Want to Make a Quick Buck? Don’t Innovate

If we look at the business landscape in Mexico, it seems that most entrepreneurs don’t want to innovate. What they want is to make a quick buck, survive, or succeed at all costs. Before the COVID-19 pandemic, most entrepreneurs imitated business models with proven track records in other parts of the world. Rarely did we see initiatives that promised something new and authentic. This won’t change anytime soon. However, if we consider the consequences of the pandemic and other geopolitical, economical, and societal events in Asia, Europe, and other parts of the world, we must realize that new opportunities are arising for Mexican businesses and entrepreneurs. Hence, it’s time to reevaluate our business priorities and the role we want to play in creating the world we want to live in.

If Return on Investment (ROI) is the most important thing, imitation is much better than innovation.

Let's be honest. There are many alternatives to make money that are much easier and less risky for investors: Build more subdivis}ions, apartment towers, shopping malls, etc;  things from China and auction them off here with good margins; mport cool brands from Asia, Europe, or the US and distribute them here;  more restaurants that sell the same food;or pProduce TV shows that work in other parts of the world and sell more advertising. These types of decisions have generated a lot of money and seem certain to continue to be more fruitful in the future.

Innovation is dangerous.

If you innovate, you’re breaking away from common logic. Moving from creativity to innovation is the challenge. Creativity is the most abundant ingredient for innovation but it lacks the empathic reflection to make it meaningful and useful. Also, creativity is useless if it lacks the glue that makes it all stick together: discipline and consistency. This type of commitment to innovation goes against our human instinct and our country’s traditional business logic. Is that why there are so few Mexican entrepreneurs who dare to bring something new and authentic to the world?

Innovation isn’t for everyone.

If we consider the types of innovation that promise to add something new, something non-existent, a new contribution to the world, and exclude initiatives that are associated with imitation, the pure digitalization of existing processes, or the transfer of technology from abroad to our context, besides the following “usual suspects” it’s difficult to name the Mexican organizations that stand out nationally and internationally for their innovative contributions.

We can’t believe that almost 20 years have passed since Cemex inspired the business world when innovation gurus C.K. Prahalad and Gary Hamel recognized their initiatives. But sure, there are also companies like Cinépolis, which constantly introduces new innovations to make the moviegoing experience more enjoyable; Experiencias Xcaret Parques; Kidzania, the company that created an "edutainment" model based on fun and play; and, most recently, Tec de Monterrey, which is challenging traditional education models with its Tec21 model. Although we’re sure there are many more cases of companies that are not so well known, it’s difficult to be inspired by them because they don’t form part of the narrative of success in our country.

The few who dare to innovate are doing more than big business.

More than a quick buck, these organizations are changing Mexico’s image in the world. They’re stunning the world with their ability to reimagine something that no one else dared to imagine. They’re inspiring the world with their ability to empathize with market segments that others ignore. They’re gaining the admiration of like-minded organizations in other parts of the world for their daring to break paradigms that only a few years ago appeared to be written in stone. Therefore, their Made in Mexico innovations add universal value or solve problems, much better than any innovation conceived in another socio-cultural or economic context.

The few who dare, believe in Mexican ingenuity.

In addition, these organizations value something that international technology companies, such as IBM, HP, Continental, Bosch, Intel, Oracle, and Tata, began to value almost 30 years ago: the talent and ingenuity of Mexican people to design hardware, software, and processes. 

It isn’t for nothing that companies like Intel, Continental, IBM, and dozens of Silicon Valley-based startups like Brightcove (formerly Ooyala), Wizeline, Skycatch, Carbon Robotics, and Aescape began to capitalize on the inventions created by Mexicans at design centers in our country. And, most recently, Mexican startup entrepreneurs achieved unicorn status by founding Kavak, Bitso, and Clip, among others.

Innovation may not make you rich quickly…

Yet innovation is invaluable to society. It’s our generation of entrepreneurs that can build the pillars for a more equitable, prosperous, and happy society. Let’s stop taking our competitors as a point of reference because they will only inspire us to neutralize their competitive advantages or take market share away from them. Let’s look at the bigger picture. Let’s redefine the traditional rules of doing business, create meaningful value propositions for the world we live in, and redefine the meaning of three simple words: “Made in Mexico.” Beyond making a quick buck, let's dare to challenge common sense for the sake of the common good.

About the authors

René Freudenberg is CEO and Daniel Pandza is Director of Communications and Branding at Interlub Group | The Uncommon Lubricant Company®. Their organization has been awarded in three occasions by the President of Mexico for their contributions to the export of Mexican technology to 37 countries (Premio Nacional de Exportación, 2017), for their innovative and competitive business model (Premio Nacional de Calidad, 2018), and the National Technology and Innovation Award (2019).

Contact details:

Rene Freudenberg, ceo@interlub.com, @interclub group
Daniel Pandza, daniel@interlub.com, @paradygnamics
www.linkedin.com/company/interlubgroup