ESIL Abstimmung- 12.09.2008 

1. Basic ModuleInnovationsmanagement Jürgen Jantschgi / Carsten Gundlach(Stenum/insin) ESIL Abstimmung- 12.09.2008  1

2. Greening the global economy Global imperative for reversing the linear dependency of economic growth and resource consumption Qualityof life Economicgrowth Use of nature CIT

3. "Innovation" Source: Defintion EU-Project "SUPPORT" • INNOVATION = Doing x Things x Better • Action x Knowledge x Creativity Doing BETTER Things

4. What types of innovations are there? • product innovations • development, generation an launch of neu products and product quality as well as new services • process innovations • Development and launch of new technologies and methods in production an sales area • organisational innovations(Behavior Innovations) • Development und launch of new methods in the area of organisation an d management

5. The Innovation Excellence Modell (1) • Innovation Performance is the company‘s economic success, which derives from new products/services and new processes within a given period. • Innovation System includes the areas of Culture, Strategy and Organization & Resources, all situated at the corporate or business unit level. • Innovation Process consists of three main phases: the Front End, Development and Market Launch Strategy Innovation System Culture Organisation Innovation Performance Front End Market Launch Innovation Process Development (1) Source: Prof. Sören Salomo, Platformfor Innovation Management

6. The Innovation Excellence Modell (1) The Innovation System covers the topis Culture, Strategy and Organisation. It describes the characters ans properties of the company. It is the basis for Innovation activities and provides a framework within the concrete innovation projects can takeplace. The Innovation Process consists of the three main phases idea generation (front end), development and market launch. Here are the concrete activities within the innovation projects. The output of these activities determines the Innovation Performance. Strategy Innovation System Culture Organisation Innovation Performance Front End Market Launch Innovation Process Development (1) Source: Prof. Sören Salomo, Platformfor Innovation Management

7. Innovation System - Strategy

8. Strategy - The Innovation Excellence Modell (1) The Business Stragegy describes the longterm business goals. The Innovation Strategyis part of the business strategy. It contains the goals for the development of new or better products or services and the goals to establish the needed competences. The Strategic Innovation goals are the guidelines (and measurements) for the innovation activties. (idea evaluation) Strategy Innovation System Culture Organisation InnovationPerformance Front End Market Launch Innovation Process Development (1) Source: Prof. Sören Salomo, Platformfor Innovation Management

9. Goals of a Company • Economic Goals • Short-term: Liquidity • Medium-term: Profit • Long-term: Strategic Success • Ecological Goals • notoxicsubstances • resourceefficiency • energyefficiency • … • Human Goals • satisfaction • ergonomics • health • ….

10. 3 2 4 Main ParameterEfficiency 1 t Number of Inventions t Level of Invention t Profit t S-Curves & Inventions

11. Analyse Current Situation – (2) Value Curve & Blue Ocean (Example Traditional Circus - Cirque de Solei)

12. Value Curve – Traditional Circus

13. Value Curve – Cirque du Soleil

14. Development of a New Value Curve"Eliminate – Reduce – Raise – Create"

15. 6 Pathways for reconstructuring market boundaries • Trends & Time • future, sustainable trends = important for the community, irreversible, clear direction • How will trends change the customer value ? • Alternatives / Substitues (Products / Services) • other Form • same / other functionalities • same goal / result SixPathways • Functional or Emotional Appeal • funct. branch  emotional elements • emot. branch  functional elememts • Strategic Groups within the Industry / Branch • with similar strategy(ie. price, performance) • search for new combinations • Offering Complementary Products & Services • matched / appropriate • out of the branche • The Chain of Buyers • customers / purchaser • user / influencer • (today´s) non-customer

16. Innovation System - Culture

17. Culture - The Innovation Excellence Modell (1) The Businees Culture establishes Rules and the climate for the co-operation of an organisation. The Innovation Culture describes the approach and the "hidden" behavioural rules regarding innovation. Strategy Innovation System Culture Organisation Innovation Performance Front End Market Launch Innovation Process Development (1) Source: Prof. Sören Salomo, Platformfor Innovation Management

