MANUAL CREATIVITY AND BUSINESS INNOVATION

CREATIVITY AND BUSINESS INNOVATION

MANUAL

MANUAL CREATIVIDAD, INNOVACIÓN Y EMPRENDIMIENTO

INDEX

EXECUTIVE OVERVIEW ...................................................................................................................3 1. CREATIVITYANDINNOVATION ..............................................................................................6 1.1. Creativity ............................................................................................................ ...... ....6 1.2. Innovation ....................................................................................................... ..... .........7 1.3. Entrepreneurship ............................................................................................... .. .........8 2. CREATIVITY, INNOVATION AND ENTREPRENEURSHIP ............................................. . ........ . .10 3. CRITICALFACTORSININNOVATION ........................................................................ ........... ...12 4. TOOLS OF INNOVATION . ............................................................................. .................... ....18 4.1. The Dipole Method - Blue Ocean Strategy .................. ................. ...............................18 4.2. Design Thinking ........................................... ................................................................21 4.3. Canvas Model (CANVAS)..................................................................................... ....... ..25 4.4. The 4 Lenses of Innovation ..................................................................... .... ................30 4.5. Gamification ...............................................................................................................32

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EXECUTIVE OVERVIEW

Two important aspects when we talk about entrepreneurship are creativity and innovation, as they are what awaken the initiative to carry out a project based on interesting ideas that may occur to us at a certain moment or after correctly recognising a need that we want to solve in a particular group. All innovation begins with creative ideas. However, creativity by itself is not a sufficient condition for innovation. Firstly, innovation, as a tool for entrepreneurship, requires creativity, understood as the ability to make or bring to life something new, which does not necessarily have to be novel. It can comprise a new solution to a problem, a new method or device that we want to implement, or simply the introduction of a new object or artistic form. In other words, it involves a movement from the known to the unknown. We see that today's companies are operating in a world of constant change in which new problems, new risks and opportunities arise. In this sense, it is necessary to mobilise resources before the effects of these changes are felt. On the other hand, we must understand that creativity is not the ability to create something out of nothing, but to generate new ideas by combining, changing or reapplying them. Every person has a creative side, but is not aware of it, as it is an attitude in which we are able to accept change and novelty. It alludes to a flexibility of perspective and enjoyment of things while seeking to improve them. Likewise, technological and scientific advances, such as the Internet, have become available to the general public, turning information into a "commodity"; a basic and generic commodity. In this way, a series of structural changes have taken place in the business environment that have highlighted the importance of intangibles such as the power of brands and the intellectual capital of companies (Davis & Davis, 1999) in generating sustainable competitive advantages.

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At the heart of this human capital are creativity, innovation and organisational entrepreneurship. The importance of these elements derives from the development of new processes, products and services that they entail and which, in turn, will ensure the survival and success of companies in the industry. The importance of these for companies is widely recognised worldwide, in fact, large companies such as Apple, Google, 3M and P&G (among others), companies that already have innovation and creativity embedded in their DNA, continue to strive and search for the best way to leverage and make the most of this great advantage (Kuratko, Hornsby, & Covin, 2014). However, when managers and organisational leaders come face to face with the challenge of managing these capabilities or resources internally, they face two major problems;

• What are the internal factors that affect innovation, creativity and organisational entrepreneurship within a company?

• How can we diagnose the current situation of the company based on these factors?

The environment that people and organisations are currently experiencing is one of extraordinary complexity and uncertainty, described by some authors as a VUCA environment: volatility, uncertainty, complexity and ambiguity. In this environment we are seeing the profound transformation and even disappearance of very traditional companies and business models. Think for example of what happened to Kodak and the traditional photography industry, then to the publishing and media industry and recently to the music industry with the emergence of new business models based not on the "purchase" of songs but on their "use" through "music streaming" models such as the Swedish startup Spotify founded at the end of 2008.

In addition to the traditional uncertainties stemming from economic cycles, financial and recently geopolitical instabilities, the "cross-cutting force" that is transforming all businesses is digital transformation.

