2. Structure
The innovation process and the innovation management in companies
Critical success factors for innovation management
Time-to-market management
Price-to-market management
Customer integration
The integration of innovation management support measures in SME
promotion activities
Training in innovation management for SMEs, BDS and Universities
Innovation awards
2
4. Innovation is more than just a
new product
An innovation is ...
Product
Innovation
... an invention/idea of
e.g. BASF’s
Hexamoll • new products, processes,
production methods,
organizational forms
Process Innovation
e.g. MicroReaction or
Technology
• an elementary improvement
of a system
Service
Innovation
and its successful
e.g. Google and Facebook
commercialization in the market
4
5. Innovation – One Step forward
or a „Quantum Jump“?
Level of
Innovation Incremental
Innovation
Radical
(disruptive)
Innovation
Time
5
6. Innovation – One Step forward
or a „Quantum Jump“?
Radical Innovations Incremental Innovations
require a sharp breach with Further development and
conventional routines and traditional improvement of already established
knowledge products and production processes
Prerequisite are deregulated labour Acquisition of cumulative
markets and quick access to risk knowledge, prerequisite are long-
capital term working contracts and stable
career-structures
Typical for new technologies such as Typical for established industries,
Software, Biotechnology, new such as mechanical engineering,
services, etc… chemical industry, etc...
strong in USA strong in Germany, Sweden,
Switzerland
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7. The Innovation Process
Opportunity
Identification Idea
Management Concept
Development
FRONT END NEW PRODUCT COMERCIALIZATION
DEVELOPMENT
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8. Innovation Management
We can define innovation management as "the operative configuration of the
processes of innovation."
Decisions on the implementation of innovations show specific characteristics
which differ from routine tasks in the administration:
Complexity/ multi-step
Orientation towards future
Uncertainty and risk
Creativity/imposition
The task of the innovation management is "a process-oriented work" and not
an isolated work, being responsible for a unifying task (and integral), because
in the management of innovation processes different departments are
involved.
This "interdisciplinary" work is one of the key success factors for innovation.
8
10. Challanges in Innovation
Management
Increased innovation
effectiveness
High failure rates in innovation projects
Spending
on
Up to 90% in radical innovations (new for the world)
unsuccessful
projects
Up to 50% in incremental innovations
Management activity with the highest failure rate
Spending
on
Germany and Japan are leaders in innovation
successful
projects management (especially incremental innovation
management)
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11. Success Factors of
Innovation Management
Increased innovation
effectiveness
Customer
Integration
Spending
on
unsuccessful
projects
Creativity
Spending
on
successful
Time-To-Market Price-To-Market
projects
11
12. Promotion of Creativity
Creativity management is an
important activity in companies
Importance of innovation culture
„Imagination is more
important than
knowledge.“
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13. The Time Factor in the
Innovation Process
Product Life Cycle
Profit/Sales Introduction Growth Maturation Declining Stage
Stage Stage Stage
Profit Sales
Invention
Time
13
14. The Time Factor in the
Innovation Process
Product Generation “Work
Station”
Product Generation Industry’s life cycle
“Personal Computer”
Product Life Cycle
Product Generation
“Intermediate data
technology”
Life cycle of Individual products
Life cycle of Product Generation
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15. The Time Factor in the
Innovation Process
Decreasing duration of the product life cycle
Construction Automobile Machinery Electronics IT Chemicals
90s 9,3 7,3 7,1 6,3 5,3 5,5
70s 13,0 10,9 12,0 11,6 11,1 9,8
Increasing time for developing new products
Companies have every year less time to develop a new
product version
15
16. The Cost/Price Factor in the
Innovation Process
Exceeding costs is one of the most important factor for innovation project
failure
German Example:
Costs of the roof of the Olympic
Stadium in Munich:
(Mio. DM)
180
160
140
120
100
80
60
40
20
0
Planned
Cost
Real Costs
The plan was exceeded by 860 %
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17. Customer Integration in
Innovation Processes
Development of products/ services
fitting the customer’s needs
Risk minimization
Synergies between supplier and
customer leads to savings in time
Mouth-to-mouth communication
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19. Systematic Innovation
Management
Models for systematic
management of innovation in
companies
Methods and tools for
innovation management in
industry and service sector
Important topic in Europe in
order support competitiveness
Models Methods Tools of SMEs
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20. Systematic Mangement of
the Innovation Process
Front End New Product Comercialization
Development
Analysis of
Analysis of
requirements &
requirements & Prototype
Prototype
opportunities
opportunities development
development
- -Technology analysis
Technology analysis
- -Market analysis
Market analysis
Prototype
Prototype
Concept of
Concept of validation
validation
Market
the new
the new Project plan
Project plan
Up-scaling Launch
product
product Up-scaling
Idea management
Idea management