18. Herzberg – 2 Factor Theory (Motivator-Hygiene-Theory) • it is a theory regarding Work-Satisfaction and Work-Motivation. • „Factors of Hygiene" (non-satified - non non-satisfied) • „Motivators“ (satisfied – non satisfied) • Satisfaction does not inevitably exist, if there are no reasons for dissatisfaction 18

19. Herzberg – 2 Factor Theory • Herzberg proposed the Motivation-Hygiene Theory, also known as the Two factor theory (1959) of job satisfaction. According to his theory, people are influenced by two sets of factors: • Motivator Factors • Achievement • Recognition • Work Itself • Responsibility • Promotion • Growth • Hygiene Factors • Pay and Benefits • Company Policy and Administration • Relationships with co-workers • Physical Environment • Supervision • Status • Job Security • Salary • Working Conditions • Personal life

20. Herzberg – 2 Factor TheoryFactors of Hygiene & Motivators 20

21. Innovation System – Organisation

22. Organisation - The Innovation Excellence Modell (1) The structures and resources are building the organisational framework for the innovation process. The internal structurecontains the structural and process organisation as well as management ratios and incentive systems. They are controlling the process and innovation performance The internal resourcescover for example competence management, utility equipments and financial resources Strategy Innovation System Culture Organisation InnovationPerformance Front End Market Launch Innovation Process Development (1) Source: Prof. Sören Salomo, Platformfor Innovation Management

23. Innovation Process

24. Product Innovation Process & SME´s G1 Evaluate ideas product development G3 market launch scheduled G4 Generating ideas G2 • Market researchTechnology rechercheIdea WorkshopIdea from Ideas Management • Idea ProcessingPatent SearchProjectFunding & financingDevelopment • Concept development - technical - economic - rightsApplied R & DPrototypeTestingRealization planning • LaunchField TrainingEvaluation after 2 years

25. Product Innovation Process & SME´s Szenario technique MFD – Modular Function Deployment SWOT-Analysis DoE – Design of Experiments StrategyIdea creation Idea evaluationdevelopment of concept applied R & DSpecification Sheet Serial development Blue Ozeans Portfolio-Analysis Roadmapping Segmentation Value analysis / QFD – Quality Function Deployment TRIZ – Theory of Inventive Problem Solving FMEA - Failure Mode Effects Analysis 25

26. Innovation Process – Front End

27. Front End - The Innovation Excellence Modell (1) • In the phase of the so called "Fuzzzy Front End"new questions and solution approaches have to be found. And the implementation potential has to be estimated. • Idea generation means use of creativity methods and the detailed analysis of customer needs and problem statements. • The evalutaion of possible solutions should run neutral and methodological. • The planing of the first implementation steps is also part of this phase. Strategy Innovation System Culture Organisation InnovationPerformance Front End Market Launch Innovation Process Development (1) Source: Prof. Sören Salomo, Platformfor Innovation Management

28. Customer Satisfaction KANO - Model Degree of customer satisfaction Enthusiasm requirements (Delighters) Compliance with the requirements Performance requirements (more is better) ... Temporal component: Enthusiasm needs of today are tomorrow's basic needs Basic requirements

29. Innovation Process – Development & Market Launch

30. Development - The Innovation Excellence Modell (1) • In the Development phase good and structured Project Management is needed. • The Concept Development contains all activities to design and build a prototype of the product / service • Within the detail development the production and market surroundings are considerd. Strategy Innovation System Culture Organisation InnovationPerformance Front End Market Launch Innovation Process Development (1) Source: Prof. Sören Salomo, Platformfor Innovation Management

31. Market Launch - The Innovation Excellence Modell (1) • The last phase of an successfull innovation process ist the Market Launch. • The time and place for the Market Entry has to be planed and has to be supported by marketing instruments. • The feedback of the customers should be used for furher development and maintenance of the product / service Strategy Innovation System Culture Organisation InnovationPerformance Front End Marktet Launch Innovation Process Development (1) Source: Prof. Sören Salomo, Platformfor Innovation Management