Category: #industrialinnovation

Funding innovation

Posted on by Mariona Luis Tomás

Innovating is essential to maintaining any organization’s time competitiveness, but funding is often needed to bring ideas to reality. Below are the most common ways to finance innovation projects.

Internal budget:
Allocating a specific budget for innovation is key. This funding is usually used for R+D+i projects, adoption of new technologies, enhancement of the entity’s innovation ecosystem and talent development, among other innovation activities.

Private grants:
Research potential donors, review grant guidelines and criteria, and develop a personalized proposal. Remember to include letters of support and follow compliance requirements.

Government incentives:
Take advantage of tax credits for R+D+i, grants for innovation and specific programs for small businesses and sustainable projects. Innovation policy is consolidated at European, national and regional level.

Private investors:
Angel investors and venture capital provide financing in exchange for equity. Angels are usually individuals who invest in early stages, while venture capital comes from investors looking for high returns on high-risk projects.

Crowdfunding:
Use crowdfunding platforms to raise small amounts from many investors. Create an engaging campaign, promote it and keep your backers informed.

Corporate Partners:
Strategic alliances, joint ventures, corporate incubators and technology licensing agreements can provide resources and access to new markets.

With a combination of these sources, your organization can secure the funds needed to fund initiatives that deliver customer value.

Defining an innovation strategy for an organization

Posted on by Mariona Luis Tomás

When we talk about innovation, we think about improving and creating new things. But how do we do this within an organization? Here is a step-by-step guide.

  1. Internal evaluation
    Let’s start by looking inside the organization. We collect data, talk to employees, review processes and analyze past initiatives. This gives us a clear picture of what we have and how we use it.
  2. External evaluation
    Then, we observe the environment. We analyze market trends, identify competitors and see new technologies. This helps us understand external opportunities and threats.
  3. Create a vision
    With all the information, we define a clear and inspiring vision for innovation. It must be aligned with the values ​​of the organization and aspire to a better future.
  4. Define objectives
    We set specific, measurable, achievable, relevant and time-bound (SMART) goals. For example, we might consider launching three new products in one year.
  5. Generate and select ideas
    We brainstorm ideas and select the most promising ones. The ideas must be viable, have market potential and be aligned with the objectives.
  6. The innovation map
    We develop a detailed plan that includes the goals, prioritized ideas and how we will measure success with KPI’s. This plan must be flexible to adapt to changes and allow for continuous improvement.

With these steps, an organization can build a strong innovation strategy, ready to face the challenges of the future and take advantage of opportunities to grow and differentiate.

Some theories about Innovation that I frequently use

Posted on by Mariona Luis Tomás

I write here some references to theories about Innovation that seem relevant to me, not for historical reasons, but because I use each of these theories depending on the context in which I find myself, and all of them are current and make sense to me.

  • Schumpeter’s theory of innovation: Economist Joseph Schumpeter proposed the concept of “creative destruction”, where innovation, particularly in the form of entrepreneurial activities, drives economic growth by replacing old industries and technologies with new ones. He highlighted the role of entrepreneurs as key drivers of innovation.
  • Diffusion of innovations theory: developed by Everett Rogers, this theory explores how innovations spread through society. It classifies individuals into groups based on their willingness to adopt new innovations, including innovators, early adopters, early majority, late majority, and laggards.
  • Open innovation: Coined by Henry Chesbrough, this theory challenges the traditional model of closed innovation by emphasizing the importance of collaboration and knowledge sharing with external partners, such as customers, suppliers and research institutions, to drive innovation.
  • Resource-based view (RBV): This theory, often applied in the context of business and strategy, suggests that a company’s unique resources and capabilities are essential for sustained competitive advantage and innovation. Innovations arise from the effective use of internal resources.

Innovation types and their relevance in determined industries

Posted on by Mariona Luis Tomás

Though Oslo Manual only identifies four types of innovation (product, process, organization and commercialization) here are several types of innovation, each with its relevance to various industries. Understanding these types of innovation can help organizations identify opportunities to drive change and stay competitive.

