Presentation - ETH Zürich

VIII. Swiss Turkish Economic Forum 22nd November 2012 Enhancing Innovativeness? - It’s Innovation Leadership That Counts

Prof. Hugo Tschirky, PhD, DBASwiss Federal Institute of Technology (ETH)

© Copyright Prof. Hugo Tschirky, PhD, DBA page 1

VIII. Swiss Turkish Economic Forum22nd November 2012


Enhancing Innovativeness?Enhancing Innovativeness?

1.1. Innovation: successfully coping with technology changeInnovation: successfully coping with technology change2.2. Vast governmental innovation initiativesVast governmental innovation initiatives3.3. However: it’s the “Final Mile” that countsHowever: it’s the “Final Mile” that counts44 “Best“Best inin Class” examples of innovation competenceClass” examples of innovation competence

It’s Innovation Leadership That Counts …It’s Innovation Leadership That Counts …

ETH Department of Technology, Management, and Economics - Prof. Hugo TschirkyETH Department of Technology, Management, and Economics - Prof. Hugo Tschirky

4.4. “Best“Best--inin--Class” examples of innovation competenceClass” examples of innovation competence5.5. INNOSHARE: First step towards enhancing innovativenessINNOSHARE: First step towards enhancing innovativeness

Prof. Hugo Tschirky, PhD, Prof. Hugo Tschirky, PhD, DBADBASwiss Federal Institute of Technology (ETH Zurich)Swiss Federal Institute of Technology (ETH Zurich)

„Innovation „Innovation isis increasinglyincreasingly whatwhat businessesbusinessesand and institutionsinstitutions of all of all kindskinds seekseek, in , in responseresponse toto

a “a “flatteningflattening” ” worldworld of of everever--moremore intenseintense and and global global competitioncompetition. .

ThatThat soundssounds simple simple enoughenough——but but it’sit’s not just not just

„Innovation „Innovation isis increasinglyincreasingly whatwhat businessesbusinessesandand institutionsinstitutions ofof all all kindskinds seekseek, in , in responseresponse toto

a “a “flatteningflattening” ” worldworld ofof everever--moremore intenseintense andandglobal global competitioncompetition. .

ThatThat soundssounds simple simple enoughenough——but but it’sit’s not just not just aboutabout buildingbuilding a “a “betterbetter mousetrapmousetrap.” .”

The The kindkind of of innovationinnovation companiescompanies needneed todaytodaygoesgoes beyondbeyond productsproducts oror servicesservices, , involvinginvolving all all

aspectsaspects of of thethe enterpriseenterprise——fromfrom businessbusinessprocessesprocesses and and modelsmodels toto managementmanagement

systemssystems, , cultureculture and and policiespolicies. .

A li hiA li hi thithi ki dki d f f t it i i tii ti

aboutabout buildingbuilding a “a “betterbetter mousetrapmousetrap.” .”

The The kindkind ofof innovationinnovation companiescompanies needneed todaytodaygoesgoes beyondbeyond productsproducts oror servicesservices, , involvinginvolving all all

aspectsaspects ofof thethe enterpriseenterprise——fromfrom businessbusinessprocessesprocesses andand modelsmodels toto managementmanagement

systemssystems, , cultureculture andand policiespolicies..

A li hiA li hi thithi ki dki d f f t it i i tii ti Samuel J PalmisanoSamuel J Palmisano

ETH Department of Technology, Management, and Economics - Prof. Hugo TschirkyETH Department of Technology, Management, and Economics - Prof. Hugo Tschirky Page 2

AccomplishingAccomplishing thisthis kindkind of of systemicsystemic innovationinnovationrequiresrequires a a uniqueunique blendblend of of businessbusiness and and

technologytechnology, and a , and a deepdeep understandingunderstanding of of thethenewnew toolstools, , techniquestechniques and and capabilitiescapabilities thatthat

havehave comecome of of ageage todaytoday.“.“

AccomplishingAccomplishing thisthis kindkind of of systemicsystemic innovationinnovationrequiresrequires a a uniqueunique blendblend of of businessbusiness and and

technologytechnology, and a , and a deepdeep understandingunderstanding of of thethenewnew toolstools, , techniquestechniques and and capabilitiescapabilities thatthat

havehave comecome of of ageage todaytoday.“.“

Samuel J. PalmisanoFormer Chairman, President and

Chief Executive Officer

Samuel J. PalmisanoFormer Chairman, President and

Chief Executive Officer






Enhancing Innovativeness?It’ I ti L d hi Th t C t


1.1. Innovation: successfully coping with technology changeInnovation: successfully coping with technology change2.2. Vast governmental innovation initiativesVast governmental innovation initiatives3.3. However: it’s the “Final Mile” that countsHowever: it’s the “Final Mile” that counts4.4. “Best“Best--inin--Class” examples of innovation competenceClass” examples of innovation competence



4.4. BestBest inin Class examples of innovation competenceClass examples of innovation competence5.5. INNOSHARE: First step towards enhancing innovativenessINNOSHARE: First step towards enhancing innovativeness


Technology Change:In 2005, the world produced more transistors

(and at lower cost) than grains of rice!(IBM 2006)

Technology Change:In 2005, the world produced more transistors

(and at lower cost) than grains of rice!(IBM 2006)(IBM, 2006)(IBM, 2006)





25%

20%

15%Asia

US

World Market Shares (World Bank, 2007)(% of total world exports by value)

