The way to development and entrepreneurial success is set and changing. Imagine there´s a train carrying people, enterprises and even countries to that destination. There are only two roles we can adopt: to be passengers on that train, or just to be observers and watch the train passing in front of us. Which role would you like to play? It is also like taking part in a theater play as part of the cast or just buying a ticket to see the show. In both cases we would be passive spectators, paying or not, contributing to somebody else´s success. Which role would Mexico like to play?
Mexico has advanced in its efforts for entrepreneurship and has a great potential for a more active role in the global market. However, it is moving slower than other countries. There´s creativity and innovation potential, but it is necessary to help it grow to have more and better entrepreneurs. As a country with a large young population, the potential is evident and has the possibility of a position in the future.
Although everybody has an innovation potential, young people are dynamic and have new mental models, sharing experiences through social nets and traveling, which could lead them to create new business models. However, Mexico is not generating answers while others are, with the risk of becoming technology consumers instead of generating it. We have to be problem solvers and not a market for the solvers, boarding the train instead of just watching it pass by.
There are some barriers to fight in Mexico for helping more people become entrepreneurs, such as the existing individualism among business units and the lack of a global strategy, as well as a weak (or absent in some places) link between the Government, the business world and education institutions. Efforts are discontinuous because of political aspects, a weak entrepreneurial culture or rigid positions in business units, as well as a short term vision. It is essential to understand the need for investing in developing human capital in its three categories: intellectual, structural and relational.
It is important to educate both the entrepreneur and the business owner as well as supporting spin offs, especially those involved in already existing value chains and tractor enterprises. The driver must be the market, so it is time for the business owner to sit on the customer’s side to understand him and take immediate action. The change will be possible if we try to change what we can change, believing in the entrepreneurial potential in Mexico and creating sustainable business units, based in values.
Mexico is ready for entrepreneurship. It is time for taking part of the theater play instead of just buying the ticket to watch the show.
Do you know a kid with problems in math, for example? When there is a problem like this, after blaming the professor, the system or the kid himself, the next step is usually sending him or her to extra classes. This could be wrong if you don´t identify the causes of such a problem, which could be basically that the kid sees no relation between math and his world. Why to study math? If the only reward for having a good grade in this subject is just the score, the problem is motivation more than capability. And if the kid is capable but not motivated and the parents send him to extra classes on Saturday, for example, it is probable that the problems persist and worsen because he will even hate mats because he´s got to study in his free time. On the other hand, when there’s a connection between the subject and the kid´s interest, there will be a better performance in this subject.
The key element is meaning!. For the team members it is not just to know that they have to work in a project, but why to do it. For investors it is also understanding why it is important to place their money in your idea, but the most important is why it could be important to the client, because if there´s nothing different in comparison to other products or projects, your idea will not be supported and will eventually disappear.
It is not what you think of your project but what your client thinks about it, which pains it relieves and the benefits from acquiring it. There must be a connection between what the client expects for solving a problem or eliminating a pain, and in that sense there will be a meaning which will be transformed in a perception of value, with more probability for project success. There could be other projects fulfilling the client´s needs and expectations, but if yours does not make a connection with the client, there won´t be a meaning and a reason to buy.
Once you know what your product is, who your clients are, which benefits it offers and which pains it eliminates, now it is essential to communicate that to your market and set up a connection. Preparing an elevator pitch will be vital for your project survive, in which you clearly communicate all this to your potential clients, creating the opportunity for building value. However, although preparing a pitch is important for selling, it is also a self-reflection exercise for you and your team because when you are thinking how to make things better, you become the first to criticize your work. This is also a way for establishing a meaning between what you do and why you and your workers do it, discovering new trends and learning how to discover.
This is part of what we do at the Bootcamp 2012, where attendants discover, learn to discover and go ahead from designing to action. What are you waiting for to participate?
Reading the today MercuryNews note about the high speed train that will be built some day in California, it came to me the comparison between how you build a train to how to build a digital business based in a portal, site or some other internet based application. It is amazing that building a high speed train has gone for at least 4 years of negotiation to get a 69 billion dollar budget for a project that will take more than 10 years to build.
