Download - Pdma Workshop Hult Mba Feb 2011
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Innovation Workshop, Feb 8th, 2011, London
Ing. Gerhard Drexler, MMMSc, MBA
Head of R&D, Mondi UFP
DI (FH) Maria Tagwerker-Sturm, MSc, MBA
Innovation Manager, Doka
About us
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• The Product Development and Management Association (PDMA) is
the premier global advocate for product development and
management professionals.
• Our mission is to improve the effectiveness of individuals and
organizations in product development and management. This is
accomplished by providing resources for professional development,
information, collaboration and promotion of new product
development and management.
• PDMA members span a variety of disciplines (practitioners, service
providers, academics and students) and industries - from the most
widely admired and accomplished new product companies in the
world, from the largest to the smallest, and from services of all kinds.
We currently serve over 3500 members with the most up-to-date
resources and information on new product development.
The Need of Innovation
Continous
Improvement
Innovation
Time
Income
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The Need of Innovation
Ideality
Time
Breakthrough
Innovation
Continous
Improvement
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Modes of Innovation
Research &
New Technologies
Product
Innovation
Process
Innovation
New Business
Model Innovation
Service
Innovation
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Research &
New Technologies
Product
Innovation
Process
Innovation
New Business
Model Innovation
Service
Innovation
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Research & New Technologies
Materials
Surfaces
Automation
Hybrid Technologies
Biotechnology
Nanotechnology
Basis for the development of new
products and processes
Example: Nanotechnology as basis for
novel and ‚intelligent‘ surfaces
Important for high-technology
and/or process-intensive industry
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Research &
New Technologies
Product
Innovation
Process
Innovation
New Business
Model Innovation
Service
Innovation
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Process Innovation
Continous
Improvement
Process
Bench-
marking
Innovation
Bre
akth
rou
gh
Im
pro
vem
en
t
Frequently Periodical Randon
• Production
processes
• Organisational
processes
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SPICE ISO 15504
Level 1 PerformedPA.1.1 Process Performance
Level 1 PerformedPA.1.1 Process Performance
Level 2 ManagedPA.2.1 Performance Management
PA.2.2 Work Product Management
Level 2 ManagedPA.2.1 Performance Management
PA.2.2 Work Product Management
Level 3 EstablishedPA.3.1 Process Definition
PA.3.2 Process Deployment
Level 3 EstablishedPA.3.1 Process Definition
PA.3.2 Process Deployment
Level 4 PredictablePA.4.1 Process Measurement
PA.4.2 Process Control
Level 4 PredictablePA.4.1 Process Measurement
PA.4.2 Process Control
Level 5 OptimizingPA.5.1 Process Innovation
PA.5.2 Process Optimization
Level 5 OptimizingPA.5.1 Process Innovation
PA.5.2 Process Optimization
Level 0 IncompleteLevel 0 Incomplete Incomplete
The process is not implemented
or fails to achieve its purpose
Performed
The process is implemented and
achieves its process purpose
Managed
The process is managed and
work products are established,
controlled and maintained.
Predictable
The process is enacted
consistently within defined limits
Optimizing
The process is continuously improved to meet
relevant current and projected business goals
Established
A defined process is used based on
a standard process.
Source: Gesellschaft für Prozessmanagement
Processes - Level of Maturity
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SPICE ISO 15504
OUTStufe 4
(predictable)
IN
OUTStufe 3
(established)
OUTStufe 5
(optimizing)
IN OUTStufe 2
(managed)
Stufe 1
(performed)
IN OUT
IN
IN
Quelle: Gesellschaft für Prozessmanagement
Imp
rovem
en
t a
t
pro
du
ct
level
Imp
rovem
en
t a
t
org
an
isati
on
al
level
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Research &
New Technologies
Product
Innovation
Process
Innovation
New Business
Model Innovation
Service
Innovation
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Product Lifecycle
Product Lifecylce
Product Generations
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Research &
New Technologies
Product
Innovation
Process
Innovation
New Business
Model Innovation
Service
Innovation
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Service Innovation
• Services are the non-material equivalent of a good.
• People offer their knowledge and time.
• Services are hardly quantifiable. The best indicator for quality is the
customer satisfaction.
• Every service is individual and can be sold only once.
• Examples of traditional services: Web and communication services,
mailorder business, travelling, car repair shops, insurances …
• The service sector is a growing business, e.g. in Germany more than
55% of the sales are gained with services.
• Services can be provided as an independent product or in combination
with the core products.
Potential for service innovation in every business sector!
