Innovation in Action I2AA practical Business ApproachBy Fernando HuertaMonterrey, MexicoProfessor: Fernando HuertaEmail: fhuertamty@itesm.mx

About me…..Disrupting Business and Education!!!!Professor: Fernando HuertaEmail: fhuertamty@itesm.mx

AboutMySelfName: Fernando HuertaEducation:Undergraduate: Computer Science at ITESMGraduate: MBA at ITESM / MSTC at IC2 University of Texas at Austin – CIMAV (2010)Relevant career Experience: ICT (Information and Telecommunication Technologies) – Alestra an AT&T JVMarketing DirectorProduct ManagerStrategic Planning ManagerTeaching Experience: ITESM (www.itesm.mx) and CEDIM (www.cedim.edu.mx) InnovationEntrepreneurshipMarketingProduct Development

AboutMySelfMy Passions:Education.Innovation.Entrepreneuship.High-Tech.My GoalsWriting a book about Innovation (Innovation in Action)Promote a culture of Innovation in Mexico.Build a great community of Entrepreneurs in Mexico.Find the next Steve Jobs, Da Vinci, Bill gates.

My Students!!!!

My Students!!!!

My Students!!!!

My Students!!!! (WiningAwards)

My Dream!!!!Create an Innovation Methodology!!!!Innovation in Action I2AProfessor: Fernando HuertaEmail: fhuertamty@itesm.mx

What does Innovation means?Professor: Fernando HuertaEmail: fhuertamty@itesm.mx

Eureka StoryProfessor: Fernando HuertaEmail: fhuertamty@itesm.mx

Innovation ParadoxProcess vs Serendipity?Professor: Fernando HuertaEmail: fhuertamty@itesm.mx

Innovation ParadoxProcess vs Serendipity?Disruptive Thinking!!!Professor: Fernando HuertaEmail: fhuertamty@itesm.mx

Innovation or Product Development20%New productlines (e.g. AT&T Universal Card)10%HighNew-to-the-world(e.g. laser printer)26%26%Additions to existingproduct line (e.g. Bud light)Newness to the companyRevisions/improvement toexisting products (e.g. MS Excel ‘00)11%7%Cost reductions (e.g. Low-end PC)Repositionings (e.g. A&H Deodorizer) LowNewness to the marketLowHighProfessor: Fernando HuertaEmail: fhuertamty@itesm.mxSource: New Products Management for the 1980’s (New York: Booz, Allen &Hamilton, 1982

Disruptive Thinking?....How?The Magician StoryProfessor: Fernando HuertaEmail: fhuertamty@itesm.mx

Magician vs Innovations GurusThe MagicianThey never tell you the secretThe Innovation GurusThey never tell you the secretMy Goal!:Give you a clear way to innovate: Innovation in ActionProfessor: Fernando HuertaEmail: fhuertamty@itesm.mx

DefinitionsEntrepreneur: French word adopted worldwide for a person who starts their own business.Latin Etimology: InPrendereInPrendere: An adventurous spirited person who undertakes and faces impossible journeys to discover new opportunities.Creativity: The energy source of innovation.Innovation: Changing your business from the essence in order to create sustainable , relevant and competitive economic growth and wealth.Breakthrough Innovation: Achieve innovation through an achievement of a lifetime at the speed of though.Professor: Fernando HuertaEmail: fhuertamty@itesm.mx

Innovation in Action (I2A)1.- Define your who is your Customer?: Establish a customer profile statementProfessor: Fernando HuertaEmail: fhuertamty@itesm.mx

Innovation in Action (I2A)2.- Customer Understanding: Indentify relevant social structure and interactions and lifestyles according to their importance through an everyday life.Social Structure: Closest Family and friends.Life Style: Frequent values, habits, religion, hobbies, restaurants, vacations, car, dressing style and ethnic groupHabitat: Work, home, school, etcTools: Ethnography, interviews, focus group.Professor: Fernando HuertaEmail: fhuertamty@itesm.mx

Innovation in Action (I2A)3.- Identifying Innovation Opportunities Understand the relevance of non-evident Customer’s needs, problems and restrictions over their social structure and lifestyle.Identify 3 frequent-intense non evident problems.Answer the who, why, how, when, where of the problemsDraw a mental map of the problemsDraw an Story Board: How the problems is related to him or her and also to the closest social (relevance / timing)Mental map of the obstacles and circumstances who produces the problemsSelect one problem based on attractiveness (size, grow, easy to do)Professor: Fernando HuertaEmail: fhuertamty@itesm.mx

Innovation in Action (I2A)4.- Design the Solution Based on the problem build a ICVP (Innovative Customer Value Proposition)Mental map of the attributes of the ideal solutionTake the top 5 attributes of the mental mapUCVP statement: What am I selling? / What are they buying?Understand Purchasing Drivers and circumstances: When they Buy? Where they Buy? Why they buy, How they buy?Benefits: Functional, Rational, PsychologicalCompetition: Why my product is significantly attractive vs competition and what is going to be the competitors reactions?Professor: Fernando HuertaEmail: fhuertamty@itesm.mx

Innovation in Action (I2A)UniqueCustomerValuePropositionStatementUCVPPOD 1POD 2POD 3Purchasing DriversRacional BenefitsRationalBenefitstatementFunctionalBenefitsFunctionalBenefitStatementPsycologicalBenefitsEmotional-PsycologicalBenefitsProfessor: Fernando HuertaEmail: fhuertamty@itesm.mx

Innovation in Action (I2A)5.- Validate the solution.InterviewsEthnographyFocus GroupPollsExperts PanelLead ConsumersHeavy UsersProfessor: Fernando HuertaEmail: fhuertamty@itesm.mx

Innovation in Action (I2A)6.- Fine tuning process.Customer definitionRestrictions, problems and needs Unique Customer Value PropositionHeavy UsersProfessor: Fernando HuertaEmail: fhuertamty@itesm.mx

Innovation in Action (I2A)7.- Launching Process.Friends & FamilyAlfa/Beta Customers Control IntroductionMarket Trial / Soft LaunchMassive Launch/ General AvailabilityProfessor: Fernando HuertaEmail: fhuertamty@itesm.mx

Innovation in Action I2AA practical Business ApproachBy Fernando HuertaMonterrey, Mexico.Professor: Fernando HuertaEmail: fhuertamty@itesm.mx