Directly from MIT – Massachusetts Institute of Technology - Part 2 of 2

In this second podcast of the MIT series, Ricardo talks about the development and management of successful strategies of product development. He talks of innovation and the difference between the ability of companies to create value and capture value.

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Hello everybody welcome to the five Minutes BM Podcast. Now Directly from Cambridge. Massachusetts from MIT in the second podcast about the course that I'm doing here and talking about this week about developing and managing successful technology and product strategy. And this score is the key aspect of discourse is the innovation as the critical competence to develop business advantage. So we are looking for business at advance using an innovation as a driver four, that this was a very interesting course.

A lot of people, different backgrounds discussing and doing a lot of case studies to proven to understand how innovation can drive better results. And our model is based at, on the concept that the MIT model it's the S C concept V variation is the generation of ideas. So a good company has the ability to generate good ideas, but this is not enough the S selection.

They must be willing and able to select the right idea to select all. This is what I will do. I will not do under the sea commercialization. It's the product and market development. I can have a great idea can select the right portfolio. But if I don't know who is my customer and how I can reach the customer, I will fail on that. And the challenge for them, I'm that to exactly understand that all successful companies, they must go through the VSL, the process.

Let me give you an example. The Sehgal way, a personal transportation device segway was a announced at, by the creators as something that will change the word. We'll leave it in the late nineties. Uhh, it's like a bike, but you go up in with a Matar and you can walk on the streets and it will replace your, your feet and you will not walk. And the more you use only this kind of device, and the idea was very, very interesting, very, very rich, but they forgot the market.

They forgot the market. Now segue, it's only a shade all for what they will expect to do 10 years ago. So in what went wrong on that, what went through, it's exactly the generation of idea, a great selection, great, but thinking of the commercialization, they forgot all of the challenges of the transportation and they forgot to do a market research. They kept this so confidential and so secret that they, for sure, we got to see the customer side.

And when they put this on the market, nobody want to wonder to buy it. Nobody was willing to buy it. So now they use this only, maybe for tourists. And, but not that you will never see someone walking to the work on this kind of device. So this is only to give you an example and the challenge for innovation. And they said a four steps every time and have innovation wave. It's enforced four basic steps. The first one emerge, what do I mean by emerging innovation?

It's when the company or when someone has a great idea and two based questions, does it work and how we can make money on that? Because sometimes you have a great idea, but how we can translate this great idea into this, the results into the business. Let me give you an example on that Twitter, Twitter, how does it work? Okay to work very well, but now to either is facing the Twitter company. How can we make money on that? How we can translate this great idea to business and money and profit, second step growth.

Can we make rapid improvement and how we can beat our competitors? Because now when you start growing the competition start, you had an advantage because you had the idea. Yes, but a lot of people can start having the same or similar ideas. Third, one maturity like the oil market, which feature is and how we can keep profit margin, how we can still make money because the next step is the discontinuities.

Every single person to grow emerge, grow, and mature and die. And when we are thinking about this continuity, we need to think what's the next wave. Let's think quickly about television tube, display, plasma, LCD lands. What is next look, the same relationship between this and project manager. And this is basically to think different things, but complimentary things, value creation the generation of a great idea, invention process and Valley capture the steak Valley and transform Valley from others to money and competitive advantage.

Let me explain the value creation and value. Capture it with one quick example. Dan Bricklin a Harvard business school a year in the region, students on the late nineties, he created something very interesting and quite popular. Gentleman created the spreadsheet. He created the physical and he didn't make for, to me on that because he just decided not to patent it. And Microsoft took of this and transform it.

This idea of into a higher power business called Microsoft Excel. So look the nimbleness and the agility of Microsoft to take and capture Valley from audit creations. I'm not talking about IP here. I'm talking about the free market. So then Brickey decided not to be registered that So it's free. Everybody can do, but Microsoft was, is Martin nimble in that to do that quickly and fester.

So the value capture and value creation, and they work together in successful companies. They must work together in distinct sites, create and capture value. And a lot of people talk to me and asked me why you were doing this. What does relate this to project management? As I said, many, many times project management is the best way to drive innovation, to drive innovation, to transform innovation into good results. And now So, I'm here to open my mind and to understand that the word is above and beyond only cost scalpel control.

So let's think about that. I hope you enjoy this podcast and see you next week with another five minutes BM. Podcast. Bye. Bye.

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