1. vs.
Successful Innovation Management
The most powerful concepts and solutions of Innovation Management
and Product Development to dramatically improve competitiveness
1S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
2. Intro
Stefan Kutter
Dipl-Ing. (BA), MSc. Technology & Innovation Management
Founder & Head of consurge Innovationsmanagement (2005)
Own Ventures:
– Innobest.net …inno-auditing & venture assentment online tools
– Bestellshop-sw.de …local ERP/CRM for home order agencies & shops
– Start-office.de …Berlin based incubator & shared office hub
Consulting projects & trainings mainly for SMEs in IT, service &
manufacturing
Research in innovation- & start-up management
2S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
3. Opening Questions
How do you experience innovation activities in
Jordan?
Where do you see potential wasted?
What additional knowledge / approaches / skills /
conditions could help you to innovate?
What are your expectations reg. this seminar?
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 3
4. Outline
Part 1 Challenges: understanding the immanent dangers to
any business and why most approaches to innovate still fail so
often (15 min)
Part 2 Success Factors: discussing the most important success
factors of innovation management and its implications for
improving the corporate ability to innovate focusing on idea
management and the stage-gate process of new product
development (25)
Part 3 Business Model Innovation: leveraging profits by
designing and proving business models for each innovation to
successfully implement it into the market (20)
Part 4 Questions & Answers
4S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
5. Definition: What is an innovation?
Anything, that is NEW
&
Successful
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 5
… to anyone
(Company, Group of People, Area…)
… not necessarily inventive!
I claim:
… in any way
(economic, penetration/diffusion…)
7. !! There are more innovation projects actually killing the
company rather than providing breakthrough success!!
Stunning statistic on product innovation success
7
Ability to innovate is turning into an essential core competence
Product Ideas
Graph Sources: IAI Bochum & WU Wien in TR
Innovation Projects Success
Market
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
10. Innovation pressure
Innovation abilities
The Goal: sustainable profit
Profitable
growth
create continious profitable revenue streams even under difficult market
conditions
10S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
11. Product Life Cycle under pressure
11
Source: Pahl/Beitz
Sales
Profit
Sales / Profit
Possible Relaunch
Time
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
12. Product Life Cycle
Profit
Sales
Screening / BM Development Implementation Growth Mature Saturation Decline
1
Market cycle
Development / T2M
12S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
13. Source: Trommsdorff nach IMT Berlin , InWert-Vortragsreihe
The PLC-Scissors
2
1
13
Average market cycles
Average development time
Years
Time
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
14. 2
Surviving the „Scissors-Effect“
higher
success
rates
- Focusing on „Big Ideas“
- Business Model Design
- Integrated Stage Gate Process / Portfolios
- Customer Development / BM Innovation
T 2 M - shorter Time to Market
- pioneer margins
- longer market circle
- more profit
sustainable,
profitable
growth
Increasing corporate
„Innobility“
14S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
15. Corporate Life Cycle by Adizes
15
Product Innovation
Business Model
Design/Innovation
Process Innovation
Organisation/ Service
Innovation
Business Model
Innovation
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
20. The Challenge: Handling Innovation
Complexity
Innovation: necessary but often
complex & risky
How high is innovation pressure?
Is my company’s ability to innovate
sufficient?
Which IM concepts & methods fit
best?
?
20
21. Ability to innovate: managing the innovation
cycle
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 21
Proactive management of continuous innovation circle
What?
When ?
For whom?
Wich extend?
Ideas & projects
Processes
Resources
Market implementation
22. Factors of Innovation Success
motivation Scenario analysis cooperation reference customers /
lead users risk-management portfolio analysis promoters innovation-
culture technology scouting innovation strategy foresight
stage gate process open communication life cycle management
intrapreneurship portfolio analysis idea management incentive
system knowledge management core competence management market orientation
resource planning innovation financing & controlling
22S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
26. Corporate Innovation Strategy
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 26
Pic: http://blog.bluesummit.net/strategy/mission-vs-vision/2007/
Vision (to identify)
Goals (to achieve)
Strategies (to guide)
What?
When ?
Which extend?
