Category: Innovation

Business model innovation, open innovation and co-creation practices and case studies

Business model innovationCollaborative business modelsCollaborative culture

Collaborative tourism: is it an original business model?

When we talk about collaborative tourism or tourism peer to peer, we refer to a new trend in the way of traveling based upon sharing basic resources such as accommodation, transport means or personal experiences with other travelers through platforms where the host publishes his/her offer and the tourist makes the booking.

Theoretically, this phenomenon comes from the collaborative economy model, where consumers may also become suppliers by sharing their means with other consumers, also operating on a global scope, prioritizing human relationship above competition and selfishness. The presentation results in being attractive to more and more tourists, who do not really know the business model completely.

Due to the constant transformation of the virtual economy, the task of identifying and describing virtual business models has turned to be quite hard. However, since this P2P platform business model usually determines it’s success, it is no longer unknown: platforms meet the needs of both supplier and buyer, and take a commission from the booked services price.

Checking the four main collaborative platforms operating in Spain for the four types of services available (eating, accommodation, transport and experiences), we find that their revenue sources are not so different from the traditional tourism intermediation models:

  • AirBnB: charges a commission between 6 to 12%, plus 3% of the conversion rate.
  • BlaBlaCar: depending on the amount of the transaction, it charges 1,60€ for transactions from 1 to 8€ or a commission of 20% for transactions of more than 8€.
  • EatWith: it takes a commission of 15% of the transaction.
  • Trip4Real: it takes 25% of the transaction.

A similar procedure is used for any other tourism intermediary, such as a travel agency, a tour-operator, broker, etc. The difference remains in that these intermediaries comply with the regulations in terms of safety, health and taxes, whereas most of the accommodation and transport means offered in the collaborative platforms do not comply with them.

Therefore, the consumer of collaborative platforms pays a lower price due to the non-compliance with the aforementioned regulations, and takes the risk of suffering any kind of accident without the safety prevention means. Furthermore, despite the social sharing philosophy upon which the platform is created, many suppliers operate for profit rather than for the aim of sharing cost or experiences. However, this is difficult to prove and control.

The hospitality sector’s opinion. The outburst of the tourism collaborative platforms has transformed many housing apartments into competitors for the hotels and regulated tourist apartments, and so it has turned into an important issue for the Public Administration.

According to the Spanish Confederation of Hotels and Tourist Apartments, there are only two possible solutions to this conflict: the total banning of the platform operations –as has happened in many major cities-, or the obligation for the apartments to comply with the same regulations as the current regulated tourist apartments.

It is necessary to take into account that the tourism sector in Spain is hyper-regulated. There are around 250 regulations at the European level referring to intellectual property, consume, safety and payment means, plus those from the local administration. All in all it entails a great deal of costs that do not apply to the collaborative platform operators, including the VAT, the police files, fiscal and sanitary costs. This is clearly a case of unfair competition. In this regard, there are many points to consider:

  • The regulations applying to these tourist housing apartments are different for every region in Spain, for it is necessary for the destination regulators to study them all in detail.
  • It is necessary to consider the product separately from the platform, taking into account that the platform operation is similar to the traditional channels such as the travel agencies, and so the same regulations should apply.
  • The evolution of the global society is likely to propel this paradigm beyond the current conditions, demanding solutions in terms of adapting the new regulation and policies.

This blogpost is from  http://www.visionesdelturismo.es/turismo-colaborativo/

Business trendsInnovationMarketing 3.0StrategyTourism marketing

Digital transformation in Tourism

The tourism industry is facing changes affecting the whole value chain, in both public and private sectors and to the whole system (demand, offer, markets and territory). In the coming ten years, the tourism industry is likely to generate new economic, social and environmental impacts through the digital transformation. More precisely, digitalization is impacting intensively and rapidly, forcing businesses to adapt to this environment of permanent transformation.

Digital transformation trends in tourism. There are four main technologies leading the digital transformation in the tourism industry:

  • Cloud: data collection, management and processing.
  • Mobile: platforms, services and applications for smartphones and tablets.
  • Internet of things: devices and objects connected to the internet.
  • Social: social networks through which the users participate, share and exchange contents and services.

