R. Boutellier

D-MTEC, Chair of Technology and Innovation Management

Innovationsmanagement in der Industrie

14. April 2010Zürich

Prof. Dr. Roman BoutellierVizepräsident für Personal & Ressourcen

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1200 1400 1600 1800 1900 2000

Life time work

The more you innovatethe more you have to work!

50‘000 BC

Life time work: 50’000 B.C. 15’000 hours2000 A.C. 150’000 hours

More and more Innovation

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Coca-Cola: Small innovation, big impact?

• Coca Cola always in 1st place in fridge• Less space for other beverages• More sales

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Innovation = Trial and Error ( < 30% survive first year)204 Coca Cola products in Japan 2002

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Product innovation is already a routine in many industries

Toyota Corolla: more than 30 m sold since 1966 10 generations in 40 years

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Some oligopolies transfer innovation to suppliers

HolcimLafargeCemex

• 70% of world market

• no product innovation

• process innovation bought from: • ABB

• Polysius

• FLS

• ...

• (some Chinese)

• No surprise

• 2% improvement/year

• economy of scale (incl. innovation!)

Strategy not based on innovation

Nevertheless: 2% productivity increase/ year

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Holcim makes efficiency reviews to improve productivity

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15 experts3 weeks check 33 specific fields e.g.

Master plan: 2 years

Quarterly reporting on progress

Overall check after 3 years(ø PBPs ~ 3 years)

• Raw material mix• Housekeeping• Safety• ...

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The faster you learn, the more efficient you are

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Design

BuildInterpret

Test

Creative ideas

hypothesis

Thought experiment

Experiment

Simmulation

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Different products need different methods to manage development-efficiency

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New product

top performance lowest cost shortest time to market

integral hybrid modular

High rise elevator Cardboard Mobile phone

Formula 1 car packaging Locomotives

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Regulations make technical differentiation impossible, slow down innovation

0

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1976 1978 1980 1982 1984 1986 1989 1991 1994 1996 1998 2000 2002 2004

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Hahnenkamm, Kitzbühl, downhill

http://www.hahnenkamm.com

http://www.lauberhorn.ch

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Lauberhorn, Wengen, downhill

1976 2004

1976 2004

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Pole vault: Technology makes the difference, + ½ % p.a. since 1904

Data basis: www.leichtathletik.de

19921904

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MetalBamboo

Wood

Glasfiber

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No Rules Innovation!Side effects?

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From technology driven innovation to design: Ski-industry

Pate

ntan

mel

dung

en -

kum

ulat

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I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I IJahr 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

Anmeldungen 0 2 1 1 4 9 1 23 56 81 107 108 140 153 142 133 120 199 185 171 131 128 149 173 159 171 146 132 115 75 39∑ Anmeldungen 0 2 3 4 8 17 18 41 97 178 285 393 533 686 828 961 1081 1280 1465 1636 1767 1895 2044 2217 2376 2547 2693 2825 2940 3015 3054

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1975 2005

Patents

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Blacksocks: The internet is coming despite the dot-com-bubble-burst

30 mio pairs socks, 130 mio CHF

15 local producers

Consolidation

Foreign competitors

Abolition of quotas, one 100% producer left (Nuthofil)

Blacksocks 1998• Sock subscription over internet

• Only black, no sorting

• Pleasant surprises

Blacksocks 2004: 130 000 pairs sold

2006: 500 000 pairs sold cumulative

CH Market

1950

1970

1990

2005

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Every company has 3 generic processes: Routine moves forward

• Actual cash flowOrder – make – delivery

• Choice of cash flowStrategy

• Future cash flowInnovation

2005: More than 700’000 companies have ISO 9001 A defined, documented innovation process

Routine

low

high

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?

?

Trade off

Basic dilemma: Individual creativity versus coordination

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Individual creativity

Coordination (formal)

• Time can be traded for coordination• Spontaneous coordination in small groups only

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Even the Beatles had to work longer to get “creative”

W. Weisberg, Creativity and Knowledge. In Sternberg, Creativity, Oxford 2004, p.239, Herbert Simon

1957 1960 1963

Hamburg 1960500 hours in 106 nights

Numberof concerts

5000 – 10000 hours to become an expert(50 000 Junks of knowledge)

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The Beatles learned existing music before getting creative

Training period250 songs in repertoire

Practice, not info gathering

Creative period39 own songs enter

repertoire

W. Weisberg, Creativity and Knowledge. In Sternberg, Creativity, Oxford 2004, p.240, 241

Proportionof own songs (+ absolute number)

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No efficiency without routineThe bigger innovation of the 20th century: Innovation!

„ Civilization advances by extending the number of important decisions which we can perform without thinking about them. “

Introduction to Mathematics 1911, chapter 5

A.N. Whitehead1861 - 1947

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