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TRANSCRIPT
Innovation Management – A New Concept for SME Development Prof. Dr. Utz Dornberger
15/03/2013
Structure
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The innovation process and the innovation management in companies
Critical success factors for innovation management
Time-to-market management
Price-to-market management
Customer integration
The integration of innovation management support measures in SME promotion activities
Training in innovation management for SMEs, BDS and Universities
Innovation awards
INNOVATION PROCESS AND INNOVATION MANAGEMENT
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Innovation is more than just a new product
... an invention/idea of
• new products, processes, production methods, organizational forms
or
• an elementary improvement of a system
and its successful
commercialization in the market
An innovation is ...
Service Innovation
e.g. Google and Facebook
Process Innovation
e.g. MicroReaction Technology
Product Innovation e.g. BASF’s Hexamoll
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Incremental Innovation Radical (disruptive) Innovation
Time
Level of Innovation
Innovation – One Step forward or a „Quantum Jump“?
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Radical Innovations Incremental Innovations
require a sharp breach with conventional routines and traditional knowledge Prerequisite are deregulated labour markets and quick access to risk capital
Further development and improvement of already established products and production processes Acquisition of cumulative knowledge, prerequisite are long-term working contracts and stable career-structures
Typical for new technologies such as Software, Biotechnology, new
services, etc…
Typical for established industries, such as mechanical engineering,
chemical industry, etc... strong in USA strong in Germany, Sweden,
Switzerland
Innovation – One Step forward or a „Quantum Jump“?
The Innovation Process
FRONT END NEW PRODUCT DEVELOPMENT
Opportunity Identification
Concept Development
Idea Management
COMERCIALIZATION
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Innovation Management
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We can define innovation management as "the operative configuration of the processes of innovation."
Decisions on the implementation of innovations show specific characteristics which differ from routine tasks in the administration: Complexity/ multi-step Orientation towards future Uncertainty and risk Creativity/imposition
The task of the innovation management is "a process-oriented work" and not an isolated work, being responsible for a unifying task (and integral), because in the management of innovation processes different departments are involved.
This "interdisciplinary" work is one of the key success factors for innovation.
SUCCESS FACTORS IN INNOVATION MANAGEMENT
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Challanges in Innovation Management
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Spending on
unsuccessful projects
Spending on
successful projects
Increased innovation effectiveness
High failure rates in innovation projects
Up to 90% in radical innovations (new for the world)
Up to 50% in incremental innovations
Management activity with the highest failure rate
Germany and Japan are leaders in innovation management (especially incremental innovation management)
Customer Integration
Price-To-Market Time-To-Market
Success Factors of Innovation Management
Creativity
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Spending on
unsuccessful projects
Spending on
successful projects
Increased innovation effectiveness
Promotion of Creativity
Creativity management is an important activity in companies
Importance of innovation culture
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„Imagination is more important than
knowledge.“
The Time Factor in the Innovation Process
Time
Profit/Sales Introduction Stage
Profit Sales
Growth Stage
Maturation Stage
Declining Stage
Invention
Product Life Cycle
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The Time Factor in the Innovation Process
Product Life Cycle
Product Generation “Work Station”
Product Generation “Personal Computer”
Product Generation “Intermediate data
technology”
Industry’s life cycle
Life cycle of Individual products
Life cycle of Product Generation
Construction Automobile Machinery Electronics IT Chemicals
90s 9,3 7,3 7,1 6,3 5,3 5,5
70s 13,0 10,9 12,0 11,6 11,1 9,8
Decreasing duration of the product life cycle
Increasing time for developing new products
Companies have every year less time to develop a new product version
The Time Factor in the Innovation Process
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Costs of the roof of the Olympic Stadium in Munich:
(Mio. DM)
The plan was exceeded by 860 % 0
20406080
100120140160180
Planned Cost
Real Costs
The Cost/Price Factor in the Innovation Process
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Exceeding costs is one of the most important factor for innovation project failure
German Example:
Customer Integration in Innovation Processes
Development of products/ services fitting the customer’s needs
Risk minimization
Synergies between supplier and customer leads to savings in time
Mouth-to-mouth communication
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INNOVATION MANAGEMENT SUPPORT MEASURES
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Technological Learning and R&D
Product development
Models Methods Tools