And according to the report from the Orange Foundation about the digital transformation of the tourism sector in Spain, the main trends of the upcoming years are likely to be the following:

  1. New intermediation models. New agents have contributed to redesign the value chain, like the collaborative platforms (airbnb, uber, etc.)
  2. Technological platforms based upon cloud computing. Managing and processing Big data and Data Lake.
  3. The mobile. New tourism products and services to be consumed through the mobile devices.
  4. Internet of things. Wearable devices, Smart straps, beacons and chatbots are the main technology elements.
  5. Smart destinations. Appliance of advanced technologies under the denomination of Smart tourism destinations, Smart cities or Smart islands.
  6. Social networks. Also used as marketing tools.
  7. OTA’S and intermediation, search and comparison platforms, and e-commerce.
  8. Collaborative economy. Activity ecosystems where reputation becomes a fundamental business asset.
  9. Other technologies starting to gain protagonism in the tourism industry are geo-localization, virtual reality and augmented reality.
  10. Big data: The chances offered by many of the new technologies to generate and capture data.

In the digital transformation cross-sector process, tourism businesses have four main challenges to tackle:

  • People: new ways of working with human resources regarding communication and the need for skill development to adapt to the new realities, multiculturality, remote working, virtual teamworking, etc.
  • Infrastructures: incorporation of new digital tools.
  • Processes: new ways of using these new tools and working.
  • Systems: availability of environments which are adaptable in a way that allow businesses to design processes more rapidly.

Nowadays, most tourism organizations adopt the most sophisticated digital technology carrying out large investments in renewing their methods and tools, and there are also new collaborative models. However, the success will stay in being capable of having profiles with digital competences.

This blogpost is from  http://www.visionesdelturismo.es/transformacion-digital-en-turismo/

Business trendsInnovationIntelligenceMarketing 3.0Tourism marketing

Tourism 3.0 – Innovation and digital competences

Along with the mega-trends that set Tourism 3.0 apart from conventional models, it is evident that not only the future but also the present state of the tourism industry is to be developed upon the new technologies along the whole industry value chain. Nowadays very few companies have not yet started their digitalization process. However, the issue is not about implementing new technologies, but about how to use them to increase productivity and add value for the customer.

According to Fernando de Pablo (President of Segitur, the Spanish Government’s Society for Tourism Innovation), we are in a world under continuous change where the tourism industry is the only one affected by all technology trends, and therefore needs new digital competencies. In the document elaborated by Thinktur (Forum focused on Tourism Innovation) “10 technological trends in tourism for 2017”, there are a handful of new advancements affecting the tourism sector:

  • Big data – Open data
  • Digital marketing
  • Smartphones & Apps
  • Virtual and immersive reality
  • Internet of things
  • Trans-commercialization
  • Natural language processing
  • Gamification
  • Personalisation systems
  • 2D and 3D printing

The goal of the digital competencies in the tourism industry is to develop the capacity of Discovery, learning, understanding and anticipating tourists’ motivations and expectations.

We have been taking pictures and videos about our traveling experiences for more than ten years, but being able to share them in real time through the social networks is a relatively new thing, which is possible thanks to the global connectivity available in most developed destinations. This is to satisfy the need for sharing our experiences with our relatives and friends, the main reason why we take all those pictures and videos.

The point is how to use the available technology, and to adequately choose which technology should be used for what purpose. It is therefore necessary to learn how to handle them before deciding.

The Hospitality industry and Digital Marketing. In the event “Tourism 3.0 – Innovation and digital competences” organized by IMF Business School we learnt about the experience of three hotels belonging to large Hotel chains implementing  their tourism digitalization strategy through marketing.

Madrid Marriott Auditorium Hotel. This hotel has initiated a Project to create tailored experiences through Big Data tools.

Hotel Meliá Castilla. This hotel has implemented an Inbound Marketing Strategy searching for customer loyalty, trying to turn clients into fans, so that the motivation for staying in the hotel comes from the tourists themselves.

Novotel Madrid Center. Beyond delivering the expected service, they search for elements that make the experience outperform in the customer’s expectation.

This blogpost is from  http://www.visionesdelturismo.es/turismo-3-0-innovacion-y-competencias-digitales/

Co-creationCollaborative business modelsCollaborative cultureInnovative cultureMarketing 3.0

Making collaboration efficient when face to face is not possible

As it has been explained in many posts, content and product co-creation is in the core of Marketing 3.0, though to leverage a significant share of the stakeholders’ creativity potential it is necessary to think of virtual co-creation methods, to complement co-creation workshops and other face to face activities. However, beyond the technological tools such as video-conference, it is necessary to know how to manage virtual co-creation. This article provides many clues to do so successfully.

