Design of an innovation model for a SME in Monterrey, Mexico

Firms in emerging economies realize the importance of innovation to compete in global arenas. However small and medium enterprises (SME) struggle to start the innovation practice because they lack support from innovation experts and they don't have enough resources to afford this process. Allity is a small IT company specialized in business intelligence applications located in Monterrey, Mexico, and this paper illustrates the process of designing Allity's Innovation Model in order to become an innovative firm. It shows the difficult environment that an SME confronts to innovate, such as the absence of institutions that support the practice of innovation and of qualified personnel to conduct innovation projects. Inside the firm this study identified some inhibitors such as the lack of knowledge of what innovation really is and that employees do not see the real possibilities that innovation can provide to the firm. Therefore the practice of innovation is seen as a risky initiative that inhibits its practice. An innovation model facilitates this process, as it clarifies the path that the firm should follow to develop innovation projects. In Allity this project also motivated personnel to start innovation projects. A methodology to design innovation models for SME is also proposed.