Here are some key types of innovation and their relevance to different industries:
– Product innovation involves developing new or improved products or services. It’s highly relevant to industries such as technology, consumer electronics, pharmaceuticals, and consumer goods. For example, companies like Apple continuously introduce new versions of their smartphones and laptops, showcasing product innovation.
– Process innovation focuses on improving internal processes and operations. It’s crucial in manufacturing, logistics, and industries where efficiency and cost reduction are paramount. Automotive manufacturers, for instance, have implemented robotic automation and lean manufacturing techniques for process innovation.
– Service innovation pertains to creating new or improved services and customer experiences. It’s significant in sectors like hospitality, healthcare, and financial services. Companies like Airbnb disrupted the hospitality industry by introducing a new platform for travelers to find unique accommodations, showcasing service innovation.
– Business model innovation involves rethinking how a company creates, delivers, and captures value. It’s critical in industries facing disruption or seeking new revenue streams. Netflix transformed the entertainment industry with its subscription-based streaming model, an example of business model innovation.
– Marketing innovation focuses on how products or services are promoted and delivered to customers. It’s vital in the advertising, media, and retail sectors. Social media platforms like Facebook and Instagram have introduced innovative advertising and targeting techniques, driving marketing innovation.
– Organizational innovation relates to changes in an organization’s structure, culture, or management practices. It’s relevant in all industries but particularly critical in traditional or bureaucratic organizations looking to foster agility and adaptability. Startups often embrace flat hierarchies and flexible work cultures as forms of organizational innovation.
– Technological innovation involves the development of new technologies or the application of existing ones in novel ways. It’s highly relevant in industries like information technology, healthcare, and energy. Tesla’s advancements in electric vehicle technology are a prime example of technological innovation within the automotive industry.
– Social innovation addresses societal challenges and seeks to improve the well-being of communities and individuals. It’s important in nonprofit organizations, public sector initiatives, and socially responsible businesses. Microfinance institutions that provide financial services to underserved populations represent a form of social innovation.
– Sustainability innovation focuses on reducing environmental impacts and promoting sustainable practices. It’s crucial in industries with significant environmental footprints, such as agriculture, energy, and construction. Companies in the renewable energy sector, like solar and wind power providers, exemplify sustainability innovation.
– Cultural innovation involves the creation of new cultural norms, trends, and expressions. It’s relevant in creative industries like fashion, entertainment, and art. Designers and artists who introduce new styles and trends contribute to cultural innovation.

Understanding these types of innovation and their relevance to different industries helps organizations tailor their innovation strategies to align with their specific goals and challenges. Successful innovation often involves a combination of these types to address various aspects of a business or industry.

Innovation: New ways to provide value to customers

Posted on by Mariona Luis Tomás

The challenge of defining innovation is a problem that often comes up and that I like to revisit from time to time since, how could I support my clients effectively if we have different ideas about what innovation is?

I try to answer this question by sharing a common vision of what innovation is and what it is not before starting to work on it, this way my clients and collaborators and I can move in the same direction and use the same parameters to work.

Some “classic” definitions (the most used, the most referenced) of the term “Innovation” could be the following:

Innovation is the “Systematic use, as an opportunity, of changes in society, the economy, demographics and technology.” (Peter F. Drucker, 1985)

Innovation is a “New, or significantly improved, product (good or service), process, marketing method, or organizational method, in the company’s internal practices, workplace organization, or external relations.” (Oslo Manual, reference publication on Innovation of the OECD and the European Union, 2005)

Innovation is the “Activity whose result is the obtaining of new products or processes, or substantially significant improvements to existing ones.” (UNE 166000 Standard, “Terminology and definitions of R&D&I activities”)

Innovation is “New ways of offering value to the customer” (O’Hare, 1988)

Innovation is “creation or modification of a product, and its introduction into a market.” (Real academy of the Spanish language)

If we look at these definitions of innovation, we can see that they all have the following parameters in common:

The sense of newness. An innovation implies some new way of doing things, there is a sense of something new in the concept.

The process vision. It is not a moment of inspiration, a brilliant idea, but a systematic approach to identifying and implementing ideas.

Orientation towards marketing. If the market does not buy, we are not innovating. There has to be someone willing to “pay” for this new way of doing things.

The simplest definition that we have seen that fits with the practical and results-oriented approach is: Innovation is New Ways of Systematically Delivering Value to the Customer. This definition brings together the sense of novelty (new forms), the process vision (systematically offering) and the marketing orientation (customer value).

Some more nuances, to be oriented:

About what innovation IS:

  • “New” doesn’t mean no one has done it before. If it has not been done before in this context, then it is considered new.
  • It must have the clear purpose of solving a problem, satisfying a need or satisfying a desire.
  • Innovation is in doing, not just in thinking or conceptualization. Simply having the idea does not constitute an innovation.

