PROPOSED INNOVATION MANAGEMENT IN REGIONS: TRANSFERENCE OF METHODOLOGIES TO COMPANIES IN ARMENIA - QUINDIO - COLOMBIA

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1 PROPOSED INNOVATION MANAGEMENT IN REGIONS: TRANSFERENCE OF METHODOLOGIES TO COMPANIES IN ARMENIA - QUINDIO - COLOMBIA JHON WILDER ZARTHA SOSSA, DANIEL HUMBERTO GÓMEZ FRANCO BIBIANA ARANGO ALZATE, DAVID ALEJANDRO COY MESA, KATIA CECILIA MÉNDEZ NARANJO, ANDRÉS FELIPE AVALOS PATIÑO, DIEGO FERNANDO GALEANO MONTOYA, HARRY YONATAN COPETE ROGELES ARMANDO RODRIGUEZ JARAMILLO, Chamber of Commerce of Armenia Armenia, Colombia CARLOS FABIO ALVAREZ, Chamber of Commerce of Armenia Armenia, Colombia RODRIGO ESTRADA REVEIZ, Chamber of Commerce of Armenia Armenia, Colombia

2 RAUL HERNANDEZ ZARTHA, Quindío University Armenia, Colombia NOE ARON Colegio de la Frontera Norte Tijuana, México Abstract The Management of Technology and Innovation have become a key constituent in companies, sectors, regions and countries; because allow dynamism the technological change, technological development, economic development and achieve better indicators of social welfare and quality of life; so it is necessary to promote the innovation and technology management on the regions, especially those of low technological development. This paper presents the results of a project innovation management for an intermediate region in Colombia: Armenia Quindio, which was implemented in two phases. The first related to the design of a management methodology of innovation for a possible center of innovation for the Department, the second related to the transference of methodologies of innovation and technology management to some companies in the region. In the first phase was identified several differentiators elements like: the suggesting of implementation of technology surveillance and open innovation methodologies. On the second, a pilot was conducted with companies to transfer methodologies such as: diagnostic of innovation of Albacate, technology management methodology for projects MGT, diagnosis of innovation strategy Booz, the methodology of DNA of innovation, barriers to innovation analysis, technology transfer tool for projects, structural analysis to prioritize gaps, strategic matrices, closing gaps action plan, Stage Gate methodology (Cooper, R, 2011), among others. Among the most important results are the next: the capacity generated in the region especially in participants and entrepreneurs in the areas of technology and innovation management, through the transference of methodologies, concepts and tools applied to their contexts. In addition, this study allowed to analyze and understand the importance of using the methodologies developed in the research group of Policy and Technology Management, of the School of Engineering at the Universidad Pontificia Bolivariana, and other useful methodologies for the future center of innovation and the companies in the region, such as, technology surveillance,open innovation, and others; in order to diagnose, provide strategies and projects in a specific region allowing encourage and create a culture of innovation through strategies and action plans to a specific business. Keywords Innovation management methodologies, innovation strategies, innovation management.

3 1. Introduction Armenia, capital of the Quindío department is a city whose main source of economic development has been coffee, and touristic and ecological development. In 1999, the city was devastated by an earthquake and is nowadays is a modern city with government intentions focused in productivity progress and innovation; this is evidenced in the intentions of the Chamber of Commerce, the Department of Productivity and Competitiveness and Regional Competitiveness Commission that led to the execution of this project. 2. Phase I The project aimed to create knowledge around three themes: Motivate the culture of innovation Develop an innovation strategy and an implementation plan for the strategy for the future Productivity and Innovation Center (P & I Center) Create an action plan in the short term for the dissemination of results and operational tools of innovation management. This first phase, the project team make a review of the background of the region, among which stand out reports of Colciencias ParqueSoft, and other documents related to measurements of regional competitiveness, competitiveness plans, among others Formulation of the internal strategy for the P & I Center It was established that the innovation center should have an internal and external strategy that would enable it to align with the other actors in the innovation system. For internal strategy, suggested a method to formulate the innovation strategy that develops in three stages as follows (Schilling, M, 2010): Election of innovation projects and innovation management In accordance with the prospective study of the region by 2032, prioritization studies in science and technology, regional production strengths, strategic plan for Science, Technology and Innovation, the specific initiatives of some regional innovation system agents and competitiveness agenda among others. It was established the importance of choosing the "innovation management projects" with which will begin work on the future P & I Center, the methodology suggested was the map of R + D + i:

