driving corporate innovation in africa: challenges …

DRIVING CORPORATE INNOVATION IN AFRICA:

CHALLENGES AND OPPORTUNITIES

Capacity upgrading session to Corporates and Tech-hub capacity (Virtual)

IntroductionsAEIP- Matthias Ploeg, Deputy Director- Carlos Hinojosa, Deputy Director- Tata Dinyuy, Consultant- Tatjana Guznajeva, Consultant- Sainabou Jallow, Consultant

CcHub- Obo Henshaw- Tomi Jaiyeola

Experts- Prof. Dr Johann Fueller, University of Innsbruck- Professor Dr. Katja Hutter, University of Innsbruck & Universität Saizburg- Mr. Bosun Tijani, Co-Creation HUB

Introduction to the AEIP

AEIP Update & Opportunities Ahead

Results so Far & Opportunities Ahead

• Pillar 1: Tech Hub Cooperation– Results: Close-knit first cohort of 20 tech hubs with 30 partnerships.

– Opportunities: Selection of Second Cohort of Tech Hubs this Fall; Upcoming Thematic Challenges

• Pillar 2: Technology Transfer

– Results: Community of Practice Launched; TTO Activity Mapped

– Opportunities: Join the Network of African & European TTOs; Further Training Opportunities

• Pillar 3: Capacity Upgrading

– Results: 5 high quality training modules developed and held

– Opportunities: Future training on EU funding opportunities for tech hubs; several future webinarsplanned

• Pillar 4: Wider Engagement

– Results: Community of 800+ Innovation Stakeholders

– Opportunities: Join the community to benefit from notification on fundingopportunities, partner matching and more.

The AEIPs capacity upgrading component

• Upgrade capacities to strengthen innovation ecosystems and EU-Africa cooperation

• Face-to-face training sessions, online training activities, and the development of training material online catalogue

• Gain access to all capacity upgrading material & modules at: https://africaeurope-innovationpartnership.net/

Module 2

Module 1

Module

3

Module

4

Module

5

Capacity

Upgrading

Module 5: Driving corporate innovation – challenges and opportunities

• Support tech hubs and corporate firms in building a scalable framework for the application of corporation innovation in driving enterprise performance and sustainability.

• Driving a shared understanding and equity in an innovation agenda within the participating organisations (i.e. tech hubs and corporates)

• Establishing structure and processes for the implementation and management of corporate innovation

• Evaluating the return on investment to strengthen the impact of corporate innovation on businesses’ bottom line

• Improve the understanding on how tech hubs can strengthen their portfolio of activities in support of corporate innovation

We invite you to engage with the Africa-Europe Innovation Partnership through:

- Website: https://africaeurope-innovationpartnership.net/

- Twitter: https://twitter.com/AfricaInco (#AEIP4 #TenableTech)

- Facebook: https://www.facebook.com/AfricaEuropeInnovation

- LinkedIn Page: https://www.linkedin.com/groups/12292388/\

Or contact the AEIP team directly: [email protected]

Introduction to the CCHUB

About CcHUB:

● Co-creation Hub (CcHUB) is an innovation centre dedicated to

accelerating the application of social capital and technology for economic

prosperity on the continent.

indirect jobs have been

created by portfolio companies through their

value chain

in external funding

attracted by our startups

$61M+

$1m

+invested in directly

startups by CcHUB

1,000+

35k+

650+startups can trace their

roots to Co-Creation

Hub via our dierent

programs/ intervention

community

members online and on-site

81k+

followers

globally through our social media

outreach

20m+

individuals have

worked in our coworking

community space

7,300

+direct jobs have been

created by our

portfolio companies

7,300+

direct jobs created by our portfolio companies

Presence in Lagos, Abuja, Ijebu-ode, Kigali and

Nairobi

indirect jobs created by portfolio companies through their value

chain

individuals that have worked out of our

spaces at some point in their

entrepreneurial journey.

35k+ 1,000+

Some of the prominent startups we have worked with include:

Learning outcomes of the on-line workshop

Expected learning outcomes

Driving understanding and equity in an innovation agenda within organisations

Establishing structures and processes for implementation of corporate innovation

Evaluating the return on investment of support for corporate innovation

How to tailor tech-hub service offering to corporates

Keynote 1:

Driving shared understanding and equity in an innovation

agenda within your organization

Professor Dr Johann Füller Chair of Innovation & Entrepreneurship and also the Chief Executive Officer of

HYVE

“Today no one needs to be convinced that innovation is important – intense competition, along with fast changing markets and technologies, has made sure of that.

HOW TO INNOVATE IS THE KEY QUESTION” (Drucker 1988 p.149).

Corporate Innovation: How to Drive Company Performance through

Innovation

Prof. Dr. Johann Füller, September 2020

© 2000 - 2018 HYVE AG 3

How to become an Entrepreneur – Experience Based Learning

@ HYVE

© 2000 - 2018 HYVE AG 5

About HYVE

Hi, we are the Innovation Company

We bring innovations to the next level

and help our clients to become better

innovators!From products to smart products, from services to AI-based innovations,

from B2C and B2B innovations to internal innovation management.

© 2000 - 2018 HYVE AG 6

Smart Home innovation

About HYVE

We help our clients create successful innovations from start to finish

Invisible for Black & White Deo Thermomix ecosystem: digital experience Marine Engine 175D Service design for digital innovations

Professional SensoDryer E-mobility disruption

Paketbutler

Splice Lock

Wealth management solution

Nivea Vorwerk MAN BMW

Braun Lilium

Telekom

EnBW

HypoVereinsBank

Hearing Implant

MED-EL

Physical & digital coffee experience design

Philips

B2B innovation

Zeiss

© 2000 - 2018 HYVE AG 7

About HYVE

We help our Clients to become better Innovators in the Digital Era!

