management of technology innovation - tu dresden of technology innovation summer 2015 dr.-ing....

Vodafone Chair Mobile Communications Systems, Prof. Dr.-Ing. Dr. h.c. G. Fettweis

Management of Technology Innovation

Summer 2015

Dr.-Ing. Alejandro Zalnieriunas

Dr. Alejandro Zalnieriunas

> Introduction

> Innovation and sustainability in mobile communications

> Technology trends and predictions 2015

> Creativity and Ideation

> Innovation culture

> Innovation strategy

> Innovation process

> Open innovation

> Innovation maturity management

> Intellectual property rights (IPR)

> Startups and entrepreneurship

Content


> Keith Goffin, Rick Mitchell. Innovation Management - Strategy and

implementation using the Pentathlon Framework, Palgrave Macmillan, 2010.

(Also available in German language).

> Mark Dogson, Davig Gann, Ammon Salter. The Management of Technological

Innovation, Oxford Univertsity Press, 2008.

> Paul Trott. Innovation Management and new Product Development, Prentice

Hall, 2008.

> Paul Williams. The Innovation Manager’s Desk Reference, Lulu, 2009.

Literature


> Introduction







> Open innovation




Content


Introduction

> Definition of Innovations and Innovation

> Innovation, inventions and technology

> Examples

> Main innovation elements Creativity and ideation, culture, strategy and process

> Case study: Why is culture key? Innovation, enterprise strategy and culture

Three innovation strategies

> Innovation and performance of SMEs in Germany

> Most innovative companies 2013


About Innovation and Innovations

INNOVATE OR LOSE



MOST COMPANIES AND

OTHER ORGANISATIONS TODAY

MUST INNOVATE EITHER TO

─ Achieve Success, or

─ Survive in difficult Markets



WELL MANAGED INNOVATION AND THE RESULTING INNOVATIONS LEAD TO IMPORTANT ADVANTAGES LIKE

─ Products with high degree of novelty

─ Quality that matches Customer Requirements

─ Cost efficient R&D and production/operations

─ Short “Time to Market”



AND: WELL MANAGED INNOVATION

HAS AN ATTRACTIVE RETURN ON

INVEST (ROI)

i.e. the amount of effort (e.g. employees’

time and cost of systems/software)

needed to establish and maintain

Innovation is small compared to the

improvement of results


Definition of Innovations (1)

INNOVATIONS : NEW IDEAS VALUE



INNOVATIONS : NEW THINGS VALUE



> Other definitions of innovations exist

> For us: AN INNOVATION is something that arises from a

new idea or from something new and leads to value

INNOVATIONS : NEW IDEAS VALUE

INNOVATIONS : NEW THINGS VALUE


Definition of Innovation

IDEA IMPLEMENTATION VALUE

„INNOVATION“ also denotes the sum of all activities

within a company or an organisation which create

„Innovations“


Examples of „Value“

> Value for Customers e.g. communications, entertainment, news

> Value for Companies e.g. successful products, quality, low costs

> Value for society, cities, towns, countries, world e.g.

Solution of “humanity problems” like water and food

supply, health, education, transport, energy and

communication

Environment protection, sustainability

Advances in e.g. medicine and car technology


Areas of „Value“

> Products

> Services

> Industry Production

> Processes

> Business models

> Technology Innovations (Our focus)

INNOVATION : NEW IDEA VALUE

INNOVATION : SOMETHING NEW VALUE


Some Technology enabled Innovation Areas

> Tactile Internet and Internet of Things (IoT) e.g. smart home, smart cities, smart energy

> Virtualisation of Communications Networks (using cloud processing principles

> 4G Deployment, 5G Development

> 3D Chip Technology – behind CMOS

> Robots e.g. health care, rescue

> Medicine Technology

> Green Energy

> E-Mobility


DEFINITIONS

> TECHNOLOGY

> INVENTION

> INNOVATION


TECHNOLOGY – OUR DEFINITION

A TECHNOLOGY is something, that

- has arisen from scientific knowledge,

- has a practical value (usability),

- and can be produced with industrial methods.

The term “TECHNOLOGY” is also used for broad

application areas like vehicular technology,

mobile communications technology,

integrated circuit technology, computer technology,

information technology (IT) etc.

Slide

19


INVENTION – PATENT LAWS DEFINITION

> From patent laws point of view an invention need to

Be a novelty (not previously disclosed)

Be an inventive step (must not be obvious)

Have an industrial application (not be merely theoretical)

Be sufficiently explained (description must be sufficient to

build “the invention”)

Be concrete methods or guides for technical procedures (e.g. a

new material and the way to create it

> A patent legally protects the intellectual property rights of the inventor


INVENTION – OUR DEFINITION

An INVENTION is something, that

- has never existed before,

- Is apropriate for industrial production.

The term “INVENTION” is also used for a process

that is followed for the creation of inventions

(according to the definition above).

Slide

22


INNOVATIONS – OUR DEFINITION

INNOVATIONS are things,

- like a device, product, service, process, business

model etc., that

- have arisen from new ideas,

- have a degree of novelty,

- and generate value (for customers, companies,

society, humanity etc.)

Slide

24


INNOVATION – OUR DEFINITION

The term “INNOVATION” is used for the process

and additional activities that are followed

in the creation of “Innovations”.

Slide

25


Generates

Value

New

Idea

Technology, Invention, Innovation

Generates

Value

New

Idea

Never

Before

Industrial

Production

Scientific

Knowledge

Generates

Value

New

Idea

Generates

Value

New

Idea

Never

Before

Industrial

Production

Scientific

Knowledge

Never

Before

Scientific

Knowledge

Invention

Innovation

Technology

Slide

26


Invention and Innovation

Generates

Value

New

Idea

Never

Before

Industrial

Production

Scientific

Knowledge

Generates

Value

New

Idea

Never

Before

Scientific

Knowledge

Invention-Innovation

Slide

27


Technology and Innovation

New

Idea

Real

Innovation

Available

Technology

Value

New

Idea

“Virtual”

Innovation

Technology

DevelopmentTechnology

Real

InnovationValue

Generates

Value

New

Idea

Innovation

Scientific

Knowledge

(Never before)

Slide

28


Classical Innovation Examples


WitricityWireless Energy Transmission

Source: Witricity (www.witricity.com)


SAP HANAIn-memory computing

Source: SAP (www.sap.com)


Innovation Elements

INNOVATION

PROCESS

STRATEGY

CULTURE

CREATIVITY,IDEATION


Ideas phase DevelopmentImple-

mentation

Life

Cycle

FeasibilityConcept

Innovation Process Phases



mentation

Life

Cycle

Products,

Services,

Business Models,

Processes,

Savings

Project

FeasibilityConcept

Innovation Process Phases


Enterprise

Development,

Implementation

Innovation Culture

Innovation Strategy

External R&D, Supplier, PartnerExternal Ideas

Open Innovation

Company Strategy

Company Culture

New ideas,

idea

development

Innovation Elements

Products,

Services,

Business Models,

Processes,

Solutions,

Reveneues/Savings

Profits

Dr. Alejandro ZalnieriunasSlide 36

CREATIVITY: do differentlyPicture courtesy of Kai Kim, 2009.


Idea GenerationSome Creativity Techniques

SIX THINKINGHATS

BRAINSTORMING

BRAINWRITING

WALT DISNEY

6 - 3 - 5


ANA-

LYTIC

EMO-

TIONAL

CRITI-

CAL

OPTI-

MISTIC

CREA-

TIVE

ORGA-

NIZER

Creativity TechniqueSix thinking hats


Good ideas without good development

can not generate value.

Good ideas and good development

Good development without good ideas

is wasting of resources.


Why Culture is KeySource: Booz&co. (www.booz.com)

Alignment of Business Strategy

to Innovation Strategy

Cultural Support of Innovation Strategy


Innovation CultureThe fundamental Success Factor

Innovation Culture is the most fundamental contributorto successful Innovation.

Culture is the set of shared values, attitudes and practices that characterizes an Institution, organization or group.


Booz&co. study: The 2011 Global Innovation 1000



Three Innovation Strategies

Need Seekers

Market Readers

Tech Drivers


> TOP Innovators among German SMEs outperform the branch

specific SME averages in important financial parameters like

revenue growth and process savings

> EU/EC Definitions for SMEs and Micro-Enterprises*

Companycategory

Employees Turnoveror

Balance sheet total

Medium-sized < 250 ≤ € 50 m ≤ € 43 m

Small < 50 ≤ € 10 m ≤ € 10 m

Micro < 10 ≤ € 2 m ≤ € 2 m

*) Source: http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/sme-definition/index_en.htm

Performance of innovative German SMEs


Source: TOP 100, die 100 innovativsten Unternehmen im Mittelstand, Ausgabe 2011. REDLINE-Verlag.

Category TOP 100 SME- AverageTOP 100/ SME-

Average

Revenue share due to innovations

from the last 3 years49% 6,7% 7,3

Savings due to process-

innovations in 201010% 2,8% 3,6

Share of enterprises which grew

faster than the branche average in

the last 3 years

88% (Assume 50%) 1,8

TOP 100 average growth on top of

SME average growth16% 0%

Performance of innovative German SMEs Performance measures


Category TOP 100 SME- AverageTOP 100/ SME-

Average

Enterprises with broad innovation

strategies97% 44% 2,2

Idea phase is properly organised 97% 28% 3,5

Innovation collaboration with suppliers 89% 18% 4,9

Employees are empowered to use time

for idea creation and collaboration78% 35% 2,2

Cross-functional project teams 99% 55% 1,8

Ratio of innovation budget / revenue 14% 1,5% 9,3

Source: TOP 100, die 100 innovativsten Unternehmen im Mittelstand, Ausgabe 2011. REDLINE-Verlag.

