Fuelling innovation in Jamaica
published: Wednesday February 8, 2006
ON JANUARY 1, 2006, the CARICOM Single Market and Economy (CSME) came into being and early last week, leaders of several of the territories came together to ratify and mark this historic development.
But what does this mean for the business executive who must be able to interpret the demands of the market within the CARICOM Single Market (CSM) or the wider global village?
The CSME is a single but important reminder of all the forces that are constantly driving the need for Jamaican businesses to innovate in order to compete in today's global market place.
Consumers have far more access to information, thus expanding their choices of service providers and increasing their expectations.
Business people in Trinidad have prepared themselves, probably better than most other CSM business leaders, by retooling their manufacturing industries and taking calculated risks by investing heavily in other CSM territories in order to broaden their territorial reach to these consumers.
Jamaica has been a major recipient of these investments and Jamaican business people have felt the press of this growing regional competitor.
Staying abreast of the latest in business innovation and other leading management ideas is an absolute requirement that must be met (it is no longer an option) by anyone who is serious about staying in business.
An outstanding opportunity to stay abreast of innovative ideas is the upcoming seminar from a professor from Harvard Business School, Clay Christensen, who is one of the world's leading authorities on business innovation and who will be presenting on the subject on February 16 at the Jamaica Pegasus.
THREE CATEGORIES OF CONSUMERS
According to Christensen, there are three categories of consumers that companies can look at to find opportunities for innovation and new revenues.
The first category is non-consumers. These are consumers who lack the ability, money, access, or convenience to accomplish an important job for themselves.
The solution is to provide a simpler solution at a lower cost, focusing on volume.
Examples of new revenue streams include Voice over Internet Protocol (VoIP) where consumers in Jamaica now have the ability to make unlimited long distance calls for as little as US$25 per month.
The second set is under-served consumers. This group represents consumers who use a product but are frustrated with its limitations and are, therefore, willing to pay for enhancements which offer the features that are most important to them.
For this example, the number one frustration to both American consumers and corporations when outsourcing to India is the difference in culture.
Although cost-effective, certain specialised services need to be more closely managed, but remain cost prohibitive when the service is provided from within the U.S. itself (over 4.5 million Americans still work in call centres today!).
With its large number of well-educated professionals, the Caribbean can definitely position itself to offer 'Nearshore' services.
According to Geoff Seyon, chief executive officer of Franklin Winston, a leading U.S. business consulting and nearshore services firm, "Having spent two years managing over 700 people in India for the world's number one U.S. business and technology consulting firm, it is clear to me that the India model has major issues in delivering high-end services.
The Caribbean, however, has so much more to offer because of its cultural and geographic affinities to North America. And of course, which U.S. manager would ever refuse a trip to Jamaica any time of year? This is why I have established my own firm to focus exclusively on services from the Caribbean."
The third group is comprised of over-served consumers.
These consumers have stopped paying for further improvements in performance that once commanded high premiums. In this case, the solution is to provide a service that meets the basic needs of the customer.
For example, instead of local distributors importing more expensive brands, they can partner with local manufactures to support Jamaican production of local, basic canned food items.
Not only can these brands be consumed locally, but can also be exported to other regions of the world. With the rate of change in today's business environment, accessing and quickly leveraging ideas such as the ones that were outlined above is essential.
PROVIDING IDEAS ON INNOVATION
Fortunately, one does not always have to leave Jamaica to be exposed to leading edge concepts.
Through a company called Knowledge Works Consulting, local executives now have access to online e-Learning and audio/video conference and seminars from Harvard Business School Publishing in the Caribbean.
While the Harvard Business School approach to e-Learning is well tested and found to be effective, coordination by Knowledge Woks Consulting does provide good assistance to users in the business community.
The best business thinkers who write and speak on wealth creation always start with ideas, not with the buying and selling of products and services.
NARROW THE FOCUS
They will often cite Steve Job's idea to create the mass-market personal computer (PC) known as Apple, Bill Gates's idea to create and 'give away' his operating system on which most PCs run, or the simple idea of the 'Pet Rock' creator to convert a very common commodity, stone, into customised 'pet' to which consumers would flock.
But ideas tend to germinate in trained minds and innovative ideas are those that have the biggest impact on the future.
Getting some world-class guidance on innovation can begin to put Jamaica in the right position to compete in the CSM and a globalising world.
I believe that tremendous opportunities exist for Jamaican business leaders who become focused on innovation to remain relevant in an ever-changing marketplace and to grow their operations.
I would suggest that now is the right time to narrow our focus on innovation. It is a focus that all sectors - business, government and other categories of our society - need to adopt.
