Innovation mangement mao final

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Präsentationstitel – Zeile 1



Presented By:

Mohamed Abd Elmoneim Osman Innovation Manager

[email protected]

Innovation Management Concepts

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• At the end of this training, the attendance should have:

– Working understanding of innovation management concepts

– In-depth understanding of innovation processes and available models

– Knowledge of available tools, techniques, document templates and

approaches to innovation management

Course Objectives:

“Innovation Management is about the pursuit of ‘NEXT’ practices…”

Innovation Management Concepts

3 Innovation Management

INTRODUCTION


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What is innovation?

Latin word Innovare meaning:

“ to make something new”

Introduction

Creativity • is thinking up a new thing or an idea that

is new to you

• Spending Money to Generate Ideas

Innovation • is doing a new thing or the practical

application of creative ideas

• Spending Ideas to Generate Money


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What is Creativity?

Creative

Thinking

An innate talent that you were born with and a set

of skills that can be learned, developed, and

utilized in daily problem solving

Creative solutions are more than ideas - they must work in the real

world. A creative solution has three attributes:

• It is new (otherwise it would not be creative).

• It is useful, in that it solves the problem (otherwise it would not be

a solution).

• It is feasible, given the messy real world constraints like money

and time.


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Are you Creative?

Age group % of creativity used

Kindergarten children 95 – 98 %

Junior school children 50 – 70 %

High school / University students 30 – 50 %

Mature Adults < 20 %


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Left Brain

Or

Right Brain


Creative Thinking Skills


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Fluency Flexibility Elaboration Originality

Creative thinking skills


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Workshop


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Brain writing – Method 635


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Description

Each participant receives a sheet of paper with a table

with 3 rows and 6 columns. Each of the 6 participants

has to write three ideas in the first row. With regard to

the difficulty of the problem the paper gets passed on to

the next person after 3 to 5 minutes. The next person

should then try to pick up and develop further ideas (the

idea has not to build on the predecessor – it can be just

used as an inspiration).

Strengths

With little time effort (30 min) one can develop up to

108 ideas.

All members can participate without lose of time or

have inhibitions.

The method can also be done via email.

No discussions or talking things to death.

Weaknesses

Not applicable for difficult problems.

Time pressure is sometimes difficult for particpants.

Participants developing ideas fast can get bored

because they have to wait.

Application

For problems with low to medium complexity

As a second step after brainstorming in order to deepen

the initial ideas.

If one wants to generate a lot of ideas in a short time

with a moderate interaction of the participants.

Time needed

With 6 participants 30 mins (5 min. per round)

Adaptable for more or less participants.

4. Brainwriting – Methode 635


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Brain writing – Method 635

Idea 1 Idea 2 Idea 2

Participant 1

Participant 2

Participant 3

Participant 4

Participant 5

Participant 6


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Don’t Believe the Experts !

“That’s an amazing invention, but who would ever want to

use one of them?” (US President Rutherford B. Hayes, after

participating in a trial telephone conversation between Washington and

Philadelphia in 1876).

“Television won’t be able to hold onto any market it

captures after the first six months. People will soon get

tired of staring into a box every night (Darryl F. Zanuck, Head of

20th Century Fox, 1946)


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Don’t Believe the Experts !

“The horse is here to stay, but the automobile is only a

novelty, a fad” (President of Michigan Savings Bank, 1903, advising

Henry Ford’s lawyer not to invest in the Ford Motor Company –

disregarding the advice, he invested $ 5,000 in stock, which he sold

several years later for $ 12,5 million).

“I think there is a world market for about five computers

(Thomas J. Watson Sr., Chairman of IBM, 1943)


Innovation Management

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The process of turning opportunity into new ideas and

putting these into widely used practice.

“The real challenge in innovation was not invention-

coming up with good ideas- but in making those

inventions work technically and commercially”

Thomas Edison

What is Innovation?