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Service Design - Customer Journey
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Research &
New Technologies
Product
Innovation
Process
Innovation
New Business
Model Innovation
Service
Innovation
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High Potential of Business Model Innovation
NEW WAYS TO EARN MONEY
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New Business Model Innovation
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How do develop a New Business Model
Value Creation
Architecture
How do I provide the
value?
Value Proposition
Which benefit do I offer to my
customers and stakeholders?
Revenue Model
How do I earn money?
Partners
Production
Value Chain
Distribution
Sales Channels
…
Prices
Cost Structure
…
Target Customer
Customer Activities
Customer Relationship
Key Activities
…
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Blue Ocean Strategy
Create Uncontested Marketplace
Source: http://www.summit-performance.com/Blue_Ocean_Strategy.htm Page 22 | Drexler | Tagwerker-Sturm | 2011
Why do Enterprises Innovate?
Serve New
Markets
New
Technologies
Trends
e.g. Green
Differentiation
Changing
Market
Requirements
Changes in the
Environment
e.g. Laws
SURVIVE
IN THE
MARKET
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Linked to Strategy
DOKA
• Global leader in formwork technology
for the construction industry
• Member of the Umdasch Group
• 760 Mio Euro earnings
• 5300 employees
• Production sites in Austria and
Slovakia
• 150 sales & logistics location in more
than 65 countries
• R&D center in Austria with 85
employees
www.doka.com
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MONDI
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• Mondi is an international paper and
packaging group and had revenues of EUR
5.3 billion in 2009.
• Its key operations and interests are in
western Europe, emerging Europe, Russia
and South Africa.
• Mondi has production operations in around
31 countries and about 31,000 employees.
• Mondi is a dual-listed company at the
London Stock Exchange (LSE) and
Johannesburg Stock Exchange (JSE).
Why Innovation Management ?
Source: Kienbaum
1919 Ideas
524 Projects
176 Products
146 Flops
(Loss)
17 Average
Products
11 Success
Products
Innovation Management is the
systematic planning, steering
and controlling of innovations
in an organisation.
It is part of the implementation
of the business strategy.
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Reasons why Innovations Fail
Development time too long
Lacking coordination and cooperation
Too less information about customer requirements
No „failure culture“
Difficulties in selecting the right ideas
Problems with measuring success
Lack of great ideas
Unsuccessful marketing of innovations
32 %
28 %
26 %
25 %
21 %
20 %
18 %
17 %
Page 27 | Drexler | Tagwerker-Sturm | 2011 Source: BCG
Seite 28
INNOVATION SYSTEMS
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Complexity in Systems
Source: Heiss, Siemens, 2009 Page 29 | Drexler | Tagwerker-Sturm | 2011
Detecting and Reducing Complexity
Source: Heiss, Siemens, 2009 Page 30 | Drexler | Tagwerker-Sturm | 2011
Source: Stefan Güldenberg
Visible
Results
Behaviour Patterns
Dynamic Systems
Structure
The „Waterline“
The more important and
bigger structure is not
visible
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DEFINITION of a ‚SYSTEM‘
A system designed by human beings comprises a number of structured
components which interact with each other and their environment in
order to create a clear advantage.
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• The systems exists to provide benefits to its creators.
• It consists of components which interact to achieve the goals for
which the system was designed.
• It exchanges information and materials with the environment.
• It has to adapt to its local environment (e.g. the enterprise), what
causes some restriction to its behaviour.
EXAMPLE INNOVATION SYSTEM
Source: Twiss 1992
INNOVATIVE INTERNAL ENVIRONMENT
Knowledge
of market
needs
Project
champion Innovation
Evaluation
systems
• Analysis
• Strategic
considerations
Project
management
• R & D
• Design
• Production
• Marketing
EXTERNAL ENVIRONMENT
THE COMPANY
Idea
Project
proposal Project Product
Scientific
and technological
knowledge
Creativity
Page 33 | Drexler | Tagwerker-Sturm | 2011
EXAMPLE INNOVATION SYSTEM
Source: Sören Salomo, Plattform für Innovationsmanagement 2007
Strategy
R&D
Innovation Process
Innovation System
Innovation
Performance
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TAILORED INNOVATION MANAGEMENT
Experiences from introducing
innovation management systems
• Consultants tend to overemphasise tools
according to „one-size-fits-all“.
• One company’s innovation management
system won‘t necessarily work with the
other ones.
• Innovation Management Systems comprising
appropriate elements are „lean“.
Innovation Management needs to be tailored to a
company‘s individual requirements due to different
cultures, size, organisation, business models, strategy ...
