6/8 Value innovation

What is it? The perceived benefits (utility, satisfaction) that a product or service provides to
customers. Cocreation between the company and the customer validating.
Innovation: about reconvening, existing things. Is the process of introducing new ideas,
methods, products or services that create significant positive change or value.
Difference between creation: creating a thing that never existed before.

Who is the main actor of value innovation? Who is deciding the value that we need to
create? The customer. Focus on the customer to analyze variations, know them, their
present needs and explore future needs as well.
How? How do we deliver the value? in a way that the customers are expecting to. The
company is building the proposal and the customer is catching this proposal.
What? What are we delivering? The product, the features. Two dimensions, the
organizational side and paying attention to what the customer will use (be connected to the
customer).

Creating a new demand.

The goal of value innovation is to create new demand.
Wrong ideas that company place (assumptions)
● Ideas nobody has had before: la innovación no implica inventar algo completamente
nuevo, sino mejorar, adaptar o combinar ideas existentes de una manera creativa
para ofrecer más valor.
● Big success requires big resources
● Innovation breakthroughs: este mito sugiere que sólo los avances radicales que
transforman por completo una industria son considerados verdaderas innovaciones.
Sin embargo, no toda innovación tiene que ser revolucionaria para ser valiosa o
exitosa.

Innovation management
innovation is a capability, an ability and adopted for convenience. We can manage it.
Innovation is just a resource where we can create value.
3 essential ingredients to feed and sustain both ideation and employee-driven innovation:
● Recognition: fomenta un ambiente donde los empleados sienten que sus ideas son
valiosas.
● News: tendencias, novedades, nuevas ideas y cambios en la industria alimentan la
creatividad.
● Feedback: mejorar ideas y propuestas
● Company information: es vital que los empleados tengan acceso a información clave
sobre la empresa, como la visión, los objetivos estratégicos y las prioridades. Les
ayuda a alinear sus ideas innovadoras con lo que la organización necesita.
Solving the right problem for the right people
Determining innovation opportunities. 3 pressures
● Shifting customer preferences→ How are customers preferences changing? (
cambios culturales, nuevas expectativas, avances tecnológicos y tendencias de
consumo)
● Emerging competition→ Are there competitors emerging that threaten the future? (es
probable que aparezcan nuevos competidores que ofrecen productos o servicios que
desafían el statu quo, lo que puede amenazar a las empresas establecidas)
● Emerging technologies→ What new technologies are impacting the way we work, or
the way customers get value? New platforms (las empresas deben estar al tanto de
las tecnologías que pueden transformar sus industrias)

Learning
Learning is the core of innovation, and it needs to be done early and often
First, we need to recognize its value and convince the company of it too.
Then exploring and testing assumptions.
Lastly, understanding the need for discipline, you need to make innovation a goal.
Learning requires discipline.

Understanding the three skills of an innovator

What new skills should be encouraged and trained in order to innovate?
● Surfacing opportunities for innovation (descubrir oportunidades para innovar)→ focus
on customers
● Identifying ideas for innovative solutions → thinking expansibly and creatively about
how to meet your customers and meet problems. How to push the boundaries to get
ideas and inspirations from inside and outside the company.
● Testing to develop your ideas and ensure success→ where the innovation happens.
Learn to identify what we don´t know or are assuming about our innovation and turn it
into questions we can answer. What tests work best for them, and then execute them
(not only to confirm what we believe, but also look at our customers and decide how
to operate), in this step is important to understand that failure is learning, and
following a straight path may not be the way.

Un innovador debe ser capaz de identificar oportunidades, generar ideas creativas y

probarlas de manera efectiva, entendiendo que los fracasos son parte del aprendizaje para
alcanzar el éxito.

Creativity is thinking of something new.

Innovation is the implementation of something new. Innovation starts with spotting a need
or an opportunity. This might be a different approach, a new process, or an improvement.
7 “must-have” for innovation management include
- Cultural diversity
- Encouragement of unproven ideas
- Listening to different points of view
- A meaningful workspace
- Motivation
- Flexibility
- Rewards for collaboration
13/8 Disruption
Change or transformation resulting from technologies and practices that affect business
models, management, or enterprise capabilities in such a way that the speed of
interpretation and assimilation itself becomes a challenge.

The DNA of disruptive innovation

DNA: is the fundamental essence or core elements that define something's identity,
characteristics, or nature. It represents the underlying blueprint or code that influences the
unique traits, qualities, and behaviors.
● Innovations is not just about creativity and intelligence, it's more connected to specific
skills
● Innovation drives growth, competitiveness and long–term success. Innovations also
reshape the business landscape from time to time (pueden modificar la forma en que
las empresas operan, creando nuevas oportunidades y desafíos en el mercado)
● Innovation relies on certain key traits and behaviors that distinguish innovators from
others (identificar oportunidades, pensar creativamente y experimentar).

La innovación va más allá de la creatividad; es el resultado de habilidades y

comportamientos específicos que permiten a las empresas adaptarse y sobresalir.

The discovering of skills

The innovators skills
1. Associating: create connections between unrelated ideas or concepts to generate
innovate solutions
2. Questioning: trying to elaborate. Challenging the status quo and asking probing
questions to uncover new opportunities and insights.
3. Observing: actively observing the world around them and seeking out diverse
experiences to gain new perspectives and ideas.
4. Networking: building diverse networks and collaborating with individuals from
different backgrounds and disciplines to access new knowledge and perspectives
5. Experimenting: taking risks and experimenting with new approaches, ideas, and
prototypes to learn and iterate rapidly.

