Zürich, July 2013

Innovative Talent Drives

Business Growth

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STRIM Group of Companies Range of Services

The following products and services come across the divisions within the STRIM Management

Sphere System into effect:

Analyses & Workshops

Administration & Reporting

Assessments & Coachings

Strategy & Execution

Webinars & Congresses

Surveys & Publications

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Introduction

While technology was the top strategy to address innovation, recent studies found that innovation is

heavily dependent upon human capital issues.

Whether that is product and technology innovation or process innovation or business model

innovation, you have to be engaged in it in order to continue to maintain your market position, let alone

advance it.

Measurement drives success, and successful innovation is critical.

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Introduction CEO Challenge 2013

The top five strategies to meet the top five global challenges

Source: The Conference Board: CEO Challenge 2013 Summary Report.

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Introduction CEO Challenge 2013

Regional results reflect a global convergence on challenges

Source: The Conference Board: CEO Challenge 2013 Summary Report.

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Introduction CEO Challenge 2013

Challenges by industry

Source: The Conference Board: CEO Challenge 2013 Summary Report.

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Definitions

Innovation

Creating value through new products, new processes, business models, and organizational structures to meet and

anticipate customer demands and remain competitive in a global marketplace.

The Conference Board

Innovation is a process through which the nation creates and transforms new knowledge and technologies into useful

products, services and processes for national and global markets – leading to both value creation for stakeholders and

higher standards of living.

Egils Milbergs, President, Center for Accelerating Innovation

Return On Innovation Management:

Measurement that evaluates the profitability of a company´s investment in new products. The return on innovation

investment compares profits generated by a new product with the expense of developing the product and bringing it to

market.

InvestorWords.com – Online Investing Glossary

A performance measure used to evaluate the effectiveness of a company´s investment in new products or services.

The return on innovation investment is calculated by comparing the profits of new product or service sales to the

research, development and other direct expenditures generated in creating these new products or services.

Investopedia

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Definitions

Invention is creating something new that may or may not have a measurable business value. It is

typically the outcome of research and experimentation.

Unlike innovation, invention can reflect the work of a single individual.

Ellie Hall, Audrey B. Smith, Ph.D.

Creativity is best viewed as an individual personality attribute. An individual may be creative in that he

or she is able to generate many unique ideas (or build on others’ ideas in value-added ways).

Creativity fuels invention. But an individual who is creative may lack the skills, discipline, and ability

needed to bring an idea to fruition and grow it into a meaningful innovation.

Ellie Hall, Audrey B. Smith, Ph.D.

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Challenges to overcome

Source: Arthur D. Little: Getting a Better Return on Your Innovation Investment . Results of the 8th Arthur D. Little Global Innovation

Excellence Study, 2013.

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The „three pillars of innovation“ Pillar One: Understand the Innovation Effectiveness Curve

Source: Alexander Kandybin and Martin Kihn: Raising Your Return on Innovation Investment. strategy+business issue 35, 2004.

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The „three pillars of innovation“ Pillar Two: Master the Entire Innovation Value Chain

Source: Alexander Kandybin and Martin Kihn: Raising Your Return on Innovation Investment. strategy+business issue 35, 2004.

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The „three pillars of innovation“ Pillar Three: Don´t Do It All Yourself

Source: Alexander Kandybin and Martin Kihn: Raising Your Return on Innovation Investment. strategy+business issue 35, 2004.

Dimensions of Best-in-class Innovation Time-to-Market, Actual vs. Planned

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The Innovation Excellence Model Structure

Source: Arthur D. Little: Getting a Better Return on Your Innovation Investment . Results of the 8th Arthur D. Little Global Innovation

Excellence Study, 2013.

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„8 Step Process“ … To Perfect New Product Development

Source: Robert F. Brands: 8 Step Process Perfects New Product Development , Blogpost, May 27, 2013

For more information: http://kalyan-city.blogspot.com/2012/02/stages-process-steps-of-new-product.html

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Research Results Percentage point difference between top innovators and others

Source: Arthur D. Little: Getting a Better Return on Your Innovation Investment . Results of the 8th Arthur D. Little Global Innovation

Excellence Study, 2013.

Energy & Utilities

Chemicals

Industrial & Manufacturing

Food & Beverage

Telecom, IT & Media

Electronic Engineering

& Electronics

Automotive Manufacturing

& Automotive Suppliers

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Research Results Top innovators sustain significantly higher performance

The top quartile innovators enjoy

more than twice the proportion of

new sales for new products/

services (based on sales in last

three years),

nearly twice the EBIT and

a 30% shorter time-to-break-even

than the rest.

This is a good illustration of

financial (or economic) benefits of

excellent innovation performance.

Source: Arthur D. Little: Getting a Better Return on Your Innovation Investment . Results of the 8th Arthur D. Little Global Innovation

Excellence Study, 2013.

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Research Results Relative positioning of innovation portfolio

Across all industries top innovators with leading innovation success tend to focus more on radical

innovation than other innovators.

The trend varies depending on whether innovation is being applied to products, services, processes

or business models.

Source: Arthur D. Little: Getting a Better Return on Your Innovation Investment . Results of the 8th Arthur D. Little Global Innovation

Excellence Study, 2013.

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Research Results Innovation Management Practices, Tools and Methodologies

It is especially noteworthy that some of the newer tools that are often cited in innovation literature,

such as social media tools, crowdsourcing for idea generation, idea jams and bootcamps, apply only in

a minority of cases and are only weakly associated with innovation success when used on their own.

Source: Arthur D. Little: Getting a Better Return on Your Innovation Investment . Results of the 8th Arthur D. Little Global Innovation

Excellence Study, 2013.

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Innovation Metrics Cash curve: typical path to cash payback

Source: James P. Andrew, BCG Chicago: Innovation Management.se. The leading online resource and learning center for management

Innovation, 2010.

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Innovation Metrics Innovation framework: Metrics for beginners in innovation

Source: Amy Muller, Liisa Välikangas, and Paul Merlyn: Metrics for innovation: guidelines for developing a customized suite of

innovation metrics,

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Innovation Metrics Innovation framework: Metrics for veterans of innovation

Source: Amy Muller, Liisa Välikangas, and Paul Merlyn: Metrics for innovation: guidelines for developing a customized suite of

innovation metrics,

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Your Contact

Dr. Volker Mayer

CEO at STRIMgroup AG

STRIMgroup AG

Gütschstrasse 22

CH-8122 Binz (bei Zürich)

Fon +41 (0)43 366 05 58

www.strimgroup.com

office@strimgroup.com

STRIMconsult GmbH

Morgenröte 10a

D-68305 Mannheim

Fon +49 (0)621 4236 018

Fax +49 (0)621 4236 029