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Technology with its different vectors (Internet, Cloud Storage, Internet of Things, Artificial Intelligence, Big Data and Analytics, 3D Printing, Robots and Chatbots, Blockchaim, etc), is radically transforming business models, annihilating old ones and giving rise to "new" business models. Technology and the digital transformation it brings about mean that we have to review certain concepts of traditional strategy, such as "barriers to entry". In some businesses we used to think that for example the capital and investment required were sufficient barriers to entry into the business. This was for example the case in the hotel industry, which required heavy capital investments to enter the business. Suddenly, a San Francisco startup called Airbnb, which did not come from the "head-on competition" of the incumbent operators, develops a business model that "matches" people who want to rent accommodation they own with people who would be willing to rent it for their stay. . It is a completely different business model to the traditional incumbents (e.g. hotels and large established hotel chains), whose innovative development has led it to be the "world's largest hotel chain by rooms" without owning a single room. Something similar could be said of Uber's disruptive business model in relation to the mobility industry. The old paradigms do not serve to protect against the profound transformation imposed by the technological and digital revolution. It is not enough the size of the company, the sector in which it operates, the strong regulation to which it is subject, the digital revolution transforms all business models. Faced with this, people and organisations must launch active and intense programmes of creativity and innovation in search of digital optimisation of their current business models and, above all, the search for new ones that will increase value and wealth for all their stakeholders: employees, customers, shareholders, suppliers and society in general.

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1. CREATIVITY AND INNOVATION

1.1. Creativity Creativity has been the central theme of many studies and has been analysed from multiple points of view. However, for this paper we will understand creativity as the ability to generate and realise new ideas. From this definition we can infer that it will require not only originality, but also effectiveness (Runco & Garrett, 2012). Thus, it is this effectiveness (the ability to carry out the ideas generated) that differentiates creativity from imagination. There is often a tendency to simplify this concept by reducing creativity to a brilliant idea from a single person. In practice, the creative process involves the coming together of many ideas and the collaboration of many people with different expertise (Catmull & Ed, 2008) who have a huge influence on all the phases that make the initial idea take shape and give rise to new products, processes or services (innovation). This process, however, is not an orderly and uniform process, but rather the different phases mix, interrelate, change order and create synergies as the idea develops.

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1.2. Innovation Innovation is a multifaceted process that has been repeatedly defined as the search for new ways of doing things. According to the Organisation for Economic Co- operation and Development (OECD): "Innovation is an iterative process triggered by the perception of an opportunity provided by a new market and/or new service and/or technological breakthrough that can be delivered through activities of definition, design, production, marketing and commercial success of the invention".

Innovation as a process Understanding innovation as a change that includes the creation and commercialisation of knowledge (Tidd, Bessant, & Pavitt, 2001), Adegoke

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Oke and his associates infer that although creativity plays a key role, the need to implement and commercialise ideas makes innovation a process consisting of different phases in which a different cocktail of skills and inputs will be needed (Oke, Munshi, & Walumbwa, 2009) as can be seen in the illustration:

1.3. Entrepreneurship

Although the most widespread definition of entrepreneurship is still related to business creation, entrepreneurship can also be understood in a much broader sense. In fact, Gathner conducted a study in which he analysed more than ninety definitions obtained from managers and academics. Although he was unable to arrive at a single definition that was valid for

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In all contexts, it did find a number of concepts that were repeated, if not in all, then in the vast majority of cases:

• Start, found or create. .

• New business, enterprise or initiative.

• Innovation, new products or markets

• Search for opportunities.

• Assumption and management of risk and uncertainty

• Pursuit of profit and personal gain

Entrepreneurship being a process of change, creation and innovation, organisations have the obligation to generate new ideas if they do not want to be subjected to the yoke of competitors or new competitors. Today, the concept of "organisational entrepreneurship" is applied to the behaviour of different companies and organisations that have as their praxis the culture of change. That said, we can conclude that organisational entrepreneurship materialises from 3 possible perspectives (Stopford and Baden-Fuller, 1994) • Corporate Venturing or entrepreneurship. It involves the creation of a new line of business within an established organisation. • Corporate Renewal. It is the way in which companies seek to change the way in which the existing organisation operates and how it competes in the marketplace.

