01 THOMZIK Defining Innovation

INSTITUTE FOR APPLIED INNOVATION RESEARCH
Seminar Innovation and Technology Promotion 2009
What is innovation? Why is it important?

Development of a common understanding
P f D
Prof. Dr. M
Markus
k ThThomzik
ik
Berlin, January 06th - 09th, 2009
0
Agenda
1 Comprehension of innovation
1.
2. Management of innovation
© Institute for Applied Innovation Research, Bochum, Germany

Innovation – Programmatic Guideline of Company Acting
 Increasing pressure to innovate during the last years
 Innovation is associated with the hope for growth and

competitiveness
 Agreement on necessity of innovation can be quickly

achieved
 The proof of innovativeness becomes an “obligation”

obligation for
companies
 Search for patent remedies and magic formulas for

innovation is booming

Innovations – Motor of Economical Development
„Get innovative or get dead.“

Management-”Guru”
g Tom Peters
„To
To be successful for any length of time a firm must innovate
innovate.“
Innovation-Scientist Richard R. Nelson, George Blumenthal Professor of International and Public Affairs,
Columbia University, New York, USA
„ … today no one needs to be convinced that innovation is important …

How to innovate is the key
yqquestion.”
Management-Theorist Peter Drucker (1909-2005)

Comprehension of Innovation
Innovation as a key of
competitiveness and sustainability
Research = Transformation of money into knowledge

Innovation = Transformation of knowledge into money

German Invention – Foreign Success
Invented in Germany … … successfully marketed in …
Facsimile (fax machine),

Rudolf Hell, 1929
Computer Z3,
Konrad Zuse, 1941
Wankel Engine
Felix Wankel, 1957
Video Technique,
Grundig, 1969
MP3-Format,
Prof. Brandenburger, 1985

Comprehension of Innovation:
Innovation is any change of status quo
• Extended concept
p of innovation:
– product and process innovations as well as
organizational and social innovations
– subjective understanding of innovations
– type
yp of Innovation: from incremental ((improving)
p g) innovations
to radical (leap) innovations
– innovative activities: from single/occasional to continuous
activities
ti iti
• Unlike inventions real innovations are novelties which have

become operational and/or affect the demand

Innovation between wish and reality
 Real innovation efforts are at first substituted by the

protection of the status quo and vested rights
 Excessive rationalization efforts and the retreat on core

businesses destroy own potentials for innovation
 Market trends and obsolete factors of success become

substitutes for the own ability of orientation
 Programmatic changes fail due to insufficient own

competencies

Agenda
1 Comprehension of innovation
1.
2. Management of innovation

Main steps of the innovation process
Generation of Evaluation
Ideen
Development Realization
innovative and selection
orientation
of ideas auswählen
of ideas
of ideas
Creation of basic conditions for innovation

Main tasks of innovation management
 Creation of own orientation: (new) positioning within

changing value chains
 Identifying and overcoming of innovation barriers:

preparing the realization of ideas for innovation
 Culture of innovation: creating favorable conditions for

successful development
p processes
p (realization
( of ideas))

Identification of future fields of innovation
Ideen
auswählen
of ideas of ideas
orientation of ideas
Creation of basic conditions for innovations
Future innovation
fields have to be
identified and Status
defined in order to quo (improved) solutions in
actual fields
give
i orientation
i t ti to t
the creativity of
employees.
p y

Innovation Matrix
Generation of
Development
innovative
of ideas
orientation
Customers / Markets
Current New
urrent
Improvement of Development of new
Technology
s / Serviices
Incremental
existing products; customers resp.
orientated
markets with effective
Innovations
Cu
market
k t launch
l h
Innovations
technological potentials
Prroducts
Conviction of existing Breaking new grounds

Market-
ew
customers by new resp. beyondLateral

existing
Ne
orientated
i technological
additional d experiences in markets
Innovations
Innovations
solutions and technologies

Functions performed in a different way!
Ideen
auswählen
of ideas of ideas
Technical
Capability
Time



p processes
p (realization
( of ideas))

Barriers on the way to innovations
Personnel
Input Organization Output
Technology
Company
Environment
There are
- internal, i.e. personal, technical und organizational, but also
- external barriers.
barriers

Innovations are made from ideas -
but not every idea results in innovation
Ideen
auswählen
of ideas of ideas
Percent 100
90
80
70
60
50
40
30 33%
20
13%
10 6%
0
„Official“
Official“ Development Market Successful
Product Ideas of Prototypes launch Products

Great false estimations
Ideen
auswählen
of ideas of ideas
1898 Werner von Siemens “The electrical lamp will never

overcome the gaslight.”
1908 Leader of the London “I propose to close the office, all

P t t and
Patent d Trademark
T d k important inventions are done.”
Office
1927 Harry Warner “Who the hell wants to hear actors

(Warner Brothers) talk?”
1977 Ken Olsen “There is no reason to have a computer

(Founder DEL) at home.”

