CONFIDENTIAL
INNOVATIONDAY 2011 Slide 2
OUTSOURCE PROJECT OR INSOURCE EMPLOYEES?
HOW TO OPTIMIZE YOUR
PRODUCT DEVELOPMENT
...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 3
Innovation
The term innovation derives from the Latin word innovatus, which is
the...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 4
Innovation is essential
for European companies to survive
Innovation
• Key strateg...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 5
Overview
• Why don’t we realise this objective?
• How can external partners help?
...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 6
CONFIDENTIAL
Two major issues
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 7
Issue 1: Open job vacancies
• Will become more & more important:
• Bottleneck jobs...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 8
Issue1: Article “Knack ” last week
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 9
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 10
Issue 1: Future development in competence sourcing
Future evolutions 2011 - 2015:...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 11
Issue 1: Optimize the availability of the crucial
development competences
Will th...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 12
Generations XYZ Einstein
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 13
Generation Einstein
Communicate with 21st century generation
10 suggestions for n...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 14
Generation Einstein
Communicate with 21st century generation
10 suggestions for n...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 15
Issue 2: 7 Success Factors to Innovation
Based upon: Thunderbolt Thinking, Inc. h...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 16
Issue 2: Innovation's Nine Critical Success Factors
by Joseph Sinfield, Elizabeth...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 17
Issue 2: Take into account the soft side of
innovation management:
• Organisation...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 18
CONFIDENTIAL
Organisation models
How can external parties help to overcome these ...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 19
Hire temporary R&D employees
1st model : Reenforcement of your R&D Team
Should be...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 20
Hire temporary R&D employees
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 21
Hire temporary R&D employees / General practice
When?
• Project workload high & d...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 22
What does customer look for?
• Very specific skills
• Focus on technical capabili...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 23
Hire temporary R&D employees
We are looking for manpower
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 24
Hire temporary R&D employees / general practice
Remarks – attention points
• Peop...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 25
CONFIDENTIAL
Some reflections on hiring R&D staff
What about our key-issues?
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 26
Hire temporary R&D employees / What about our
key-issues?
Structural shortness on...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 27
R&D subcontracting
2nd model : outsource R&D in projects / workpackages
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 28
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 29
Does your company outsource R&D? General practice
Flemish companies reluctant to ...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 30
Outsource your R&D / general practice
• 60s and 70s: companies started to realise...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 31
Outsource your R&D / general practice
Quite some companies consider R&D entirely ...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 32
Competencies / general practice
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 33
CONFIDENTIAL
Some reflections on subcontracting R&D
What about our key-issues?
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 34
Outsource your R&D
The general practice is to limit
collaborations and partnershi...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 35
Outsource your R&D
Isn’t this the solution to manage the tactical aspects on inno...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 36
Outsource your R&D
Incremental innovation?
• development of existing product
• ex...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 37
Outsource your R&D
Is it just about capacity or are their strategical aspectsdriv...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 38
Outsource your R&D
Outsourcing R&D - Alternative approaches / models
• Strategic ...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 39
CONFIDENTIAL
Managed Innovation Services
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 41
Embedded
Systems
Applied physics Mech & Ind
Design
System
engineering
Test & mode...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 42
Outsourcing, hiring or recruiting?
• testimonial
• External specialised knowledge...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 43
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 44
CONFIDENTIAL
Final conclusions
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 45
Conclusions (1)
Succesfull Product Development requires the right competencies at...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 46
Conclusions (2)
• Often implemented as a short-term solutions, however the proble...
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 47
Questions?
CONFIDENTIAL
INNOVATIONDAY 2011 Slide 48
Hogenakkerhoekstraat 21
9150 Kruibeke (B)
tel +32 (0)3 250 19 00
fax +32 (0)3 254...
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Verhaert Innovation Day 2011 – Peter Roels (VERHAERT) - How to optimize your product development

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Speaker of Verhaert at the 8th edition of our Innovation Day on October 21st 2011.

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Verhaert Innovation Day 2011 – Peter Roels (VERHAERT) - How to optimize your product development

  1. 1. CONFIDENTIAL INNOVATIONDAY 2011 Slide 2 OUTSOURCE PROJECT OR INSOURCE EMPLOYEES? HOW TO OPTIMIZE YOUR PRODUCT DEVELOPMENT CONFIDENTI AL Peter Roels Recruitment Coordinator, account manager on site technical consulting Peter.roels@verhaert.com
  2. 2. CONFIDENTIAL INNOVATIONDAY 2011 Slide 3 Innovation The term innovation derives from the Latin word innovatus, which is the noun form of innovare "to renew or change," stemming from in—"into" + novus—"new".