Start-up

Building

Software

Engineering &

AI-Analytics

Smart Product

Design &

Development

Crowdsourcing &

Customer

Centricity

Organizational

Empowerment &

Labs

Innovation

Management

Innovation

Strategy

HYVE

OFFERING

Innovation Readiness

Assessment

Search Fields & Innovation

Roadmap

Innovation Ecosystems Design -

Role of Startups

Innovation Logic: Exploitation/

Exploration; Open vs. Closed

Innovation Process Set-up

Innovation Portfolio

Management

Decision Structures

Roles and Responsibilities

Workflows

Innovation Tools

Training

Customer Needs Mining

Trend Receiver Studies

Idea Contests

Use Case Generation

Concept Testing

A/B Testing A/BInnovation Academy

Blended Learning

Hackathons/ Innovation Days

Innovation Labs

Change Management

Innovation Challenges

Front- & Backend

AI-Analytics

Web-Applications Development

Digital Service Blueprints

Wireframes and Mockups

Feature Sprints

UX/UI

Ideation and Design

Concepts

Tech & Solution Scouting

Technical Feasibility

Studies

Prototypes

Batch 1 &

Sourcing Partners

Start-up as a Service

Opportunity Identification

Business Case Validation

MVP Building

Business Set Up and

Joint Steering

Team Search and Building

Innovation Software

Implementation

Evolution of Corporate Innovation

© 2000 - 2018 HYVE AG 9

Strategy

Resources

Inn

ov

atio

n

Perfo

rman

ce

Process

Methods & Communication

Organization

Culture & People

House of Innovation

© 2000 - 2018 HYVE AG 10

Different Innovation Games

Core Business Adjacent Business New Business

Efficiency

Innovation

Radical

Innovation

Incremental

Innovation

Continous

Improvement

Process

(CIP)

Open

Innovation

& Co-Creation

Incubation/

Acceleration

Digital Innovation

Business

Model

InnovationClassical

Innovation

Management

Different Innovation Management LogicsDifferent Types of Innovation

Core Business Adjacent Business New Business

© 2000 - 2018 HYVE AG 11

Sweet-Spot of Innovation

User-Centric Design

Feasible Implementation Sustainable Business

Desirability

ViabilityFeasibility

© 2000 - 2018 HYVE AG 12

The New Normal of Innovation

How to Innovate “BETTER”

From Closed Innovation to Remote Innovation Ecosystems

Centralized,

inward-looking

innovation

Externally focused,

collaborative

innovation

Globally dispersed

cross-organizational

remote innovation

Closed Innovation Open Innovation Remote Innovation

EcosystemsUser-centric Innovation

Active user

integration in the

innovation process

User Centricity and Co-Creation

Centralized,

inward-looking

innovation

Closed Innovation User-centric Innovation

Active user

integration in the

innovation process

© 2000 - 2018 HYVE AG 14

Co-Creation @ Nivea

Invisible for Black & White

Source: nivea.de

© 2000 - 2018 HYVE AG 15

How to get deodorant off of black shirts?

[…]It looks bad, so what’s a quick way to

remove it if I’m going out?

Don't you hate it when you notice

a deodorant stain right as you are

leaving the house? Use a baby

wipe and its all gone!

NetnographyInsights©

Nivea Invisible for Black & White

User remedies against stains

Stain manual

Community collection & selection

Community observation, software-aided

data gathering & analysis of consumer

discussions

Identification

of consumer insights

Task:

What consumer needs can be

found in social media regarding

deodorants? How can this be

translated into ideas? Which

ideas are the most promising

ones?

© 2000 - 2018 HYVE AG 16

Co-Creation


Translation of needs into ideas /

concepts

Evaluation of visualized ideas and

selection according to developers‘ index.

Data analysis: rankings based on

different criteria (developers‘

index, brand fit, novelty,

originality etc.)

© 2000 - 2018 HYVE AG 17

Cross Industry Collaboration


© 2000 - 2018 HYVE AG 18

How We Innovate

From Closed to User Centric Innovation

Closed Innovation Process – “The lab is our world”

Open Innovation Process – “The world is our lab”

Company

Consumer

Company

Consumer

Internal, R&D driven innovation process

User-centric co-creation process

Insights &

Opportunities

Ideas &

Technology

Concepts &

Prototypes

Product

Development

Market

Launch

© 2000 - 2018 HYVE AG 19

Further Information on the Black and White Case

Open Innovation and Crowdsourcing

Externally focused,

collaborative

innovation

Open InnovationUser-centric Innovation

Active user

integration in the

innovation process

© 2000 - 2018 HYVE AG 21

Acquisition

Spin outDeinvestment

Joint business

development

R&D servicesLicensing out

Spin In Venturing

MARKET

CORPORATE

BOUNDARIES

IDEAS

NEW MARKET

CORPORATE

BOUNDARIES

Corporate Innovation is Changing

Open innovation becomes the dominating approach

CROWDSOURCING

© 2000 - 2018 HYVE AG 22

Idea

Gene-

rationCorp.

Labs

Generation of

ideas

Selection &

Concept

Techn.

development

Market

launch

Openness

Innovation

process

Supplier / customer

integration

External

cooperationsExternal

communities

Cross-

Sector

Along the

value chain

Within

Sector /

Division

Within

BU

Idea

Management

IPR / Standard.

Sales & Marketing

Technology

e-Broker

Open

expert

networks

Spin-in

Spin-

out

Venture

Capital

Research & Development

Open Innovation @ SIEMENS

© 2000 - 2018 HYVE AG 23

Enterprise Search

for Technologies

Internal

E-broker & Scouting

TechnoWeb2.0

Open Idea Contests

External

TechnologiesIdeas

Collaboration of

creative masses

Identification of the

expert(s)

▪ In-source external knowledge

▪ Foster your ecosystem

▪ Gain market transparency

▪ Leverage internal knowledge

▪ Engage your employees

▪ Create transparency

Culture Change


00_0I_E-broker_Master.ppt

© 2000 - 2018 HYVE AG 24

Osram LED emotionalize

your light – Idea Contest

Siemens Sustainability

Idea Contest

Siemens India Ltd.

Siemens Idea

Contest Mobility

Siemens Smart Grid Innovation

Contest:

Phase I + II

Siemens Student Award

Middle-East

Siemens Student

Award Brazil

2010

Siemens Student Award Germany

2010

2010

2009

2011

2011

2011

2012

2013

Siemens

Scouting Germany

2013

Siemens Student Award,

Middle-East II

2013Siemens Health Care

Scouting Platform, USA

2013

Siemens Germany

Data Driven Services


© 2000 - 2018 HYVE AG 26

Challenges companies are facing when switching to open innovation paradigm

Key issues:

• Suitability of task for outsourcing

• Trade-off internal problem solving vs. external (what should and what should not

be outsourced?)

