Category: #innovationpolicy

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.

Call for innovation and sustainability projects in tourism companies

Posted on by Mariona Luis Tomás

On 4/10/24, the call for the granting of aid to finance innovative/projects through cooperation was published in the BOIB with the aim of searching, implementing and digitizing sustainable innovative solutions in tourist establishments in the Balearic Islands. within the framework of the Recovery, Transformation and Resilience Plan financed by the European Union Next Generation EU.

It is the first time that a call for specific innovation appears for the tourism sector in the Balearic Islands, and given the competitive specialization of the islands, it is something that makes a lot of sense and seems to me to be a success.

The call consists of two programs: one for research and the other for innovation. The research program’s beneficiaries are any entity or legal person that carries out development and innovation activities, and the innovation program’s beneficiaries are companies and people registered in any of the island registries of companies, activities and tourist establishments.

I find the program interesting for several reasons: for the clarity of its purpose (search, implement and digitize innovative sustainable solutions in tourist establishments in the Balearic Islands), for the profile of projects it aims to finance (circular economy, energy cycle and water, agri-food cycle, digital transformation), due to the simplicity of the application process and the fact that money is allocated to projects in advance.

Hopefully the program will serve the necessary transition of the tourism sector and so that the Balearic Islands continue to be an international benchmark for tourism management; Contact me if you need help defining or structuring a project, whether you are a registered company or an R&D company.

Promoting innovation and sustainability through industrial engineering, a new challenge for the COEIB

Posted on by Mariona Luis Tomás

We recently presented the new Strategic Plan of the College of Industrial Engineers of the Balearic Islands.

This strategic plan begins by offering a detailed vision of the economic, social and professional context of the Balearic Islands and the role of the Official College of Industrial Engineers of the Balearic Islands (COEIB). In recent years, the Balearic Islands have experienced significant growth in sectors such as tourism, demography, commerce and construction. Tourism, in particular, has been an engine of post-pandemic recovery, contributing substantially to the region’s GDP.

The COEIB, regulated by various laws, has had to navigate through significant legislative changes, adjusting to new regulations on visas and membership.

Currently, it faces challenges such as lack of purpose, low commitment of engineers and a majority of senior members. Internally, the COEIB offers a wide range of services, including electronic visa, membership, training and a job bank, among others. Most of its members are professionals in free practice, work in public administration, or are employees in companies.

At a global level, engineering is crucial to achieving the Sustainable Development Goals. In particular, industrial engineering is undergoing a transformation with the advent of Engineering 4.0, sustainability, new management models, the reorganization of value chains and other technological and non-technological innovations.

The COEIB, through its strategic plan, seeks to adapt to these internal and external changes. The vision is that engineers can assume greater responsibility in the world to come for future generations, so the purpose identified for the school becomes Promote the sustainability and innovation of the Balearic Islands through industrial engineering.

The action plan for the period 2024-2027 includes several programs such as free exercise, training, social club, professional development, representation and advice to the administration. Cross-cutting axes such as management, communication and creation of the knowledge map of the group of engineers are also identified.

This plan seeks to consolidate the role of the COEIB in the professional development of engineers and their integration into society, adapting to the current needs and challenges of the profession and the economic, environmental and social context in the Balearic Islands. It has been a pleasure and an honor to contribute to structuring the future activity of the school, I hope we can see results soon.

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.

Operative innovation planning at regional level

Posted on by InnoBalears

Lately, many regions in Europe are developing Science, Technology and Innovation Plans in order to promote innovation in their bases. These plans are long term (4 to 7 years) and aligned with UE policies.

The objective of planning is always having certain control on investment, but how can we implement these long-term plans?.

The most important way to implement the plans is distributing the money between the different innovation agents implied in the regional innovation processes. One of these agents can be, for example, a network of contact points within innovation. These points are offices that give assistance to any businessman/woman interested in innovating in his/her business. Integrating the activity of several agents is very interesting, specially when the agents come from different sources: technological centers, business asociations, universities and so on.

One of the projects I am working on now is to define an operative plan for one of these networks. The plan is for year 2006, and includes several types of initiatives (network structuring, training, difusion, and research and development promotion). The objective is that the different agents (mostly paid by public funds) work together in order to get to know each other and to be able to aboard bigger projects with bigger impact on society.

Maybe this operative plan and the idea of working together and learning from each other is an added point of motivation for the agents, and it might be a way to identify agents really compromised with innovation in their community. Let’s expect the plan to become a reality in the short term!

Innovation promotion activities in other regions

Posted on by InnoBalears

Due to the project I am working on now, I was looking for innovation promotion initiatives in several regions, that might be considered of reference for some islands like ours, the Balearic Islands.

The reference regions chosen were Madrid and Catalunya (as we work in the Spanish framework), Ireland (as it happens to be the country of reference in Europe in what has to do with tech development) and Hawaii islands (with a population, islands distribution and business profile quite similar to Balearic Islands).

The most remarkable characteristics detected in our little “benchmarking” analysis were:
– The commercial orientation of all public policies in the anglosaxon regions analysed. All web information is focused on selling their technological resources
– The fact that madri+d is a great source of information based on the visibility acquired by the agent that sends its information to the Portal. But the fact that they put their information in the portal doesn’t mean that they work together to generate the information, they just put it there.
– Catalunya has several tech transfer networks, partly financed by regional government. They develop projects through the networks, but regional government has at this moment too much visibility in the networks management
– Hawaii islands have decided long ago to specialize in a few sectors of activities, and they try to focus their RDI infrastructure construction in these sectors. The results are quite good in the sense that your tech industry is limited, but what you do, you might do it very well.

Having all these in mind, I think it would be good for the Balearic islands to specialise in what we do best: tourism, and to create the best infrastructures for this.

The next question is, How do we research, develop and innovate through technology in tourism sector? I think that the answer is: through technology providers. We have to specialize in ICT in tourism (of course, key for all subsectors), but also in food for big communities, furniture for hotels and turistic areas, boat building for leisure time, etc. Furniture are too expensive to export, but design of accurate touristic furniture is exportable for free!!