Started as a simple experiment in social media, in 2010 composer and conductor Eric Whitacre called out to his online fans to record themselves singing “Sleep” by the British choir Polyphony and upload the result. Impressed by the result, he decided to push the concept to the next level by recording himself conducting ‘Lux Aurumque’, then asking fans to sing along to that. This way, the first Virtual Choir was created. The results of that experiment quickly became viral. Now with more than fifteen million views, the Virtual Choir phenomenon has reached all corners of the world, inspiring more and more singers to join each year.

Beyond its beauty and emotional impact, Virtual Choir also fascinated because its implications regarding the potential new uses for new communication technologies and as one of the first virtual experiences turned into something real. The Virtual Choir can also be considered as an important remainder for how businesses might overcome the challenges of virtuality to benefit from innovative and more efficient business processes, customer relationships or forms of production, from co-innovation and co-production to crowdsourcing, crowdfunding or open source.

Not even leaving the limits of a corporation or a company, working remotely can offer operational flexibility, happier employees and lower costs, but to team up virtually with colleagues and coworkers can also pose important challenges. As we know, truly efficient collaboration presents no few difficulties. Virtual collaboration raises even more added complications that require even more care. But as the concept of the extended enterprise becomes more common and most professionals can do their jobs from anywhere, the more critical becomes to get virtual teams right. But how?

Getting right four pillars for virtual collaboration

The answer is not easy. Different studies carried out during the last decade seem to conclude that most of virtual groups fail to satisfy the expectations of companies and their clients. In another study conducted by Deloitte some years ago most of CEO’s and other managers interviewed still considered face-to-face interaction much more productive that virtual communication, and nearly half of them admitted ignorance and confusion about collaboration technologies and their potential.

But some other experts consider is all about how these teams are managed. An Aon Consulting report found that dispersed teams, when run accordingly to this condition, could outperform those sharing the same office space (recording up to 43% higher efficiency). A study of 80 global software teams conducted by BCG and WHU-Otto Beisheim School of Management concluded that virtual teams can improve employee productivity when they are properly managed.

But, what do they mean by “properly managed” or “run accordingly to its virtual condition”? According to Keith Ferrazzi and based on his research and experience helping all sort of organizations as customers of his consulting firm, there are four critical elements to get right: right teams, right leadership, right technology and right touch points.

Size is important (the smaller, the better)

We have recently wrote in this blog about how important is to consider people mindset and attitude for working collaboratively beyond their professional knowledge and other skills. Ferrazzi agrees people should first of all be specially suited to work in virtual teams, backing for instance profiles with good communication skills or high emotional intelligence. But it is also equally important to put them into groups of the right size and implementing and clearly establishing and communicating the right roles for each one.

As we know, smaller groups facilitate collaboration. In the case of virtual teams, size should be even smaller than when face to face interaction is the norm (some studies suggest teams of 5-6 people and no more than 10 in any case). Team members reduce effort when they feel less responsible for output, but this fact can equally be applied to non-virtual teams. Collaboration between people not sharing a physical space should pay special attention to ensure inclusive communication, a quality harder to achieve the bigger the virtual group is.

Good leadership amplified

Managers can maximize the productivity of virtual teams also by developing the right leadership. Again, this is a quality to apply to every teamwork, no matter if virtual or not. But right leadership must be amplified in virtual ones. A study of different engineering groups concluded that the virtual teams that performed best were those with managers with previous experience in leading such work groups.

Encouraging open dialogue, for instance, is particularly important in these cases. Leaders of dispersed groups in particular must push members to be frank with one another as the problems associated with lack of affinity are more common and severe for virtual teams. For similar reasons, virtual collaboration requires an extra effort fostering trust among co-workers. Ferrazzi mentions the case of a fully virtual organization that encourage new hires to offer video tours of their work spaces, allowing colleagues to mentally picturing their surroundings in later communications. Managers also push their team members to share personal news as a way to compensate the lack of the common chat about their lives that usually takes place sooner or later when a physical office is shared.

Special care is also recommended about clarifying goals and guidelines and establishing a common purpose or vision (explaining and repeating often the reason of working together and the benefits that will result of that). Particularly vital in the case of virtual teams are guidelines about interaction between members. For instance, multitasking on conference calls should be banned, as full attention is needed when using communication technologies that are not able to fully replace the subtle signals of personal interaction beyond a voice.

Not leaving it all to virtuality

Fostering touch points is also critical. Virtual teams should come together as often as possible. To do so, some specific stages of the working process are more important than others. Kickoff should be one of these for sure, using a first face to face meeting to star working in some of the key points mentioned (clarifying team goals or encouraging trust, for instance). If any proper project management establishes milestones, when dealing with virtual team leaders can leverage them to get people together for celebrating achievement of short-term goals or cracking problems.