EU-25

Europa‘s Failing Innovativeness and Economic StrengthEuropa‘s Failing Innovativeness and Economic Strength

„Europa‘s Share of the World Market hasclearly diminished “

„Europa‘s Share of the World Market hasclearly diminished “

2000 2001 2002 2003 2004 2005 2006

10%

5%

0%

US

InnovativenessInnovativeness EU, USA & JapanEU, USA & Japan

USAUSA

JAPANJAPAN

clearly diminished.“clearly diminished.“

„Europa‘s Innovation GAP compared to

„Europa‘s Innovation GAP compared to


EU Innovation Performance

European Commission 2005

EUEU

JAPANJAPAN

19961996 19971997 19981998 19991999 20002000 2001 20022002 20032003

Europe‘sEurope‘s Innovation GapInnovation GapGAP compared toUSA and Japan is

increasinglysignificant.“

GAP compared toUSA and Japan is

increasinglysignificant.“

Significant EU27 Innovation Gap Towards the US, Japan and South KoreaSignificant EU27 Innovation Gap Towards the US, Japan and South Korea

EU Innovation Performance Gap







EU: Enhancing Innovativeness, a Prime Overarching Target EU: Enhancing Innovativeness, a Prime Overarching Target

European Commission Conference European Commission Conference ((29 May, 2012)29 May, 2012)

European Commission Conference European Commission Conference ((29 May, 2012)29 May, 2012)

ViceVice--President Antonio President Antonio TajaniTajani, , Commissioner for Industry and Commissioner for Industry and

Entrepreneurship stated that "we Entrepreneurship stated that "we need to step up our efforts in need to step up our efforts in

making Europe more innovative in making Europe more innovative in order to catch up with our main order to catch up with our main

ViceVice--President Antonio President Antonio TajaniTajani, , Commissioner for Industry and Commissioner for Industry and

Entrepreneurship stated Entrepreneurship stated that "we that "we need to step up our efforts in need to step up our efforts in

making Europe more innovative in making Europe more innovative in order to catch up with our main order to catch up with our main


competitors and recover the path of competitors and recover the path of robust and sustainable growth".robust and sustainable growth".

competitorscompetitors and recover the path of and recover the path of robust and sustainable growth".robust and sustainable growth".

Turkey: Similar IntensionsTurkey: Similar Intensions

Turkey Turkey hashas longlong beenbeen and and continuescontinues toto bebe an an advocateadvocate of of raisingraising sciencescience and and technologytechnology totonewnew heightsheights, and , and hashas recentlyrecently beenbeen engagedengaged in in a a significantsignificant sciencescience, , technologytechnology and and innovainnova--tiontion (STI) (STI) impetusimpetus withwith thethe visionvision toto contributecontribute

Turkey Turkey hashas longlong beenbeen and and continuescontinues toto bebe an an advocateadvocate of of raisingraising sciencescience and and technologytechnology totonewnew heightsheights, , and and hashas recentlyrecently beenbeen engagedengaged in in a a significantsignificant sciencescience, , technologytechnology and and innovainnova--tiontion (STI) (STI) impetusimpetus withwith thethe visionvision toto contributecontributetiontion (STI) (STI) impetusimpetus, , withwith thethe visionvision toto contributecontributetoto newnew knowledgeknowledge and and developdevelop innovative innovative technologiestechnologies toto improveimprove thethe qualityquality of of lifelife bybytransforming transforming thethe formerformer intointo productsproducts, pro, pro--cessescesses and and servicesservices forfor thethe benefitbenefit of of thethe councoun--trytry and and humanityhumanity. Such an . Such an advocacyadvocacy isis rootedrootedin in thethe advancementadvancement of a of a dynamicdynamic ideal ideal basedbasedon on continuouscontinuous renewalrenewal and and modernizationmodernization

tiontion (STI) (STI) impetusimpetus, , withwith thethe visionvision toto contributecontributetoto newnew knowledgeknowledge and and developdevelop innovative innovative technologiestechnologies toto improveimprove thethe qualityquality of of lifelife bybytransforming transforming thethe formerformer intointo productsproducts, pro, pro--cessescesses and and servicesservices forfor thethe benefitbenefit of of thethe councoun--trytry and and humanityhumanity. Such an . Such an advocacyadvocacy isis rootedrootedin in thethe advancementadvancement of a of a dynamicdynamic ideal ideal basedbasedon on continuouscontinuous renewalrenewal and and modernizationmodernization


underunder thethe guidanceguidance of of sciencescience, , technologytechnology and and knowledgeknowledge. Today, . Today, thethe actorsactors asas a a wholewhole havehavesuccededsucceded toto putput forthforth a a determinationdetermination totocontinuecontinue toto investinvest in R&D and in R&D and innovationinnovation, , whichwhich isis a a keykey driverdriver of of futurefuture sustainablesustainablegrowthgrowth, and , and increaseincrease demanddemand forfor STI.STI.

underunder thethe guidanceguidance of of sciencescience, , technologytechnology and and knowledgeknowledge. Today, . Today, thethe actorsactors asas a a wholewhole havehavesuccededsucceded toto putput forthforth a a determinationdetermination totocontinuecontinue toto investinvest in R&D and in R&D and innovationinnovation, , whichwhich isis a a keykey driverdriver of of futurefuture sustainablesustainablegrowthgrowth,, and and increaseincrease demanddemand forfor STI.STI.













