Sven Schimpf Industry Innovation: Why, What and How ... - Inmetro

Sven Schimpf Industry Innovation: Why, What and How

Seite 1 © Fraunhofer IAO, IAT Universität Stuttgart

Overview

 Fraunhofer Institute for Industrial Engineering IAO  Importance of Industry Innovation.  Industrial Cases on Innovation Management.  Trends in Innovation Management.


Profile of IAO and IAT www.iao.fraunhofer.de – www.iat.uni-stuttgart.de Founded: Director: Spath Budget: Staff:

IAO – 1981 IAT – 1991 Prof. Dr.-Ing. Dr.-Ing. E.h. Dieter 28 Mio €, of which 38% from industry contracts* 400 employees

* Figures for 2009, including IAT University of Stuttgart

Technology & Innovation Management

Organization Design

Human Factors

Personal Management

Information Technology


Laboratories, Demonstration and Consulting Centres

Virtual reality lab, »PIcasso« and Powerwall

Visual enterprise management

Model factory

(Visum)

E-Business innovation centre


Office Innovation Centre (OIC)

Vehicle interaction lab

Lab Innovation Centre (LIC)

Business Unit R&D-Management @ IAO • Strategic Innovation, R&D and Technology Management: R&D Strategies and Program Management, Technology Intelligence and Planning, Innovation Management • R&D Processes and Organization: R&D Assessments, R&D Organization and R&D performance • Innovative IT-Systems in R&D and Engineering: CAx, DMU, PLM, „Digital Factory“, ERP, Project Management and Collaboration • Corporate Development: Innovation Assessment, Processes, Method & Tools 10 Researcher / Consultants 15 Student Research Assistants ~2 Mio Euro Budget  www.rdm.iao.fraunhofer.de


Overview



Kondratieff-Waves: Key Innovations ... ... initiate new industrial and social stages of development

Innovation Cycles

Steamengine, Textile industry

Steel, Railway, Transport

Electr. Eng. Chemistry

Automobile Petrochemistry

Microchip Internet, Automation Mobile Communic. Life Sciences Renewable Energy

Future World? 1850

1900 1950 Early Late Industrialization Industrialization

Servicesociety

2000 Knowledge- Health Age society

Source: cf. in Nefiodow in Capital 1/2 2000


Comparison of Labour Costs and the Implication for R&D – Example of Siemens – Siemens-labour costs / hour for a software engineer 2001 Germany USA Austria Great Britain Hungary Singapore Israel Argentina Brazil Slovakia Romania India

56,50 Euro 52,10 Euro 41,90 Euro Pro’s and Con’s ... 30,40 Euro 28,90 Euro • Outsourcing of R&D destroys 26,90 Euro qualified jobs in Germany 24,80 Euro • combined costing allows 21,70 Euro competitive prices 15,50 Euro • „Local Content“ forces to local 13,00 Euro customization 9,20 Euro • ... 6,80 Euro

Source: www.igmetall.de/Siemens - Siemens, ein Konzern auf der Flucht, Januar 2004


Progress through innovation is the only way to secure prosperity and employment in Germany.

Hans-Jörg Bullinger, President of the Fraunhofer Society


Success Factor „Innovation Management“ „Systematic planning, management and control of innovation processes.“ 1. Effectiveness – invest in the best innovation projects -

Evaluate ideas and select the best ones Optimize the Innovation Portfolio Start (and cancel) innovation projects

2. Efficiency – create the best framework for innovation -

Define processes, structures and methods to support innovation projects Bring forward and update competencies for innovation Support innovation on the highest company level


Innovation Management 9 Areas of Influence of Innovation Management Innovation Innovation Culture Culture (leadership, (leadership, management, management, motivation, motivation, trust, trust, communication) communication) Competence Competence & & Knowledge Knowledge (data, (data, documentation, documentation, information, information, interdisciplinarity) interdisciplinarity)

Strategy Strategy (objectives, (objectives, realisation, realisation, achievement, achievement, framework) framework)

Technology Technology (production (production process, process, resources, resources, components) components)

Processes Processes Products Products & & Services Services (product(productcharacteristics, characteristics, competitive competitive advantages, advantages, hybrid hybrid solutions) solutions)

(activities, (activities, results, results, methods, methods, transparency, transparency, flexibility) flexibility)

Strukture Strukture & & Network Network

Market Market (customers, (customers, market market access) access)

(team, (team, partner, partner, supplier, supplier, cooperation) cooperation)

Project Project Management Management (planning, (planning, control, control, methods, methods, organisation) organisation)


Overview



Innovation Management Selected Industrial Cases

Area Area of of Influence Influence

Market Market

Strategy Strategy

Key Key success success Factor Factor

Customer Customer integration integration

TechnologyTechnologyStrategy Strategy

Application Application of of the the Lead-User Lead-User Approach Approach

Development Development of of aa Technology Technology Strategy Strategy

IndustryIndustryInnovation Innovation Example Example


Case Study: Hilti

Short Company Profile

The Hilti Group is a world leader in developing, manufacturing and marketing products for professional customers in the construction industry and in building maintenance.

