Topic of the week: The Innovation Process

Lately I’ve had some meetings where a well-situated bussiness man asked me what is really Innovation and how could we talk about Innovation in a tangible way. Innovation is a process. Innovation is an attitude.

To make it tangible, let’s talk about the process. The Innovation process starts with a diagnosis of current situation, any bussiness manager can do this (and does it systematically) on his or her business, this is, staying aware on what happens around my company, how do my competitors move, what techology can make my bussiness easier. To systematyze this process one can subscribe to a good periodical review on the sector, assist to determined events, listen to any provider that comes up with new ideas, support consultants pressure to buy the new bussiness aplication (and buy it if it is really worthy), etc.

Next step is to develop once a year (at least), and according with the analysis performed, a list of innovation projects that could make sense for my company, and characterize them in a developed-enough way so that one can have an idea of how much (more or less) should they cost and how worthy they are for the bussiness. With these criteria on mind one can prioritize the list developed.

The third step includes projects financing, this is, getting the resources that will guarantee projects implementation in the right way. There are several institutions that lend money to develop projects and determined governments give financing facilities, but never lose of mind that the most important risk and the work is for the bussiness manager. This point, financing, might change the initial priorityzation made in our list of projects, as depending on public policies one may be able to finance project number 3 in our list…

Until this point we haven’t actually started to work on the project, we just have thought of it! Now it is when Project Management process starts with its steps of Design, Implementation, and Testing and all the substeps that the concrete project needs, until it is completely implemented and working on the actual environment.

But the Innovation Management process includes two more steps, which are as important as the ones already presented and which are normally ignored by many companies, that do not take the benefits of them. The questions one answers with these two steps are:
1) How do I protect the results of the project? Maybe you don’t want or you can’t protect them in the traditional patent way, but with a confidentiality contract or simply keeping the secret you are already defining the Innovation Project Protection Policy for your company. There are many ways of maintaing the competitive advantage derived of the project, you just have to find which one is good for you.
2) How do I let my customers know that I am working for them and contributing to the development of knowledge in the world with the development of these projects? This is the last step of the innovation process: difusion. Maybe the innovation process developed doesn’t have a direct impact on customers, but sure they are willing to know that every day you work to improve what you do.

I think that if you look at Innovation as a process you can think of tangible results: if you can’t think of them you might not have innovating attitude, which is the basis to survive as a company in this world of today. We will see how to get innovating attitude some other time.

Topic of the week – Dream Society

Basing on a comment heard from one of the most important investigators in Spain I discovered Rolf Jensen and his Dream Society. The comment was a question: how are the touristic sectors innovating? Traditionally, in industrial sectors, innovation is the result of more or less clever ideas perfectioned by hours of problem solving. It’s about things, so it’s more or less easy: just a matter of time.

What happens in touristic sectors? The type of product we have is about people’s feelings, their emotions, so it is not a matter of time any more, it is about creating new emotions, at that precise moment, through not so direct means (no mahines, no screw-drivers, no computers neither schemas, only people interacting at last).

I read something about Dream Society and my friend Bel Llodrà gave me the reference on Rolf Jensen (www.dreamcompany.dk), the ideologist. I thought I had discovered the panazea of what I had thought till that moment, the maximum component. I read the articles coming up the web page and I read The Dream Society (1999), the book.

The main thesis Jensen presents is that people historically have passed through several phases of needs coverance: hunters and gatherers, agriculture implementation, industrial revolution, society information. What is next, he says (and I agree), is the Dream society, the society where people will be ready to pay more for an emotion than for a determined technology asset. Jensen describes many examples, but one of the most clear to me is the one that speaks of watches: currently all watches are ready to perform perfectly their function in an accurate mode, but one can find a wide variety of prices to perform the same function (tell you what time it is).

He applies this theory to marketing areas, and here we get to the point: industrial revolution or information society have had an enormous impact in the world, and I think the impact Jensen describes is not the impact of a world-wide dimension (as the other historical changes were).

I think the impact of the Dream Society (maybe we should call it the emotion society) will be world-wide, and people will be willing to pay less for technology and more for feelings and emotions than they have ever been. Technology is suppoused to go through, and, from some time ago on, people will want to hear the story behind.

Let’s apply this vision on tourism. We have seen a big change on tourism demands in the last years that has had a big impact on traditional mass tourism destinations. Now that we have realised that what people want to buy are emotions, we will have to change the operations side of the business in order to provide emotions. This is (for example):

  • Telling stories instead of presenting products in the marketing side
  • Asking what type of emotion is the customer feeling when he or she gets our service
  • Changing the satisfaction survey questions (if you look at them you will realise thay are all about functionality (is it clean?), not about feelings (how did you feel when you got in the room: dark?, sad?, nervous?, happy?,…)
  • Training the company people in order to be able to tell stories themselves about who the company is

I think this would be a good beginning for a lasting and loving customer- company relationship and an excellent way to identify and understand how can touristic companies innovate to improve their competition position in the market.