And last but not least, efficient virtual collaboration also depends on using the right technology. According to Ferrazzi, even top-notch virtual teams can fail due to poor technology. In this case, recommendations are not so much about detailed features as about fulfilling general needs especially critical in the case virtual interactions. For instance, facilitating automatic transcriptions or records with a simple click, making easy to search for this content in a database or, while using the right tool for each mission, favor technologies that better help to reproduce face to face interaction (videoconferencing instead of a phone call, for example).

This post is from http://www.co-society.com/making-collaboration-efficient-face-face-possible/

Business model innovationBusiness trendsCollaborative business modelsCollaborative cultureEnvironmental sustainability

B2B sharing: the next logical step for Sharing Economy?

As it has been explained in many posts, collaboration is at the core of destinations 3.0. However, we have focused on the collaborative efforts to co-create or co-innovate with the participation of both individuals and businesses. Another type of collaboration is that of the sharing economy, nowadays in the spotlight because of business models such as Uber or Airbnb, based on peer to peer (P2P) collaboration in sharing resources.

But, what about business-to-business sharing?  B2B initiatives of the sharing economy may not be as well known as B2C’s, but some analysts consider the real power of peer-to-peer exchange may be found in B2B transactions, as businesses could better leverage the potential financial and operational benefits of jumping on the sharing economy bandwagon.

But first, it is necessary to be clear about what “sharing” means. Sharing Economy is a term currently used to designate many different ideas that could be also tagged with so disparate concepts as “gig economy” or “collaborative economy”. For the sake of the argument a sharing economy initiative could be described as one activating idle resources for usage, facilitating the paradigm of access versus ownership, and using technology to enable the matching between idle resources and its demand.

There are still many barriers to B2B sharing…

Key differences between B2B and P2P sharing may explain why you might not have heard as much about the B2B sharing economy as you have about B2C/P2P. For start, there is the cultural mindset we have mentioned so often in here: businesses have been shaped for decades to be competitors, not collaborators. The kind of relationships are used to is exclusively transactional. Owning more and better assets than others is supposed to be a key factor for success. Sharing resources does not come naturally to them, even if there is a benefit for doing it.

Then, there is also the legal hurdles or gaps that many P2P or B2C sharing initiatives are still sorting out. These hurdles are understandably more intimidating in the case of business to business interactions. Finally, the quality and user experience of the sharing economy services is also a factor to take into account. While a disappointing experience is not usually going to discourage a consumer to try again a particular P2P service choosing another peer, a business is less likely to pay for shared services when a bad experience could have a more significant consequences than, for instance, a driver too talky or too quiet in a shared ride.

… but its benefits could tip the scales

But these particular barriers for B2B sharing might be rapidly overcome as the economic environment compels business of all kind of shapes and sectors to leverage its benefits. The promising area of shared commercial services is vast and varied in its potential environmental and economic impacts. Certain B2B sharing services could provide many businesses, especially SMEs, with access to once inaccessible resources that those companies have no way to access if not through sharing. Besides, sharing resources streamlines companies, enabling them to operate faster. It can also allows them to react quickly to market changes in a less expensive and more efficient manner.

For instance in manufacturing, where the increasing versatility spur by flexible manufacturing technologies allows companies to share their production facilities and equipment much easier than in the past. Or in areas related with a bigger pressure for sustainability, where sharing large assets with significant carbon footprints as cars, trucks, industrial equipment or buildings can help to reach environment-friendly goals.

Some examples

The number of B2B sharing economy platforms is still low compared with their P2P counterparts, but some business-to-business players are already enabling businesses to share access to assets as such office space or underutilized machinery:

Sharemyoffice.co.uk lets businesses anywhere in the world advertise their spare desks or office space providing a portal for startups to find their first commercial business space.

Yard Club Rental, recently acquired by Caterpillar, provides a way for construction companies to share their equipment by renting it out when not in use by their own companies.

Floow2 is about sharing between companies every aspect of the supply chain… and more. The most popular categories are cars, trucks, meeting rooms, aerial platforms, communication specialist and designer (yes, professionals can also be shared).

Flexe wants to transform how logistics and supply chain professionals manage growth, inventory peaks, returns and new market entry creating warehouse networks that scale as necessary by connecting organizations that need warehousing space to organizations with extra space.

