033 IP Is Your Business

About this Episode

Gjorgji Rafajlovski (Gogo) is the Operational Director @SEEUTechPark in North Macedonia and an IP Consultant who helps entrepreneurs and innovative startups reach their maximum potential.

With an ongoing 15+ years of a successful career in managing start-up Ccnters, Incubators, Accelerators & TechParks, Gogo has built-up a portfolio as an experienced business consultant & mentor, passionate about technology & brands.

His background includes Operations Management, Startup Investments, Intellectual Property, Business Valuation, Innovative Growth. When he’s not supporting a world-changing start-up business, he loves outdoor sports!

We discussed how tech parks support start ups, the importance of IP, and we debated open innovation. Have a listen!

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Episode Transcript

Katherine Ann Byam 0:00

GoGo Welcome to where it is lunch. It's such a pleasure to have you on the show. I really want to understand all about cu tech Park, and what you've been doing in North Macedonia. Tell me a little bit about how the tech Park has positively impacted business and startup investment in your country.

Gjorgji Rafajlovski 0:46
Yeah, sure. So basically, the SEEUTechPark story began back in 2013. And it kind of started as a pilot project of the university. By the way, we are a private university overthink the first private university of everything here in North Macedonia. And we, we had this idea to start simulating the startups, the investment potential in and innovations through students and young people here in North Macedonia, and try to boost them into developing new startups and new tech tech businesses that has the potential to grow into change the world we live in. So basically, back in 2013, we kickstarted as a as a pilot project.

And then two years later, we incorporated ourselves as a Technology Park, actually, SeeUTechPark, and we started developing our own internal ecosystem, with men, we can boost our creativity and innovation. And then we became self sustainable actually, even today, we are one of the few organisations that have its sustainability as a as a core business value. And I think that's important because if you if you try to teach, especially young people, and innovators in becoming a real businessman and developing their own business, you should not just talk the talk, but you should also walk the walk. And this this system actually helped us to become more community-based and become more recognisable in our country as one of the few organisations that actually has the potential to commercialise your product and to bring added value.

Through this year, we specialise in many tailor-made services and products. And we kind of became a trademark for something that can be widely recognisable, not just in North Macedonia but in the whole region. And these are the two separate services that we provide. One is startup valuation or a company valuation. We do this as a third party, between investors and startups, wanting to raise money, and then another services, IP. So intellectual property. This is a we think is also something that can be introduced, and it should be introduced to all startups, especially in those startups, talking with investors talking with Parisian partners that want to expand their businesses and to become global players.

So basically, these two services are kind of unique to our ecosystem. And we we kind of added it to our everyday programmes and other services that are more or less equal, like every other technology parkour accelerated through the years. Seven and eight years along the path, I think we have accomplished good results in starting helping young enterpreneurs and startups reach their maximum potential. And nowadays we have helped more than 30 companies from from our country. Actually 13 out of them are still located that our technology, so they're located with our university, and we've created directly more than 150 new technology jobs which are boosting the national economy and the IP system in particular.

Katherine Ann Byam 5:16
This is a wonderful story. And really important to see how these, this innovation that you're doing is helping to grow businesses, not just in North Macedonia, but compared to the entire region as well. So this is fascinating to see, I wanted to ask a little bit more about intellectual property is this is to areas of particular specialisation. And I want to understand why this is important, first of all, and at what stage of development should young startups be getting into IP protection?

Gjorgji Rafajlovski 5:50
Yes, that's a very good question or two questions. I will start with a second one. At what stage do the startups need to think and to implement IP? I would say in the very beginning of developing your product or service, even before you create a company. Why is this because a lot of startups, even nowadays, think that intellectual property is something that you can add on along the path as you're developing your business idea, or a product or a service. But it's, it's not a single event thing.

So basically, intellectual property is something that you think of you plan and you implement during the whole journey of upgrading your startup. Because if you're waiting for the perfect conditions, to draft, to plan, and to implement some sort of IP, it won't happen ever. So basically, you have to start thinking about intellectual property as an asset to a company and to your product or service. So in terms of when they should start thinking about protecting the IP, I would say that even before you launch your product or service, you have to have some sort of IP strategy.

IP strategy is not something that you can immediately protect but see how certain things can develop in the certain way that in the future, you can have your assets and your IP working for you and for your business. Having in mind the first question as tp why it is important, only IP is is the asset that doesn't depreciate over time. So basically, the more you use it, the more value it gets. And the IP is the core thing that your business is unique for. So basically, every other thing that you have, business wise for a startup, let's say the office, the desk, the software, the computer, or a prototype can be easily copied, IP, the core of the IP is your your uniqueness at work, and what you're bringing, as a unique point, to the community and to your customers.

And that's why it is important. Nowadays, globally, more than 80% of all assets worldwide, are IP assets are intangible assets. So basically everything else that we see around us, surrounding every business is less likely to be to be copied if it's IP protected. So that's why I think I'm very pro on on on developing intellectual property that can boost your business, and then can bring unique value to both your product enter your investors, and for sure, you should think of how is the best way to protect it and to to give added value to your product or service.

Katherine Ann Byam 9:36
It's a really important point and very interesting point. And I'm going to challenge you now. And my challenge is that there are some that argue that a more open source approach is better for for innovation, and the greater good. So if we take for example, you know, Elon Musk and what he did with Tesla, or even a more recent example, with the ongoing debate around the COVID vaccines, what are your thoughts on whether or not we should embrace some element of openness when we're creating things that are new and game changing for the planet?

Gjorgji Rafajlovski 10:16
Yes, even nowadays, with the global pandemic, this is a more like, floating or open question that should be answered. But I'm personally very pro of intellectual property and the protection and let's say the benefits used by the system. But let me put it this way, you have this innovation system that somehow should be protected, you cannot have both extremes.

The first extreme is everything should be free, not protected at all. So anybody can use it. And it's another good thing for the free economy and for the in the Premiership. If someone could store your business or a product or a service that you've been researching or investing in for months or years, in the back end, you have this uniqueness, that that you should be able to commercialise it and you should be able to put this on the market and have a have a good return of investment for it. And so basically IP gives you a certain time for your business to commercialise a product or a service and then be the only player in the market for it, protecting you and your investment and your know-how and everything you put into a business for a certain period of time. It's not infinity, but it surely gives you an opportunity to get the investment back.

The other hand, the extreme opposite on the other side would be everything should be protected forever so you couldn't use anything without any approval from inventors. So, basically this is also extreme and it cannot be done, it would also hurt the economy and the inventors. So the perfect balance would be to boost innovativeness, to give people opportunity to patent, to protect, and to invent certain things, but also give give them just enough freedom to be able to commercialise it and not to put a forever mark on their products.

So basically, this is the fine balance between open innovation and too much protected innovation. At the end of the day, I will say that there are very positive towards the system that actually rewards something that is new, that is unique, and that could solve a person or a business problem. And and yes, you have to have a business opportunity to commercialise this kind of inventions in order to keep the wheel spinning.

Katherine Ann Byam 13:26
Yeah. What specifically should we be thinking about when we're starting to think about IP protection? So what things can we protect? And what can we not protect?

Gjorgji Rafajlovski 13:38
Basically, IP protection is very territorial. So you can protect a certain thing on a certain territory. So there is no uniqueness to what you can protect worldwide when we're talking about inventions. When we're talking about copyright, and we're talking about the software, it's pretty much protected from the moment that it has been created. So basically, it's some kind of universal protection.

You can always protect something that is a real invention that is new and is a breakthrough technology and then it has a market potential. People are trying to buy. You cannot protect something that is in plain nature. So basically, without a human intervention, you can protect let's say a plant or something that can be as a natural phenomenon in nature because you don't leave other people the opportunity to use it as it is. So basically something that is invented by people or by a group or by business, and is very unique, and it's something new, then it should be protected and it can be protected by IP rights.

Katherine Ann Byam 15:50
That's a fantastic response. And definitely, I think this is something that we need to get involved with. What do you see as the potential future for SEEUTechPark, and how you expected to transform the Macedonian economy in the future?

Gjorgji Rafajlovski 16:06
Thank you. That is also an interesting question. First of all, I see the development of the Tech Park as a good partner for startups and young innovators. That's for sure. I would see that in the next five years. We can help as many as young enterpreneurs that we can into the journey of commercialising their innovations, not just in this country but in the region and Europe also.

In general, I would like to see the first one of many unicorns from from this country and this region on the startup testing, especially in Europe. But also, I would like to see more investors tapping into this market because here in this region, we have very good talent, very skilled young people that are very opportunistic, and we have great conditions for for establishing and starting businesses.

So I would see ourselves as a good partner in the near future for every entrepreneur and startup. But I would also like to see the textbook, connecting with other hubs and innovation centres in the region, and with other universities, not just here, but also in Europe, and to develop and to bring value to to our clients and potential clients in boosting technology and innovation. Not just in our country, but but worldwide.

Actually, we're here just to promote entrepreneurship as a system and try to develop the new generation of Macedonian enterpreneurs that can go out there and change the world.