4 Figure 1. Project map, Source: Melissa Schilling, It was determined the relevance of choosing the "Projects / Innovation Management Methodologies" with which the Centre will promote the competitiveness of the region and its companies, support of the R + D + i projects in the region and boost the regional innovation system. In addition, that in turn will help generate the resources needed to operate the P & I Center in the medium and long term, so that they constitute themselves as knowledge-intensive services and innovations in the Center. From the results of more than 300 assessments, profiles, innovation and technology audits and the review and analysis of innovation strategies of Colombian companies. The Policy and Technology Management Research Group suggested to be implemented the following management and innovation methodologies: Open Innovation and technology watch and competitive intelligence (which are methodologies and innovative services for the Center), the following describes the methodologies suggested: Open innovation Different models of innovation have evolved over the decades. The first models were characterized as serial processes, governed by technology push or market pull. Due to the influence of phenomena such as globalization and high demands of competitiveness, the most recent models have incorporated interactive systemic perspectives, greater coordination between areas of the organization and the strategic integration with customers and suppliers. With the traditional classifications of innovation as its object, as product or service and process, have been joined others, like the organizational and marketing innovations 1. With the advent of the age of information and knowledge has increased the pace at which it should generate innovations, 1 According to the 3rd edition of the Oslo manual, an organizational innovation is the introduction of a new organizational method in practice, the organization of the workplace or the external relations of the company, and marketing innovation is the implementation of a new marketing method involving significant changes in the design or packaging of a product, positioning, promotion or pricing

5 making imperative the configuration of new and better innovation management systems to ensure the satisfaction of customers and users. That is why companies have opened their organizational boundaries to access global talent and expertise in various fields of science and technology and to keep ahead of the pace of change modern. As proposed to address this dynamic has created the term "open innovation" (Chesbrough, H, 2006). This new paradigm stresses the importance of innovation processes more open. The roots of open innovation dating from long ago. Business practices such as the use of information, people and resources outside the organization to improve internal processes of innovation, and the pursuit of external marketing opportunities for internal developments are not new. However, the proposal of open innovation process contexts, content and underlying processes sub-originated in the past decade. Benefits for Productivity and Innovation Center of Quindio with open innovation model The use of social digital technologies represents an important point for the coordination and integration with actors and not only regional or national ones, but also at the international level, to help accelerate technology development processes and innovation. Different challenges, needs and initiatives can be disclosed and configured with the support of networks of expert. These promote the formation of partnerships that actively incorporate external knowledge into innovation processes in organizations. According to what is seen in Parquesoft in Armenia, especially in relation to the companies that operate there, the Policy and Technology Management Research Group suggests that some of these companies should develop an Open Innovation portal for the potential P & I Center, according to experience InnoCentive. There is possibility of fielding the research groups of the region with the problems or opportunities in Quindío and abroad, and with the second possibility that companies and institutions of Quindío to receiving contributions with greater speed and relevance of these groups and the outside. It would be a great opportunity to mention that the future Center could have "Open Innovation" like one of their strategies. Other reasons for Open Innovation are: - Almost no current P & I Center mentioned in their strategies to promote open and collaborative innovation. - The first portals in Colombia begin to develop in Medellin, not in Armenia where the project was developed. - It would create perfect alignment with Network Nodes promoted in Risaralda, region close to Quindío. While in that region will focus on Innovation and Technological Development, the P&I Center would be a benchmark, analyzing that in the short and medium term the technological innovation projects will need "innovation management methodologies" that will the offer of the future Productivity and Innovation Center of Quindío. Technology Watch and Competitive Intelligence These processes try to get the information from available sources, both formal and informal. This information can be processed, treated and analyzed so that the results of this analysis can be

