IMP³rove – developing the competitiveness of Small and Medium Sized Enterprises with public

innovation support

November 2011

Dr. Bernd Schmidt

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The importance of innovation

IMP³rove - The European Approach to better Innovation Management

Public initiatives in supporting innovation and knowledge-based development

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The importance of innovation

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The importance of innovation

1) Steve Jobs; 2) Hannes Erler, Swarovski Source: IMP³rove Global Coordination Team, 2011; www.improve-innovation.eu; IMP³rove is a registered trademark

Innovation is an objective – and a means

"Innovation distinguishes between leader and follower"¹)

"Innovation helps to overcome the crisis"²)

Innovation is securing your business

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Innovation Management enables all kinds of innovations to create value for the customer

Source: A.T. Kearney; IMP³rove Global Coordination Team, 2011; www.improve-innovation.eu; IMP³rove is a registered trademark

... an invention/idea of

• new products, processes, production methods, organizational forms

or

• an elementary improvement of a system

and its successful realization

An innovation is ...

Managing innovation is the most critical process for any enterprise but the least well understood

Process innovation e.g. MicroReaction

Technology

Product innovation e.g. BASF's Hexamoll

Service innovation e.g. mobile

telecommunication services

Business model innovation e.g. Dell, Ebay

The importance of innovation

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Description

Innovation Strategy

• Vision and strategic focus on innovation

• Implementation of strategy

Organisation and Culture

• Roles and responsibilities

• Organisational structure

• Organisational culture and climate

Innovation Life Cycle Processes

• Idea management

• Product/Process and Service Development

• Launch and Continuous Improvement

Enabling Factors

• Project management

• Human Resources and Incentives

• IT and Knowledge Management

Innovation Results

Company 3

Company 2

Company 1 1

2

3

4

5

Innovation Results

5

Enabling Factors

Innovations- Organisation and Culture

Innovation Strategy

Idea management

Product/Service/ Process development

Launch/ Continuous Improvement

Innovation Lifecycle Processes

1

2

4

3

Systematic Innovation Management builds on five performance dimensions

“A.T. Kearney House of Innovation”

Source: A.T. Kearney

A.T. Kearney House of Innovation

The importance of innovation

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Innovation Management pays off for small and medium sized enterprises

25,0%26,0%

24,0%

17,0%

25,0%

6,0%7,0%

11,0%

7,0%

4,0%

7,0%

22,0%

Biotechnology /

Pharmaceuticals /

Chemicals

ICT / Electrical /

Optical

Knowledge

Intensive Services

Machinery /

Equipment (Plant

Construction)

Space and

Aeronautics /

Automotive

Overall

Source: IMP3rove, March, 2008, results from Field-test; N = 1324; www.improve-innovation.eu

Annual growth rate of income from sales over the last 4 years (median)

Preliminary results

Average Growth Champions

The importance of innovation

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…as well as larger corporations

Stock price development of DAX index versus DACH Best Innovators(1) (1.1.2003 – 31.12.2010, indexed)

(1) Average performance of DACH Best Innovator winners Source: Best Innovator Competition 2003 – 2010, A.T. Kearney analysis

0

50

100

150

200

250

300

350

400

450

500

08.01.2003 08.01.2004 08.01.2005 08.01.2006 08.01.2007 08.01.2008 08.01.2009 08.01.2010

Dax 30 Best Innovators

Corporate Value increase:

Gap > ~25%

The importance of innovation

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To achieve knowledge-based development very different stakeholders have to be aligned – IMP³rove is here the solution

For SMEs: Improving their innova- tion management perfor-

mance for sustainable growth

For academia: Integrating theory and practice for

innovation mana-gement programs

SME = Small and Medium Sized Enterprise Source: IMP³rove Core Team, 2010 ; www.improve-innovation,eu; IMP³rove is a registered trademark

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IMP³rove - The European approach to better Innovation Management

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IMP³rove is the initiative of the EC to IMProve Innovation Management Performance of SMEs with sustainable IMPact

Source: IMP³rove Core Team, 2010 ; www.improve-innovation,eu; IMP³rove is a registered trademark

IMP³rove as a truly European initiative

Project details

• Start 2006

• Duration: 4 + 2 years

• Budget: € 8 mio.

• Consortium: 3 Partners more than 450 members in the IMP³rove Network

Sponsor:

• European Commission, Directorate General Enterprise and Industry

European Commission, DG Enterprise and Industry

IMProve Innovation Management Performance

with sustainable IMPact

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With the IMP³rove suite of value propositions EEN partners can enhance their service offerings

Source: IMP3rove, 2011; www.improve-innovation.eu; IMP³rove is a registered trademark; CWA = CEN Workshop Agreement

IMP³rove

IMP³rove for sustainable growth

Assessment tool

IMP³rove Partner Services

IMP³rove Academy IMP³rove Research

Rely on IMP³rove trained Innovation Management

consultants

Access experts from very different sectors

and share best practices

Rely on the European pre-standard in inno-vation management

assessment

Develop SMEs on solid benchmarks from the largest benchmarking

database on Innovation Management

3000 SMEs

CWA 15899

500 IMP³rove Consultants

Intermediaries, Financial Actors

Refine innovation policies with high-value

research results

Filling white spot in SME research

Promote Innovation with the IMP³rove

Award

Drivers for innovation

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This eco-system will include all relevant stakeholders and give them a common approach and a common “language”

Source: IMP3rove, 2011; www.improve-innovation.eu; IMP³rove is a registered trademark

IMP³rove

Consultants Intermediaries

Financial actors Policy makers

Academia

Enterprises

Enterprises

Enterprises

IMP³rove powered innovation eco-system

for smart growth

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Governments can increase the innovation capacity and competitiveness with unique IMP³rove offerings