… to innovate
For innovation strategy the core questions are:
Products, Services, Business Model, Processes, Organisation, Markets
Innovation leader, fast follower, late adopter
Radical, semi radical, incremental, Imitation
27. Corporate Innovation Strategy
Examples: fast followers faster than inno-leaders
– AltaVista -> Google
– Napster -> iTunes
– Netscape -> Internet Explorer
– Apple Newton -> Palm Pilot -> Blackberry –> iPhone
– IBM PC -> Compaq -> Dell
– Double Click -> Google Ad Sense
– Ofoto -> Flickr
– Nintendo –> Xbox
– Friendster –> Facebook
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 27
28. S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
• Corporate Culture
• Core Competences
• SWOT
• Market Powers
Current Situation
• Technological
Developments
• Market / Megatrends
• Scenario Analysis
Trend Recognition
& Forecasting • Vision / Mission
• Strategic Goals
• Strategy Options
• Selection & Wording
Strategy
Development
• Operative Goals
• Criteria / Indicators
• Scorecards
Implementation-
preperations
Starting Point : Strategy (change) needed?! (routine assessment, new challenges etc.)
!!! Fit of corporate and innovation strategy
28
Strategy development process
29. Internal
Strength Weaknesses
E
x
t
e
r
n
a
l
Chances
++ Strategies:
Taking chances that fit the
strenghts
- + Strategies:
Eliminate weaknesses to
take on new chances
Threads
+ - Strategies:
Use strengths to
fight/anticipate thread
- - Strategies:
Weakening the scope of
Weaknesses & AVIOD
thread / weakness
combinations
SWOT – related strategy Options
29S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
Corporate Innovation Strategy
30. S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 30
Potential
Market Entries
Suppliers
Potential
Substitutes
Customers
Negotiation
Power
Competition-
Rivalry
Porters Market
Powers
Negotiation
Power
Corporate Innovation Strategy
Thees 5 powers are the strongest
external drivers & sources of
innovations, ideas etc.
Others will be discussed in the
„opportunity“ Block of Day 2
31. Innovation Culture
company culture portfolio
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 31
External orientation
Internal orientation
Hirarchical Cooperative
Military
Web Start up
32. Promoters
Innovation Champion (all in one?)
Power promoter
Know-How-Promoter (capabilities, skills)
Process Promotor
Relationship Promotor (force field)
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 32
38. Stage Gate – the product innovation process model
by Cooper
Quality enhancement of developing process
sharp focus and clear prioritizing
Parallel processes with higher pace
Cross-functional team
Including market orientation & assessment explicitly
Detailed information gains und forecasts in pre-
development-stage
Create products with competitive advantage
Critic: does not include the service design
component combined with product innovation
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 38
39. Stage Gate – the innovation process model by Cooper
39S. Kutter, Successful Innovation Management, SRTD-Project, Amman,
40. Stage Gate – the innovation process
Gate
1
Idea
Screen
Stage
1
Scoping
Gate
2
Second
Screen
Stage
2
Build
Business Case
Gate
3
Go to
Development
Stage
3
Development
Gate
4
Go to
Testing
Stage
4
Testing &
Validation
Gate
5
Go to
Launch
Stage
5
LaunchDiscovery
Stage
Post-Launch
Review
$!?
Idea management
Project management
Market preparation & implementation
40S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
erspecti
Concept
Drafts
Construction
Detailing
41. Stage Gate Process Implementation
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 41
42. Source: Perspective: The Stage-Gate Idea-to-Launch Process – Update, What’s New and
NexGen Systems Dr. Robert G. Cooper
44. Three components of creativity
Expertise
Motivation
Creative
Thinking
Skills
Creativity
Teresa Amabile HBR Sept ‘98
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
45. Creativity techniques
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 45
Problem: unflexible thinking due to (sussess-)Patterns
Not enjoying change/ uncertainty
Weakness to discover and accept opportunities off the
common and well known
46. De Bono lateral & parallel thinking
Edward de Bono (19 May 1933, Malta )
Physician, author, inventor and consultant
The originator of the term lateral thinking
Best selling book: “Six Thinking Hats”
Source: http://en.wikipedia.org/wiki/Edward_de_Bono
46S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
47. Human thinking is based on:
Facts and Information
Emotions and Feelings
Cautious and Careful
Positive
Creative Thinking
Control of Thinking
White Hat
Red Hat
Black Hat
Yellow Hat
Green Hat
Blue Hat
47S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
48. Systematic Innovation (TRIZ)
TRIZ: The theory of inventor's problem solving
TRIZ provides tools and methods for:
1. Problem Formulation
2. System Analysis
3. Patterns of System Evolution
4. Much more
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 48
Based on the analysis of 400,000 inventive solutions
(more than 1.5 mln patents studied by today)
Source: http://en.wikipedia.org/wiki/TRIZ
Genrich Altshuller
(1926-1998)
51. Wow can we make sure that problems play out & that
potentials stay wasted?