Breather wants to become the Airbnb for office space and meeting rooms.

Storefront specializes in retail spaces available for pop-up shops.

This post is based on http://www.co-society.com/b2b-sharing-next-logical-step-sharing-economy/

Co-creationCulture changeInnovative culture

The kind of leadership that is music for our ears

Symphony orchestras are the paradigm of traditional autocratic driven organizations, where creativity is severely constrained, thus impeding the musicians to unfold their talent to the utmost. However, Chamber orchestras are a good example of how a smaller group of talented members can cooperate while having free reign to develop their creativity, under a very different leadership style. This article explains a case study that illustrates how Chamber orchestra leadership is appropriate for creative collaboration.

When cellist Julian Fifer graduated from her music studies in 1972, the prospect of becoming another member of a symphony orchestra seemed depressing in the extreme to her. Active in several movements of those counter-culture days and having tasted the freedom of playing chamber music, she was well aware that the role of the music director remained a bastion of totalitarianism and, as organizations go, few were more autocratic in structure than the traditional symphony orchestra.

So she decided to create Orpheus Orchestra as a co-operative 15-members ensemble. That was small enough to perform without a conductor. But it was precisely this innovative approach what attracted other talented like-minded musicians, as well as more concerts and gigs. Suddenly it was obvious that some hierarchy was necessary to reduce complexity and speed decision-making. But this leadership was not to be found by having a conductor, so a new collaboration methodology started to take place.

Today, this methodology is been dubbed as the “Orpheus process”, a process based in some elements that can inspire us when trying to establish a new more collaborative way to work together, the kind of methodology needed for a successful collaborative environment not just to work with some other companies but also internally within our own organization between different units, departments or roles.

The orchestra analogy is not trivial. It turns out orchestral musicians usually rank in the lowest levels of job satisfaction according to different studies on attitudes in the workforce (in one of these studies they even ranked below prison guards). Even under the most benign music director, the creative life of symphony orchestra players remains considerably constrained.

So we have this contradictory context between the need for passion/creativity and systems based on a hierarchical organizations designed to suppress both for the better good of “efficiency”. A contradiction that can also be applied to the most important kind of employees organizations need today and will crave for even more in the future, the kind of employees less possible to be replaced by a robot or a software, the ones adding their passion and creativity as key competitive elements for certain business activities, the ones therefore who will most likely experience a disconnect between their passion for their chosen field and their creative impulses, and not having those things engaged within the fixed, subservient roles of their workplace.

Innovation and collaboration are some of such key business activities. We all already know great ideas don’t depend on hierarchy or seniority, they don’t depend on a pyramidal organization but on a network of enough passionate and creative participants engaged in solving a challenge and, willing to put an important part of their egos aside during the process.

In summary, the process of an orchestra without a conductor producing wonderful music offers a metaphor for us to gain some insights as to how we can improve our process and methodologies for collaboration and co-innovation…

Size matters. Four or five people can easily discuss matters as equals. Some kind of leadership is necessary when bigger groups not just make collaboration more complex, but create a chaos in which it is also more difficult for each member of the group to have a meaningful impact.

Leaderships can be occasional. The Orpheus Orchestra works with occasional leaderships restrained to a particular project. They devised a system of rotating leadership revolving around a “core” of musicians elected for each piece by the musicians themselves, and a concertmaster (chosen for each piece by a committee of orchestra members) that has special responsibilities, as bringing focus and shape to the musical interpretation.

Leaderships are not about “all or nothing”. At the Orpheus Orchestra some teams form and disband from project to project, but others are longer range and involve larger artistic and administrative duties. Contrary to most of orchestras, they do not have a single artistic director but three coordinators (elected by members) who develop different roles usually hold by just one person.

Absolute power is bad even for the leader. There is a benefit in sharing power. To be leader all the time could be terribly stressful (therefore not good for taking the right decisions). By rotating between numerous positions, members of the Orpheus Orchestra can use a wide range of their talents and pursue different interest in addition to the highly specialization of playing their instruments.

Success is the best antidote for deniers. “At the beginning, there were probably only a couple of nuts in the orchestra who would consider that we could ever do a Beethoven symphony without a conductor. After 10 or 12 years, there may have been a few more people who thought we might have been able to tackle it”, explained violinist Ronnie Bauch, one of the first members of the Orpheus Orchestra.