Source: IMP3rove, 2011; www.improve-innovation.eu; IMP³rove is a registered trademark

IMP³rove

Consultants Intermediaries

Financial actors Policy makers

Academia

Enterprises

Enterprises

Enterprises

IMP³rove powered innovation eco-system

IMP³rove Innovation Eco-System

IMP³rove offerings

IMP³rove joint Academic Program

• ObjectiveComplementing the curriculum of the partner university with insights from the IMP³rove Academy

• Steps: Online benchmarking

• On-site visits

• Selection process

• Award Ceremony

IMP³rove Award

• Objective: Creating visibility and

awareness of highly innovative SMEs and the funding agency

• Steps: Online benchmarking

• On-site visits

• Selection process

• Award Ceremony

IMP³rove – Innovation

Support Capability Assessment

• Objective: Defining the demand for suitable measures to improve

the innovation management support

capabilities of innovation support service providers

• Steps: Definition of levels of proficiency -

Assessment of training needs – Definition of

most effective measures and

offerings

IMP³rove – Enhancing the qualification in

Innovation Management for

support providers

• Objective: Improving the Innovation Management

competencies of support providers for

better services to SMEs

• Steps: Training offerings on various

levels of proficiency in innovation

management – customized to the

needs of the region or funding agency – evaluation of the

impact of the programme

IMP³rove – SME Workshops on

Innovation Management

• Objective: Creating awareness for

innovation management as key driver of profitable

growth and competitiveness

• Steps: Demonstrating the impact of

innovation management on

growth in sales, profit and number of employees – explaining the dimensions of

innovation management – show

practical approach how to improve the own

innovation management

IMP³rove – Investment Impact

Assessment

• Objective: Assess the success of start-up companies after 5

years

• Steps: Business performance of the start-up companies

after 5 years – Definition of areas for

improving the business performance –

consolidation of results from the start-up sample in scope

IMP³rove – Sustainability

Driven Innovation Management

• Assessment of a company’s focus on

• Economic

• Ecologic

• Social

Sustainability

• IMP³rove Sustainability Report as basis for further improvement of services innovations and innovation services

Regional programme to

raise the innovation

performance of SMEs

• Diagnostic phase: Innovation

Management Capabilities in SMEs

• Assistance phase: Support in design and

implementation of programmes to improve SMEs’

innovation management

performance and competitiveness

• Evaluation phase: Evaluating the impact

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Public initiatives in supporting innovation and knowledge-based development

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What has been initiated by the European Commission is now ready for adoption by the EU Member states and beyond

Source: IMP3rove, 2011; www.improve-innovation.eu; IMP³rove is a registered trademark; KIS = Knowledge intensive services

IMP³rove

UK: Scottish Enterprise has recently adopted IMP³rove as part of their support of local

SMEs Serbia: 150 SMEs have been

assessed within a publicly funded national program

France: National Innovation Agency has supported the

IMP³rove Assessment for KIS companies Germany: IMP³rove

Assessment as option for their “go inno” program

Hungary: IMP³rove Assessments selection of highly competitive SMEs

Egypt: Assessing ICT companies; now developing a

national program

Good practice example to integrate IMP³rove services into national or regional development

programs

There are still numerous opportunities to develop the national or regional IMP³rove eco-system for

improved innovation capacity of SMEs

Australia: IMP³rove Assessments for

manufacturing companies

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Business success of enterprises drive the adoption of IMP³rove for knowledge development

IMP³rove

Source: IMP³rove Core Team, 2011 ; www.improve-innovation,eu ; IMP³rove is a registered trademark

Case examples of successful implementation of IMP³rove

UK-based automotive supplier

German-based book retailer

• Situation: Significant losses due to economic crisis

• Approach: Performance of the IMP³rove Assessment revealed new market potential by

• Entering the wagon and train sector

• Leveraging manufacturing licenses

• Impact: After 1 year after the IMP³rove Assessment turned from a loss-making company to more than 1 mio GBP in profit

• Situation: Disruptive technology of e-books jeopardized the traditional book retail market

• Approach: Performance of the IMP³rove Assessment revealed new market potential from “book on demand” by

• Establishing a new business unit

• Maintaining the existing business

• Impact: Preparing for the maturing/ shrinking business in the traditional book retail market by building a new business segment

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IMP³rove Research has generated already a number of well-received research results

IMP³rove

Source: IMP³rove Core Team, 2010 ; www.improve-innovation,eu ; IMP³rove is a registered trademark

European Innovation Management Landscape – Assessment of current practices in Innovation Management consulting approaches and Self-Assessment Tools in Europe to define the requirements for future “best practices”; EuropeINNOVA Paper No 2, 2006

Insights in Innovation Management – Tangible results from IMP³rove; EuropeINNOVA Paper No 10, 2008

IMP³rove: A European project with impact – 50 success stories on Innovation Management; EuropeINNOVA Paper No 14, 2010

IMP³rove Study: Innovation Management in High-Growth SMEs from the Knowledge-intensive Services (KIS): Setting the Pace for Growth in Europe, 2010

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Due to its impact, IMP³rove received the Europe INNOVA Award 2008 from the European Commission

IMP³rove as a truly European initiative

Source: IMP³rove Core Team, 2010 ; www.improve-innovation,eu; IMP³rove is a registered trademark

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We are looking forward to your questions!

Dr. Bernd Schmidt A.T. Kearney GmbH Kaistrasse 16 A D-40221 Düsseldorf Germany

Tel: +49 (0)211 1377 2789 Fax: +49 (0)211 1377 1789

bernd.schmidt@atkearney.com improvecoreteam@atkearney.com

Source: IMP³rove Core Team, 2010; www.improve-innovation,eu; IMP³rove is a registered trademark

www.improve-innovation.eu