Performance of innovative German SMEs Some measures that led to top performance


> Introduction







> Open innovation




Content


> Sustainability

Sustainability

Life Cycle Assessment

Recycling

> Mobile communications

Networks and terminals

Subscribers and traffic growth

Sustainability in ICT and mobile communications

> Mobile phone recycling

Innovation and Sustainabilityin mobile Communications


Sustainability

A broadly accepted definition of Sustainability is

“meeting the needs of the present without compromising

the ability of future generations to meet their own needs.”

“Keep an Eye on the Present,

while keeping the other Eye on the Future, on the Horizon”


> Sustainability is an umbrella term for a set of “changes and challenges” that impact enterprise strategy, culture and performance, including:

Growing environmental pressures related to increasing

population

Resource scarcity

Rising costs for energy and materials

Increasing consumer demand for safe and natural products

Unprecedented levels of transparency arising from the Internet

and social media

Sustainability impact on enterprises


> Sustainability can be quantified using the following parameters

Utilization of natural resources

Energy resources, e.g. gas, raw oil

Vegetal resources, e.g. trees

Animal resources, e.g. certain fishes

Mineral resources, e.g. metals

Emissions of CO2 and CO2e (Equivalent CO2 emissions)

Energy consumption.

Sustainability quantification


> In order to compare and summarize the carbon footprint of different or mixtures of gases, the standard unit CO2e, or carbon dioxide equivalent, is used

> CO2e expresses the impact of any greenhouse gas in terms of the amount of CO2 that would create the same amount of warming (radiative forcing).

> That way, a carbon footprint consisting of lots of different greenhouse gases can be expressed as a single number.

> For example, in 2009, the UK released 474 million tons of CO2. Including its emissions of other gases, the country's total emissions work out at 566 million tons of CO2e, i.e., those extra gases added the equivalent of 92 million extra tons of CO2.

Source: theguardian (www.theguardian.com).

Carbon Dioxide Equivalent (CO2e/CO2e)Definition


The three Spheres of Sustainability

Image credit: www.vanderbilt.edu/sustainvu/cms/files/sustainability_spheres.png


> The three Spheres of Sustainability can be considered as the major sustainability stakeholders:

They can influence

sustainability, positively

and negatively

They are affected by

sustainability

> Innovation and technology can affect the three Spheres

The three Spheres and Innovation

Image credit: www.vanderbilt.edu/sustainvu/cms/files/sustainability_spheres.png


> Section I: Social and Economic Dimensions

> Section II: Conservation and Management of Resources (EnviromentalDimension)

> Section III: Strengthening the Role of Major Groups Roles of children, youth, women, local authorities, business and industry, and worker

Strengthening the role of indigenous peoples and their communities

> Section IV: Means of Implementation Science, technology transfer, education

International institutions, financial mechanisms.

Agenda 21Non-binding action plan of the United Nations

Source : Wikipedia

Combating poverty Changing consumption patterns Promoting health

achieving a more sustainable population

sustainable decision making

Atmospheric protection Combating deforestation Protecting fragile environments

Conservation of biological diversity Control of pollution Management of biotechnology Management of radioactive wastes


Life-cycle Assessment (LCA)also “Life-cycle Analysis”

Image credit: US EPA Region X (Document lca_1_100809.pdf)


> Technique to assess environmental impacts associated with the stages of a product's life: raw material extraction,

materials processing,

manufacture,

distribution,

use,

repair and maintenance,

and disposal or recycling.

> “Cradle-to-grave” is the full Life Cycle Assessment from resource extraction ('cradle') to disposal phase ('grave').

Life-cycle Assessment (LCA) contextalso “Life-cycle Analysis”




> LCA studies are structured in four phases: Goal and scope: Establishing purpose,

context scope and stakeholders of the

Study.

Inventory analysis: Compiling an

inventory of relevant energy and

material inputs and environmental

outputs.

Impact assessment: Evaluating the

potential impacts associated with

identified inputs and outputs.

Interpretation: Interpreting the results to

help make a more informed decision.

Phases of LCA Studies

Image crdit: US EPA Region X (Document lca_1_100809.pdf)


Life-cycle process modelManufacture industry

Image credit: Environmental Technology Best Practice Programme © Crown copyright (www.tangram.co.uk/TI-LCA_Introduction.html)

Recycle,Compost,Energy Recovery,Landfill


Recycling and waste hierarchy

Image credit: Wikipedia (File: Waste hierarchy.svg)

> Recycling helps extend the life and usefulness of something that has already served its initial purpose by producing something that is useable.

Image credit: www.clipartbest.com


> Recycling 1 ton of paper saves

17 mature trees

7,000 gallons of water

3 cubic yards of landfill space

2 barrels of oil

4000 kilowatt hours of electricity (can power an average home for 5 months)

> Recycling paper generates 74% less air pollution than making it from new materials

> Recycling paper uses 60% of the energy needed to make paper from new materials

> Over 73% of all newspapers are recovered for recycling

> A little more than 48 percent of all office paper is recycled (Writing papers, paperboard, tissue, and insulation)

Source: www.benefits-of-recycling.com/interestingrecyclingfacts

Interesting Recycling Facts – Paper


> Recycling steel and tin cans saves 74% of the energy used to make them from raw materials

> Approximately 88% of the energy is saved when plastic is made from plastic rather than from the raw materials of gas and oil

> Recycling one aluminum can

Saves enough energy to run a 100 watt light bulb for 20 hours or save gasoline that

half fills the can

> US people throw away enough aluminum every month to rebuild an entire commercial air fleet

> US people throw out enough iron and steel to continuously supply all the auto makers in the entire nation

> Enough plastic bottles are thrown away in the United States each year to circle the Earth four times

Source: www.benefits-of-recycling.com/interestingrecyclingfacts

Interesting Recycling Facts – Metal, plastic


> Introduction






> Open innovation




Content


> Sustainability

Sustainability


Recycling






Innovation and Sustainability in mobile communications


> First GSM1 mobile phone call: 1991 in Finland

> Over two billion GSM users in 2006

> Over four billion mobile subscriptions (all standards) worldwide in 2011

> Comparisons About 1.3 billion fixed line subscribers worldwide (2011)

About 1.8 billion of people accessing the Internet worldwide (2011)

> Processing power and storage capacities of mobile devices have doubled approximately every 18 months

> Data transmission rates have been rising at nearly the same speed

Some facts about mobile communications

Source: The Global Footprint of Mobile Communications: The Ecological and Economic PerspectiveIEEE Communications Magazine • August 2011

Note 1: Global System of Mobile Communications


GSM Network Model 3G Network Model

Mobile network architecture modelsGSM (2G, 2nd Generation) and 3G (3rd Generation)

Image credit: Wikipedia (GSM). NEC (www.ne.co.jp) (3G)

BS, BTS: Basis Station

BSC: Base Station Controller

MSC: Mobile Switching Center

HLR: Home Location Register

VLR: Visitor Location Register

SMSC: Short Message Service Center

SCP: Service Control Point (IN)

SDP: Service Data Point (IN)

Circuit Switched

Network Node-B: Eq. Basis Station

RNC: Radio Network Controller

MSC: Mobile Switching Center

GMSC: Gateway Mobile Switching Center

SGSN: Serving GPRS Support Node

GGSN: Gateway GPRS Support Node

IMS: IP Multimedia Subsystem


number of transistors in an electronic chip every two years, 225 (nearly 30 million) times in fifty years up to today.

Wireless and wired data ratesIncrease exponentially over time

> Data rates increase approximately by a factor of 10 every five years

> This corresponds, in principle, to Moore’s Law: In 1965, Gordon Moore predicted a doubling of the



> Number of 3G+ (3G and 4G) devices will surpass 2G by 2015 (upper diagram)

> By 2020 there will be about six billion mobile phone subscriptions (2G and 3G+) (lower diagram)

Global mobile subscriptions projections

Upper image credit: Cisco VNI Mobile, 2014

Lower image credit: The Global Footprint of Mobile Communications: The Ecological and Economic PerspectiveIEEE Communications Magazine • August 2011

Regular 3G+ subscription: Phones

3G+ data subscription: Laptops and similar


> Number of intelligent devices will rise to 66,1% (=100%–33.9%) in 2018

> Each type of terminal has a typical pattern of Sustainability impact Utilization of natural resources

Carbon (CO2e) emissions

Energy consumption

Global number of devicesType of device

Figures in parenthesis refer to device or connections share in 2013, 2018. Credit: Cisco VNI Mobile, 2014


> Global 4G M2M connections: 0.43% in 2013,

1.5 % by 2014,

3% by 2015,

5.6% by 2016

> M2M data traffic is small compared to traffic originating from human users

Global M2M growthMigration from 2G to 3G and 4G

Credit: Cisco VNI Mobile, 2014

> Expected averages (2020) 50 bytes/min/device and 10 devices/person

Less than 0.3 Gbytes/person estimated M2M traffic

About 100 Gbytes/person estimated data traffic

> M2M should have a marginal impact on carbon footprint Low activity levels and small capacity per link requirements


Global number of devices

MANY, MANY DEVICESWHICH ARE REPLACED

CONTINUOUSLY


> Global CO2 footprint of IT and Communication Technologies (ICT)

is about 2% of overall CO2 footprint (1.5% of CO2e emissions)

> ICT’s and global aviation’s CO2 footprints are nearly the same

> Mobile networks’ CO2e emissions are estimated as 0.2% (2007)

> Mobile network operators (MNOs) have a strong economic

incentive to reduce energy consumption because of:

Increasing number of base station (Node-B) sites

Increasing energy costs.