What You Can Learn About Collaboration and Leadership From a Chamber Orchestra

This blogpost is from  http://www.co-society.com/kind-leadership-music-ears

Co-creationCollaborative business modelsCollaborative culture

Essential reads about collaboration

Collaboration has been on the spotlight of business literature throughout the last years, and so it is difficult to make a good selection when searching for good literature on business collaboration. This article proposes 3 outstanding books that will help you get further insights on this issue.

The Silo Effect

From award-winning columnist, journalist and senior editor for the Financial Times Gillian Tett, The Silo Effect shows the importance of cross-disciplinary and cross-cultural collaboration for organizations to succeed. It also shows how the lack of this collaboration sends organizations into deep trouble. Probably this is the book on collaboration with the most interesting case studies.  Readers will find cases of organizations getting collaboration right but also of those felled by the lack of it. Specifically, the book includes eight different tales of the silo syndrome: Bloomberg’s City Hall in New York, the Bank of England in London, Cleveland Clinic hospital in Ohio, UBS bank in Switzerland, Facebook in San Francisco, Sony in Tokyo, the BlueMountain hedge fund, and the Chicago police.

Beside the cases, the book also includes some specific suggestions on how some people and organizations can break those silos down to unleash innovation. Author Gillian Tett’s background in anthropology is present when she examines our tendency to create functional departments (silos) or when she answers questions as why do humans working in modern institutions collectively act in ways that sometimes seem stupid, or why are we so often “blind to our own blindness”.

An interesting twist to highlight. Tett does not consider silos as the “evil” player to eliminate. She recognizes silos can also be beneficial, especially in a world as complex as it is today. Silos in the business world can indeed be uniquely valuable containers in terms of organizational efficiency and productivity. But they can also be, of course, major barriers to communication, cooperation and, especially, collaboration. So essentially everything comes to know how to get their benefits but also avoid or prevent their downsides. And Gillian Tett explains how.

Collaborative intelligence

Collaborative Intelligence is the culmination of more than fifty years of original research that draws on Dawna Markova’s background in cognitive neuroscience. Markova and her “Professional Thinking Partner” Angie McArthur are experts at getting brilliant yet difficult people to think together. They share a consulting practice in which they serve as “thinking partners” to clients who need insight in how better to achieve synergistic collaboration within their firm, a group of “patients” that includes some of the world’s top CEOs and creative professionals.

Rooted in the latest neuroscience on the nature of collaboration, Collaborative Intelligence offers tangible tools for those serious about becoming ‘system leaders’ who can close the gap and make collaboration real. This book is full of practical guidance to help the reader to discover his or her own “CQ” or Collaborative Intelligence Quotient. As explained in the book, each individual has a characteristic way of processing cognitive challenges (Mind Pattern), depending on the kind of attention that their brain utilizes: Focused attention, Sorting attention and Open Attention. There are also three languages of thought (Auditory, Kinesthetic and Visual).

Markova includes many worksheets and questions that readers can use to determine not only their own patterns, but those they work with as well. There are also plenty of tips on how to maximize that pattern for effectiveness in personal work and in collaboration with others. Subsequent chapters demonstrate how the knowledge of these languages and triggers can be used in building teams and in optimizing team interactions.

Collaboration begins with you

Collaboration Begins with You focuses on helping leaders at all levels to create and develop a culture of collaboration. Bestselling author Ken Blanchard and his co-authors show that busting silos and bringing people together is an inside-out process that involves the heart (your character and intentions), the head (your beliefs and attitudes), and the hands (your actions and behaviors). From authors’ point of view, clearly none of these “parts” can function without the other. You need your heart, head, and hands to bring about change and build collaboration with others.

An important fact for those who prefer novels to essays. Authors use the business fable as a format to explain a story about creating a collaborative atmosphere in a company, with a main character who is the leader of a cross-department project that fails because the units involved are too competitive with one another. The solution, he learns, is to shift his and other’s heart, head and hands toward collaboration.

This article is from  www.co-society.com/summer-time-reading-collaboration/

Business model innovationCollaborative business modelsCollaborative cultureStrategy

Basque SMEs collaborate to get larger and more global customers

Effective cooperation between local stakeholders is one of the key success factors for Tourism 3.0 to thrive, but this cooperation needs to be well focused on strategic goals, in a way that many different types of cooperation may be developed. This article explains how SMEs in the same region create an alliance developing four types of cooperation to gain and advantageous position in the international market.

Smart Factory Alliance is a partnership of several SMEs created in order to gain the kind of visibility that just bigger companies can achieve. The collaborative initiative has internationalization and global customers as one of its main goals. The partnership takes place in the growing market of the so called Industry 4.0, one of those emergent contexts of new technologies and disruption in which we think collaboration supposes a core element for its development.