The DNA of most disruptive organizations

The elements of DNA
➔ People: projection of innovator's DNA (values, personality)→ working,
experimentation. Managers must monitor how well principles are put into practice.
Liderazgo en la innovación: Los altos ejecutivos de estas organizaciones
lideran el cambio innovador y son buenos en el descubrimiento (con un
"discovery quotient" mayor al 75%). Esto significa que están capacitados
para encontrar nuevas oportunidades y fomentar la creatividad en sus
equipos.
Monitoreo y mantenimiento: Los líderes también se aseguran de que haya
suficientes personas con altas habilidades de descubrimiento en todas las
áreas de la empresa.
➔ Processes: experiment “all the time”, tolerance to failure.
Fomento a la experimentación y diseño para descubrir talentos: Los
procesos de la empresa están diseñados para que los empleados se animen
 a asociar ideas, cuestionar, observar, experimentar y hacer conexiones. Las
organizaciones disruptivas crean entornos donde el fracaso se ve como parte
del proceso de aprendizaje. Los procesos están estructurados para contratar,
entrenar, recompensar y promover a personas que tienen habilidades
innovadoras.
➔ Philosophies: sense of existence of the company. Innovation is everyone's job,
disruptive is part of our portfolio, deploy project teams, take smart risks. Distinctions
that the company has compared to others.
Filosofía 1: La innovación es trabajo de todos, no solo de I+D: La
innovación no es exclusiva del departamento de Investigación y Desarrollo
(I+D), sino que es una responsabilidad compartida en toda la organización.
Filosofía 2: La disrupción es parte del portafolio: La empresa se
compromete a incluir la disrupción en su cartera de proyectos. No se
conforma con el status quo, sino que busca activamente cambiarlo.
Filosofía 3: Implementar equipos de proyectos pequeños y organizados:
Las organizaciones disruptivas tienden a organizar equipos de innovación
pequeños, altamente focalizados y con autonomía para moverse rápido.
Filosofía 4: Tomar riesgos inteligentes: Aunque estas empresas asumen
riesgos, lo hacen de manera calculada, siempre buscando riesgos
inteligentes que puedan generar grandes recompensas.
The DNA into practice
2 prototypes: delivery driven and discovery driven
● Discovery driven person that’s looking for new ways of thinking, explanations. E.g.,
product development, marketing. Estos equipos son más innovadores y están enfocados
en la creación de nuevos productos o servicios, o equipos que deben ser innovadores, pero
también cumplir con los plazos y las expectativas.
● Delivery driven more operational. E.g., finance, operations. Indica que estos equipos
son más eficientes en la ejecución que en la innovación. Por ejemplo, los equipos de
finanzas se centran en cumplir con reportes, presupuestos y otras tareas concretas.

Balancing discovery and delivery skills in a team or company

Discovery- driven
● Associating
● Questioning
● Observing
● Idea networking
● Experimenting
Delivery-driven (more traditional)
● Analyzing
● Planning
● Detail-oriented
● Implementing
● Self-disciplined

Eje vertical (Discovery skills): Este eje mide las habilidades relacionadas con la
innovación, la creatividad y la capacidad de explorar nuevas ideas y oportunidades. Cuanto
más alto esté un equipo en este eje, mayor será su habilidad para descubrir y desarrollar
nuevas soluciones o productos.
Eje horizontal (Delivery skills): Este eje mide las habilidades para ejecutar, implementar y
entregar proyectos o productos. Cuanto más hacia la derecha esté un equipo en este eje,
mejor será su capacidad para cumplir con plazos, ejecutar tareas y entregar resultados
concretos.

Cuadrantes del gráfico:

● Arriba a la izquierda (Discovery-driven): Equipos con altas habilidades de

descubrimiento y bajas habilidades de entrega. Son más creativos e innovadores, pero no
son tan eficientes en la ejecución. Ejemplo: Un equipo de desarrollo de productos que se
centra en generar nuevas ideas, pero que necesita mejorar en la implementación.
● Abajo a la derecha (Delivery-driven): Equipos con altas habilidades de entrega y bajas
habilidades de descubrimiento. Son muy eficientes en ejecutar y entregar proyectos, pero
menos innovadores. Ejemplo: Un equipo de operaciones que cumple con los plazos y
mantiene la eficiencia, pero que no está involucrado en el desarrollo de nuevas ideas.
● Centro (Balanced): Equipos que logran un equilibrio entre las habilidades de descubrimiento
y las de entrega. Aquí, el gráfico destaca dos tipos de equilibrio: bajo equilibrio y alto
equilibrio. Ejemplo de alto equilibrio: Un equipo de marketing que es tanto creativo como
eficiente en la ejecución de campañas.

UVA 2 Business patterns

Interviews
All successful innovations solve important problems customers have.
You have to understand your customers very well.
Interviews are important to learn and discover problems or fresh ideas

Main benefits you will get from gathering more information from customers
● Better understand a customer underlying problem and this can feel inspirational,
providing fresh ideas for solutions
● If you already have an idea, you can see if this idea addresses meaningful problems
for customers
● Interacting with customers generates real information and evidence that you can use
to get others on board with your projects.

A powerful way to interact and learn from customers are the INTERVIEWS. There are
structure conversations that follows 3 steps
1. Consider what you are trying to learn (think about your business)
2. Ask questions (specific in the past, experiences they have, not about the future)
3. Ask open ended questions (to understand more deeply)

Identifying and testing assumptions

When we have an innovative idea we don't know if it will be successful, it's uncertain.
We have to identify assumptions early so we can explore and test these ideas to help us
learn. Testing these assumptions about innovative ideas can lead to failure.
How do we test assumptions to increase success?
4 methods to use before invest to interact with customers or potential customers and define
or redefine our ideas to ensure they are successful
● Ask: When you're still uncertain about your idea and exploring, ask for feedback.
● Show: If still unsure, show the idea to customers through prototypes to see their
reactions and preferences without fully building anything.
● Offer: When you're more confident but need to validate, offer a creative way for
potential customers to commit before investing money in building the solution.
● Deliver: When you're confident and ready, deliver a simplified version of your product
to see if customers find enough value to keep coming back.

Intelligence failure vs predictable failure

Preventable failure: when we know how to avoid failure but for whatever reason we didn't
stop it (wrong person on a job despite knowing they were not qualified). Failure that could
be avoided.
Intelligent failure: we know the risks that are going on, we identify the assumptions, we learn
from the failure and the cost is as small as possible.