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In general, innovation is interpreted as the creation, implementation,

and commercialization of new ideas related to products, services,

processes, distribution channels, promotional strategies, organizational

structure, or measurement systems.

Innovation = Invention + Market Success

What is Innovation?

Innovation vs. Invention

“Invention is only the first step of a long process

of bringing good ideas to widespread and

effective use”


l Innovation Management Concepts

Where Quality Management seeks “Best practices…”

Innovation Management seeks “Next practices…”

What Is Innovation Management?: Innovation as a Source of Competitive Advantage.


Simplified model of the

Innovation process

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Innovation Process


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How innovation happens?

Success (?)Process

Innovation Process


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Systems Innovation

How it really happens …..

Innovation Process


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Innovation Process

Generic phases of the innovation process:

Idea Stage - Searching & Scanning in (the internal & external environments)

Design ,Development Stage - Filtering & Selecting potential

opportunities (Acquiring the technical, financial & market resources)

Implementing Stage (Commercialisation)

Evaluation stage (Reviewing & Learning from experience)

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Discover Develop Deliver Discover

Your Idea Customer Need

Your competitors

The Concept Your Business Plan

Your Solution prototype

The Opportunity Your Strengths,

Weaknesses

Innovation process


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Discover Develop Deliver Discover

Innovation process

evaluate ideas, initial acceptance

(offline)

Brainstorming session to challenge

idea (with domain/industry

experts)

Evaluate pilot + assign full team

+ resource allocation

Final Evaluation + Lesson Learned

Role of Innovation Team


l Innovation Management Process Models

Foundational Innovation Management Process Map: Innovation process



Innovation Management Timeline Model:

Innovation Management Timeline


Types of Innovation

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Exploring different aspects of innovation Degree of novelty:

Incremental → doing what we do better

Radical → new to the world

Level of innovation: → Components or Systems (Architecture)?

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Timing: the innovation life cycle.

Exploring different aspects of innovation


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Dimensions of ‘innovation space’

The 4Ps of innovation :

Product – changes in the things (products/services) which an organization offers,

Process – changes in the ways in which they are created and delivered

Position – changes in the context in which the products/services are introduced

Paradigm – changes in the underlying mental & business models which frame what the organization does

37 Types of Innovation


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R & P Ltd company working in garden machinery 39 Innovation Management

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Technology excellence may not be

enough…..

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Discontinuous innovation

– what happens when the game changes?

Innovation Management

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Types of Innovation

Mechanism Advantage Examples

Novelty in product or service offering

Offering something no one else can

• Walkman • Dishwasher • Telephone bank • On-line retailer

Novelty in Process Offering it in ways others cannot match (faster, lower cost, more customized, etc.)

• Bessemer’s steel process • Internet banking, • On-line bookselling

Timing 1. First mover advantage 2. Fast Follower advantage

1. Amazon.com 2. Samsung (Apple’s)


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MP3 changed the business model radically

• New sales channels (“iTunes”, “musicload”)

• Fits in all products (mobile phones, cameras …)

• New workplaces and work processes

• New communication forms: podcasts

Economic success in Germany

• 9.200 workplaces directly linked to MP3

• 350 Mio. € sales with MP3-ringtones

• 2008 Forecast: 7 billion € sales of MP3-players

Example for innovation:

Technology application: Example MP3 (since 1987)

Innovation: Example

Spath, Dieter: Technologiemanagement, Lecture 2008/09.


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The first mobile phone on the market …

• Motorola DynaTAC 8000xFits in all products

• Weight: 794 gramme

• Height: 33 cm (mobile phones, cameras …)

• Price: 3395 US $

• First prototype 1973, market launch 10 years

later due to necessary permissions,

infrastructure etc.

Example for innovation:

The first mobile phone 30 years ago!


