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D-MTEC, Chair of Technology and Innovation Management Innovationsmanagement in der Industrie

D-MTEC, Chair of Technology and Innovation Management Innovationsmanagement in der Industrie. 14. April 2010 Zürich Prof. Dr. Roman Boutellier Vizepräsident für Personal & Ressourcen. 32154e. Life time work: 50’000 B.C. 15’000 hours 2000 A.C. 150’000 hours. Life time work.

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D-MTEC, Chair of Technology and Innovation Management Innovationsmanagement in der Industrie

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  1. D-MTEC, Chair of Technology and Innovation Management Innovationsmanagement in der Industrie 14. April 2010 Zürich Prof. Dr. Roman Boutellier Vizepräsident für Personal & Ressourcen R. Boutellier 32154e

  2. Life time work: 50’000 B.C. 15’000 hours 2000 A.C. 150’000 hours Life time work The more you innovate the more you have to work! 50‘000 BC 1200 1400 1600 1800 1900 2000 More and more Innovation R. Boutellier 32155e

  3. Coca-Cola: Small innovation, big impact? • Coca Cola always in 1st place in fridge • Less space for other beverages • More sales R. Boutellier 30725e

  4. Innovation = Trial and Error ( < 30% survive first year)204 Coca Cola products in Japan 2002 R. Boutellier 32156e

  5. Product innovation is already a routine in many industries Toyota Corolla: more than 30 m sold since 1966 10 generations in 40 years R. Boutellier 32157e

  6. Some oligopolies transfer innovation to suppliers Holcim Lafarge Cemex • 70% of world market • no product innovation • process innovation bought from: • ABB • Polysius • FLS • ... • (some Chinese) • No surprise • 2% improvement/year • economy of scale (incl. innovation!) Strategy not based on innovation Nevertheless: 2% productivity increase/ year R. Boutellier 32159e

  7. Holcim makes efficiency reviews to improve productivity • experts • 3 weeks check 33 specific fields e.g. • Raw material mix • Housekeeping • Safety • ... Master plan: 2 years Quarterly reporting on progress Overall check after 3 years (ø PBPs ~ 3 years) R. Boutellier R. Boutellier 32899e

  8. The faster you learn, the more efficient you are Creative ideas hypothesis Thought experiment Experiment Simmulation Design Interpret Build Test R. Boutellier 33506e

  9. Different products need different methods to manage development-efficiency New product top performance lowest cost shortest time to market integral hybrid modular High rise elevator Cardboard Mobile phone Formula 1 car packaging Locomotives R. Boutellier R. Boutellier 33507e

  10. Regulations make technical differentiation impossible, slow down innovation Hahnenkamm, Kitzbühl, downhill 1976 2004 http://www.hahnenkamm.com Lauberhorn, Wengen, downhill 2004 1976 http://www.lauberhorn.ch R. Boutellier 31996e

  11. Pole vault: Technology makes the difference, + ½ % p.a. since 1904 6.5 6 Glasfiber 5.5 5 Metal Bamboo 4.5 Wood 4 3.5 3 1932 1948 1960 1964 1968 1936 1940 1944 1952 1956 1972 1976 1904 1920 1984 1992 1908 1912 1916 1924 1928 1980 1988 1904 1992 No Rules  Innovation! Side effects? Data basis: www.leichtathletik.de R. Boutellier 31994e

  12. From technology driven innovation to design: Ski-industry Patents 1975 2005 R. Boutellier 32058e

  13. Blacksocks: The internet is coming despite the dot-com-bubble-burst 30 mio pairs socks, 130 mio CHF 15 local producers Consolidation Foreign competitors Abolition of quotas, one 100% producer left (Nuthofil) Blacksocks 1998 • Sock subscription over internet • Only black, no sorting • Pleasant surprises Blacksocks 2004: 130 000 pairs sold 2006: 500 000 pairs sold cumulative CH Market 1950 1970 1990 2005 R. Boutellier 31025e

  14. Every company has 3 generic processes: Routine moves forward • Actual cash flow Order – make – delivery • Choice of cash flow Strategy • Futurecash flow Innovation high Routine low 2005: More than 700’000 companies have ISO 9001 A defined, documented innovation process R. Boutellier 32162e

  15. Basic dilemma: Individual creativity versus coordination Individual creativity ? ? Trade off Coordination (formal) • Time can be traded for coordination • Spontaneous coordination in small groups only R. Boutellier R. Boutellier 33508e

  16. Even the Beatles had to work longer to get “creative” Number of concerts Hamburg 1960 500 hours in 106 nights 1957 1960 1963 5000 – 10000 hours to become an expert (50 000 Junks of knowledge) W. Weisberg, Creativity and Knowledge. In Sternberg, Creativity, Oxford 2004, p.239, Herbert Simon R. Boutellier 30778e

  17. The Beatles learned existing music before getting creative Proportion of own songs (+ absolute number) Training period 250 songs in repertoire Practice, not info gathering Creative period 39 own songs enter repertoire W. Weisberg, Creativity and Knowledge. In Sternberg, Creativity, Oxford 2004, p.240, 241 R. Boutellier 30779e

  18. No efficiency without routineThe bigger innovation of the 20th century: Innovation! „ Civilization advances by extending the number of important decisions which we can perform without thinking about them. “ A.N. Whitehead 1861 - 1947 Introduction to Mathematics 1911, chapter 5 R. Boutellier 32163e

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