Business model patterns

Pattern: something that happens regularly and is predictable
If a business model is regularly repeated by more than one successful company it is called a
business model pattern.

1.Affiliation Ayudas a otros a vender productos, y la empresa se beneficia sin hacer más
ventas o marketing (ej: Amazon o influencers).

2. Aikido: Ofreces algo completamente opuesto a lo que hace la competencia, atrayendo a

clientes que prefieren alternativas diferentes (ej: Nintendo).

3. Hidden Revenue: El ingreso proviene de un tercero, no del usuario directo. Por ejemplo,
Spotify ofrece música gratis y los anunciantes pagan por mostrar anuncios.

4. Crowdsourcing: Resuelves problemas pidiendo ayuda a muchas personas en línea,

quienes pueden ganar premios si su idea es elegida.

5. Customer Loyalty: Fomentar la lealtad del cliente ofreciéndole valor extra o

recompensas especiales (ej: programas de puntos).

6. Leverage Customer Data: Ganas dinero usando o vendiendo los datos de los clientes
para mejorar publicidad o vender a otros.

7. Direct Selling: Vendes productos directamente al cliente, sin intermediarios, lo que

ahorra costos y mejora la relación (ej: Tupperware).

8.E-commerce: Vendes productos o servicios exclusivamente en línea, reduciendo costos

de tiendas físicas.
9. Lock-in Creas dependencia del cliente a tus productos o servicios, haciéndolo difícil o
costoso cambiar a otra opción (ej: Microsoft).

10. Franchising: Das licencia de tu marca a franquiciados que corren el riesgo de las
operaciones locales (ej: McDonald’s).

11. Freemium: Ofreces una versión gratuita de algo con la esperanza de que el cliente
eventualmente pague por la versión premium (ej: LinkedIn).

12. Peer to Peer (P2P): Conectas a personas directamente para compartir o vender
productos o servicios (ej: Uber).

13. Trash to Cash: Usas productos reciclados o usados para crear nuevos productos, casi
sin costos de recursos.

14. White Label: Permites a otras empresas vender tus productos bajo su marca,
satisfaciendo varios mercados sin desarrollar productos nuevos.

15. Target the Poor: Ofreces productos accesibles a personas con menos poder
adquisitivo, ganando por volumen de ventas.

16. subscription: Los clientes pagan una cuota regular por acceder a productos o servicios
(ej: Netflix).

17. Robin Hood: Vendes el mismo producto a los ricos a un precio más alto que a los
pobres, ganando más de los ricos y beneficiando a los pobres.

18. Rent Instead of Buy: Los clientes alquilan productos en lugar de comprarlos,
accediendo a ellos temporalmente.

Why do business model patterns fail?

Some business model fails because they missed the moment in which they should have left
their successful path and rethink their business model
They missed out on radical innovation because they were too busy managing daily business
and serving current clients instead of envisioning future opportunities.

Building a culture of innovation

Types of innovation

➔ Disruptive Innovation: takes the established order and turns it on its head, fast. Is a
process whereby a smaller company with fewer resources can successfully
challenge established businesses. Think Uber, Dyson, Netflix, and Virgin.

➔ Incremental innovation: It takes things slower. That doesn't mean it's not radical.
The World Bank Group's Innovation Policy Platform suggests that “incremental
innovation concerns an existing product, service, process, organization or method
whose performance has been significantly enhanced or upgraded."
Innovation in the workplace
● Building a culture of innovation in the workplace requires a commitment from
management. They must recognize its importance, manage its processes, and
celebrate its results.
● Simultaneous improvement of performance and quality of working life is possible
under certain conditions such as the participation of employees in innovation and
change projects.
● Open innovation gives everyone in the organization the opportunity to contribute their
ideas. This can help focus the ideas and help you draw out the real value.
● The best innovation management and ideation system include opportunities for
feedback.

Feedback
Offering feedback is crucial, but how you get feedback is important too.
We need to offer open discussions, we can talk about peer-to-peer ranking, we can talk
about ideas and not people who gave those ideas , we can find lots of techniques but we
need to value feedback. We can keep feedback anonymously to avoid bad reactions

To create a culture of innovation, managers need to:

- have open discussions
- gather ideas
- generate actions from ideas
- create continuous improvement
- bring skilled people together
- deal with tsunami of ideas (idea storage or brainstorming)
- rate ideas (the more popular ideas is, the more likely its to succeed when finally
implemented)
- encourage ideas

Always having in mind this recognition, ongoing communication and management

transparency

—------------------------------------------------------------------------------------------------------------------------
Ideas, creations and innovation
Ideas produce benefits (for society-quality of life, government, markets and companies)
Idea→ beliefs (theory, research, science)
Invention→ creativity (design, engineer, prototype)
Innovation→ experience (commercialization, delivery, acceptance)

The incrementality of innovation

● Degree of added value→ value: appreciation you received for customer
● Degree of “newness”
 ➔ Incremental: refers to small, gradual improvements or enhancements made to an
existing product, service, process of technology. These innovations typically focus on
optimizing efficiency, adding features, or improving performance without
fundamentally changing the core offering.
Degree of added value: low to moderate (improvements on existing features,
maintaining the same overall design and user interface).
Degree of newness: low.

➔ Substantial: involves more significant changes than incremental innovation. It

represents a notable improvement or upgrade that may change the way users
interact with a product or service, but still builds on existing technologies or
processes without being disruptive. For example the transition from traditional
gasoline cars to hybrid vehicles (offers a substantial improvement in fuel efficiency
and environmental impact, and cost savings on fuel).
Degree of added value: moderate to high (it adds considerable value to customers,).
Degree of newness: moderate (it isn't introducing an entirely new concept).

➔ Radical: refers to groundbreaking changes that create entirely new markets or disrupt
existing ones. It involves developing new technologies, business models, or products
that significantly alter the way things are done, often rendering old systems obsolete.
For example the invention of the smartphone which revolutionized communication,
computing, access to information. This changed drastically the consumer behavior
and created new markets.
Degree of added value: high to very high
Degree of newness: high.