6 distributed according to the needs identified and the management of the organization can make decisions for it to be transformed into action. For the selection of software to be used for technology watch, should consider the following steps: PHASE I: Selection Information Source: Derived from the proper definition of the watch critical factors (WCF), focuses on the importance of the establishment of the key aspects that define the project. PHASE II: Access to information sources: The different sources of information are useful for technology watch projects can be processed and analyzed by the staff responsible for this element. PHASE III: Debugging by source: Defines the type of software that is required according to the characteristics of the information sources. As mentioned, the sources of information technology secondary type could be determined according to its content into three groups: websites, databases of scientific and patent databases, which can be reduced according to its construction in two groups: unstructured information (internet) and structured information in databases (Escorsa, P, 2001). PHASE IV: Tool Type Selection: Once addressed the above steps, you must select the right tool for technology watch projects. As for the type of information that can address by the software tools, was established a subjective classification divides them according to their specialization is in web pages, scientific papers, patents, or a set of several of them. Benefits for Productivity and Innovation Center of Quindio with the development and use of technology watch: Currently some units of Colombian Universities Technology Monitoring studies conducted for specific companies and projects in Medellin are increasingly demanding companies these knowledge intensive services, as even there are software license for only US$ 250 / month with which can do technology watch studies. The innovation projects and companies in Quindío will need in the near future studies Technology Watch that allows them to be more competitive. Because of this, the Policy and Technology Management Research Group suggests that Technology Watch is one of the methodologies applied by the future P&I Center. The reasons are summarized as: - Ability to co-develop among research groups, universities and ParqueSoft of Armenia a software to technology watch. - In the short term, the possibility to offer technology watch service in alliance with Pontifical Bolivarian University while it is building the capabilities to develop proprietary software and methodology in the Department of Quindío. - Possibility to use software also open source, free or low cost to perform the first tests Development of collaborative strategies Worldwide, there are collaborative strategies for intensive companies in innovation and technology, the most important are (Schilling, M, 2010):

7 Strategic alliances Joint Ventures Licensing (in and out) Outsourcing Collective organization for research The Policy and Technology Management Research Group suggested that before choosing the form of collaboration for each project note the strengths of the actors of the regional innovation of Quindío Protection Mechanisms innovation A crucial element in the development of technological innovation strategy of an organization is to seek protection for technological innovation and how to do it. Traditionally, economics and strategies have emphasized the importance of the protection an innovation vigorously to be the main beneficiary of the royalties generating, although a decision on protecting innovation and what level to do it, it is really complex procedure (Schilling, M, 2010). Protection options. - - Patent - - Trademark - - Copyright - - Trade Secret Advantages of protection. Protecting innovation helps ensure that the organization gets most of the share of the returns generated by innovation. Because proprietary systems offer greater appropriation of rents, its developers often have more money and incentive to invest in technological development, promotion and distribution. If one organization is the primary beneficiary of the success of the technology, has a much greater incentive to invest in the further development of technology Implementation Plan of the Innovation Strategy The implementation plan of the innovation strategy is divided into four stages: Organization for the Innovation Traditionally in organizations are presented in two ways: Centralized and Decentralized R&D.Some sectors are intensive in Centralized R&D, for example the global power sector, while others have used Decentralized R&D, as in the case of companies engaged in consumer products.

8 Much has been written about what should be the type of organization should take, and what actually generates better results in the innovation process, some argue that the centralized type is best to keep control of what is going to innovate, others claim Decentralization is best to make use of the ideas that are generated within the organization. Recently, it has been established that innovative companies worldwide use both types or forms simultaneously, Centralized for new or improved product /services and decentralized for processes, achieving even leverage developments, research and ideas generated in each department or subsidiary if multinational company. Here are two real examples of organizational forms for innovation of Colombian companies, as well as an outline with the form suggested for Productivity and Innovation Center: Figure 2. Example of Centralized R & D (left) (a) and Decentralized R & D (right) (b) (Schilling, M, 2010). Conclusion: It is suggested for the P&I Center works with a hybrid of the two ways of doing R&D internally Methodologies for managing the development process of new products / services and processes There are classic ways to improve services / products and products parallel development, which is very important to identify an opportunity to production (validation) commercial. Of the most important today for innovation strategies is the Stage Gate (Cooper, R, 2011). There are different varieties of Stage Gate process, one that consists of four stages, another for technological development that consists of 5 stages and two previous stages, Stage Gate express of three stages, Stage Light gate two stages, but the most common has 5 stages.