Katherine Byam 18:03
It's a great challenge that you have set up for yourself. And thank you for sharing your journey and SEEUTechPark with us. Thanks for joining the show.

Gjorgji Rafajlovski 18:12
Thank you, Katherine. Likewise,

031 Innovation Starts with I

About this Episode

Saleema Vellani is an award-winning serial entrepreneur, keynote speaker, a professor, and the author of Innovation Starts With “I”.

Saleema is the Founder & CEO of Ripple Impact, which helps entrepreneurs increase their influence and impact through accelerating the growth of their platforms and businesses. She also teaches design thinking and entrepreneurship at Johns Hopkins University and is a frequent guest lecturer at business schools.

We discussed her new book, Innovation starts with I.

Here's the link to pre-order her book
https://www.indiegogo.com/projects/innovation-starts-with-i#/

And a link to her 100 Coffee Challenge.
https://saleemavellani.ck.page/100-coffee-challenge

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Episode Transcript

Katherine Ann Byam 0:02

Hi Saleema, and welcome to Where Ideas Launch, The podcast for the Sustainable Innovator.Welcome, and thank you for joining me.

Saleema Vellani 0:35

Thank you so much for having me, Katherine.

Katherine Ann Byam 0:37

You must be so chuffed and excited about the launch of your new book. Why don't you tell us a bit about the journey to bring this book to life?

Saleema Vellani 0:46

Yeah, sure. So it depends on how far you want me to go back. But the journey essentially started in 2014. When I decided I wanted to write a book with a friend and I ended up parking the project. But it was an idea and we wrote some Google documents and started going for coffee with my friend and I asked him to co-author with me. And it was an initial phase of my life because I had been an entrepreneur, a successful entrepreneur of the past. And then for me, it was not about being an entrepreneur, it was about having the dream job.

And when I got the dream job, I realised it wasn't the job it wasn't as dreamy as I thought it was. And so I was trying to find my inner entrepreneur, trying to help other people unleash their inner entrepreneur while I was also trying to unleash it within myself and figure out, "How do I become an entrepreneur?" Again, how do I come up with a great idea? I would spend a lot of my nights on Google trying to figure out what are the trends, what are problems, I can solve what kind of business I should go into.

And I was looking outward, I was looking outside and not looking within myself. And the very same problem I was trying to solve for other people I needed to solve for myself. And so my friend ended up telling me, he said to me, "I think you need to live a little bit more before you're ready to write this book." And he was right. It was hard to hear it at the time. But I said, "Maybe I just don't have it in me right now to do this." And then I had a whole journey which I talked about in my book - a whole transformative journey. When I went through a whole evolving into this next version of myself and there's a whole life quake, my life had a crash, and everything kind of fell apart piece by piece. And I go into detail about that in the book.

And it was only until five years later when I picked up the book project again. When I decided, people were wanting to hear my story. People were wanting to learn from me. I was already teaching at that point. I was already doing a lot of the speaking and a lot of getting myself out there to share my story. And it was then that I had the confidence. And I decided, "Yes, it's time to do it." But again, I didn't know how to do it on my own because I didn't have a co-author. And I knew I had to write it on my own. But I got stuck. And I said, “Well, I did what I do best, which is build a team and put a team together to get the help I need so that the things that I suck at are not greyed out so that I can focus on the thing that I'm great at.” But then again, I got stuck again on the writing process because who am I writing this for? How do I where do you start?

A book is not like writing an article. It's a lot of work. So I ended up deciding to interview people, I got inspired. I have this process called the 100 Coffee Challenge which I used during my life quake to go out and get a job when I was stuck. And I had two weeks to find a job that was sponsored by Visa here in the United States. And I use that same process. I use that for many different things. And I and other people, my students and interns use that process as well, to go and have 100 coffees with people. So you learned a lot about yourself through that process. I call it active introspection by going out and talking to people, you learn a lot about yourself. It's not just looking inward, it's getting insights about yourself through your blind spots, especially by having those conversations with other people. And I did that same process with my book, I decided to interview 100 people.

So I interviewed people from all walks of life and met innovators, entrepreneurs, leaders, even Arianna Huffington, Alex Osterwalder, who created The Business Model Canvas and just a lot of really interesting people. And that made me realise that inspired me to write and to put all those insights together and essentially, the beginning of the book journey was, I would say, finding myself through other people and living my story and then being able to write about it through getting inspired through those conversations.

Katherine Ann Byam 4:38

What made you want to do intrapreneurship? Why was this something that consumed you?

How Saleema Started Her Career

Saleema Vellani 4:45

Hmm, for me, it's how I started my career. So it's familiar to me because I graduated during a financial crisis in 2009 from university and couldn't find a job. And so I ended up going to Brazil to do some volunteer work and get some more international experience. And it was interesting because I was supposed to work in an orphanage. And then at the last minute, my boss in Brazil called me and said, "You know, before you come to Brazil, I just want to let you know, you're not going to come to the orphanage just yet, you're going to be in Rio de Janeiro. And you're going to start this language school because the situation is ingrained at the orphanage and we need to have more funding to help us run our operations." And so I was put into Rio at age 21.

And had to start the school in Brazil. And in Brazil at the time, it was not easy to do something like that and to get something started, especially a business with very few resources that we had. And the situation we lived in, we didn't have water for most days. I was living in a really cramped room with bunk beds with other volunteers that were coming in and out. And it was just a really uncomfortable situation not having the water, having the internet, all those things. I was just working all the time with the school trying to get it to be successful. And it was there that I learned a lot about entrepreneurship and all the failures as well. Because we had a business model that was like, "let's teach all these languages to these different students."

We were a bunch of foreign volunteers. But we realised that that was a model for failure because it wasn't done initially enough. And we weren't getting enough students. Our classrooms are almost empty but it was just like all our group classes were turning into private lessons. So we ended up really taking a look at what we could do. And we said, "Well, what can we do.?" And so we decided to test this idea of just focusing on Portuguese for foreigners and getting rid of all those other languages, Italian, French, Spanish, etc. And it was when we made that pivot, and we reinvented ourselves. We were like, "Wow, the school took off." And now it's one of the top-rated schools in Brazil for learning Portuguese and wins awards consistently. And it all just started with that little project. And again, I was a co-founder, but it wasn't my idea that I was executing.

And so because I started my career with that project, I learned everything, I learned how to be comfortable being uncomfortable. I learned about how to start a business from the ground up. And I carry that on with me. So when I went to Italy, that's another story, I started a translation business. And that was how I survived starting these businesses even though I didn't call myself an entrepreneur, I think probably more like a creator, whatever you want to call it, but I never really labelled it. Because for me, I was embarrassed that I couldn't get a job. And this is what I had to do. And so when I started graduate school.

I didn't even tell a lot of people that I was running these businesses because it was for me, I failed. I didn't get the job that I thought I was gonna get after college. And so it was only when I came to the United States that's when I was like, "Boom! Entrepreneurship is not such a bad thing." Like it actually sounds. I've done it before. And when I tried the corporate thing and I tried to work on a nine-to-five for a few years I was like, "I really miss that, that level of creativity, that elation, the lifestyle that I had, and the freedom it was a lot of work. And I say I probably worked a lot more being an entrepreneur but there was a certain "I could really embrace myself and my skills and being myself."

And I think because we're evolving as humans at such a fast pace. We're in this reinvention revolution, where we're trying, we need to reinvent ourselves faster and more frequently than ever before. And so, I think because of that pace of growth that we're seeing right now, I would say that I love being an entrepreneur, but I also love being an intrapreneur. So I always do both, I never just do one or the other always, I call it in my book, hybrid-preneurship where you're embracing being in.

It doesn't have to be a corporate setting, it could be doing consulting work on certain projects. But I always think it's very important to contribute to the larger organisations because that will bring value. You're learning in both areas but you're maybe getting more training and maybe doing things that you wouldn't. You're trying to upskill yourself in one of your projects, or whatever. So I think it's important to embrace both to manage that risk. And I think just so entrepreneurship is very glorified, most people can just do it.

Saleema’s Advice For The Emerging Innovator

Katherine Ann Byam 9:22

That's so true. I think one of the other things that have become more and more clear is that innovation doesn't start with intrapreneurs, right. Employees are innovators every day. And I wanted to get into that because I know that you have some great advice for that in your book. What would you say to people, employees, to become more creative to express their creativity and take chances?

Saleema Vellani 9:50

Great question. I think the first thing to do is to start looking inward and that's what my book talks a lot about. Innovation starts with "I." Even though it happens to me, and anything that I did, if I did it alone, I feel that I failed miserably. All those things I did a lot. It was only when I had a team, a community, you know, a group of people or a support network around me. And so I think ultimately, you do have to start with yourself. And if you look at some of the best innovators and look at Steve Jobs, because his journey of enlightenment or transformation happened in India.

And when he came back, he was all rejuvenated and was able to really innovate with his work at Apple. And so, I think oftentimes we focus on the final product of the invention and we don't put enough emphasis on that personal transformation during that has to happen. And so for employees, I think we need to first drop those labels of employees and entrepreneurs because I think that's why there are so many entrepreneurs that are failing, and so many employees - it's hard to retain them. Even like the intrapreneur and entrepreneur thing, there are all these labels.