Name:

Hilti Corporation

Branch

Professional Electric Tools

Employees: Revenue:

14,390

The Hilti-Portfolio:

Innovation Rate: 28%

• Drilling • Diamond Coring and Cutting • Direct Fastening • Anchoring Systems • Screw Fastening Systems • Installation Systems • Positioning Systems • Firestop and Foam Systems Source: Survey of the Fraunhofer IAO “Integriertes Innovationsmanagement“ Image source: http://www.hilti.com


3,1 bn CHF

Hilti – Integration of Customers into the Innovation Process Gate 1

Gate 2

Customer Integration

Definition Phase

Gate 3 Design Phase

Concept Phase

Analysis of problems in cooperation with customers and definition of relevant criteria regarding customer satisfaction

Concept-test jointly with customers for the assortment of best solutions out of multiple alternatives

Gate 4

Test of customer satisfaction for assessing to which extent customer requirements are met

Gate 5

Gate 6

Market Launch Phase

Launch- & Preparation Phase

Preproduction test in order to verify functionality as well as product quality under practical conditions

Customer feedback for improvement arrangements

Source: Survey of the Fraunhofer IAO “Integriertes Innovationsmanagement“


Hilti – Procedure Chart of Assembling Cable Trays Technologically simple, little competitive pressure

Measuring and marking 28%

Technologically sophisticating, high competitive pressure

Drilling 17% Plugging 10% Assembly of linings 10% Assembly of brackets 14%

Room for improvement:

20%

Cable tray assembling 21%

Source: Survey of the Fraunhofer IAO “Integriertes Innovationsmanagement“


Room for improvement:

4%

Hilti – Setting up the Business Segment Positioning The Results: • Laser measurement has been identified as attractive solution for the building industry regarding surveying and mapping. • The decision to set up this business and to establish the business segment positioning was made. • The concept was implemented shortly through developing competences by cooperation and technology purchase. • Today Hilti provides a wide range of laser measurement tools for construction building site applications.

Source: Survey of the Fraunhofer IAO “Integriertes Innovationsmanagement”


short company profile

Case study: Embraco Embraco belongs to Whirlpool Cor. which is the world’s leading manufacturer and marketer of household appliances. Since 1911, Whirlpool Corp. grew to be a global enterprise with nearly 50 production and technology research centres. The Embraco portfolio:

• standard • VCC • NEK

Source: http://www.embraco.com


• condensing units • sealed units • heat exchangers

name:

Whirlpool Corp.

industry:

electronic household appliances

employees:

68,125

revenue:

13,220 Mill. US$

• Embraco Aerotruck

Embraco: New Products for New Markets

New

Programme Extension

Diversification

Old

Market Penetration

Market Extensions

Product / Technology

Old

Market / Customers

New


Embraco: New Products for New Markets

2) Expert interviews (universities, suppliers, OEMs, end customers), attendance of conferences and trade shows 3) Opportunity formulation and evaluation

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1) Initial assessment of new application areas

4) Idea development for selected opportunities 5) Elaboration of single ideas into product ideas


R&D and Innovation planning at Embraco technology/marketwatch, creation of scenarios strategic planning, product/market/technology roadmaps development of new technologies and products

Feedback interview with Embraco* “We had no systematic approach for identifying, selecting and better understanding technologies. A methodology for setting the right priorities in research and development has been missing.” *Spath (2006) Technologiemanagement in der Praxis, S.41


Overview



Trend #1: From “Closed” to “Open Innovation” Change the way of thinking:

Boundary Company of the Firm boarder

New New Market markets Current Aktueller Current Market Markt market

Research Innovation/ Projects Technologies

Fuzzy Front Research End

From: We will be successful, if we have the best and most ideas in our industry! to: We will be successful, if we use internal and external ideas for us!

Development/ Implementation Development

The better business model as success factor Source: cf. Chesbrough, 2003


Trend #2: Innovation through Cooperation • Options of cooperation • Cooperation or Consortium • Purchasing of R&D services • Joint Ventures • Process of cooperation • Initiation • Implement • Maintenance • Types of cooperation: • Horizontal (economies of scale) • Vertical (knowhow, extended benefits & R&D alliance) • Diagonal (inter-sectoral, new products, services)

Image sources: www.busch-jaeger.de; www.bang-olufsen.com; www.swarovski.com; www.berker.com


Trend #3: From Products to Solutions Maximum value prod./ service bundle

Integrated solution

Minimum value prod./ service bundle

Product

Product and service

? Bundle integration Products and services need to complement each other seamlessly

Process integration Products and services have to be aligned with customers’ processes and interfaces

Individualization Willingness to pay increases with the extent to which offerings can be customized to individual needs

Source: www.fit2solve.de


Trend #4: Low Cost Innovation Rethink Product, Production Processes and Business Models  First popular low-cost solution: southwest airlines, founded 1971 Worldwide emergence of similar concepts (Ryanair, Easyjet, German Wings, Virgin Blue…)  Great popularity and attention caused by low-cost car Tata Nano

Image sources: Southwest Airlines, Tata, OLPC, Chotukool, Oorja, BSH.


Innovativeness ≠ Number of features

Quelle: Kathy Sierra, http://headrush.typepad.com/creating_passionate_users


Thank You!

•

Sven Schimpf [email protected] +49 (0) 711 970 2457