• Corporate Leadership. The organisation wants to change the rules that govern the way different players compete in the industry

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2. CREATIVITY, INNOVATION AND ENTREPRENEURSHIP

We have commented in the Executive Summary that we live in a "VUCA" world characterised by extraordinary complexity, volatility, ambiguity and uncertainty

The vectors that characterise this environment could be broken down into others: • In almost all industries, supply far exceeds demand. This supply saturation includes the company's different distribution channels. • There is a clear imbalance of consumer power vis-à-vis industry. Consumers have multiple offers that they can compare in terms of functionalities and prices via the Internet. • There can even be a "paradox of excess": the more choice I have, the less I choose. • Emergence of "new lateral competitors": in all industries, competitors that were not on the industry's observation radar (front-end competitors) will appear and use new asset and/or digital transformation schemes. Who would have thought, for example, that their "killer competitor" would come from the smartphone industry? Today in the domestic segment we don't buy a camera, we use the one that comes with the mobile phone. Who would have told the traditional hotel industry that one of its fiercest competitors today is a technology platform (Airbnb)? These "lateral" competitors are the most dangerous because they were never on the industry's radar and they use other assets, especially technology and the digital transformation that goes with it. Moreover, in general, it is not easy to fight against these "new lateral entrants". Think for example of video conferencing and the business it has eliminated for aviation companies and the business travel and corporate meetings segment. For all these reasons, today we are talking more than ever about Creativity and Innovation. Companies, through creativity and innovation, must be constantly reviewing their business model towards a more digital value model, while they must constantly explore the search for new businesses related to their capabilities and synergies for the creation of new value.

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Such creativity and innovation needs to have a strong digital orientation. The customer journey is not what it used to be. At each stage, from brand awareness to purchase, new factors have emerged that add twists and turns to the traditional path. (New) companies trying to capture the consumer's attention must adapt to the new terrain, which is heavily influenced by technology and digital transformation. "The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn. ” Such a digital transformation is so profound that it affects critical attributes of business management such as: the new way of building the company's brand image, the new profile of people the company needs, its capital and operating capital needs. Think, for example, of the modern way of building a brand for a hotel company in the digital age. It would not make sense to invest in expensive advertising campaigns in traditional media as it was done in the past, consumers before going to a hotel inform themselves through other people (Tripadvisor, etc).

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3. CRITICAL FACTORS IN INNOVATION. .

For product-oriented companies such as technology, food, etc.: the number of new products launched in a given period of time (a year? ) could be called Innovation. For example, how many new products have Apple or Danone launched in the last year?

However, there are companies, such as service companies, whose main focus is not the "new" product. In this case, innovation is associated with "process", any process/ system that makes the company more cost and/or revenue efficient (Oslo Innovation Manual). Innovation, both product and process innovation, does not have to be "radical" (innovation never seen before in the world), but only in the specific environment of the company. "To innovate is to use knowledge, and generate it if necessary, to create products, services or processes, which are new to the company, or to improve existing ones, thereby achieving market success" (Oslo Manual 1997). Apple is perhaps the clearest example of diversification in its innovation strategy. Apple was (and still is) a hardware manufacturer (PC workstations, laptops, etc.). But at a certain point it believes that the "core" of its hardware business will become increasingly low-margin and it embarks on a diversification strategy: iPod, iPhone, iPad, iWatch, etc. If you look at its current sales figures, its traditional PC and laptop businesses now account for less than 15% of total sales. We could say that its diversification-innovation strategy has been very successful (think that the iPod is only about 15 years old, the iPhone about 13 years old, etc.). Innovation is a complex process to introduce in organisations. Unlike productivity, which is a "push process" (the organisation "pushes" the new process and "either you adapt or you adapt"), innovation is a "pull process". Innovation comes from who makes things and/or consumes them. A critical agent of innovation is the employees (innovation comes from who makes things), so for them to actively participate in innovation processes, a culture of innovation must prevail in organisations. It requires a culture and organisational structure that fosters innovation. It is worth highlighting the innovation culture model at Google, with the "80/20 rule", employees have 20% of their time to work on new innovation projects for the company. This culture of innovation gave rise to the email product (Gmail).

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Innovation needs committed employees. Also, sometimes we ask ourselves where in the business cycle to innovate. At product launch, innovation is focused on the product, so we launch it. When the product reaches maturity, innovation will come from the "management mode", especially the distribution/delivery model, service and after- sales service. In order to define in which products/services financial resources for innovation should be allocated, the product-market matrix (Boston Consulting Group matrix) of the organisation should be taken into account:

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If we believe that innovation comes from who makes and/or consumes the products/services, we should implement an open innovation process where we include internal (employees) and external (customers, suppliers, experts, etc.) agents.

We often speak of different types of innovation as shown in the picture below:

For innovation to develop, an adequate innovation ecosystem is needed, involving industry, experts such as universities, and the support of the political-legal environment that favours innovation in legal, fiscal, administrative, etc. areas.