• Framing and communicating the problem

• Domain knowledge available to “brief” the crowd

• Measurement of success / evaluation of outcome

• Breaking down the big challenge in problems to be addressed by the crowd

• Integrating the acquired external solution information again

• Loss of internal know-how and competences in the long run

• Confidentiality when outsourcing key innovation tasks

• Legal conditions

© 2000 - 2018 HYVE AG 27

Globaly Dispersed

42% DACH

12% USA

Clear interface guides

participants through the

different phases of the formats

Communicate through your

brand or use a secret HYVE

Crowd campaign

Collaboration on ideas,

concepts and use cases

Community members share

personal information that

allows better targeting

Evaluation of submission

according to different criteria

Get insights beyond singular

ideas, reports and analyses

CROSS-

FUNCTIONAL

25%STUDENTS

6%MANAGERS

6%ENGINEERS

11%DESIGNERS

Diverse Community

> 8.500 Innovators

12% ASIA

34% Other

Crowdsourcing as a Service: Co-create and test concepts together with the

CROWD www.hyvecrowd.com

http://www.hyvecrowd.com/

© 2000 - 2018 HYVE AG 29

Participants from different disciplines work together to prototype solutions to companies‘ innovation challenges.

Crowdsourcing as a Service

© 2000 - 2018 HYVE AG 30

1

2

3

4

5

monetaryrewards

show ideas

gain knowledge

innovationinterest

dissatisfaction

curiosity

reward

need

curiosity

Impact of Personal Characteristics

on Motivations

Expertise

Exploratory

Behavior

NEED• Dissatisfied

with current

offering

REWARD• Innovation as

work

• High domain

specific skills

INTRINSIC• Tinkerer

• Innovation as

hobby

CURIOSITY• novelty

seeking

• early majority

Low High

Low

Hig

h

27.8 % 26 %

26.3 % 19.9 %

Design Principles

Tasks

Which tasks should be

offered?

Provide various tasks: e.g. idea generation; evaluation; modification at

different levels of complexity. Support different roles such as: designer,

evaluator, networker.

Intensity and Extent

How often want

consumers be engaged?

Spur frequent and ongoing engagement.

Ensure current and high quality content, providing reason to

continuously return and contribute to the co-creation project.

Update participants about evoked resonance/ actions visitors, likes,

comments

Tools and multimedia-

rich environment

Which role plays the

context?

Provide supportive and empowering contexts

Gamification and powerful push engagement

Inspire with media-rich content

Reduce cognitive effort for participation

Interaction among

participants

How to create a lively

dialogue?:

Encourage intense interaction among participants and company

representatives

Build a community

Incentives

Are monetary rewards

important?:

Give direct and honest feedback

Offer monetary prizes related to performance (quality and/or quantity

of contributions)

Additional non cash prizes may serve as special form of recognition

Provide clear and transparent rules, especially regarding IP rights

Partner

With whom want

consumers interact?

Interaction with well-known brands and producers

Allow direct interaction with innovation team and developers

Source: Füller Johann (2010), “Refining virtual co-

creation from a consumer perspective”,

California management review 52 (2), 98-122

Who Participates and What do they Expect?

Innovation in the Digital Era

© 2000 - 2018 HYVE AG 32

Impact of Technology and Innovation on Economic Growth

„

“

Recently, radical technology

change started to evolve faster

than the rate society can think

about it. We should therefore

strengthen our abilities to adopt

to the changes more quickly.

CEO Google Moonshots

Astro Teller

S&P1 500 Development

1 Standard & Poors 500, commonly known as S&P 500, is an American stock index

Source: We haven’t anything seen yet: https://www.youtube.com/watch?v=AZ5ePL36BbU

2017197019001800

Steam

power

Electronic &

IT systems

Electrical

energy

Cyber-Physical

Systems

Connected Assets

& Consumers

Speed of disruptions is increasing

?

https://www.youtube.com/watch?v=AZ5ePL36BbU

© 2000 - 2018 HYVE AG 33

What We Innovate

Everything that CAN be … WILL be DIGITIZEDP

ote

nti

al

Level of Change

EfficiencyIncremental Radical

Digital

Product +

Process +

Business

Model

Digital

Process +

Decisions

IoT

Big Data

Digital

Products &

Services

© 2000 - 2018 HYVE AG 34

Was bedeuted Digital? Beispiel Duschkopf

DIGITALAnalog

© 2000 - 2018 HYVE AG 35

Agriculture

Precision Farming

35https://www.deere.com/en/technology-products/precision-ag-technology/

© 2000 - 2018 HYVE AG 36

GAMING APP

CONTROLLER

THE ICAROS ACTIVE VR TECHNOLOGY

WILL REVOLUTIONIZE THE WAY PEOPLE

WORKOUT AND PLAY

© 2000 - 2018 HYVE AG 37

https://www.icaros.com/experiences/exper

iences-detail/steroids/https://www.icaros.com/experiences/experien

ces-detail/icarace/

https://www.icaros.com/experiences/experiences-

detail/engadin/

https://www.icaros.com/experiences/experiences-detail/steroids/

https://www.icaros.com/experiences/experiences-detail/icarace/

https://www.icaros.com/experiences/experiences-detail/engadin/

© 2000 - 2018 HYVE AG 38

ICAROS ACTIVE VIRTUAL REALITY

ICAROS SMART PRODUCT PLATFORM

Business ModelSoftware &

Data

Services

Process

Stakeholder &

People

Hardware &

Technology

Customer

& User

Experience

Comparative

Analytics

Software Customization

Online Multiplayer

Strategic

Partnerships

In-Game Purchases

Product Design

Mechanical & Electronical

Engineering

Product-Software

Interaction

Unique Experiences

Virtual Reality

Social Competition

System Integration

Customized Training

Classes

Freemium

Online Platform

Key Account

Management

Hardware Revenues

User Guidance &

Instructions

Global Live

Interaction

Shareholder Mgmt

Global Platform

Virtual Reality

Applications

Virtual Avatar

Body Upgrade

Software Revenues

© 2000 - 2018 HYVE AG 3939Matzler et al. (2016) Digital Disruption – Wie Sie Ihr Unternehmen auf das Digitale Zeitalter vorbereiten, S. 23.

