Diskontinuierliche Innovation

Diskontinuierliche Innovation Kompetenzen und Paradigmen im Innovationsmanagement Business Talk des integro-Projektes im Rahmen der Tagung X-Organisationen, Berlin, 19. Nov. 2009

Frank T. Piller RWTH Technology & Innovation Management Group, RWTH Aachen, Germany MIT Smart Customization Group, Cambridge, MA, USA tim.rwth-aachen.de

www.innovationsarbeit.de

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INTEGRO: Integriertes Innovations-, Wissens- und HR-Management in Unternehmen und Innovationsnetzwerken der High-Tech-Branche am Beispiel Informationstechnik und Mechatronik

Ziel: Empirische Analyse der Strukturen, Prozesse und Arbeitsbedingungen in Wertschöpfungs-und Innovationsnetzwerken von KMU der High-Tech-Branche, exemplarisch der IT-Branche und der Mechatronik.

Im Rahmen des Projektes (Laufzeit: 04/08 bis 04/11) werden Funktionsmechanismen elaborierterInnovationskonzepte untersucht und Maßnahmen zur breiten Unterstützung der Innovationstätigkeit sowie zur Kompetenzentwicklung zentraler Beschäftigtengruppen erarbeitet. Ein besonderer Fokus liegt darauf, wie Innovations-, Wissens- und HR-Management sowie Kompetenzentwicklung optimal verzahnt bzw. integriert werden können, um die Innovationsfähigkeit von Unternehmen zu stärken und externes Wissen durch Kundenintegration und Open Innovation für die Unternehmen nutzbar zu machen.

Das Vorhaben wird aus Mitteln des Bundesministeriums für Bildung und Forschung und aus dem Europäischem Sozialfonds der Europäischen Union gefördert und vom Projektträger Arbeitsgestaltung und Dienstleistungen im Deutschen Zentrum für Luft- und Raumfahrt e.V. betreut.

Projektpartner: Sozialforschungsstelle Dortmund (sfs) an der Technischen Universität Dortmund (Koordinator); Management Zentrum Witten; networker westfalen e. V. Dortmund; Ruhr-Universität Bochum - Institut für Arbeitswissenschaft (IAW) und Lehrstuhl Informations- und Technikmanagement (IMTM); RWTH Aachen - Lehrstuhl für Technologie- und Innovationsmanagement (TIM).

Mehr Informationen: www.innovationsarbeit.de

Kontext des Vortrags: Das Projekt Integro

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tim.rwth-aachen.de

About us

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With about 18 full time research positions plus about 25 graduate student assistants, tutors, and research affiliates, RWTH- TIM is one of the largest groups of its kind in the German-speaking academic landscape.

Our team

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RWTH-TIM Group: Facts and Figures

Established in 1990 as one of the first dedicated chairs in technology & innovationmanagement in Europe

Part of RWTH's School of Business & Economics, with strong links to the RWTH Engineering Schools

Ranked #1 in our school's faculty ranking w/r to research output (publications), and #2 w/r to external funding. Awarded "RWTH Price for Teaching Excellence 2009".

Interdisciplinary team of about 18 full time positions for researchers plus about 25 support positions and student researchers (strong growth since 2007)

70% of budget funded by research contracts, grants, projects ("Drittmittel")

Dedicated to research, but excellent in participant-centered learning on graduate student and executive education level.

Strong industry partnerships, yet focus on scholarly research, not consulting.

Network of affiliated companies & consultancies for direct project cooperation.

November 2009: Moving to new building in RWTH Aachen Research Park next to Research Centers of, e.g., Microsoft, Sony Ericson and Ford (part of "RWTH Campus Project")

When googling "Innovation", this picture shows up as the

#1 hit.

"I' am happy to give you innovative thinking. What are the guidelines?"

8(c) Copyright tim.rwth-aachen.de

What Is Innovation?

“(Basic) research is the transfer of money into knowledge. Innovation is the transfer of knowledge into money.”

W. Sittenthaler, Wacker Chemie (German manufacturer of specialized chemical compounds)

"Innovation: How to link creativity in new ideas with necessary rigor and discipline in execution."

H. Kerminen, Kemira (Finish manufacturer of fertilizers and industrial chemicals)


Exploring the decision space of innovation mgmt

ProductProcess

Position

‘Paradigm’ (= mental model)

‘do better’ ………‘do different’

Innovation

Source: Bessant (2008)

How we think about something ... shapes the way

we manage it.

Draw an alien on your notepad. NOW!

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Most Likely Year to Enter Mainstream

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2010: The World Goes Online 2020: High-Tech Arrives 2030: Global Crisis of Maturity

© TechCast, LLC. All Rights ReservedGraph by Evan M. H. Faber

Energy & Environment Information Technology E-Commerce Manufacturing & Robotics Medicine and Biogenetics Transportation

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Longitudinal Summary of Forecasts


Innovation follows a paradigm (basic model)

Ray Ewry (1873-1937)Olympic Games, London, 1908

World record: 1,98

Mildred McDaniel (1933)Olympic Games, Melbourne, 1956

World Record: 2,15

Richard Fosbury (1947),Olympic Games, Mexico, 1968

World Record: 2,24

(Radical) Innovation is overcoming the problem

of "local search".


