Académique Documents
Professionnel Documents
Culture Documents
Lecture at the TU Darmstadt for iCE (Information and Communications Engineering) and all other students interested in the subject
Acknowledgments
I am grateful to Prof. Horst Geschka for the permission to re-use the material he has used for several years during lectures at Darmstadt University of Technology.
I also very much appreciate the support I have received from several of my colleagues at IBM either providing me some of their material or pointing me to very valuable material publicly available.
Innovation Management / JD
Housekeeping
Breaks Coffee breaks in the morning and in the afternoon Lunch break (~1 hour) No mobile phones please. Most of this material can be downloaded @http://www.ies.tudarmstadt.de/media/fachgebiet_ies/pdf/studiumundlehre_3/vorlesungen/vorlesung_innovationma nagement/deicke2010.pdf Some slides will only be shown to you and/or are developed at the blackboard (will let you know when to draw). Interactive sessions: Beginning of day 1: your expectations End of day 1: what was good, what could be better Beginning of day 2: open questions from day 1 End of day 2: what was good, what could be better Beginning of day 3: open questions from day 2 End of day 3: overall feedback, what was good, what could be better Please ask anytime if you dont understand me or something I said!
Innovation Management / JD
Exam
When: March 25th 2010 9:00am Where: tbd How long: 60 minutes When again: probably March 2012 There will be an exam in fall 2011 (probably an oral exam) How to register: Hopefully already doneif notplease contact me
Innovation Management / JD
Today, innovation is about much more than new products. It is about reinventing business processes and building entirely new markets that meet untapped customer needs. Most important, as the Internet and globalization widen the pool of new ideas, it's about selecting and executing the right ideas and bringing them to market in record time.
Innovation Management / JD
ov Si Is atio m n pl e! !!
In n
Innovation Management / JD
Innovation Management / JD
Innovation Management / JD
10
Innovation Management / JD
13
What is a Patent ?
Exclusive right granted to the inventors for a fixed period of time.
Patent
Must be novel.
Must be non-obvious.
Exclusive right is the right to prevent or exclude others from making, using, selling, offering or importing the claimed invention. Innovation Management / JD 14
Innovation Management / JD
15
Patent Application
Issued Patent
Expired Patent
Patent-Codex
Do not steal ideas. Involve everybody who contributed to the idea. Do not get listed as inventor if there was no contribution. Do not disclose your idea to others before it has been submitted. Other countries have different policies for filing. Be honest and investigative when assessing prior art and other patents. Be friendly and polite to reviewers and other authorities.
Innovation Management / JD
18
Idea
Publish?
Y
File?
Y
Finalize Publish Doc. (max. 2 pages) Patent Award Close & Save 19
Innovation Management / JD
Invention Database
Repository for all ideas Structured data base providing links to Products Services Business Processes Market Trends Technologies Can be used to search on ideas Can be linked to development processes Link between marketing requirements and existing ideas
Innovation Management / JD 20
Patent Review
Three aspects are important to the review team: 1. What problem is solved ? Prior Art Problem / Deficiency Solution of the problem your idea Shall not be obvious What is novel ! 2. Is it practical? Based on prior art 3. Business value for an Enterprise? Usable for products and services Licensable to other companies Future value for the enterprise
Innovation Management / JD
22
New Technology
Daily problems
Look for trends and strategies in the market and within the company Motivation to invent
Thing which annoys us: Something like this should exist Innovation Management / JD
Patent-Thinking Pattern
What is the problem? Generate ideas to resolve it!
Multiple independent and distinct ideas can form separate patents Recommendation: place all relevant ideas in one disclosure to safe time. It will be sorted out later.
Innovation Management / JD
24
Delphion
Search engine to look for prior art (patents, publications, etc) http://www.delphion.com/
A technological innovation is a new or considerably improved product or a new or considerably improved production process.
The process of innovation includes all activities leading to the innovation: Starting with the perception of an unsolved need, the generation of an idea, R&D to solve the problem, through setting up new production capacities and ending with the introduction and widespread diffusion in the market.