Degree of added value:

1-2: Minimal enhancement or improvement to existing products/services. The innovation

offers slight advantages, but nothing that significantly changes the user experience or
market dynamics.

3: Moderate enhancement that adds noticeable value, improving existing products/services

but not revolutionizing them.

4-5: Significant or transformative enhancement that greatly increases the value of the
product/service, potentially changing how it is used or perceived in the market.

Degree of Newness (1-5)

1-2: Uses well-established technology or concepts with little to no modification. The

innovation is familiar to consumers and does not introduce new market concepts.

3: Introduces some new elements or combinations of existing technologies, creating a novel

approach but not entirely new to the market.
4-5: Involves groundbreaking technology or a completely new concept that is unfamiliar to
the market, potentially creating a new industry or significantly altering existing ones.

The business model innovation

● Innovation is about learning from others and implement it in your business model
● Not sticking to a successful business model forever
● Learning and reinventing
● Involves rethinking and redesigning the components of the entire business model of
the company in terms of gain competitive advantages

How to innovate, 4 steps

1. Initiation ----- analyze current model
2. Ideation ----- confront current model. Challenge your assumptions and logic of your
business, review business model innovation patterns.
3. Integration ----- check consistency of business model
4. Implementation ----- “awake the beast” = start work with the new model. Create a pilot and
test it and return to the design phase, verify, or falsify the assumptions of the new business
model.

Incrementality of innovation
➔ Degree of added value (Y): how society, government, markets, companies consider
the value that we are delivering.
➔ Degree of “newness” (X): how new is the thing we are considering? Related to
novelty, how well this combination is received.
➔ Third axis is the Risk: by increasing innovation, you are increasing the risk. (risk
takers, risk avoidance)

10/9 UVA 3
● The logic and application of Blue Ocean strategy
● Where do I go from here?
● Can we go more practical?
● How can we be sure?
 ● The art of WAR

The logic and application of Blue Ocean strategy

● Create a new market, with a new value added.
● Competing in overcrowded industries is no way to sustain high performance.
● The real opportunity is to create blue oceans of uncontested market space.
● It's not about technology innovation
● Never use the competition as a benchmark (make the competition irrelevant by
creating a leap in value for both yourself and your customers)
● Reduce your costs while also offering customers more value (the perceived value
must compensate the cost of the innovation)

Red ocean strategy Blue ocean strategy

Compete in existing market space. Create uncontested market space.

Beat the competition. Make the competition irrelevant.

Exploit existing demand. Create and capture new demand.

Make the value-cost trade-off. Break the value-cost trade-off.

Align the whole system of a firm’s activities Align the whole system of a firm’s activities
with its strategic choice of differentiation or in pursuit of differentiation and low cost
low cost.

Trade-off: i need to decide if i would be the cheapest or to have the best quality, etc.
The blue ocean would be focused on how I can reduce the cost while keeping or increasing
the value for the customers.

Value innovation is a new way of thinking about and executing strategy that results in the
creation of a blue ocean and a break from the competition. Importantly, value innovation
defies one of the most commonly accepted dogmas of competition-based strategy: the
value-cost trade-off.

Traditionally, it is believed that companies must choose between:

1. Creating greater value for customers at a higher cost.

2. Creating reasonable value at a lower cost.

In other words, strategy is seen as a choice between differentiation (offering something

unique and valuable at a high cost) and low cost (offering a more economical product or
service with less differentiation). In contrast, value innovation seeks to achieve both
differentiation and low cost simultaneously. Instead of choosing one option over the
other, companies can create significant value for customers while keeping costs low. This is
achieved by redesigning the product or service offering in a way that breaks away from
industry standards and generates a new market space (a blue ocean) where competition
becomes irrelevant.
Where do I go from here?
Which factors of the offering should/have to change about the value innovation? If you want
to make a difference in a blue ocean strategy or create a new demand you have to innovate.
● We have to eliminate or reduce things that are not adding value to the customers.
● We have to raise things, offering something additional.
● And we have to create (innovation), something that has never been offered and
questioning if it will be valued for the customers.

User experience: is the experience that customer has when they contact my product or
service. In the blue ocean you have to think about this user experience.

How can we be sure?

The sequence
Step 1→ utility, Is the new idea really useful to people? Is there a strong reason why
someone should buy the new product?
Step 2→ price, Is the proposed price of the product one that most potential customers will
pay? (analyze)
Step 3→ cost, At the price you want to charge and with the anticipated volumes you will sell,
will you make a profit?
Step 4→ adoption, Will there be any major barriers that will stop you attaining your goals?
You have to analyze the context and potential barriers.

How the Art of War help me? What is the connection?

How you behave depends on what you have in front of you?
1. Know your competition→ understand your competitors strengths, weaknesses and
strategies to identify opportunities for differentiation and value creation.
2. Focus on strategy→ develop a clear and well defined strategic plan for creating
uncontested market space, aligning your resources and actions to achieve strategic
objectives.
3. Flexibility and adaptability→ develop a clear and well-defined strategic plan for
creating uncontested market space, aligning your resources and actions to achieve
strategic objectives (flexibility to change and adapt something to your strategy). Be
flexible and adaptable in response to changing market conditions, customers needs,
and competitive dynamic, adjusting your strategy and tactics as necessary to stay
ahead.
4. Timing and opportunity→ seize opportunities when they arise, timing your market
entry and strategic moves to capitalize on emerging trends or gaps in the market.
5. Effective leadership→ lead with vision, decisiveness, and integrity, inspiring and
guiding your team to execute the Blue Ocean strategy effectively and overcome
obstacles.
6. Understanding customers needs→ gain deep insights into customer needs,
preferences and pain points (customers claims), tailoring your offering to address
unmet needs and deliver unique value.
 7. Innovation and creativity→ foster a culture of innovation and creativity within your
organization, encouraging experimentation, risk-taking, and thinking outside the box
to uncover new market opportunities.
8. Resource allocation→ allocate resources strategically, focusing on areas that drive
differentiation and value creation, while minimizing investments in non.essential or
competitive areas.
9. Effective communication→ communicate your blue ocean strategy clearly and
persuasively to internal and external stakeholders, building alignment, support, and
enthusiasm for the strategic vision.
10. Continuous improvement→ embrace a mindset of continuous improvement and
learning, gathering feedback, measuring performance, and refining your strategy and
execution over time to stay ahead in the market.

