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Innovationsmanagement kaunas kurzfassung 11101 englisch

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  • 1. Management and Controlling of Innovation 1
  • 2. Herwig R. FriedagBorn in1950, Dipl. Volkswirt, Dr. rer.pol.Independent consultant focusing on: Implementation of Balanced Scorecard in companies Workshops on Balanced ScorecardInternationaler Controller Verein eV head of the PR committee at ICVVisiting lecturer at Humboldt University in Berlin and Danube University Krems (A) Dr. Herwig R. Friedag Friedag Consult Beskidenstr. 33, D 14129 Berlin Fon +49 30 80 40 40 00Hobbies: discovering the New, travels, Fax +49 30 80 40 40 01 bicycle tours, enjoying the nature, consult @ friedag.com www.friedag.com volleyball, sailing © Herwig Friedag 2011
  • 3. AgendaManagement and Controlling of Innovation 1 What is Innovation 2 Company Structure as a Basis for Innovations 3 How do we Create Innovations 4 Innovation Controlling © Herwig Friedag 2011 3
  • 4. 1. What is InnovationInnovationInnovation is a technial or organizational novelty: new products, new markets, new procedures, new approaches, new processes , new sales channels, new promotions and and much more.source: http://de.wikipedia.org/wiki/Innovation © Herwig Friedag 2011 4
  • 5. 1. What is InnovationInvention – Innovation – RenewalWe distinguish between: Innovation: Renewal: something new exchange of products/services that proves its worth on the market Invention: generation of an ideasource: http://de.wikipedia.org/wiki/Innovation bzw. http://de.wikipedia.org/wiki/Erneuerung © Herwig Friedag 2011 6
  • 6. 1. What is InnovationInvention Invention is the basis of innovation But, it is not enough to just generate an idea: Sale or use distinguish innovation from invention.  da Vinci’s helicopter  Transrapid
  • 7. 1. What is InnovationInvention Invention is the basis of innovation But, further developments of existing solutions as well as for previously unknown solutions are also innovations  Sea-Container improvement of existing and creation of new combinations of production factors  Nespresso
  • 8. 1. What is InnovationInnovation An innovation deals normally with something „new”, a previously unknown solution.  Postal service: Packstation (parcel-station) This novelty has to be noticed and become conscious.  i-Phone
  • 9. 1. What is InnovationInnovation This combination has to prove its worth in the market or in-house (company).  bofrost* frozen food delivery Opening up new markets and gaining access to the markets  Walkman
  • 10. 1. What is InnovationInnovationsInnovation leads to a short period of monopoly and therefore to financial benefits (pioneer advantage)
  • 11. 1. What is InnovationRenewal Renewal It is about the exchange or replacement of products/services. For example, a new car model that has been launched into the market.  Platform-strategy of Volkswagen scheduled further development of existing solutions  Minicontainer
  • 12. 1. What is InnovationRenewals Renewal strengthens the existing structures and processes. Renewal needs open spaces for targeted improvements.
  • 13. 1. What is InnovationImpact of Renewal / Innovation 11 from: Kim / Mauborgne: der blaue Ozean, Hanser, p. 7
  • 14. 1. What is InnovationWhy Innovation„Thanks to innovations we are able to significantly increase our profitability“ Source: Gleich et al.: Innovations-Controlling, 2011, p. 32 © Herwig Friedag 2011 15
  • 15. 1. What is InnovationWhy Innovation ? actively meet technical and economical changes Innovation is the central resource in the global marketsource: Innovationsförderliche Organisationskultur,Eine konzeptionelle und empirische Untersuchung radikaler Innovationsprojektevorgelegt von Diplom-Psychologin Jeanette Liebeherr(http://opus.kobv.de/tuberlin/volltexte/2009/2286/pdf/liebeherr_jeanette.pdf)Result: crucial significance of radical innovation esp. the creative potential of colleagues is to be promoted and employed: we need a innovative corporate cultur! © Herwig Friedag 2011 16
  • 16. AgendaManagement and Controlling of Innovation 1 What is Innovation 2 Corporate Culture as a Basis for Innovations 3 How do we Create Innovations 4 Innovation Controlling © Herwig Friedag 2011 17
  • 17. 2. Corporate Culture as a Basis for InnovationWhat is Corporate Culture?Corporate culture is a term from organizational theory and describesthe creation, development, and influence of cultural aspects within anorganization.source: Wikipedia (http://de.wikipedia.org/wiki/Organisationskultur)The corporate culture is closely related to the in-house structures andcentrally influences the innovation readiness and innovation capability as well as enthusiasm for taking risk and experimentingamongindividuals, organizational units and as a result in the entire company.source: Schein, Edgar: Unternehmenskultur, Frankfurt/Main, New York, 1995 © Herwig Friedag 2011 18
  • 18. 2. Corporate Culture as a Basis for InnovationGeneral Conditions for Creativity and InnovationsThe most important factor is apositive view of people:„We have in principle a positive, open-minded attitude towards people.“ We have an understanding for individuality of our colleagues. We accept differences among people. We are ready to solve problems in an active and moderate way. We provide appropriate requirements and support. We rely on our colleagues’ judgements. We trust in efficiency and commitment.We respect our colleagues. © Herwig Friedag 2011 19
  • 19. 2. Corporate Culture as a Basis for InnovationInnovation and Positive View of PeopleConditions to motivate people are to be created: more self-determination wider areas of responsibility more flexible organizational structures, group work and projects etc. self-controlling instead of external control creativity will be promoted by good leadership © Herwig Friedag 2011 20
  • 20. 2. Corporate Culture as a Basis for InnovationPromoting Innovation through “Good Leadership“ together prepared / supported company vision Company-values we are living we-thinking (team spirit) emotional intelligence (empathy, social competence) © Herwig Friedag 2011 21
