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IMP³rove – developing the competitiveness of Small and Medium Sized Enterprises with public
innovation support
November 2011
Dr. Bernd Schmidt
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The importance of innovation
IMP³rove - The European Approach to better Innovation Management
Public initiatives in supporting innovation and knowledge-based development
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The importance of innovation
1) Steve Jobs; 2) Hannes Erler, Swarovski Source: IMP³rove Global Coordination Team, 2011; www.improve-innovation.eu; IMP³rove is a registered trademark
Innovation is an objective – and a means
"Innovation distinguishes between leader and follower"¹)
"Innovation helps to overcome the crisis"²)
Innovation is securing your business
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Innovation Management enables all kinds of innovations to create value for the customer
Source: A.T. Kearney; IMP³rove Global Coordination Team, 2011; www.improve-innovation.eu; IMP³rove is a registered trademark
... an invention/idea of
• new products, processes, production methods, organizational forms
or
• an elementary improvement of a system
and its successful realization
An innovation is ...
Managing innovation is the most critical process for any enterprise but the least well understood
Process innovation e.g. MicroReaction
Technology
Product innovation e.g. BASF's Hexamoll
Service innovation e.g. mobile
telecommunication services
Business model innovation e.g. Dell, Ebay
The importance of innovation
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Description
Innovation Strategy
• Vision and strategic focus on innovation
• Implementation of strategy
Organisation and Culture
• Roles and responsibilities
• Organisational structure
• Organisational culture and climate
Innovation Life Cycle Processes
• Idea management
• Product/Process and Service Development
• Launch and Continuous Improvement
Enabling Factors
• Project management
• Human Resources and Incentives
• IT and Knowledge Management
Innovation Results
Company 3
Company 2
Company 1 1
2
3
4
5
Innovation Results
5
Enabling Factors
Innovations- Organisation and Culture
Innovation Strategy
Idea management
Product/Service/ Process development
Launch/ Continuous Improvement
Innovation Lifecycle Processes
1
2
4
3
Systematic Innovation Management builds on five performance dimensions
“A.T. Kearney House of Innovation”
Source: A.T. Kearney
A.T. Kearney House of Innovation
The importance of innovation
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Innovation Management pays off for small and medium sized enterprises
25,0%26,0%
24,0%
17,0%
25,0%
6,0%7,0%
11,0%
7,0%
4,0%
7,0%
22,0%
Biotechnology /
Pharmaceuticals /
Chemicals
ICT / Electrical /
Optical
Knowledge
Intensive Services
Machinery /
Equipment (Plant
Construction)
Space and
Aeronautics /
Automotive
Overall
Source: IMP3rove, March, 2008, results from Field-test; N = 1324; www.improve-innovation.eu
Annual growth rate of income from sales over the last 4 years (median)
Preliminary results
Average Growth Champions
The importance of innovation
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…as well as larger corporations
Stock price development of DAX index versus DACH Best Innovators(1) (1.1.2003 – 31.12.2010, indexed)
(1) Average performance of DACH Best Innovator winners Source: Best Innovator Competition 2003 – 2010, A.T. Kearney analysis
0
50
100
150
200
250
300
350
400
450
500
08.01.2003 08.01.2004 08.01.2005 08.01.2006 08.01.2007 08.01.2008 08.01.2009 08.01.2010
Dax 30 Best Innovators
Corporate Value increase:
Gap > ~25%
The importance of innovation
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To achieve knowledge-based development very different stakeholders have to be aligned – IMP³rove is here the solution
For SMEs: Improving their innova- tion management perfor-
mance for sustainable growth
For academia: Integrating theory and practice for
innovation mana-gement programs
SME = Small and Medium Sized Enterprise Source: IMP³rove Core Team, 2010 ; www.improve-innovation,eu; IMP³rove is a registered trademark
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IMP³rove is the initiative of the EC to IMProve Innovation Management Performance of SMEs with sustainable IMPact
Source: IMP³rove Core Team, 2010 ; www.improve-innovation,eu; IMP³rove is a registered trademark
IMP³rove as a truly European initiative
Project details
• Start 2006
• Duration: 4 + 2 years
• Budget: € 8 mio.