  3. 3. CONFIDENTIAL INNOVATIONDAY 2011 Slide 4 Innovation is essential for European companies to survive Innovation • Key strategic pillar in any organization • New and improved product offerings for existing and future customers Innovation • Create new output • Create new value • Improve chances for success Europe intends to invest 3% of BNP in innovation. Today in Belgium it’s at 2%!! What are the key reasons that blocks us ?
  4. 4. CONFIDENTIAL INNOVATIONDAY 2011 Slide 5 Overview • Why don’t we realise this objective? • How can external partners help? • 2 models with common practices and some reflections • Way forward: managed innovation services, concept & case
  5. 5. CONFIDENTIAL INNOVATIONDAY 2011 Slide 6 CONFIDENTIAL Two major issues
  6. 6. CONFIDENTIAL INNOVATIONDAY 2011 Slide 7 Issue 1: Open job vacancies • Will become more & more important: • Bottleneck jobs • Competition between companies • Aging population - babyboomers major retirements
  7. 7. CONFIDENTIAL INNOVATIONDAY 2011 Slide 8 Issue1: Article “Knack ” last week
  8. 8. CONFIDENTIAL INNOVATIONDAY 2011 Slide 9
  9. 9. CONFIDENTIAL INNOVATIONDAY 2011 Slide 10 Issue 1: Future development in competence sourcing Future evolutions 2011 - 2015: • Engineers become more scarce • Stress on recruiting market • Future employees will commit less to a company • More engineers will become freelancers • They will provide their competencies to companies for a project and limited time • Rapidly increasing competition from BRIC countries
  10. 10. CONFIDENTIAL INNOVATIONDAY 2011 Slide 11 Issue 1: Optimize the availability of the crucial development competences Will there be sufficient R&D / engineering capacity? We know the answer…… So, how to survive in European R&D environment? • Will those engineers prefer to work for our company or will they go to other industries? • Do we have enough critical mass to have all the potential disciplines and specialisms in-house? • Do we provide enough challenges to keep those people motivated ? • Do we provide the right environment and context te keep their knowledge state of the art. Do you have some doubts?
  11. 11. CONFIDENTIAL INNOVATIONDAY 2011 Slide 12 Generations XYZ Einstein
  12. 12. CONFIDENTIAL INNOVATIONDAY 2011 Slide 13 Generation Einstein Communicate with 21st century generation 10 suggestions for new management 1. Let them find solutions for questions that interest them and that they know enough about. Give them responsabilities in line with their talents 2. Stimulate informal communication within the organisation. It reduces hierarchy and increases creativity. Not equality but equivalency. 3. Give space for entrepreneurship where employees can use and develop their competencies and capacities. Make sure that they can contribute to improvements with their own ideas. 4. Organise small scaled worksettings. It stimulates entrepreneurship, bureaucracy is reduced and links with intimicy and security what is important for the new generation… 5. Introduce and facilitate the possibility to work independent from time nore place . It gives them more flexibility and responsability
  13. 13. CONFIDENTIAL INNOVATIONDAY 2011 Slide 14 Generation Einstein Communicate with 21st century generation 10 suggestions for new management 6. Organise a stimulating prestation culture. The new generation does not mind to show what they have realised, they are ambitious. 7. Make sure the work matters, that it is meaningful 8. Create an environment where employees sense co-ownership on the successes of the company and that they have the possibility to develop themselves at full length. 9. Work in flexible mixed teams for important issues. The next generation is network- and group oriented. 10. Check it their personal ambitions are in lite with those of the company. It is their responsability to develop their own career path themselves. But it must be clear what they can contribute to the organisation’s future..
  14. 14. CONFIDENTIAL INNOVATIONDAY 2011 Slide 15 Issue 2: 7 Success Factors to Innovation Based upon: Thunderbolt Thinking, Inc. http://www.thunderboltthinking.com 1. Culture must embrace innovation & risk taking – everywhere! 2. Innovation must be aligned with mission & goals. 3. Who is the beneficiary of this innovation? Always tie into resident benefits. 4. Accept risk and a climate where mistakes are o.k. 5. Emphasize exploratory thinking, idea generation, and experimentation. 6. Solid interpersonal relationships & teamwork – support! 7. Cross-functional collaboration & communication – use all of your varied resources!