Innovation Management / JD 27
Characteristics of Innovations
Innovations are new products, processes or services aimed to be commercialized. Innovations can be offered in the market (products or services) or applied within a firm (mainly as processes). Innovations result in a considerable benefit or increase of efficiency (leap in progress); this distinguishes them from improvements. Innovations generate substantial benefits for the users. Within innovations we differentiate between incremental and radical innovations. Radical innovations are breakthroughs with a major impact on production and application patterns. (i.e. drive by wire, biodegradable packages) Innovations include high risks. Innovations need long time to ripe and enter the market. The emergence of innovations is in most cases a complex process.
Innovation Management / JD 28
Idea Generation
New Technological Opportunities Synthesis: Innovation Idea Problems, Needs Problem Solving Concept
Marketing-Concept
Demand Pull
tro on cti du
Innovation Management / JD
30
Innovation Management / JD
31
Innovation Management
Innovation management means management of innovation processes. Innovation management is: setting up the internal environment and conditions for innovation processes designing a frame and a standard innnovation process carrying out the individual innovation projects
Innovation Management / JD 32
Innovation Management
Two phases:
1. Idea management To find the right product/project (effectivity)
2. Project management
To develop the product efficiently, i.e. to achieve the goals, targeted costs and schedule (efficiency)
Innovation Management / JD 33
Efficiently organized innovation processes only pay out, when the strategically right topics and projects have been chosen (effectivity).
Innovation Management / JD 34
product
NIH
Innovation Management / JD
35
Leo
Innovation Management / JD
36
On Innovation management
An Organization that is designed to do something for the millionth time is not good at doing something for the first time. Therefore, organizations that want to innovateneed two organizations, an operating organization and an innovating organization. Galbraith (1982), page 6
Innovation Management / JD
37
Innovation Management / JD
39
Innovation Management / JD
40
Innovation Management / JD
42
Low effort
Concept finding
Innovation Management / JD
Concept design
Development
44
Effort
1
Concept finding
2
Development of innovation components
3
Getting ready for the market
4
Market launch
3. Generation
For the Single Search Field: Need assessment Collection of ideas Creativity workshops Licence investigations
Innovation Management / JD
6. Implementation
46
Innovation Management / JD
47
Technology Monitoring Technology Roadmaps Scenarios Laying down directions and fields for innovation Need assessment Creativityworkshops Creative climate of the company
Screening Evaluation criteria Idea assessment Idea further-development Idea management system Inquiries Analysis of requirements Specifications
Innovation Management / JD
48
Innovation Management / JD
51
SWOT-Analysis
Strengths
strategic gap
A business field A
- accumulated sales
In 10 years
53
Product-Market-Matrix (Ansoff)
Ansoff, Igor, Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5, Sep-Oct 1957, pp.113-124
Innovation Management / JD
54
Product-Market-Matrix (Ansoff)
Ansoff, Igor, Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5, Sep-Oct 1957, pp.113-124 Market Penetration (existing markets, existing products): Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service, with advertising or other promotions. Product Development (existing markets, new products): A firm with a market for its current products might embark on a strategy of developing other products catering to the same market. For example, McDonalds is always within the fast-food industry, but frequently markets new burgers. Frequently, when a firm creates new products, it can gain new customers for these products. Hence, new product development can be a crucial business development strategy for firms to stay competitive. Market Development (new markets, existing products): An established product in the marketplace can be tweaked or targeted to a different customer segment, as a strategy to earn more revenue for the firm. For example, Lucozade was first marketed for sick children and then rebranded to target athletes. This is a good example developing a new market for an existing product. Diversification (new markets, new products): Virgin Cola, Virgin Megastores, Virgin Airlines, Virgin Telecommunications are examples of new products created by the Virgin Group of UK, to leverage the Virgin brand. This resulted in the company entering new markets where it had no presence before.
Innovation Management / JD
55
Search-Field-Matrix
. . .
Precision manufacturing
Technological Strengths
Sensor technology
...
Security systems Office automation CIM Waste treatment Maintenance
...
System simulation
. . .
. . .
The search-field-matrix supports the process of identifying new business fields. It is formed by crossing in a matrix the technological or functional strengths with attractive market segments.