Guided Brainstorming
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 51
53. External Sources of Ideas
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 53
5
5
5
5
5
5
10
1010
10
10
10
1015
15 15
15
15 15 15
20
20
20
20 20
20
20
5
20
suppliers
competitors
customers
consultants
literature
laws
research
Trade fair shows
All SMEs
SMEs up to 2,5 Mio. €
sales
External sources of impulses for
innovations (mentions in %)
KfW-Study in SMEs
80
100
54. Idea Management
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 54
Involvement in
Idea management
Proper reasons if
rejected
Sufficient Bonus
Aktive support
Realising many
suggestions/ ideas
Feedback when
realised
36%
17%
5%
15%
2%
19%
Fast realisasion
source: Uni Graz 2001
Motivation: Influence-Factors on employee involvement
55. From suggestion systems (QM) to Idea
Management
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 55
Classic Improovement:
•collect many ideas, pic
few
•centralized assessment
•Bonus reward
•adminitration-like
handling
Ideen-Management
•Decisions whether to implement
are taken from employee and
direct supervisor
•small improovements/ changes
are welcome
•High share of ideas realized
•immaterial rewards (appreciation)
Source: Kammer 2004
56. Integration des Ideenmanagements
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 56
Interfaces and Interactions
Strategies / Goal-system
Criteria
CRM
Idea management
QM
Knowledge
management
Innovation cultur,
Reward Systems
HRM
(multi) Project
management
57. Goals in Portfolio Management
Value Maximization
Cost control
Strategic fit of projects/ products
Balancing projects/ products
– Sequence & timing
– Quantity & pipeline alternatives
– Resource demands
Source: New Problems, New Solutions: Making Portfolio Management
More Effective
By: Dr. Robert G. Cooper Dr. Scott J. Edgett
62. Risk Management
Definition: Risk
– unclear
– The probable frequency and probable magnitude of future
loss
– in risk management: probability of hazardous impacts
gain <-> loss
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 62
63. Risk Management
63S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
ISO 31000 from http://www.enhancesolutions.com.au/web/articles.php?category_id=1
64. Risk Management
Assessment dimensions:
– How severe?
• Damage/ magnitude caused/ expected
– How far?
• Scope
• Range
• Areas
– How often?
• Repeatable / self triggering
• Several independent occurence
– How probable?
Risk Formula:
Damage x Scope x Times x Probability
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 64
70. Business Model Innovation
Understanding Business Models
„ […] we define a business model as a
representation of a firm’s underlying core logic
and strategic choices for creating and capturing
value within a value network.“ (Shafer, S. M./
Smith, H. J./ Linder, J. C. (2005))
… sharp definition - but does it really help?
70S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
71. Business Model Innovation
Understanding Business Models
Business Model ≠ Business Process Model
Business Model ≠ Enterprise Model
Business Model ≠ Business Plan
No business plan survives the first customer contact!?
71S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
73. Business Model Canvas by Dr. Osterwalder
73S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
74. Business Model Canvas by Dr. Osterwalder
Core Questions:
•Who is the customer?
•What does the customer value?
•What is the underlying economic logic?
•How do we make money in this business?
http://www.youtube.com/watch?v=dtfNsuP2AQQ
74S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
75. Business Model Canvas by Dr. Osterwalder
75S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
76. BM Design Dr. Osterwalder
Validate, Prototype & Test it!
76S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
77. BM Design Dr. Osterwalder
Linking Customer Development to stage-gate
77S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
78. Mass Prototyping Campaign
Sales Automation
Online Campaigns
PR SEO
Social Media
Adverts Videos
Pitches
Newsletter
specified
Communication Mix
Attraction Offer
„Heating up steps“
Sale
78S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
79. S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 79
Communi-
cation
Problem
Stress
Demand
Pricing &
Revenues
€
Cost Structure
€
Potential
Competences / Resources
Inhouse
Partner
Sales-
Channels &
Pipelines
Solution
Relief
Job
Target GroupsOffers
x
y
z x
y
z
80. SME
Multi Level Audit Approach
80S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010
•Pre-research
•Key Values
82. Results & Perspective
S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 82
Outside Perception
Interview Results
Key Values Inno-Profile
Inno-BalanceMarket Trends
Feedback:
-Customers
-Partners
-Staff
Analysis
Evaluation
Alternatives
of action
Roadmap Coaching
Implementation
Rapid increasement of competitiveness
Sustainable safeguarding of future returns & market position
83. S. Kutter, Successful Innovation Management, SRTD-Project, Amman, 2010 83
skutter@consurge.net
+49 (0)30 692068930
vs.
Successful Innovation Management
The most powerful concepts and solutions of Innovation Management
and Product Development to dramatically improve competitiveness