Currently viewing the tag: "Create value"

Does it matter what we are doing?

When I come to the beginning of a calendar year usually I think of some things that I would like to conclude, think of others that I have to leave and even other that would like to construct or perform.

For some years, as my four sons were growing and experiencing life as adults in society the words meaning and purpose were springing up in me with more frequency and with a very peculiar sense and value. These things that before were fleeting were replaced by the need to participate in rewarding experiences that bring lasting memories and heartwarming and those things can be a restoration of a chair or the creation of a garden solar protection with automatic monitoring device of the route of the Sun.

But this year, an “artery” that irrigates my heart resolved on the eve of Christmas joking and did not provide for small periods of time the amount of blood required to a dull pulsar and without pain to this wonderful body which is our heart

This episode that made me spend a few days in the intensive care unit left me space for reflection (mobile phones and portable are not allowed) about a meaning of things.

I had spent the year 2011 talking about creativity, innovation, design thinking, behavior and organizations and preparing some projects for 2012 but this novelty at the artery seemed to want to put something in question.

I must confess that at the moment virtually nothing has changed in relation to what I did before, not to be, and well, I had not smoked more.

I already had written about the need to innovate the meaning of things and do it at scale to change tomorrow’s behavior. This does not mean that we should put innovators in a showcase as trophies and look at them as the major makers of quick wealth.

What in fact these days care enabled me, was to assess the importance (value) that small gestures repeated daily had in comfort and joy to so many people.

“We need to understand who creates value, and encourage those who can to replicate that behavior.  We need to stop directing people towards early stage organizations if their talents could be best leveraged in other fashions.  And if the start up world is the right place for an innovator, we need to steer them to build lasting organizations; organizations that will exist long enough to enable the paradigm shifts that generate meaningful value in society.” – The Disruptive MBA

Today we have a greater access to all kind of people, to the amazing places images, music and words from distant places, and all this helps us to be more creative, not only because it exposes a wider range of styles and ideas, but also because it allows us to imagine and check the values that give meaning to so many things that matter.

This our ability of imagination not only reflects on relaxing thoughts, it is also used in solving problems of our everyday life and everyday lives of others.

“What’s important is that what you’re doing matters — to yourself, to the people you love, and to something bigger, whether your community, society, or even humanity. Choose fulfillment and passion over “money” and “success.” The latter follow the former — and without the former, the latter are empty. When you’re sorting through your passions, consider what you have the potential to be not merely mediocre, but world-beating, at. And as you refine your choices, consider which are going to matter most in the sense of the greatest good for the greatest number — perhaps for the longest time. Because one world-changing accomplishment that knocks the ball out of that park is likely to give you more satisfaction than a lifetime of designer jeans.” – Umair Haque

Many times we can transform a problem, finding a better way to ask the question and being distant from the problem it may be easier to find that way.

The true importance of creativity arises when we are confronted with a problem to which we have no response but we think we can create a solution.

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From failure to open innovation

It is a challenge what Clay Maxwell (@bizinovationist on twitter) suggested! To comment, “Today’s Innovation Can Rise from Yesterday’s Failure”.

This article by Vijay Govindarajan co-authored with Jay F. Terwilliger and Mark H. Sebell comes in the wake of another already mentioned here where you can read that “Many times when we experience our ideas we tend to look exclusively to the results and do not consider the learning we do from successes and failures.”

What the authors referred suggest is that despite many efforts in innovation have failed opportunities are not dwindled over time. On the contrary the change that we are subject carries also new market opportunities, new desires and new skills.

To fail does not mean to throw out the whole investment! Fails can mean stopping at the right time!

The right moment to reflect on new business models, to reorganize the company, to reassess investments and turn them into launch pad for innovation in a new context and with resources available more meaningful and less costly.

What before was not viable today can be, and the ideas or concepts can be adjusted to new realities.

To learn from the failures it is necessary to understand them and the authors in the article mentioned above pointed out a model to review the failures of the past and remove the innovation strategy to implement.

“Understanding this framework provides enterprises with an opportunity to revisit past failures, compare them to today’s realities, and more quickly and efficiently leverage past “failed” concepts. HBR

It is at the intersection of corporate will, marketplace opportunities and the strategic competenices which emerge the new strategy of innovation that can pass through a framework in the new circumstances.

Change the times change the wills. The concepts that failed in the past are not useless.

Henry Chesbrough says: “With open innovation, we can create a new division of innovation labor, one that can support investment in innovation in the future.   If they open up their innovation process to utilize the work of others on the one hand, and share their own work with others on the other hand, innovation can thrive once more.   If they are able to do so, many more ideas will become available to them for consideration, and many more pathways for unused internal ideas will emerge to unlock their latent economic potential as they go to market.”

Companies now have new spaces for external alliances that can enable new markets that were unattainable before then which may mean new business models, i.e. an open business model to create value and to capture value within the alliances established.

The value creation strategies generate benefits that are shared by the partners of the alliance, while the value capture strategies determine how these collective benefits are divided between the partners.

To Henry Chesbrough ” A business model performs two important functions:  it creates value, and it captures a portion of that value.  It creates value by defining a series of activities from raw materials through to the final consumer that will yield a new product or service with value being added throughout the various activities.  The business model captures value by establishing a unique resource, asset, or position within that series of activities, where the firm enjoys a competitive advantage.”

Emerging pathways that open innovation brings when faced with the renewed willingness of the leaders of companies may be the revitalization of “old ideas or concepts” and the consequent use of the work already done.

But this, in my opinion, will only be possible if this will represent a new stance on the part of managers of enterprises:

-Willingness to understand the conditions under which the errors occurred. Accept mistakes as levers to innovate.

-Adaptation of passions to new realities. The environment of dreams can evolve.

-Creating new competencies given to the development of markets and new technologies. The change brings almost always resistance.

In organizations there can be two types of portfolios that matter for here and now, of failure and the alliances. Awareness (knowledge and understanding) of what were the initiatives that have failed and have knowledge of possible alliances can result in creating and capturing value.

To combine portfolio of failures with portfolio of alliances or partnerships can be a new way to grab new opportunities.

 

“The single biggest reason companies fail is they over invest in what is, as opposed to what might be.” — Gary Hamel

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