Innovation Policy Example:The 7th European Framework Programme FP7 (2007 – 2013)

Innovation Policy Example:The 7th European Framework Programme FP7 (2007 – 2013)

AccordingAccording toto thethe LisbonLisbon Council (March 2000)Council (March 2000)following the 6following the 6

ththframework framework ProgrammeProgramme (17 billion Euros)(17 billion Euros)

“Europe is to become the world's most “Europe is to become the world's most competitive economic areacompetitive economic area““pp

7th EU Programme: 7th EU Programme: NineNine Key Areas:Key Areas:•• HealthHealth•• Food, Food, AgricultureAgriculture andand BiotechnologyBiotechnology•• Information Information andand Communication TechnologiesCommunication Technologies•• NanosciencesNanosciences, , NanotchnologiesNanotchnologies, Materials , Materials andand newnew

ProductionProduction TechnologiesTechnologies•• EnergyEnergy

17 17 bnbn EurosEuros

Sixth FrameworkProgramme

2002-06


EnergyEnergy•• Environment (Environment (includingincluding ClimateClimate Change)Change)•• Transport (Transport (includingincluding AeronauticsAeronautics))•• SocioSocio--economiceconomic SciencesSciences andand HumanitiesHumanities•• Security Security andand Space Space

Budget: Budget: 53.2 53.2 Billion EurosBillion Euros

The The SeventhSeventh Framework Framework (2007(2007--2013)2013)

53.2 53.2 bnbn EurosEuros













HowHow effectiveeffective areare such such programsprograms and initiatives?and initiatives?

•• The „time The „time constantconstant“ of “ of effectivenesseffectiveness isis typicallytypicallyquitequite longlong: 8: 8--12 12 yearsyears. .

•• OnceOnce newnew knowledgeknowledge hashas reachedreached thethe companycompany, , OnceOnce newnew knowledgeknowledge hashas reachedreached thethe companycompany, , moremore competitivenesscompetitiveness isis still still farfar fromfrom beingbeing„„producedproduced“! “!

•• ItIt requiresrequires nextnext, , thatthat thethe newlynewly availableavailableknowledgeknowledge hashas becomebecome partpart of a of a managementmanagement


decisiondecision withwith an an outcomeoutcome thatthat matchesmatches futurefuturecustomercustomer decisionsdecisions..

•• ThisThis isis thethe cruicalcruical rolerole of of thethe „Final Mile“„Final Mile“




KnowledgeKnowledgeUtilizationUtilization &&

increasedincreasedCompetiCompeti--tivenesstiveness





ResearchResearchProgramsPrograms

ItIt isis thethe Innovation Management Competence (IMC) ofInnovation Management Competence (IMC) ofthethe „Final Mile“ „Final Mile“ thatthat countscounts!!

KnowledgeKnowledgeCreationCreation

ResearchResearchProgramsPrograms

ResearchResearchProgramsPrograms thethe final final milemile““

EU:EU:20 20 miomio „final „final milesmiles““


BasicBasicResearch Research

AppliedAppliedResearch Research

TechnologyTechnologyDevelopmentDevelopment

TechnologyTechnologyDiffusionDiffusion

ManagementManagementDecisionDecision

CustomerCustomerDecisionDecision

Innovation Innovation Development Development

thethe „final „final milemile““

•• Innovativeness promoting initiatives which Innovativeness promoting initiatives which focus primarily on new knowledge creation, are focus primarily on new knowledge creation, are

“Lesson Learnt”?“Lesson Learnt”?

incomplete.incomplete.•• Complete initiatives promote new knowledge Complete initiatives promote new knowledge

creation creation andand Innovation Management Innovation Management Competence (IMC)Competence (IMC)


•• What does this mean?What does this mean?




What does it mean: “Promoting new knowledge creation and Innovation Management Competence (IMC)?

What does it mean: “Promoting new knowledge creation and Innovation Management Competence (IMC)?

Promoting:Promoting:•• basic researchbasic research•• applied researchapplied research

l t d R&D j tl t d R&D j t

Promoting:Promoting:•• Innovation Mgmt research (universities)Innovation Mgmt research (universities)•• Innovation Mgmt Education & company trainingInnovation Mgmt Education & company training

INNOSHARE I iti tiINNOSHARE I iti ti

CC

•• selected R&D projectsselected R&D projects•• ……

•• INNOSHARE InitiativeINNOSHARE Initiative•• ……


How much to spend IMC Promotion?

• rule of thumb: 1-2% of governmental R&D spending• this amount represents an „insurance premium“ to make sure,

that governmental money is spent meaningfully.

How much to spend IMC Promotion?

• rule of thumb: 1-2% of governmental R&D spending• this amount represents an „insurance premium“ to make sure,

that governmental money is spent meaningfully.

