived from electronics, such as telecommunications, computing, and audiovisuals, have produced advances, in many cases unimaginable a few years ago.
However, we can reasonably ask ourselves if the hundreds of millions of mobile phone users really take advantage of more than 15% of all the benefits offered by the potential of their respective terminals. This, a priori, great productive waste, has its origin in consumerism derived from the prevailing “techno-mania”.
Personally, I consider Technomania as the obsessive vision of a society that sustains its progress, in a one-dimensional way, in technological development. However, apart from its contribution to the deterioration of the planet (although also, to a lesser extent, to its preservation), it has developed a strong association of technology as a great catalyst paradigm of competitiveness.
Nothing is further from my intention, from my science-based training, than anathematizing technology. (In fact, I even assume my status as a geek, or, as I prefer to translate, “technological hypochondriac”, in my professional… and private life)
But let's keep taking a look at the competitive environment for mobile telecommunications solutions. We will verify that, although initially the technology, due to its acceleration, aimed to be the permanent driver of the development of the market, the current leader develops its competitive advantage through an exemplary and precise categorization of solutions, focused on segments, and even emerging niches… even incipient.
For its part, the proven success of the contribution of Quality, through the development of a culture of efficiency, has made us conceive a social future of continuous progress. In the productive sphere, and in the provision of services, this has been translated, until now, into the systematic application of process rationalization… generally from the perspective of value analysis. (I don't know why they call “value” what they might call “cost”. The true value is measured at the end of the chain, by the price that the market accepts)
Organnovation (do not look for it in the dictionary), or the tendency to achieve Innovation oriented preferably from the Organization factor has undoubtedly contributed cases of competitive success. However, on many occasions, it was more about ephemeral advantages, associated with Continuous Improvement, than authentic competitive innovations.
Only by implementing modifications in the business's own value chain, or new business models, which provide, as a final result, differential added value, rewarded by the market, are lasting advantages obtained over time.
Achieving the most avant-garde Technology, such as the most advanced Organization, is a matter of capital, but with a short time frame. However, anticipation, derived from observation and inspiration, cannot be acquired without proper tools.
People
It is a real plagiarism, at this point, to say that "Innovation is People".
First, because "Change is People" is the title of a book by Professor Juan José Goñi, (a former colleague, in my first professional walks, and a cultural co-religionist, always) whose brilliant contribution, to our common contemporary environment, I sincerely admire.
And also, last, but not the least, because that is what he preaches, with enthusiasm and with every right, by his own and successful experience, Txomin García, charismatic leader of the ULMA GROUP, whom I have had the pleasure, on several occasions, of enjoy "live", relating his pragmatic vision, already applied, of Innovation.
I subscribe without reservation to both speeches, both because of the clairvoyant coincidence in the fundamentals of the human contribution, in attitude and aptitude, as well as the indispensable contribution of creativity, which only people can incorporate, unlike other factors of Innovation.
In order to be persistent in effort and time, this human contribution needs to be guided, in all people, by a concrete, consistent and common vision, which must connect with the identification of a viable opportunity: within reach, easy or expensive., but real, of our Company or Institution.
And, furthermore, I would like to underline, emphasizing it, a factor that both speeches agree to mention, as a requirement of successful innovation: Anticipation… in a competitive key… it could not be otherwise.
But can Innovation be organized, as one more System, within Management? I am not an expert in the discipline of business organization, and therefore, I refrain from public opinion. I suspect that not, at least in the classic way, structured in planned processes, because it depends on Inspiration… who sits at the table when it feels like it.
We all agree, however, it is that Innovation is a cultural issue, which can be promoted. Generally, the best way to promote this culture internally (there is no other way) is to demonstrate that, once applied, it is successful for the competitive… and economic development of the business project. Even more so, if it turns out to be a "lifeline."
But, since we cannot ensure Innovation (as, on the contrary, it is feasible with Quality)… let us at least try to ensure the raw material, to be able to ignite the Inspiration boiler. And it is none other than the Opportunity of anticipated differential positioning.
Observation of the Environment
Throughout the ages, man has observed the environment, initially to defend himself against threats, in a hostile environment. At first, the procedures were very reactive: you watched from the highest point, so that you could see how danger was approaching, before it was inevitable, and invincible.
After going through other rudimentary techniques, such as the towers in the mountains, where bonfires were lit to transmit the warnings, which provided greater anticipation, the man decided to take action: not only to react reactively, to survive… but to explore proactively, to conquer, before the others.
In this long journey, surprise has always been a key factor for success. Obviously, those who had better weapons and more army, became the dominant civilization. This, in addition, "convinced" the conquered peoples, imposing their increasingly efficient organization of the society of their time.
But, after its fall, the hegemony of the next civilization lasted always less than the previous one: The learning of combat technology, the exploitation of natural and biological resources, etc. it was getting faster and faster.
Today, we have reached a global society in which, in addition to accelerating development… the news of progress, and therefore its learning, spreads immediately. That is very positive, but there are economic resources, excessively concentrated, eager for profitability, that do not always think of sustainable development, socialized, altruistically.
It is therefore essential to equip oneself with efficient, systematic observation tools that can observe what, hidden or difficult to access by our own means, could be known in a precise and contrasted way. It is fundamentally a matter of identifying, monitoring, and measuring the evolution of the influence of changes in the environment, which, beyond our control, could become critical factors of threat or opportunity. And, in addition and above all, to do it continuously and in advance.
Therefore, beyond Surveillance, Technology, Market, etc… it is necessary to focus this Observation, in our competitive environment, with a comprehensive mindset, on all agents, and, especially, on all critical factors, which are different for each sector… sometimes, even for each company. This personalized system will allow us to guide our innovation in a strategic key, selecting a sustainable competitive position in a segment, or niche, of incipient or emerging opportunity
Epilogue for Readers in a Hurry
Technology and Organization are undeniable competitive factors, which have demonstrated their efficient contribution to Continuous Improvement, but the derived innovation generates advantages of shorter temporal scope, in a globalized world.
Anticipation, based on Observation, can guide radical innovations, which, with greater probability, can provide more lasting competitive advantages.
For this, the Observation must be based on personalized systems, focused on the identification, monitoring and measurement of changes in the competitive environment, which can offer incipient opportunities, through anticipated positioning in high potential segments or niches, willing to reward innovation.
The Vision, guide to Innovation, and resulting from Inspiration applied to Observation, must be precisely defined, in terms of modifications in stages of the business value chain, or of a new business model.
Only in this way can we align all factors, guiding people, knowledge of the environment, available technology, and the organization of processes, towards competitive objectives.
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