About what innovation is NOT:

  • Small adjustments and improvements to an existing process are not the same as innovation.
  • Invention, which becomes innovation when it is successfully brought to the market.
  • Technology. Not all innovation involves technology, either as a facilitator or as a result. The use of new technology does not necessarily mean that innovation has occurred.
  • Creativity: Creativity is having a great idea. Innovation is about EXECUTING the idea.

Consulting checks, a good resource for SMEs in the Balearic Islands

Posted on by Mariona Luis Tomás

Until April 22, 2024, IDI aid can be requested in the form of consulting checks. We defined this program as it is now in my time as manager of the IDI, the business innovation institute of the Balearic Islands, and I am glad that it has not only been consolidated, but that it has also been expanded into new check modalities and in the applicants profile.

In my opinion, it is very important that SMEs can incorporate external knowledge in matters in which they cannot be specialists, such as internationalization, digitalization, excellent management or carbon footprint. These checks are a subsidy that finances the payment of specialist consultants to incorporate knowledge about these areas in the organization, depending on the area that interests the organization. The incorporation of knowledge occurs when there is a need to make an action plan, because to make a plan, you need a diagnosis, and as a business person or manager, the diagnosis questions are a good source of knowledge, and the action plan proposal orders and includes initiatives that the person surely had not thought about.

The checks were originally conceived exclusively for industrial IAE companies, and have progressively been expanded to sectors related to the industry.

The amount of the checks subsidizes 90% of the 60 consulting hours contracted in the first year, and 80% in the following two years, which gives scope to industrial companies that want to start a journey in the areas of digitalization, sustainability, management or internationalization to incorporate the knowledge they need.

Hopefully the IDI contribution will help companies improve their capabilities and optimize their investment based on the knowledge acquired.

Ask me if you want to request your check, maybe I can help you.

Thinking about an organization’s strategy starting from its purpose.

Posted on by Mariona Luis Tomás

In recent years, I have participated in defining the strategy of various organizations: an audiovisual cluster, a chemical cluster, a research institute, a public company, different businesses… and recently also an engineering college.

I was thinking about what I could share regarding the definition of the strategy of organizations that do not depend on a single person, the owner, the executive, or the entrepreneur, but rather on a collective.

One of the elements to consider in defining the strategy of these types of organizations is the importance of the narrative: in my view, building a strategy shared by the collective involves carefully listening to the different elements of the collective and putting words to the organization’s song, crafting a story about what the organization is and what it aspires to be, and what its role is towards the collective and society as a whole.

In this same line, once we have the organization’s narrative, its song, it is fundamental to identify its purpose, which is the reason why it must continue operating in its environment, what society and the planet would lose if the organization disappears. The purpose, to me, is more about the organization’s life meaning, it is the organization itself that defines it, and it is not the same as the organization’s mission, which is the meaning given to the organization by the elements that constitute it. In the end, it’s about observing what life gives you to offer what life asks of you, and the purpose would have to do with what life asks of you.

The traditional structure of strategic planning includes an internal analysis (who we are, what we want, with whom we can have it, and how) and an external analysis (political, economic, social, technological, ecological, and legal factors that affect or can affect the organization’s activity, among others). These internal and external analyses are usually summarized in a SWOT diagram (Strengths, Weaknesses, Opportunities, Threats) of the organization, and from there the mission, vision, and objectives of the organization for the next period, usually about 3-4 years, are defined.

In a highly changing environment like the one in which organizations usually operate, one might think that it makes less and less sense to define and specify what the organization will do in the next 3-4 years, since in most sectors the level of change is too high to maintain the same organizational trajectory for so long. In my experience, it makes a lot of sense to do the internal and external analysis and detailed definition of the purpose, mission, vision, objectives, and other elements at least once every 10-12 years because this contributes to creating a narrative about who the organization is and what it wants to do, as a general approach, and to reach consensus among the different agents on this approach.

However, once this is done, it can be observed that the purpose of the organization is practically the only thing that does not change. That is why, as part of the strategy and thinking about shorter-term planning, I like to represent the organization’s business model canvas, how it is now, and the business model canvas of how it can evolve in the next period, to pull it in that direction. With this tool, one can organize and imagine where the organization can evolve and establish objectives and key expected results that lead the organization to be what it is called to be.

Doing an annual review of the canvas and a proposal of what should change constitutes a short-term strategic planning model that I believe allows organizations to adapt much better to the intrinsic instability of the times we live in. The simplicity of the model makes it much easier to convey what is important for the next period to all involved, allowing them to align much better with the organization and pull together in unison in the same direction.

