innovationsmanagement kaunas kurzfassung 11101 englisch

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InnovationManagement and Controlling of

© Herwig Friedag 2011

Independent consultant focusing on: Implementation of Balanced Scorecard in

companies Workshops on Balanced Scorecard

Internationaler Controller Verein eV head of the PR committee at ICV

Visiting lecturer at Humboldt University in Berlin andDanube University Krems (A)

Hobbies: discovering the New, travels, bicycle tours, enjoying the nature, volleyball, sailing

Herwig R. Friedag

Dr. Herwig R. Friedag Friedag Consult

Beskidenstr. 33, D 14129 Berlin Fon +49 30 80 40 40 00Fax +49 30 80 40 40 01

consult @ friedag.comwww.friedag.com

Born in1950, Dipl. Volkswirt, Dr. rer.pol.

© Herwig Friedag 2011 3

Agenda

1 What is Innovation

2 Company Structure as a Basis for Innovations

3 How do we Create Innovations

4 Innovation Controlling

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Management and Controlling of Innovation


Innovation

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1. What is Innovation

Innovation is a technial or organizational novelty: new products, new markets, new procedures, new approaches, new processes , new sales channels, new promotions and and much more.

source: http://de.wikipedia.org/wiki/Innovation


Invention – Innovation – Renewal

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We distinguish between:

Renewal:

exchange of products/services

Invention: generation of an idea

source: http://de.wikipedia.org/wiki/Innovation bzw. http://de.wikipedia.org/wiki/Erneuerung

Innovation:

something new that proves its worth on the

market

Invention

Invention is the basis of innovation But, it is not enough to just generate an idea:

Sale or use distinguish innovation from invention.da Vinci’s helicopter

Transrapid


Invention


Invention is the basis of innovation But, further developments

of existing solutions as well as for previously unknown solutions are also innovationsSea-Container

improvement of existing and creation of

new combinations of production factorsNespresso

Innovation

An innovation deals normally with something „new”, a previously unknown solution. Postal service:

Packstation (parcel-station)

This novelty has to be noticed and

become conscious. i-Phone


This combination has to prove its worth in the market or in-house (company).

bofrost* frozen food delivery

Opening up new markets and gaining access to the marketsWalkman

Innovation


Innovations

Innovation leads to a short period of monopoly and therefore to financial benefits (pioneer advantage)


Renewal

RenewalIt is about the exchange or replacement of products/services. For example, a new car model that has been launched into the market.Platform-strategy of Volkswagen

scheduled further development of

existing solutions Minicontainer


Renewals


Renewal strengthens the existing structures and processes. Renewal needs open spaces for targeted improvements.

Impact of Renewal / Innovation 1

1 from: Kim / Mauborgne: der blaue Ozean, Hanser, p. 7



Why Innovation

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Source: Gleich et al.: Innovations-Controlling, 2011, p. 32

„Thanks to innovations we are able to significantly increase our profitability“


Why Innovation ?

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actively meet technical and economical changes Innovation is the central resource in the global market

source: Innovationsförderliche Organisationskultur, Eine konzeptionelle und empirische Untersuchung radikaler Innovationsprojektevorgelegt von Diplom-Psychologin Jeanette Liebeherr (http://opus.kobv.de/tuberlin/volltexte/2009/2286/pdf/liebeherr_jeanette.pdf)

Result:crucial significance of radical innovationesp. the creative potential of colleagues

is to be promoted and employed: we need a innovative corporate cultur!


Agenda


2 Corporate Culture as a Basis for Innovations



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What is Corporate Culture?

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2. Corporate Culture as a Basis for Innovation

Corporate culture is a term from organizational theory and describes the creation, development, and influence of cultural aspects within an organization.

source: Wikipedia (http://de.wikipedia.org/wiki/Organisationskultur)

The corporate culture is closely related to the in-house structures and centrally influences the innovation readiness and innovation capability as well as enthusiasm for taking risk and experimenting

among individuals, organizational units and as a result in the entire company.

source: Schein, Edgar: Unternehmenskultur, Frankfurt/Main, New York, 1995


General Conditions for Creativity and Innovations

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The most important factor is a positive view of people:

„We have in principle a positive, open-minded attitude towards people.“

We have an understanding for individuality of our colleagues.

We accept differences among people. We are ready to solve problems in an active and moderate way. We provide appropriate requirements and support. We rely on our colleagues’ judgements. We trust in efficiency and commitment.

We respect our colleagues.