Value innovation occurs only when companies align innovation with utility, price, and cost
positions.

Blue Ocean Leaderships

- Eliminate: Which acts and activities do leaders invest their time and intelligence in, that
should be eliminated?
- Reduce: Which acts and activities do leaders invest their time and intelligence, in that
should be reduced, well below their current level?
- Raise/increase: Which acts and activities do leaders invest their time and intelligence, in
that should be raised, well above their current level?
- Create: Which acts and activities do leaders invest their time and intelligence in what they
currently do not undertake?
They focus on all managing levels, instead of focusing on day to day operations they
delegate, coach and empower.
Can we go more practical?
● Go from Red to Blue 4 steps: Caso Netflix
- Eliminate → commercials, ads, promotions, news to our email
- Reduce→ price, complexity of installation and conditions
- Increase→ customization, child.protection and mobility
- Create→ multi platforms, contects, availability

Leaders that, instead of having the focus on executive levels, have it on all management
levels. Instead of focusing on day-to-day operations, controlling, and playing it safe, they
delegate, coach, and empower. Innovative leaders, or the ones who incorporate the blue
ocean strategy, serve customers, they are not there to please the boss, they ask provocative
questions, and say what needs to be said when nobody wants to say it.

The art of war

Principle 1: Laying Plans
“All warfare is based on deception.” Never say your strategy out loud, play dumb. Don’t
show all your cards, you lose the advantage.
Principle 2: Waging War
Remember the cost of war before you engage in it, choose your battles wisely; Don’t get into
fights you cannot afford to lose. Many companies get into price wars between others, and
they end up decreasing their profits until they make none.
Principle 3: Attack by Stratagem
If you know the enemy and know yourself, you need not fear the result of a hundred battles.
You need to have self-awareness and knowledge about the enemy, in order to build better
habits.
Principle 4: Tactical Dispositions
Make yourself as strong as possible and then wait for the right moment. Wait for the
competitor to make a mistake. Patience and smartness are key.
Principle 5: Energy
Know when to spend or conserve your energy, work smarter not harder.
Principle 6: Weak Points and Strong Points
Avoid what’s strong and attack what’s weak.
Principle 7: Maneuvering
Smaller companies are more agile, don’t take the bait. Study the circumstances. Every
situation is different.
Principle 8: Variation in Tactics
Not to rely on the likelihood of the enemies not coming. Be unpredictable in your enemy’s
eyes. 5 dangerous faults of a general (recklessness, cowardice, a hasty temper, delicacy of
honor, over solicitude for his men). To fix these faults, be more careful, be courageous,
control your emotions, don’t be sensitive.
Principle 9: The Army on the March
Treating people nicely but strictly. If you're a leader you can’t be soft, make them understand
who is in charge. If there is no discipline, there is no productivity.
Principle 10: Terrain
If you know the enemy and know yourself, your victory will not stand in doubt; if you know
the terrain, you may make your victory complete. Know the environment.

Principle 11: Use of spies

Spies nowadays represent foreknowledge; we should know about the enemy from the
inside. Don’t do anything illegal, but you can make friends from employees of the
competition.

Multiple choice THE ART OF WAR

● The height of wisdom for a General is to win without a battle. Good Generals do not attack in
an open battle where the danger is mutual, but do it always from a hidden position, to kill or at
least terrorize the enemy while their men are unharmed as far as possible.
● A weaker army can defeat a stronger army through formlessness and speed. Take advantage
of the enemy's unpreparedness; travel by unexpected routes and strike him where he has
taken no precautions. Speed is essential in war. Be extremely subtle, even to the point of
formlessness.
● You can beat a more intelligent enemy by the sheer force of rapidity. In chapter II, he states
that a General, though naturally stupid, may nevertheless conquer through sheer force of
rapidity.
● Sun Tzu advocates that the best way to achieve peace is by a swift victory or, even better, by
defeating the enemy before the war is even begun. He writes, "to fight and conquer in all your
battles is not supreme excellence; supreme excellence consists in breaking the enemy's
resistance without fighting"
 ● It all depends on how you utilize your resources. How you utilize your resources best
determines your advantage. You can beat a much stronger enemy by focusing your weakness
against the enemy's weakness.
● Going to war without strategy makes success a mere gamble. Sun Tzu's The Art of War
emphasized "winning a victory and subduing the enemy without fighting is the highest
excellence" and "The best policy for the military operations is to gain victory by means of
strategy." It is always in the Chinese mind that the best way to win is by strategy.
● If you cannot win the battle, it is better to withdraw and think of another plan rather than lose.
● Sun Tzu advises you to focus on your strength and attack your enemy's weakness. Select
and concentrate on what you see as your strength, and annihilate your opponent by attacking
its weakest points rather than attacking it head-on. Only this way will the outcome be
favorable to you.

TODAS LAS PREGUNTAS DE LAS UVAS.

What do we need to consider when determining innovation opportunities?

We need to consider three main pressures:
1. Shifting customer preferences: Changes in cultural expectations, technology, and consumer trends.
2. Emerging competition: Potential threats from new competitors offering disruptive products or services.
3. Emerging technologies: New technologies that can transform industries

Explain the goal of value innovation and what it is about.

The goal of value innovation is to create new demand by delivering greater value at a lower cost. It's about
challenging industry standards, not choosing between low cost and differentiation but achieving both
simultaneously. The focus is on the customer and how to meet their present and future needs.

Why have some very successful business models eventually failed?