Innovationsideen:Typische
Arguments against innovation ideasGegenargumente
Ideen
auswählen
of ideas of ideas
Innovation ideas:
typical
yp counter-arguments
g
56%  “The product will not function!” (81%)

 “We do not have any
y experience
p in this field!” ((71%))
44% Objections  “We only will be imitated!” (62%)

or  “We are missing know-how to realize the idea!”
No ((60%))
doubts
objections
bj ti
or  “We cannot finance the project!” (59%)
doubts  “We do not have the people for this project!” (55%)
 “There is no market for this innovation!” (50%)
 “Do not fit in the strategic direction!” (48%)
 “We do not need anything new!” (45%)
N=409 Product innovations

Innovations are complex system transformations
Ideen
auswählen
of ideas of ideas
? ? ?
Automobile as innovation
 Conflicts by new means of travel
 “E
“Engineering-Competencies”
i i C t i ” off the
th
driver
 Service- and maintenance network
 Upgrading of the infrastructure
 Necessity
N it off llegall integration
i t ti
 ...




p processes
p (realization
( of ideas))

Only single persons or small groups push innovations
beyond mainstream and against resistance
Hesitating
people
Followers Deniers
Initiators Supporters Opponents Emigrants

People themselves are the biggest innovation barriers
Generation of
Experience
Development
Evaluation
Ideen
Realization
auswählen
of ideas of ideas
Cognition Motivation
Ability
Competence
Organizational
involvement

Enable radical innovations
Ideen
auswählen
of ideas of ideas
Free space for acting:

- Pressure to act +
• temporally free space
• discharge from routines +
“Playing field”
• provision of budgets without
ee space for acting

expectations and Innovation teams
• protection by promoters
consequences
Pressure to act:
• Financial incentives?
• Integration of individual Innovations by Search for
Fre
development and coincidence/

i id / confirmed
fi d
innovation project broad agreement innovation paths
-

Challenges of a modern innovation management in SME
Innovations can neither be the main

nor the permanent task of small and
medium-sized
medium sized enterprises (SME).
(SME)
The balance between innovation and
routine is the challenge of a modern
innovation management.
management

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INSTITUTE FOR APPLIED INNOVATION RESEARCH

Seminar Innovation and Technology Promotion 2009

What is innovation? Why is it important?

Berlin, January 06th - 09th, 2009

© Institute for Applied Innovation Research, Bochum, Germany

 Increasing pressure to innovate during the last years

 Innovation is associated with the hope for growth and

 Agreement on necessity of innovation can be quickly

 The proof of innovativeness becomes an “obligation”

 Search for patent remedies and magic formulas for

© Institute for Applied Innovation Research, Bochum, Germany

„Get innovative or get dead.“

„ … today no one needs to be convinced that innovation is important …

© Institute for Applied Innovation Research, Bochum, Germany

Research = Transformation of money into knowledge

© Institute for Applied Innovation Research, Bochum, Germany

Facsimile (fax machine),

© Institute for Applied Innovation Research, Bochum, Germany

• Unlike inventions real innovations are novelties which have

© Institute for Applied Innovation Research, Bochum, Germany

 Real innovation efforts are at first substituted by the

 Excessive rationalization efforts and the retreat on core

 Market trends and obsolete factors of success become

 Programmatic changes fail due to insufficient own

© Institute for Applied Innovation Research, Bochum, Germany

© Institute for Applied Innovation Research, Bochum, Germany

Creation of basic conditions for innovation

© Institute for Applied Innovation Research, Bochum, Germany

 Creation of own orientation: (new) positioning within

 Identifying and overcoming of innovation barriers:

 Culture of innovation: creating favorable conditions for

© Institute for Applied Innovation Research, Bochum, Germany

Creation of basic conditions for innovations

© Institute for Applied Innovation Research, Bochum, Germany

Conviction of existing Breaking new grounds

customers by new resp. beyondLateral

© Institute for Applied Innovation Research, Bochum, Germany

Creation of basic conditions for innovations

 Creation of own orientation: (new) positioning within

 Identifying and overcoming of innovation barriers:

 Culture of innovation: creating favorable conditions for

© Institute for Applied Innovation Research, Bochum, Germany

Input Organization Output

© Institute for Applied Innovation Research, Bochum, Germany

Creation of basic conditions for innovations

© Institute for Applied Innovation Research, Bochum, Germany

Creation of basic conditions for innovations

1898 Werner von Siemens “The electrical lamp will never

1908 Leader of the London “I propose to close the office, all

1927 Harry Warner “Who the hell wants to hear actors

1977 Ken Olsen “There is no reason to have a computer

© Institute for Applied Innovation Research, Bochum, Germany

Creation of basic conditions for innovations

56%  “The product will not function!” (81%)

44% Objections  “We only will be imitated!” (62%)

© Institute for Applied Innovation Research, Bochum, Germany

Creation of basic conditions for innovations

 Service- and maintenance network

 Upgrading of the infrastructure