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ISTANBUL CHAMBER OF INDUSTRY - 6th INDUSTRY CONGRESS Sustainable Competitiveness: Industrial Technology and Innovation November 26- 27, 2007. Industrial Innovation trends. Arie Nagel, Netherlands/Slovenia. Profile of dr Arie P. Nagel. Education

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ISTANBUL CHAMBER OF INDUSTRY - 6th INDUSTRY CONGRESS

Sustainable Competitiveness: Industrial Technology and Innovation

November 26- 27, 2007

Industrial Innovation trends

Arie Nagel, Netherlands/Slovenia


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Profile of dr Arie P. Nagel

Education

1960-1964 Mechanical Engineering, Amsterdam

1971-1975 University of Eindhoven, Industrial Engineering and Management Science

1990-1992 PhD program, Thesis on Increasing the Strategic Innovation Capability of a Firm; nominated for the Igor Ansoff award

Career

1969-1981 Corus, Ahold and Shell, industrial engineer

1971-2006 University of Eindhoven

from 1977 on Management Consultant, esp. for SME's, S & O

1979-1981 Philips Corporate Strategic Planning

1993-1997 President of ISPIM, International Society for Professional Innovation Management (www.ispim.org)

from 1997 on Member of International Board of J. of Enterprising Culture, Singapore (www.worldscinet.com/jec/jec.shtml)

2000-2006 Member of EITIM, European Institute of Technology and Innovation Management (www.eitim.org)

2000-2003 Partner of 'smart', EC-project on Strategic Alliances

from 2004 on Visiting professor in Technology Management and Innovation, Ljubljana, co-ordinator of the TM module

apnagel@gmail.com


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Overview

  • Technology proves to be important

  • Creation of new ideas

  • New Product Development

  • Success and Failure of New Products

  • Strategic Alliances

  • The Innovative, Open Company

  • Quick Scan

70s

80s

90s

00s


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History of Management Science

Daft & Marcic, Understanding Management, Thomson


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Ansoff (1965):

Corporate Strategy

MBA’s: Finance,

Law and Marketing

1970:

Technological

Forecasting and

the Club of Rome

Mid 70s: Creativity, basis for e.g. ISPIM

Envisioning the ‘home computer of the future’ in 2004 by RAND Corp. in the fifties.



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Innovators and Followers (Teece)

Success Failure

IBM

personal computer

KODAK

instant photography

Follower

Innovator

DUPONT

teflon

EMI

scanner


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no

no

no

Apply with the

dominant design?

Supplementing

resources available?

Can the intellectual

property be protected?

Likely to succeed

Likely failure

Look for a partner

Likely failure

Innovators and Followers


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Success Factor Grading

1 Not so important

Number of responses

2 Fairly important

0

2

4

6

8

10

12

14

3 Very important

Superior product

Strong market orientation

International orientation

More predevelopment

Sharp and early product definition

Properly executed launch

Organisational structure and climate

Top management support

Technological and Marketing synergy

Aim at attractive markets

Sharper project selection

Success Factors

Project control / Quality of execution

The resources must be in place

Speed

Stage gate system

Protection of intellectual property

Dominant design

Secure access to Complementary assets

Consumer Innovator / Lead users

Learning

Non-product advantage


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Cassette Deck

Development time: two years.

The competitor develops a new deck in just half a year.

Now what?


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  • Solutions:

  • Concurrent Engineering

  • Modular design and Platform design

  • Marketeers and Engineers work together in an early stage

  • Rapid prototyping


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Stage-Gate according to Cooper




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Cooperation in the network economy

Access to knowledge

1. Access to knowledge

R&D, complementary technology, share know how

Access to new markets

2. Access to new markets

market knowledge, local party required

Efficiency

3. Efficiency

scale, specialised partner

Clients do not want products, but tailored solutions

4. Clients do not want products, but tailored solutions

satisfy a need, not a demand


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soft aspects

  • Managing Diversity

  • from ‘gold seeking’ to synergy with market, product/application, technology

  • PLUS operations fit

  • PLUS cultural, human, strategic fit

  • yet complementary in competencies!


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How to make a company more innovative?

An innovative company should create an environment of learning and experimenting, rather than planning.

HQ should facilitate the initiatives from BUs, rather than direct BUs.

Venturing is not ‘just’ for getting new business, but more and more to create new options.

Key to getting knowledge and strengthening own competencies are strategic alliances.

Business teams which strongly disagree (yet believe in a common objective) are more innovative than a too well structured set up.


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10 factors for an innovative organisation

  • Leadership and will to innovate

  • Appropriate structure

  • Key individuals

  • Effective team

  • Streaching individual capabilities

  • Extensive communication

  • High involvement in innovation

  • Customer focus

  • Creative climate

  • Learning organisation

Joe Tidd et al., Managing Innovation, Wiley, 1997 and on, Chapter 11: Building the Innovative Organization.





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Some useful books:

Conceptual (C), Instrumental (In), Reader (R)

  • Brian Twiss, Managing Technological Innovation, Pitman, Longman, London, 1974, 1980, 1986 and 1992. C, In.

  • Preston G. Smith and Donald G. Reinertsen, Developing Products in Half the Time, New Rules, New Tools, New York, Van Nostrand Reinhold, 1991. Second ed. in 1998. In.

  • Steven C. Wheelwright and Kim B. Clark, Revolutionizing Product Development, Quantum Leaps in Speed, Efficiency, and Quality, New York, The Free Press, 1992. In.

  • Gary Hamel and C.K. Prahalad, Competing for the Future, Breakthrough Strategies for seizing control of your industry and creating the markets of tomorrow, Harvard Business School Press, 1994. C.

  • Stewart Bray, Total Innovation, How to Develop the Products that your Customers want, Pitman Publ./Pearson, London, 1995. In.

  • Robert A. Burgelman et al. The Strategic Management of Technology and Innovation, 2nd ed., Irwin, 1996. C, R.

  • Robert A. Burgelman , Modesto A. Maidique and Steven C. Wheelwright, Strategic Management of Technology and Innovation, second ed., Irwin, 2001. C, R.

  • R. G. Cooper, S. J. Edgett, and E. J. Kleinschmidt, Portfolio Management for New Products, Hamilton, Ontario, McMaster University, 1997. In.

  • Joe Tidd et al., Managing Innovation, Integrating Technological, Market and Organizational Change, Wiley, 1997. Second ed. 2001. C.

  • Robert G. Cooper: Winning at New Products, Accelerating the Process from Idea to Launch, Addison-Wesley, 1993. Third ed. in 2001. In.

  • V.K. Narayanan, Managing Technology and Innovation for Competitive Advantage, Prentice-Hall, 2001. C.

  • Henry Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology, Boston, MA, Harvard Business School Press, 2003. C.

  • David Probert et al., Bringing Technology and Innovation into the Boardroom, Strategy, Innovation and Competences for Business Value, European Institute for Technology and Innovation Management/Palgrave/MacMillan, 2004. C, R.

  • Melissa A. Schilling: Strategic Management of Technological Innovation, McGraw-Hill/Irwin, New York, 2005. C.