benchmarking on innovation management. the spanish performance · benchmarking on innovation...
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PAGE 1FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
BENCHMARKING ON INNOVATION MANAGEMENT. THE SPANISH PERFORMANCE
INTERNATIONAL CONFERENCE ON BENCHMARKING
Stuttgart, 6th – 7th June 2002
PAGE 2FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
STARTING POINT
ORIGIN: COTEC FOUNDATION – Spanish reference for S&T as far as studies, publications, trend analysis, etc. is concerned – “BUSINESS IM”
BENCHMARKING EXERCISE TO ANALYSE THE WAY SPANISH
COMPANIES FACE INNOVATION MANAGEMENT vs. AMERICAN
FIRMS
PAGE 3FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
CONTENTS OF THE STUDY
• Methodology
• Reference IM model employed
• Some “best practices” identified in the different aspects of IM (technological strategy, RTD organisation, product development, cooperation activities, human resources, tech. Watch...)
• Conclusions of the BM Study (some areas)
PAGE 4FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
METHODOLOGY (I)
Typical Benchmarking process has been followed.
a) Selection of the participating companies: – preselection 50 spanish companies (national and
regional innovation prizes, experts on innovation management, etc.)
– brief questionnaire (40%) – criteria to define the final target group (20 firms):
• innovative character• equilibrated sample by industrial sector• companies’ size, etc.
b) Selection of the IM elements – consensus with the target group
PAGE 5FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
METHODOLOGY (II)
c) Detailed Questionnaire (based on a parallel IM study in 200 multinationals from Europe, USA and Japan)
d) Company information collection (interviews withthe company’s key people involved in TIM)
e) Comparative analysis, identification and description of best practices
PAGE 6FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
METHODOLOGY (III)
A similar process, although not so deep, has been carried
out on the 8 foreign companies. The analysis of these
companies has been especially used to enrichen the
research with the identification of additional examples of
good practice, as well as to globally evaluate the IM level
achieved by the Spanish companies.
PAGE 7FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
SELECTED SPANISH FIRMSFOR IN-DEPTH STUDY
132Ona Electroerosión
Machinery 1.410Copreci
290Indalux
4.980Indra
472Ikusi-Ángel Iglesias
124Eliop
4.620Alcatel EspañaElectronic,IT
4.987Lear Corporation
6.500Grupo Antolín
750Autoliv KieAutomobile
2.500Grupo Leche Pascual
1.439Freixenet
10.000Campofrío Alimentación
Agrofood
EmployeesFirmSector EmployeesFirmSector
1.100Telefónica I+DTelecommu-
nications
800SenerEngineering& TechnicalAssistance
655AntibióticosChemist &Pharmacy
952Patentes TalgoOther
TransportMaterial
230Mikalor
981Gres deNules-KerabenMaterials
37.400Repsol-YPFEnergy& Water
PAGE 8FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
SELECTED AMERICAN FIRMSFOR IN-DEPTH STUDY
20.000UKFoodUnited Biscuits
4.500EE.UUSoftwareSiebel Systems
513EE.UUDigital OsciloscopesLecroy
39.800EE.UUPersonal Hygiene Products
Gillette
2.300GermanyMechanical EquipmentCompau
300EE.UUElectronic Components
BTU
97.000UKEnergyBP
24.000EE.UUMedical EquipmentBecton Dickinson
Employees 1998
CountrySectorFirm
PAGE 9FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
PROCESSES OF THE IM MODEL
NUCLEAR PROCESSES:
• directly involved in the technological innovation
• results are related to the transformation of opportunities and ideas into innovations which have an impact on the market.
FACILITATING PROCESSES
• not exclusive of the TIM, but are equally necessary for the nuclear processes to work in an effective way.
PAGE 10FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
IM MODEL DIAGRAM
TechnologicalStrategy
TechnologyAcquisition
ProcessesInnovation
ProductDevelopment
ProjectManagement
Organisation
Q/ Indicators
HR
Technologywatch
Co-operation
PAGE 11FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
NUCLEAR PROCESSES
4 nuclear processes:
Development of the technological strategy: a process which can and usually does culminate in the definition of a Technological Plan
Technology acquisition process: incorporation of technology from outside as well as the internal generation of technology
Product or Service Development Processes: all the activities which go from the identification of an opportunity or the generation of anidea for a new product up to the moment in which the product is introduced into the market
Process Innovation: identification of an opportunity or the generation of an idea for a new or improved process, up to the point in which the process is put into practice in the company.