Carbon footprint and energy consumptionICT and Mobile Networks



1) Manufacturing of mobile devices: low-end phones, smartphones, and laptops

2) Mobile devices operation

─ Charging of batteries and standby consumption of chargers

─ Charging and grid operation for laptops etc.

3) RAN sites manufacturing and construction

4) RAN sites operation: Total electricity consumption of

─ Base station sites and control sites

─ Transmission, cooling, rectifiers, backup power, etc.

5) Operator activities: Offices, stores, vehicles, etc.

6) Data centers and data transport

─ Use or allocation of network resources based on the data traffic

Mobile communications carbon footprintModel – Break down in six categories



> Largest contributions in absolute values (2020):

RAN sites operation ( A )

Manufacturing of mobile devices ( B )

> Relative contribution of RAN operations decreases considerably over time

Image credit: The Global Footprint of Mobile Communications: The Ecological and Economic PerspectiveIEEE Communications Magazine • August 2011

Global carbon footprint projectionCO2e emissions

B

A


> Global mobile penetration and CO2e increase nearly proportionally, although traffic volume per subscriber significantly grows

Global mobile communications projectionsCarbon footprint und subscriptions


Regular 3G+ subscription: Phones

3G+ data subscription: Laptops and similar


> Innovation and advances in Technology make and will continue to make a reduction of carbon emissions per traffic volume unit, e.g. per Gigabyte, by approx. 99,5%(factor 1/200) possible

Global carbon footprint projectionsPer subscriber and Gigabyte of mobile data

Image credit: The Global Footprint of Mobile Communications: The Ecological and Economic PerspectiveIEEE Communications Magazine • August 2011

Despite massive increase of traffic per subscription, and thanks innovation and technology, emissions per subscription will remain fairly constant or even decrease (3G+ data).


Manufacturing carbon footprint1 and operation energy consumption

Regular cell phones Smartphones Laptops (average)

Manufacturing:

18 kg CO2e/device

Operation:

2 kWh/year

Manufacturing:

30 kg CO2e/device

Operation:7 kWh/year

Manufacturing:

240kg CO2e/device

Operation:

40 kWh

Projections

Manufacturing and operation emissions remain

constant

Technological advances result in better

performance and more functions

Projection

Manufacturing and

operation emissions

decrease by 5%/ year



> Number of mobile communication subscriptions grows

> Amount of traffic per (most types*) of subscription grows

> Innovation and technology advances reduce significantly the emissions per traffic unit

The result is a moderate growth

of the total mobile communications emissions

Summary


> Sustainability

Sustainability


Recycling






Innovation and Sustainabilityin mobile communications


> Overall, a mobile phone consists approx. of 40% metals, 40% plastics, and 20% ceramics and trace materials.

> Circuit board and electronics Mined, raw materials including copper, gold, lead, nickel, zinc,

beryllium, tantalum, and other metals

Plastic

Some of them are "persistent toxins" and can stay in the environment

for long periods of time

> The display (LCD) can contain dangerous substances, like mercury. It also contains glass or plastic.

> Batteries, according to type can contain several metals, like nickel, lithium, cobalt. zinc, cadmium, and copper.

Mobile phone Bill of Materials (BoM)Circuit board, display, battery

Source: Underwriters Laboratories Inc. (UL) Copyright © 2011


Metals in mobile phones

Note 1: Source: Underwriters Laboratories Inc. (UL) Copyright © 2011

Metal content and value ratio at phone level (published in 2010)1

Component-level metals content (published in 2008)1


Mobile phone life cycle

Credit: EPAImage credit: Wikipedia (File: Waste hierarchy.svg)



Cell phone life cycles

Credit: EPA


> One price machine in UK: mobilevaluer.com. Samsung Slll.

Source: http://mobilevaluer.com (2013)

Selling used mobile phones Example: UK

http://mobilevaluer.com/


Recycling and waste hierarchyMobile Phones (MPs), Tablets (Ts), Laptops (Ls)

Image credit: Wikipedia (File: Waste hierarchy.svg)

> Prevention of utilization is in the case of MPs practically impossible

> Substitution (prevention) of Ts through utilization of MPs with larger screens (Phablets), or prevention of Ls through “Hybrids” or Ts with attachable keyboards

> Minimization of utilization doesn’t play a critical role because of the relatively low energy consumption of devices

Image credit: www.clipartbest.com

> Reuse in the case of MPs, Ts and Ls plays a very important role: Many people keep old devices for “alternative” utilization, like alarm clock or egg cooking, or even in the drawer, at their homes. This has a huge potential for recycling or even “appropriate” reuse which would reduce the need and demand for production of new devices

> Disposal in the residual waste must be avoided by any means.


> Introduction







> Open innovation




Content

Dr. Alejandro Zalnieriunas Slide 116

> Almost half of the world will have a powerful computer in their pocket

and vastly different expectations from your business

> Advanced, Pervasive and Invisible Analytics Turn Every Application Into

an Analytical Application Delivering Actionable Insights to Consumers

> Cloud/Client Computing Will Emerge to Unify Cloud and Mobile

Strategies

> Smart Machines Extend Humankind's Ability to Address Complex

Situations

> Context-Rich Systems Provide Agility and Proactive Responsiveness

> The IoT will continue to rapidly expand the traditional IT industry

> Data-as-a-Service will drive new big data supply chains

Selection of Trends and Predictions 2015


Top 10 Mobile Technologies and Capabilities for 2015 and 2016Source: Gartner

> Multiplatform / Multiarchitecture AD Tools

> HTML5

> Advanced Mobile UX Design

> High-Precision Location Sensing

> Wearable Devices

> New Wi-Fi Standards

> Enterprise Mobile Management (EMM)

> Mobile-Connected Smart Objects

> LTE and LTE-A

> Metrics and Monitoring Tools


Gartner's top 10 strategic technology trends for 2015 (1)

1) Computing Everywhere Is Changing How People

Experience the World

2) The Internet of Things Brings the Power of Device

Ecosystems to Your Enterprise

3) 3D Printing Is Approaching a Critical Inflection Point

4) Advanced, Pervasive and Invisible Analytics Turn Every

Application Into an Analytical Application Delivering

Actionable Insights to Consumers

5) Context-Rich Systems Provide Agility and Proactive

Responsiveness


Gartner's top 10 strategic technology trends for 2015 (2)

6) Smart Machines Extend Humankind's Ability to Address

Complex Situations

7) Cloud/Client Computing Will Emerge to Unify Cloud and

Mobile Strategies

8) Software-Defined Architecture for Infrastructure and

Applications Is Required for Dynamic, Agile, Flexible

Systems to Support Digital Business

9) Web-Scale IT Is Required to Keep Pace With Digital

Innovation and Competitive Threats

10)Digital Business Demands Risk-Based Security and Self-

Protection


Gartner's Hype Cycle for Emerging Technologies, 2014


IDC: Top 10 Technology Predictions For 2015 (1)

IDC’s Frank Gens advised companies in all industries to

“Amazon” themselves,

but also predicted that the best job of “Amazoning”

will be done by Amazon itself

All innovation today is Amazon-style innovation:

at scale,

high-velocity,

and low-cost.


IDC: Top 10 Technology Predictions For 2015 (2)Selection

> New technologies will account for 100% of growth

> Wireless data, the largest segment of the

telecommunications sector, will also be the fastest growing

> Phablets will be the mobile growth engine

> The IoT will continue to rapidly expand the traditional IT

industry

> Cloud service providers will become the new data centre,

redrawing the IT landscape

> Rapid expansion of industry-specific digital platforms

> Adoption of new security and printing innovations

> More China, everywhere


Forrester: Top IT Predictions for 2015 (1)

> The gap between digital leaders and laggards will widen in

2015

> Almost half of the world will have a powerful computer in

their pocket and vastly different expectations from your

business

> Apple will rule 2015

> More money spent on security will lead to… more security

breaches-related losses

> Data is the new product


Forrester: Top IT Predictions For 2015

> Data is the new product

> Many established companies will become venture

capitalists

> Some sectors will not see the fruits of digitization for a long

time

> The Cloud is the New Normal

> In 2015, many organizations will answer the question

“Who’s your digital daddy?” with a three-letter acronym


> Introduction







> Open innovation




Content


Creativity and Ideation

> Definitions

Psychological and neuroscience mental processes models

> Creativity and geniuses

Blind variation and selective retention (BVSR)

Cognitive disinhibition

> Learning and training individual creativity

Creativity techniques and tactics

Let your unconscious solve the problems

> Team creativity techniques

> Company creativity, ideation


Creativity and ideation

INNOVATION

PROCESS

STRATEGY

CULTURE

CREATIVITY, IDEATION


Facts about creativity

> Innovation is the most important competitive edge (advantage) in many industrial and business sectors

> Day-to-day innovation in a company can be roughly reduced to creativity and process (execution)

> Creativity is a very important characteristic of an individual for important roles in industry and business

> Creativity is key for career development and success of many professionals like engineers, scientists, artists and managers

> You don’t need to be a genius to be highly creative:

Creativity can be learned… and you should do it!


Creativity, Company Ideation

Thoughts,

sensations,

memory

Generation

of ideasAnalysis,

selectiontime


Creativity is

the purposeful

generation and implementation

of new ideas with

measurable useful outcomes.

Creativity involves

generating new ideas,

evaluating them,

picking the best ones and

implementing a plan for their realisation.

