Innovation

Chapter 1: The new economy: Different for Good

Innovation is really about creating ways of delivering meaningful net customer value. Net customer value refers to the benefit customers receive from a product – real and perceived- relative to its cost. Net customer value is a multisensory experience.

A Better Beer, a Better Burger

We have to touch people and this is about the fact that we are multisensory beings. We have a sense of smell, vision, taste and feel. It’s about the combination of those senses that creates a visceral determination about that experience.

A part of what innovation is about is the ability to look, feel, sense an environment in a way that adds real value to the customer. Great companies develop great technologies. Great companies also add value to every step of the way, from employees to their community to their customer.

Would you like something to drink?

This process of innovation should be created at the beginning of the foundation of the company. Sierra Nevada is a great example it went from being nothing to the sixth biggest brewer brewery in the world.

Great companies care

McDonald-izing the process of Sierra Nevada is making lots of products but maintain an ongoing commitment to developing new products and staying connected to the customer.

The Darkest Hour

When the crisis in US came, there where lots of unprepared companies that fall down as Warren Buffet said “When the tide goes out, you see who’s been swimming naked”. This failure its mostly because of the business model they got.

Will the Great Pumpkin Return?

Companies that had R&D are meant to a comeback when the economy recovers. An economic meltdown forces companies to focus on making better efforts in R&D. Companies that don’t get R&D are destined to failure and depend only in an economic recover while other companies already into R&D bounced up and begin its own recovery.

Not your father’s economy

The biggest change since the Great Recession is that everything changes faster. The cycles of change are getting swifter, and may hit with little warning.

A faster roller coaster

Today’s business cycles are more frequent, generally shorter, and generally turn faster. More potent economic management through monetary and fiscal policy tends to reverse the cycle more quickly. But the biggest change over the years is the change of the speed of business.

Technology and Products Cycles

The product cycle is also getting shorter, even the processes

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