Innovation and Positive View of People

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Conditions to motivate people are to be created:

more self-determination wider areas of responsibility more flexible organizational structures, group work and projects

etc. self-controlling instead of external control

creativity will be promoted by good leadership


Promoting Innovation through “Good Leadership“

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together prepared / supported company vision

Company-values we are living

we-thinking (team spirit)

emotional intelligence (empathy, social competence)

vision+ values

+ spirit

+ social competence= good leadership


Good Leadership

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The behaviour of a executive manager signals which values, attitudes and patterns of behaviour are considered to be appropriate.

Executive managers set essential framework conditions for their staff members.

Executive managers are central ”culture carriers” and culture creators.

An innovation-promoting corporate culture comes into being through a cooperative and bottom up management style.


Further Innovation-promoting Aspects

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composition of staff/teams competence development within company appreciation participation and involvement positive approach to mistakes freedom

innovation as a basis for your business model


Agenda


2 Corporate Culture as a Basis for Innovation



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visi

on

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Innovation-promoting Corporate Culture (1)

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3. How do we Create Innovations

Ideas for implementing „good“ management:

aims and visions should be there, still better: should be together developed and communicatedvision as a picture of our future to inspire ourselves and our

colleagues: visions bring clarity and direction into our actions and thinkingwe know in which direction our company is developing we know what our aspirations are, what our actions and

wishes aim atwe don´t need specific rules

building correspondence between responsibility and competence



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Ideas for implementing „good“ management :

controlling instead of control empower people, delegate responsibility and control to the staff bringing together many involed colleagues ”visiting” the workplaces practicing open-discussion culture across several hierarchy levels creating willingness to eliminate unnecessary ACTIONS detecting and solving chronic conflicts setting an example



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Ideas for implementing „good“ management :

education of management / staff job-rotation delegating responsibility ideas exchange (methods of evaluating ideas) reorganize company into teams--> reduction of „de-part-ment"-borders



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Ideas for courage appreciation:

team bonuses (money, incentives) the amount of incentives for team work has a positive effect, the

amount of incentives for individual performance has however negative effect innovation culture can be directly influenced by incentive systems

the material incentive system has a direct, positive effect on effectiveness and the immaterial incentive system on the efficiency of the project

public ”praise” for the team responsibility delegation


Positive Approach to Mistakes as a Part of Corporate Culture

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seeing mistakes as „an opportunity to learn”

Positive approach to mistakes has a considerable and direct influence on the innovation potential as well as on the company competitiveness.

Productive mistake strategies are a central competitive factor, because the way you see and evaluate mistakes and how you deal with them in daily routine has a great influence on the productivity of the company Somebody who regularly reviews his/her mistakes, prevents their

repetition. The most valuable lessons are these which initiate self-learning directly after a mistake has occured so that at least the same mistake won’t occur again.


Positive Approach to Mistakes as a Part of Corporate Culture

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seeing mistakes as „an opportunity to learn”

Positive approach to mistakes has a considerable and direct influence on the innovation potential as well as on the company competitiveness.

Productive mistake strategies are a central competitive factor, because the way you see and evaluate mistakes and how you deal with them in daily routine has a great influence on the productivity of the company Somebody who regularly reviews his/her mistakes, prevents their

repetition. The most valuable lessons are these which initiate self-learning directly after a mistake has occured so that at least the same mistake won’t occur again.

no mistake is the biggest mistake


Agenda


2 Corporate Culture as Basis for Innovation



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Innovation Phases to be Considered

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4. Innovation-controlling


Controlling in All Innovation Phases

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Quelle: ControllingWiki


Controlling does not stop innovation

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1. Discuss goals with the management

2. Try to find figures which are creating transparency relevant for the management simple to count / for understanding

3. Discuss the situation with the management

4. Learn and improve the situation


Example

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Controlling in All Innovation Phases

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1. Ideas generation

number of developed or implemented ideas etc.

2. Operationalisation price-expectations

3. Research targeted production costs

4. Development Innovation rate

5. Market launch Profit-share of new products

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Conclusion


Innovation Management

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Conclusion: Innovation

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Sustainable development

Income by innovation

Ideas for innovation

Motivation for ideas

Leadership motivates

Corporate culture

Learning with mistakes

Controlling needs Goals

Figures allow discussions

Daily innovation

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The End?

No:

I hope the beginning of aconsequent innovation

management

innovationsmanagement kaunas kurzfassung 11101 englisch

Technology

basis of innovation

innovations4 innovation

new markets

innovation readiness

innovation capability

innovation deals

new processes

new products