Digital World

Real World

6. Layer

New customer value,

new busienss logic

5. Layer

Digital Services

4. Layer

Analytic

2. Layer

Sensors and

actuators

1. Layer

Physical product

or process

3. Layer

Connectivity

SMART Innovations

combine the

Digital World

with the

Real World

© 2000 - 2018 HYVE AG 40

Startups Dominate the Digitial World

Startups are increasingly disrupting markets & challenging established companies

“You’re never too big to fail”

© 2000 - 2018 HYVE AG 41

Since year 2000, 52% of Fortune 500 companies disappeared

© 2000 - 2018 HYVE AG 42

Eric Ries

Entrepreneur & Author

„The only way to win is to learn

faster than anyone else“

Innovation in Ecosystems

Externally focused,

collaborative

innovation

Network-centric,

cross-organized

innovation

Open Innovation Remote Innovation

Ecosystems

© 2000 - 2018 HYVE AG 44

Corporates can work

LIKEStartups

Corporates can work

WITHStartups

How Corporates can benefit from the Digital Era

While corporations are sitting around thinking about ideas, startups are taking them to market.

© 2000 - 2018 HYVE AG 45

How We Innovate

Know-How

Money

Access

Facilities

Labor

From Open Innovation to Innovation Ecosystems – Agile Teams

Customers

Startups

User

Suppliers

EmployeesCross

Industry

Universities & R&D

Institutions

Expert Crowd Communities

CompetitionCORE

TEAM

© 2000 - 2018 HYVE AG 46

HYVE Innovation Lab

Digital innovation often occurs in lab and intrapreneur structures by applying

agile startup thinking

© 2000 - 2018 HYVE AG 47

Innovation in increasingly digital times

End-to-end and guided process

setup

• Identification and Selection of

relevant topics and tasks

• Application process and selection of

Lab-participants

• Stakeholder management

• Identification and selection of

relevant partner

• Discussion of communication and

change related topics

1

2 - 4 w e e k s

1 1 1

learn

• Identification, discussion, and

selection of relevant insights:

• Customer & user

• Technology

• Market and competitors

• Society and Trends

• Evaluation and priorization of needs

• Visualization of insights

• Development of Need Cards

2 - 8 w e e k s

ideate

• Ideation and enrichment:

• Products- and services

• Processes

• Business logic

• Visualization of ideas

• Development of user journeys

• Concept /Business Model Testing &

Feedback

• Technical Feasibility

Quick Check

2 - 8 w e e k s

prototype

• Development of digital prototype

• Wireframes

• MockUps

• Clickable Dummies

• 3D Renderings; 3D Printing

• Model development

• Constant User Testing

• Realization planning

4 - 1 2 w e e k s

DATA PERSPECTIVE (Needs, Validation, Testing etc.)

DIGITAL PERSPECTIVE (Services, Apps, Software, Digital Prototyping etc.)

DESIGN PERSPECTIVE (Insight Visualization, UX Design, Industrial Design etc.)

ENGINEERING & PROTOTYPING (Technical Feasibility, digital & physical Prototyping)

PROJECT MANAGEMENT / PMO

BUSINESS MODELLING (Markt Quick Check; Business Canvas, Business Cases etc.)

© 2000 - 2018 HYVE AG 48

Common principles of today’s innovation approaches

General principles of today’s

innovation processes

1. User-centricity / empathy.

2. (Low-fidelity) Prototyping and

experimentation firs

3. Hypotheses-led iterative

process

4. Refinement based on empirical

data and validation

Design

Thinking

Lean

Startup

SCRUM

Innovation Lab – Examples, Cases

© 2000 - 2018 HYVE AG 51

H V B I n n o v a t i o n L a b

http://www.it-finanzmagazin.de/hvb-startet-innovation-lab-und-wird-als-vc-geber-fuer-fintechs-aktiv-schon-45-mio-euro-investiert-28726/

The HVB Lab enabled by HYVE allowed us to

come up with top-quality ideas that were

implemented in the company. The lab is a great

opportunity to face the digital transformation

and to rethink existing business models in a

creative environment. What has started as an

experiment has turned out to be a full success.

Dr. Theodor WeimerCEO HVB

Digitale Innovationen für die Finanzbranche

© 2000 - 2018 HYVE AG 52

Druck

Luftdruck

Flüssigkeit Partikel

Feuchtigkeit

Vodafone Graffiti Detector

© 2000 - 2018 HYVE AG 53

Research: Innovation Labs from a Participant‘s Perspective

• Diverse, self-motivated, and entrepreneurial group of participants

• Sufficient top management support and resources

• Intense dialogue with participants to manage expectations

• Consider an ecosystem of innovators

• Facilitate teams in the beginning with high intensity

• Upfront preparation concerning facilitation in regard to intensity of

guidance, roles, skills, and how to manage unexpected outcomes

• Provide the necessary resources to transform the generated ideas into

feasible business

• Surrounding conditions are required for returning participants to further

advance their careers and mindsets

PRE LAB

LAB

POST LAB

The Future of Innovation Management in

Times of Social Distancing

© 2000 - 2018 HYVE AG 55

Resillience – The art to

handle the unexpected situation

and successfully adapt

https://www.veronikalangguth.de/3151/stress-in-der-zukunft-4-0-wie-die-digitalisierung-hilft-unsere-resilienz-zu-trainieren-2/

© 2000 - 2018 HYVE AG 57

HYVE’s digital toolbox for innovation

From strategy & insights to co-creation, testing & long-term innovation programs

STRATEGY

in-manas

Use a digitalized strategy process with proven

analytical, conceptual and executive tools to

guide your strategy efforts.

INNOVATION PROCESS

HYPE

Organize your in innovation process with the

leading innovation management solution to

ignite the innovative power of your employees,

users and partners.

CO-CREATION

Remote Workshops

Collaborate in a digital space guided by expert

workshop facilitators to create ideas/concepts,

build new business models, synthesize, align

stakeholders or make decisions.

INSIGHTS & TESTING

Online Research Community & AI-based

Emotion Recognition

Identify user needs and innovation opportunities

or gain quick turnaround feedback on any

concept. Understand users’ emotions with our

AI-based emotion recognition.

