Arie Nagel, Netherlands/Slovenia

ISTANBUL CHAMBER OF INDUSTRY - 6th INDUSTRY CONGRESSSustainable Competitiveness: Industrial Technology and InnovationNovember 26- 27, 2007

ISTANBUL CHAMBER OF INDUSTRY - 6th INDUSTRY CONGRESSSustainable Competitiveness: Industrial Technology and InnovationNovember 26- 27, 2007

Profile of dr Arie P. Nagel

Education1960-1964 Mechanical Engineering, Amsterdam1971-1975 University of Eindhoven, Industrial Engineering and

Management Science1990-1992 PhD program, Thesis on Increasing the Strategic

Innovation Capability of a Firm; nominated for the Igor Ansoff award

Career1969-1981 Corus, Ahold and Shell, industrial engineer1971-2006 University of Eindhovenfrom 1977 on Management Consultant, esp. for SME's, S & O1979-1981 Philips Corporate Strategic Planning1993-1997 President of ISPIM, International Society for

Professional Innovation Management (www.ispim.org)from 1997 on Member of International Board of J. of Enterprising

Culture, Singapore (www.worldscinet.com/jec/jec.shtml)

2000-2006 Member of EITIM, European Institute of Technology and Innovation Management (www.eitim.org)

2000-2003 Partner of 'smart', EC-project on Strategic Alliancesfrom 2004 on Visiting professor in Technology Management and

Innovation, Ljubljana, co-ordinator of the TM module

apnagel@gmail.com

Overview

• Technology proves to be important

• Creation of new ideas

• New Product Development

• Success and Failure of New Products

• Strategic Alliances

• The Innovative, Open Company

• Quick Scan

70s

80s

90s

00s

History of Management Science Daft & Marcic, Understanding Management, Thomson

Ansoff (1965):

Corporate Strategy

MBA’s: Finance,

Law and Marketing

1970:

Technological

Forecasting and

the Club of Rome

Mid 70s: Creativity, basis for e.g. ISPIM

Envisioning the ‘home computer of the future’ in 2004 by RAND Corp. in the fifties.

Philiform - Philips

80s: Success and Failure in new Product Development

Innovators and Followers (Teece)

Success Failure

Follower

Innovator

IBMpersonal computer

KODAKinstant photography

DUPONTteflon

EMIscanner

Innovators and Followers

Likely failure

Look for a partner

Likely failure

Apply with the dominant design?

Supplementing resources available?

Can the intellectual property be protected?

Likely to succeed

no

no

no

Success Factor Grading

0 2 4 6 8 10 12 14

Superior product

Strong market orientation

International orientation

More predevelopment

Sharp and early product definition

Properly executed launch

Organisational structure and climate

Top management support

Technological and Marketing synergy

Aim at attractive markets

Sharper project selection

Project control / Quality of execution

The resources must be in place

Speed

Stage gate system

Protection of intellectual property

Dominant design

Secure access to Complementary assets

Consumer Innovator / Lead users

Learning

Non-product advantage

Su

ccess F

acto

rs

Number of responses1 Not so important

2 Fairly important

3 Very important

Cassette Deck

Development time: two years.

The competitor develops a new deck in just half a year.

Now what?

Solutions:

• Concurrent Engineering

• Modular design and Platform design

• Marketeers and Engineers work together in an early stage

• Rapid prototyping

Stage-Gate according to Cooper

Criteria for selection at the Gates

portfolio management

market knowledge, local party required

scale, specialised partner

satisfy a need, not a demand

R&D, complementary technology,

share know how

Cooperation in the network economy

2. Access to new markets

3. Efficiency

4. Clients do not want products, but tailored solutions

1. Access to knowledge

Access to new markets

Efficiency

Clients do not want products, but tailored solutions

Access to knowledge

Managing Diversity

• from ‘gold seeking’ to synergy with market, product/application, technology

soft aspects

• PLUS operations fit

• PLUS cultural, human, strategic fit

• yet complementary in competencies!

a. An innovative company should create an environment of learning and experimenting, rather than planning.

b. HQ should facilitate the initiatives from BUs, rather than direct BUs.

c. Venturing is not ‘just’ for getting new business, but more and more to create new options.

d. Key to getting knowledge and strengthening own competencies are strategic alliances.

e. Business teams which strongly disagree (yet believe in a common objective) are more innovative than a too well structured set up.

How to make a company more innovative?

10 factors for an innovative organisation

• Leadership and will to innovate• Appropriate structure• Key individuals• Effective team• Streaching individual capabilities• Extensive communication• High involvement in innovation• Customer focus• Creative climate• Learning organisation

Joe Tidd et al., Managing Innovation, Wiley, 1997 and on, Chapter 11: Building the Innovative Organization.

Copyright Arie Nagel, Netherlands

Copyright Arie Nagel, Netherlands

Copyright Arie Nagel, Netherlands

1. Brian Twiss, Managing Technological Innovation, Pitman, Longman, London, 1974, 1980, 1986 and 1992. C, In.

2. Preston G. Smith and Donald G. Reinertsen, Developing Products in Half the Time, New Rules, New Tools, New York, Van Nostrand Reinhold, 1991. Second ed. in 1998. In.

3. Steven C. Wheelwright and Kim B. Clark, Revolutionizing Product Development, Quantum Leaps in Speed, Efficiency, and Quality, New York, The Free Press, 1992. In.

4. Gary Hamel and C.K. Prahalad, Competing for the Future, Breakthrough Strategies for seizing control of your industry and creating the markets of tomorrow, Harvard Business School Press, 1994. C.

5. Stewart Bray, Total Innovation, How to Develop the Products that your Customers want, Pitman Publ./Pearson, London, 1995. In.

6. Robert A. Burgelman et al. The Strategic Management of Technology and Innovation, 2nd ed., Irwin, 1996. C, R.

7. Robert A. Burgelman , Modesto A. Maidique and Steven C. Wheelwright, Strategic Management of Technology and Innovation, second ed., Irwin, 2001. C, R.

8. R. G. Cooper, S. J. Edgett, and E. J. Kleinschmidt, Portfolio Management for New Products, Hamilton, Ontario, McMaster University, 1997. In.

9. Joe Tidd et al., Managing Innovation, Integrating Technological, Market and Organizational Change, Wiley, 1997. Second ed. 2001. C.

10. Robert G. Cooper: Winning at New Products, Accelerating the Process from Idea to Launch, Addison-Wesley, 1993. Third ed. in 2001. In.

11. V.K. Narayanan, Managing Technology and Innovation for Competitive Advantage, Prentice-Hall, 2001. C.

12. Henry Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology, Boston, MA, Harvard Business School Press, 2003. C.

13. David Probert et al., Bringing Technology and Innovation into the Boardroom, Strategy, Innovation and Competences for Business Value, European Institute for Technology and Innovation Management/Palgrave/MacMillan, 2004. C, R.

14. Melissa A. Schilling: Strategic Management of Technological Innovation, McGraw-Hill/Irwin, New York, 2005. C.

Some useful books: Conceptual (C), Instrumental (In), Reader (R)