“Input-Thinking” – as practiced by the EU-Programs -also means:

“Input-Thinking” – as practiced by the EU-Programs -also means:

pplanninglanning a a threethree Michelin Michelin starstar gourmetgourmet restaurantrestaurant•• on a prime on a prime locationlocation on on ChampsChamps d‘Elyséesd‘Elysées•• engagingengaging thethe mostmost famousfamous architectarchitect


g g gg g g•• equippedequipped withwith thethe worldsworlds bestbest librarylibrary of of recipeesrecipees

•• but but nevernever worryworry aboutabout thethe chefschefs cookingcookingcompetencecompetence ……













Examples of “Best-in-Class” CompaniesExamples of “Best-in-Class” Companies„Best„Best--inin--Class“ Class“ companiescompanies concreteconcrete measuresmeasures toto promote promote innovationinnovation cultureculture (Google, „Innovation (Google, „Innovation ProfessionalsProfessionals“)“)

havehave highhigh top top mgmtmgmt innovationinnovation exposureexposure ((promotingpromoting newnew productsproducts in in publicpublic, , identificationidentificationwithwith innovationinnovation//technologytechnology relatedrelated companycompany visionsvisions))

Follow a „Follow a „Innovation Innovation LeadershipLeadership VisionVision““

havehave dedicateddedicated innovationinnovation//technologytechnology responsibilitiesresponsibilities on on upperupper mgmtmgmt levelslevels ((boardboard of of directorsdirectors, , chiefchief innovationinnovation ((technologytechnology) ) officersofficers CIO/CTO)CIO/CTO)

standardstandard agendaagenda item „item „innovationinnovation““

exploreexplore systematicallysystematically customercustomer needsneeds ((productproduct applicationapplication processprocess analysisanalysis))

havehave systemicallysystemically informationinformation inflowinflow („Business („Business IntelligenceIntelligence Systems“)Systems“)

pursuepursue „„Open InnovationOpen Innovation“ strategies“ strategies

keepkeep closeclose collaborationscollaborations withwith „Lead Users“ „Lead Users“ and and „Lead „Lead SuppliersSuppliers““


followfollow carefullycarefully thethe „„startstart--upup scenescene“ („Start“ („Start--upup Watch List“)Watch List“)

havehave twotwo separatedseparated howeverhowever linkedlinked processesprocesses forfor technologytechnology and and productproduct innovationsinnovations

deploydeploy externalexternal competenciescompetencies byby wayway of of strategicstrategic alliencesalliences

taketake measuresmeasures toto preservepreserve knowhowknowhow acrossacross divisionaldivisional bounderiesbounderies („Communities of („Communities of Practice“)Practice“)

„„Turn Turn productsproducts intointo servicesservices“ (“ (HiltiHilti, , newnew businessbusiness model)model)





Google‘s Nine Principles of Innovation ManagementGoogle‘s Nine Principles of Innovation Management

1. Innovation, not instant perfection.New products are launched early, rather than trying to perfect those ideas behind closed doors. Customer feedback and popularity prove which projects are most successful.

2. Share everything you can.Small teams that communicate openly have proved the best results for Google. Everyone knows what everyone else is working on.

3. You’re brilliant, we’re hiring.The bar for hiring new employees is set very high. Focus more on generalists rather than specialists.

4. Allow employees to pursue their dreams.Employees’ time follows a 70/20/10 model: 70% they work on Google’s search and ad flagships; 20% on new programs like Images, Desktop; 10% of the ti l th i hi h i k/hi h d j t G l

6. Don’t politic – use data.With all the ideas floating around Google, the best way to determine which may work is to use supportive data. “Data beats opinion.”

7. Creativity loves restraint.“Let people explore but set clear boundaries for that

Eric Schmidt , Google CEOEric Schmidt , Google CEO


time employees pursue their own high risk/high reward projects. Google Earth is a result of one of those projects.

5. Ideas come from everywhere.Sometimes Google turns to the public for new ideas. The Google mastheads, which are customized for holidays and events, are taken from non-employee submissions. One of the mastheads was designed by a 12-year-old girl.(masthead = logo)

“Let people explore, but set clear boundaries for that exploration!”

8. Get users and usage – the money will follow. Primarily focus on creating things that are innovative and useful for people, not something you can sell.

9. Don’t kill projects, morph them.Google doesn’t waste ideas. Instead, they try to change and transform them into something the company finds useful.





ExampleExample::

SasolSasol AG, Germany AG, Germany Chemical Chemical SpecialitiesSpecialities CompanyCompany

Executive Board Executive Board MeetingMeeting1.1. MinutesMinutes2.2.3.3.4.4. Innovation (CIO)Innovation (CIO)55

“Innovation Professionals”: a Strategic “Combat Group” “Innovation Professionals”: a Strategic “Combat Group” The The groupgroup of „Innovation of „Innovation ProfessionalsProfessionals“ (GIP) “ (GIP) •• constitutesconstitutes a a competencecompetence networknetwork•• underunder guidanceguidance of of thethe CTO (CIO)CTO (CIO)•• promotespromotes innovativenessinnovativeness acrossacross thethe entireentire companycompany•• servesserves thethe CTO (CIO) CTO (CIO) toto fulfillfulfill hishis resposibilityresposibility forfor thethe agendaagenda pointpoint

„Innovation“ of „Innovation“ of thethe regularregular Executive Board MeetingsExecutive Board Meetings•• meetsmeets periodicallyperiodically

PeriodicalPeriodical Group Group Meetings & WorkshopsMeetings & Workshops5.5.