IDEATION & VALIDATION

HYVE Crowd

Innovate with 8.500+ users and experts to

generate hundreds of fresh ideas, find the most

appealing use cases or validate any idea over

night.

INNOVATION PROGRAMS

Joolia

Rely on proven innovation methods from an

extensive repository to create tailored

innovation programs such as Design Sprints or

Innovation Labs in no time.

© 2000 - 2018 HYVE AG 5959

The era of Social Distancing requires to rethink your innovation management!

R E M O T E I N N O V AT I O N E C O S Y S T E M S

HOW TO ORCHESTRATE AN INNOVATIVE ORGANIZATION?

HOW TO COME UP WITH AN INNOVATIVE

SOLUTION?

HOW TO DEAL WITH INNOVATION?

INNOVATION

TASKS

INNOVATION

PROCESS

INNOVATION

STRATEGY

DOING

CREATING

THINKING

Hyve AG, Publikationsbewilligung

© 2000 - 2018 HYVE AG 60

2

2,5

3

3,5

4

4,5

Organizationdigital readiness

Missinginnovation culture

Budget restriction

Focus daily business

Legal boundaries

Missing leadership buy-in

Missing technological skills

Missing clarity

Missing understanding

Organizationalresponse capacity

Mean mgmt. Mean employees Mean lower mgmt.

Mean middle mgmt. Mean upper mgmt.

Mean mgmt. Mean employees Mean lower mgmt.

Mean middle mgmt. Mean upper mgmt.

Ready or Not:

Managers’ and Employees’ Different

Perceptions of Digital Readiness and their

Impact on Transformation Management

Dimensions

Level

of analysis

Individual Difference Factors Structural Factors

Individual

level

Segment 1: Individual beliefs

Perceived individual digital readiness

Attitude towards digital transformation

Segment 2: Competences

Digital knowhow

Digital skills

Organizational

level

Segment 3: Shared beliefs

Digital empowerment

Digital involvement

Segment 4: Capabilities

Perceived organizational digital readiness

Innovation barriers and reaction speed

Gfrerrer, Hutter, Füller, Ströhle – submitted to CMR

2

2,5

3

3,5

4

4,5

Individual digitalreadiness(Individual

beliefs)

Attitude towardsdigital

transformation(Individual

beliefs)

Digitalknowledge(Individual

competences)

Digital skills(Individual

competences)

Digitalempowerment

(Shared beliefs)

Digitalinvolvement

(Shared beliefs)

© 2000 - 2018 HYVE AG 61

We explore and empower the New!

Versatility

Creative Spirit Passion

Thoughtfulness Community

Bravery HYVE Mission

We are inventors & explorers of an

era in which innovation has to be

rethought. Together with our

customers, we create revolutionary

solutions that we need and love. In a

connected world, we make companies

better innovators to meet the

challenges of the decade ahead and

actively shape the future.

THX!

Whats next in innovation?

Prof. Dr. Johann Füller

© 2000 - 2018 HYVE AG 63

The New Normal of Innovation

How to Innovate “BETTER”

From Closed Innovation to Smart Open Innovation Ecosystem

Centralized,

inward-looking

innovation

Externally focused,

collaborative

innovation

Network-centric,

cross-organized

innovation

Closed Innovation Open Innovation Innovation EcosystemsUser-centric Innovation

Active user

integration in the

innovation process

Innovation Automation

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AI-Study 2019

Results of a Scientific Study

© 2000 - 2018 HYVE AG 65

AI Study

© 2000 - 2018 HYVE AG 66

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Contact

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Keynote 2:

Creating value for our Innovation Stakeholders

Professor Dr. Katja Hutter, University of Innsbruck & UniversitätSaizburg

What is our value proposition to our customers?

Innovation & Entrepreneurship

University of Innsbruck

[email protected]

Senior Research Associate | Hyve AG

Schellingstraße 45 | 80799 Munich

[email protected]

Laboratory for Innovation Science (LISH)

Crowd Innovation Lab | Harvard University

175 N. Harvard Street | Boston, MA 02134

Univ.-Prof. Dr. Katja Hutter

Innsbruck, September 2020

What is our value proposition to our customers?

Always be thinking about how you can create value for your company using innovation.


Create Economic Value Transform Company Culture

THE VALUE PROPOSITION CANVASHow to create value for your customers?

DESCRIBES THE BENEFITS CUSTOMERS CAN EXPECT FROM YOUR PRODUCTS & SERVICES

What is a Value Proposition?

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1. Relevancy.

Explain how your product solves customers’ problems or improves their situation.

2. Quantified value.

Deliver specific benefits.

3. Differentiation.

Tell the ideal customer why they should buy from you and not from the

competition.

What is a Value Proposition?

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An innovation, service, or feature intended to make your offerings attractive to customers („why should I buy…?“)

Good value propositions are:

- Simple- Unique- Memorable- Personal

Value proposition design is a central issue in modern marketing & innovation

It plays crucial role in any business model

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DO YOU KNOW WHO YOUR CUSTOMERS ARE?

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… CAN BE USED TO GIVE A CUSTOMER SEGMENT A FACE AND NAME AND MAKE IT EASIER TO STEP INTO THE SHOES OF THE CUSTOMER.

What is a Persona Canvas?

https://designabetterbusiness.com/2016/06/01/three-powerful-ways-use-persona-canvas/

Customer Segment

Customer Jobs:

1. What are functional jobs/tasks to solve for the customer?

2. What are social jobs/tasks to solve for the customer?

3. What are emotional jobs to solve for the customer?

-Power-Status-Sustainabilitye.g. travel without ecological footprint

-Problem solving issuee.g. get to work by car but stuck in traffic(time constraints, need for arrival)

-Security -Well-beinge.g. travel safe and comfortable

21 3

12

Customer Jobs: Trigger Questions

1. What is the one thing that your customers could not live without accomplishing? What are the stepping stones that could help your customer achieve the job?

2. What are the different contexts that your customers might be in? How do their activities and goals change depending on these different contexts?

3. What does your customer need to accomplish that involves interactions with others?

4. What tasks are your customer trying to perform in their work or personal life? What functional problems are your customers trying to solve?