PAGE 12FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
FACILITATING PRACTICES
RTD Organisation: analysis of the operative structures of the IDT area- difference between R and D- other strategic and operative aspects of IDT (decision taking structures, financing, external technology,resource distribution, etc.)
Management of the Human Resources involved in IDT.
Collaboration with third parties: company’s value chain (suppliers and customers) or organisations belonging to the technological offer.
Quality management and assurance : indicators to measure a company’s innovation system.
Technological Watch: information collecting activities, as well as its analysis and further exploitation within the company.
Project management: horizontal ability which affects the efficiency and effectiveness of the whole organisation and especially the process of productdevelopment and process innovation.
PAGE 13FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
BEST PRACTICE: DEFINITION
Best practice in this context:• activity or group of activities related to TIM • clear and specific objective• defines a concrete way of doing things• has been put into practice by a specific company• stands out especially for its quality and/or the innovating
character of the tasks it entails as well as for the results it obtains.
• can be applied to other kinds of companies and sectors (adapting it to its own reality).
PAGE 14FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
TECHNOLOGICAL STRATEGY: REPSOL-YPF
1. Leading Spanish company in the hydrocarburates sector.2. 3 areas of explotation:
• Oil and Natural Gas Production activities• Production and commercialization of derived petrochemical
products.• Distribution and commercialization of gas liquified from petrol (GLP)
and natural gas.
Turnover 2000: 45.738 million euroForeign commerce 2000: 37%Employees 2000: 37.400
PAGE 15FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
BEST PRACTICE: REPSOL TECH. STRATEGIC PLAN (I)
TSP Mission:
• define, bearing in mind both the Business Units and Repsol Group Corporation, the technological threats and opportunities of the Group’s business interests.
• Satisfy the technological needs through the putting into practice of integral and common projects defined within the framework of a Strategic Plan.
HOW:
• Non-written process, fairly structured methodology.
• Promoted and lead by the Director of Technology, but with the collaboration at other levels within the company.
PAGE 16FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
BEST PRACTICE: REPSOL TECH. STRATEGIC PLAN (II)
METHODOLOGY:
• Joint meetings between those in charge of the programmes and the Business Units (Operations, Marketing and Commerce Managing Directors, etc.)
• A few months intensive work, obtaining a PT in five years.
• For each of the Business areas:
- Sector analysis.
- Analysis of Repsol’s position in the sector.
- SWOT analysis and strategic positioning to achieve
- Definition of strategic objectives from a technological point of view.
- Identification of the areas for technological development and RTD projects (title, typology, years, budget, resources etc.)
PAGE 17FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
BEST PRACTICE: REPSOL TECH. STRATEGIC PLAN (III)
REASONS FOR SUCCESS:
In addition to other less important methodological elements:
• Very structured meetings and diagrammed analysis, rather than lots of
research.
• Discussion and decision taking directed to achieving a reciprocal
concensus rather than the searching of data and information.
• High level of descipline
• The abundant information provided by the review of the project
portfolio designed annually by the Technology Unit.
PAGE 18FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
OPTIMIZATION OF THE PRODUCT DEVELOPMENT PROCESSES: COPRECI
COMPANY’S CORE ACTIVITIES:
Development, manufacture and sales ofcomponents for electrodomestic appliances,providing a service to manufacturers andfinal users of the following sectors:
– Cookery (taps, valves and security thermostats for kitchens, ovens,...)
– Washing (programmers, pressure measurers for washing machines, ...)
– Air heating (security elements for gas heaters etc.)
Forms part of Mondragón Corporación Cooperativa (MCC). Integrated into the components division. This allows the company to know the needs of its customers and the new demands which are proposed to them.
Turnover 2000: 126 million euro Exports 2000: 72% Employees 2000: 1.410
PAGE 19FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
BEST PRACTICE:COPRECI CUSTOMER-GUIDE (I)
WHAT: a figure which allows COPRECI to ensure that their P&S respond
to and are executed according to market needs and requirements.
WHEN: applied fundamentally in projects whose objective is the
development of a new platform of non-standard products which
normally require a technological jump.
WHO: usually a habitual customer, although it may be a company which
is not one of their customers but representative of the market which
the product is being directed to.
PAGE 20FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
BEST PRACTICE:COPRECI CUSTOMER-GUIDE (II)
WHERE: throughout the whole development process, from the
conceptual phase all the way through to its launch.