- -Idea development Marketing
Marketing
Idea development
- -Fostering creativity
Fostering creativity plan
plan
Decision Decision Decision
Stop/ Go ahead Stop / Go ahead Stop/ Go ahead
Idea evaluation Feasibility evaluation Market validation
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21. Systematic Mangement of
the Innovation Process
Front End New Product Comercialization
Tools:
Tools:
Development
•• Portfolio Analysis & Benchmarking
Portfolio Analysis & Benchmarking
•• Quality Function Deployment
Quality Function Deployment
Analysis of •• Service Blueprinting and FMEA
Analysis of Service Blueprinting and FMEA Tools:
Tools:
requirements & •• Product Clinic & Complain •• Task planning
Task planning
requirements & Product Clinic & Complain •• PERT chart Prototype
Prototype
PERT chart
opportunities management
opportunities management •• GANTT chart
GANTT chart development
development
- -Technology analysis
Technology analysis •• Responsibility matrix
Responsibility matrix
- -Market analysis
Market analysis •• Key person planning
Key person planning
•• Information matrix
Information matrix
Prototype
Prototype
Concept of
Concept of validation
validation
Market
the new
the new Project plan
Project plan
Up-scaling Launch
product
product Up-scaling
Idea management
Idea management Tools:
Tools:
- -Idea development •• Product Model
Product Model Marketing
Marketing
Idea development
- -Fostering creativity
Fostering creativity
(Kano, Catalogs etc.)
(Kano, Catalogs etc.) plan
plan
•• Process Model
Process Model
Tools: (Blueprinting)
(Blueprinting)
Tools:
•• Intiuituve Decision •• Resource Model
Resource Model Decision Decision
Intiuituve
techniques Stop/ Go ahead (Prototyping, Simulation)
(Prototyping, Simulation) Stop / Go ahead Stop/ Go ahead
techniques
•• Analytical Idea evaluation •• Marketing Model
Marketing Model Feasibility evaluation Market validation
Analytical
techniques
techniques Tools:
Tools: Tools:
•• Priorization Tools:
Priorization •• Technical feasibility
Technical feasibility
•• Scoring
Scoring •• Cost Planning
Cost Planning
•• ROI and others
ROI and others
•• Target Costing
Target Costing 21
22. Training in Innovation
Management
Target Groups (all player in the innovation system):
Companies
Knowledge Intensive Business Services
Universities and Research Institutes
Public and private support organizations
Sexy topic which attracts local players
More long-term approaches with 100 – 200 training hours
Training offer: Local player together with international partner
GiZ experiences in Central America (DESCA) and Tunesia
22
23. Experiences I
Training offer:
Cooperation between German training provider and local training provider
necessary, because of limited local knowledge
Local training provider can be university, business incubator, technology park
and business association, etc.
Practice-oriented focus of the training is very important – coaching of real
innovation projects – innovation plans
Need for very well developed training materials
Online training is partly possible
Don`t forget the social innovation topic
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24. Experiences II
Participants:
Participants can be mixed: staff of companies, universities, business services,
public support institutions
But at least 50% of the participants should be companies
Interaction between these players during the trainings is very fruitful
Local ministries of science and technology normally very interested in such
trainings – chance of capacity building
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25. Experiences III
Sustainability:
Start-up support by GIZ is very helpful, but after two editions one
can switch to use local resources only – assure sustainability
Need of local partner (from academic, training or consulting
field)
Train the trainers is very important but also challenging
25
26. Experiences III
Follow-up:
Networking afterwards could be very helpful
Support by online-platforms
Access to financial resources is important for companies to implement
innovation plans
Impact assessment is necessary
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27. Innovators Award
INNOGEORGIA
First Innovation Award in Georgia
5 winning projects gets financial support for
project implementation
Managed by Technology Transfer Center of
Georgia (TTCG)
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28. Innovators Award
INNOGEORGIA – Support for the winning projects
Type of Activity Knowledge Transfer via Services by the TTCG
Innovation audit Consultancy Innovation audit – systematic analysis of all
relevant factors affecting company’s
innovativeness
Specific needs Consultancy Find a sector-specific national or international
assessment expert to analyze technological level and make
suggestions for improvement
Know-how Research Partnership Enable cooperation with universities or research
development institutes
Introduction of new Consultancy Technology Appraisal – find the best provider of
technology the technology needed
New Product/Service Coaching Finding the right technology for a new
Development product/service development if needed, assist in
questions regarding application for patent
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29. Experiences
Concept:
Very good approach for awareness raising in companies
Public actors can get involved in order to create political support –
sustainability of the approach
Implementation:
Low entrance barriers – only innovation idea
Attractive awards with follow-up support for implementation
Use of local media for dissemination
Easy to combine with innovation management training
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