BusinessBusinessDivisionDivision



CorporateCorporateStaffStaff UnitsUnits

Executive BoardExecutive Board

CTO/CIOCTO/CIO

InnoProfInnoProf R&D R&D MgrMgr

CTO/CIOCTO/CIOCTO/CIOCTO/CIO

InnoProfInnoProf R&D R&D MgrMgr

CTO/CIOCTO/CIO


Innovation ProfessionalInnovation Professional•• careercareer potentialpotential•• fromfrom anyany companycompany functionfunction•••• focusedfocused innovationinnovation trainingtraining••

Agenda GIPAgenda GIP--MeetingsMeetings•• outlookoutlook: : newnew technologiestechnologies? ? newnew productsproducts? ? newnew competitioncompetition??•• essential essential literatureliterature? ? •• productproduct pipelinepipeline: : currentcurrent situationsituation•• „„startstart--up‘sup‘s watchlistwatchlist““•• newnew productproduct innovationinnovation projectsprojects??••

R&D ManagerR&D Manager•• responsibilitiesresponsibilities forfor

productproduct & & processprocessinnovationsinnovations

•••• focusedfocused innovationinnovation

trainingtraining••




„Innovation Professionals“: Examples„Innovation Professionals“: Examples

nals“

15 trainedInnovation Professionals


global leader in enhanced quality of life for orthopaedic patients.

hirky, PhD, DBA

In the uvex world we intend to be leaders in innovation, creating value-oriented growth on a

global basis in all our areas of activities and markets.

Value follows innovation!

„Innovation Profess

130 to be trained


ETH Department of Management, Technology, and Economics, - Prof. Hugo Ts

Sasol Germany is a leading producer of solvents and inorganic specialities such as high purity alumina, as well as surfactants and

surfactant intermediates.


With premium income amounting to over € 17bn and 50’000 employees, ERGO is one of the major insurance groups in Europe.

Innovation Professionals

Top Management Innovation Exposure

Top Management Innovation Exposure






Gorenje, Slovenia

A Paradigm Shift:“From Technology Leadership to Innovation Leadership”

A Paradigm Shift:“From Technology Leadership to Innovation Leadership”

Company‘s self-conceptCompany‘s self-concept

I Company products (technology) focusedI Company products (technology) focused II Customer innovation focusedII Customer innovation focusedI. Company products (technology) focusedI. Company products (technology) focused II. Customer innovation focusedII. Customer innovation focused

A A companycompany „„saidsaid“ “ yesterdayyesterday::

„„WeWe areare a a leadingleading suppliersupplier of of polishingpolishing technologiestechnologies!“!“

Same Same companycompany „„sayssays“ “ todaytoday::

„„WeWe enableenable perfectperfect surfacessurfaces!“!“

CompanyCompany CustomerCustomer CompanyCompany CustomerCustomerInnovationInnovation InnovationInnovation


polishingpolishing technologiestechnologies!!

•• technologytechnology capabilitycapability drivendriven•• R&D R&D focusedfocused•• technologytechnology isis partial partial solutionsolution•• limited limited innovationinnovation potentialpotential

•• marketmarket needneed drivendriven•• customercustomer focusedfocused•• technologytechnology isis partpart of a of a solutionsolution•• extendedextended innovationinnovation potential potential

((includingincluding serviceservice businessesbusinesses))




Business Innovation: “Infection Control”Business Innovation: “Infection Control”

case: washing machine producer case: washing machine producer

multiplication of washing, cleaning & drying multiplication of washing, cleaning & drying competence into hospital and competence into hospital and pharmapharma industryindustry

under innovation vision under innovation vision “we provide “we provide infection control”infection control”: business extension: : business extension: disinfection, sterilisation, packaging, disinfection, sterilisation, packaging,


detergentsdetergents

new business > new culture > new new business > new culture > new organisational unit: organisational unit: BelimedBelimed Co.Co.

highly profitable: Sales highly profitable: Sales 2011 2011 CHF CHF 195.6 (+8%)195.6 (+8%)

HP with Strong Normative Technology Management StructuresHP with Strong Normative Technology Management Structures

Executive ManagementExecutive Management

Technology Technology Adv. BoardAdv. Board

Board of Board of DirectorsDirectors

Technology Technology CommitteeCommittee

DecemberDecember 19, 2002. … 19, 2002. … HP HP hashas createdcreated a a technologytechnology advisoryadvisory boardboard peopledpeopled withwithluminariesluminaries likelike Internet Internet pioneerpioneer VintonVinton

CerfCerf toto givegive itit outside outside perspectiveperspective on on itsitsstrategystrategy..Léo ApothekerLéo ApothekerLéo ApothekerLéo ApothekerCathie Cathie LesjakLesjakCathie Cathie LesjakLesjakMark HurdMark HurdMark HurdMark HurdRobert P. Robert P. WaymanWaymanRobert P. Robert P. WaymanWaymanCarlyCarly FiorinaFiorinaCarlyCarly FiorinaFiorinaMeg WhitmanMeg WhitmanMeg WhitmanMeg Whitman

Business SegmentsBusiness Segments

Technology CouncilTechnology Council

CTOCTO CTOCTO CTOCTOCTOCTO

CTOCTOCEOCEO CFOCFO CMOCMO CHRCHR EVPEVP

EVPEVPEVPEVP EVPEVP EVPEVP EVPEVP EVPEVP

Technology CouncilTechnology Council

DecemberDecember 19, 2002. In an 19, 2002. In an unusualunusual stepstep forfor a a large large companycompany, Hewlett, Hewlett--Packard'sPackard's boardboard of of

directorsdirectors hashas createdcreated aa technologytechnology subsub--committeecommittee toto helphelp ensureensure thatthat thethe PaloPalo Alto Alto

computercomputer and and printerprinter giantgiant doesn'tdoesn't miss miss anyany moremore bigbig technologytechnology revolutionsrevolutions

Shane V. Shane V. RobisonRobisonChiefChief CTO CTO

Shane V. Shane V. RobisonRobisonChiefChief CTO CTO

ppChairman & CEOChairman & CEO

ppChairman & CEOChairman & CEO

jjChairman & CEOChairman & CEO

jjChairman & CEOChairman & CEOChairman & CEOChairman & CEOChairman & CEOChairman & CEO

yyChairman & CEOChairman & CEO




ggChairman & CEOChairman & CEO

ggChairman & CEOChairman & CEO


CTOCTO CTOCTO CTOCTO

Technology CouncilTechnology Council•• chairedchaired byby thethe ChiefChief CTOCTO•• setssets thethe company'scompany's technologytechnology agendaagenda, , •• evaluatesevaluates technologytechnology standardsstandards

initiativesinitiatives, , •• allocatesallocates technicaltechnical resourcesresources, , •• coordinatescoordinates crosscross--companycompany architecturearchitecture

strategiesstrategies and and platformsplatforms, , •• and and conductsconducts periodicperiodic technologytechnology auditsaudits..

