Chapter 2

• Adequate assessment of the innovation 

•  orchestrating and organizing the different elements of the innovation process (Front End, Development, Market Introduction) and the innovation system(strategy, organization, culture)

• Angemessene Bewertung der Innovation

• Orchestrierung und Organisation der verschiedenen Elemente des Innovationsprozesses (Front End, Entwicklung, Markteinführung) und des Innovationssystems (Strategie, Organisation, Kultur)

Higher innovation levels present greater barriers, particularly with human factors.

Increased uncertainty complicates management and requires iterative trial and error.

Cooperative leadership and cross-functional collaboration are essential.

Building networks, markets, and convincing customers of new solutions' advantages are also crucial. gpt

Innovation Barriers ⇒ The higher the innovation the bigger the barriers especially related to humans inside and outside the company. 

Unclear goals/Uncertainty ⇒The more innovative → the more uncertainty → the more complexer to manage → hard to define clear goals → have to approach goal through iterative trial and error → also need to have an eye on competition

Cooperative Leadership ⇒ Innovation requires a lot of people of different functions and they need to work together 

Building of Networks and Markets → need to invest into the creation of new relationships, new networks and new emergent markets → Customers need to be convinced of the advantages of new solutions.

Höhere Innovationsniveaus stellen größere Barrieren dar, insbesondere bei menschlichen Faktoren.

Erhöhte Unsicherheit erschwert das Management und erfordert iteratives Trial-and-Error.(Klare Ziele)

Kooperative Führung und funktionsübergreifende Zusammenarbeit sind unerlässlich.

Auch der Aufbau von Netzwerken, Märkten und die Überzeugung der Kunden von den Vorteilen neuer Lösungen sind entscheidend.

Innovation benefits encompass technology and economy, with direct and indirect effects. Focus on goals, timing, and balance to optimize outcomes.Gpt

The Total benefits consist of technology , economic and other benefits. The innovation has direct (measurable) and indirect (not directly measurable) effects on those dimensions. Here we need to look at the goal of the innovation plus timing and balance/not overfitting.

Innovationsvorteile umfassen Technologie und Wirtschaftlichkeit mit direkten und indirekten Auswirkungen. Konzentrieren Sie sich auf Ziele, Timing und Balance, um die Ergebnisse zu optimieren.

Measuring innovation success demands a flexible framework, mindful of overfitting, timing, and innovation type for accurate assessment. Gpt

There is no definitive way of measuring innovation success, only a framework which needs to be adjusted to the innovation. Here is the risk of overfitting criteria to make everything a success.  Then the Timing is important because we can measure the success at different times which need different criteria. Last but not least the overall type of Innovation (Incremental vs Radical) has different types of aims.

Die Messung des Innovationserfolgs erfordert einen flexiblen Rahmen, der Overfitting, Timing und Innovationstyp für eine genaue Bewertung berücksichtigt.

In a portfolio context, individual project success is less relevant. For better indicators, consider three innovation phases:

1. Frontend - Idea generation and selection, focusing on transfer effects.

2. Development - Evaluate the number of conclusive prototypes/projects, highlighting learning effects.

3. Market Introduction - Assess adoption, diffusion, and perceived innovativeness.

Avoid overfitting criteria and balance innovation with economic benefits, acknowledging that some failures are expected. gpt

Since we look at a Portfolio level the success of individual projects are not relevant and can be balanced out, furthermore the focus on radical innovation requires the look into hard to measure and long-term goals. To have decent indicators we can take the 3 Phases of the innovation process as a guideline:

1. Frontend → how many ideas are generated and how well do we select those→important transfer effects

2. Development → here we can look into how many prototypes/projects are developed with a conclusive result → Learning Effect

3. Market Introduction → Most important adoption and diffusion → Social and acknowledge  effect → are we being perceived as innovative

⇒ also very important is not to overfit criteria to our cause, while failure is expected and should be celebrated, are we still in a corporate environment and can’t do “happy engineering” with no economic benefit 

Im Portfoliokontext ist der individuelle Projekterfolg weniger relevant. Betrachten Sie für bessere Indikatoren drei Innovationsphasen:

1.Frontend - Ideengenerierung und -selektion mit Fokus auf Transfereffekte.

2.Entwicklung - Bewerten Sie die Anzahl der aussagekräftigen Prototypen/Projekte und heben Sie Lerneffekte hervor.

3.Markteinführung - Bewerten Sie Akzeptanz, Verbreitung und wahrgenommene Innovationsfähigkeit.

Vermeiden Sie eine Überanpassung von Kriterien und balancieren Sie Innovation mit wirtschaftlichen Vorteilen aus und erkennen Sie an, dass einige Fehler zu erwarten sind.

⇒ for each Phase also different styles of work and management → the later we are the more committed we are , less uncertainty and more resources already invested → reduced the amount which started at the start.

⇒ für jede Phase auch unterschiedliche Arbeits- und Managementstile → Je später wir sind, desto engagierter sind wir, weniger Unsicherheit und mehr bereits investierte Ressourcen → Reduzierung des Anfangsbetrags.

Strategy, Organization and Culture need to work with the process

→ need to do both, radical and incremental innovation

Ambidexterity => radical innovation has other requirements for structure, leadership, process, culture than incremental innovation

• Accept and celebrate failures is important

• Learning culture