MANUAL CREATIVITY AND BUSINESS INNOVATION

MANUAL CREATIVIDAD, INNOVACIÓN Y EMPRENDIMIENTO

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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European Open Business School