ChiefChief CTO CTO ChiefChief CTO CTO

CTOCTOShane Shane RobisonRobison, , ChiefChief CTOCTO,, isis responsibleresponsible toto thethe CEO CEO forfor•• shapingshaping HP'sHP's overalloverall corporatecorporate strategystrategy and and technologytechnology agendaagenda, ,

•• steeringsteering thethe company'scompany's $4 $4 billionbillion annualannual R&D R&D investmentinvestment. .

•• leadingleading thethe company'scompany's seniorsenior CTO‘sCTO‘s and and thethe directordirector of HP Labsof HP Labs, ,

•• leadingleading thethe company'scompany's strategystrategy and and corpcorp. . developmentdevelopment effortsefforts, ,

•• includingincluding mergersmergers, , acquisitionsacquisitions, , divestituresdivestitures and and partnershipspartnerships. .




Example: Time Analysis of Cable Racks Installation (Hilti)Example: Time Analysis of Cable Racks Installation (Hilti)

low-tech low competition improvement

potential: 30-40%

low-tech low competition improvement

potential: 30-40%Existing Business hi h t h

Existing Business hi h t h

Source of Innovation: Work AnalysesSource of Innovation: Work Analyses

MeasureMeasure 28%28%

potential: 30 40% new innovation

potential

potential: 30 40% new innovation

potential

high-tech strong competition improvement potential:

4-8% rather depleted

innovation potential

high-tech strong competition improvement potential:

4-8% rather depleted

innovation potential

DrillDrill 17%17%

Place the plugsPlace the plugs 10%10%

Mount the consolesMount the consoles 24%24%


Mount the cable racksMount the cable racks 21%21%

Research Organization HiltiResearch Organization Hilti

Corporate Central Corporate Central ResearchResearch

Interdisciplinary Interdisciplinary

DemolitionDemolitionSystemsSystems

Search TeamsSearch Teams

Positioning & Positioning & Sensor TechnolgySensor Technolgy

FasteningFasteningSystemsSystems

Work Flow Work Flow AnalysesAnalyses


SystemsSystems

QualityQualityManagementManagement

Sensor TechnolgySensor TechnolgySystemsSystemsAnalysesAnalyses

NumericalNumericalSimulationSimulation

Materials &Materials &EngineeringEngineering




Videoanalysis: Example Hilti Direct Fastening Technology ApplicationVideoanalysis: Example Hilti Direct Fastening Technology Application

Duration of Welds, Welder 0

350

400

450

500

Fix Deck - Phoenix


0

50

100

150

200

250

300

350

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

10.0

0

10.5

0

sec

Fas

ten

ing

Po

ints

http://www.hilti.com

16.01.2003 / TNc, TNn / 040116 TT prep.ppt

• Welding related activities amount to 86% of the time (including hammer)

• Average welding rate of 334 welds per hour

• Rod was changed on average once every 11 welds

• Actual weld time was 2.6 seconds

56%

2%

11%

8%

0%

2%

7%

0%

3%

1%

0%

8%0%

0%2%

Puddle weld

Skylight weld

Hammer deck

Walk during fastening

Breakdown

Handle cable

Recover

Refill rods

Walk

Interruption

Tidy/arrange

communicate

Safety measures

Idle

Misc. carry

Business (Technology) Intelligence Systems

Business (Technology) Intelligence Systems





StraumannStraumannPioneerPioneer forfor dental dental implantimplant technologiestechnologies業界をリードするインプラントシステム業界をリードするインプラントシステム

StraumannStraumannPioneerPioneer forfor dental dental implantimplant technologiestechnologies業界をリードするインプラントシステム業界をリードするインプラントシステム

Financial Financial PerformancePerformance 20102010 20092009

737737 736736Sales Sales MioMio CHFCHF

EarningsEarnings


131131 146146

20%20% 25%25%

EarningsEarningsMioMio CHFCHF

ROEROEReturn on Return on equityequity

Opportunity Landscape 2004Opportunity Landscape 2004

33rdrd

teethteeth

Connect.Connect.Connect.Connect.technostechnos

GrowthGrowthGrowthGrowthfactorsfactorsBoneBoneBoneBone

SubstiSubsti--tutetute

SoftSoft „Today‘s Playground“„Today‘s Playground“

SurfaceSurfaceSurfaceSurfacetechnostechnos

CeraCera--micsmics

NanoNanoNanoNanotechnotechno--

logylogy

PolyPoly--mersmers

technostechnos

Industr.Industr.ProcessProcessIndustr.Industr.ProcessProcess

Prototyp.Prototyp.RapidRapid

Prototyp.Prototyp.

ee traitrai--ee--traitrai--ningningQ.A. inQ.A. in

practicepractice

ee

erceerce

ee--commcomm--

erceerce

Immed.Immed.Immed.Immed.replacereplace Immed.Immed.Immed.Immed.

loadingloading

Alternat.Alternat.Alternat.Alternat.Prod.Prod.

