Innovation: just a hype?

Innovation Nonsense, buzzword, or reality?

Etymology Innovation

Etymology Innovation ๏ ... is an old word

Etymology Innovation ๏ ... is an old word ๏ ... that exists in many languages

Etymology Innovation ๏ ... is an old word ๏ ... that exists in many languages ๏ ... and traces back to Latin

Etymology “ innovare ”

Etymology “ innovare ” ๏ ... to renew

Etymology “ innovare ” ๏ ... to renew ๏ ... to introduce something new

Modern times Nowadays the meaning primarily derives from our management thinking

What is innovation?

What is innovation? ๏ Innovation, to innovate or to be innovative

What is innovation? ๏ Innovation, to innovate or to be innovative ๏ When talking about innovation, one is usually referring to something that is new

What is innovation? ๏ Innovation, to innovate or to be innovative ๏ When talking about innovation, one is usually referring to something that is new ๏ The focus lies on a product

What is innovation? ๏ One can also focus on the process

What is innovation? ๏ One can also focus on the process ๏ to stand out and be able to keep standing out

How does it work?

How does it work? Innovation can be seen as a systematic way to transform creativity to something operational

Simply said:

to be one step ahead !

True or false? Innovation is only important for manufacturers, engineers and product managers ?

True or false? False

True or false? False ... this is a common misconception, though

Let´s take a quick glance back...

Let´s take a quick glance back... ๏ When talking about innovation, one is usually referring to something that is new ๏ The focus lies on a product

Let´s take a quick glance back... ๏ When talking about innovation, one is usually referring to something that is new ๏ The focus lies on a product ๏ One can also focus on the process ๏ to stand out and be able to keep standing out

Let´s take a quick glance back... and ufacturers man ir When talking about innovation, one is usually treferringato the ely h ve ๏ lik ineers mos eng focus here something that is new ๏ The focus lies on a product ๏ One can also focus on the process ๏ to stand out and be able to keep standing out

๏ But also manufacturers focus on their processes!

๏ But also manufacturers focus on their processes! ๏ Of course they do!

๏ But also manufacturers focus on their processes! ๏ Of course they do! ๏ They do look at their (production)processes, but the main argument most probably is to be more effective: to cut costs

๏ But also manufacturers focus on their processes! ๏ Of course they do! ๏ They do look at their (production)processes, but the main argument most probably is to be more effective: to cut costs ๏ And YES... they can also be innovative here!

๏ But also manufacturers focus on their processes! ๏ Of course they do! ๏ They do look at their (production)processes, but the main argument most probably is to be more effective: to cut costs ๏ And YES... they can also be innovative here! ๏ Still, a highly cost effective manufacturer with hardly any product innovations will have a hard time keeping customers in the long run.

๏ But also manufacturers focus on their processes! ๏ Of course they do! ๏ They do look at their (production)processes, but the main argument most probably is to be more effective: to cut costs ๏ And YES... they can also be innovative here! ๏ Still, a highly cost effective manufacturer with hardly any product innovations will have a hard time keeping customers in the long run. ๏ It is more about where the main focus should lie.

Let´s take a quick glance back... ๏ When talking about innovation, one is usually referring to something that is new ๏ The focus lies on a product ๏ One can also focus on the process ๏ to stand out and be able to keep standing out

Let´s take a quick glance back... ๏ When talking about innovation, one is usually referring to something that is new nd ompanies a ๏ The focus lies on a product trade c ir ly have the like iders most v service pro focus here ๏ One can also focus on the process ๏ to stand out and be able to keep standing out

๏ But also trade companies focus on their products!

๏ But also trade companies focus on their products! ๏ No doubt about it!

๏ But also trade companies focus on their products! ๏ No doubt about it! ๏ They do look at their product program, but the main argument will be to be more attractive to customers

๏ But also trade companies focus on their products! ๏ No doubt about it! ๏ They do look at their product program, but the main argument will be to be more attractive to customers ๏ Unless they take part in new product development there is no real innovation from their hand

๏ But also trade companies focus on their products! ๏ No doubt about it! ๏ They do look at their product program, but the main argument will be to be more attractive to customers ๏ Unless they take part in new product development there is no real innovation from their hand ๏ They buy innovative products/ solutions and sell them again

๏ But also trade companies focus on their products! ๏ No doubt about it! ๏ They do look at their product program, but the main argument will be to be more attractive to customers ๏ Unless they take part in new product development there is no real innovation from their hand ๏ They buy innovative products/ solutions and sell them again ➡ note: this is a process!

๏ But also trade companies focus on their products! ๏ No doubt about it! ๏ They do look at their product program, but the main argument will be to be more attractive to customers ๏ Unless they take part in new product development there is no real innovation from their hand ๏ They buy innovative products/ solutions and sell them again ➡ note: this is a process! ๏ Still, a trade company with a highly innovative product program, but with poor processes, will have a hard time keeping customers in the long run.