  15. 15. CONFIDENTIAL INNOVATIONDAY 2011 Slide 16 Issue 2: Innovation's Nine Critical Success Factors by Joseph Sinfield, Elizabeth Altman, Scott Anthony, et al. 1. A compelling case for innovation. 2. An inspiring, shared vision of the future. 3. A fully aligned strategic innovation agenda.. 4. Visible senior management involvement. 5. A decision-making model that fosters teamwork in support of passionate champions. Breakthroughs 6. A creatively resourced, multi-functional dedicated team. 7. Open-minded exploration of the marketplace drivers of innovation. 8. Willingness to take risk and see value in absurdity. 9. A well-defined yet flexible execution process.
  16. 16. CONFIDENTIAL INNOVATIONDAY 2011 Slide 17 Issue 2: Take into account the soft side of innovation management: • Organisation • Empowerment • Culture • Open communication • Diversity • Multidisciplinarity • Prepared to take risks Is your organisation the ideal environment to innovate succesfully? Do you have some doubts?
  17. 17. CONFIDENTIAL INNOVATIONDAY 2011 Slide 18 CONFIDENTIAL Organisation models How can external parties help to overcome these issues?
  18. 18. CONFIDENTIAL INNOVATIONDAY 2011 Slide 19 Hire temporary R&D employees 1st model : Reenforcement of your R&D Team Should be a complementary asset: Capacity, competence, culture, ….
  19. 19. CONFIDENTIAL INNOVATIONDAY 2011 Slide 20 Hire temporary R&D employees
  20. 20. CONFIDENTIAL INNOVATIONDAY 2011 Slide 21 Hire temporary R&D employees / General practice When? • Project workload high & deadlines (too) near • Resources: extra (wo)man power • A limited time • Fast solution for staffing problem • Flexible: easy to get rid of • Generally accepted within companies
  21. 21. CONFIDENTIAL INNOVATIONDAY 2011 Slide 22 What does customer look for? • Very specific skills • Focus on technical capabilities (e.g. proE, C++, ...) • In support of the customer’s team - well mastered competencies • On higher lever: project management skills • Been there done that candidates • Little training – quickly up and running Hire temporary R&D employees / General practice
  22. 22. CONFIDENTIAL INNOVATIONDAY 2011 Slide 23 Hire temporary R&D employees We are looking for manpower
  23. 23. CONFIDENTIAL INNOVATIONDAY 2011 Slide 24 Hire temporary R&D employees / general practice Remarks – attention points • People to be managed by hiring company’s managers • Difficult to acquire and consolidate their experiences and knowhow and to embed this within the company • Fast selection process • Quality sometimes does not match the requirements • Focused on what hired employee can, less on persons capabilities and competencies • Monthly basis’ notice • Flexibillity with the resolution of 1 FTE….
  24. 24. CONFIDENTIAL INNOVATIONDAY 2011 Slide 25 CONFIDENTIAL Some reflections on hiring R&D staff What about our key-issues?
  25. 25. CONFIDENTIAL INNOVATIONDAY 2011 Slide 26 Hire temporary R&D employees / What about our key-issues? Structural shortness on engineers Why do we continue to react on short term needs when we tal about a long term and structural problem? Soft issues as key succes factors: Why do we keep focussing on technical capabilities we know other factors matter? Do we realy have the capabilities and capacitity to manage our people? Internal organisiation Flexible shell Competences Technical know-how Capabilities Attitudes
  26. 26. CONFIDENTIAL INNOVATIONDAY 2011 Slide 27 R&D subcontracting 2nd model : outsource R&D in projects / workpackages
  27. 27. CONFIDENTIAL INNOVATIONDAY 2011 Slide 28
  28. 28. CONFIDENTIAL INNOVATIONDAY 2011 Slide 29 Does your company outsource R&D? General practice Flemish companies reluctant to outsource R&D 13 56 63 66 21 41 30 38 0 10 20 30 40 50 60 70 R&D ICT HRM Finance & Admin Flanders France Uitbesteding in Vlaanderen in kaart gebracht - K.U.Leuven. HIVA/CESO, Vlerick Ugent - 2009 %
  29. 29. CONFIDENTIAL INNOVATIONDAY 2011 Slide 30 Outsource your R&D / general practice • 60s and 70s: companies started to realise the benefits of outsourcing activities • Driven by cost of maintaining leadership in all aspects of a vertically integrated business • Started with non-core, support activities: HR, IT, facility management, … • Moved into mainstream: customer service, distribution, … • Now many major companies outsource manufacturing and product provision … but R&D - surely not R&D • For technology led companies, R&D has generally represented the core competency to hold on to
  30. 30. CONFIDENTIAL INNOVATIONDAY 2011 Slide 31 Outsource your R&D / general practice Quite some companies consider R&D entirely as their core competence Issues: • Not invented here • Loss of control • Drain of in-house expertise • Impact on people and organisation • Trust / guarantees • Outsourcing = expensive Risks: • Partial loose capability to innovate • Harder to keep up with technical evolutions • More difficult to keep up with current market, actual and future developments
  31. 31. CONFIDENTIAL INNOVATIONDAY 2011 Slide 32 Competencies / general practice
  32. 32. CONFIDENTIAL INNOVATIONDAY 2011 Slide 33 CONFIDENTIAL Some reflections on subcontracting R&D What about our key-issues?