Popper (1988):

For radically new innovation to occur at all, the future must be unknowable, since otherwise innovation would, in principle, be already known and would occur in the present and not in the future.

The inherent limits of organizations to forecast, especially discontinuous and radical new developments (Hogarth & Makridakis, 1981; Makridakis, 1990)

The challenge


Exploitation

Exploration

17(c) Copyright tim.rwth-aachen.deGary Cooper


How it really happens ...

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Exploitation

ExplorationSource: von Stamm / Bessant (2008)


Disruptive Innovation

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Sustaining vs. disruptive technologies

Source: Bower/Christiansen: Disruptive technologies, HBR, 1995/1 21

Why firms fail to master discontinuous innovation

Resource dependency:

Listened too much to best customers.

Internal inertia to change:

Existing structures, mental models, and capabilities


Firms face many more sources of discontinuity than "just" new technologies (Bessant 2005)

23Source: Bessant (2008)

Challenging some of our common paradigms (mental

models) of innovation

Innovation is high-tech


Dr G Venkataswamy


But innovation is not just western "high tech": The fortune at the Bottom of the Pyramid (BoP)

Book and articles by C.K. Prahalad, University of Michigan Begins with potential positioninnovation – 4 billion people subsist on less than $2/dayProducts and services for this market?Significant paradigm innovationpotential- challenges our assumptions about ‘the poor’Case examples of experiments from wide range of countriesEarly warning signals of fundamental shifts in innovation landscape?


BoP Example: Aravind eye clinics

Began 1976, Dr G Venkataswamy , retired eye surgeon9 million in India, 45 million worldwide suffer blindness due tocataractsCataract operation cost in USA - $2500-$3000Target cost in India - $50, but no compromise on qualityLearning from other sectors – the McDonalds approach200,000 operations/year @ $50 - $300 including hospital stay and any complications treatment60% of patients treated free, so average cost is $25/operationRich learning (200k ops) so world-class – NHS is looking at this as an option for the UKExtension to other operations – e.g. bypass surgery in India $4k vs $50k in USA


Further examples of BoP innovation

EID Parry, ITC – e-choupals – internet in the village

Casas Bahia – 10m customers for electronics, appliances, furniture –45% of spending is at BoP

Jaipur Foot – as Aravind – US cost of foot $8000, target cost of JF is $30 and free to many. Extreme use innovation. 25million amputeesworldwide.

Voxiva medical alerts and communication – spread of SARS, etc. Robust comms. platform independent of specific hardware. Applicable to crime, safety, etc.

Annapurna iodised salt – using extreme conditions as a laboratory to push the innovation frontier (micro-encapsulation technology)


Create a new price/performance envelope

Aravind eye care, Monsoon Hungama mobile phone, Grameen and other micro-finance

Innovation requires hybrid (traditional and new technology)

solutions

Micro-encapsulation of iodine in salt (Hindustan Lever), Amul Dairies collection/distribution system

Innovations must be adaptable and scalable

How to devolve/reach – mobilise local entrepreneurs. Cemex, Casias Bahia

Innovations must tackle sustainability issues

Energy, water use, waste, etc. E+Co distributed energy

Innovations must come from deep understanding of local needs and

context

Jaipur Foot, TVS PoS system

Process innovations are as significant as product

Aravind, Amul

Learning from the BoP "real life lab"


Innovations must deal with skill issue

Voxiva medical diagnostics, Cemex

User education is critical and requires innovation in approaches

How to work in ‘media-dark’ environments? HLL ‘clean hands’ campaign

Innovations must suit hostile environments – extreme innovation

Jaipur Foot, ITC e-choupal, HLL Annapurna salt

Innovations require robust user interfaces

Languages, input devices for illiterates, etc. Elektra Mexico fingerprint recognition in stores

Innovations must reach dispersed markets

Extending reach in marketing and delivery. Avon model – networks of local agents, direct to consumer

Innovations must be platform/architecture-based

Aravind, Voxiva, ITC models diffusing to ‘developed’ world

Learning from the BoP "real life lab" (II)


The flip video camera

The netbook

The Apple-Nike "+" system

Twitter

Skype

Consider other "low tech" innovations breaking with the "high tech" paradigm

Innovation is the domain of firms (manufacturers).

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# of usersperceiving

need

TimeTime

Lead users innovate here

First manufacturer product appears here

Source: Eric von Hippel 2005

“Voice of the customer” methods start here

Users have the advantage of problem-solving in their own use environments as they “do” a desired activity – they are learning by doing.

But whatever you do, inspire your most

important participant

Your Executive Board

If you find a "chief innovation officer",

run away.

Innovation cannot be delegated or assigned to an "innovation function". It is the job of everyone in an

organization – including the executive board.

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[email protected]

tim.rwth-aachen.de | open-innovation.com

Diskontinuierliche Innovation

Education

Transcript of Diskontinuierliche Innovation