Our creativity definition

Picture courtesy of Kai Kim, 2009.


Creativity vs intelligence (Merriam-Webster)

> Intelligence - Ability to learn or understand or to deal with new or challenging situations. Also, ability to apply knowledge to manipulate one's environment or to think abstractly as measured by objective criteria (such as standard IQ tests).

> Creativity - Ability to produce something new through imaginative skill, whether a new solution to a problem, a new method or device, or a new artistic object or form.


Creativity and ideation in a company

The first step

Any individual can

improve his

creativity

Creativity is

improved further

working in teams,

using creativity

methodology

The right culture,

management

leadership and tools

move creativity to

the top stage

INDIVIDUAL

CREATIVITY

TEAM

CREATIVITY

COMPANY

CREATIVITY

Ideation (company)

Slide

132


a Genius hits a target

no one else can see”

Arthur Schopenhauer, German philosopher, 19th century

Talent vs Genius

“A Talent hits a target

no one else can hit, …


Alternative Definitions of Genius

> Individual with

extraordinary

achievements based on

imagination

E.g. Newton, Galileo, Einstein,

Mozart, Beethoven

Most accepted definition

> Extraordinary intelligent

individual measured with

standard methods

Usually attributed to

individuals with an IQ

above 140 (1/100 of

individuals)

High IQ “Societies”: Mensa

(1/50), Intertel (1/100),

Tripple nine (1/1000),

Mega (1/1.000.000)

Slide

134


Generate new ideas through BVSR(Blind Variation and Selective Retention)

Knowledge acquisition Need domain knowledge before

making significant contribution

Environment Development

Genes Talent Eccentricity Psychological exceptions

Common characteristics of geniuses


Idea generation and backtracking

Idea generation

Back tracking

98

76

5

4

3

2

1


Blind variation and selective retention (BVSR)

time

Number

of ideas

1

Blind variation Selective retention

Imagine

Select


Creativity, Company Ideation

Blind Variation (BV) Selective Retention (SR)time

Diverging Thinking Converging Thinking / Analysis


Mental processesPsychological model

... Unconscious

… Conscious

Awareness Mind

Capability set that

enables mental

activities like

perception, thinking,

reasoning, memory,

Feeling and motivation

The processes

in the mind that can

be captured by awareness

The state of perceiving

or feeling impressions

on the mind

The processes in the mind

that occur automatically

and are not available

to awareness

4

1

3

2


Mental processesImportance

Unconscious is a very powerful tool that can be “instructed” by the conscious (awareness) to deliver solutions.

The crux is to get the solutions backto the conscious, e.g. to become aware ofthe solutions.


Appendix: Psychological model definitions(Not relevant for exam)

> Mind: The set of cognitive human faculties that enables ”mental processes” like perception, thinking, reasoning, memory, feeling, and motivation.

> Awareness: The state or ability to perceive or to feel facts or sensory patterns impressed in the mind.

> Conscious (Conscious mind): The processes in the mind that can be captured by awareness.

> Unconscious (Unconscious mind): The processes in the mind that occur automatically and are not available to awareness, to introspection. Even though these processes exist well under the surface of conscious mind, out of the reach of awareness, they exert an impact on behavior.


Mental processesNeuroscience model

Attention, control,

solving problems

(frontal part of brain)

(Part of) imagination,

thoughts, ideas,

memories, sensations

(posterior part of brain)

Alpha-waves (while creative activities)

Beta-waves (while focused attention)

Cognitive filter

(protects from information excess)


Cognitive disinhibitionThis theory is supported by EEG and brain imaging

Cognitive filter

Normal individual Genius

Cognitive disinhibition

(higher throughput)

High

intelligence


Cognitive Disinhibition

> Cognitive filter has exceptionally increased throughput

> Additional information arrives at conscious awareness and can give rise to unusual (“creative”) ideas

> People with high degree of intelligence can process this information

> Other people can be overwhelmed with the information

> Cognitive disinhibition can explain the non-coincidental incidence of eccentric behavior with high creativity

> Cognitive disinhibition paired with high intelligence can lead to exceptional insights


Boosting individual creativity

> How can we improve our creativity?

> Learning to see what others don’t see

> Learning to think how other don’t think

> Being motivated

> Very characteristic of geniuses is how to think:

Thirty one students of

five Nobel prize winners

(Enrico Fermi, Ernest

Laurence, Niels Bohr, J. J.

Thompson and Ernest

Rutherford) won Nobel

prizes

They learned “how to

think”


> Reversal

How to find ideas by reversing conventional assumptions

> Attribute listing

How to get ideas from a challenge’s attributes

> Fractionation

How to get ideas by dividing a challenge into two or more

components and the reassembling them in new and different ways

> Mind mapping

How to map your thoughts in order to get new ideas

> Idea box

How to identify and box the parameters of a challenge to easily

produce many new ideas

Individual creativity techniques (1)


> Future scenarios

How to create future scenarios in order to get advantage of hidden

opportunities

> Visualize

Rethink the way to categorize items

> Talk to a stranger

How to get ideas by increasing the number and kind of people you

talk to about your challenges

> Lateral thinking

Unusal thinking

Individual creativity techniques (2)


> Take distance

Take spatial or temporal (move to the future!) distance from your

challenge to be more relaxed

> Take regular breaks

These will improve your overall mental performance and could allow

ideas to arise to your awareness

> Alternate activities

This will help you to get new perspectives on your challenge and

overcome deadlocks

> Have always something to take notes with you

Don’t rely on your conscious memory. Take notes of ideas, thoughts,

sensations, especially dreams

> Improve your creativity with creativity tests

Individual creativity tactics


> Menu

No menu (reversal). The guests choose ingredients available

in the restaurant and the restaurant cooks for them

> Offering food in the restaurant

No food (reversal). Guests bring their own food and the

restaurant cooks for them

> Getting paid for food

No payment for food (reversal). Instead, guests pay for the

time they spend in the restaurant. Note: There exist a coffee

company with coffee houses in Moscow, London (and

Berlin?) which operates according to this model

Reversal examplePlanning a restaurant


Fractionation exampleImproving customer service

Customer

Service

Satisfied

Service

Customer

Not

satisfied

Info.

Handling

complains

Prompt

Polite

Poor Quality

Slow

Personal

Automatized

Personal

Automatized


Simplified Attribute List technique. The purpose is to find new

parameter (or feature) configurations to improve or prolong the life

time of a product. The process is:

1. State the problem

2. List the parameters of the issue across the top of the page

3. List variations for each parameter, in a column below it

4. Try different combinations

Idea Box


> LIST THE PARAMETERS

Battery life

(std by)

Internal

Memory

External

MemoryScreen Size

Optical

ZoomPrice

1

2

3

4

Mobile Phone Example

Idea Box exampleMobile phone


> LIST VARIATIONS OF EACH PARAMETER

Battery life

(std by)

Internal

Memory

External

MemoryScreen Size

Optical

ZoomPrice

1 8 h 0,5 GB 0 3.5" (iPhone 4S) None 100 €

2 12 h 1 GB 32 GB 4.2" (Galaxy S II) 2x 150 €

3 16 h 2GB 64 GB 4.8" (Galaxy S III) 4x 300 €

4 20 h 4 GB 128 GB 5.5 (Galaxy Note)

10x

(Galaxy S4

zoom)

600 €

Mobile Phone Example

Idea Box exampleMobile phone


Lateral thinking

“Seeking to solve problems by unorthodox or apparently illogical

methods.” (Oxford Dictionary)

1. Make associations that are in some sense illogical since they don’t provide from a process where the connections are obvious

2. Move sideways when working on a problem

3. Try different perceptions and concepts

4. Get out of the usual line of thought.


Utilize the powerful resources of your unconscious

The unconscious is continually processing information (incubation)

Ask your unconscious to solve a problem, give it some time, and get the

solution

> Relaxation

Use relaxation techniques to clear your mind and make your

awareness more receptive to thoughts/ideas from unconscious mind

> Dreams

Dreams during sleep and daydreams also make awareness more

receptive to thoughts/ideas from unconscious mind

> Three B’s

Bus, Bed and Bath. Get new ideas while doing “nothing”, while not

dealing with problems

Let your unconscious solve the problems


1. Go to a quiet environment

2. Take a comfortable position that you can keep for a while without falling into sleep

3. Use a technique to relax deeply like meditation

4. Take a passive attitude; observe your thoughts without dwelling on them as they pass through your awareness

Relaxation


Dreaming means: Thinking in a different state of consciousness

Dreams help to solve problems that require creativity or visualization

Daily REM1 sleep consolidates memory and reinforces neural

connections/circuits

REM sleep before tests led to more creative solutions2

1. Write down a brief problem statement

2. Once in bed, review the problem for a couple of minutes, visualize it and tell yourself you want to dream of the solution

3. On awakening, recall any possible trace your dream(s) and invite more to come

4. Take notes

1) Rapid Eye Movement. 2) Experimental results

DreamsREM sleep


Mind wander (or daydreaming) means: Shifting attention away from the

current physical or mental task

Daydreams, like normal dreams, relax “cognitive filters” and allow you to

become aware of additional thoughts, sensations etc.