Sometimes people feel like as an employee, “I'm not successful.” Listen, an entrepreneur here, at least, that was what was considered cool and successful. And then if I was just an entrepreneur that was failing, Oh it's just interesting because I think we use these labels and they have certain connotations. And so I think, first of all, drop the titles and everyone should just have their brand as an individual, as a person and be brand-agnostic around being under a company. I think we see a lot of solopreneurs who are really, really attached to their company; but at the end of the day, they get hired or they're successful as a human or as an individual. And so I think the same thing with employees, really kill it as an intrapreneur. Really kill it with your work within the company, and not just your day to day role.

See where you can give back to your community and your job or start something within and I think that's an opportunity to learn as much as possible. I think people should be in jobs to learn as much as possible so that they can be an entrepreneur at some point in their life. Or if not, start running or get their project going on a smaller scale. And I think what an important tool that's in one of my early chapters of the book, it's on finding your sweet spot. I think our sweet spots, not just something that we discovered, I think we have to develop it, we have to work at it. And that's where I think being in a job is great because you can have a little bit of room for failure and to learn, and you're not expected to always be the expert. You have a community. You have resources. You have a lot more. You have less risk, oftentimes than just being a sole entrepreneur.

And so I would say during this exercise called "sweet spot mapping" where you think about it like your four quadrants where you look at your career as a portfolio or your life is a series of projects, and not so much like what is a series of jobs, and really think about what projects you excel that so what are the projects that people and you know that you did really well and not just work projects that it could be stuff that you do on an advisory board. It could be volunteer work, it could be personal things too. And so really think about those projects that you really excelled at. And then you want to look at what are the projects that people gave you the most positive feedback on, so you got a lot of praise.

And sometimes you get taken by surprise because people will tell you things. And you're like, "Wow, I didn't know, you know, you saw that in me" or "I didn't know I was great at this." or "I didn't know I did that really well. We have blind spots, we're human. So I think really trying to understand the perspective of other people goes a long way. And then the third thing to do is to really think about those projects that you really love doing. You know, you might not be the best at them, but you love doing them. And those activities that you would even do for free because you love doing them so much. So whether you're running a podcast, or you're writing a book or doing something that you love, think about those things.

And then the fourth quadrant is the most important one because that's where we often quiet our inner voices, and we don't listen to ourselves enough. And it's the open-to-testing area. So that's the projects that you're open to testing. So some of those ideas that you have late at night where you wake up at three in the morning, and then you don't write it down, or some of those projects on your back burner that you never get to do. They are maybe slightly out of your comfort zone.

Maybe you're like, I don't have the time. But I know I really need to do this. It's those projects, think about how you can scale down and start with baby steps or micro-steps and just get them going because those are the projects that you often have to develop more skills in but they're projects or skills or things that you can be very successful in. Often times you touch on, you iterate, and you pivot in a different direction. So like for me it was, public speaking or certain things that I was very uncomfortable doing and I never thought that I would ever do and that I was always a behind-the-scenes desk person and then just trying some of those things, I got invited to some events or certain things I was like, "No. I'm just gonna do it." And it's those projects, those skills, or activities that I think we need to pay attention to. And I think we could be more successful as innovators or entrepreneurs or entrepreneurs if we take on more of those open to testing projects,

Katherine Ann Byam 15:25

I like the idea of being open to testing. Now we have a lot of challenges facing us in the world, and this podcast is rooted in this idea of sustainability. I see that we have a huge opportunity. Like, I think we have an opportunity now to reinvent a lot of things that we've taken for granted in the past. And that's opening the door for many people to step into themselves and express themselves differently. What are your thoughts on sustainable innovation? And how can we do more to lift it and support it?

Upholding Sustainable Innovations By Coming Together and Embracing Diversity

Saleema Vellani 15:59

Yeah, so sustainable innovation is a whole topic of its own. I would say that there's a lot on that. I think right now we're seeing a lot of really neat stuff with the younger generations, like trying to clean up all the mess over the past few decades. There are some serious issues we have in the world that we're trying to figure out how to solve whether it's through social enterprise or corporate innovation, social innovation through companies and through different means.

Solving the Problems of the World by Leveraging Diversity

But ultimately, I think that we need to have more conversations with the different stakeholders. So I think coming together and really embracing diversity, I think sometimes we hear like, great minds think alike. And I really think that great minds think differently. And so I think we need to bring different minds together to solve that. I was actually just in a conference this morning on food security in Cairo. And it was interesting because it was virtual. But it was interesting because it was all these different stakeholders from different countries that were coming together to discuss these things. And I think even especially now in this virtual world, we need to have more of those conversations with different stakeholders, and make that a thing.

Innovation Starts With “I”: The Four-Step Process to Coming Out With Your Sustainable Innovation

And so I would say for sustainable innovation, I say that the first thing to do is if you're like an individual that's trying to figure this out, and you do something, whether you're a leader in a company or you're a business owner, and you're trying to figure out how to incorporate that, I would say that first start with yourself. And again, innovation starts with "I." So do some self-ideation. So really look at your passions, what frustrates you. So your values, your skills, your experience, and try to figure out how you can inject your uniqueness into the world.

And I would say that’s the first. The second thing to do after you do that self-ideation is to start adding value to people wherever you can. So whether it's through some volunteer work, some expert hearing, going to a different country or virtually helping other people however you can really try to bring your expertise and your value. I think that goes a very long way. I think we need to prioritise giving more, and we learn a lot about ourselves. But we also get some really great ideas when we do some of those activities that are just giving value to people.

And then the third is to really embrace failure. I think that if more people embrace failure, we would see more innovation happening on the sustainability front because a lot of times it's their big, big hairy problems and how do we solve these things. And we do have to go through cycles of iteration and learning to get to that point of a good idea becoming a great idea. We don't start with great ideas, usually. So pivoting when it's time to pivot and think. Oftentimes, we don't know when it's time to stick or like to evaluate the risk and all this sort of stuff. There's just so much to really think about and to also listen to our inner voice. And then when is it time to pivot because a lot of times we just give up where we say this is not going to work. And sometimes we just need to have the right conversation, or we need the right training with the right skills or technology. And we let go of those ideas, or we let go of those projects. And so, I go through that four-step process.

Know When To Pivot

Katherine Ann Byam 19:12

Yeah. That's interesting. You just touched on pivoting. And I guess my question is, what would be your criteria for knowing it's time to pivot?

Saleema Vellani 19:23

Great question. I actually interviewed Doug Galen from Rippleworks Foundation. They do a lot of connecting with social entrepreneurs with Silicon Valley mentors. And so they have a really interesting business model. But he mentioned to me that it's important to evaluate what are the three critical risks? What are those three critical risks and really think about those three critical risks?

Then you would know when you do that analysis. Is it time to stick and keep going as a time to let go or is it time to pivot so really thinking about the risks, and doing some coming from the economics world probably doing some cost-benefit analysis on that front as well? If there's a way you can kind of evaluate, is this the path? What are the risks? What are the benefits, and in doing that analysis, I think that can go a long way? If there's a way to simplify it, I would say do a 100 Coffee Challenge as I mentioned. Go and talk to 100 people.

Talk to people from different walks of life, different cultures, different industries, especially not just your own industry. I think that gives a lot of insight so that you're not just putting all the weight on yourself for making that decision. And especially talking to industry experts. I think, oftentimes, we need to have a diversion and talk to different people. But I also think that there's a certain level of, especially if you are trying to innovate and you're trying to scale your business, there's a lot of lack of mentorship that's really connected to industry expertise. And that's something that actually Rippleworks Foundation is trying to tackle by connecting those industry expert mentors and stuff. So I think really thinking about that is key, if I could simplify it.

Katherine Ann Byam 21:16

Perfect! How can people find out more about you?

Saleema Vellani 21:19

Yeah, so they can follow me on social media. I'm pretty active on LinkedIn. So I think you can put in the show links, my LinkedIn URL. I'm also active on Instagram and Facebook and Twitter. The handle is at Saleema Vellani. And the book is called Innovation Starts With"I" and as you mentioned, it's going to be released later this spring so people can pre-order it already we had a successful Indiegogo campaign last year and we're still taking pre-orders and so those are the different ways where they can visit my website saleemavellani.com and subscribe to the newsletter. That's another great way to stay in touch.

Katherine Ann Byam 21:56

Perfect. Thanks so much for joining us on the show, Saleema. It's been wonderful hosting you.

Saleema Vellani 22:01

Thank you. Thanks so much, Katherine for having me.

022 StartUp Ecosystems

About this Episode

Marija Dimovska is a project management professional with 10+ years experience in NGO and business sectors. She has coordinated projects across cultures, implemented projects in innovation ecosystems working with a focus on technology and youth capacity building.

When she was 14, Marija wanted to know what happened behind the scenes of a Disney theme park, that led to thousands of customers turning up every year to have a good time. She’s always been interested in the behind-the-curtain process and how to streamline operations creatively. She worked in organisations such as the U.S. Peace Corps and has built managerial expertise, while experiencing the power of a diverse team building an intradisciplinary know-how.