  33. 33. CONFIDENTIAL INNOVATIONDAY 2011 Slide 34 Outsource your R&D The general practice is to limit collaborations and partnerships in R&D to the operational level. However the key succes factors of innovation show clearly importance of the tactical and strategical levels. Strategic Tactical Operational Levels in Innovation & R&D management
  34. 34. CONFIDENTIAL INNOVATIONDAY 2011 Slide 35 Outsource your R&D Isn’t this the solution to manage the tactical aspects on innovation management • Reversed learning curve • Learn efficiently = innovate efficiently • Methodologies • Product development process • Multidisciplinary • Project management • Risk management • Managed Cost • Communication & information • Milestones and deliverables • Experienced in break-through innovation Are those tactical aspects handled in your organisation. Do you have some doubts?
  35. 35. CONFIDENTIAL INNOVATIONDAY 2011 Slide 36 Outsource your R&D Incremental innovation? • development of existing product • existing market Radical innovation? • New technologies • New product • New markets outsource internal
  36. 36. CONFIDENTIAL INNOVATIONDAY 2011 Slide 37 Outsource your R&D Is it just about capacity or are their strategical aspectsdriving the subcontrcating / outsourcing process? • Re-organisation • Refocus • New markets • New technologies • Access to new IP • Access to specialist expertise • Building expertise • Filling capability gaps
  37. 37. CONFIDENTIAL INNOVATIONDAY 2011 Slide 38 Outsource your R&D Outsourcing R&D - Alternative approaches / models • Strategic partnering • Joint ventures • Manufacturing led development • IP led • Contract innovation and development • Contract resourcing • Academic institutions
  38. 38. CONFIDENTIAL INNOVATIONDAY 2011 Slide 39 CONFIDENTIAL Managed Innovation Services
  39. 39. CONFIDENTIAL INNOVATIONDAY 2011 Slide 41 Embedded Systems Applied physics Mech & Ind Design System engineering Test & modelling NPD New products development NPI New products introduction FEI Front end of innovation Innovation and R&D management Strategic Value vs Risk management Tactical Multi disciplinarity ,Options, Added value Operational Experts , SW & infrastructure Consultancy Subcontrcating&Projects Hireing/ workpackages VERHAERT Managed Innovation Services
  40. 40. CONFIDENTIAL INNOVATIONDAY 2011 Slide 42 Outsourcing, hiring or recruiting? • testimonial • External specialised knowledge for execution of non-core activities • When proper employees do not have a possible career path • Retain sufficient flexibility and consolidation of fixed contracts in all circumstances • Project work
  41. 41. CONFIDENTIAL INNOVATIONDAY 2011 Slide 43
  42. 42. CONFIDENTIAL INNOVATIONDAY 2011 Slide 44 CONFIDENTIAL Final conclusions
  43. 43. CONFIDENTIAL INNOVATIONDAY 2011 Slide 45 Conclusions (1) Succesfull Product Development requires the right competencies at the right time Use “Labour” and “Work” as a” scarce and expensive” good when necessary Create an agile organisation by setting up a flexible shell: • Focussing on the core activities • Flexible employment • Outsourcing (external as well as inhouse) • Shared Services – Centers of Excellence
  44. 44. CONFIDENTIAL INNOVATIONDAY 2011 Slide 46 Conclusions (2) • Often implemented as a short-term solutions, however the problem becomes structural. • Therefore outsourcing should be managed from a more strategic –long term perspective. • Tactical aspects of R&D is often underestimated and should be covered. • Mix of different and coordinated collaboration models e.g. Managed Innovation Services should be explored.
  45. 45. CONFIDENTIAL INNOVATIONDAY 2011 Slide 47 Questions?
  46. 46. CONFIDENTIAL INNOVATIONDAY 2011 Slide 48 Hogenakkerhoekstraat 21 9150 Kruibeke (B) tel +32 (0)3 250 19 00 fax +32 (0)3 254 10 08 info@verhaert.com More at www.verhaert.com helps companies and governments to innovate. We design products and systems for organizations looking for new ways to provide value for their customers. We are a leading integrated product innovation center; creating technology platforms, developing new products and business in parallel, hence facilitating new- growth strategies for our clients.

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