HOW: the customer-guide recieves the same information that COPRECI
uses to internally validate the product. This normally requires the
establishment exclusivity or confidentiality clauses in which COPRECI
promises not to sell to a competitor.
DIFFICULTIES: sometimes is difficult to match the planification and
speed of the developments. This entails delays for the whole process.
PAGE 21FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
PROCESS IMPROVEMENT: ALCATEL ESPAÑA
COMPANY’S CORE ACTIVITIES:
– Telecommunication equipment
– System, cable and component suppliers.
– Offer complete solutions to problems concerning anything from network infrastructures to user terminals for operators, service providers, businesses and consumers.
Alcatel España is integrated in the European group of businesses Alcatel Telecom.
Competitors: Ericsson, Siemens, Lucent Technologies or Nortel.
Turnover 2000: 1,450 million euro
Exports 2000: 20%
Employees 2000: 4.620
PAGE 22FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
BEST PRACTICE:ALCATEL HIGH-SPEED PROGRAMME (I)
What is this:
A programme that designs and implements projects thought up to achieve business process improvement in very diverse areas.
How does it work:
Management defines a set of areas where it would be interesting to make improvements. For instance:– Customer satisfaction.
– Benchmarking.
– Cost improvement.
– TTM improvement.
– Service assessment.
– Internal satisfaction.
– Stable customer relationships.
– Cost/quality relationship.
PAGE 23FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
BEST PRACTICE:ALCATEL HIGH-SPEED PROGRAMME (II)
• Anyone can propose a High Speed project in an area of interest (duly justified)
• Specific projects are created: a project team and a sponsor from the company’s Senior Management (VERY IMPORTANT)
• Top Management - very close follow-ups for the different projects, fundamentally via presentations from the project team both during the development of the project as well as at the end.
Achieved Results: Through the customer satisfaction questionnaires, it came to light that some of Alcatel’s more relevant customers did not consider the service as highly as before. With a High Speed project centred in this area the customer’s levels of satisfaction were brought back to their previous high levels.
PAGE 24FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
DIFFERENT METHODS FOR TECHNOLOGICAL ACQUISITION: SPANISH COMPANIES’ PREFERENCES
Spanish firms value more those methods which imply a greater control on behalf of the company:
1. Internal RTD2. Continuous Formation3. Subcontracting of RTD activities to companies and third parties4. Incorporate suppliers’ technologies5. Consortiums6. RTD Sponsorships in the University7. Joint ventures / strategic alliances
PAGE 25FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
DIFFERENT METHODS FOR TECHNOLOGICAL ACQUISITION: FOREIGN COMPANIES’ PREFERENCES
The multinationals have no reservations in using methodswhich may escape the company’s control. (joint-venturesor licences, for example).
1. Internal RTD2. Incorporate suppliers’ technologies3. Joint ventures /strategic alliances4. Licences5. Incorporate customer technologies6. Continuous Formation7. Acquisition of internal RTD products
PAGE 26FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
TECHNOLOGY WATCH: LEAR AUTOMOTIVE (EEDS) SPAIN
Leading world seat manufacturer. Currently, a technologically strategic line is based on the integration of electronics in vehicle’s interior modules (Intertronics TM).
Turnover 2000: 395 million euroExports 2000: 91%Employees 2000: 4.987
NB: This study is based on the Spanish subsidiary before it was bought by the Lear Corporation in May 1999.
PAGE 27FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
FeedbackFeedback
InfoInfoAnalysisAnalysis
Identification Identification andSearching ofandSearching of
InformationInformation
Storaje andStoraje anddistributiondistribution
NeedsNeedsUseUse
Searching and analysisOf patents
Internet
Magazines
TechnologistNetwork
KnowledgeStock
Data Base
Bulletin
ProductBenchmarking
Open meetingsfor proyect
disemination
Patentslibrary
BenchmarkingData base
BEST PRACTICE: LEAR TECH.WATCH SYSTEM (I)
PAGE 28FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
BEST PRACTICE: LEAR TECH. WATCH SYSTEM (II)
• Surveillance not managed globally, but rather each of the initiatives that have been developed over time.
• Great diversity of the initiatives and systematic approach -area of improvement.