Some successful business models fail because companies miss the moment to rethink and innovate. They
remain focused on managing their current business and serving existing clients instead of envisioning and
adapting to future opportunities.

Choose one business pattern. Describe it and give examples.

Freemium: A business model where a company offers basic services for free while charging for premium
features. Examples include LinkedIn and Spotify, where users can access a free version but are encouraged to
pay for additional services.

### Which is the right pattern for Uber?

Peer-to-peer
### Which is the right pattern for Pinterest?
Hidden revenue

### Which is the right pattern for Tupperware?

Direct selling.

### Which is the right pattern for LinkedIn?

Freemium.

### Which is the right pattern for Lego?

Lock-in

True/False Section:
1. Innovation increases the value of a product, but it doesn't create a competitive advantage: False
2. It is not important to build a pilot (MVP) before implementation: False
3. Innovation is not about learning from others: False
4. The greatest enemy of tomorrow's success is today's success: True
5. Innovators generally adapt, refine, or combine business patterns: True
6. Successful innovators learn to re-combine: True
7. Innovation always requires big resources: False
8. Innovation starts with ideas nobody has had before: False.
9. The pioneers often get eaten by the wolves: True
10. Innovation breakthroughs are not always based on fascinating technology: True
---
Additional Multiple-Choice Section:
1. External pressure for LinkedIn's home recording due to Covid-19: Shifting customer needs or preferences.
2. Most likely to get a misleading response**: How frequently would you use something like this?
3. Primary reason for learning business innovation skills**: It can prepare you for future job requirements.
4. Not recommended for ideation**: Select ideas based on what is realistic to build immediately.
5. Psychological safety behavior: Acknowledge your mistakes.
6. Restructuring to persist through setbacks**: Create small, frequent efforts that allow the team to build on
what you're learning.
7. Most important reason to identify assumptions**: You know what to test and learn about.
8. Stakeholder's wrong assumption: The stakeholder assumes they know better than the customer.
9. Difference between "Deliver" test and traditional pilot: Deliver tests rely on a simple, manual way of
delivering value, while pilots typically use a production-ready solution.
10. Strong innovation mindset: I'm not always confident that an idea will work, but I like trying ideas out early
with customers and evolving it based on what makes sense.
---
### The Art of War Section:
1. Weaker army defeating a stronger one: Formlessness and speed.
2. Beat a much stronger enemy by: Focusing your strength against the enemy's weakness.
3. First thing before going to battle: count the costs of going to war.
4. Advantage not always from superior numbers: How you utilize your resources best determines your
advantage.
5. If you cannot win the battle: Withdraw immediately
6. Height of wisdom for a General: Win without a battle.
7. Unpredictability leads to: Succeed
8. Aim in war: Win quickly and with minimal loss.
9. Going to war without strategy: Makes success a mere gamble.
10. Beat a more intelligent enemy by: The sheer force of rapidity.
---
### Blue Ocean Strategy Section:
1. Production of a new market is easy: False.
2. Building defensive alternatives against Red Ocean sharks: True.
3. Opting for a Blue Ocean requires patience, persistence, and faith: True.
4. Value innovation as the backbone of Blue Ocean Strategy: True
5. Venturing into a market in the early phase comes with risks: True
6. Blue Ocean Strategy results from detailed research and analysis: True
7. Blue Ocean Strategy helps break free from traditional models: True.
8. Blue Ocean Strategy helps find uncontested markets: True
9. Blue Ocean is needed when supply surpasses demand: True
10. Red Ocean Strategy transforms mindset and recognizes opportunities: False
Clase UVA 4
● The agile values and principles
● Agility in companies
● The scrum master (ing)

Agile methodologies: UVA 4

● Understand the most common methodologies
● Analyze different cases where agile are applied
● Apply them following guidelines
Agile methodology focuses on delivering maximum value against business priorities in the time and budget
allowed, particularly when the drive to deliver is greater than the risk.

The agile values and principles

Not so general and not very detailed, is a balance.
Key concept: the value that activity is adding to your proposal.
4 values
● Agile values individuals and interactions over process and tools
Prioritizes the importance of people and communication within a team.
It emphasizes that effective collaboration and communication among team members
are essential for project success.
● It values working software in the IT industries over comprehensive documentation.
Values tangible results over extensive documentation
It emphasizes the importance of delivering functionals… to customers frequently,
rather than focusing solely on documentation.
● It also values customer collaboration over contract negotiations
Encourages close collaboration with customers throughout the development process
Understanding and meeting customer needs through continuous feedback and
iteration.
● It values responding to change quickly in order to following a plan
Change is inevitable in development
It prioritizes flexibility and adaptability, responding to change quickly and effectively
rather than rigidly adhering to a predetermined plan. Is pretty flexible in time.

The product or service we are delivering is accurate, and has the feedback of our client
because we receive feedback every month.

Agile frameworks- manifesto principles

1. Our highest priority is to satisfy the customer through early and continuous delivery of
valuable software.
2. Welcome changing requirements, even late in development. Agile processes harness
change for the customer’s competitive advantage.
3. Deliver working software frequently, from a couple of weeks to a couple of months,
with a preference for the shorter timescale (every 2 weeks)
4. Businesspeople and developers must work together daily throughout the project.
5. Build projects around motivated individuals. Give them the environment and support
they need and trust them to get the job done.
6. The most efficient and effective methods of conveying information to and within a
development team is face-to-face conversation.
7. Working software is the primary measure of progress.
 8. Agile processes promote sustainable development. The sponsors, developers, and
users should be able to maintain a constant pace indefinitely.
9. Continuous attention to technical excellence and good design enhances agility.
10. Simplicity —the art of maximizing the amount of work not done— is essential.
11. The best architectures, requirements, and designs emerge from self-organizing
teams.
12. At regular intervals, the team reflects on how to become more effective, then tunes
and adjusts its behavior accordingly.