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Exploration vs. Exploitation
• Exploration includes activities captured by terms such as search,
variation, risk taking, experimentation, and discovery.
• Exploitation implies firm behaviours characterised by refinement,
production, efficiency, implementation, and execution.
• Exploration involves new knowledge, whereas exploitation
involves the use and development of things already known.
• ANTS
Page 36 | Drexler | Tagwerker-Sturm | 2011
Seite 37
INNOVATION SYSTEM
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R&D Framework
Allocation of Resources
Uncertainty
What is
possible?
5–10 y
Is it attractive? Do we want it?
Can we do it?
Does it fit?
3–5 y
What exactly &
how?
1–2 y
Page 38 | Drexler | Tagwerker-Sturm | 2011
Innovation Process
Idea,
Screening &
Evaluation
Innovation
Concept &
Pre-
Feasibility
Study
Feasibility
Study &
Trials
Development Approbation
& Field Tests Roll Out
Front End Research & Development Utilisation
Incremental Innovation
Gate Keepers: Expert Team
Knowledge Generation
Knowledge transfer with
partners
Gate Keepers: OPCO
Commercial Success
Innovation Enablers
ROADMAP
Ideas from
Employees
Ideas from
Partners
CCI
Research
Inn
ova
tio
n V
alu
e C
ha
in
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PATENT MAPPING (1) Semantic Analysis - BCG
Page 40 | Drexler | Tagwerker-Sturm | 2011
Electrophotography
Market Information
Flexible Displays
Inkjet
Paper Types
and Properties
PATENT MAPPING (2) Semantische Analyse - BibTechMon
Page 41 | Drexler | Tagwerker-Sturm | 2011
PATENT MAPPING (3) Patentnetzwerk
Page 42 | Drexler | Tagwerker-Sturm | 2011
hohe Anzahl
stark wachsend
high number
strong growth
high number
littlegrowth
low number
strong growth
Size
Gro
wth
4
7
11
9 10
1 5
low number
little growth
PATENT MAPPING (4) Patent Dynamics
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2
6
3
8
ROADMAPPING (1) Input ‘Trends’
Page 44 | Drexler | Tagwerker-Sturm | 2011
ROADMAPPING (2) Beispiel
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Innovation Roadmap
Definition of
technology and market
trends
Definition of projects
and clusters to meet
the trends
Definition of relevant
knowledge and skills
to conduct projects
ROADMAPPING (3) Mondi ‘Top Layer’
Page 46 | Drexler | Tagwerker-Sturm | 2011
Network Analysis
24. Nov. 2010 Gerhard Drexler / Sigrid Schauer
Structural Issues
• Degree Centrality is based on the number of direct links maintained by an
individual or an organisation with others in the network. In general, the higher
the degree of an actor, the more power he has on the network.
degree = number of links / (number of actors – 1)
• Closeness Centrality is calculated by considering the shortest path connecting
an individual to any other actor in the network. It states how close an individual
is to others in a network.
• Betweenness Centrality considers the extent to which an individual’s position
in a network lies between the positions of other individuals. It measures the
influence that a given node has in the spread of information within the network
in the sense of being able to shut it down eventually.
Strong vs. Weak Ties
• Strong Ties frequent interaction (family, close friends, ...)
• Weak Ties infrequent interaction (members of associations, relatives, ..)
weak ties are important for explorative aspects of innovation.
Page 47 | Drexler | Tagwerker-Sturm | 2011
Communication Network
22. Okt. 2009 Zeit für Innovation / Gerhard
Drexler PAGE 48
Page 48 | Drexler | Tagwerker-Sturm | 2011
Source: http://www.orgnet.com/sna.html
Communication Network (1)
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Communication Network (2)
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Communication Network (3)
Page 51 | Drexler | Tagwerker-Sturm | 2011
Colours indicate different departments
Communication Network (4)
Node size reflects degree centrality
Page 52 | Drexler | Tagwerker-Sturm | 2011
Innovative People
Mar
kt
Degree of Interactivity
community
personal
Degree of
Sharing
Degree of
Connectivity
high
small
low high
Most effective
communicators
Quelle: P. Gloor / MIT / 2006
Page 53 | Drexler | Tagwerker-Sturm | 2011
This is a ….
Page 54 | Drexler | Tagwerker-Sturm | 2011
EFG => EFH MNO => ?