“When we bring together the human factor with the with digital tools/ technology we are creating and introducing a formidable instrument in the creative process of driving solutions to local and present-day global challenges!”

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Episode Transcript

Katherine Ann Byam 0:01

Good morning, Maria, and welcome to the show.

Marija Dimovska 0:50

Good morning, Katherine. Thank you for having me. And thank you for reaching out and my pleasure to be here with you and share some information in detail about the startup and innovation ecosystem from North Macedonia.

Katherine Ann Byam 1:02

Tell us a little bit about the key drivers of the Northern Macedonian economy. I mean, I don't think a lot of people know enough about it. So why don't you start with that?

Marija Dimovska 1:11

Small and medium enterprises play a pivotal role in the economic growth of the Republic of North Macedonia. Actually, they comprise 99.8% of all businesses. And unlike its use in the Western Balkans, the Republic of North Macedonia has a more advantageous climate. And it comes in an advantage point in terms of providing support and developing policies for SMEs, startups included. We have one particular state institution, which is called the Fund of Innovation and Technological Development. They have made this far €76M in investments for startups, particularly for the autumn of 2020. They invested €2.35 M in startups and scale-ups that pertained to different sectors and find themselves in different stages of their growth and development.

Katherine Ann Byam 2:09

Fascinating startup success stories! Tell us what are the big stories that you have about Northern Macedonia’s work?

Marija Dimovska 2:18

Actually, you know, they say that crises such as the bubble crunch from several years ago and the COVID crisis in 2020 are the most fertile ground for innovative ideas and businesses to launch and that stands true for the Macedonian startup ecosystem. We have had a lot of progress noted in a number of startups. Such a startup is AirCare. It's actually an application that signals and attracts air pollution. Air pollution is a concern to communities and to certain cities in Macedonia, particularly the capital of the western region of Macedonia Southern Western part Bitola and Tetovo as well in the north western part of the country.

So the founder has decided to devise an application that will show areas of polluted air. And throughout 2020, before the time that COVID had emerged, he had already launched his application in every single Balkan country. But throughout COVID, he launched it in the United States on the western coast. And in early 2021, he launched it on the Asian continent in the United Arab Emirates and two other Asian countries, India and Turkey. And for 2020, Gorjan, the founder of AirCare was awarded the Young Innovators Award in Europe, which is quite a prestigious award for young entrepreneurs that are developing SDG-focused innovative business ideas and solutions. We have other successful startups. Brainster is in education and technology. Throughout COVID, they actually managed to scale up and set up an office in the EU market. So they opened an office in Vienna back in May 2020. And they're just about to open offices in Slovenia in Ljubljana .

Katherine Ann Byam 4:23

Well, it sounds like a great success. And how critical will it be to get this ecosystem and startups to support running and positioning North Macedonia around its neighbours as well? How critical is it that your startup community grows?

Marija Dimovska 4:42

Well, I can tell you that thus far we have actually formed a regional startup Innovation Group where we constantly are in collaboration and we make sure that the communication is unremitting, that there is a flow of data and news among ecosystem representatives from the western Balkan countries.

Back in 2019, I actually have been attending the regional hub where there were representatives from Serbia, Montenegro, Albania, Kosovo, Bosnia, and Herzegovina. We have very good collaborations with the startup ecosystem in Bulgaria. We also signed a Memorandum of collaboration with the Business Innovation Centre, an incubator at Tina, Rana Metropolitan University, which is situated in Albania. And we have good collaboration with a Greek startup ecosystem with OK!Thess. They're a very similar organisation to Startup Macedonia where I work as a project manager, and they focus on the development of startups within the northern part of Greece.

Katherine Ann Byam 5:50

Fantastic. How can foreign interest get involved in supporting the growth in your country and in the area and the region?

Marija Dimovska 5:59

For those particular purposes and start-up Macedonia as an umbrella organisation or that connective tissue within the national ecosystem is working on not just the development of the digital ecosystem platform, but also other services. Such a service is the soft-landing option where we basically invite startup-preneurs or people who would like to set up a business and launch it from North Macedonia. And it's very simple, and it's very easy in terms of the ease of doing business.

The World Bank has ranked on its last report, North Macedonia on the 10th position. Because of the digitalization of the administrative and bureaucratic procedures for setting up a business, you can set up a business within 24 hours, and you obtain a working permit and a residence permit within two weeks. Startup Macedonia offers those legal services, in particular to non-Macedonian citizens who would like to obtain all of the permits so that they actually can set up their own satellite office here or open and launch a business from North Macedonia.

Katherine Ann Byam 7:09

What are the incentives to living in Macedonia? Tell us a bit about the culture and the people?

Marija Dimovska 7:14

Like all the other Balkan countries, we have had a tumultuous history. But in terms of where we are heading and where we would like the country to further grow and prosper, we're a young democratic country, and we have a low living cost of expenses. Also, lower corporate taxes have a great tech talent pool due to the fact that we have 11 faculties within the state and private universities. The Employment Statistical Office shows that there are 10,000 graduates per annum, and 80% of them are bilingual. When I say bilingual speaking, I'm thinking from the terms of languages spoken in the European Union.

Most of them have between C1 and C2 English language proficiency. And between B1 and B2 second foreign language proficiency. In Macedonia, the second foreign languages that are most often spoken are German language and French language. We also have three startup cities within the country. Skopje, the capital, is probably the most developed in terms of startup resources and tools. Bitola also has a great tech talent pool.

And that was well, we have three co-working spaces in the capital two in the western part of the country, one in the north western, and another one in Ohrid, which is probably the most renowned city in the country due to archaeological sites and it's a famous tourist attraction. And we have three accelerators and one Science and Technology Park. Out of the three accelerators, one is positioned outside of the capital because we wanted to democratise innovation and make innovation resources available to young entrepreneurs outside of the Capitol so that we have startups headquartered not just in Skopje, but in the smaller communities of the country as well.

Katherine Ann Byam 9:20

Fantastic! Tell us about the platform that you've built and how beneficial it has been for getting this community up and running.

Marija Dimovska 9:29

The platform in itself is actually a technological tool to do precisely that - to democratise the resources and tools for those innovative ideas and transform into SDG-focused businesses. Back in 2018, Startup Macedonia made the research of the ecosystem. We wanted to map out the existing partner organisations. When I say partner organisations, I mean service providers institutions and organisations that offer growth services to startups and young entrepreneurs, and to see the pain points of the startups as well.

And the analysis showed that there was a mismatch between what the startups were looking for in terms of help and assistance. They struggled with access to finance. They struggled particularly with access to the market. Because we do have a club of founders. that constitutes not startups but more concretely scale-ups - startups that have already are positioned on foreign markets and want to expand on another market. And on the other hand, we had the service providers who offered some kind of help, but it wasn't the exact type of help that the startups were seeking.

So while this data-driven platform, which currently is up and running, (the beta version was launched back in 2019) we launched the 2.0 version throughout COVID. At the end of June, early July 2020, we are automatically matching the startups with the service providers. The most important thing is that startups provided us with the detailed information about their growth stage and the type of services and help and assistance that they're looking for and need so that we can actually make the respective match for the corresponding match.

We have an additional feature that is currently being implemented within the ecosystem platform that's a mentorship network where we are trying to aggregate not solely of domestic mentors that come in the form of experienced entrepreneurs that have already gone through the entrepreneurial journey, but also international ones so that we can provide the scaleups who want to reach another market with the adequate, seasoned entrepreneurial experience. The Macedonian ecosystem is not shy when it comes to having a business idea.

What we lack is basically sociological entrepreneurial support. And this is why the Ministry of Education and Startup Macedonia's as an umbrella organisation has tried to engage governmental representatives and academia so that we explain to them the challenges that there are within the national ecosystem, and also engage academia and governmental representatives in transforming the education and introducing varieties of entrepreneurial courses in secondary level education and university level education, so that we have more experienced emerging talent that will be more mentally ready or emotionally ready for starting a business.

Katherine Ann Byam 13:14

And does this include the experiential side of it? Because as an entrepreneur myself, I feel as if the experience of doing it beats any kind of book or text or course you can do to learn about it?

Marija Dimovska 13:27

Yeah, absolutely. In terms of sharing experiences, Startup Macedonia has been quite the focal proponent of different kinds of meetups, even failure sessions, where we invite the entrepreneurs who have failed several business ideas, and they're working now on their fourth or fifth. I've mentioned AirCare earlier. Gorjan is one of the most proactive ones. But if you look at his digital portfolio, you'll see that he's not only working on AirCare.

He has other business ideas, other applications that he has developed like volontiraj.mk, mypet.mk, and akreditator-mk. Some of them are dormant due to COVID. But with AirCare, he has expanded and he has launched it in other cities. So when we share, make sure that those entrepreneurs actually share the experiences of the failure and learn-as-you-go process with aspiring entrepreneurs, it's a lot easier to convey the message that it's okay to fail, which is not just something that goes against the type of Macedonian mentality but I would say European mentality in general. I think that the American model of thinking in try-fail, try-fail is a little bit more DNA-instilled rather than what one finds in the European continent?