IT inIT inIT inIT inProducProduc

tiontion

VirtualVirtualtrainingtraining

P iP iP iP i

B2BB2B

VentureVentureVentureVenturecapitalcapital

integrat.integrat.OsseoOsseo--integrat.integrat.

tissuetissueeng.eng.

y ygy yg

„Tomorrow‘s Field“„Tomorrow‘s Field“

„World BeyondTomorrow“„World BeyondTomorrow“

PolyPoly--mersmers


DentalDentalSchoolSchoolDentalDentalSchoolSchool

FinancialFinancialFinancialFinancialsupportsupport C.A.T.C.A.T.

PracticePractice

SupportSupport

PracticePracticeMgmt.Mgmt.

SupportSupport „Opportunities“„Opportunities“

DentalDentalSchoolSchool

IT inIT inProducProduc

tiontion

Savioz, 2001 (Dissertation)Savioz, 2001 (Dissertation)




Gatekeeper‘s Responsibilityゲートキーパーの責任

Gatekeeper‘s Responsibilityゲートキーパーの責任

出版出版出版出版

学会学会

スピーチスピーチ

研究プロジェクト研究プロジェクト

ニーズニーズ特許特許

開発プロジェクト開発プロジェクト市場研究市場研究

傾向傾向

証拠証拠

コアテクノロジーコアテクノロジーPERIODICALPERIODICALREPORTSREPORTSﾎﾟﾎﾟ


Business Missionand Strategy

ビジネスミッションと戦略

アプリケーションアプリケーション

公示公示

製品製品

ﾚﾎﾟｰﾄﾚﾎﾟｰﾄ

Science & Technology Science & Technology 科学・技術科学・技術

MarketMarket 市場市場

CompetitionCompetition 競争競争

ConclusionsConclusions 結論結論





Technology Intelligence @ Zeptosens

PatentsPatents

Partner firm IndustryBusinessDeveloperPh.D.

Ph.D.Ph.D.

WeeklyWeekly MeetingMeetingWeeklyWeekly MeetingMeeting•• Agenda item 1Agenda item 1•• „Technology Watch“„Technology Watch“•• ......

•• Agenda item 1Agenda item 1•• „Technology Watch“„Technology Watch“•• ......

WeeklyWeekly MeetingMeeting•• Agenda item 1Agenda item 1•• „Technology Watch“„Technology Watch“•• ......

ScientificScientificcommunitycommunity

ETH

Uni

CEO

Ph.D.

Ph.D.

Ph.D.

Ph.D.

Lab Lab

Assi

Ph.D.

Ph.D.

• Opportunities/Threats?• Problem in search of

Technology?• Technology in search of

problem?


communitycommunity

BusinessBusinessStrategyStrategyMeetingMeeting

BusinessBusinessStrategyStrategyMeetingMeeting

CEO

Ph.D.

Ph.D.

Ph.D. Ph.D.

Strategic technologyStrategic technology& business decisions& business decisions

Pursue „Open Innovation“ Strategies

Pursue „Open Innovation“ Strategies





Innovation Leadership: Strengthening „External Innovation“ (5)Innovation Leadership: Strengthening „External Innovation“ (5)

P&G is buyingP&G is buyingtechnologiestechnologies


P&G is SellingP&G is Sellingtechnologiestechnologies

Wealth of Lead User“ Wealth of Lead User“ Wealth of „Lead User and „Lead Supplier“

Collaborations

Wealth of „Lead User and „Lead Supplier“

Collaborations





„Guesthouse“ Concept (Example Croon & Lucke GmbH)„Guesthouse“ Concept (Example Croon & Lucke GmbH)

Innovative Innovative SuppplierSuppplier/Customer Collaboration/Customer Collaboration Still as a rule, suppliers are contacted at a Still as a rule, suppliers are contacted at a late stage late stage

of product developmentof product development Also customer contacts are Also customer contacts are

SupplierSupplier

of product developmentof product development. Also customer contacts are . Also customer contacts are often restricted to rare occasions during the initial often restricted to rare occasions during the initial phases of orders. This way supplier competences are phases of orders. This way supplier competences are not fully deployed. And product development may not not fully deployed. And product development may not be in line with (changing) customer needs. be in line with (changing) customer needs.

At At mtsmts GmbH GmbH suppliers and customers are included suppliers and customers are included into product innovation projects systematically and into product innovation projects systematically and early onearly on allowing to make complete use of supplier’s allowing to make complete use of supplier’s competences and guarantee best integration into competences and guarantee best integration into

CompanyCompany

TeileTeile--datendaten

ProductProductInnovationInnovation

ProjectsProjects


p g gp g gcustomer business and innovation processes.customer business and innovation processes.