Five companies in the IT sector from the Basque Country (Spain) have set up the Smart Factory alliance aiming to boost their internationalization and being able to obtain contracts with large companies. The alliance will allow partners to offer integral Industry 4.0 solutions to manufacturing companies.

Four types of collaboration. Each of the five companies is specialist in several areas, so the alliance adds on the competence and solutions of each of them, promoting a more integrated, specialized and competitive offer. According to Tomás Iriondo, CEO of Gaia, an industry cluster promoting the initiative, “by working together, these companies can now address more distant, larger and more complex clients thanks to a collective solutions map and a portfolio that becomes one of the widest for Industry 4.0 demands”.

To strengthen the partnership, Smart Factory Alliance has established four types of collaboration. Shared knowledge is considered the most important one. And the most critical, as this sharing will only be possible if first a climate of trust among partners is created. Another two kinds of collaboration will involve common communication strategies to reinforce visibility, and detection of customers and projects. Finally, setting up the Alliance comprised also the technical integration of products and software developed separately by each of the companies partnering.

The Basque culture has collaboration as one of the key values that make it more competitive than its neighboring regions’. It has proved to succeed in many other cooperative ventures. For instance, three years ago, ten Basque companies in the designer furniture and equipment sector joined forces to grow in the retail market. This is a subsector in the world of specialized furniture and equipment for all types of shops in which customers include from a single store to chains, franchises and brands, and large commercial areas or the design of showroom. It’s a huge market but competing for global customers requires a wide range of services.

Creating a common brand, Basque Retail, they can now meet this challenge because each of the firms has a specialized portfolio (furniture, security lights, wood cladding, design lamps …). The alliance makes possible for them to offer complete projects, that is to say, to ‘dress’ from top to bottom a single commercial site or hundreds of stores from the same chain or franchise.

Each one of the companies partnering at Basque Retail keep its own activity coexisting with the one generated by the common brand. The alliance is been possible despite being very different businesses. Some of them are small companies and never worked internationally, some others have been exporting for years. Turnover, sales and products are quite different, but their goal is the same one: to be able to offer a comprehensive solution to both a customer with a single store and one that has a thousand.

Collaboration leading to more collaboration. Internationalization has been also a main driver. Just recently, Basque Retail and its solutions were presented in Düsseldorf during the main global trade show for this sector. For most of partners in Basque Retail, with their sales limited to Spanish market until recently, been able to have a stand in Düsseldorf would have been unthinkable just few years ago.

Currently, close collaboration between companies is working so positively and leading to so many new ideas that they are even considering to create a new collaborative sub-brand focused on “sensorial marketing”, an increasing demand from brick and mortar commercial sites competing with online e-commerce.

This post is from www.co-society.com/basque-smes-collaborate-get-larger-global-customers/

Business trendsCo-creationCollaborative cultureInnovationInnovative culture

Teaming up with customers & fans to co-innovate

As explained many times in this blog, engaging customers and turning them into fans, contributors and brand ambassadors is one of the key success factors of destinations 3.0. One recent case within the entertainment sector showcases how co-innovation with fans can lead to fruitful results.

Even if the concept of costumer centric business is still often more of a marketing trick or organizational aspiration than a reality, increasing competition is making brands truly getting closer to customers. Some others are even going further: they are putting them at the heart of business decision-making.

When it comes to innovation they’re even asking them for help with the process, not just simply using them to provide insight. Consumer-led creativity does exist. Consumers are a huge and largely untapped source of creativity and innovation. Customers are already creating value and solving problems without any encouragement from commercial organizations. Why not trying to tap into it?

Co-creation workshops can help businesses pool ideas from participants and turn these insights into tangible prototypes that can be evaluated in real time. We could recently prove it once more when asked by F.C. Barcelona to lead its first co-creation workshop with members of the football club in order to work together in a process of proposals and ideas. Using the context of the recent Mobile World Congress, fifty F.C. Barcelona supporters between 18 and 40 years gathered in a workshop named ‘Smart & Mobile Connection Future’ to propose ideas linked to technological applications that could facilitate the living and sensing of everything the sport club is offering to its members, supporters and fans in the stadium and sports events.