Agility in companies

● Understand what customers wants

● Talent system needs to change: empowered employees, careers more meaningful
● Agile transformation is about technology transformation (more independent)

The scrum master(ing)

In the scrum framework, the scrum master is a key member of the agile team responsible for
facilitating and guiding the team through the scrum possess

Acts as a servant-leader, supporting the team in understanding and implementing scrum

principles and practices effectively

● Facilitating scrum events: organizes

● Removing impediments: identifies and removes any obstacles or impediments that
may hinder the progress of the Scrum team.
● Coaching and mentoring
● Protecting the team
● Fostering collaboration: culture of collaboration, trust and transparency within the
team.
● Builds a high-performing team
● Helps the team improve processes
● Fosters adoption of agile practices
● Supports the product owner

Is about building a high performing self organized team

Exposición de experto

● Scrum
● Kanban
● High-performing teams
Scrum . Different roles

Scrum supports incremental delivery in self-organizing teams and short-lasting sprints

● Scrum master: will be following the process and making sure that the team is high
performing and coaching it to be able to stick to the way of working.
● Team members: generally is composed of five softwares engineers and two quality
assurance
● Product owner: person that is in permanente contact with the clients or the
stakeholders, he will be having the meeting with the clients and knows what the
clients want the team to do.

This scrum work with different sprints

● From 1 to 4 weeks (generally 2)
● We have daily stand-up meetings: it only lasts 15 minutes, where the scrum master
needs to make sure that the whole team has the chance to speak. Be able to ask for
help or if they have a blocker that prevents them from working that day.
● Sprint planning: meeting that may last 1 or 2 hours in which we plan all the work that
we are going to do during the sprint. Generally occurs the first day of each iteration.
The product owner needs to be there.
● Sprint retrospective: this meeting happens at the end of the sprint, so, once every 2
weeks. It's longer, it can last more than an hour. The idea is to have a moment in
which the team can give some feedback guided by the scrum master.
● Sprint review: generally on the last day, together with the retrospective. Here we
record a demo of everything that will be sent to production.

Kanban
Is a visual method used to manage and keep track of work as it moves through the process.
Supports continuous delivery.
It's less focused on roles and events and focused on a workflow rather than sprints.
Visualize work by creating a visual model of the process.
3 columns to do in progress:
● New work items
● Design, development, testing column
● Completed work
The idea is to see how the work item or the card is moved from one column to the other and
during all the meetings we can be moving works to have them all completed.

High performing teams

Common attributes of high-performing teams
15/10 CLASE UVA 5
The big umbrella of Agile Methodology
How can we speed and short this cycle
1 step→ planning
2 step→ design
3 step→ development
4 step→ testing (early drafts to test)
5 step→ launching
6 step→ reviewing
7 step→ implementing

Approaches of Agile methodology

Scrum
● Sprint Planning: you go fast
● Daily Standup
● Sprint Review
● Retrospective
● Backlog Refinement
● Example: spotify, to develop and deliver features to customers
Kanban
● Visualize the workflow
● Avoid overloading
● Manage the flow
● Make it explicit
● Improvement
● Example: Amazon master K to manage work in its development
XP
● Pair programming
● Test-driven
● Continuous integration
● Refactoring
● Small releases
● Example: Google is using XP in its software development
● Foco en la calidad técnica mediante prácticas como la programación en parejas y
las pruebas automáticas.
Lean
● Eliminate waste
● Amply the learning
● Decide late
● Deliver fast
● Delete all that is unnecessary
● Empower the team
● Example: Toyota adopted this approach in some manufacturing process
Design thinking
Is a philosophy

Agile methodologies Design thinking

Focuses on iterative and incremental Focuses on understanding users deeply

development of products and solving their problems through creative
solution

Involves frameworks like Scrums, Kanban, Involves stages such as emphasize, define,
XP ideate, prototype, test

Emphasizes adaptability, continuous Emphasizes innovation and

feedback, collaboration human-centered design

The necessary steps

The blueprint of Design Thinking
● Empathize
● Define
● Ideate
● Prototype
● Test and refine

Empathize: In product design, when we are to understand how our customers feel, we can
provide them with solutions they need most. They will find much value in our product.
● Conduct user interviews and observations
● Know the attributes to put in our products
● Seek to understand emotions and motivations
● Build empathy maps to visualize insights
—-
● See what they see
● Appreciate them
● Understand their feelings
● Communicate your understanding
Activities to build empathy with your customer:
➔ User research: you interview your customer and use techniques to uncover what they
need and what successful solution must meet
➔ User testing: you observe customers using your product. You see what they like or
don't like or what is missing.

Define: clarify the situation and scope. Framing the problem.

Define problem statements and objectives
● Develop user journey maps to identify pain points
—---
The goal is to accurately define these questions to know what problems you need to solve.
● Who is experiencing the problem?
● What is the problem?
● Where does the problem present itself?
● Why does it matter? Why is it important that this problem be solved?
Ideate: generate creative solutions
● Brainstorm ideas without judgment
● Use techniques like mind mapping
● Encourage diverse perspectives and collaboration
—--
Explore how we might solve problems for our customers.
Customer-centric solution
Personalization→ tailored a solution for a very specific customer and problem
We have to understand who our customers are, their needs and what is the specific problem
to be solved. A common way to do this in design thinking is to develop human-center
problem statements. Is about a problem that needs fixing. Once you have that solid
foundation, you can begin to ask how might we solve that particular problem. How might we
solve it in a way that helps our specific customer?

Prototype: build tangible representations

● Create low-fidelity prototypes quickly
● User materials like paper, cardboard, or digital tools
● Iterate rapidly based on feedback
—----
Is anything you create in order to prompt customers to understand what they do, need, say
and feel. Anything you create in order to get customers to interact with this prototype and
provide you insights. Experimenting.
It focuses on learning about your customers, and how you might improve existing products
or how you can create new experiences.

Test and refine: evaluate and refine solutions

Gather feedback from users trough testing
—---
● Tests may reveal insights that sometimes redefine the problem
● You challenge your ideas and create opportunities to make them better
● The cycle of testing and refining your ideas are called iteration.
● Testing is about generating user feedback. Refine is what you do from testing

UVA 5: DESIGN THINKING EXPOSICIÓN DE EXPERTO

Human centered design means better products and better leadership.