9 The general structure of the center of P&I Center should be shaped by culture, strategy and those specific activities that are selected for the Center. The proposed management of the Center should be focused on moving from ideas to commercialization. Figure 3. Stage Gate methodology. Source: Stage-Gate with Open Innovation The Stage-Gate process has evolved to become more flexible capabilities and systems companies, becoming more personalized to allow their networks of partners, suppliers and partners to integrate better understood processes from idea generation to launch new products using the model of "open innovation" Figure 4. Stage-Gate with Open Innovation. Source: Policy and Technology Management Research Group Conclusion: The Policy and Technology Management Research Group suggests that the future P&I Center should implement Stage - Gate aligned in four types - aligned with Open Innovation - and transfer the methodology to the companies in the region of Quindío.

10 Teams for the development of new products / services and processes Development teams should always be associated with specific tasks or projects, to make key part of the organization and have a clear view of their innovation process. These require the integration of specialized capabilities in addition to promoting leadership and commitment to the development of projects that strengthen competitiveness. Types of research, development and innovation teams are: (Schilling, M, 2010). Figure 5. R&D&I Teams: Functional (a), lightweight (b), heavyweight (c) and autonomous (d) teams (Schilling, M, 2010) Deployment Strategy For the deployment of the strategy takes into account several factors, some are classic and relate to other disciplines: Analysis of price, product, promotion and distribution among others, for products / knowledge intensive services. The Policy and Technology Management Research Group, suggests the broadcasting methodology through curves in S.

11 S Curves Figure 6. Phases of the S-Curve (Pérez, C, 2001). The S-curve as a tool for forecasting The Innovation Cycle analysis is critical for companies so that they can be prepared and use forecasting as a tool for strategic planning and investment in innovation and marketing. (Saffo, P, 2007) refers to this by saying that "The art of forecasting is to identify an S curve when starting to emerge, long before its turning point." The trend in technological innovations is to reduce the time in the CI (reach early obsolescence) due to market demand. The key point for decision-making and marketing strategies should start from the information obtained from the analysis of the CI, namely, the turning point. Considerations Knowledge of the turning points is a useful tool for decision-making and marketing strategies, in terms to launch of new products, improvements the existing ones, types of marketing strategy to use and time for technology law procedures and intellectual property. The time, elapsed between innovations should become increasingly short (Aguilar, S 2012). This has a limit, because you can reach a point where the cycles are too short and launching innovations untenable. In these cases can be kept constant the time between innovations, but it must be increase

12 the performance of the products, so that the slope in phases 1 and 2 is higher than the previous cycle. It is suggested that the future P&I Centre is the leading center in the analysis of innovation in the region through this methodology and to analyze and disseminate information innovation cycles for each sector Plan of action in the short, medium and long term Then we suggest the proposed action plan for the short, medium and long-term: In the short-term: Training course to monitor team. Implement Suggested innovation strategy and follow each of its stages. Disclose in the media of the region or the establishment of the structure that is most convenient and accepted by the actors of the innovation system in the region. Inclusion of a representative from the P&I Center in the Departmental Council for Science, Technology and Innovation - CODECTI. Conduct a pilot of transfer of methodologies to some selected companies. Official opening of the Center with conference with national or international expert and Policy and Technology Management Research Group participation and dissemination of a permanent seminar on the topic In the mid-term: Contact, convince and attract key actors for implementation and execution of projects, technological and innovation missions, to know and learn of innovation centers worldwide. Implementation of tools and methodologies in the future Centre. Permanent Seminar on Innovation management with national and international experts In the long-term: Participation in calls of Colciencias, Innpulsa, Enterprise Fund and others. Financing the center with greater emphasis on projects, meetings, public services and resources. Consolidation of the Permanent Seminar on Innovation management with national and international experts. 3. Phase II This phase of the project had the following elements: Training course to computer monitor.