Most people spend between 30 and 47 percent of awake time in

daydreams

1. Review and visualize your problems on a regular basis, allowing them to move in the unconscious

2. Allow your mind to roam freely

3. Catch yourself when daydreaming, pay attention to the content of the dreams and take notes

DreamsLet your mind wander (Daydreams)


The first step

Any individual can

improve his

creativity

Creativity is

improved further

working in teams,

using creativity

methodology

Culture,

management


can move creativity

to this stage

INDIVIDUAL

CREATIVITY

TEAM

CREATIVITY

COMPANY

CREATIVITY

Ideation (company)

Creativity and ideation in a companyTeam creativity

Slide

160


> Brainstorming

> Brain-writing

> 6-3-5

> Five W’s and one H

> Disney creativity strategy

> Six hats

> SCAMPER

> TRIZ/ARIZ

> Creative problem solving (CPS)

Team creativity techniques


1. Invite people from different areas and backgrounds (diversity).

2. Define and validate the challenge. Ensure everyone understood the challenge

3. Distribute documentation about the challenge

4. Meeting 3-4 days later (allow for INCUBATION):

– Select a moderator and a recorder

– Phase 1: Idea capture – collect as many ideas as possible, accept all ideas, no critics, no judgments

– Phase 2: Idea clustering and combination

– Phase 3: Idea selection.

Brainstorming


1. Process like brainstorming

2. Ideas are captured in writing

3. Overcomes inhibition

Brain-writting


1. Special case of brain-writing

2. 6 people participate and each write 3 original ideas on a (his/her) card

3. The 6 people write an idea under each original idea of the other 5 participants

4. The result are 108 ideas.

6-3-5

Idea 1 Idea 2 Idea 3

Participant 1

Participant 2

Participant 3

Participant 4

Participant 5

Participant 6

6-3-5


1. Who? - Why? - What? - Where? - When? - How?

2. Useful at any level from a formal checklist to complete informality.

3. To generate data-gathering questions.

4. To generate idea-provoking questions.

5. To check plans, the checklist is a useful tool for planning implementation strategies.

Five W’s and one H


1. Role play.

2. Developed looking at the way Walt Disney was so successful in turning fantasies into reality.

3. Three vital roles:

– Dreamer

– Realist

– Critic

4. Remember that a critic is someone who should evaluate – not just point out what is wrong.

Disney Creativity Technique


> Dreamer: This is the visionary that produces the big

picture. With no boundaries, limitations or restraints.

> Realist: This is who organizes and evaluates the plans

to determine what is realistic. Thinks constructively and

devises an action plan. Establishes time frames and

milestones for progress. Makes sure it can be initiated

and maintained by the appropriate person or group.

> Critic: This is who tests the plan, looks for problems,

difficulties and unintended consequences. Thinks of what

could go wrong, what is missing, what the spins-offs will

be.

Disney Creativity Technique


ANA-

LYTIC

EMO-

TIONAL

CRITI-

CAL

OPTI-

MISTIC

CREA-

TIVE

ORGA-

NIZER

Six thinking hats


1. The six hats represent six modes of thinking.

2. The six hats system encourages performance rather than ego defense.

3. People can contribute under any hat even though they personally support other view.

4. The thinkers should put on or take off hats to indicate the type of thinking.

Six thinking hats


> Optimistic thinking, speculative attitude.

> Emotional thinking, intuition, subjective attitude.

> Creative, associative thinking, constructive attitude.

> Organizing thinking, oversight, big-picture attitude.

> Analytic thinking, facts and figures, objective attitude.

> Critical thinking, risks, problems, objective attitude.

Six thinking hats

Speculative

Conservative


SCAMPER helps to generates alternative ideas.

After defining the challenge, ask the following questions at each stage of the session:

> S – Substitute something

> C – Combine it with something else

> A – Adapt something to it

> M – Modify or Magnify it

> P – Put it to some other use

> E – Eliminate something

> R – Reverse or Rearrange it

SCAMPER rises new ideas at each stage.

SCAMPER


> What/who can be substituted?

> Can (the) rules be changed?

> Other ingredient? Other material?

> Other process or procedure?

> Other place?

> Other approach?

> What else instead?

ScamperSubstitute


> What ideas can be combined?

> What purposes can be combined?

> Combine assortments? Ensembles?

> Combine units?

> What other article could be merged with this?

> Can be packaged as a combination?

> What can be combined to multiply possible uses?

ScamperCombine


> What else is like this?

> What other idea does this suggest?

> Does the past offer a parallel?

> What idea could we incorporate?

> What else could be adapted?

> What different contexts can we put our concept in?

> What ideas outside our field can we incorporate?

ScamperAdapt


> What can be made larger, or extended?

> What can be exaggerated? Overstated?

> What can be added? More time? Higher?...

> What can add extra value? Extra features?

> How can things be altered for the better?

> What can be changed? Meaning, color, sound…?

> Change name?

> Changes in the plan? Process? Marketing?

> Other form? Other package?

ScamperMagnify, Modify


> What else can this be used for?

> Are there new ways to use it?

> Other uses if modified?

> Other uses if in other context? Place?

> What else could be made from this?

> Other extensions? Other features?

> Other Markets?

ScamperPut to other uses


> What if this were smaller?

> What should we omit?

> Should we divide it? Split it up?

> Understate?

> Streamline? Make miniature? Compact?

> Subtract? Delete?

> Can (the) rules be eliminated?

> What is not necessary? Convenient?

ScamperEliminate


> What other arrangement may be better?

> Interchange components?

> Other pattern? Other layout? Other sequence?

> Change pace? Change schedule?

> What are the opposites? The negatives?

> Should we turn it around? Up side down?

> Consider it backwards?

> Reverse roles?

> Do the unexpected?

ScamperRearrange, Reverse


> Russian creation, widely used today

> It is an attempt to improve on a random approach to innovation and invention

> It structures the creativity in paths which have been shown to yield results

> Often it can be shown that the solution to a problem was easy, if the techniques from other domains were known

> In many cases the same basic approach is used time and time again

> It is also possible to classify problems and solutions into groups, and to simply examine a predefined list of possible solutions to that particular type of problem.

TRIZ


> Algorithm within TRIZ for complex problems.

> Multi-step process asking questions that integrates pieces of TRIZ.

> ARIZ features:

Process of problem reformulations

Logical and disciplined

Main TRIZ method for solving conflicts.

> ARIZ utilizes:

Contradictions, scientific effects and standard solutions

> ARIZ is more than 50% problem reformulation! It is only through this guided reformulation that complex problems can be solved.

ARIZ


> Leonardo Da Vinci was the first to document a CPS approach*

Curiosita: Curiosity.

Dimonstrazione: Test knowledge through experience.

Sensazione: Continuous refinement of the senses for clarifying

experience.

Sfumato: Embracement of ambiguity, paradox and uncertainty.

Arte/Scienza: Balance between science and art, logic and imagination

(“whole brain thinking”).

Corporalita: Cultivation of ambidexterity and fitness.

Connessione: Recognition for the connectedness of all things and

phenomena („systems thinking“).

Creative Problem Solving (CPS)

*) Source: http://blog.thinkforachange.com/2010/12/20/creative-problem-solving-cps-throughout-history.aspx.


Participant Team ManagementExperts

5

1. Identify a problem or a new idea.

2. Clarify the problem or new idea

3. Incubate potential solutions (allow sufficient time)

4. Share and combine ideas. Determine most promising ideas.

5. Select ideas.

6. Try out ideas / Create prototypes.

7. Learn from ideas.

1

2

3

4

5 5

6

7

Creative Problem Solving (CPS)

11

2

3

4

5

6

77

• This model can be used to describe many CPS approaches.

7 7

6

Ideation

Concept

3

6


The first step

Any individual can

improve his

creativity

Creativity is

improved further

working in teams,

using creativity

methodology

Culture,

management


can move creativity

to this stage

INDIVIDUAL

CREATIVITY

TEAM

CREATIVITY

COMPANY

CREATIVITY

Ideation (company)

Creativity and ideation in a companyCompany collective creativity


VT Innovation Proposal

INDIVIDUAL CREATIVITY, TEAM CREATIVITY,

COMPANY CREATIVITY

Enterprise Strategy

KNOWLEDGE IT TOOLSINNOVATION

CULTUREINNOVATION

STRATEGY

MOTIVATION

Enterprise Culture

Company creativityDrivers


VT Innovation Proposal

INDIVIDUAL, TEAM AND COMPANY CREATIVITY

Effective and Efficient

Enteprie Strategy

Enterprise Culture

KNOWLEDGE IT TOOLSINNOVATION

CULTURE

3

1

2

Establish the right culture where employees are empowered and success is recognised

Align enterprise and innovation strategy

Exploit knowledge and intelligence of employees, customers and partners

Use state-of-the-art IT tools

Motivated employees create more and better

4

5

1

2

3

INNOVATION

STRATEGY

42

VT Innovation Proposal MOTIVATION5

1

Company creativityDrivers


Efficiency is doing the thing right.

Effectiveness is doing the right thing.

Efficiency and effectivenessPeter Drucker

Peter Drucker (November 19, 1909 – November 11, 2005): American management consultant, educator, and author, whose writings contributed to the foundations of the modern business corporation. He invented the concept known as management by objectives.Source: Wikipedia


Company creativityEfficiency and effectiveness

Efficiency

Many Ideas

Engagement

Motivation

CULTURES

Effectiveness

Right answers

Right questions

Coherent goals

STRATEGIES


> Idea campaigns

A problem, question or challenge is formulated

Specific persons, also external ones, are invited

The team works in a series of guided meetings on the problem

> Week problems

Every week a new problem is formulated and ideas are

collected at the end of the week

> Coffee-problems

Employees pay their coffees with ideas

> Individual idea generation

Spontaneous, e.g. BBB, dreams

Purposeful, e.g. mind mapping

Company creativity practices


Large amounts of ideas are generated regularly

spontaneously or

as answers to questions or problems,

gathered without discrimination,

and selected according to pre-defined criteria.