56
Innovation Management / JD
Search-Field-Matrix
Sensor technology
...
Security systems Office automation CIM Waste treatment Maintenance
a b a a b
System simulation
. . .
Precision manufacturing
Technological Strengths
. . .
. . .
A search-field is formed by one (or more) technologymarket-combination(s). It is supposed to be promising as it combines company strengths with attractive markets. A search-field is a potential new business line.
c d
Search-field a: Search-field b: Search-field c: Search-field d: Innovation Management / JD advanced warning systems flexible manufacturing systems special locking systems forecasting machine lifetimes 57
...
Innovation Management / JD
58
Innovation Management / JD
59
What is a Scenario?
A scenario is the depiction of a possible future situation and an outline of the development lines leading into the future
Today
Pathways into the future
Tomorrow
Innovation Management / JD
60
Scenarios
Innovation Management / JD
61
Innovation Management / JD
62
Topic
Development of most social or economic topics as well as markets and technologies are essentially determined by external (exogenous) factors.
Innovation Management / JD 63
Topic
The future situation of a topic is derived from the future projections of its impacting factors. Forecasts of the single factors are made.
Innovation Management / JD 64
Topic
For the single impacting factors alternative projections are possible and can be justified reasonably.
Innovation Management / JD 65
Topic
The forecasts generated independently are partly contradictory or inconsistent. A consistent picture of the future (scenario) has to be built up.
Innovation Management / JD 66
Impacting factors
From the scenario of the impacting environment a future picture of the topic is derived
Innovation Management / JD 67
Step 5
Step 2
Step 6
Step 3
Step 7
Writing the topic scenarios resp. deducting consequences for the task
Step 4
Step 8
Innovation Management / JD
68
Innovation Management / JD
69
Innovation Management / JD
70
Innovation Management / JD
71
Scenario 2
Scenario 3
Scenario 4
Strategy 1
Strategy 2 Strategy 3
Innovation Management / JD 72
Situation The R&D head of a consumer brand producer was not satisfied with the yearly composed R&D plan. Most proposals were extensions of ongoing projects or went into further details of well-known research fields. Scenarios should help to bring fresh ideas and topics into the planning procedure.
Innovation Management / JD
73
Innovation Management / JD
74
Innovation Management / JD
77
Innovation Management / JD
79
Sources of Ideas
Customers Market (competitors, fairs, other countries) Creative staff members Project team members Analysis of technologies Idea generation in special sessions or workshops with the help of creativity techniques
Innovation Management / JD
80
Sources of Ideas
IBM Institute for Business Value, CEO Study 2006
Employees Business partners Customers directly Consultants Competitors Associations Internal Sales & Service Units Internal R&D Academia Think-tanks Labs and/or other institutions
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
idea generation also takes place in special sessions or workshops with the help of creativity techniques
Innovation Management / JD
81
Creativity Definition
Creativity is the ability of overcoming old-established structures and modes of thinking and combining elements of knowledge and experience from various areas in such a way as to come up with novel/new and useful ideas. Creativity in companies is normally directed to solve problems.
Innovation Management / JD
82
Innovation Management / JD
83
10
11
Realization
Innovation Management / JD
85
Task
Result
Problem
Solution
Systematic Problem Solving Single Problem Solving Cycles are Being Worked Through Sequentially
n tio tra en nc Co
ide n W ratio plo ex
Topic
Deepening the information base, definition and specification of the new, subsequent task
In each cycle the following steps are run through: Definition and specification of the task Wide, creative search for solutions Selection and focusing on one (few) direction(s) for solution Deepening the information base Definition and specification of the subsequent task
Innovation Management / JD 87
Parallel and Subsequent Problem Solving Cycles Form the Innovation Process
X
Innovation Management / JD
88
1. Formation of a problem consciousness 2. Intensive problem solving effort 3. Relaxation and estrangement
Thats it!