5. Are there problems that you think customers have that they may not even be aware of?

6. What emotional needs are your customers trying to satisfy? What jobs, if completed, would give the user a sense of self-satisfaction?

7. How does your customer want to be perceived by others? What can your customer do to help themselves be perceived in that way?

8. How does your customer want to feel? What does your customer need to do to feel that way?

9. Track your customer‘s interaction with a product or service throughout its lifespan. What supporting jobs surface throughout this life cycle? Does the user switch roles throughout the process?

13https://divergentthinking.design/04-value-proposition-design-workshop

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Customer Segment

Pains:

• What are main difficulties encountering the customer? (e.g. lacking functions of a product)

• Where does the customer expect more? (e.g. high costs, takes too much time & time consuming)

• What makes the customer feel uncomfortable? What risks does he/she fear? (e.g. unfulfilled social desires)

Customer Pains: Trigger Questions

1. How do your customers define too costly? Takes a lot of time, costs too much money, or requires substantial efforts?

2. What makes your customers feel bad? What are their frustrations, annoyances or things that give them a headache?

3. How are current value propositions under performing for your customers? Which features are they missing? Are there performance issues that annoy them or malfunctions they cite?

4. What are the main difficulties and challenges your customers encounter? Do they understand how things work, have difficulties getting certain things done, or resist particular jobs for specific reasons?

5. What negative social consequences do your customers encounter or fear? Are they afraid of a loss of face, power, trust or status?

6. What risks do your customers fear? Are they afraid of financial, social or technical risks? Or are they asking themselves what could go wrong?

7. What is keeping your customers awake at night? What are their big issues, concerns or worries?

8. What common mistakes do your customers make? Are they using a solution the wrong way?

9. What barriers are keeping your customers from adopting a value proposition? Are there upfront investment costs, a steep learning curve, or other obstacles?


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Customer Segment

Gains:

• What can be reduced/saved? (e.g. reduce time, money or effort)

• What does contribute to a solution for a given problem?

• What are customer needs & desires?

• What does the customer value? (e.g. functional, symbolic, hedonic, social)

Customer Gains: Trigger Questions

1. What savings would make your customers happy? Which savings in terms of time, money, and effort would they value?

2. What quality levels do they expect and what would they wish for more or less of?

3. How do current value propositions delight your customers? What specific features do they enjoy? What performances and quality do they expect?

4. What would make your customers’ jobs or lives easier? Could there be a flatter learning curve, more services, or lower costs of ownership?

5. What positive social consequences do your customers desire? What makes them look good? What increases their power or their status?

6. What are customers looking for most? Are they searching for good design, guarantees, specific or more features?

7. What do customers dream about? What do they aspire to achieve or what would be a big relief for them?

8. How do your customers measures success of failure? How do they gauge performance or cost?

9. What would increase your customers’ likelihood of adopting a value proposition? Do they desire lower cost, less investment, lower risk or better quality?


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How to define your Value Proposition

https://divergentthinking.design/04-value-proposition-design-workshop

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How to define your Customer Profile


Products & Services: Which products/ services … do I offer solving a job to be done for the customer? … am I offering satisfying fulfilling basic needs of my customers? … picture an added value for my customer as a buyer/co-creator/

distributor?

Pain Reliever

Gain Creator

Products & Services

Value Proposition

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Pain Reliever:How can I … terminate challenges and difficulties of my customer?… offer improved solutions as an established provider?… avoid negative impacts on by customers‘ operations?

Gain Creator:How can I ease my customers‘ lives? Whereby can I satisfy customer needs? How can I provide a fit between my offering and customer demands?

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How to define your Value Proposition


Customer Jobs

Gains

PainsPain Reliever

Gain Creator

Products & Services

Value Proposition Customer Segment

22

FIT

How to create value for your customers?

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Consistent colour coding

Combine visuals and wording

Find people with customer knowledge

Trying to alleviate every pain and target every gain, but: select a limited set

Mixing present and future (distinguish through colours or different maps)

One map per value proposition


Dos and Don‘ts for Value Proposition Canvas

EXAMPLE

Customer Jobs

Gains

PainsPain Reliever

Gain Creator

Products & Services

Value Proposition Customer Segment

25

FIT

How to create value for your customers?

Story“We visited a foreign town and tried to get a taxi. The situation couldn’t

have been more complicated: far and wide no taxi! Additionally we had any

telephone number of a taxi centre, little cash and no idea where they

exactly were.”Niclaus Mewes and Sven Külper

https://pl.mytaxi.com/en/ofertypracy2/about-mytaxi.html 26

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- Functional job: mobilitywithin urban cities

- Your driver knows exactly where to go

- Payment is completely cashless

- One tap and a car comes directly to you

- Phone call to order taxi or looking for taxiranks on streets

- No reference for a taxi driver- Paying in cash

- Increased usability via smartphone app- Ease in customer journey: request – ride – pay- Convenience- Transparency

Story

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- Functional job: mobility within urban cities

- Your driver knows exactly where to go

- Payment is completely cashless

- One tap and a car comes directly to you

- Phone call to order taxi or looking for taxi ranks on streets

- No reference for a taxi driver- Paying in cash

- Increased usability via smartphone app- Ease in customer journey: request – ride – pay - Convenience- Transparency

- Mobility within urban cities- Swift alternative to public

transport- Particular benefit when

visiting unknown cities - Mediate people being flexible

in offering driving services and people seeking flexible driving services

- Overcome challenge of customer being unfamiliar with local public transport in unkown city

- Improve request route for calling a cab- Avoid unpleasant taxi rides through

ranking system of drivers

- Easy access and usability via app - Interconnectedness with other payment apps such as PayPal - Fit between flexibility of (part-time) drivers not being bound

to one job and demand of further urban mobility offerings

Story

Can you specify what it takes to

shape great value propositions

for your customers?

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HOW DOES YOUR VALUE PROPOSITION LOOK LIKE?

For (target customers)

• who are dissatisfied with (the current alternative)

• our product is a (new product)

• that provides (key problem-solving capability)

• unlike (the product alternative).

EXAMPLES of great value propositions

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Trello

32

Evernote

The value propositiondesigner – let‘s try ...

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CUSTOMER SEGMENTFor whom are you creating value? Who are your most important customers? Who are the early adopters?