Aubyn Hill is the chief executive officer of Corporate Strategies Ltd., a restructuring and financial advisory firm. Respond to: writerhill@gmail.com
published: Wednesday February 8, 2006
ON JANUARY 1, 2006, the CARICOM Single Market and Economy (CSME) came into being and early last week, leaders of several of the territories came together to ratify and mark this historic development.
But what does this mean for the business executive who must be able to interpret the demands of the market within the CARICOM Single Market (CSM) or the wider global village?
The CSME is a single but important reminder of all the forces that are constantly driving the need for Jamaican businesses to innovate in order to compete in today's global market place.
Consumers have far more access to information, thus expanding their choices of service providers and increasing their expectations.
Business people in Trinidad have prepared themselves, probably better than most other CSM business leaders, by retooling their manufacturing industries and taking calculated risks by investing heavily in other CSM territories in order to broaden their territorial reach to these consumers.
Jamaica has been a major recipient of these investments and Jamaican business people have felt the press of this growing regional competitor.
Staying abreast of the latest in business innovation and other leading management ideas is an absolute requirement that must be met (it is no longer an option) by anyone who is serious about staying in business.
An outstanding opportunity to stay abreast of innovative ideas is the upcoming seminar from a professor from Harvard Business School, Clay Christensen, who is one of the world's leading authorities on business innovation and who will be presenting on the subject on February 16 at the Jamaica Pegasus.
THREE CATEGORIES OF CONSUMERS
According to Christensen, there are three categories of consumers that companies can look at to find opportunities for innovation and new revenues.
The first category is non-consumers. These are consumers who lack the ability, money, access, or convenience to accomplish an important job for themselves.
The solution is to provide a simpler solution at a lower cost, focusing on volume.
Examples of new revenue streams include Voice over Internet Protocol (VoIP) where consumers in Jamaica now have the ability to make unlimited long distance calls for as little as US$25 per month.
The second set is under-served consumers. This group represents consumers who use a product but are frustrated with its limitations and are, therefore, willing to pay for enhancements which offer the features that are most important to them.
For this example, the number one frustration to both American consumers and corporations when outsourcing to India is the difference in culture.
Although cost-effective, certain specialised services need to be more closely managed, but remain cost prohibitive when the service is provided from within the U.S. itself (over 4.5 million Americans still work in call centres today!).
With its large number of well-educated professionals, the Caribbean can definitely position itself to offer 'Nearshore' services.
According to Geoff Seyon, chief executive officer of Franklin Winston, a leading U.S. business consulting and nearshore services firm, "Having spent two years managing over 700 people in India for the world's number one U.S. business and technology consulting firm, it is clear to me that the India model has major issues in delivering high-end services.
The Caribbean, however, has so much more to offer because of its cultural and geographic affinities to North America. And of course, which U.S. manager would ever refuse a trip to Jamaica any time of year? This is why I have established my own firm to focus exclusively on services from the Caribbean."
The third group is comprised of over-served consumers.
These consumers have stopped paying for further improvements in performance that once commanded high premiums. In this case, the solution is to provide a service that meets the basic needs of the customer.
For example, instead of local distributors importing more expensive brands, they can partner with local manufactures to support Jamaican production of local, basic canned food items.
Not only can these brands be consumed locally, but can also be exported to other regions of the world. With the rate of change in today's business environment, accessing and quickly leveraging ideas such as the ones that were outlined above is essential.
PROVIDING IDEAS ON INNOVATION
Fortunately, one does not always have to leave Jamaica to be exposed to leading edge concepts.
Through a company called Knowledge Works Consulting, local executives now have access to online e-Learning and audio/video conference and seminars from Harvard Business School Publishing in the Caribbean.
While the Harvard Business School approach to e-Learning is well tested and found to be effective, coordination by Knowledge Woks Consulting does provide good assistance to users in the business community.
The best business thinkers who write and speak on wealth creation always start with ideas, not with the buying and selling of products and services.
NARROW THE FOCUS
They will often cite Steve Job's idea to create the mass-market personal computer (PC) known as Apple, Bill Gates's idea to create and 'give away' his operating system on which most PCs run, or the simple idea of the 'Pet Rock' creator to convert a very common commodity, stone, into customised 'pet' to which consumers would flock.
But ideas tend to germinate in trained minds and innovative ideas are those that have the biggest impact on the future.
Getting some world-class guidance on innovation can begin to put Jamaica in the right position to compete in the CSM and a globalising world.
I believe that tremendous opportunities exist for Jamaican business leaders who become focused on innovation to remain relevant in an ever-changing marketplace and to grow their operations.
I would suggest that now is the right time to narrow our focus on innovation. It is a focus that all sectors - business, government and other categories of our society - need to adopt.
Aubyn Hill is the chief executive officer of Corporate Strategies Ltd., a restructuring and financial advisory firm. Respond to: writerhill@gmail.com