๏ But also trade companies focus on their products! ๏ No doubt about it! ๏ They do look at their product program, but the main argument will be to be more attractive to customers ๏ Unless they take part in new product development there is no real innovation from their hand ๏ They buy innovative products/ solutions and sell them again ➡ note: this is a process! ๏ Still, a trade company with a highly innovative product program, but with poor processes, will have a hard time keeping customers in the long run. ๏ It is more about where the main focus should lie.

Both go hand in hand and are equally important.

Both go hand in hand and are equally important. just be sure to have your focus right!

Innovation strategies and theories

Innovation strategies and theories There are many ways to innovate, but to avoid sidetracking only the two extremes will be illustrated:

Innovation strategies and theories There are many ways to innovate, but to avoid sidetracking only the two extremes will be illustrated: ๏ Big Bang theory • Revolution • Big impact, long timespan • Fits to “Western world” cultures • Dominant in USA, Northern- and Western Europe

Innovation strategies and theories There are many ways to innovate, but to avoid sidetracking only the two extremes will be illustrated: ๏ Big Bang theory • Revolution • Big impact, long timespan • Fits to “Western world” cultures • Dominant in USA, Northern- and Western Europe ๏ Continues improvement (Kaizen) • Evolution • Little improvements, all the time • Fits to Asian cultures • Popularized by Toyota

Fine, all this theory...

Fine, all this theory... ... but give me something I can use!

Conditions to be innovative ๏ Budget ๏ Creativity ๏ Flexibility ๏ Company culture

Conditions to be innovative ll aren´t a y ple, wh m s that si tive -?- ti va If i ies inno ๏ compan Budget ๏ Creativity ๏ Flexibility ๏ Company culture

Being innovative involves:

Uncertainty

Risk

Both are not management´s best friends...

But... ....how important is innovation, really?

it´s pure survival!

Importance of innovation

Importance of innovation ๏ Part of a company´s long-term strategy

Importance of innovation ๏ Part of a company´s long-term strategy ๏ A possible way to market leadership

Importance of innovation ๏ Part of a company´s long-term strategy ๏ A possible way to market leadership ๏ Part of a natural process: PLC (product life cycle)

What if...

What if... A company´s strategy is something like:

What if... A company´s strategy is something like: ๏ “... we want to be one of the two most important players in the market...”

What if... A company´s strategy is something like: ๏ “... we want to be one of the two most important players in the market...” ๏ “... we want to be in the top 10 of...”

What if... A company´s strategy is something like: ๏ “... we want to be one of the two most important players in the market...” ๏ “... we want to be in the top 10 of...” Is innovation in such a case of less importance?

No!

No! ๏ To BE number two

No! ๏ To BE number two ๏ one still has to beat number three, four, etc.

No! ๏ To BE number two ๏ one still has to beat number three, four, etc. ๏ If others develop at a faster pace than you...

No! ๏ To BE number two ๏ one still has to beat number three, four, etc. ๏ If others develop at a faster pace than you... ๏ You soon end up being number 12

24

31

78

Innovation is not the only key to a company´s development

Innovation is not the only key to a company´s development But...

Innovation is not the only key to a company´s development But... ๏ To be innovative is a behavior

Innovation is not the only key to a company´s development But... ๏ To be innovative is a behavior ๏ A state of mind

Innovation is not the only key to a company´s development But... ๏ To be innovative is a behavior ๏ A state of mind ... and therefore a relatively easy and low cost parameter to focus on

Requirements

Requirements ๏ A fertile atmosphere

Requirements ๏ A fertile atmosphere ๏ What is that?

Requirements ๏ A fertile atmosphere ๏ What is that? ๏ It can be many things, for people are different

Requirements ๏ A fertile atmosphere ๏ What is that? ๏ It can be many things, for people are different ๏ Common values express, it should be a place that

Requirements ๏ A fertile atmosphere ๏ What is that? ๏ It can be many things, for people are different ๏ Common values express, it should be a place that ๏ ... ensures you are not continuously interrupted

Requirements ๏ A fertile atmosphere ๏ What is that? ๏ It can be many things, for people are different ๏ Common values express, it should be a place that ๏ ... ensures you are not continuously interrupted ๏ ... has a positive effect on ones mood

Requirements ๏ A fertile atmosphere ๏ What is that? ๏ It can be many things, for people are different ๏ Common values express, it should be a place that ๏ ... ensures you are not continuously interrupted ๏ ... has a positive effect on ones mood ๏ ... and ones way of thinking

Requirements ๏ No prioritization of, or focus on, direct tangible results

Requirements ๏ Support from direct colleagues and supervisor is of major importance

Sum up: ๏ a fertile atmosphere ๏ No prioritization of, or focus on, direct tangible results ๏ Support from colleagues and supervisor

Is that it?

Is that it? ๏ YES !

Is that it? ๏ YES ! ๏ That is all there is to it to become innovative!

Is that it? ๏ YES ! ๏ That is all there is to it to become innovative! ๏ Most other things depend on the innovative solution one comes up with

You have all of this under control?