Use of resources should be minimized.

Idea Management / IdeationDefinition and description

Idea Management (IM) is the systematic processof creating, gathering, and selecting ideas according to pre-defined criteria.

Definition

Description


Idea ManagementProcess

Individual Creativity

- Spontanous

- purposeful

Team Creativity

- Idea campaigns

P r

o b

l e

m s

G A

T H

E R

S E

L E

C T

D E

V E

L O

P

F E E D B A C K L O O P

Soft information

Ideas


Ideas and knowledge

Fantasy

Logic

Knowledge

Idea


Knowledge management

Employee‘s knowledge Employee‘s skills External knowledge

Partner Supplier Institutions

D A T A B A S E


> Software that supports the idea management process

> All users, participants or contributors can

Post (propose) ideas

Comment ideas from others

Propose changes to ideas

Vote for ideas

> Delivers useful information for the selection of ideas

Idea popularity: Number of comments, contributors or votes

> Boosts efficiency and speed

Participants get different types of alerts, e.g. about new ideas

or comments.

Idea Management SystemPrinciples


> Solves coordination problems

Relevant contributors can access campaigns or "questions of

the week" and co-operate

> Solves synchronization problems One contributor "stores" his contribution in the system and

others can read and comment it later

> Mobile ideation (mobile terminals)

The systems provide interfaces to mobile devices

> Typical example: Support of campaigns

Participants of a campaign can be freely determined

> Idea management systems support idea challenges as well as week and coffee problem practices

Idea Management SystemAdvantages


Promote idea Demote idea

Comment history

Statistics

Idea rank

Promotions

Demotions

Comments

Promotions rank

Comments rank

Idea

Details

Follow this idea

Send this idea to a friend

Your comment

Idea categories (Tags)

Idea Management System Template (1/3)

Campaign

Nullam a tempus quam. Ut odio dui, vehicula vitae sollicitudin ac, vulputate a nisi.

Campaign closing date

30.06.2014, 12:00

Idea author

Attachment



Comment history

Statistics

Idea rank

Promotions

Demotions

Comments

Promotions rank

Comments rank

Idea

Nullam a tempus quam. Ut odio dui, vehiculasollicitudin ac, vulputate a nisi.

Details

Lorem ipsum dolor sit amet, consectetur adipiscingelit. Aenean molestie lacinia sapien, nec aliquamarcu malesuada sed. Sed consectetur tellus eu odiopulvinar sollicitudin dictum enim sodales.

Follow this idea


Your comment


lorem, ipsum, tempus, vehicula, vitae


Campaign



30.06.2013, 12:00

Idea author

Maria, 15.04.2012, 14:30

Attachment



Comment history

Alex, 15.04.2012, 16:33Nam quis posuere eros. Aliquam ac enim lacus. Fusce sit amet lorem mi.Anna, 16.04.2012, 9:27Nulla a lectus quis quam porta interdum.Robert, 16.04.2012, 11:33Curabitur vulputate ullamcorper elit, et pellentesqueeros mollis nec. Etiam placerat feugiat diam sed pulvinar. Aenean tristique, diam id volutpat pellentesque,

Statistics

Idea rank 8

Promotions 33

Demotions 7

Comments 11

Promotions rank 5

Comments rank 6

Idea

Nullam a tempus quam. Ut odio dui, vehiculasollicitudin ac, vulputate a nisi.

Details

Lorem ipsum dolor sit amet, consectetur adipiscingelit. Aenean molestie lacinia sapien, nec aliquamarcu malesuada sed. Sed consectetur tellus eu odiopulvinar sollicitudin dictum enim sodales.

Follow this idea


Your comment


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Campaign



30.06.2013, 12:00

Idea author

Maria, 15.04.2012, 14:30

Attachment


> Introduction







> Open innovation




Content


Innovation Culture

> Definitions

> Innovation Roles


Innovation Culture

INNOVATION

PROCESS

STRATEGY

CULTURE

CREATIVITY,IDEATION


Enterprise

Development,

Implementation

Innovation Culture

Innovation Strategy


Open Innovation

Company Strategy

Company Culture

New ideas,

idea

development

Innovation Culture


Innovation Culture

Source: www.wikipedia.org

*) Also organisational culture

Enterprise and Innovation Culture

are the most fundamental contributors

to successful Innovation

Culture* is the set of shared values, attitudes,

goals, and practices that characterizes an

Institution, organization or group


Innovation Management Layers

Innovation process, costs, time, quality, performance.

Resources, technology, knowledge, markets, supplier, partners, competitors.

Values, mission, vision.

Operative

Strategic

Normative


Organizational Culture

Artifacts include any tangible or verbally identifiable elements in an organization. Furniture, dress code are examples. Artifacts are the visible elements in a culture and they can be recognized by people not part of the culture.

Values are the rules that use/allow people to decide what is good and what not, what to do. This can be expressed in official philosophies and public statements.

Shared Basic Assumptions are the deeply embedded, taken-for-granted behaviourswhich is usually unconscious, but constitute the essence of culture.

Artifacts

Values

Shared basic assumptions


Innovation Culture – Main Elements


Innovation Roles

Innovators

Innovation Sponsor(Chief Innovation Officer)

Subject Matter Experts

(SMEs)

Innovation Champion

Center

of Innovation Excellence

DO

ING

SU

PP

OR

T


Innovation Roles

• Imagine

• Collaborate

• Execute

• Support Innovators (SMEs)

Innovators, SMEs

• Secures funding and

resources

• Provides strategic alignment

• Approves plans and budgets

• Supports innovation

champion

Innovation Sponsor

• Protects ideas

• Takes care of Center of

Innovation Excellence

• Owns innovation

systems/tools

Innovation Champion

• Facilitates subject matter

experts

• Owns document repository

• Owns standards and metrics

• Owns training

• Facilitates creative sessions

Center of Innov. Excellence


Innovators’ Role


Why not?

Some people see things that are

and ask, Why?

Some people dream of things that never were

and ask, Why not?

Some people have to go to work

and don't have time for all that.George Carlin


Innovator’s Skills


Innovation Champion’s Responsibilities (1/3)


Center of Innovation Excellence (1/2)

Mission

Facilitate and take care of the Innovation Activities


Innovation Center of Excellence (2/2)


Innovation Sponsor‘s Responsibilities

The Innovation Sponsor

must belong to Top Management

and have direct access to CEO

• Secures funding and resources for innovation activities

• Provides strategic alignment between enterprise culture and

innovation culture

• Represents ideas and projects at management level

• Ensures communication from management level

• Ensures culture propagation from management level: “Walk the

Talk”

• Approves plans, road maps and budgets

• Supports innovation champion and center of innovation excellence


> Introduction







> Open innovation




Content


Innovation Strategy

INNOVATION

PROCESS

STRATEGY

CULTURE

CREATIVITY,IDEATION


Enterprise StructrureExample

*) Marketing and Technology

Supply

Chain

Management

Development *

Production DistributionCustomer

Care

Sales & Marketing

HR

Finance

Management

Customer

Customer

Cu

sto

merC

usto

mer


Enterprise

Development,

Implementation

Innovation Culture

Innovation Strategy


Open Innovation

Company Strategy

Company Culture

New ideas,

idea

development

Innovation Strategy


Strategy concepts

Strategy definition:„How to… targets“

Vision – Mission –Goals – Strategy –Operations


Strategy concepts

Strategy can beexpressed as:„For the Customer,against the Competition,under the Law,through the Company.“


Strategy concepts

Good Strategies optimize

Near term value, Mid term value, Long term value.


Strategic focus

Ensures Enterprisesurvival,maximizesprofit

MaximizesShareholdervalue

Maximizes value for Stakeholders:- Customer- Shareholder- Employees- Society- Humanity/ next

generations(Sustainability)


Factors with Impact on Innovation Strategy

> Customer expectations

> Financial pressure to reduce costs and increase efficiency

> Increased competition: Products, costs, quality

> Shorter product life cycles

> Megatrends: Globalization, demographic changes, sustainability…

> Government regulation

> Digital economy (e.g. mobile, social networks, cloud computing, BI)


Innovation Strategy – Oversight


Innovation Elements

Enterprise

Innovation Process

Innovation Tools*

Innovation Culture

Innovation Strategy

External:

- R&D

- Suppliers

- Partners

Open Innovation

Enterprise Strategy

*) Innovation Tools: Idea Management, Innovation Portfolio Management,

Project Management, Knowledge and Skills Management

Enterprise Culture


Enterprise Strategy and Innovation Strategy

• Defines how to meet the

enterprise goals

• Through improvement of

• competitive edge

• market share

• revenue and margin growth

• Enterprise goals include the

fulfilment of expectations of

enterprise stakeholders:

• Customers

• Investors

• Employees

• State / Government

• Environment (Sustainability)

• Determines “Which“ are the

innovation goals: When and where

innovation is required to fulfil the

enterprise strategy

Enterprise Strategy

• Defines “How“ to meet the

innovation goals

• Is a part of the overall enterprise

strategy

• Ensures its alignment with

enterprise strategy

• Guides the selection of innovation

target areas to maximise

competitive advantage

• Guides decisions on resource

allocation for innovation activities

• Guides management of chances

and risks related to innovation,

R&D and New Product

Development (NPD).