Humancentered design is the practice of connecting with the needs and emotions of
customers to create compelling products and services. It's driven by a methodology of
connecting with and developing empathy for users,
This process of human centered design perfectly reflects the idea of democracy people
advocating for other people that don’t have a loud voice in the decision making process. It's
about talking to your users and stakeholders and then going back and expressing those
needs and emotions to the organization in order to innovate and problem solve.
Why it matters?
● Design thinking is a strategy for creative problem solving by prioritizing customer
requirements.
● Co-create solution with your customers
● Adapt design thinking so it works for you
Summary
Steps: fully understand the problem, explore a wide range of possible solutions, iterate
extensively through prototyping and testing, and implement through the customary
deployment mechanism.

UVA 6: EMERGING TECHNOLOGIES

Exposición de experto
● Channing society
● Crisis-Opportunity for innovation
● Pandemic 2019

Channing society
● Information society→ information and communication technology main drivers. Rapid
growth and use of information.
● Information economics→ studies how information systems affect an economy. Easy
to create but hard to trust and control

Crisis-Opportunity for innovation

● Crisis forces the acceleration and adoption of technologies, in order to adapt and
change.
Crisis that lead to innovation:
● Financial crash-2008 → cloud computing
● Second world war-1939 → first digital computers, nuclear technologies, first rockets
● Pandemic-2019→ new ideas and techniques, backsins. Companies adopted new
ways of doing things. Mergers and acquisitions.

Pandemic 2019
● Working from home
● E-learning
● Inequality: some people can not afford the technology and don't have access to the
internet.

UVA 7 CLASE
Difference between UX, design thinking and design sprint
UX→ you go in depth and is not limited by time

The accelerating point (upcoming technologies)

● Applied AI→ by 2030 using AI will be a stander business necessity
● Zero latency connectivity→ fast internet
● Aces vehicles→ autonomous, connected, electric and shared vehicles
● Biotechnology boom→ Advancements in healthcare, food and agriculture, consumer
products, sustainability and energy and material production. Molecular biology and
gene therapy will see significant development.
● Climate change mitigation
● Quantum computing→ major advancements are expected in aerospace, automotive,
chemicals, finance, pharmaceuticals, etc.
● Cloud and edge computing→ data sovereignty, reduce data transmission delays and
costs
 ● Immerse reality technology
● Digital-trust technologies and cybersecurity AI

Where “on earth” are we going?

● Technology acceleration→ increased scrutiny and technology ethics
● Work and next wave→ convergence of digital, bio and nano technologies and
material sciences. Developments in physical and mental health, wellness and new
manufacturing systems.
● Shift in power→ trade may be used increasingly as a weapon in power struggles and
be frequently be linked to national security and IP protection concerns
● The network power→ new business models, the role of the technology and the role
of the management.
● Restructuring of business→ specialization, disaggregation and outsourcing
● Business model ecosystem→ spreading information, declining barriers to entry, and
reduce coordination and transactions costs
● Human-centric economy→ in health, mobility, education and energy
● Smart adaptive infrastructure→ significant new investments, accelerated by climate
change and automation
● Society in flux→ sustainability, circular economy, equality, regulations, business and
society.

Some leading companies (in quantum computing)

● Toshiba
● Amazon
● Quantum computing Inc
● Microsoft
● IBM

12/11 CLASE UVA 8

● The new 8 things
● The impact innovation
● The things ahead

The new 8 things of the future

8 axis
1. Agile leadership: rotative leader. The opposite of long life leadership.
2. Cultural intelligence: sensitivity we need to have with the differences with foreigners.
3. Hybrid workforces
4. DEI (diversity, equity, inclusion)
5. Reskilling digital leadership
6. Metaverse collaboration
7. Sustainability-driven leadership
8. Blockchain governance

The impact innovation

● Technical driven innovation
● Social innovation
The things ahead
● Purpose-driven innovation: impact innovation often focuses on producing long term
benefits for communities and ecosystems, seeking to address root causes of issues
rather than offering superficial solutions. This type of innovation is built on clear,
intentional purpose, aligning with a broader mission beyond profit, such as
addressing pressing societal challenges like poverty, climate change
● Sustainability: preserve resources for future generations
● Focus: innovating in a way that meets current needs without compromising
environmental resources of the ability of future generations to thrive. Focusing on
maximizing reach without compromising quality or ethical standards.
● Scalability with positive impact:ensuring that positive effects can grow over time to
benefit more people.
● Systemic change: addressing core issues within systems (healthcare, education, or
energy) to create more inclusive and accessible solutions.
● Measurable impact: tracking and reporting on specific social or environmental
outcomes to assess success and areas for improvement. Requires accountability
through measurable outcomes that can demonstrate meaningful changes or impact
● Ethical and inclusive design: avoiding unintended negative consequences in
innovation processes to ensure fairness and equity. Creating products and solutions
with ethical considerations, ensuring innovations are incluse and designed to benefit
diverse groups.
● Collaborative innovation: combining resources, expertise, and influence across
public, private and nonprofit sectors to amplify impact. Impact innovation thrives on
collaboration, levering cross-sector partnerships.
● Resilience and adaptability: creating flexible solutions that can withstand adversity
and continue to provide value in fluctuating environments. Innovation that adapts to
challenges and is resilient.
● Value-driven leadership: integrating impact goals into every part of the business
model, from sourcing and production to customer engagement and end-of-life
product management. Impact innovation is not limited to a single product or solution
but encompasses a broader commitment to sustainability in all business practices.

SECOND EXAM→ mostly multiple choice

● Agile methodology (what is?, principles, umbrella of topics, values, customer centric,
fast as we can, etc. What the companies have in common-video, scrum master and
why is important, configuration)
● Design thinking:
● Emerging technologies
● Information and changing society (o7)
● Impact innovation and axis (video)