1

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CUSTOMER PAINS/PROBLEMSBrainstorm to identify your customers’ problems and pains. What does your customer find too costly(time, money)? What makes your customer feel bad (frustrations)? What’s keeping your customerawake at night (big issues, concerns, worries)? What common mistakes does your customer make(usage mistakes)? What risks does your customer fear (financial, social, technical, change)? What arethe main challenges and difficulties your customer encounters (trouble understanding, getting thingsdone, resistance)?

2

36

VALUE PROPOSITION

Brainstorm on the value propositions. What value do you deliver to the customer? Which one

of your customers’ problems are you helping to solve? What bundles of products and services

are you offering to each customer segment? Which customer needs are you satisfying?

3

37

UNIQUE VALUE PROPOSITIONWrite a single, clear, compelling message that states why you are different and

worth paying attention to.

4

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SOLUTION FEATURESBrainstorm on the features of the products and services that you offer.5

THANK YOU!

Innovation & Entrepreneurship

University of Innsbruck

[email protected]

Senior Research Associate | Hyve AG

Schellingstraße 45 | 80799 Munich

[email protected]

Laboratory for Innovation Science (LISH)

Crowd Innovation Lab | Harvard University

175 N. Harvard Street | Boston, MA 02134

Univ.-Prof. Dr. Katja Hutter

Innsbruck, September 2020

Keynote 3:

Measuring the ROI of Corporate Innovation for your organisation

Bosun Tijani, CcHub

MEASURING THE ROI OF CORPORATE INNOVATION FOR

YOUR ORGANISATION

Facilitator: ‘Bosun Tijani

The Innovation Process and How to Measure It.

Input Process Output

-1Strategic Thinking

0Portfolio

Management +

Metrics

1Research

2Ideation

3Insight

4Targeting

5Innovation

Development

6Market

Development

7Sales

The Innovation Process and How to Measure ItInput, Process, and Output

Innovation Metrics, The Innovation Process and How to Measure It by Langdon Morris

Stage -1

The purpose of strategy, of course, is to help manage the growth process to achieve the optimal results.

Hence, the link between innovation and strategy is fundamental. It’s not possible to talk about innovation without talking about strategy, and vice versa. So it only makes sense that the innovation process should begin by thinking about what we want to get out of the overall innovation e�ort, which is strategic advantage in the marketplace.

The output of this specific stage is a set of goals and requirements, a model if you will, which details the types of innovation we want, the growth we are targeting through them, and the markets we ought to address. Of course, just because we say what we want doesn’t mean we’re going to get it, but we’re much more likely to get it if we we’re clear about what we want, and if we manage it and measure it along the way.

Strategic Thinking

Input

Stage -1 Input

Possible Metrics

Qualitative Metrics and Provocative Questions

Are we targeting the right parts of our business for innovation?Can we change as fast as our markets do?Are we flexible enough?Is our strategy clear enough that we can translate it into innovation initiatives?How well do our strategies match with the way the market is evolving? (For example, if the industry is moving rapidly into technology, does your organization have the requisite technology expertise?)Do we have an e�ective innovation dashboard?Are we measuring innovation adequately?

Quantitative Metrics

Time senior managers invest in innovationTime required from development of strategic concept to operational implementationMoney invested in innovation MetricsMoney invested in innovation of each typeGrowth expected from the innovation process, in percent, and in dollars

Stage 0

There’s an important concept about the management of innovation that is expressed in the portfolio concept, which is that we can’t expect to manage every individual innovation e� ort or project to become successful. However, we can manage a portfolio of innovation projects and expect satisfying results.

The same thinking process is behind the concept of a mutual fund, diversifying risk while o�ering good upside potential. It’s the same with venture capital funds, which are invested in portfolios of companies. A few of them are expected to do stunningly well, while more than a few will crash and burn. In both cases the portfolio manager is measured not by individual successes and failures, but by the success of the whole ensemble.

At this stage, there is a need to be explicit about how we expect and intend to measure the results, so that all the participants in the process know going forward what the goals are, how the portfolio is being constructed, and how their work and results will be eventually assessed.

Portfolio Management & Metrics

Input

Stage 0Possible Metrics


How does our portfolio compare with what we think our competitors may be planning?Do we have the right balance of incremental and breakthrough projects?Are we introducing breakthroughs at a su�cient rate to keep up with or ahead of change?What are our learning brands, the brands that we use to push the envelope to track the evolution of the market?Are we developing new brands at an adequate rate?Are our metrics evoking the innovation behaviors that we want from the people in our organization?Are our metrics aligned with our reward systems?


Ratio of capital invested in the early stages vs. return earned in sales stageActual portfolio composition in the sales stage compared with planned/ intended portfolio composition in the planning stage

Metrics:Expected metrics vs. actual performance achieved

Input

Stage 1Research strives both to expose unknown and unmet needs, and to develop new technologies that can meet those needs, through which we may uncover new market opportunities.

In fact, most ideas are not like snowflakes, falling from the sky. Rather, think of them as gold nuggets or diamonds, obtained through determined pursuit. While occasionally, a fortunate individual may notice one lying innocently in a stream, looking in random streams is not a genuine prospecting strategy. However, digging is, and research is definitely like digging.

The output of research should be solid knowledge converging from three poles of an innovation spectrum. From one pole comes technical means - the new technological possibilities that are embodied in new discoveries and developments, and methods. From another pole comes a clear understanding of user wants, needs, motivations, beliefs, and attitudes, focusing especially on new or previously hidden insights. From the third pole comes an understanding of how society and the market are evolving and creating the new white spaces in which new markets will develop

Research

Process



How well do we understand the tacit dimensions of our customers’ experiences?How well do we understand the implication and applications of new technologies?How well do we understand the emerging future?How good have our past predictions been at anticipating change?Is our research helping to target the right innovation opportunities?


Number of customer groups we have examinedApplications of research results in new products, services, and processesBreadth of participation from our entire organization in the research process (broader is generally better)Time invested in researchMoney invested in research

Process

Stage 2

In our ideation sandbox we explore all the knowledge and discoveries that our research has exposed, thinking about what it might mean for existing and future products, services, processes, and business models. We engage with customers and non-customers to get their feedback on specific concepts. We engage with specialists from inside and outside the organization to help us model possible business structures, supply chain models, marketing concepts, financial projections, risk assessments, etc.