After a few speeches introducing the vision, mission and methodology of the workshop by some innovation experts, the supporters were divided into small groups to encourage their participation, which resulted in a great deal of ideas related to the use of new technologies in the Stadium and the sporting events. Contributions and needs identified were numerous. For instance, it was proposed to make possible to watch game replays on the phone or tablet at the Camp Nou stadium itself in real time; and apps to order sandwiches and drinks from seats during the game or to access to information about public transport and traffic around the stadium. Some other proposals pointed to be able to carry a digital version club’s member card in smartphones that could also be used for mobile payments at shops and restaurants linked with F.C. Barcelona.

Co-creation workshop ‘Smart & Mobile Connection Future’ is part of a transversal innovation program started late last year with the aim to identify problems and opportunities for the organization and resolve them through new projects or ways of working. Some other workshops like this are coming soon and will be related to other areas of the club.

This article is from www.co-society.com/teaming-customers-co-innovate-even-better-fans-youre-lucky

Co-creationCollaborative business modelsCollaborative cultureCulture changeInnovation

Presidential Innovation Fellows: Co-innovating with (We) the People

As it has been explained in the posts about destination models 3.0, these intend to leverage the intelligence, creativity, initiative and influential power of all its stakeholders from the outset, not only in product and content co-creation, but also up to the business model innovation. In this regard, considering the Destination Management Organisation (DMO) as the destination’s government from the planning and management perspective, some governments are developing innovative practices in this direction, which should inspire also the destinations’ governance organisations.

Some governments are trying to lessen political apathy by engaging citizens in crowdsourcing initiatives for a variety of areas of innovation and decision taking on public affairs. But besides the attempt to prevent further public institutions disaffection, those governments tapping into the knowledge and abilities of citizens are also discovering the benefits to reach beyond the usual experts to expand and diversify the talent pool tackling a problem.

U.S Government and more specifically Obama administration has been especially active in government-driven crowdsourcing competitions and collaborations. Across government, all sorts of agencies are implementing hundreds of crowdsourcing approaches, citizen science programs, and other efforts that have brought the best ideas and talent together to solve mission-centric problems. Last year alone, Federal agencies ran over 85 prize competitions, from small-dollar prizes to winnings of $100,000 or more.

The Presidential Innovation Fellows (PIF) program brings the innovation economy into government, by pairing talented, diverse technologists and innovators with top civil-servants and change-makers within the federal government to tackle some our nation’s biggest challenges.
This program brings the principles, values, and practices of the innovation economy into government through the most effective agents of change we know: our people. This highly-competitive program pairs talented, diverse technologists and innovators with top civil-servants and change-makers working at the highest levels of the federal government to tackle some our nation’s biggest challenges. These teams of government experts and private-sector doers take a user-centric approach to issues at the intersection of people, processes, products, and policy to achieve lasting impact.

Fellows selected for this unique, and highly-competitive opportunity serve for 12 months, during which they will collaborate with each other and federal agency partners on high-profile initiatives aimed at saving lives, saving taxpayer money, fueling job creation, and building the culture of entrepreneurship and innovation within government. As stated in its website, PIF offers to talented individuals from diverse backgrounds “the unique opportunity to work on truly awesome projects with the potential to make a positive impact, with a user base of more than 300 million Americans.”

About the Fellowship

The Presidential Innovation Fellows (PIF) program was established by the White House in 2012 to attract top innovators into government, capable of tackling issues at the convergence of technology, policy, and process.

The PIF program is administered as a partnership between the White House Office of Science and Technology Policy (OSTP), the White House Office of Management and Budget (OMB), and the General Services Administration (GSA). In 2013, the PIF program established a permanent home and program office within GSA.

Program Details

The Fellowship is a 12-month program, during which Fellows are embedded within a federal agency to collaborate on challenges with innovators inside government. Fellows are based in Washington D.C. for the duration of their Fellowship, and are considered full-time employees of the federal government.

Fellows operate with wide latitude for individual initiative in planning and executing solutions to problem, and spend a significant portion of their time co-working and collaborating with other Fellows. Throughout the program, Fellows receive support from partners in the White House and change-agents across various federal agencies.

Created in 2012, opportunities for Fellows participating in the program have already include creating new crowdsourcing tools to empower survivors and first responders during natural disasters, significantly improving the quality of US patent system, or even addressing asteroid threats to human populations. Fellows have also unleashed the power of open government data to spur the creation of new products and jobs; designed pilot projects that make it easier for new economy companies to do business with the Federal Government; and much more. These are some of many other resultant projects:

This article is from  www.co-society.com/presidential-innovation-fellows-co-innovating-people/

www.whitehouse.gov/innovationfellows