Katherine Ann Byam 15:05

What advice is finally, would you give to a startup getting launched today and this is independent of Macedonia?

Marija Dimovska 15:11

I would say that they need to be agile and driven by a sense of urgency to adapt to the changing needs, especially those that have been brought about by COVID. And their social capital is probably their greatest currency that they have. The more people they know, the better because you never really know which one of your connections and networks will provide you with either an answer, or they might not have the answer, but they may have a connection that gives you the solution to the challenge that you meet.

And not to give up on your idea because if you give up on your idea, it will fade away. And if it's your idea, and you're passionate about it, only you have the passion and the resilience to make that idea come to fruition.

Katherine Ann Byam 16:10

Fantastic. Thank you so much for joining us, Maria. Thank you for having me, Katherine. Thanks for listening. This podcast was brought to you today by career sketching with Katherine Ann Byam and the space where ideas launch. Career sketching is leadership development and coaching brand offering personalised career transition and transformation services. This space where ideas launch offers high performance group leadership, coaching and strategy facilitation to businesses and the food and health sectors. To find out more contact Katherine Ann Byam on LinkedIn

009 A Culture for Sustainable Change

About this Episode

discovered Tendayi Viki during a Strategyzer masterclass on building resilient companies.

We talked about:

What company cultures are more likely to ride the wave of disruption well.
We discussed sustainability, growth and transformation
What type of pirate we should be to make changes happen.

Tendayi Viki is an author and corporate innovation expert. As Associate Partner at Strategyzer, he helps companies innovate for the future while managing their core business. He has written three books; Pirates In The Navy, The Corporate Startup and The Lean Product Lifecycle. He previously served as Director of Product Lifecycle at Pearson, where he co-developed an innovation framework that won the Best Innovation Program 2015 at the Corporate Entrepreneur Awards in New York. Tendayi has been shortlisted for the Thinkers50 Innovation Award and was named on the Thinkers50 2018 Radar List for emerging management thinkers to watch. He is also a regular contributor at Forbes.

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Episode Transcript

Katherine Ann Byam

So my first question for you. 2020, has been a surprising year for us all that has created fertile ground for innovation and disruption. In your experience, what are the characteristics of companies who ride the wave of changes? Well, and those that don't?

Tendayi Viki 1:56

Yeah, so. So it's been interesting. And there's a lot of conversations going on around what changes that we've seen in companies, right, that are gonna last post-COVID-19. And sometimes I think we're actually asking the wrong question. You know, I think we're failing to make a distinction between two things. We're failing to make a distinction between changes that companies are making to their business models, because they have to because otherwise, they're going to go bust, versus the behaviour, structures, and processes they're actually using to make those changes. And so we're asking whether the changes will last.

But we're not asking whether the new behaviours will act. Yeah. And so and that really speaks to the question that you're asking here, which is, you know, what are the characteristics of companies that ride the wave of change as well. What are the kind of companies that ride the wave of change as well, the companies that have already built the innovation muscle, before the change, or the disruption actually takes place? You know, I mean, I always say this, like, you know, after you've had the heart attack it is too late to start jogging, it's better to actually start developing the muscle before you have to attack. And so what we're finding is that all those companies that had a pre-existing innovation ecosystem, we’re able to quickly leverage spin-up. Startup teams, make small bets, run experiments and tests.

We did that a strategy, though, you know, after the crisis was at testing various, in various different offerings of our programs. Because we already have this practice internally, we're able to do that quickly, versus those companies that are like, Oh, right, well, first, everybody go home. Okay, now we need Legal [teams] to look at whether your computers are compliant, then we need to say that it took them a little much longer time to start thinking about how how how, how they can survive, with the pressure that carried on being on them, a whole lot of these companies figured out something. They built new platforms, new ways of working, and built new business models. But the question is, after the crisis, will they go? Okay, that was fun. Let's get back to what we used to do before? Or will they really deliberately think about developing those innovation muscles now?

Katherine Ann Byam 4:02

Yeah, it's super interesting how companies are trying now to build a fast digital transformation platform that they can then grow on, and trying to figure out how to manage that implementation as we go. So the next question I wanted to poke into is, in your work, you talk about two main drivers of innovation, which are the external growth factor and transforming the internal systems. So how does the message of sustainability when we think about all that, that COVID has brought about and change in the world and the sort of change and consumer trends as well? How do you feel that sustainability fits into those two levers?

Tendayi Viki 4:44

Yeah, so it's interesting, right? I mean, in my work, I wouldn't describe them as to lever this such. I would describe them as two goals, right. So if you're an innovation team, or you're thinking about developing an innovation programme, you have two things that you really need to be thinking about right, which is, to what extent is this programme we're launching going to change our company and make our company be able to do innovation on a repeatable basis.

And so that's what we call the transformation part. Right? So are you building systems? Are you building practices? Are you building toolboxes that people can use on an ongoing basis? Or are you doing innovation, there's just a whole bunch of one-off projects, each one having to negotiate with a company, a new innovation that never happened before. So that's one piece. And then the other piece, which you refer to as growth is, you know, beyond just changing the company, we change the company, so the company can create things of value, right. And so the real way, maybe to actually, I wouldn't call it a third dimension, I will call it relabeling that dimension, right, moving away from calling in growth, because then makes it a single metric sort of focus, but really think about value creation.

And when you start thinking about value creation, then you can think about - Okay, well, are we creating sustainable value? Right? Are we having enough impact? Are we developing business models that are more suitable to the world in the way that is changing? And so, you know, creating that sustainable value becomes, you know, the other dimension. So what we don't want is innovation theatre, right, which is innovation programs that are aimed at either changing the company or creating value, because then it's just wasted, just like, yeah, we had a hackathon. Yeah. You have to really be thinking about exactly what is the point of all the work that you're doing?

Katherine Ann Byam 6:28

That's really interesting, as well, because I feel as if there is an appetite for pooling lots of ideas. So gathering ideas from customers, gathering ideas from employees, and there's a lot of excitement and buzz around that. Is that innovation theatre?

Tendayi Viki 6:45

It's not innovation theatre, right. So gathering ideas from, from customers, gathering ideas from employees, and voting up, the best ideas to work on is not innovation theatre in and of itself. It becomes innovation theatre, when you do nothing else, but that. Right? Right. So if you gather the ideas, the question is, then what do you do with them?

Are you able to use some of those ideas to create something of value if you are, then that's not innovation theatre, the idea competition is a stepping stone towards something valuable, or the hackathon is a stepping stone to something valuable. The idea session, when you're doing sticky notes, is a stepping stone towards something valuable. But what happens in most of these situations is like, Whoa, we had a competition. And here's the winner, let's all go home, not next year, whatever, another one. If you start doing it like that, it is definitely innovation theatre, it's the best theatre out there.

Katherine Ann Byam 7:37

That is quite. The other thing I'd like to touch on on this point is that I also work with a number of female entrepreneurs who are in the sustainability space. So a lot of them create businesses of handmade products or recycled materials and stuff like this. But what's interesting about working with entrepreneurs, as opposed to working with big corporations is that the bottom line is important. Right? It's important for them to be profitable. But it's also important for them to live their purpose and to live their value. So I wonder if this is something that companies also need to be considering how they bring purpose into that mix?

Tendayi Viki 8:11

Yes, absolutely. I actually think companies need to really be thinking about how they bring purpose because again, beyond just love creating bottom-line growth, people also want to feel like they're making a positive contribution to the world, it kind of gets them up in the morning, and they feel positive about going to work. You know, companies like Unilever, underperform, and are really putting the stake in the ground, like defining themselves as that way become companies that are people who are happy to work for those organisations.

Right. Just a word to the wise for your social entrepreneurship friends, right. I gave a keynote the other day, we're talking about the starving artist, which is people that are so focused on the cause that they forget that they also need to be profitable. And so it's a balance between those two things right, you have to make sure that you've covered both parts of the combination.

Katherine Ann Byam 8:57

Well said. I couldn't say it better. So my last question to you is going to be about pirates. I love to hear you talk about pirates. So what I'd like you to do is explain to my listeners who are part of a bigger organisation particularly what type of pirates they should be.

Tendayi Viki 9:17

Alright, Jeff, so Alex Osterwalder, I, you know, I work with them at Strategyzer, but when I'm Associate partner and Alex hates the word pirate to describe innovators, and he says like, you don't want to be a pirate, pirates used to get killed. Right? And so, you know, I'm working on a book of pirates in the Navy and my boss hates the word pirate. But actually, when we were doing the work on the book, we discovered that not all pirates are the same right you don't get like people who just tend to use the words interchangeably pirate, buccaneer, etc. But we discovered that there's a class of pirates called privateers that are very distinct from just the typical pirate because the typical pirate is just a criminal. They're unaffiliated to anything.

