TIM Vorlesung 2

To see opportunities:

When the winds of change are blowing…

… some build shelters

… others wind mills

Innovative companies are (on average) more profitable -> At the same time, most innovation projects fail

Innovation is the biggest internal growth driver -> At the same time, it is the biggest risk for realised growth

Successful innovations are commercially attractive -> Very few inventors profit commercially from their inventions

Product development costs are rising -> Product lifecycles are becoming shorter

Innovation is an enabler for success -> Past success is a major barrier to innovation and thus to future success

Without innovation initiatives there in no innovation -> Too many innovation projects clog the innovation pipeline

• Managing innovative tasks and decisions is fundamentally different from the management of routine tasks.

• Standard instruments and management techniques for routine tasks and decisions of medium complexity fail in the face of innovative decisions.

• Appropriate awareness and assessment of the innovative content of a decision (i.e., the degree of innovativeness) is a pre requisite of successful innovation management.

Innovation Barriers

Unclear Goals / Uncertainty

Cooperative Leadership

Building Networks and Markets

• Prevention, delay or termination of innovations due to resistance of people, who feel threatened or shun the risk, personal responsibility, or additional work

• Adoption barriers from customers, who don’t see the value or have to change their behavior

• Innovation-stifling laws, regulations, and institutions

• Results are unclear and uncertain, goals are not given and have to be developed

• Often new technologies and problem solutions need to be discovered

• New markets, target groups, and need fulfillment have to be discovered and defined

• Strategies and reactions of competitors need to be taken into account

• A multitude of persons form different functions/ levels within an organization and form different organizations are involved in the process – they need to be coordinated, motivated, and supported

• Leadership rests on different types of power bases than in traditional management; inspiring and participative types are more effective

• Companies need to invest in the creation of new relationships, new networks, and newly emerging markets

• Customers need to be convinced of the advantages of the new solutions, because they compete with established well engraved solutions

Adequate assessment of innovativeness

Short-term developments are often over-estimated and long-term developments are often under-estimated.

• Radical innovations are perceived as non-innovative.

• The decision-making process is delayed or never starts.

• Development projects may be terminated too early or may not receive enough attention.

• Wasted opportunities: competitiveness dwindles, cost savings or additional profits are not realized.

• Gimmicks are perceived as innovative

• Waste of time and money on top management or expert decisions. Resources are used to solve a problem that could have been solved by conventional means.

• Negative consequences for decision-making culture: The inflationary use of the word "innovation" implies that advocates of less significant problems demand more attention than they deserve.

• Who is responsible for managing innovations?

• What competencies must decision-makers have?

• How is the cooperation between project and line management organized?

• Which rules apply in case of conflict?

• Who reports to whom, on which topics, how and when?

• Define strategies

• Formulate goals

• Decide on programs, projects, people and resources

• Influence information flows

• Create a culture of respect, openness, cooperation, trust, and commitment among participants and stakeholders

• Motivate stakeholders to work for innovative decisions

Innovation Management is the deliberate organization and coordination of the corporate innovation system, i.e. not only of single innovation processes but also the institution (the strategy, structure, culture and actors), in which theses processes occur.

Technology management incorporates the analysis, planning, processing and control of decisions and actions in order to build and develop technological capabilities of companies.

To bedetermined in specific measured values

• Learning successes

• Experience, knowledge

• Transfer effects

• Advertising effects

• Hedging effects

• Defense effects

• Weakness identification

• Revenue

• Subsidies

• Profit/ margins

• Costs

• Sales reduction of the competitor

• Cost increase of the competitor

• Profitability of other affects products/systems

• Environmental effects

• Social Effects

• Autonomy effects

• Acknowledgement

• Self-realisation

They were linear:

• Technology Push

• Market Pull

Techology input -> R&D -> Manufacturing -> Marketing > Need!Need?

• Product or process innovations are based on technological capabilities and resources

• Radical technological developments are possible due to the strong focus on research (Breakthrough Innovations)

Customer input -> Marketing -> R&D -> Manufacturing -> Need.

• Product or process innovations are based on the current or future customer needs

• Rather product or process improvements and incremental changes (product maintenance)

Front End

Development

Market Introduction

• Knowledge of new technologies and new needs

• Stimulation of new thoughts and ideas, creativity

• Communication and networking

• Selecting and supporting promising concepts

• Focused, target-oriented projects

• Knowledge of potential customers and their needs

• Knowledge of feasible technologies

• Coordination of activities, resources, employees, planning, control, communication and management

• Qualification, durability assurance

• Cost management of human resources

• Marketing, Sales

• Services

• Competition

• Search in internal and external environment

• Generate ideas and concepts

• Strictly select valuable ideas and concepts

• Step-wise reduction of uncertainty

• Cross-functional team work & project management

• Experimentation and problem solving

• Customer integration/Co-Development

• Market testing and market feedback

• Transfer to serial/mass production

• Adoption and diffusion

• Knowledge transfer and follow-up innovation

• Autonomy und Freedom for innovative Ideas

• Failure-tolerant innovation climate

• Support of Promotors and Champions