To listen to the interview in Spanish, please click here.
Luis Ramos, head of Latin America at PA Consulting Group, is interviewed about PA's innovation report on Enfoque Financiero, one of Mexico's leading radio programmes.
Luis is asked why PA did this study. He explains: “PA has been a leader in innovation for many years. Because this is such a top priority for PA, we decided to conduct a global survey to unlock pain points around innovation in the hopes of helping companies overcome their innovation challenges. It is really interesting, because innovation challenges are one of the biggest barriers to economic development, its productivity enhancement and growth.”
Luis comments on how Mexico stacked up compared to other countries around the globe: “Mexico is one of the 15 countries that were included in our survey. PA Consulting Group interviewed 750 senior executives across nine different sectors worldwide. Mexico has some very interesting results, but in a nutshell the cause of innovation problems in Mexico are very similar to the same causes around the rest of the world.”
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Luis goes on to explain: “Financing innovation is one of the main problems we face. Among the conclusions of this report, we have segmented innovation leaders from those who are not leaders, and the differences in return of investment is really brutal. Out of the leaders, 71 percent have seen growth in their profits, and half of them have seen an increase of double digits. In conclusion, we can say that commitment to innovation has a much higher profit than not taking risks. We're not talking about immediate short-term results, but a change of culture in the long-term will result in innovation and growth.”
When asked about how digital technology impacts innovation, he said: “There are two perspectives; on one hand, digital is a crucial element for successful innovation. Leaders who use digital technology for innovation, are able to learn quickly from their mistakes, and correct them before the risk is too high. On the other, only 10 percent of innovation taking place in the companies comes from technology. Fifteen percent comes from the employees and 15 percent from their customers. This means that the association between technology and innovation is merely conceptual, it is relevant but it is actually not the most important.”