They don't have any connection. Anything, they just out there roaming the high seas, doing whatever they want. And of course, that's life, if that's what you want to do. But if you want to do innovation in such large companies, you need to think of yourself more as a privateer, who is also a pirate. But they're a pirate that's actually been commissioned by someone to go out into the world and do work. For example, the British government used to commission people like Francis Drake, to go out and raise Spanish ships.

And then and then bring that back to back to the UK. So what we're saying is simply this, if you're a corporate innovator, it is important that you build a bridge between the innovation work you're doing and the core business with which you work, because there's no chance that any innovation that a corporate innovator works on is going to succeed without support from the leadership inside that organisation.

Katherine Ann Byam 10:43

That's absolutely true. So thank you very much for sharing your thoughts with us. Any closing words for either the entrepreneurs, who are out there making a big splash in the sustainability space? Or the corporates that want to do more? Any closing words?

Tendayi Viki 10:59

Yeah, I mean, not a lot, really, I mean, the thing I've been most interested in, in all my work, is authenticity, right? So we just want to make sure that we're doing stuff that creates value rather than stuff that, you know, it's just fake and, and kind of just, you know, like people are just performing innovation theatre, rather than actually doing things that create value. So you cannot, if you're a social entrepreneur, create value. If the business you work on is not sustainably profitable, it will die.

And then the value we're trying to create dies with it. So you have to focus on both those things. You cannot create value if all you do is events, and speakers, and all these things. If you're a corporate innovator, you also have to be thinking about right, making sure that you're also generating revenue or impact or you know, value. So that's really what we care about. And then the question just becomes, okay, if we're going to be authentic, what are the real true things that we can do in order to do valuable work, and that's really where the conversation needs to move to.

Katherine Ann Byam 11:58

I love it. Let's take the conversation there. Thank you for joining us on Where Ideas Launch - The Podcast.

Tendayi Viki

Thank you.

Thanks for listening. This podcast is brought to you today by the Dieple Virtual Service Hub. The Dieple Service Hub is a digital transformation strategy service that supports startups needing to optimise their processes and their performance to scale up growth. We also help medium-sized firms and modernising their operations and our services include sustainable strategy, analytics and tech enablement. To find out more contact Katherine Ann Byam on LinkedIn

002 How to build a resilient business

About this Episode

Where Ideas Launch was curious to learn what inspires the world's #4 Management Thinker.

We asked Alex these 3 questions:

What’s your why – what question gets you out of bed every morning with a burning desire to solve it?
We know in our world today we have a burning platform of sustainability. What do you currently see as the role of business in solving these problems?
We know from your work that Innovation is heavily influenced by a company’s culture. What are the top 3 things that companies with a great innovation culture do to sustain that culture and expand their economic lives?

Dr. Alexander (Alex) Osterwalder is one of the world’s most influential innovation experts, a leading author, entrepreneur and in-demand speaker whose work has changed the way established companies do business and how new ventures get started.

Ranked No. 4 of the top 50 management thinkers worldwide, Osterwalder is known for simplifying the strategy development process and turning complex concepts into digestible visual models.

He invented the Business Model Canvas, Value Proposition Canvas, and Business Portfolio Map – practical tools that are trusted by millions of business practitioners from leading global companies.

Strategyzer, Osterwalder’s company, provides online courses, applications, and technology-enabled services to help organizations effectively and systematically manage strategy, growth and transformation.

His books include the international bestseller Business Model Generation , Value Proposition Design: How to Create Products and Services Customers Want, Testing Business Ideas and The Invincible Company published in Spring 2020. To learn more about Alex's work you can subscribe to the Strategyzer news letter by clicking here

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Episode Transcript

Innovation expert, Dr. Alex Osterwalder has created and tested tools for simplifying strategy development processes for businesses and emerging business ventures. He works by turning complex concepts into digestible visual models. Examples include Business Model Canvas and Value Proposition Canvas.

He believes that for a company to be truly sustainable, it must be able to solve a problem and create value for society, its stakeholders, and more importantly and ensuring that its employees have an optimal work condition, enjoy their work, and go home happy. There is a need for companies to transform themselves into sustainable models that are crisis-resilient and that is where their work comes in to help companies reinvent themselves through the innovation they incubate and launch at Stragegyzer.

Key points:

Technological Innovation can help businesses to be more sustainable
Business organizations must have a profound “why” that brings value and creates an impact on society
If a company is sustainable and crisis-resilient, it is able to serve its purpose and create value to its most important stakeholder, its employees

Katherine Ann Byam 0:02

Where Ideas Launch - The Podcast for the Unexpected Innovator.

We are all incredibly creative, but maybe we’ve forgotten how. I spent my career working with people from more than 150 countries traveling the world and experiencing cultures, and what have I found? Creativity is everywhere. We've got a gargantuan challenge facing us, as we need to redesign a more sustainable planet. This podcast explores modern-day innovation in the age of sustainability. I interviewed some of the most prolific thinkers, creators, and educators on their journey to create sustainable incomes and businesses. My guest tonight will teach you how to be creative, create business models and explore curiosity with the courage to level up in your career. Join me every Wednesday for a new edition of “Where Ideas Launch - The Podcast.” Welcome to our episode.

Dr. Alexander Osterwalder is one of the world's most influential innovation experts, a leading author, entrepreneur, and in-demand speaker whose work has changed the way established companies do business and how new ventures get started. Alex is known for simplifying the strategy development process and turning complex concepts into digestible visual models. He invented the Business Model Canvas, Value Proposition Canvas, and The Business Portfolio Map - practical tools that are trusted by millions of business practitioners from leading global companies. Strategyzer, an Osterwalder company provides online courses, applications, and technology-enabled services to help organizations effectively and systematically manage strategy, growth, and transformation. His books include the international bestseller “Business Model Generation,” “Value Proposition Design: How to Create Products and Services Customers Want,” “Testing Business Ideas,” and “The Invincible Company” that was published in Spring 2020. So I'm excited to welcome Alexander Osterwalder to “Where Ideas Launch - The Podcast.”

So, Alex, you were ranked Joint No.4 thinker in the world. Your books are staples in universities and companies across the planet. And you are creating methods that change the trajectory and outcomes of many businesses. I believe that business leaders, especially the influential ones, have a burning unanswered question that propels them forward. Alex, I'd love to know, what's your “why.” What questions get you out of bed every morning with a burning desire to solve them?

Alexander Osterwalder 2:47

Good question. What gets me out of bed every morning. I just love what I'm doing. You know, making business tools to help people do a better job is something I really enjoy. You know, when we see people and companies who can innovate can't innovate. We ask ourselves. So what's still missing? What's wrong? We don't blame the companies. We don't blame the people. We ask ourselves. And when I say we, it's with my co-author, Yves Pigneur. We ask - what are the tools and processes that are still missing? - or unclear? You know, where could we contribute to help them do a better job, to create change, or to create impact. And then the fun part is once we kind of figure out the challenge, we try to work on it, we play around with different concepts. And then we prototype tools that we test with real business people out there and try to make them better and better. And we're very visual in the work we do. So then we write books around the tools around the topics, and it's just a fun process. And then, of course, it's very gratifying when you see people using the tools, reading the books, and actually making a difference. So that's what gets me up every morning.

Katherine Ann Byam 4:07

That's fantastic, Alex, we know in our world today, we have a burning platform of sustainability. And I don't just mean the climate. There are many levers of sustainable development, which include education, health care, water, and food for all, as well as general well-being the climate crisis. In your work, what do you currently see as the role of business in solving these problems?

Alexander Osterwalder 4:35

Interesting question. How do I currently see the role of business in solving these problems? I really think business can make a difference, you know, great companies, they create value in four ways. So number one, they create value for customers. And we shouldn't underestimate that. You know companies create new products, new services, that create value that advances the world. Then, they create value for their organization, for the owners, for the shareholders, and that is very good as value creation. But of course, that's not enough, right? That keeps companies alive. We also, you know, love companies that create value for employees, a really important stakeholder. And don't underestimate the impact, you know, you can have as a leader, or as an owner or CEO of an organization. When you have 10 people, 100 people, 1000 people, 10,000 or 100,000 people, and you create better working conditions. You create a space where people can enjoy their work every day and do their best work. You'll actually create a better world that will have a big impact. You know, happy employees will go home and be happy, and, you know, citizens in their families and happy in society. So that's very important. But then there's the third, the fourth one. And I think that area is extremely important, which is, you know, making a difference in society, having an impact in society. And you know, take the founder of Patagonia, Yvon Chouinard, you know, he didn't settle for just building a company, the vision was to really, you know, have an impact on sustainability. So today, the mission of Patagonia is “we're in business to save our home planet.” So there, you know, they definitely, definitely make a difference, or Paul Polman, who was CEO of Unilever, you know, who reoriented the company, to focus not just on profits, but really on sustainability, and not at the expense of profits, but in harmony with profits. So I think that is very important and impressive. And I think you know, more and more, not just a nice to have, it's something that companies need to do, just to retain their employees and to attract new talent. Because today, you know, a lot of young people are, you know, great talents, they want to work for a company that they can stand behind, it's really making a difference. So creating value for society is something that's incredibly important for organizations. So those are four layers where no company can really make a difference.