Innovation Strategy


Radical

Incremental and Radical Innovations

Incremental

Low High

Hig

h L

owP

rod

uct

ch

an

ge /

Im

pact

Technology change


Disruptive Innovation – Example: Hard Drives

Source: The Innovators Dilema: When New Technologies Cause Great Firms to Fail, Clayton M. Christensen, Harvard Business School Press, 1997

Desktop PC s ** Potables ** Notebooks **

10

100

1000

Hard

Dis

k C

apacity (

MB

)

1975 1980 1985 1990Year

*) Drive technology

**) Market demand


time

pe

rfo

rma

nce

• Current technology / features

exceed demand of a

considerable amount of

customers

• Disruptive technology offers

products with poor but

acceptable performance in

some features but advantage

in others, typically price

• Features of disruptive

technologies are improved with

time

Examples

• Mechanical diggers with

hydraulic arms (light)

• Computer disk drives

• HP’s inkjet printers

• IBM’s PCs

High-end

customer demand

Disruptive Innovations

Low-end

customer demand

Sustaining Technology

Disruptive Technology

Low-end customer

migration



Dimension Sustaining

Innovations

Low-End

Disruptions

New-Market

Disruptions

Targeted

Performance

Performance must

satisfy most

demanding

customers

Performance

good enough to

satisfy customers

at the low end of

the market

Low performance in

traditional attributes,

but improved

performance in new

attributes

Targeted

Customers

The most

attractive/profitable

customers

Over-served

customers in the

low end

Non-customers:

Historically lack of

money or skills to

use the product

Impact on

Business

Model

Improves/maintains

profit margins by

exploiting existing

processes and cost

structures

New operating or

financial approach

allow higher asset

utilisation and

attractive margins

at low prices

Business model

must make profit at

lower price per unit

sold, also at initially

low production

volumes


> Seeking cost advantages over competition

> Increasing production efficiency changing processes and organisation

> Making minor modifications to designs

> Adding features to existing products

> Re-innovating – making changes to newly launched products

> Developing a reputation for product quality – branding

> Learning from customers and competitors

What Incremental Innovators Do


> Being open to new ideas from outside firm and sector

> Building networks and alliances outside core business

> Continuously scanning technological and markets environments

> Investing in a technology portfolio

> Engaging parts of the organisation in exploratory work

> Bringing new capabilities by acquisition or hiring

> Being aware of new patterns of customer behaviour

> Changing the „way of doing things“ when required – process innovation

What Radical and Disruptive Innovators Do


Blue Ocean Strategy (BOS)

> BOS is the result of a study of 150 strategic moves

> BOS is the simultaneous pursuit of differentiation and low cost

> The aim of BOS is not to out-perform the competition, but to create

new market space (the “Blue Ocean”), thereby making the

competition irrelevant

> While innovation has been seen as a random/experimental process,

BOS offers systematic and reproducible methodologies and

processes

> BOS frameworks include: strategy canvas, value curve, four actions

framework, six paths, buyer utility map, and blue ocean idea index.

> These frameworks and tools are designed to be visual

> BOS covers both strategy formulation and strategy execution

Source: www.blueoceanstrategy.com, © Kim & Mauborgne, 2012



RED OCEAN STRATEGY

Compete in existing market space

Beat the competition

Focus on existing customers

Exploit existing demand

Make the value-cost tradeoff (create

greater value to customers at a

higher cost or create reasonable

value at a lower cost)

Align the whole system of a firm’s

activities with its strategic choice of

differentiation or low cost

BLUE OCEAN STRATEGY

Create uncontested market space

Make the competition irrelevant

Focus on non-customers

Create and capture new demand

Break the value-cost tradeoff (Seek

greater value to customers and low

cost simultaneously)

Align the whole system of a firm’s

activities in pursuit of differentiation

and low cost.

Blue Ocean Strategy (BOS)


Blue Ocean Innovation – Value Innovation


> Value Innovation is the simultaneous pursuit of differentiation and low cost.

> Value Innovation focuses on making the competition irrelevant by creating a

leap of value for buyers and for the company, thereby opening up new and

uncontested market space.


Blue Ocean Strategy – 4 Actions Framework


1

2

3

4

Dr. Alejandro Zalnieriunas Slide 242TU Dresden Slide 242

Blue Ocean Strategy – Strategy Canvas

> It captures the current state of play in the known market space. This allows

to understand where the competition is currently investing and the factors

that the industry competes on

> It propels to action by reorienting the focus from competitors to alternatives

and from customers to noncustomers of the industry


1

2

3

4

1

2

41

2

3

4

4 Actions

Reduce

Eliminate

Raise

Create


Blue Ocean Strategy – Buyer Utility Map

> This map shows the full range of utility propositions and helps to take

decisions on positioning products or services

> The “Buyer Utility Map”

outlines all the levers

companies can pull to

deliver utility to buyers

(The “Six Utility Levers”)

as well as the different

experiences buyers can

have of a product or

service (The “Buyer

Experience Cycle”)


BOS – Pioneer-Migrator-Settler-Map (PMS)

> The PMS-map shows the company's current and planned portfolios and the

chances to achieve profitable growth moving from settler (me-too business)

to migrator (better offers than most in the market place) to pioneers which

are the businesses that offer unprecedented value (blue ocean strategies)



BOS – Example: [yellow tail] wine (1/2)

> Australian Casella Wines created 2001 its [yellow tail] wine which became the fastest growing brand in the histories of the Australian and the U.S. wine industries and the number one imported wine into the United States

> Their strategy to create a blue ocean was:

1) Reduced: Customer confusion. Casella Wines limited their offerings to just one white wine and one red wine

2) Eliminated: Focus from discussions on aging, complexity and tannin, which intimidated customers

3) Raised: Involvement of retailers by giving retail employees Australian outback clothing that made [yellow tail] wine seem friendly

4) Created: 3 new customer experiences for wine drinking: Easy drinking (no complex appreciation), ease of selection, and a sense of fun and adventure


E

r

R

C



BOS – Example: [yellow tail] (2/2)

1

2

3

4

Reduced

Eliminated

Raised

Created

1112 2 2 4 4 4

Involvement of retailers through Australian outback clothing3


• Fully new products, services, processes, business models

• Lead to large impact on markets or performance

• Related uncertainty and therefore chances and risks are high

• Small improvements of products, services, processes, business models

• Lead to small impact on markets or performance

• Related uncertainty and therefore chances and risks are small

Innovation Types – Summary

Radical InnovationsIncremental Innovations

• Disruptive technology is usually more simple, more convenient for users and mostly less expensive

• The technology doesn`t cover the requirements of high end customers

• The technology covers the requirements of low end customers, who adopt the technology

• The disruptive technology is further developed and captures more and more customer segments as time evolves


• Create uncontested market space

• Make the competition irrelevant

• Focus on non-customers

• Create and capture new demand

• Break the value-cost tradeoff (Seek greater value to customers and low cost simultaneously)

• Align the whole system of a firm’s activities in pursuit of differentiation and low cost.

Value Innovations


Diffusion of Innovations

Source: en.wikipedia.org

Innovators

2,5%

Early

Adopters

13,5%

Early

Majority

34%

Late

Majority

34%

Laggards

16%

0

25

50

75

100M

ark

et s

ha

re (%

)


“Total Investment” or “Time”

Perf

orm

an

ce

Focus along ‘S’ curves

• Emerging: R&D masters technology

• Pacing: Technology competence and ability to supply

• Key: Feature improvement and market share growth

• Base: Focus moves from features and performance to other aspects like

service and pricing

Technology ‘S‘ Curves

Pacing

Base

Key

Emerging


Technology Evolution and Substitution

Perf

orm

an

ce

Customer Acceptance Average

2nd Technology

1st Technology

Customer Migration

Time

3rd Technology

Customer Acceptance Distribution


Innovation Strategies according to Pace

Required process complexity

Re

qu

ire

d r

an

ge

an

d d

ep

th o

f re

so

urc

es

Passive

Reactive(follower)

Active(fast follower)

Proactive(Leader)


Innovation Strategy – Resources


Strategic Analysis – BCG Matrix

QUESTION MARKS STARS

POOR DOGS CASH COWS

Mark

et

gro

wth

Market share

Invest

selectivelyInvest

Leave

market

Get

profit

Low High

Low

H

igh


Strategic Analysis – Technology Matrix

Tech

no

log

y a

ttra

cti

ven

es

s

Strength of own Resources

Low Medium High

Low

Mediu

m

Hig

h


Strategic Analysis – Chance-Risk-Matrix

Avoid

Decide

carefully

Ch

an

ce*

Risk*

*) Can be defined through

likelihoods of appropriate

events

Continue

Decide

Low High

Low

H

igh

Stop


Lecture 5


> Introduction







> Open innovation




Content


> Introduction

Inputs, enterprise and outputs

> Project and portfolio management

Objectives, characterization

Project types and their evaluation

> Process stages in detail

> Evaluation of innovations

> Evaluation of innovation process

Innovation Processes


Innovation Process in “Innovation 4.0”

INNOVATION4.0

PROCESS

STRATEGY

CULTURE



mentation

GCGI GL

Life

Cycle

FeasibilityConcept

GF

Slide 264

Products,

Services,

Business Models,

Processes,

Savings

GO

Innovation Process – Phases and Gates



mentation

Innovation ProcessPhase Characteristics

Low Failure Costs

Low Risks

Freedom

Creativity

Controlled Chaos

Loose Control

High Failure Costs

High Risks

Discipline

Structure

Analytics

Tight Control

Very High Failure Costs

No Room for wrong Decisions


Project Management Goals

Deliver Project:

- In Functionality and Quality1

- In Time

- In Budget

Project Management (PM)

Time

Functionality / Quality

Budget

PM Triangle

Note 1) “Functionality” means WHAT is to be delivered, “Quality” means HOW (close to functionality) must be delivered


> Initial plan

Functionality / quality (specifications), time

Resources and budget allocation

> Functionality / quality monitoring and forecasting ; exception management

> Time plan monitoring and forecasting; exception management

Progress (compared to plan)

Milestones

Resources

> Budget plan monitoring and forecasting ; exception management

Costs (compared to budgets)

Project Management Principles


Project 1

Project 2

Project N

Project Portfolio

Project Portfolio Management (PPM)GOAL: Optimization of expected portfolio value


Project Portfolio Management (PPM)

Ideas, project proposals

ResourcesPPMEvaluationDecisionsPMResource allocation

Knowledge- Technology- Markets

ExecutedProjects

Major challenge: Decide on resource allocation.