• Some of the processes are worth emphasis:
1. Product Benchmarking:
• person in charge (Marketing Manager) and a benchmarking team
• internal resources (subcontracting in some cases)
• BD benchmarking – globally available for Lear Corporation
PAGE 29FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
BEST PRACTICE: LEAR TECH. WATCH SYSTEM (III)
2. Search for patents through the PST (Patent SearchTeam):* a team of 6 people (Technological Centre, Engineering and Legal Department)* identify needs* WPINDEX and JAPIO DB* STN patent distributor- minimum information for each patent- more information register
PAGE 30FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
BEST PRACTICE: LEAR TECH. WATCH SYSTEM (IV)
• With the results of the searches, a library of patentes is being designed (complemented with the information from their patent agents).
• In general, the whole organisation participates in one
way or another in the different activities of technology
watch, although there is a team with very defined
roles.
PAGE 31FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
Technological Plan Development REPSOL
RTD Projects Selection LEAR
RTD Organisation GRUPO
RTD Process Structure COPRECI
Product Development & Launching Process LEAR
Guide Client COPRECI
High Speed Program ALCATEL
New Products Industrialisation & Process Improvement AUTOLIV
RTD Indicators LEAR
Multiple Types of RTD Strategical Partnership SEVERAL
Seeking for Collaboration and External Financing ONA
Best Collaboration Framework: Summary of Ideas Implemented by Different CompaniesSEVERAL
Skills Identification System REPSOL
Project Management and Development Methodology TELEFÓNICA
"Project-Maker Machine" SENER
Risk Management System LEAR
Scientific Adviser Comitee CAMPOFRIO
International Practices on Technological Watch ALCATEL
Technological Watch System LEAR
Technological Map REPSOL
GOOD PRACTICES COMPANY
BEST PRACTICES SUMMARY
PAGE 32FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
CONCLUSIONS BM STUDY
1. TECHNOLOGYCAL STRATEGY
2. OPTIMIZATION OF THE PRODUCT DEVELOPMENT PROCESSES
3. PROCESS IMPROVEMENT
4. TECHNOLOGY WATCH
PAGE 33FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
TECHNOLOGICAL STRATEGY:CONCLUSIONS OF THE BM INVESTIGATIONS
1. IMT in Spanish companies has suffered various important changesover the last five years:
– more ambicious objetives (Technology & innovation)– greater range of products and markets.– more sophisticated equipment for the RTD activities.– growth in costs and organisation.
2. The development of a technological strategy is not generalized. It isvalued very positively:
– responds to a participative process– focused on obtaining immediate tangible benefits.
3. Success is highly conditioned by the figure of the Technology ManagingDirector or General Managing Director.
4. The companies which use more advanced practices rely on an evaluation and project selection systems
PAGE 34FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
OPTIMIZATION OF THE PRODUCT DEVELOPMENT PROCESSES: CONCLUSIONS OF
THE BM RESEARCH
• Some businesses: process innovation is more or less relevant than product innovation (such as in the agricultural o pharmaceutical sectors)
• However, product innovation was normally the area of greater interest for all of them.¡¡¡¡¡ New markets and greater market share – strategic objective!!!!!!!!.
4 key aspects for product development: – Capacity to develop more and better products and services– quicker– cheaper– respond to the customers’ needs
PAGE 35FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
PROCESS IMPROVEMENT: CONCLUSIONS OF THE BM RESEARCH
Less systematized methods than those used in the product development.However, companies such as Copreci, Alcatel and Indra are, amongstothers, quite rigorous in the approach and execution of theirimprovements.
Critical factors for process improvement success are:
• The qualifications, versatility and mentality of the people participatingin the improvement teams (their participation in the project must be done alongside the everyday tasks as they are not normally people who dedicate their work wholly to projects).
• Especially in some smaller businesses, requires work which will be done outside working hours.
• Direct involvement of Top Management.
• Clear leadership.
PAGE 36FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
TECHNOLOGY WATCH: CONCLUSIONS OF BM RESEARCH
+ information on the surroundings- deeper knowledge concerning competence.
Techniques currently used:• Benchmarking excercises,• Market observers• Specialized information services• Patents analysis• Etc.
A GREAT NEED TO IMPROVE IN AREAS CONCERNING ANALYSIS, SHARING, DISTRIBUTION AND
STORAGE OF INFORMATION- COMPANY INTRANET.
PAGE 37FOUNDATION FOR DEVELOPMENT OF SCIENCE AND TECHNOLOGY IN EXTREMADURA
Further information
• FUNDECYTCarolina [email protected] – SpainTf: 00 34 924 207690
• COTEC FOUNDATIONwww.cotec.es