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Systematic Innovation Management
Models for systematic management of innovation in companies
Methods and tools for innovation management in industry and service sector
Important topic in Europe in order support competitiveness of SMEs
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Analysis of requirements & opportunities
- Technology analysis - Market analysis
Concept of the new product
Project plan
Prototype development
Prototype validation
Up-scaling
Marketing
plan
Decision Stop/ Go ahead
Front End New Product Development
Decision Stop / Go ahead
Idea evaluation Feasibility evaluation
Idea management - Idea development - Fostering creativity
Market Launch
Comercialization
Decision Stop/ Go ahead
Market validation
Systematic Mangement of the Innovation Process
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Analysis of requirements & opportunities
- Technology analysis - Market analysis
Concept of the new product
Project plan
Prototype development
Prototype validation
Up-scaling
Marketing
plan
Decision Stop/ Go ahead
Front End New Product Development
Decision Stop / Go ahead
Idea evaluation Feasibility evaluation
Idea management - Idea development - Fostering creativity
Market Launch
Comercialization
Decision Stop/ Go ahead
Market validation
Tools: • Portfolio Analysis & Benchmarking • Quality Function Deployment • Service Blueprinting and FMEA • Product Clinic & Complain management
Tools: • Intiuituve techniques • Analytical techniques Tools:
• Priorization • Scoring
Tools: • Technical feasibility • Cost Planning • ROI and others • Target Costing
Tools: • Product Model (Kano, Catalogs etc.) • Process Model (Blueprinting) • Resource Model (Prototyping, Simulation) • Marketing Model
Tools: • Task planning • PERT chart • GANTT chart • Responsibility matrix • Key person planning • Information matrix
Systematic Mangement of the Innovation Process
Training in Innovation Management
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Target Groups (all player in the innovation system):
Companies
Knowledge Intensive Business Services
Universities and Research Institutes
Public and private support organizations
Sexy topic which attracts local players
More long-term approaches with 100 – 200 training hours
Training offer: Local player together with international partner
GiZ experiences in Central America (DESCA) and Tunesia
Experiences I
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Training offer:
Cooperation between German training provider and local training provider necessary, because of limited local knowledge
Local training provider can be university, business incubator, technology park and business association, etc.
Practice-oriented focus of the training is very important – coaching of real innovation projects – innovation plans
Need for very well developed training materials
Online training is partly possible
Don`t forget the social innovation topic
Experiences II
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Participants:
Participants can be mixed: staff of companies, universities, business services, public support institutions
But at least 50% of the participants should be companies
Interaction between these players during the trainings is very fruitful
Local ministries of science and technology normally very interested in such trainings – chance of capacity building
Experiences III
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Sustainability:
Start-up support by GIZ is very helpful, but after two editions one can switch to use local resources only – assure sustainability
Need of local partner (from academic, training or consulting field)
Train the trainers is very important but also challenging
Experiences III
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Follow-up:
Networking afterwards could be very helpful
Support by online-platforms
Access to financial resources is important for companies to implement innovation plans
Impact assessment is necessary
Innovators Award
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INNOGEORGIA
First Innovation Award in Georgia
5 winning projects gets financial support for project implementation
Managed by Technology Transfer Center of Georgia (TTCG)
Innovators Award
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INNOGEORGIA – Support for the winning projects
Type of Activity Knowledge Transfer via Services by the TTCG
Innovation audit Consultancy Innovation audit – systematic analysis of all relevant factors affecting company’s innovativeness
Specific needs assessment
Consultancy Find a sector-specific national or international expert to analyze technological level and make suggestions for improvement
Know-how development
Research Partnership Enable cooperation with universities or research institutes
Introduction of new technology
Consultancy Technology Appraisal – find the best provider of the technology needed
New Product/Service Development
Coaching Finding the right technology for a new product/service development if needed, assist in questions regarding application for patent
Experiences
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Concept:
Very good approach for awareness raising in companies
Public actors can get involved in order to create political support – sustainability of the approach
Implementation:
Low entrance barriers – only innovation idea
Attractive awards with follow-up support for implementation
Use of local media for dissemination
Easy to combine with innovation management training
GIZ Toolbox
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