  • 21. 2. Corporate Culture as a Basis for InnovationGood LeadershipThe behaviour of a executive manager signalswhich values, attitudes and patterns of behaviourare considered to be appropriate. Executive managers set essential framework conditions for their staff members. Executive managers are central ”culture carriers” and culture creators. An innovation-promoting corporate culture comes into being through a cooperative and bottom up management style. © Herwig Friedag 2011 22
  • 22. 2. Corporate Culture as a Basis for InnovationFurther Innovation-promoting Aspects composition of staff/teams competence development within company appreciation participation and involvement positive approach to mistakes freedom innovation as a basis for your business model © Herwig Friedag 2011 23
  • 23. AgendaManagement and Controlling of Innovation 1 What is Innovation 2 Corporate Culture as a Basis for Innovation 3 How do we Create Innovations 4 Innovation Controlling © Herwig Friedag 2011 24
  • 24. 3. How do we Create InnovationsInnovation-promoting Corporate Culture (1)Ideas for implementing „good“ management: aims and visions should be there, still better: should be together developed and communicated  vision as a picture of our future to inspire ourselves and our colleagues:  visions bring clarity and direction into our actions and thinking  we know in which direction our company is developing  we know what our aspirations are, what our actions and wishes aim at  we don´t need specific rules building correspondence between responsibility and competence © Herwig Friedag 2011 25
  • 25. 3. How do we Create InnovationsInnovation-promoting Corporate Culture (2)Ideas for implementing „good“ management : controlling instead of control empower people, delegate responsibility and control to the staff bringing together many involed colleagues ”visiting” the workplaces practicing open-discussion culture across several hierarchy levels creating willingness to eliminate unnecessary ACTIONS detecting and solving chronic conflicts setting an example © Herwig Friedag 2011 26
  • 26. 3. How do we Create InnovationsInnovation-promoting Corporate Culture (3)Ideas for implementing „good“ management : education of management / staff job-rotation delegating responsibility ideas exchange (methods of evaluating ideas) reorganize company into teams--> reduction of „de-part-ment"-borders © Herwig Friedag 2011 27
  • 27. 3. How do we Create InnovationsInnovation-promoting Corporate Culture (4)Ideas for courage appreciation: team bonuses (money, incentives)  the amount of incentives for team work has a positive effect, the amount of incentives for individual performance has however negative effect  innovation culture can be directly influenced by incentive systems  the material incentive system has a direct, positive effect on effectiveness and the immaterial incentive system on the efficiency of the project public ”praise” for the team responsibility delegation © Herwig Friedag 2011 28
  • 28. 3. How do we Create InnovationsPositive Approach to Mistakes as a Part ofCorporate Culture seeing mistakes as „an opportunity to learn”Positive approach to mistakes has a considerable and direct influence onthe innovation potential as well as on the company competitiveness.Productive mistake strategies are a central competitive factor, becausethe way you see and evaluate mistakes and how you deal with them indaily routine has a great influence on the productivity of the company Somebody who regularly reviews his/her mistakes, prevents their repetition. The most valuable lessons are these which initiate self- learning directly after a mistake has occured so that at least the same mistake won’t occur again. © Herwig Friedag 2011 29
  • 29. 3. How do we Create InnovationsPositive Approach to Mistakes as a Part ofCorporate Culture seeing mistakes as „an opportunity to learn”Positive approach to mistakes has a considerable and direct influence onthe innovation potential as well as on the company competitiveness.Productive mistake strategies are a central competitive factor, becausethe way you see and evaluate mistakes and how you deal with them indaily routine has a great influence on the productivity of the company Somebody who regularly reviews his/her mistakes, prevents their repetition. The most valuable lessons are these which initiate self- learning directly after a mistake has occured so that at least the same mistake won’t occur again.  no mistake is the biggest mistake © Herwig Friedag 2011 30
  • 30. AgendaManagement and Controlling of Innovation 1 What is Innovation 2 Corporate Culture as Basis for Innovation 3 How do we Create Innovations 4 Innovation Controlling © Herwig Friedag 2011 33
  • 31. 4. Innovation-controllingInnovation Phases to be Considered © Herwig Friedag 2011 34
  • 32. 4. Innovation-controllingControlling in All Innovation PhasesQuelle: ControllingWiki © Herwig Friedag 2011 35
  • 33. 4. Innovation-controllingControlling does not stop innovation1. Discuss goals with the management2. Try to find figures which are  creating transparency  relevant for the management  simple to count / for understanding3. Discuss the situation with the management4. Learn and improve the situation © Herwig Friedag 2011 36
  • 34. 4. Innovation-controllingControlling in All Innovation Phases1. Ideas generation  number of developed or implemented ideas etc.2. Operationalisation  price-expectations3. Research  targeted production costs4. Development  Innovation rate5. Market launch  Profit-share of new products © Herwig Friedag 2011 37
  • 35. Conclusion 45
  • 36. 4. Innovation-controlling Conclusion: Innovation Sustainable development Daily innovation Income by innovationFigures allow discussions Ideas for innovation Innovation Management Controlling needs Goals Motivation for ideas Learning with mistakes Leadership motivates Corporate culture © Herwig Friedag 2011 46
  • 37. The End? No:I hope the beginning of a consequent innovation management 47

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