CustomerCustomer TeileTeile--

datendaten

Communitiesof Practice (CoP)

Communitiesof Practice (CoP)





Communities of Practice at ChryslerCommunities of Practice at Chrysler

Origination of CoP‘s („Tech-Clubs“): Reorganization from functional to platform structureOrigination of CoP‘s („Tech-Clubs“): Reorganization from functional to platform structure

ChryslerChrysler ChryslerChrysler

Functional StructureFunctional Structure Platform (Divisional) StructurePlatform (Divisional) Structure

ChryslerChrysler

R&

DR

&D

Prod

uctio

nPr

oduc

tion

Mar

ketin

gM

arke

ting

Fina

nce

Fina

nce

ProductsProductsLarge carsLarge carsSmall carsSmall cars

TrucksTrucks

ChryslerChrysler

Large carsLarge cars Small carsSmall cars TrucksTrucks MinivansMinivans JeepsJeeps

R&

DR

&D

Prod

uctio

nPr

oduc

tion

Mar

ketin

gM

arke

ting

Fina

nce

Fina

nce

R&

DR

&D

Prod

uctio

nPr

oduc

tion

Mar

ketin

gM

arke

ting

Fina

nce

Fina

nce

R&

DR

&D

Prod

uctio

nPr

oduc

tion

Mar

ketin

gM

arke

ting

Fina

nce

Fina

nce

R&

DR

&D

Prod

uctio

nPr

oduc

tion

Mar

ketin

gM

arke

ting

Fina

nce

Fina

nce

R&

DR

&D

Prod

uctio

nPr

oduc

tion

Mar

ketin

gM

arke

ting

Fina

nce

Fina

nce

Advantages & Advantages & DisadvantagesDisadvantages of of ReorganizationReorganization

i di d k tk t d d d td t ff


MinivansMinivansJeepsJeeps

increasedincreased marketmarket and and productproduct focusfocus reducedreduced productproduct developmentdevelopment cyclecycle time (time (fromfrom 60 60 toto 30 30 monthsmonths)) duplicationduplication of of partsparts uncoordinateduncoordinated relationshipsrelationships withwith supplierssuppliers lessonslessons learnedlearned diddid not not traveltravel acrossacross platformplatform bounderiesbounderies thereforetherefore: : reducedreduced organizationalorganizational learninglearning

Reasons for creating the Reasons for creating the „Tech Clubs“: need for „Tech Clubs“: need for communication across communication across

platformsplatforms

ChryslerChrysler

Large carsLarge cars Small carsSmall cars TrucksTrucks MinivansMinivans JeepsJeeps

R&

DR

&D

duct

ion

duct

ion

rket

ing

rket

ing

nanc

ena

nce

R&

DR

&D

duct

ion

duct

ion

rket

ing

rket

ing

nanc

ena

nce

R&

DR

&D

duct

ion

duct

ion

rket

ing

rket

ing

nanc

ena

nce

R&

DR

&D

duct

ion

duct

ion

rket

ing

rket

ing

nanc

ena

nce

R&

DR

&D

duct

ion

duct

ion

rket

ing

rket

ing

nanc

ena

nce

Chrysler Tech ClubsChrysler Tech Clubs•• Eight Tech ClubsEight Tech Clubs across platform across platform

bounderies cover main disciplines bounderies cover main disciplines in product development.in product development.

•• Objective: increase disciplinary Objective: increase disciplinary competence across platforms competence across platforms

Communities of Practice at Daimler: “Tech Clubs”Communities of Practice at Daimler: “Tech Clubs”

Advancec Vehicle

Enineering

Advancec Vehicle

EnineeringBodyBody ChassisChassis Electrical

ElectronicsElectrical

Electronics

RR

Prod

Prod

Mar

Mar Fin

Fin RR

Prod

Prod

Mar

Mar Fin

Fin RR

Prod

Prod

Mar

Mar Fin

Fin RR

Prod

Prod

Mar

Mar Fin

Fin RR

Prod

Prod

Mar

Mar Fin

Fin competence across platforms competence across platforms

•• Structured at multiple levels into Structured at multiple levels into subsub--clubs.clubs.

•• i.e. Tech Club Body consists of 14 i.e. Tech Club Body consists of 14 subspecialities such as Wipers, subspecialities such as Wipers, Bumpers and Doors.Bumpers and Doors.

•• Complimentary: Engineering Complimentary: Engineering Books of Knowledge (EBoK) Books of Knowledge (EBoK) capturing relevant knowledge for capturing relevant knowledge for engineers.engineers.


InteriorInterior PowertrainPowertrainScientific

Labs & Proving Grounds

Scientific Labs & Proving Grounds

Vehicle Development

Vehicle Development













INNOSHARE: A First Step Towards Promoting InnovativenessINNOSHARE: A First Step Towards Promoting Innovativeness

•• INNOSHARE: An INNOSHARE: An organizedorganized howeverhowever informal informal waywayof of sharingsharing knowledgeknowledge amongamong companiescompanies whichwhich arearemotivatedmotivated toto improveimprove thethe productivityproductivity of of theirtheirInnovation/Technology Management Competence. Innovation/Technology Management Competence.

•• OrganizerOrganizer: e. g. : e. g. GENERAL DIRECTORATE FOR SCIENCE & TECHNOLOGY

Directorate for Science and Technology

Moderator

SCIENCE & TECHNOLOGY

• Participants: 5 – 8 technology and innovation driven companies as a pioneer group

• Meetings: 2-3 /year

• Moderator: Technology & Innovation Management professional

• Agenda: e. g. • current innovation & technology management

INNOSHARE Meeting

Representatives frominnovation/technolgy driven companies


• current innovation & technology management methods & concepts being used

• positive & negative experiences using them• Intentions to extend the current repertoireSpecific themes: e. g. • Business Intelligence Systems• How to promote Innovation Culture

Presentation - ETH Zürich

Documents

Transcript of Presentation - ETH Zürich