Katherine Ann Byam 7:28

Alex, it's so exciting to hear senior leaders in strategy, recognizing that a happy employee is a happy business. You know,

Alexander Osterwalder 7:36

We spend a lot of time at work as employees. So those hours there are important in our life. So businesses who create a great work environment will really make a difference. And you know, take founders, like Marc Benioff, founder of Salesforce, he wrote a book on, you know, the power of business as the greatest platform for change, he wrote a book called Trailblazer. And he really makes a case for businesses as a change agent. And I really do believe that you know, when, when we work on innovation and help large companies reinvent themselves, we also have to ask ourselves and strategise? Why are we doing that? What's, what's our “why” and the reason is not just to help them make more money or for us to have great assignments that are interesting and pay well, no, it's also and I think that's the main motivation for myself, it's to help more to create more resilient companies that you know, can survive a crisis. And that means, you know, having more stable workplaces, because when a large company has to layoff 10,000 20,000, or 50,000, people, as has been the case, you know, in some companies with COVID-19, that is very, very painful for the employees, and it's very costly for regions and governments. So innovation is something that can really make a difference, not just financially, it's really something that can create enormous value for society. So that's what gets me excited about innovation, you know, creating value for customers, creating value for businesses, and of course, creating value, you know, for employees to create more stable workplaces and ultimately, some of the great innovations they create value for the society for the environment. So if you take Tesla, its the whole idea of not just building it, you know, electric vehicles, but building a company that is transcending industry boundaries, and, you know, focusing on solar energy in general with rooftop tiles with batteries, in order to fuel the electric vehicles. That's a great, great case of an organization that is making a difference. And there are more and more of those. And that's what's really exciting these days is that you have leaders and businesses that really understand that they can make a difference in the world. And they can be agents of positive change. And that's exciting.

Katherine Ann Byam 10:22

Alex, thank you so much for that. You shared with us four great ways of creating and sustaining value in organisations, which is “focus on the customer”, “focus on shareholders”, “focus on employees”, “focus on society”. And this is the ingredient, the key ingredient to having a resilient company. Now, I know from your work that innovation is heavily influenced by a company's culture. I attended your Strategyzer masterclass in May.

What do you think are the top three things that companies with a great innovation culture do to sustain that culture and expand their economic lives? I'm very interested in how you have brought this into your work.

Alexander Osterwalder 11:03

Great question, how about the top three things you do to help companies sustain an innovation culture, we created something that we called the innovation culture scorecard, innovation, readiness. And there, we focus on three areas. And they sound kind of trivial when you mentioned them like that, but I'll give you some examples. So the first area is leadership support, you know, around portfolio allocation, the time that leaders spend on innovation, etc, etc.

Alexander Osterwalder 11:41

That's where leaders can make a difference, they need to invest in a portfolio of innovation initiatives. And not just one because in innovation, you can't pick the winner. Turns out actually that you'd have to invest in 250 projects in order to create one outlier. So when you're an established company, you need to invest in at least 250 projects to create a big success that can go into the hundreds of millions of dollars. Now, if you're a smaller organisation, that might be three projects to invest in to get one winner. But the ratio is that you can't pick the winner. And in the venture capital world, in the startup world, we know that for ages, because there is no venture capital investor that believes they can pick the winner, they've done this for a long time, and they still can't, so they invest in a portfolio, where one company they invest in, will create the return for the entire portfolio. So we need the same kind of logic in established organisation. So besides the execution business, the execution portfolio, managing the businesses that you have, you need to create a portfolio of innovation projects. So that's, you know, one of the themes in the first area leadership support, and investing in a portfolio and resource allocation. The second area is organisational design. So no company today doesn't have innovation activities. But mostly, it's innovation theatre. That's what Steve Blank, you know, the inventor of the Lean Startup movement, Rita McGrath, from Columbia Business School, myself, we call innovation theatre, it's for the show, there are activities there, but they're not real. So what you really want is to give innovation power, and that's a relatively easy thing to do. You know, so either it's the CEO who spends time on innovation, my favourite example is Bracken Darrell, who spends 40 to 60% of his time on innovation, or you need to have a co-CEO, who fully, you know, focuses on innovation. So a great example there is that Chinese company, ping on in finance and insurance, they transformed themselves to, you know, a company that transcended industry boundaries and became a tech player, when Peter Ma, the founder, said, we're gonna get disrupted, we need to invest in innovation. And he established a co-CEO with Jessica Tan, who focused entirely on innovation. So it wasn't somebody reporting to the CEO, you know, because then you kind of subordinate the innovation activities to the execution activities. No, it was at the same level of power. So it's very, very important that you give innovation power, either by having the CEO focus on innovation that symbolically signals that innovation is important. People will realise that it's not a career suicide to go into innovation, or the alternative is that you install innovation at the same level as the CEO. So both of these options give innovation power and signal to the company that it's very important. And then the third area of innovation culture is actually the easiest one. It's an innovation practice. So you need to establish the right tools and processes in your organisation, but also establish the right skills and experience. Because just like, you know, becoming a world-class manager, that you don't do that overnight. So becoming a world-class innovator, you know, you have to gain experience. I like to compare this to the medical profession, you know, a doctor, let's say, say, a heart surgeon, has to go through medical school, learn, you know, physiology, anatomy, for a very long time, and then become an intern, until you become a heart surgeon takes a lot of time, a lot of practice, the same in business, you have to learn the anatomy and physiology of business, to learn how it works. But you also have to practice because you can't learn business, from reading books, entrepreneurship, from reading books, innovation from reading books, just like you can't become a doctor or surgeon, just by reading books. So there are very strong similarities. So the right talent and experience in innovation is crucial, because it's a completely different profession than management. So those are the three areas you need to invest in leadership support, organisational design and innovation practice. And that's how you will help innovation become sustainable. In your organisation. It's fun, you know, to see with the Strategyzer, how we're getting into companies, and we do these assessments to see how companies are innovating or not, you know, they're performing innovation theatre. And then once you visualise that, the leaders really realise that they need to change, and they need to, you know, perform their innovation activities in a completely different way. So innovation, I think today's growing up is maturing, and companies are really realising that what was good 5-10 years ago is not good enough anymore.

Katherine Ann Byam 17:17

Alex, thank you so much for joining us on Where Ideas Launch - The Podcast. This session was so informative, so indicative of what makes a company strong and resilient. Thank you for all the work that you do. And we look forward to you joining us again in the future. Thank you, Alex, and thank you to our listeners.

Thanks for listening. This podcast is brought to you today by the Dieple Virtual Service Hub. The Dieple Service Hub is a digital transformation strategy service that supports startups needing to optimise their processes and their performance to scale up growth. We also help medium-sized firms and modernising their operations and our services include sustainable strategy, analytics, and tech enablement. To find out more contact Katherine Ann Byam on LinkedIn

001 Sustainable Business Trends in Luxury Brands

About this Episode

Where Ideas Launch - The Podcast for the Sustainable Innovator had the pleasure of interviewing Isabelle Chaboud on her insights on how luxury brands are becoming more sustainable.

Isabelle is an inspiration to her students past and present, as she does finance with style and flair. Her articles have been viewed more than 350000 times, a testament to the value she brings.

This podcast explores:

The financial impact of the pandemic on luxury brands bottom line.
The trends in sustainable change and whats driving it.
The upskilling needed by people adversely impacted by the pandemic.

Isabelle Chaboud is an Associate Professor in the Finance Law and Accounting department of Grenoble Ecole de Management. Since December 2018, she has been Programme Director for the MSc in Fashion Design & Luxury Management and since September 2019, responsible for the MBA Brand & Luxury Management specialisation.

Her main areas of teaching are financial analysis (especially in the luxury sector), auditing and international accounting.She teaches or taught in Grenoble, London, Paris, Berlin, Marrakech, Moscow, Tbilisi (Georgia) and Singapore.

Before joining Grenoble Ecole de Management in 2001, Isabelle worked for 7.5 years for PriceWaterhouseCoopers in Lyon, France where she was a financial audit manager. She had clients in various industries as well as in services. She was part of the European Internal Audit team of PwC and worked in Spain (Madrid) and Portugal (Lisbon).

Isabelle is a French native but lived for more than three years in the United Kingdom, two years in Germany, one year in the United States, one year in Spain.

She graduated from Grenoble Ecole de Management in 1992 and from the International Teachers Program (ITP) delivered by HEC Executive Education, Paris in June 2014. She regularly publishes intellectual contributions in different media. to read her article on this topic, click here.

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Episode Transcript

Katherine Ann Byam 0:15

I'm really excited to talk with Isabelle today because she was also my professor when I studied for my MBA, in 2016, and she was one of the most transformational leaders I've met in my career. So, thank you for joining us and welcome Isabelle.

Isabelle Chaboud 1:57

Thank you so much, Katherine. It's really nice to hear. It's my pleasure to see you. This time outside class.

Katherine Ann Byam 2:05

It's really wonderful to have you. So we're gonna get started by asking you a few questions about your mission so I like to talk to my clients to tell them that we need a mission statement we need something to drives us beyond the job. Tell us about your mission statement.