An online course on innovation management

Posted on by MLT-gestion-web

The first project that arrived in this new stage is a request from MIA University, an online university based in Barcelona, and there are a total of 12 30-minute videos on innovation management.

It may seem like a lot of time, a lot of content, something difficult to design and execute. It had been a long time since I organized my knowledge and experience in innovation management to tell it to someone else, so I decided to broaden the focus and not only talk about the innovation management process, but also include other topics such as innovation culture, organization of collaboration, the scaling of innovations implemented in lean mode, reflections on ethics and sustainability of innovation and the identification of innovation trends of interest to organizations.

The result is a fairly complete course that starts from the following description:
Innovation is the lifeblood of successful organizations in today’s rapidly evolving business landscape. This comprehensive Innovation Management course equips students with the knowledge, skills and strategies necessary to drive innovation within their organizations.

The objectives of the course are:
● Understand the fundamentals of innovation
● Develop innovation strategy and planning.
● Manage the innovation process
● Perform Innovation Knowledge Management
● Implement innovation metrics and performance measurement.
● Create a culture favorable to innovation
● Understand open innovation and collaboration
● Think about the implementation and scaling up of innovation
● Carry out ethical and sustainable innovation
● Know future trends in innovation

Managing innovation goes far beyond the diagnosis process, innovation plan, project management, knowledge management. It talks much more about people and attitudes than about tools and technology (although it also talks about tools and technology!). And he increasingly talks and will talk more about reflection, ethics, sustainability and foresight, which is the ability to look to the future and identify impact innovations to build the world we would like it to be.

Innovation Management Process

Posted on by InnoBalears

Many people think that innovating only has to do with inspiration, creativity and good ideas. But Innovation has a lot more to do with hard work, systematization, and ability to implement the good ideas that anyone can have.

With this in mind, we can define and implement in almost any organization an innovation management process, that identifies subprocesses that involve all the organization staff.

The first subprocess of innovation mamagement process is Current situation analysis, this is, try to think about the organization innovation level within its sector (this would be the “innovation degree”) and its attitude towards innovation (this would be the “innovation capacity”).

Once this thinking process has started, it is time to identify and priorityze the innovation projects that will improve the company situation in innovation degree and capacity.

The third step in this process is to find ways for project financing, and this ways can go through public funds, risk capital, banks, private capital and so on. Every way is worth a look.

Next, comes project execution, and you can read my october article “Innovation project management” for further information. This is about clearly defining, executing and closing projects implementation.

The project implementation can lead to some results that you might want to protect through intellectual property rights in order to guarantee the income of your investigation. How do you protect each type of result is what you have to think next.

Finally, we have the last step of letting others know how we play in our organization, this is, Innovation Difusion subprocess. The fact is that our stakeholders want to hear that the organization fights for a better society, and as Rosenberg says the results for society have now to do with force, capital and techology.

All these subprocesses make no sense if they do not come supported by a clear, simple and effective knowledge management process, that will let you know the current situation of your organization, what projects make more sense in this current situation, how can you finance them, who can execute them, how can you protect them and what story do you have to tell about them.

The Innovation Management process is not that complicated, is it?

Innovation project Management

Posted on by InnoBalears

As far as I have experienced, Innovation cannot be successful without being structured as a Project. Companies can develop their day-to-day activities in a fuctional way, this is, each department just doing their job and a manager that integrates the activity of all these departments.

But innovation projects (which are, as I already commented in some other article, the ones that are going to guarantee the market position of the company in a long-term basis)must be structured as projects.

A project can be defined as a group of activities developed in a concrete period of time using several resources and oriented to get determined objectives and results.

There is a lot of Project Management bibliography, but when we talk about small projects there are three phases one has to consider:

DEFINITION AND PLANNING PHASE, oriented to clearly define the objectives of the project and the results expected (which are not usually the same: a project can be “develop a new service”, and results expected could be “enter a new market segment” or “increase sales”), the deliverables that will generate the project, the management structure, the project team and the project planning, once a business case has proved that the project makes sense for our organization.

PROJECT CONTROL AND FOLLOW-UP PHASE, mainly including activities like risk and problem management, change management, documentation management and (last but no least) financing and economical management.

CLOSING PHASE, basically oriented to analyse the project profitability, to prepare knowledge transfer and to evaluate the performance of people in the project.

Common sense is key for project success (just like for any other business activity), but it is amazing the amount of innovation projects launched by companies without a business plan to support them. Let’s start by planning and a lot of money and emotional pain will be avoided!