This sandbox is the realm of endless ‘what if...,’ the place where many players congregate, discuss, and explore together. It is brainstorming. It is tinkering. It is wondering. It is arguing, sometimes (in a good way).

In addition to formal and informal ideation activities that we may sponsor and manage, we also welcome ideas submitted from insiders and outsiders. People can participate through idea capturing web sites.

The output of Ideation is a concept that is then carried forward to further development.

Ideation

Process



Do we have a broad enough range of models of technology possibilities, tacit knowledge models, and societal trends?How good are we at creating an open sandbox that can accommodate a tremendous range of possible concepts and ideas?Are we encouraging people su�ciently to share their ideas?


Number of ideas developedNumber of ideas contributed by our sta�Number of ideas introducedPercent of ideas from outsideNumber of people inside the organization who are participating in the ideation processNumber of people from outside the organization who are participating in the ideation processNumber of ideas collected in the ‘idea gathering’ systemNumber of collected ideas that were developed furtherNumber of collected ideas that were implemented

Process

Stage 3

Insight is the point of convergence where we transform ideas. It is the convergence of technological possibility, customer understanding, and market knowledge to create actionable insight about innovation opportunities. In pursuit of this convergence we experiment with myriad di �erent ways to fit them together.

It might be a long way from a research concept to a business idea to a genuine insight. To get from one to the other in this stage we explore all the elements that constitute a successful business initiative to answer the question, How can we turn our concepts into something that provides value to us, or that customers will buy?

Insight

Process



Are we getting enough solid insight/concepts?Are the insights we’re developing CUT across a broad enough range of business ideas? (include cut)


Unsuccessful technology and customer mash-ups attemptedSuccessful technology and customer mash-ups achieved

Process

Stage 4The purpose of innovation is to enlarge the pie, so to speak, to create healthy growth for our business. There are always many di �erent ways to pursue that - we can make the existing pie larger, a process often called incremental innovation. We can also make a new pie, which might be a radical innovation. We can sell our pies in new ways, which can be called business model innovation. We can increase the rate at which we are selling our pies, which is e�ciency innovation.

Insights have been developed to a satisfying degree of robustness, such that we see their business potential, and now we have to decide which type of innovation they are. This choice will heavily influence the specific activities and processes that we will now use to develop them further. It certainly won’t work to perfect an incremental innovation in the same way you create a radical or new company.

The portfolio you developed in Stage 0 will come into play here, because the ensemble of ideas under development constitutes that portfolio, and over time you will see if you have the right mixture of small, medium, and big ideas.

The output of Targeting is a set of ideas that are under development. They are organized into four di �erent portfolios, one for each type of innovation.

Targeting

Process



Is our innovation portfolio balanced correctly?Are we using the right management processes for the di�erent types of innovations that we are working on?


Percent of investment in non-core innovation projects.Total funds invested in non-core innovation projectsSenior management time invested in growth innovation

Process

Stage 5This is the stage where rapid prototyping leads to completed innovations.

In this stage you do everything that we all know is required to transform ideas into finished products. You engage in extensive engineering and lab testing, build prototypes, test assumptions, talk to customers again, this time with specific products, processes, and services in mind. You’ll also interact with potential customers and non-customers to see how they respond.

As you develop your innovations, you’ll build very detailed business models and write business plans. In summary, you do all the stu� that everyone knows you have to do to turn an idea into something of business value.

This is an entirely multi-disciplinary process that takes dedicated involvement from a wide range of people inside and outside the organization. Project Innovation Metrics - The Innovation Process and management skills are highly valuable here, as is the willingness to kill projects that are not going to be successful.

The output of Innovation Development is completed innovation, ready for market.

Innovation Development

Process



Are the right people involved in the innovation process?Do we have enough failures to assure that we’re pushing the envelope su�ciently?


Prototyping speedNumber of prototypes per new productAverage time it takes to get from Stage 1 to Stage 5Number of patents applied forNumber of patents grantedPercent of ideas that are funded for developmentPercent of ideas that are killed

Process

Stage 6

Xerox provides us with a cautionary market development tale.

At the Xerox Palo Alto Research Center (PARC), a building full of very clever people, the first really usable personal computer was invented. It included a mouse, great windows interface, a laser printer, and Ethernet. This was back in 1973. Unfortunately, the PARC sta� was not able to communicate the significance of this monumental achievement to their senior managers across the country in Connecticut. As a result, Xerox management marketed the device as a terminal emulator for accessing the company’s timeshare mainframes. It didn’t work. So while we could think of Xerox as the PC pioneer, we instead think of Apple, Microsoft, and IBM. However, Xerox was there first; they just didn’t know where they were, and were not able to capitalize on their amazing accomplishment.

So what do our customers really want, and how do we get it to them in a way they understand? The output of Market Development is innovation that the market really wants, and the market that knows it.

Market Development

Output



How well are we balancing our attempts to reach existing versus new customers?How well do we really understand our customers?Are we positioned properly for changes in the attitudes, beliefs, ideals, etc.of our customers?


Return on marketing investmentNumber of new customers addedGrowth rate of customer base

Output

Stage 7

Now we earn the financial return by successfully selling the new products and services. In the case of process improvement innovations directed internally, we now reap the benefit of increased e�ciency and productivity.

We improve our brand and build our reputation as customers appreciate and admire the value that we o� er. They tell their friends. We grow. We are pleased with our successes, and then tomorrow we have to do it again because our competitors are still after our market share

Selling

Output



How well does our sales process match our customers’ needs?


Now we can talk meaningfully about ROI. Did our total innovation investment, managed through portfolios, yield appropriate results in terms of sales growth, profit growth, and overall ROI?Gross sales revenueGross sales marginExpected results compared with actual resultsPercent of projects are terminated at each stageSuccessful results per type of innovationCost savings achieved in the organization due to innovation e �ortsNumber of new customersPercent of sales from new products / servicesAverage age of products / servicesNumber of new products / services launched% of revenue in core categories from new products / services% of revenue in new categories from new products / servicesPercentage of profits from new products / servicesPercentage of new customers from new products / servicesTime to market from research through to salesCustomer satisfaction with new products / services

Output

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