21. Use 4 Innovation Types2. Align with your Strategy3. Capitalize on Trends4. Where to get Innovative Idea’s ?5. Concept is not Development6. Qualify and Quantify7. Trust Yourselves8. Allow for different Paces9. Communicate and Sell10. Just do it !Highlights
3- practitioner’s shared experience- no non-sense> pragmatic recommendations- based on :20+ years of experience(Coke, ABI, FMCG clients)50+ new product launches20+ developed technologies50+ new concept developments- holistic approach- from ideation to product launchIntroduction
4- Four typesTechnology widely available in thetarget industry (processimprovements and materialreductions).Non-existing technology in thetarget industry : medium level ofcomplexity, risks and rewards.Non-existing technology or inembryonic stage, high levelof complexity, risks and rewards.Existing technology in thetarget industry : low levelsof complexity.H0EfficiencyImprovementsH1Evolutionaryor IncrementalH2RevolutionaryH3 : Pre-RevolutionaryConsumerHint n°1 : use 4 Innovation Types !
5Key points :- local versus global innovations- leadership versus consulting- documenting knowledge(specs, procedures, results)Background- roles and responsibilities- management of expectations- observations- most R&D functions“technical services experts”- technology reapplications- innovation R&D stepsHint n°2 : Align with your Strategy !
7Hint n°3 : Capitalize on Trends !The Siemens-Method to Plan the Futurebased on the combination ofExtrapolation and RetropolationINFLUENCINGFACTORSOperatingUnits“Extrapolating”over roadmapsProductsTechnologiesCustomer RequirementsSTRATEGICVISIONINGtoday short term medium term long term“Retropolating”from Scenario’snew Marketsnew Customer Requirementsnew TechnologiesNew Business OpportunitiesTime horizons are heavily dependent on strategic opportunity areaServicesMaterialsLightingMedicalTransportationPowerInformation &CommunicationsAutomation& ControlSCENARIO’s FORSIEMENSSTRATEGIC OPPORTUNITY AREA’SANDCROSS-SECTIONTECHNOLOGIESIndividualCompanyPoliticsEconomyEnvironmentTechnologyCustomersCompetitionSource : Siemens
8Recommendations :- scout your marketplace- talk to consumers- visit tradeshows in :- your industry- adjacent industries- read, read and read more- invest in scoutingHint n°4 : Where to get Innovative Ideas ?
9Concept Development“Fuzzy Front End”Hint n°5 : Concept is not Development !IdeagenerationandenrichmentConceptdefinitionConceptselectionOpportunityidentificationOpportunityanalysisEngine1Source : PDMA Toolbook for New Product DevelopmentChapter 1 : Fuzzy Front End : Effective Methods, Tools andTechniques (P. Koen, G. Ajamian, S. Boyce, A. Clamen,E. Fisher, S. Fountoulakis, A. Johnson, P. Puri, R. Seibert)32Start 1Start 2to NPD
10PHASE I :Idea &ConceptPHASE II :Project &DevelopmentPHASE III :Launch & VolumeManufacturingRankingH0EfficiencyImprovementsH1EvolutionaryPre-RevolutionaryH2RevolutionaryH3ConsumerTechnicalFeasibilityFinancialOpportunityGlobalBrandInnovativeScoreStrategicEndorsementScoreTime toMarketCompetitiveInsulationProcessMapping
11- use scorecardsto prioritize your initiatives- map your projects and resourcesagainst time horizons- measure the value of yourinnovation portfolio regularlyusing risk-weighted project valuation- maximize your portfolio- ultimate Innovation KPI :Σ (NPV)last 5 years-------------------------Σ (FTE)innovation and R&DHint n°6 : Qualify and Quantify !
12I. TechnicalFeasibilityIV. FinancialOpportunityV. GlobalBrandVI. InnovativeScoreVII. StrategicEndorsementTOTALSCOREII. Time toMarket963Sure ThingLikelyLow3> 3 years61 < … < 3 years9< 1 yearIII.CompetitiveInsulation963First to CompanyFirst to IndustryIP Protected/Patented9632103NoYes369Re-applicationNew to CompanyNew to Industry30« must do »other>1 M Euro1..3 M Euro3..5 M Euro5 .. 15 M Euro>15 M EuroScorecard
13- feed your left and right brain- document> get the learnings> go to the next level- invest in yourself- keep track of your time- communicateHint n°7 : Trust Yourselves !
Hint n°8 : Allow for different Paces14- measure your time as an accountantExamples- time usage ratio’s in R&D departments- 70% project work- 30% organization excellence- 2/3 projects with direct impact- 1/3 longer term projects- use time-sheets
15Communication and Innovation- you are in competition forresources (M&A, …)- give your portfolio a 6th dimension- feed your intuition- commercialize your innovation function- generates idea’s > identify gaps- ‘operationalizes’ innovationHint n° 9 : Communicate and Sell !
17- take one risk per day- experiment, experiment, experiment- put yourself into difficult situations- put things in writing,take a distance and reflect- make assumptions, share, validate, proceed- athletic behavior :norm/storm/perform/transform- build credibility using businesscases and success stories- welcome constraints, drivers for innovationYou take big risks by not taking one !Hint n° 10 : Just do it !
18Contact :Jean F. Schrursjohn@capedecision.comM +32 498 53 04 58Key Points for Success