Rudy Krolopp, 73

former chief designer of

Motorola

The first mobile phone in

Germany: 500g, 3000

DM (~ 1500 Euro)

The competition catches

up: AEG 1989

Mobile phones today

Innovation: Example


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Those products disappeared from the market. An invention does not

guarantee a commercial success.

Innovation Introduction: Example



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Can we manage Innovation?

This is the big question

The innovation for sure is important, but :

– It’s complex, uncertain, risky and costly.

So at first glance it might appear that it is impossible to

manage something like this.

The problems is of partial views of innovation

Management is equal to Routines


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Routines & Innovation

The problem with routines are they have to learned, and

learning is difficult, it take (Time & Money)

The routines can’t copy from other firm

And There are some abilities the firm must have to create

a routine and managing the innovation


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Innovative Organization


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Leadership, shared vision & climate:

innovation leadership, not senior management

broad vision, not detailed strategy

organizational climate - ‘the way we do things around

here’

“Innovation has nothing to do with how many R&D dollars you have… it’s

not about many. It’s about the people you have, how you’re led, and how

much you get it.”

Steve Jobs


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Leadership, shared vision & climate

Changing Mindset (PARADIGM)


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Characteristics of an innovative climate:

Trust & Openness

Challenge & Involvement

Freedom & Autonomy

Support & Space for ideas

Conflict & Debate

Risk-taking

Freedom (Playfulness & humour)

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SPOT framework

Sweet SPOT framework for assessing innovation:

Strategy (Developing an innovation strategy)

Processes (Innovation process, systematic PM, C.I, Q. A)

Organization (Building the innovation organization)

Tools & Technology (QFD, Taguchi, Common Software)

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Developing an

innovation strategy

Notions of corporate strategy first emerged in

the 1960s

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“If You Don't Know Where You're Going, Any

Road Will Get You There.”

The Cheshire Cat from Alice In Wonderland

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Discrepancy

Current State

• Lack of useful ideas

• Lack of skills or support for creative and strategic breakthroughs

• Perhaps, other challenges and problems

Desired Future

Need Innovation

Champion

Strategy on how to get there

Gap

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Innovation Strategy

Four factors have a major influence on the ability of a firm to develop and create value through innovation:

1. The national system of innovation (which defines how dealing

with opportunities and threats)

2. Its power and market position.

3. The capability and processes of the firm, including (R&D,

production, marketing, etc.)

4. Its ability to identify and exploit external sources of innovation,

especially international networks.

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Rational strategy approach

This approach is intended to help the firm to:

1. Prepare for a changing future.

2. Be conscious of trends in the competitive environment.

3. Focused on longer term

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Innovation Strategy

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• Incremental strategy approach (Trial and error)

In this approach the most efficient procedure is to:

1. Make deliberate steps (changes) towards the stated

objective.

2. Measure and evaluate the effects of steps (changes)

3. Adjust (if necessary) the objective and decide on the

next step (change)

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Innovation Strategy

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Innovation Strategy

Rational/Planning Resource/Capabilities

based

top-down bottom-up

outside-in inside-out

choice variation & selection

ahistorical Cumulative

static dynamic/learning

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Innovation Leadership Vs. Followership

According to Porter, Firms must also decide between two market

strategies:

Leadership Where the firms aim at being first to market (this requires a

strong corporate commitment to creativity and risk taking)

Followership Where the firms aim at being late to market, based on imitating

from leaders (this requires a strong commitment to competitor

analysis and intelligence, to reverse engineering) (East Asian

“dragon” countries.

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Examples of successful Leader strategies.

Leader Follower

Spath, Diether: Lecture Technology Management, Stuttgart, 2008/9.

Entrepreneurial Strategy: Generating and Exploiting New Entries

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Leader Follower

Examples of successful Follower strategies.

Spath, Diether: Lecture Technology Management, Stuttgart, 2008/9.


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Innovation Strategy 67

Advantages of being first to market

Disadvantages of being first to market

•Reputation as a pioneer

•Capture market share

•Early benefits to learning curve.

