The document discusses how innovation capability is an architectural matter that depends on both organizational structure and resources. It presents a model showing how innovation capability is influenced by properties related to resources, processes, basic organizational attributes, and the external environment. The model identifies "adjustment screws" within each of these areas that organizations can modify to increase their innovation capability, such as providing training to develop human resources, establishing networks to gain new knowledge, or allocating financial resources to research and development. Two case studies of innovative companies, ZPMC and Huawei, are presented to illustrate how adjusting different parts of the model led to their success.

1. Innovation capability is an
architectural matter
Eldar Sultanow
Capgemini
08.02.2018

2. 2OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Our Statement
1
Architecture is key to
innovation capability
2
Adjustment screws reside
within architecture
3 We identify and use them

3. 3OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
What is Architecture?
Applications
Application Landscape, Capability
Map, …
Strategy
BMM, strategic plans, …
Processes
BPMN, EPK, …
Interfaces
Interface diagrams, interface
descriptions, …
Data
ER diagrams, data dictionary, …
Technology
Technology map, network plans, …

4. 4OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
What is Innovation capability?
Interplay between the human,
procedural and structural
resources, which enables the
creation of innovations
not defined by output, but
by intrapersonal factors and
modes of operation such as
work organization, corporate
culture, leadership, …

5. 5OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Our Model: Innovation capability as an architectural property
Structure of the environment
Structure of the organization
Resources Processes
Financial
resources
Virtual
resources
Personnel structure
Knowledge absorption
Customer
relationships
Organizational
learning
Human resource development
Risk management
Basic properties
 Financial structure: Investors, subsidies
 Virtual resources: High customer loyalty
 Physical resources: Institutes, think tanks
 Personnel structure: Experts, team structure
 Customer relationships: Lead users as innovation driver
 Organizational learning: Generate knowledge by recalling the past
 Human resource development: Trainings, involve employee know-how
 Risk management: Routines for risk control of innovation projects
 Organizational culture: Innovation promoters in top management, open
culture for the promotion of ideas
 Size: Critical mass of innovation supporters
 Network: Build technology networks
 Hierarchy: Decision-making structure for innovation, fast decision-making
 Orientation: Strategic focus on innovation capability
 Technology: Sustainable technology concept, Digitization for fast
processes and flexible innovation promotion
 Structure of the Environment: market driven innovation pressure,
pricing pressures, legal framework for dealing with IP
TechnologyOrientationHierarchy
Size
Organizational
culture
Network
Physical resources

6. 6OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Case 1: Shanghai Port Machinery Company (ZPMC)
• Became global leader in 9 years
• 2007 market share over 75%
• Establish technology center
• Collaborate with universities
• Gain knowledge of foreign experts
• Retired executives of large companies
in container industry
• Employ specialists even after
reaching retirement age
• Bind experts by providing above-
average social benefits
• Gain insights through close
cooperation with customers
Source of picture: https://pixabay.com/de/station-schiff-container-hafen-1277744/

7. 7OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Case 1: Shanghai Port Machinery Company (ZPMC)
2003
Double container crane moves 2
containers at once (halving the time for
ship loading and unloading)
2006
New crane version, with which 3
containers could be moved at once
2009
R&D costs 3.7% of sales
(already in line with the industry level)
2010 243 patents filed - tendency is rising
Source of picture: http://www.gettyimages.de/license/488016636

8. 8OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Case 1: The success of ZPMC can mainly be found in the
personnel structure
Establish technology center, think tanksPhysical resources
Collaborate with reputable universities (Northern Illinois Univ., Univ. of Queensland, Wuhan Univ. of Technology)Network
Gain of Know-how for crane installation in ports through close cooperation with customersKnowledge absorption
Gain knowledge of foreign experts, esp. from retired executives of large companies in container industry
Knowledge absorption
Personnel structure No fixed age limit: Employ specialists even after reaching retirement age
Personnel structure Bind experts by providing above-average social benefits
Personnel structure $ 2 million investment in self-construction of ships for transportation
Personnel structure

9. 9OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Case 2: Huawei
2012
Second largest telecom
equipment supplier in the world
2015
Third largest smartphone
manufacturer in the world
(behind Samsung and Apple),
Repeated patent world
champion
2016
Apple pays several hundred
million dollars to Huawei for
769 patents licensed to Apple
https://pixabay.com/de/huawei-p8-smartphone-huawei-tech-1106911/

10. 10OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Case 2: Huawei's success is largely based on R&D and patents
Invests 11.2% of its annual turnover (EUR 2.8 billion in 2011) in R&DFinancial resources
Physical structure Has a strategic Think Tank & Competence Center
Knowledge absorption 51,000 employees work in R&D centers around the world representing 46% of the total workforce
Network Joint ventures, cooperations, etc. with Motorola, Symantec, Siemens and the German Telekom