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Strategic management as a business discipline originated in the 1950s. To innovate is to see what everyone else has seen, but to think what no one else has thought of. The only way to have good ideas is to have lots of them. Some critical ideas related to Innovation: • To innovate is to monetise, to add value. Innovation is that which is accepted by the customer and for which he will pay extra. • To innovate is not to invent, what is not accepted by the customer is an invention and should be withdrawn from the market. • Innovation is a process that also involves risks.

It is very interesting to analyse Google's Innovation Model as one of the most innovative companies in the world.

1. HAVE A MISSION THAT MATTERS: Work can be more than an occupation when what you do really matters to you. Google's mission is "to organise the world's information to make it universally accessible and useful", and that statement guides all its actions. When you start a new area of research, it is because you are seeing an important benefit attached to it. At Google, it is the use of technology, for example, to create a larger storage system for emails (Gmail) or a system to search for missing people after the tsunami in Japan (Person Finder). In the case of your company: what is the mission? Is it well defined and does it allow you to focus your efforts and energies on what really matters? , Does your mission facilitate lines of research that promote real benefit or solutions to real needs? Starting there would be the first step 2. THINK BIG, BUT START SMALL: No matter how big, start small. However ambitious your plan, you have to roll up your sleeves and start somewhere. Google Books® started with the scanning of one book and now has more than 10 million. Or Google Ads® started when an engineer placed an ad in Gmail. Every project starts with a small step. And sometimes too much analysis leads to paralysis. Don't wait until you have all the certainties because you never will. If you think you have it right... start now. In your company, how many projects have fallen by the wayside almost without starting? Would you be able to recognise some projects that, if taken up in the present, could still have a long way to go?

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3. STRIVING FOR CONTINUOUS INNOVATION, NOT PERFECTION INSTANT: The first version of Google Ads® was not very successful. Almost nobody clicked on it, but nobody remembers it anymore. Continuous improvement, seeing how users use it and ongoing experiments have led to a current market share of 80%. Perhaps the case of the Google Glass® is the clearest example. You don't have to make it perfect and complete from the start. You have to start doing it and improve it continuously. In your case, are you aware that the perfect is the enemy of the good in the initial stages? Have you ever held back on an innovation because you were not convinced by the first prototype without waiting to see how it evolved? 4. LOOK FOR IDEAS ANYWHERE: Listen to ideas from anywhere: customers, partners, competitors... and even people who apparently have nothing to do with your business. Convene small groups of people (4 to 6, 8 is the maximum limit) to share ideas, experiences, questions, concerns... And in the company, look for spaces to share freely on whatever excites you most. That's why Google is full of places with snacks waiting for teams. Does your organisation: does it have sharing spaces? Does it allow the creation of multidisciplinary teams with no other concern than talking about what interests them? , Do you have breakfasts or exchange meetings with customers, partners and even competitors? Do you frequently go to exhibitions, congresses and trade fairs, even if they are not in your sector, just to learn from other worlds? 5. SHARE IT ALL: At Google, everyone knows how the company is doing and what decisions are being made. Companies that faithfully share information (95% of information should be available to 100% of employees) are the ones that get the most innovative ideas and the most commitment from their employees. Open spaces, whiteboards for everyone, intranets that really work, are the best antidote to inbreeding and the partisan use of information. Control is at odds with trust, and trust is key for employees to feel free to share and be committed to the company's goals and mission. In your company, is information shared or hidden? Do you need to ask for a lot of permissions to obtain key data in innovation projects? Do you create spaces to encourage sharing even with key suppliers and customers? 6. WITH IMAGINATION, BUT FEED IT WITH FACTS: In the times that It's almost impossible to meet all of our customers' demands. That's why Google constantly recruits people who believe that the impossible can become a reality. That is why Google engineers can dedicate 20% of their time (1 day out of every week) to think about the projects they consider to be of interest to them. This is how Google Car® started, for example, but then it is the data that reinforces them. For example, the search engines show 10 results because the tests showed this as a preference (even though people said they wanted 30 in the initial questions).

