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Basic Innovation Principles

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Introduction Acceptance of Innovations Eight Innovation Principles

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Basic Innovation PrinciplesOverview

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Basic Innovation PrinciplesIntroduction

Aerial view of the ABB Campus in Turgi

Roberto LucasAlexis

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Basic Innovation PrinciplesIntroduction

Roberto Lucas Alexis

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Innovations...

... require a positive attitude for them to be succesful

... are welcome on the shop floor – as long as they enhance existingcapabilities and do not destroy jobs

... will face low acceptance ifthey completely changeexisting processess

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Basic Innovation PrinciplesAcceptance of Innovations

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Basic Innovation PrinciplesEight Innovation Principles

Innovation

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Basic Innovation PrinciplesNo Innovation Outside Strategy

vs.

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Basic Innovation PrinciplesNo Innovation Outside Strategy

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Basic Innovation PrinciplesNo Innovation Outside Strategy

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BU/CRC/Supplier Project yet to start

Demo/pilot/Supplier project ongoing

BU/CRC/Supplier Project/Prod Finished

@BU @Supplier

2012 2013 2015 2014

BU Devices

2011

Multicore CPU

@CRC

2016

FPGA+DualCore ARM A9

28nm

Dual-core 200MHz DSP

DSP+ARM (200+MHz)

SoCType A

SoCType B

x86 Architecture+ FPGA

FPGA+QuadCore A53

20nm

BU Device A

BU Device C

BU Device B

DSP+ARM (150MHz)

ReplacementFor BU Device A

end 2017? Established Product

Product in Development

400MHz x86

ARM (720MHz)

ARM A15 2&4-core

ARM A9 +PRU

< classified >

< classified >

Dual-Core CPU’s

(40nm)

ARM M4 (120MHz)

Quad-Core CPU’s with FPU

(28nm)

Low cost FP DSP+HW Accel

< classified >

< classified >

Development to start

DSP+ARM(100MHz)

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If innovation goes outside the company’s strategy, spin it off

Changing or adapting the strategy might demotivate people

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Basic Innovation Principles Spin off Innovation

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Basic Innovation PrinciplesSpin off Innovation

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In the last couple of years ABB did not spin off innovation

Other examples:

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The Value proposition is the answer to the question «Why should the customer buy our product?»

As long as you answer this question, the innovation remains customer-driven.

You will have to find the competitive advantage

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Basic Innovation PrinciplesEveryone should know the Value Proposition

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Why should customers buy our traction converters?

long-term customer relationship

application know-how

service and maintenance

quality and reliability

cost-performance ratio

proximity

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Basic Innovation PrinciplesEveryone should know the Value Proposition

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Project Mgmt Plans ask to prioritize... Product Functionality R&D Time R&D Cost

...out of which ultimately... The full functionality is rarely achieved Deadlines are never kept Cost is typically overrun

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Basic Innovation PrinciplesOpen One Valve at the Start

Innovation

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How we would like to work at ABB Turgi :

How we actually work at ABB Turgi :

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Basic Innovation PrinciplesGo for a Quick Start

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Project A Project B Project C

Support for project A

Under budget

Project start

Slow

Project A

Project BProject C

?

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Basic Innovation PrinciplesInnovation Management = Project Management

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Innovation is only useful if it makes money

Thus, you need a business plan from the beginning which…

shows a sound cash flow and

has a payback period that is accepted in the specific

industry

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Basic Innovation PrinciplesInnovation Management = Profit Management

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Basic Innovation PrinciplesInnovation Management = Profit Management

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Target was to develop a new and highly innovative concept for traction converters

Get rid of inefficient, heavy and bulky 16.7Hz transformer by using power electronics and medium frequency transformer technology

||MAS MTECSS 2015 - Managing the Technology-Driven Enterprise Group Delta | R. Celli, A. Leibbrandt, L. Schmid 1915.04.2015

Basic Innovation PrinciplesInnovation Management = Profit Management

Key benefits of new concept are… significant lower energy consumption of the train

reduced weight and more space for passenger available

Project was finally stopped because of… weak business case and weak market response

concept only interesting in 16.7Hz market in which ABB

is already strong

Innovation

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Basic Innovation PrinciplesInnovation Management = People Management

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Project owner Personal support

Project Leader Direct contact with customer Knows what market segment to target

Project team Diverse and cross-functional Analytical thinking, Skills, Breadth, Empathy

Pictures : link

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Q & A