• MNP Replace the rightmost letter by its alphabetic successor
• MNO Replace all G’s by H’s (there are no G’s in MNO)
• MNH Replace the rightmost letter by a “H“
• EFH Replace any string by EFH
• ...and many more
Page 55 | Drexler | Tagwerker-Sturm | 2011
Team Diversity
Source: Glowinkovsky
Page 56 | Drexler | Tagwerker-Sturm | 2011
Seite 57
INNOVATION SYSTEM
Page 57 | Drexler | Tagwerker-Sturm | 2011
Innovation Management System
Innovation Process & Organisation
Innovation Steering
Innovation Environment
Idea
Collection
Idea
Evaluation
Development
& Test Launch
Project Management Idea Management
Strategy Planning Portfolio
Management
Innovation
Controlling
Knowledge
Management
Open
Innovation
Innovation
Marketing
Leaderhsip &
Culture
Page 58 | Drexler | Tagwerker-Sturm | 2011
Doka Group Organisation
CEO Doka Group
Sales
Sales Region 1
AT 1
Sales Region 2
AT 2
Sales Region 3
AT 3
Sales Region 4
AT 4
Sales Region 5
AT 5
Sales Region 6
AT 6
Engineering
Product & Service
Development
Competence Centers
Applications Engineering
Logistics, Production & Procurement
Procurement
Quality
Production
Order Processing
Product Management
Marketing
Germany Europe Eastern
Europe
South Europe
& Latin
America
Africa
Asia
Oceania
North
America
Page 59 | Drexler | Tagwerker-Sturm | 2011
Product & Service Development
Product & Service Development
Research & Components Development
Research & Systems
Development
Software Development
Technical Documentation
Central Service Organisation
Innovation Management
Patents
Special Projects
Page 60 | Drexler | Tagwerker-Sturm | 2011
Innovation Process
Page 61 | Drexler | Tagwerker-Sturm | 2011 Development Phase
0 Idea
Management
1 Definition
2 Analysis,
Concept &
Planning 5 Implementation
(Market,
Produktion)
6 Market
Launch
7 Evaluation
3 Feasibility
Study 4 Development
& Tests
Profit
Co
mm
eri
cia
lizati
on
Ph
ase
C
on
cep
t Ph
ase
Product Lifecycle
Management
Future Radar
Technologies
Market
Simultaneous Engineering
Project
Order
Idea Management
Employee
submits an
idea
Pre-Selection
(Filter)
Innovation Priority
Number
Central Idea Team
Award
Analysis & Defintion
(Work Group IG0)
Definition
Costs-Benefits
Project
Proposal
Start Innovation Project
(Innovation Process)
Approval
Service &
Products
Production
processes
Sales &
organisational
processes
Portfolio
Database
Customer
& Market External Creativity
Page 62 | Drexler | Tagwerker-Sturm | 2011
Idea Generation Methods & Sources
• Employees
• Lead User Workshops
• Trend Analysis & Scenarios
• Construction Site Visits
• Creativity Workshops
• Fairs & Conferences
• Partners (University, R&D Institutes, Suppliers)
• Inventors
• Patent Screening
• Literature
• Standards, Laws
• Market Intelligence
• Customer Complaints
Page 63 | Drexler | Tagwerker-Sturm | 2011
Megatrends
Page 64 | Drexler | Tagwerker-Sturm | 2011
Deduce Future Impact Factors
from the Megatrends
Topic
Parameter
Present Future
Picture of
the future
Szenario of the
environment
Workshop with
Lead Users and
Experts
Page 65 | Drexler | Tagwerker-Sturm | 2011
Future Scenarios
External Idea Sources
• Fairs, conferences and
trainings
• Central organisation in a
„conference calender“
• Provide a 1-Pager with
learnings and take-aways
Expert Conferences Innotours
• Study trips to construction
sites, suppliers, partners …
• Learning from each other
• „To look beyond one‘s own
nose“
• Idea Generation
Page 66 | Drexler | Tagwerker-Sturm | 2011
Idea Evaluation
• Strategy Fit
• Customer Value
• Benefit (Revenue)
• Risks
• Portfolio Balance
Page 67 | Drexler | Tagwerker-Sturm | 2011
Innovation Marketing
• Innovation Spirit
First of all employees need to understand
the purpose of innovation in order to commit
and support the innovation process.
• Communication to inform and sensitize
− Event „Milestones“
− Innovation Calender
− Presentations and Trainings
− Innovation Newsletter
− …
• Involvement in the Innovation Process
− Ideas
− Customer and Market Feedback (Requirements)
− Innovation Project
− Support the Market Launch (!)
Page 68 | Drexler | Tagwerker-Sturm | 2011