•Definition of standards

•Establish entry barriers e.g. patents

•Dominate supply & distribution

chains

•Earn ‘monopoly’ profits

• pioneering costs, educating buyers,

regulatory approval

• demand uncertainty

• changing buyer needs

• low-cost imitation

• followers ‘leapfrog’ technology

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Strategic Management: Porter U-Shape

Limits of Rational Planning

Market Share

ROI

Cost Leadership

Differentiation

Concentration

between the chairs

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So, Innovation:

Response or strategy?

“. . . chance favours only the prepared mind”, L. Pasteur, 1854

“...the more I practice, the luckier I get…”, Gary Player (champion golfer)

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Innovation = 3 % Inspiration and 97 % Transpiration.

Thomas Edison


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Sources of innovation

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1. Market (Pull/Demand/Need) (The necessity is the mother of innovation)

2. Technology push (Radar, Mobile, Microwave, hovercraft, Antibiotics)

3. Regulation

4. Recombination

5. Futures and forecasting

6. Accidents

7. Search tools & methods

• Internal sources – (climate & creativity, Inspiration(

• External sources – open innovation (Users, Watching others,

Competitors, partners, etc.)

Where do Ideas coms from?

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Bullinger, Hans-Joerg: Fraunhofer-Gesellschaft, Best Innovator, 13.11.2008

leisure

nature

at home: TV, eating,

leisure activity

business travels, on

the way to the office

company break

boring meetings

interesting meetings

workplace

somewhere else

travel in the

company

outside

the company

Where are ideas generated?

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Technology Push approaches suggest that innovation proceeds linearly:

Scientific discovery invention manufacturing marketing

Demand Pull approaches argued that innovation originates with unmet

customer need:

Customer suggestions invention manufacturing

Most current research argues that innovation is not so simple, and may

originate from a variety of sources and follow a variety of paths.

Hadia, Hamdy: Product & Innovation Process, Lecture Winter Semester 2008/09.

Research and Development by Firms

Sources of Innovation

l Accelerating Ideas to Market – The AIM process

• The stage-gate system

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Strategies for idea/concept generation:

Research & analysis

Imitate or adapt

Seek inspiration

Consult ‘creative’ types

Apply systematic creativity methods & tools

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Some Tools of creativity:

Mind maps - make assumption explicit

Lateral thinking - reverse logic, intermediates

Brainstorming - non-evaluative idea generation

Creative Problem solving

TRIZ

De-Bono’s ‘six thinking hats’

Etc.,

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On average, it takes about 3,000 raw ideas to lead to a commercially successful product or process

0

500

1000

1500

2000

2500

3000

Projects

Ideas

Stevens & Burley, 1997

Experiments Initial

ideas

New

product

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Building the

innovation case

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Developing the business plan 80

1. Details of the product or service

2. Assessment of the market opportunity

3. Identification of target customers

4. Barriers to entry and competitor analysis

5. Experience, expertise and commitment of the management team

6. Strategy for pricing, distribution and sales

7. Identification and planning for key risks

8. Cash-Flow calculation, including breakeven points and sensitivity

9. Financial and other resource requirements of the business.

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Portfolio management of process innovation

It used simple categories:

1. Incremental: essentially continuous improvement projects

2. Radical: using the same basic technology but with more

advanced implementation.

3. Fundamental: using different technology (e.g laser cutting

instead of mechanical)

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Creating new

products and services

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The funnel of uncertainty


Popular Innovation Management Models:

DeSai Group Innovation Funnel™ Model:

The DeSai Group – http://www.desai.com

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Stage-gate process for new product development

1. Idea generation

2. Concept generation

3. Project assessment and selection

4. Product development

5. Product commercialization

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Stage-gate process for new product development

l Key factors influencing the success of new product development

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Customer Voice (QFD)

Innovation mangement mao final

Leadership & Management

Transcript of Innovation mangement mao final