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Is imagination or intuition the source of creativity in your company? Does it allow and allow time to do so? And does it encourage access to data and testing to corroborate results? 7. BE A PLATFORM: Let others build and use your own innovations. If you allow access to your innovations and allow them to improve them, not only will you enrich them, but these improvements will increase exponentially. Android or Google Earth are clear examples of being a platform for sharing innovation and knowledge, as is Wikipedia or Linux. These developers become, at the same time, their own distributors. Does your company share technologies and platforms with suppliers? Is it enriched by the contributions of other developers? Have you been able to surround yourself with partners who have become your own distributors? Or, if you want to put it the other way around, are your distributors really partners to your business or are they often a thorn in the side of its growth and innovation? than your failures. Knowing you can be wrong is the best way to take risks. Google Answers was a complete failure that led part of the team to participate in another start-up project: Google Ads, which has been a billion-dollar success. If the team members had been afraid of another failure... this new opportunity would never have appeared. In your company, are failures strongly and publicly penalised? Is there a fear of taking decisions that may involve risk? Are only a few decision-makers responsible for taking truly innovative actions? 8. DON'T BE AFRAID OF GETTING IT WRONG: Google is known for YouTube, not Google Video Player. In reality, the public knows you more for your successes

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4. TOOLS OF INNOVATION.

Promoting innovation through tools and methods facilitates entrepreneurship and, therefore, the organisation of the development of the whole process. Having or having some of them is crucial to be able to incorporate an exclusive and differentiating perspective to our project. Therefore, we must interact with them and be aware of which would be the most appropriate for the project we carry out. There are many in the market and every year new methods come out that help us and guide us in our innovation. It is necessary to be very connected with them as well as knowing how to handle them, as in many cases these methods make an important difference. A widely used method of innovation is the Dipole Method or Hybrid Method. It is so called because for a given company or industry, there are some elements or attributes that are minimised or even disappear, and there are others that appear or are incorporated from other industries. The most paradigmatic example would be Cirque du Soleil. The traditional circus industry, which still exists today, is a very old activity created by the Englishman Philip Astley in 1768. Traditionally, its strategic segments have been children and the adults who accompanied them. The circus product basically consisted of humour, clowns, acrobats, jugglers and animals and their tamers. In the traditional circus, its sources of income came from ticket sales and concessions or food and drink products sold during the performance. The music is not live, it is recorded and the costumes are discreet. There is no story told, but the performances follow one after the other. Performers were tempted to be "prima donnas" wanting to capture mostly business value. The attributes of the product/service must be coherent with the targets served. In the traditional circus the price is measured-low and there is usually intense sales promotion. There is no philosophy of innovation and internationalisation is very low. For all of the above reasons, it is usually a business with very low profitability rates (economic and financial). Suddenly, in 1984, a Canadian entrepreneur Guy Laliberté decided to reinvent the circus sector. He knew the traditional circus very well because he came from "that world", he was an artist from the traditional circus world. Dipole Method - Blue Ocean Strategy 4.1.

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This is going to be an element that we are going to see very often: successful entrepreneurs know a lot about their business, in fact they know it because they come from that activity. Laliberté reinvents the circus business: it now focuses its business on the strategic segments of adults (of course children can also go) and re-designs the "circus product". With the hybrid or dipole innovation method, it redefines the product where there is some attribute that disappears and some that is brought in from other industries. According to the strategic segments served, certain attributes disappear and appear in Cirque du Soleil: - They disappear: • Animals and tamers (with excellent effect on logistics and business costs). • There is no "common thread" in the show. • That artists are "prima donnas" who want to appropriate the value of the business • Low prices and strong sales promotion. . - They appear: • Extraordinary live music and staging where a story is told. This is brought from other performing arts such as opera, theatre and music hall. • The final product also attracts companies for their VIP clients, suppliers, etc. who come to sponsor the Cirque du Soleil tours and thus new sources of income for the company. • Prices are high and unpromoted, in line with those of the shows with which they now compete. • Strong internationalisation and innovation with the launch of new shows.

In the traditional circus, there were no competitive advantages, the only way to fight among them was by lowering the price, ultimately decreasing margins and entering "oceans of blood". The innovation proposed by Cirque du Soleil is the search for new "blue oceans" where competition is irrelevant. Cirque du Soleil no longer competes with traditional circuses, it has "changed oceans".

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This innovation theory of the search for "blue oceans" was proposed by W. Chan Kim and Renée Mauborgne in their book Blue Ocean Strategy.

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The Blue Ocean strategy:

Design Thinking 4.2.

It is an innovation tool that is widely used today. It is a method for generating innovative ideas that focuses its effectiveness on understanding and providing solutions to the real needs of users. It comes from the way product designers work. Hence its name, which literally translates as "Design Thinking".