You have all of this under control? Then now it is time to consider the following important factors:

You have all of this under control? Then now it is time to consider the following important factors: ๏ Feasibility

You have all of this under control? Then now it is time to consider the following important factors: ๏ Feasibility ๏ Human capital

You have all of this under control? Then now it is time to consider the following important factors: ๏ Feasibility ๏ Human capital ๏ Workload

You have all of this under control? Then now it is time to consider the following important factors: ๏ Feasibility ๏ Human capital ๏ Workload ๏ Outsourcing?

You have all of this under control? Then now it is time to consider the following important factors: ๏ Feasibility ๏ Human capital ๏ Workload ๏ Outsourcing? ๏ Budget & ﬁnancing

You have all of this under control? Then now it is time to consider the following important factors: ๏ Feasibility ๏ Human capital ๏ Workload ๏ Outsourcing? ๏ Budget & ﬁnancing ๏ Impact

You have all of this under control? Then now it is time to consider the following important factors: ๏ Feasibility ๏ Human capital ๏ Workload ๏ Outsourcing? ๏ Budget & ﬁnancing ๏ Impact ๏ Consequences

You have all of this under control? Then now it is time to consider the following important factors: ๏ Feasibility ๏ Human capital ๏ Workload ๏ Outsourcing? ๏ Budget & ﬁnancing ๏ Impact ๏ Consequences ๏ Timing

You have all of this under control? Then now it is time to consider the following important factors: ๏ Feasibility ๏ Human capital ๏ Workload ๏ Outsourcing? ๏ Budget & ﬁnancing ๏ Impact ๏ Consequences ๏ Timing ๏ etc.

Remember: To be innovative is a state of mind

Therefore... Innovation is independent of budgets, structure and rules

or, like a wise man once said:

or, like a wise man once said: “Innovation is not the product of logical thought, although the result is tied to logical structure.” Albert Einstein

The crisis! (ﬁnancial crisis 2008/2009)

The crisis! (financial crisis 2008/2009) ๏ All that innovation chat sounds fine, but we are in the middle of a financial crisis...

The crisis! (financial crisis 2008/2009) ๏ All that innovation chat sounds fine, but we are in the middle of a financial crisis... ๏ There are more important things to concentrate on at the moment...

The crisis! (financial crisis 2008/2009) ๏ All that innovation chat sounds fine, but we are in the middle of a financial crisis... ๏ There are more important things to concentrate on at the moment... ๏ Besides, we are long behind budget...

Recognize these statements?

Recognize these statements? Especially in times of crisis it is important to be creative, think out of the box and ...

Recognize these statements? Especially in times of crisis it is important to be creative, think out of the box and ... ... be innovative

Why?

Why? “a future oriented strategy, based on a companies´ individual strengths and specific needs of it´s target group(s), contributes to the innovative succes through times of crises and recession.”

Right! What does that mean?

Right! What does that mean? What are the effects of a crisis on a company?

Right! What does that mean? What are the effects of a crisis on a company? ๏ Less orders and/ or contracts

Right! What does that mean? What are the effects of a crisis on a company? ๏ Less orders and/ or contracts ๏ Poor economic results

Right! What does that mean? What are the effects of a crisis on a company? ๏ Less orders and/ or contracts ๏ Poor economic results ๏ Still got your job?

Right! What does that mean? What are the effects of a crisis on a company? ๏ Less orders and/ or contracts ๏ Poor economic results ๏ Still got your job? ๏ Many companies are downsizing or went bankrupt

Right! What does that mean? What are the effects of a crisis on a company? ๏ Less orders and/ or contracts ๏ Should result in more time... ๏ Poor economic results ๏ Still got your job? ๏ Many companies are downsizing or went bankrupt

Right! What does that mean? What are the effects of a crisis on a company? ๏ Less orders and/ or contracts ๏ Should result in more time... ๏ Poor economic results ๏ Should result in more creativity... ๏ ... and out of the box thinking (to reach budget) ๏ Still got your job? ๏ Many companies are downsizing or went bankrupt

Right! What does that mean? What are the effects of a crisis on a company? ๏ Less orders and/ or contracts ๏ Should result in more time... ๏ Poor economic results ๏ Should result in more creativity... ๏ ... and out of the box thinking (to reach budget) ๏ Still got your job? ๏ Many companies are downsizing or went bankrupt ๏ Should result in more “space” on the market, since competitors lose customers and therewith market share

If your company did not go bankrupt by now, actually all conditions for growth are present

If your company did not go bankrupt by now, actually all conditions for growth are present If you dare to invest in innovation!

What was innovation again?

What was innovation again? To be one step ahead.

Dare you be one step ahead?

Thank you for your time and attention! Ralph Lambers ralphlambers @ hotmail.com www.xing.com/profile/Ralph_Lambers

Innovation: just a hype?

0 comments

Notes on slide 1

3 Favorites