13 Conduct a pilot of transfer of methodologies to some selected companies. Benchmarking of research groups in the region Training the computer monitor and companies At this stage the following institutions participated, including government entities and private companies Ladrillera la campana Asociación curtidora la María Ethereal GF Helix Brigcitips Café Quindío Bitram tienda Big citips Sumsei Sav solutions Big chip sas Government of Quindío The course looked 10 sessions presencial working in Armenia, where was transferred the following methodologies and concepts for the future development of the Productivity and Innovation Center: String Data-Information-Knowledge-Technology - Innovation Technology Concepts Innovation - Oslo Manual Classification of innovation - Schumpeter, Freeman and Perez, other forms of classification. S Curves - Theory and application forms of data sets of technology and innovation. Models of Innovation: Technology Push, Demand Pull, Articulated, fourth generation and fifth generation. Diagnosis of innovation Albacete Technological Profile of "mgt" Diagnosis of Booz innovation strategy Systems approach to innovation. Innovation systems as Freeman and Lundvall. Forms of articulation in innovation systems Basics Technology Watch and Competitive Intelligence Advantages and Benefits of Technology Watch Exploration of tools and databases Explanation of the tools for the analysis and organization of information. Practice on information search in scientific databases and patent as: Google, Scopus, WIPO and Spacenet

14 Stage - Gate and Open Innovation There was a selection of technology and innovation gaps: Application MIC - MAC Report generation for each company MIC MAC Plans motor - Unit (direct, indirect, potential, potential indirect analysis report graphs) innovation DNA Barriers to innovation Tool for technology transfer projects Matrices strategic corporate attended Action plan on participating companies The methodologies applied to employers were: Technological profile Innovative Profile DNA of innovation MIC-MAC Action Plan 4. Conclusions Was formulated and implemented the strategy for the future of innovation Innovation Centre in the region studied (Armenia, Quindió, Colombia) Specific methodologies were chosen so that the future Productivity and Innovation Center begins offering services in the area and achieve alignment with the other actors in the innovation system in the region. Were transferred methodologies as: Technological Profiles, Innovation Profiles, gap analysis, strategic matrices of innovation and technology action plans, barriers to innovation and DNA of innovation to a initial group of companies in the region. Was raised as one of the objectives is that the research groups of universities in the region and Parquesoft co-develop an own software of technology watch and provide this service in a strategic alliance. It identified the need to generate a new phase III power to transfer methodologies to a larger number of companies to form "innovation managers" for the region, that way you can contribute to the revitalization of the innovation system region and generating innovation culture. 5. Acknowledgements To achieve the correct transfer of methodologies and coaching successes had the support of prestigious institutions in the region and so thanks are for Armenia Chamber of Commerce, the

15 Department of Productivity and Competitiveness and Regional Competitiveness Commission of Quindío. 6. References Aguilar, S (2012). The S-curve as a Tool for Measuring Product Life Cycles. Journal of Technology Management & Innovation. Chesbrough, H. (2006). Open Innovation: Researching a New Paradigm. Publisher: Oxford. Cooper, R. (2011). Stage-Gate International. Product Development Institute Inc.\ Escorsa, P. (2001). Technology Watch to Competitive Intelligence. Publisher: Prentice Hall. Perez, C. (2001). Technological change and opportunities for development as a moving target. CEPAL, [online] December, 75, pp In: [Accessed 29 October 2009]. Quintero, S. (2008). Technology Management Methodology For projects in the company. First International Conference on Technology Management and Innovation. Saffo, P. (2007). Six rules for effective forecasting. Harvard Business Review, July, 48 (7), pp Schilling, M. (2010). Strategic Management of Technological Innovation. Publisher: McGraw - Hill.

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