Perception of a problem Identification with the problem State of knowledge Analyses Partial, but unsatisfactory solutions Frustration Urge for finding a convincing solution
Local distance Relation, no stress The subconsciousness is mulling the problem Subconscious comparisons Idea flash (in view of unrelated subjects or thoughts) Applicability of perceived principles comes into mind Presentiment of a solution object Vague, fleeting ideas
4. Idea flash
5. Follow-up
Precise formulation of the idea Working out details n Overcoming obstacles tio olu s Achieving acceptance Innovation Management / JD
89
Techniques of structured association Walt Disneys chairs Six-hats method Combination techniques Morphological tableau Morphological matrix Attribute listing
Innovation Management / JD
90
Techniques of structured association Walt Disneys chairs Six-hats method Combination techniques Morphological tableau Morphological matrix Attribute listing
Innovation Management / JD
91
3 4
Let your thoughts wander! (free wheeling) Try to produce as many ideas as possible!
Innovation Management / JD
Schliekarte
92
6 5 4 3 2 1
original ideas
10
15
20
25
Minutes
Brainwriting
Difficulties with Brainstorming: Not enough time for mulling an idea and thinking it over. Unskilled moderators. Inadequate minutes; ideas were not described precisely. The concept of Brainwriting tries to overcome these deficiencies: Ideas are written down by the generators. The written ideas are exchanged to stimulate the other participants. Different ways to exchange written ideas lead to several Brainwriting variants.
Innovation Management / JD
95
Ring-Exchange Technique
1. A 3-column form is drawn up. 2. Each participant writes down an idea at the top of each column 3. The forms are passed clockwise as soon as all participants have stated these ideas. 4. Each participant writes down an idea in each column, taking his righthand neighbors ideas as a basis fr association. If no association occurs, a new idea should be thought of. 5. The forms are passed again after all participants have filled out associated ideas, however after the five minute maximum time is up. 6. The exchange process is repeated five times.
Innovation Management / JD
96
Ring-Exchange Technique
Problem: New applications for self-adhesive luminous polymer films
School children on the road Labels For childrens handicraft in the Kindergarden Marking of medicine chests
Marking of bestsellers in a bookshop Price tags on used cars Safety jackets Price tags on special offers Safety exit signs
Marking of flashlights
Reminder
Treasure trove
Pick neighbors card, read, associate, and put all cards to the right.
Innovation Management / JD 98
Innovation Management / JD
99
Innovation Management / JD
100
Innovation Management / JD
101
Mindmapping - Concept
With Mindmapping strictly analytical thinking and linear rectangular mapping are replaced by a natural way of structuring. Both hemispheres of the brain are used simultaneously; pictorial-spatial thinking is activated; the capacity for remembering is strengthened. The mindmap follows the analogy of a slice through a tree. The topic forms the tree trunk, subtopics, aspects and ideas are divided into main branches, branches and twigs. The mindmap emerges from an alternation between the branches and twigs. It can be complemented and differentiated at any time afterwards.
Innovation Management / JD 102
Mindmapping - Proceeding
Material Plain white sheets of paper, DIN A4 landscape format Pencils in various colors, thick and fine Procedure Write down the topic as one word, symbol or picture in the middle of the page. Draw a circle or box around it. Write down your first thought as a keyword on a thick line (branch) top right (position at one oclock). The keyword has to be on top of the line and readable horizontally. Further thoughts are to be integrated dependent on whether they are associated with the already existing branch or describing a new main thought. For new main thoughts new main branches are established clockwise. Associations are added as finer lines (branches or twigs).
Innovation Management / JD 103
Mindmapping - Proceeding
Let your thoughts flow freely, also crazy thoughts are welcome. When the streaming of thoughts slows down one should break up and complement, correct, and restructure the map. Further aspects should be looked for at a later time. Further rules Preferably use only one single keyword or symbol per line. Insert pictures and symbols wherever possible. Draw your first creative maps rather with pencil and eraser. Use various colors. The lines of branches and twigs all have to be interconnected.
