Enabling Innovation, Digital Technologies for all Businesses

Q: As Minister of Innovation, Science and Technology, what role do you play in the development of the state of Jalisco?

A: The Ministry of Innovation, Science and Technology of the state of Jalisco is the Ministry of Higher Education, meaning that we participate in the governance of higher education, which has a strong and interesting ecosystem in Jalisco given the important public and private universities that are in the state. It is also in charge of encouraging the development of innovation, science and technology. To this end, the ministry is betting on the implementation of the triple helix model that joins the government, academia and research centers and the private sector to achieve comprehensive development. Although some people talk about a quadruple or quintuple helix, we prefer to work around the triple helix model but taking into consideration the impact that our developments have in society and on the environment.

Part of the ministry’s role is to support and help cutting-edge industries to continue being competitive. When we talk about cutting-edge industries, we mean the development of digital technologies that have resulted in Jalisco being dubbed the Mexican Silicon Valley. The state has strong players that participate in the electronic and software development industries. However, these are not the only industries we are interested in. The agro-alimentary sector is strong and one of the most important in the country, so we also work on developing solutions that will help the sector’s competitiveness through innovative business models, new technologies for production or even innovative solutions to reach their target market. Another area in which we participate is in the development of the biomedical industry, in which Jalisco is fairly competitive. In addition to these sectors, Jalisco has great interest in the creative industries, which entails animation, digital art, videogames, cinematography, or the production of content for digital media, which is a growing industry not only in the country but in the world.

For all these industries, the ministry’s role is to define and implement strategic actions to develop the needed human capital, to strengthen entrepreneurial ecosystems and technology transfer, or to strengthen their clusters.

Q: How is the ministry working to digitalize SMEs?

A: Jalisco has strong presence of companies that focus on business digital transformation, like Oracle, Amdocs, Persistent Systems and some national companies like Qualtop, iTexico, or Wizeline. We also have a strong innovation ecosystem that has led to the creation of startups that offer digital solutions such as Kueski, yotepresto, or 100 Ladrillos, that are part of the fintech wave. They have grown in this environment of digital transformation and are transforming banking and financial services.

However, the largest challenge we are encountering relates to the digital transformation of traditional businesses. Businesses in the industrial arena or the commercial sector are facing significant challenges and could disappear if they do not transform and implement digital technologies. Digitalization has become the language that companies must speak to compete in the future.

To help in this transformation, we have created a series of programs separated by sectors but the basic model to help SMEs transform their business is the same. We have found that we need to first analyze the value model of the company, its processes, provide the guidance to transform their processes and then enter the digital transformation. It is important to help SMEs have a clear picture of their business model by defining their target market, the segment they want to attend, their products that have added value, and how to establish formal processes inside their companies. We have done this with companies in the fashion segment, shoes segment, manufacturing, food and recently with agricultural companies.

To implement these processes in even more companies the state is working to create the Red de Centros de Innovación (Network of Innovation Centers) and the Plataforma Abierta de Innovación (Open Innovation Platform). The network will include centers with physical installations in 10 cities of the state. These will provide training, mentorship and special equipment that reflects the calling of the region so local businesses can improve their products. However, through the Plataforma Abierta de Innovación we will be able to reach even more businesses in remote locations. We will help not only in their business transformation but we will also help them connect with all the participants in the system. This will be a digital system where all actors will be involved and interacting to generate new businesses.

Q: How is the state working to provide a comprehensive digital coverage to its population?

A: Jalisco cannot be the capital of innovation without providing internet access to all of Jalisco’s population. To this end, the state government has committed a total of US$200 million, a combination of public and private capital, to bring the Red Jalisco to the entire state, particularly to places that have been unattended by commercial companies. If we truly want to generate a digital inclusion strategy and transform the state’s traditional businesses, we need to establish comprehensive digital coverage. We should not limit digital transformation to businesses; the entire population needs to be included so the culture and digital capabilities can flourish.

The project is intended to take three years and we hope to include more than 9,500 sites. This is one of the main strategies for the digital transformation of Jalisco. Once this network is developed, we will see a series of projects that will use it as a base, including the health sector and academia, and will help in the establishment of an open data government.

Q: How will the state government reboot the Ciudad Creativa Digital project and how can it become an example for the rest of the country in terms of innovation?

A: The original idea of Ciudad Creativa Digital was to promote the development of creative industries in the state. The creative industry is growing significantly on a global level, not only for television or cinema, but also for publicity purposes, academic purposes, and also videogames. It is an industry where Jalisco has a real aspiration to participate.

Ciudad Creativa Digital has the purpose of becoming the place to encourage the flourishing of creative industries in the state. Moreover, there are also digital companies that are not necessarily in the creative arena but that are establishing in this complex. The first company to take up residence there is Pisa, which is setting up its technology development area in Ciudad Creativa Digital. We also have a significant number of companies interested in coming into the building and we are confident that through 2020 we will see the arrival of more companies to detonate the creative and digital industries segment.

In addition to the companies that will establish there, it will be the base of our innovation platform. The project will also help us energize the center of the city of Guadalajara. It is a project that is in full development, after being halted by several complications for many years.

Q: Given the ministry’s mandate of transforming the state of Jalisco to a digital hub, what are its main priorities for the next two years?

A: The program Jalisco Tierra de Talento is investing in resources to attract talent to Jalisco and to develop local talent in strategic areas. We also have the Plataforma Abierta de Innovación, the consolidation of Ciudad Creativa Digital and the network of innovation in Jalisco. This innovation network is the physical arm of the strategy that we will use to support innovation and technology transfer. Also, in the works is Jalisco’s Artificial Intelligence Center, which is project with significant funding that is being developed alongside the most important universities of the state and innovation centers. The people working in smart software development or applications can find in this center the support they need for their projects.

Alfonso Pompa, Minister of Innovation, Science and Technology of the state of Jalisco, is an industrial and systems engineer from Tec of Monterrey. He holds a Master’s in business administration and has held several managing-level positions at Tec of Monterrey