Isabelle Chaboud 2:25

Okay, so my mission statement will probably be three keywords, people and sharing, learning, and passion. People have always been for me, probably the most important thing - meeting people, discussing with them, and sharing my own knowledge, not only in my country but internationally, we benefit all the different cultures, and that's something I always look for. I never stop learning I think since I was little, I always try to read, learn new things, and that was something that really matters a lot to me. It's probably why I studied Audit.

I work for eight years at PwC. Every week we had to audit a new client, a new business model, new industries, from chocolate to pharmaceutical to perfume, fashion, carmakers, always different, traveling as well. I think when you're passionate about something, you will always find time even if a day only has 24 hours, you can read more, you are more curious, you necessarily learn more. For me, those are the three most important things from audit to fashion to higher education, those have always been my motto.

Katherine Ann Byam 4:07

It's so wonderful and refreshing to hear and because I used to be an auditor too and we all know people don't like auditors. So it's interesting for you to share how, how you actually used your experience from audit to develop the career design the career that you have now.

Isabelle Chaboud 4:23

It's true, yeah, people don't like auditors. Manufacturers don't like to be controlled by auditors. They are afraid that you will tell them, "Uh-on that is not correct," "or it's your fault." But if you implement a good relationship with them, you try to explain what you are doing and that you want to bring added value, maybe to improve some internal controls in place, maybe to improve some efficiency, some aspects, it becomes different, so when you work on the confidence in the relationship, I think it's, it's different.

It's all a matter of personal contacts you have with people. I learned a lot from a methodological point of view, being very structured, organized, dealing with different tasks, it's management project. So that helped me a lot when I moved to higher education because it's managing different courses at the same time different locations. I was teaching in Grenoble, Berlin, London, Singapore, Moscow. Also sometimes may be different subjects with different audiences. So the methodology is the key in sharing the knowledge.

When I was at PwC, I did some training. When we merged with Coopers in 1999, we became PricewaterhouseCoopers. Someone had to teach the new methodology and I volunteered in France in my office. They were looking for volunteers and I volunteered. I like it and it was really interesting to try to explain this new methodology to managers, partners, and I also train newcomers. So, methodology, training, sharing some knowledge were really the common basis that I used in higher education, financial analysis, and they switch to financial analysis of luxury companies. This is how little by little, I came to fashion.

Isabelle Chaboud 6:30

You moved from being an auditor, being a professor to being a specialist in luxury brand management. That's really interesting. What's inspired your interest in luxury brand management.

Isabelle Chaboud 6:42

I think it started when I was little, my mother was making bespoke wedding dresses bridal gowns and I used to see her in her atelier or sewing workshop. Sketching, drawing, meeting clients who were explaining what they were looking for and she was trying to draw the perfect wedding dress for them.

Then, she took me to suppliers to buy this silk with her so I went to the region with her. With such wonderful fabrics and then I could see her teaching sewing. There was always something in my mind that I kept for a long time and I always sort of gave birth, I do something related to numbers very structured and then I can use this to be on a more creative side and more creative industry, and I was interested in this craftsmanship aspect, in fact really understanding what's behind the numbers of these companies and how they are functioning.

Katherine Ann Byam 7:58

I think that there's always, there's always a bit of your history and your past and your experiences that come to bear you as you grow and develop in your career so it's nice to see how you've connected that experience with your mom to what you're doing today, and I think she must be really proud. All right, so I want to pivot slightly and I want to get into the business of luxury brand management. And I think all my listeners are curious to know-how is the industry doing.

Isabelle Chaboud 8:27

But the industry has been severely hit as most industries. BCG was expecting some 30% drops, before the beginning of the COVID. And it is confirmed, even more, if I give you a few numbers, talking about the key players who are LVMH, Hermes, Kering, and company Swiss Richemont. I can just give you some insights. For example, LVMH witness a drop of 38% in Q2 2020, which makes the drop of first-half revenue of 2020, by 28% organic, a constant exchange rate. So minus 28% is around 30%.

For Kering, it's minus 30%, first half of 2020, and minus 43.7%, for Q2, which is a huge drop. Hermes also witnessed dropped by 40% for Q2 but cumulated is minus 25% at a constant exchange rate. So, Hermes is the most resilient, out of all the key players. Richemont, the Swiss company which owns Cartier, Van Cleef, and Jaeger-LeCoultre witnessed a 47% drop in their first quarter 2020 sales. Richemont closed their books at the end of March so their first quarter from April to June 2020.

Isabelle Chaboud 10:18

So Richemont has been severely hit and so they have to find new solutions to cope with the situation. And this gave a boost to digitalization so those who already had online sales, saw quite a lot, mostly in China. They witnessed a huge increase. Hermes, for example with 100% increase in their online sales in China. Chinese consumers or the tech-savvy buy a lot online.

Those who do not have online platforms had to partner with the marketplaces like for example Farfetch to help them, or they had to develop their own platform online at a rapid pace. In order to cope with the loss of business from closed stores.

Katherine Ann Byam 11:21

I'm also curious to know how they're going to pivot out. Sustainability is beginning to reshape many industries, and I'm sure not the least of which is the luxury brand industry. Tell us about what, how they're dealing with sustainability.

Isabelle Chaboud 11:35

Yeah, you're absolutely right. It's, it's one of the top priorities. I think now for most players. It comes from the consumer demands actually. Consumers want to know where they purchase the raw materials and in what conditions, how is the production process,, how do they deal with people have when they treat them, gender equality, hygiene and safety, and all those aspects, also the dyeing chemical for example they use and all those elements, so it's affecting the whole supply chain, and up to the end, the way they sell it.

This is why also the circular economy is booming. The demand for second-hand is, is absolutely on the rise. Companies like Vestiaire Collective or Rent the Runway are all seeing a huge increase in their selves because more and more people are mostly millennials are interested in buying secondhand products. So, if you haven't used items or garments that you can resell, you can make money and you can buy also other products, and it can also allow, I would say, other customers who would not be able to afford some luxury product to buy for the first time and some luxury products. I think it's affecting the whole supply chain, from raw materials production, and then selling channel, also omnichannel, and different, different ways of selling not just in stores but also and the new business model of the circular economy.

Katherine Ann Byam 13:26

Beyond fashion, it's also having an impact right. there are other initiatives that people are coming up with within the luxury space as well beyond fashion.

Isabelle Chaboud 13:35

Absolutely. To give you an example, a Startup Ledisi is partnering with different companies to rent between so either business to business or business to consumer. For example, they had a partnership with LC and you can rent a suitcase for just a weekend or for two weeks and I think it's a fantastic idea, imagine you are a student, you live in Paris in a very small place you don't have enough room to store a big suitcase and you want to go to the US and so you can rent a suitcase just for two weeks (of course not right now probably with travel.)

It's a little bit difficult but I think there's a real, real business. People also lots of surveys report show people are more interested in the experience now, more than owning the product. So, this will also allow you to have an experience. I think it's also part of this circular economy and reducing the waste the pollution and giving a longer lifespan also to objects or different items.

Katherine Ann Byam 14:59

Yeah, it's so interesting, thank you for sharing that. So, this is the last question so I really want to thank you upfront for all that you've given my listeners today. I think the session has been really interesting. But what advice would you give to the ones who are either out of work because of the crisis, or just coming on to the job market, what would you tell them what do you suggest.

Isabelle Chaboud 15:20

Well, first digitalisation as we said, we spoke about luxury that is going online and maybe a little longer than the businesses but all businesses are online now you can buy cars online. I mean who could have imagined buying a car online before. so I think having some knowledge in digital marketing and the different platforms where you can buy in some marketplaces in luxury.

We have work marketplaces for those who are beginners, which means it's a tripartite relationship between the company producing the goods between the marketplace where you can buy the goods as a final customer. So if the company producing the goods, doesn't have its own platform, they can use a third party, the marketplace to sell their products. This is the case for Farfetch for example.

And Farfetch is also experiencing a huge, huge increase. You may have heard Amazon is going to launch luxury items. They just announced the first partnership with Oscar dela Renta and this group. And so this is booming in all industries, fashion, luxury carmakers, now you can buy everything online, so I think it's really important to know this. You can find training also for free online.

There are lots of possibilities now, then sustainability, we mentioned that I'm convinced absolutely key there is I think a shift in the mindset of consumers, but also the need for force for the planet and people profit, the planet which we call the triple bottom line is absolutely fundamental so it covers all aspects as I said from the supply chain, the production, and the final distribution, and it impacts the finance as well.

Of course, sustainability really gaining knowledge on that, and circular economy the new business models, don't be afraid of being creative and innovate. I think that's right now really thinking outside the box I think is really, really something important. Being adaptive is very, very important, and having confidence because things are changing, it's difficult, but we need to keep the confidence and try to really believe in these new business models that are coming out and changing faster.

Katherine Ann Byam 17:53

Thank you so much Isabelle Chabaud. Thank you so much to my listeners, this has been a fantastic day and I hope you've got a lot out of the session.