Innovation Management / JD
104
Visual Confrontation
Problem
Methods: Visual confrontation in groups Picture cards brainwriting Outdoor confrontation
Principals: 1. Estrangement and relaxation by means of pictures 2. Confrontation with picture elements
Solution
Innovation Management / JD 106
Innovation Management / JD
Traffic Light 1. Lights off/on 2. Sequential 3. Color Code 4. PC Tire 1. Continuous 2. Tread Pattern 3. Pressure 4. Inflate Switch 1. Push Bottom
110
4. Development of Ideas from Picture Elements Analyzing pictures with respect to inherent priciples Deriving ideas from principles by transferring them to the problem 5. Further Development of the Ideas Screening Combining Detailing
Morphological Tableau
1. Identification of the elements of the problem (parameters) to be listed in the first column 2. Search for partial solutions (options) for each parameter 3. Development of overall solutions by connecting elements through lines; each line representing a possible solution 4. Analysis and pinpointing of the optimum overall solution, e.g. B
P
P1 P2 P3 P4
P
P1 P2 P3 P4
P
P1 P2 P3 P4
P
P1 P2 P3 P4
Innovation Management / JD
113
Situation in problem solving: After intensive open idea generation in order to structure the material and to separate between essential and less conceptual ideas (especially in workshops) Weaknesses The solution stays within the established frame-work. Breakthrough-ideas can not be expected! Difficulty to maintain an overview over attractive solutions. Abstractive thinking required.
Innovation Management / JD 114
by hand, with spoon built-in measuring cup filtering paper heat insulating material tap porous porcelain addition of heat pumping unit
K1 boil = chemical reaction dispense = integrated unit filter = ceramic filter keep warm = insulating hood pour = tap Innovation Management / JD
Options
Little girl Turkish boy Tennis ball boy Grandpa and grandma Auntie Margot A dwarf Handicaped child The little people Caretaker .....
Friends
Pumuckl
.....
The evil
Big dog
.....
Fairy
Grandma
Gardener
.....
Big city
On the beach
.....
Cake/Coke is Switch into Gliding over a growing again another world moonlight ray
Noses are growing all over the body
.....
Danger
Deep fall
Arrested
.....
Happy-end
Big party
Balloon ride
.....
Fairytale A
Innovation Management / JD
Fairytale B
116
Innovation Management / JD
117
Innovation Management / JD
119
Innovation Management / JD
120
Innovation Management / JD
121
degree of maturity
ideas
time
Innovation Management / JD 123
For the final 3 ideas $17 600 were spent for information collection.
Innovation Management / JD 124
Innovation Management / JD
125
Innovation Management / JD
126
Types of Criteria
There exist criteria with different character. This has to be considered when applying them. Categorial criteria: Sorting into different categories, i.e.: Yes, no, incomplete, more information needed, dont know Gradual criteria: Judgements about fulfilment on a score scale Integral criteria: Calculation of economic metrics on the common basis of money, i.e.: ROI, ROA, NPV, break even
Innovation Management / JD
128
Suggestion B
Score Value
Suggestion C
Score Value
3 4 2 1 3 3 3 =
5 1 2 3 4 1 3 =
2 4 3 4 2 5 3 =
C provides the relative best suggestion. If the bound is set at 13 only suggestion C is followed up. Innovation Management / JD 130
4 2 1 5 3 0
II IV V I III VI
Innovation Management / JD
131
List of Ideas
Product Concepts
Innovation Management / JD 132
Evaluation of Ideas
The in-depth evaluation of ideas is to be based on criteria. A great variety of methods is available for evaluation: profiling technique, distribution of points, catalogue of pros and cons, advocating technique, cost benefit analysis, economic assessment From stage of stage
the number of ideas to be further processed is reduced, the information about the more promising ideas increases, more sophisticated evaluation methods are used, the number of involved people increases, the ideas are gradually concretized and elaborated (development of ideas into concepts).
Innovation Management / JD 133
Innovation Management / JD
135
Roles within the Workshop Group moderator(s) assistant and writer problem owner(s) expert(s)
Innovation Management / JD
136
Innovation Management / JD
138
Workshop Rules
Do not block! Listen to others, relate to others. No debate. We do not have to reach consensus on all topics. There is no right or wrong. Concentrate work, no side-talks! Humor is welcomed; share jokes with all. Short and precise statements. Stay with the agenda points; do not jump! Do not go down rat holes. Be open; unusual, brave ideas are welcome. Be tolerant, nobody is perfect. The role of the facilitator is to lead through the process, to achieve the aims of the session. Therefore he may shorten discussions, change procedure or take other actions. No Blackberries. No open laptops (besides facilitators). No dial-in option. Cell phones in silent mode only.