It began to be developed theoretically at Stanford University in California (USA) in the 1970s, and its first profitable application as "Design Thinking" was carried out by the design consultancy IDEO, which is today its main precursor.

According to Tim Brown, current CEO of IDEO, Design Thinking "is a discipline that uses the sensibilities and methods of designers to match the needs of people with what is technologically feasible and with what is technologically feasible for an organisation to do. European Open Business School

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viable business strategy can turn into value for the customer as well as a great opportunity for the market".

Design Thinking is developed following a process in which its 5 differential characteristics are highlighted: Generating empathy: we must understand the problems, needs and desires of the users involved in the solution we are looking for. Regardless of what we are developing, it will always involve interaction with people. Satisfying them is the key to a successful outcome. Teamwork: as it values the ability of individuals to bring uniqueness to the table. The generation of prototypes: as it defends that every idea must be validated before being assumed as correct. Design Thinking favours the identification of failures, so that when we find the desired solution, these have already been solved.

All this in an atmosphere that promotes playfulness. The aim is to enjoy the process and, as a result, to reach a state of mind in which we can unleash our potential.

During the process, techniques with a high visual and plastic content are developed. This puts both our creative and analytical minds to work, resulting in innovative yet feasible solutions. The process of innovation and Design Thinking arises from a possible problem and goes through four well-defined phases: European Open Business School

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• Clarification phase: this is a phase of observation and deep understanding of the problem, sometimes re-formulating some part of it. It also involves looking for an area of opportunity. • Ideation Phase: in this phase some idea/prototype of a solution to the problem is already established. • Development Phase: the chosen solution/prototype is tested and tested. • Implementation Phase: the solution given to the problem is extended in a generalised way.

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Some examples:

Target Reaching consensus as a group. Description Description

This technique, created by J. Donald Phillips, consists of creating groups of 6 people, who will take 6 minutes to discuss each point on a specific topic. When they have finished debating and drawing conclusions in 6 minutes on the first point, they move on to the next. In this way, everyone is encouraged to contribute and participate in the decision-making process.

Target

Identify new trends related to the challenge we face. Description

We will research through the Internet, reading magazines, newspapers, etc., what are the latest trends related or not to the sector in which we work, as long as they are applicable to our possible solutions. We will research the latest trends related or not to the sector in which we work, as long as they are applicable to our possible solutions. They will allow us to make decisions in line with current trends and create innovative solutions. They can be social, technological, political, etc. trends.

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2EMHFWLYH 7R NQRZ WKH FKDOOHQJH DescripWLRQ

7KLV WHFKQLTXH DLPV WR HQVXUH WKDW ZH NQRZ WKH IXQGDPHQWDOV RI WKH FKDOOHQJH ZH DUH IDFLQJ ,W FRQVLVWV RI VWXG\LQJ WKH SUREOHP LQ GHSWK WDNLQJ LQWR DFFRXQW GLIIHUHQW DVSHFWV RI WKH SUREOHP 7R GR WKLV WKH IROORZLQJ TXHVWLRQV PXVW EH DQVZHUHG :KDW LV WKH SUREOHP" :KR LV LQYROYHG" :K\ VROYH LW" +RZ UHOHYDQW LV WKH SUREOHP" :K\ VROYH LW" +RZ UHOHYDQW LV WKH SUREOHP" Si somos capaces de responder de forma concisa a estas seis preguntas, seremos capaces de dimensionar nuestro reto. It is one of the most widely used methods in the modern entrepreneurial process. In the early stages of the entrepreneurial project, it allows a global vision of the project to be contemplated, even if not yet in a very detailed way. On a CANVAS sheet, the entrepreneur reflects on the critical elements of the project. It was first developed by Professor Alexander Osterwalder in his book "Business Model Generation" and is a "canvas" consisting of nine major building blocks that must be written or developed in a specific order. In the case of a project consisting of a "market place" or digital platform where there are "suppliers" and "demanders", think, for example, of an Aibnb or Uber model, it would be convenient to make a CANVAS for each one, one for the "suppliers" and one for the "demanders". European Open Business School 4.3. Canvas Model (CANVAS)

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The other for the "providers" and the other for the "demanders". In the case of Airbnb, one for "hosts" and one for "guests".

1º) Market Segments: the driving vector of any entrepreneurial project, and which we will return to in the later section on "the business idea", has to do with what the Americans call "the pain factor", in short, what needs and desires our project is going to satisfy better than the current existing offer and for which potential customers would pay for it. So it seems that the key words are "needs and (real) desires" that we are going to satisfy, that our value proposition is better than the existing offer and that potential customers are willing to pay for it.

