Understanding Human Capital in Innovation

The video discusses the common misconception among innovators that human capital is solely an internal asset. It suggests a shift in focus towards enhancing the human capital of customers, using Henry Ford's mass production of automobiles as an example of transforming customer capabilities. The key takeaway is to align innovation investments with customer improvement, ensuring mutual benefits. The design heuristic 'making customers better makes better customers' is introduced to guide organizations in prioritizing innovation efforts.

What is a common misconception about human capital among innovators?

• It is an unlimited resource.

• It is only about hiring more people.

• It is merely an asset or resource.

• It is not important for innovation.

What does the speaker suggest about the competitive advantage in the post-industrial era?

• It is about reducing operational costs.

• It is about expanding globally.

• It is about having better human capital than competitors.

• It is solely based on technological advancements.

What new perspective does the speaker suggest regarding innovation?

• Innovation should be seen as an investment in customer capabilities.

• Innovation should prioritize market expansion.

• Innovation should focus on creating new products.

• Innovation is only about improving employee skills.

How did Henry Ford's innovation impact human capital?

• By facilitating the mass creation of driving skills.

• By creating more jobs in factories.

• By enabling mass production of cars.

• By reducing the cost of automobiles.

What is the essential innovation takeaway according to the speaker?

• Invest in new technologies.

• Transform the human capital of customers.

• Focus on employee training.

• Expand into new markets.

What is the role of customers' human capital in innovation?

• It should be the focus of innovation investments.

• It is irrelevant to innovation.

• It is less important than employee skills.

• It is only important for marketing.

What is the design heuristic introduced by the speaker?

• Focusing on employees makes better customers.

• Making customers better makes better customers.

• Investing in technology makes better customers.

• Better products make better customers.

Why is it important to align innovation investments with customer improvement?

• To increase product sales.

• To reduce marketing costs.

• To exploit customer resources.

• To make customers more valuable to themselves and the organization.

What does the speaker mean by 'making customers better'?

• Offering discounts to customers.

• Enhancing customer capabilities and competencies.

• Increasing customer loyalty.

• Improving customer service.

What is the potential risk of making a better customer without reaping benefits?

• Increased competition.

• Customer dissatisfaction.

• Exploitation.

• Higher costs.