Innovation Management / JD
139
Actions of competitors
Innovation Management / JD
141
Idea Evaluation and Selection several steps standardized methods Established evaluators Project Suggestions
Innovation Management / JD
142
Project suggestion
Assessment of Project Suggestions (Pre-Projects) technical experiments Inquiry of requirements determining specifications rough project planning
Innovation Management / JD
143
Clustering
Frame of orientation
Preliminary check
strategy fit must-criteria assignments
Rejection: strategic guidelines not fulfilled Rejection: must-criteria not fulfilled Feedback to the idea author
Idea promoter
Budgets
Rejection: too high need of resources Rejection: not attractive Rejection: general success factors not met
Idea memory
Innovation Management / JD
144
Innovation Management / JD
145
Pre-Projects
Objectives: - Reducing information deficits and uncertainties - improved basis for decision - Getting ready for project work Projects on proof Gathering detailed information on technologies, markets, customers, sales channel, etc. Technical pre-tests Marketing strategy Determining the specifications Feasibility study Risk analysis
Innovation Management / JD 147
Pre-Projects
Business plan (rough time schedule) Suggestion for project team Decision by top management after presentation Setting-up innovation project (project management) Organizational forms: - none (often) - part of standardized process with a preliminary project leader - length: 2 - 6 months
Innovation Management / JD
148
Business Processes
Business processes begin and end at the customer.
firm customer
Main business processes: Marketing process Product innovation process Tender process Order processing process
Innovation Management / JD 152
Innovation Management / JD
154
Project 1
Project 2
Project 3
Innovation Management / JD
156
Departments
Procurement R&D Manufacturing Personnel Administration Marketing/Sales
Innovation Management / JD
157
Project end
Project proposals
Project final
Implementation
Project decision
Innovation Management / JD
158
159
Selected Publications
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Juergen Hauschildt: Innovationsmanagement (in German), Verlag Vahlen, 3rd Edition, Munich, 2004. Charles A. O-Reilly III and Michael L Tushman: The Ambidextrous Organization. Harvard Business Review, April 2004 Michael L. Porter: What is Strategy? Harvard Business Review, November-December 1996 David A. Garvin and Lynne C. Levesque: Emerging Business Opportunities at IBM (A). Harvard Business School. February 2005 Scott G. Isaksen, Mary C. Murdock, Roger L. Firestien, Donald J. Treffinger (eds.): Nurturing and Developing Creativity: The Emergence of a Discipline. Ablex Publishing Corporation, 1993 Keith Goffin and Rick Mitchell: Innovation Management. Palgrave Macmillan. 2005 Gifford Pinchot III: Intrapreneuring. Harper and Row Publishers. 1985 Robert G. Cooper: Winning at New Products, Basic Books, 3rd Edition, 2001. Clayton M. Christensen: The Innovators Dilemma, HarperBusiness Essentials, 1997 Geoffrey Moore: Crossing the Chasm, CollinsBusiness Essentials, 2002. Harvard Business Review on Innovation, Harvard Business School Press, 2001 Philip Kotler and Kevin Lane Kelle: Framework for Marketing Management, 3rd edition, Pearson Education, 2006 Arie de Geus: Planning as Learning, Harvard Business Review, 1988 Anthony Hodgson: Strategic Thinking with Scenarios, Discussion Paper, Decision Integrity Limited, 2003 Robert M. Grant: Contemporary Strategy Analysis, 6th Edition, Blackwell Publishing, Malden/MA, 2008 Robert Kaplan and David Norton: Strategy Maps, Harvard Business School Press, Boston/MA, 2004 Innovation Management / JD 161
Innovation for the world and mankind Innovation and corporate strategy, innovation as a competitive advantage for a corporation (e.g. product leadership, reputation as innovator) Innovation Management and formal organizations Innovation Management in the classical sense
Idea management Innovation project management
Innovation Management / JD
162
Thats it! Have a good time and see you at the exam! Thanks!
Innovation Management / JD
163