Interdisciplinary teams


Effectiveness and EfficiencyRole of PM and PPM

Need

for

Effectiveness

(WHAT)

C h

a l l

e n

g e

s

Need

for

Efficiency

(HOW)

Ideation,

Ideas,

Proposals,

PPM

Innovation

Process,

PM,

PPM

Right Ideas,

Right Projects,

NPV, ROI,

Value

Functionality /

Quality,

Time-to-Market,

in Budget

Effectiveness ~ Doing right things. Efficiency ~ Doing things right.



mentation

Life

Cycle

FeasibilityConcept

New ideas

Campaigns

Purpose Qualify and select ideas

Input Spontaneous ideas, campaigns (problems to solve)

Tasks Idea incubation, combination, discussion, development, selection

Tools Creativity techniques, Idea Management Systems

Decision (GC) Management, cross-functional team, experts’ advice

Incubate,

Combine

Discuss,

Develop

Selected

Ideas

Innovation ProcessIdeas Phase


Innovation ProcessIdeas Phase



mentation

Life

Cycle

FeasibilityConcept

converge Selected

Ideas

Purpose Check idea plausibility (low effort)

Input Selected ideas from the ideas phase

Tasks Plausibility study (Commercial and technical, rough estimate of

costs and benefit), build prototype or proof-of-concept (PoC),

perform trial

Tools Project portfolio management, project management, technical

facilities/lab, instruments for benefit estimation, e.g. market studies

Decision (GF) Management and cross-functional team based on trial results and

plausibility study

Plausibility

Study

Prototypes

Trials

Innovation ProcessConcept Phase


Innovation ProcessConcept Phase



mentation

Life

Cycle

FeasibilityConcept

Plausibility

Study

Purpose Select ideas/projects to be implemented and launched

Input Plausibility study with commercial and technical information

Tasks Create business case with high accuracy estimates for costs and

benefits, create technical specifications for the implementation

phase, assess risk

Tools Project portfolio management, project management, instruments for

benefit estimation, co-operation with suppliers for costs estimation

Decision (GI) Management and cross-functional team based on business case

risks and overall project portfolio

Business Case

Technical SpecificationsPlausibility

Study

Innovation ProcessFeasibility Phase


*) Delivers „Feasibility Studies“ for selected ideas

Innovation ProcessFeasibility Phase



mentation

Life

Cycle

FeasibilityConcept

Business Case

Technical Specifications

Purpose Create final solution for operations (technical and commercial)

Input Business case, technical specifications

Tasks Create and integrate technical solution, define commercial terms

(pricing, sales campaigns, adverts), train technical and sales staff

Tools Project portfolio management, project management, co-operation

with suppliers

Decision (GL) Management and marketing or technology depending on kind of

project

Final Technical Solution

Commercial Terms

Innovation ProcessImplementation Phase


Final solution: Efficient1, scalable, reliable (high MTBF2), maintainable (short

MTTR3). High availability (low “down time”), an ultimate goal, arises from good MTBF

and good MTTR (failures occur seldom and are repaired quickly).

1) Good ratio of output (e.g. revenues, savings) to resources (e.g. time, invest)

2) Mean Time Between Failures

3) Mean Time To Repair

Innovation ProcessImplementation Phase



mentation

Life

Cycle

FeasibilityConcept

TU Dresden Alejandro Zalnieriunas Slide 279

Technical Solution

Commercial TermsGo live

Operate

Optimisation

Maintenance

Purpose Go live (Product or service launch, start of operations) and

follow up

Input Technical solution, commercial terms

Tasks Go live, optimisation and maintenance of products, services and

solutions, measurement of performance and comparison with

estimates made during concept and feasibility phases

Tools Project portfolio management, metrics

Decision (GO) Take from market or operations: Management and marketing or

technology depending on kind of project

Innovation ProcessLife Cycle


> Begins with launch to customers or other users, e.g. employees

> Focus on operation excellence and customer care

Innovation ProcessLife Cycle


Enterprise

Process

Strategies

Cultures

INPUTS

- Markets

- Government

policies,

regulation

- Access to

knowhow, IPR

ENTERPRISE

- Process

- Cultures

- Strategies

- Project management

- Portfolio management

OUTPUTS

(Innovations)

- Products

- Services

- Business Models

- Processes

- Solutions

Evaluation, Valuation, Metrics

Innovation Evaluation, Valuation and MetricsInputs, Enterprise, Outputs

Folie 281


Input metrics, e.g.R&D budget as %

of revenues

% of employees

involved in innovation

Output metrics, e.g.% of products launched

in the last 2-3 years

% of revenues and

margin generated by

new products

Project metrics, e.g.Net Present Value, ROI

Intern Rate of Return

Time to Market

Time to break even

Process metrics, e.g.Averaged project metrics

% of projects that entered

concept phase and led to

commercial success

Innovation Project and Process EvaluationMeasures / metrics for the different Phases


Examles of Project Metrics

> Net Present Value (NPV)

> NPV/Invest (Return on Invest, ROI)

> Intern Rate of Return (IRR)

> Time to market

> Time to break even

> % of project budget spent

> % of planed project execution time actually needed

> % of planed functionality/performance/quality actually achieved (conformance to requirements)


Examples of Process Metrics

> Weighted-averaged project metrics (% of time, budget and requirements compliance)

> Weighted-averaged project metrics (Time-to-market, time-to-break-even)

> % of projects that concluded the development phase successfully

> % of projects that entered the development phase and led to commercial success

> Statistics on NPVs, ROIs and IIRs

> Comparisons of calculated and actual business cases


Examples of Input Metrics

> % of company budget dedicated to innovation

> % of employees involved in innovation

> % of total available employee time dedicated to innovation

> Number of ideas per employee involved in innovation per year

> Number of external ideas per source (customer, supplier etc.) per year

> % of projects delayed or stopped due to lack of financial resources

> % of projects delayed or stopped due to lack of employee availability


Examples of Output Metrics

> Number of products and services that have been launched in the last N (e.g. 2-3) years

> % of live products and services that have been launched in the last N years

> % of live products’ and services’ revenues and margin that is generated by products that have been launched in the last N years

> Number of products and services that have been launched in the last N (e.g. 2-3) years compared to competitors

> Cost savings generated by innovations that are not older than N years

Dr. Alejandro Zalnieriunas Slide 287TU Dresden Slide 287

Examples of further Metrics

> Number of patents granted in one year.

> Number of patents applications in one year

> Number of patents related to the number of R&D employees


> Strategy fit

Customer requirements

Competitor products

Product portfolio, cannibalization

> Technology and supply chain fit

> Enviromental / Sustainability fit

Raw materials, energy, reuse, recycling, …

Evaluation of InnovationsNon-Financial


> Net Present Value (NPV)

> Return on Invest (ROI)

> Intern Rate of Return (IRR)

> Time to Break Even (TBE, tBE)

> Auxiliary

Cash Flow (CF)

Discounted Cash Flow (DCF)

Evaluation of InnovationsFinancial Measures


> Cash Flow (CF): Balance of earnings (+) and expenditures (-) in a certain time period, e.g. quarter or year. Also called cash in-flow.

> Discounted Cash Flow (DCF): The value that a CF at time tc

represents at a reference time, say t0. The DCF is calculated with an interest rate that equals the “cost of money” that the enterprise pays. Typical cases are bonds where enterprises pay interests to investors.

> Net Present Value (NPV): The NPV is the sum of the DCFs of a project. NPV is a measure for the value of a project that takes the distribution of CFs over time into consideration. This is necessary because early CFs impact value of projects more strongly than later CFs.

> Example: If an enterprise pays 2 Euros at time te to investors that paid 1 Euro for a bond at time tb then it makes sense to choose a discount rate so that the DCF of 2 Euros at time te is 1 Euro.

Financial measures (1/4)


> The formulas calculate the NPVs as the sums of the DCFs. „y“ relates to yearly calculations, „Q“ to quarterly calculations

> 1/(1+r) is the discount factor. r is the „discount rate“.

> Formulas for the calculation of NPV have the following form. The difference between the two formulas is that the first one utilizes annual CFs and te second one quarterly CFs




> “Time to Break Even“ (tBE)or „Pay-Back Time“ is the time span between the begin of a investment, practically the beginning of the development phase, and the date when the cumulated cash flow becomes zero, i.e. the cumulated revenues just compensate the cumulated costs. During this period of time money is needed to finance the project

> „Internal Rate of Return“ (IRR) is the value of the “discount rate” for which the NPV equals zero, i.e. a savings account with the interest rate „IRR“ would produce the same returns like the project.

> „Return on Invest“ (ROI) is the quotient between NPV and investment (CAPEX).

> Most frequently used measures in PPM: ROI, IRR, NPV, tBE


Financial Measures (4/4)CF, DCF, NPV, tBE (from white board)

management of technology innovation - tu dresden of technology innovation summer 2015 dr.-ing....

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