So in this first "quadrant", we define the different groups of people the company is targeting, who are we going to target? Who do we think we can make their "life easier and more comfortable"?

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It may be that even at this preliminary stage we identify market segments. Customers belong to segments if: • They have different needs (different offer) • Different distribution channels are needed to reach them. • They require a different kind of relationship • Their rate of return is different.

2nd) Value Propositions: once we have "matured" the needs and/or desires (the pain factor) that we are going to satisfy, in this section we reflect on our value proposition: : • What problem do we solve for the customer? • What need are we meeting? • What makes me different from the rest of the offer?..... this is important, think about our element(s) of differentiation. • What values do we bring to each customer segment?

Some value propositions can be focused on: • Innovative products with new solutions • More affordable price • Design • Risk reduction • Brand and status • Etc

3º) Channels: this is an important issue, sometimes we think a lot about the product/service and it is also critical to ask "how will our product end up in the hands of our customers? "This is perhaps more critical when it is a physical product and the logistics function is involved. If our product is digital, we also have to keep thinking about channels and the "commercial approach" to the market, the only advantage will be that the delivery is digital or "download". In short, which communication, distribution and sales channels establish contact between the company and the customer? European Open Business School

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We must consider all phases of sales: a) Information: How do I make my product known? b) Evaluation: How do I help the customer to evaluate my product and make the purchase decision? c) Purchase: how can they buy? d) Delivery: How do I deliver my value proposition to the customer? e) After-sales: what after-sales service do I offer? 4º) Customer relations: it is important to establish a relationship with customers, both from the initial phase of customer acquisition and in the subsequent phases of customer loyalty and sales upgrading. In short, in this section we define how do I establish a relationship with the customer? In short, how do I establish the process of attraction/loyalty/sales stimulation (let's not forget "communities" and "collaboration"). 5º) Source of income: in this phase, the business model must be defined in terms of income:

• What am I going to charge? (what and how much) • How and why? (price, commission, advertising, etc) • How much of the total does each segment account for? • What will be "free"? and which Premium?

6º) Key Resources: on the left side of the CANVAS we start by making the Key Resources explicit: what key resources do our value proposition, distribution channel, customer relationship and revenue sources need? These key resources may include • Physical (offices, facilities, etc.) • Human (people we need to have and the talent required) • Licences (in case you need any kind of patent or licence for the project)

• Economic (economic resources needed in a first sizing of the investment plan of the Project and how it is going to be financed).

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7º) Key Activities: in this section we explain the key activities of the project. What key activities do our value proposition, distribution channel, relationship with customers and sources of income require? These key activities may include • Design of the project website and all e-commerce processes. • Production activities • Community building • Information management and analytics 8º) Key Partnerships: this section explains the possible alliances with key partners for the project. This is an increasingly important aspect, to determine the alliances and key partners of our project. Who are our key partners? And our key suppliers? Determine possible key external organisations for the development of the business model. 9º) Cost Structure: just as we have defined the Revenue Source, we have to define the cost structure. What are the most important costs of my business model? What are the most expensive key resources?

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4.4. The 4 Lenses of Innovation.

It is a tool for finding insights. It proposes 4 lines of action: questioning paradigms, identifying trends, maximising the use of resources and identifying unmet needs. In this way, it covers a wide range of fronts: the history, the market, the company and the client; facilitating the identification of spaces or opportunities to propose innovations. It is used to find insights (not directly to generate ideas), by applying each lens. The company (by doing field work, not just desk work), can find spaces in which to propose innovations, both in the relationship with its customers and in the way it operates.

It arises from an alternative way of looking at things: an angle of vision that allows innovators to look through the familiar and find the unseen. Four essential perspectives - four "sensory lenses" - seem to dominate the stories of the most successful innovations, and often characterise the entrepreneurs or companies behind them.

1) The first lens is to "challenge orthodoxies": questioning the deep-rooted dogmas in business and industry about what is right and wrong.