When you embark in building a site, you may end in a journey bigger and longer than building a website, then what are some of the difference between each one of the endeavors?
|
Subject |
Build a High Speed Train |
Build a website |
|
Decision Making Point |
You don’t dare to build a public transportation system without the government support, a lot of financial backing and the knowledge that this endeavor will require a huge human effort among other things. |
You find a problem that looks like an interesting opportunity to pursue and start building a Minimum Viable Product that you launch to the market over the weekend or some short period of time, |
|
Resources |
In order to start the project, you need to have a lot of money to create a plan to get the rights for land, evaluate ecological points, perform a feasibility study, just to be able to get the permits and the financial resources to doit, |
You get a hosting platform for 5 bucks or less. Register an internet domain. Set a website based in Wordpress, Joomla or Ruby on Rails platforms and voila you start to build your great website |
|
Driving customers |
Before you drive your first customer to take a trip in your train, it will take several years to happen |
You can start attracting customers to your site almost from day zero, by starting to promote via your Twitter, Facebook, Youtube and other social networks |
|
Space for mistakes |
If you design the wrong route, stops or construction elements, the cost is from very high to impossible to change |
In your site you can develop more features, add new functions, change the operation with a lot of flexibility |
From this basic list of elements, one can see that in the click economy where the attraction to bring a customer is a matter of make them aware of what do you offer, make an appealing value proposition and provide a great value to your customer, getting 10 miles of track is a great effort in the same way that getting people to your site takes effort, having a 10,000 visitors and convert them into paid customers or making them to come back is a great challenge, that effort is much more complex than just build the site, and this visitors are the great value for you. As a corollary, in the click economy users are the value of your business. Knowing how to bring them and keep them is a capability that you need to develop within your organization, let’s focus in how find them online, nurture them and enhance your relation every single day.
Innovation holds a great deal of learning steps. When people want to innovate it is not an easy task, it need to have knowledge about specific area where the person wants to innovate, then to have a set of skills to learn, discover, built and evaluate whatever it is under construction, to finalize with a result that has a lot of effort, knowledge and sometimes serendipity.
Lately, several friends point me to http://www.khanacademy.org/ as a great site to learn about mathematics. I visit the place to learn more and I got interested in how each video is created. I think that ideas can be shared much better with a good napkin description with a voice over talking about the idea. If this concept is good, it should be a good try to learn how to create this short knowledge capsules (KC) that provide an elevator pitch in less than 3 minutes.
I decide to explore the subject and I found several good programs to make an screencast in an iPad, then I am decide to make my first KC using Explain Everything, a process that took me about an hour to find the best alternative, then learn how to use the program and the end to record it and put it in Yotube, I share with you the result of this experiment where I want to invite to share ideas and help us to nurture them.
You want to expand your market penetration in a new location or new customers in the same markets that you are already serving, to make any of these situations happens, what do you need to do to find what the best choice is and how many resources you need to invest to achieve it?
There are two elements needed to create a successful product. First you need to identify a real need that the people recognize as a something that need to find a solution and the potential customer is willing to pay an amount that it becomes to be a good business to the producer. The second is to develop a solution based in a good idea that it is feasible to be used to transform from a raw ideal into a product that can be built with your technical, marketing and financial resources.
In the physical world we can see what is going on in events when the people want to learn about a subject by attending to a specific talk or you find in a show how much people stop by in a booth asking for more information about your company or products. In this way you are able to evaluate the interest for a product or service.
If you are looking how to develop new innovation based products to be sold anywhere, it is time that you build a market research capability that allows you to find customers, build distribution channels and create a global company with business anywhere.
Today, performing a market research, execute a market validation and profile potential customers anywhere in the world can be done from your own office by a dedicated team of business development people and identify unmet needs that your company can provide solutions with a high level of certainty, breaking local boundaries and exploring very appealing value propositions.