• Consortium: 3 Partners more than 450 members in the IMP³rove Network
Sponsor:
• European Commission, Directorate General Enterprise and Industry
European Commission, DG Enterprise and Industry
IMProve Innovation Management Performance
with sustainable IMPact
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With the IMP³rove suite of value propositions EEN partners can enhance their service offerings
Source: IMP3rove, 2011; www.improve-innovation.eu; IMP³rove is a registered trademark; CWA = CEN Workshop Agreement
IMP³rove
IMP³rove for sustainable growth
Assessment tool
IMP³rove Partner Services
IMP³rove Academy IMP³rove Research
Rely on IMP³rove trained Innovation Management
consultants
Access experts from very different sectors
and share best practices
Rely on the European pre-standard in inno-vation management
assessment
Develop SMEs on solid benchmarks from the largest benchmarking
database on Innovation Management
3000 SMEs
CWA 15899
500 IMP³rove Consultants
Intermediaries, Financial Actors
Refine innovation policies with high-value
research results
Filling white spot in SME research
Promote Innovation with the IMP³rove
Award
Drivers for innovation
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This eco-system will include all relevant stakeholders and give them a common approach and a common “language”
Source: IMP3rove, 2011; www.improve-innovation.eu; IMP³rove is a registered trademark
IMP³rove
Consultants Intermediaries
Financial actors Policy makers
Academia
Enterprises
Enterprises
Enterprises
IMP³rove powered innovation eco-system
for smart growth
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Governments can increase the innovation capacity and competitiveness with unique IMP³rove offerings
Source: IMP3rove, 2011; www.improve-innovation.eu; IMP³rove is a registered trademark
IMP³rove
Consultants Intermediaries
Financial actors Policy makers
Academia
Enterprises
Enterprises
Enterprises
IMP³rove powered innovation eco-system
IMP³rove Innovation Eco-System
IMP³rove offerings
IMP³rove joint Academic Program
• ObjectiveComplementing the curriculum of the partner university with insights from the IMP³rove Academy
• Steps: Online benchmarking
• On-site visits
• Selection process
• Award Ceremony
IMP³rove Award
• Objective: Creating visibility and
awareness of highly innovative SMEs and the funding agency
• Steps: Online benchmarking
• On-site visits
• Selection process
• Award Ceremony
IMP³rove – Innovation
Support Capability Assessment
• Objective: Defining the demand for suitable measures to improve
the innovation management support
capabilities of innovation support service providers
• Steps: Definition of levels of proficiency -
Assessment of training needs – Definition of
most effective measures and
offerings
IMP³rove – Enhancing the qualification in
Innovation Management for
support providers
• Objective: Improving the Innovation Management
competencies of support providers for
better services to SMEs
• Steps: Training offerings on various
levels of proficiency in innovation
management – customized to the
needs of the region or funding agency – evaluation of the
impact of the programme
IMP³rove – SME Workshops on
Innovation Management
• Objective: Creating awareness for
innovation management as key driver of profitable
growth and competitiveness
• Steps: Demonstrating the impact of
innovation management on
growth in sales, profit and number of employees – explaining the dimensions of
innovation management – show
practical approach how to improve the own
innovation management
IMP³rove – Investment Impact
Assessment
• Objective: Assess the success of start-up companies after 5
years
• Steps: Business performance of the start-up companies
after 5 years – Definition of areas for
improving the business performance –
consolidation of results from the start-up sample in scope
IMP³rove – Sustainability
Driven Innovation Management
• Assessment of a company’s focus on
• Economic
• Ecologic
• Social
Sustainability
• IMP³rove Sustainability Report as basis for further improvement of services innovations and innovation services
Regional programme to
raise the innovation
performance of SMEs
• Diagnostic phase: Innovation
Management Capabilities in SMEs
• Assistance phase: Support in design and
implementation of programmes to improve SMEs’
innovation management
performance and competitiveness
• Evaluation phase: Evaluating the impact
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What has been initiated by the European Commission is now ready for adoption by the EU Member states and beyond
Source: IMP3rove, 2011; www.improve-innovation.eu; IMP³rove is a registered trademark; KIS = Knowledge intensive services
IMP³rove
UK: Scottish Enterprise has recently adopted IMP³rove as part of their support of local
SMEs Serbia: 150 SMEs have been
assessed within a publicly funded national program
France: National Innovation Agency has supported the
IMP³rove Assessment for KIS companies Germany: IMP³rove
Assessment as option for their “go inno” program
Hungary: IMP³rove Assessments selection of highly competitive SMEs
Egypt: Assessing ICT companies; now developing a
national program
Good practice example to integrate IMP³rove services into national or regional development
programs
There are still numerous opportunities to develop the national or regional IMP³rove eco-system for
improved innovation capacity of SMEs
Australia: IMP³rove Assessments for
manufacturing companies
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Business success of enterprises drive the adoption of IMP³rove for knowledge development
IMP³rove
Source: IMP³rove Core Team, 2011 ; www.improve-innovation,eu ; IMP³rove is a registered trademark
Case examples of successful implementation of IMP³rove
UK-based automotive supplier
German-based book retailer
• Situation: Significant losses due to economic crisis
• Approach: Performance of the IMP³rove Assessment revealed new market potential by
• Entering the wagon and train sector
• Leveraging manufacturing licenses
• Impact: After 1 year after the IMP³rove Assessment turned from a loss-making company to more than 1 mio GBP in profit
• Situation: Disruptive technology of e-books jeopardized the traditional book retail market
• Approach: Performance of the IMP³rove Assessment revealed new market potential from “book on demand” by
• Establishing a new business unit
• Maintaining the existing business
• Impact: Preparing for the maturing/ shrinking business in the traditional book retail market by building a new business segment
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IMP³rove Research has generated already a number of well-received research results
IMP³rove
Source: IMP³rove Core Team, 2010 ; www.improve-innovation,eu ; IMP³rove is a registered trademark
European Innovation Management Landscape – Assessment of current practices in Innovation Management consulting approaches and Self-Assessment Tools in Europe to define the requirements for future “best practices”; EuropeINNOVA Paper No 2, 2006
Insights in Innovation Management – Tangible results from IMP³rove; EuropeINNOVA Paper No 10, 2008
IMP³rove: A European project with impact – 50 success stories on Innovation Management; EuropeINNOVA Paper No 14, 2010
IMP³rove Study: Innovation Management in High-Growth SMEs from the Knowledge-intensive Services (KIS): Setting the Pace for Growth in Europe, 2010
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Due to its impact, IMP³rove received the Europe INNOVA Award 2008 from the European Commission
IMP³rove as a truly European initiative
Source: IMP³rove Core Team, 2010 ; www.improve-innovation,eu; IMP³rove is a registered trademark
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We are looking forward to your questions!
Dr. Bernd Schmidt A.T. Kearney GmbH Kaistrasse 16 A D-40221 Düsseldorf Germany
Tel: +49 (0)211 1377 2789 Fax: +49 (0)211 1377 1789
[email protected] [email protected]
Source: IMP³rove Core Team, 2010; www.improve-innovation,eu; IMP³rove is a registered trademark
www.improve-innovation.eu