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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

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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

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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

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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

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Electrophotography

Market Information

Flexible Displays

Inkjet

Paper Types

and Properties

PATENT MAPPING (2) Semantische Analyse - BibTechMon

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PATENT MAPPING (3) Patentnetzwerk

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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’

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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’

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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.

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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)

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Colours indicate different departments

Communication Network (4)

Node size reflects degree centrality

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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

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This is a ….

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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

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Team Diversity

Source: Glowinkovsky

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Seite 57

INNOVATION SYSTEM

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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

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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

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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

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Megatrends

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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

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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

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Idea Evaluation

• Strategy Fit

• Customer Value

• Benefit (Revenue)

• Risks

• Portfolio Balance

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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 (!)

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