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drives success. The first thing we discover about radical innovators is that they are, almost by definition, mavericks who go against the grain. They take a piece of conventional thinking - something that everyone in an industry has accepted as an absolute truth - and turn it upside down. 2) The second lens is "tapping into trends" - finding the patterns of trends that no one has noticed that can substantially change the rules of the game. Radical innovators are not trying to predict the future or imagine what the world will look like in ten years' time. They tend to be people who are aware, at some deep level, of things that are already fundamentally changing and who understand the powerful promise in those things in ways that others do not. 3) The third lens of innovation is "leveraging resources". Radical innovators see their companies not as business units or organisational charts, but as portfolios of competencies and strategic assets. It is usually difficult to see things like skills, processes, technologies, assets, and values as totally independent entities because they are fully integrated into a company's current business model. But radical innovators have the talent to separate particular skills and assets from the existing business and then leverage them by their own virtue to generate new growth opportunities. The fourth lens is "understanding needs". Radical innovators have deep empathy: they understand and feel the unspoken needs of their customers. They move away from traditional market research methods, relying on the "getting into the customer's skin" approach. They recognise needs that customers do not yet know they have. Or they solve a common frustration in a way unimaginable to people - which is precisely why they are not articulating that need or asking for a product, service or business to satisfy it. 4)

As an example: applying the 4 lenses tool to the real estate industry we observe that

1) We have traditional paradigms such as "To rent a property you need guarantors". Is this really the only - and the best - guarantee for landlord and tenant? 2) Looking at the trends we can see that the main dream of the new generations is not to own their own home, the under 30s are more willing to be nomadic, what are the implications?

3) the third lens corresponds to underutilised resources, real estate agents have a lot of information about their clients that they do not use. what could a real estate agent offer to their client base, as they know the dimensions of their house, their budget, whether or not they are buying new and, finally

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4) The more the payment plan is adjusted to the needs and cash flow of the client, the easier the purchase decision will be, and as such, the more people will want to invest in real estate projects.

4.5. Gamific ation

Gamification refers to a form of mainstream market research developed by Luke Hohmann in which customers play a set of directed games as a means of generating feedback on a product or service

The research is primary because the data collected is collected directly from customers or prospects, and is intended to answer a research question.

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(Secondary research is information previously gathered by others, usually through primary research, that may or may not address a specific research question). ) The "customers" playing innovation games are commonly direct recipients or consumers of a specific product or service. However, in some cases, players can be any person or system that sees or is affected by a product or service.

The innovation games are led by a facilitator whose responsibilities include: :

• Explain the games to be played. • Control the pace of each game. • Monitor participation levels. • Manage the timing of the general gaming event.

The successful operation of an innovation game relies on collaborative play between participants and a set of observers drawn from disparate functional groups within an organisation. For example, a typical game configuration for word processing software might include participants from two or three corporate customers along with observers comprising the product quality assurance manager, technical architect, product manager, developer, sales executive, or anyone else on the product. team. Arguably the most important observer is the product manager because that person is responsible for acting on the data generated by the game. However, a single observer cannot capture all of the non-verbal and nuanced communication that players exhibit, so all observers play a significant and irreplaceable role in the effective utility of the game. However, any number or variety of innovation games can be invented, combined or adapted from other game environments. All of these games have strengths and weaknesses that limit their applicability to specific types of problems. These strengths and weaknesses are expressed in six separate dimensions: 1. The degree of open exploration: how much, or how little, participants are constrained in their interactions. 2. The degree of scalability: the number of customers who can play the game at any given time. 3. The degree of physical preparation: what kind of supplies or materials are needed to play. European Open Business School

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4. The degree of market readiness: how much background effort is needed to provide data or content for the game. 5. The degree of client preparation: what pre-game activities, if any, to require of participants before entering the game environment. 6. The time frame of action: how long after the game is completed before the participant expects the improvement of a product to reflect the results of the game.

There are many ways to innovate while playing and practising. Here are some of them:

• Prune the product tree: The branches are the main areas of functionality of a product and the leaves are its features. It aims to give a holistic and balanced view of the characteristics that our product should have.

• Remember the future: Customers imagine a day in the future after having used our product and describe their experience and why our product 'made them happy'. In this way, customers tell us in more detail what they expect our product to be like. • Spider web: This is about discovering relationships between products. The product, the object of study, is placed at the centre, and customers are asked to draw other products and services that they consider related to our product. In this way, we will better understand the ecosystem in which our product moves in the minds and daily lives of customers. . • The apprentice: Actually this game is not exactly for clients. It is about product designers actually doing the function or job for which the product is intended. For example, if they are designing an oven, they do actual cooking exercises. It's obviously about understanding customers and building empathy with them in the product design team

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