11. 11OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
The whole model and adjustment screws in detail
Structure of the environment
Structure of the organization
Customer compensation for innovation
performance
Preliminary expenses for R&D (regulations,
approval processes, …)
Price pressure and demand
for more quality
Culture and legal framework for the
management of intellectual property
Market-driven external innovation pressure
Resources Processes
Basic
properties TechnologySizeOrganizational culture
Net-
work
Knowledge absorption
Customer relationships Organizational learning
Risk management
HR Development
Lead user as innovation carrier
Customer Ideas and Requirements
Analysis
New sources of knowledge through
network expansion
Generate knowledge by looking
back over the past
Trainings
Integration of employee know-how
Routines for risk control of
innovation projects
Mergers & Acquisitions
Making knowledge access
transparent
Innovation through business
development phase model
Financial resources Virtual resources
Personnel structurePhysical resources
Strategic and geographical location
to research institutions
Creativity-enhancing corporate
equipment (think tanks)
Freedom for new ideas
Interdisciplinary cross-
departmental teams
Open knowledge transfer between
employees
Employees as innovation
promoters
Financing models for R&D
Budget availability for advance development projects with
internal cost allocation
High customer loyalty
(acceptance of new innovations)
Healthy working climate for
intensive innovation promotion
Established working culture to
promote innovation
Open corporate culture for
promotion of ideas
Success motivation through
identification of employees
with the company
Innovation promoters in
top management
Business Development
Department
Digitization for fast
processes and flexible
innovation promotion
Sustainable technology
concept
Hierarchy
Decision-making structure
for innovation
Reconfiguration
Flat hierarchies for short
and fast decision paths
Decision decentralization
Critical mass of innovation
advocates
Build technology networks
Partner-like manufacturer /
supplier relations
Orientation
Linking the strategy with
operational innovation
processes
Strategic focus on
innovation capability
Selection of innovation
projects
Applications for innovation
monitoring
Applications with access to
studies, patent databases
Analytical Applications for
expoitation evaluation
Interfaces to productive
systems with user / usage
data

12. 12OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Adjustment screws explained
Resources
 Financial Resources: Financing models for
R&D
 Physical Resources: Strategic and
geographical location to research institutions
Basic Properties
 Orientation: Linking the strategy with
operational innovation processes
 Orientation: Strategic focus on innovation
capability
 Orientation: Selection of innovation
projects
 Technology: Sustainable technology
concept
Strategy

13. 13OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Adjustment screws explained
Resources
 Personnel Structure: Open knowledge
transfer between employees
 Personnel Structure: Interdisciplinary,
cross-departmental teams
Processes
 HR Development: Trainings
 HR Development: Integration of employee
know-how
 Risk Management: Routines for risk control
of innovation projects
Processes

14. 14OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Adjustment screws explained
Resources
 Physical Resources: Creativity-enhancing
corporate equipment (think tanks)
Processes
 Customer Relationships: Customer ideas
and requirements analysis
 Organizational learning: New sources of
knowledge through network expansion
 Organizational learning: Generate
knowledge by looking back over the past
Basic Properties
 Network: Build technology networks
Data

15. 15OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Adjustment screws explained
Basic Properties
 Technology: Analytical applications for
exploitation evaluation
 Technology: Applications for innovation
monitoring
 Technology: Applications with access to
studies, patent databases
Applications

16. 16OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Adjustment screws explained
Basic Properties
 Technology: Interfaces to productive
systems with user / usage data
Interfaces

17. 17OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Adjustment screws explained
Basic Properties
 Technology: Digitization for fast processes
and flexible innovation promotion
Technology

18. 18OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Case 3: Public sector
Communities of Practice
 Development and definition of comprehensive solutions
 Increased dynamics of the technologies and methods used
 Open to every team from all departments
 Counterpart to centralized top-down specifications
LEGO® SERIOUS PLAY® method
 Clarify complex issues, develop new solutions
 Unfolding the full potential of creativity
 Approaches from strategy development, gamification, neuroscience
 Workshop by certified moderators
Source of picture: http://www.gettyimages.de/license/610451872 and http://www.gettyimages.de/license/494289826
LEGO, SERIOUS PLAY, the Minifigure and the Brick and Knob configurations are trademarks of the LEGO Group, which does not sponsor, authorize or endorse this material – 2017 The LEGO Group

19. 19OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Case 3: Public sector
Open Innovation Plattform
 Developing innovations together with customers
 Creation of new online services with end users, partners and own employees
 Open Proposal Processes, Voting with the Community
 Increasing the acceptance of BA products and services
What‘sMeBot
 WhatsApp chatbot with career choice suggestions
 Presentation and content primarily for young people
 Gain youth for a "classic career guidance"
 Video consulting for BA services, e.g. for customers abroad
 Complex issues visually supported, better confidence creation
Source of picture: https://ideenwerkstatt.arbeitsagentur.de

20. 20OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
What’s next?
Consideration of innovation categories in the model
 Product vs. Prozess Innovation
 Sustaining vs. Disruptive Innovations
1
Validation of the model in other industries
 Pharma
 Automotive
 Energy
2

21. 21OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
References
Hansen, A. (2014). Merkmale der Innovationsfähigkeit von kleinen und mittleren
Unternehmen: Ein sozialwissenschaftlicher Beitrag zur innovationsförderlichen Personal- und
Organisationsentwicklung; Dissertation, Rheinisch-Westfälischen Technischen Hochschule
Aachen
Klötzel, S., Krämer, S., Sandner, P., & Taing, S. (2017). Huawei: Ein chinesischer Gigant
betritt deutsches Terrain. China investiert, Munich Innovation Group GmbH,
http://www.china-investiert.de/huawei/
Niemann, K. D. (2005). Von der Unternehmensarchitektur zur IT-Governance: Bausteine für
ein wirksames IT-Management. Deutschland, Wiesbaden: Springer
Plötner, O. (2011). Counter Strategies im globalen Wettbewerb. Berlin, Deutschland:
Springer Gabler
1
2
3
4

22. 22OOP 2018 | Sultanow et al. | 2/12/2018 © 2017 Capgemini. All rights reserved.
Contact details
Dr. Eldar Sultanow
Capgemini
eldar.sultanow@capgemini.com
+49 911 300960
Oliver Weiß
Capgemini
oliver.weiss@capgemini.com
+49 69 91511111
Levent Sözer
Capgemini
levent-deniz.soezer@capgemini.com
+49 30 88703702

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