Technology and Innovation Management Prof Dr Oliver Gassmann

Technology and Innovation Management Prof. Dr. Oliver Gassmann ISEP - Entrepreneurial Leadership Diessenhofen, 2004

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 2 “Everything that can be invented has been invented. ” Henry L. Ellsworth US Commissioner of Patents, Annual Report to Congress 1843 87044

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 3 Just 0, 6 % of all Ideas for Innovation Turn Out to Be Successful on the Market Ideas for Innovation 1, 919 1, 550 eliminated (about 81 %) 369 Basic Project 193 eliminated (about 52 %) 176 Products 124 eliminated (about 70 %) 52 Still on the Market Total Loss Success 24 Avg. Perf. 17 Result 11 Kienbaum Survey 72029

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 4 Comparative Competitive Advantage A missing comparative competitive advantage (CCA) explains 4 out of 5 failed innovations Factors that lead to failure: – – – Electronic mouse trap Me-too-product Technical weaknesses Competitive weaknesses Price deterioration on the market Problems in the environment 28 % 24 % 13 % 7% 80 % 15 % without CCA Kienbaum Survey (1993) 72030

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 5 Innovationsmanagement zwischen Technology. Push und Market-Pull Gesellschaft Kultur Strategie Vision/Mission Ressourcen Struktur Wissen Technologien Kompetenzen Märkte Innovations. Strategie Neue Technologien Technologie Kunden Wettbewerber Partner $ Entwicklung Impulse Umwelt Mitarbeiter Werte Ressourcen

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 6 The Dilemma of Innovation Management Organization that Supports Creativity (Guilford) Restrictions at MNU - High complexity of tasks - Little standardization and formalization - Little centralization of decisionmaking processes - Direct, open communication - Structure Decentral centers of knowledge - Strategy Core competencies, platforms - Process Standardization, Controlling - Culture Tendencies towards rigidity Creative Freedom Disciplined Execution Linux Windows 75157

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 7 Bringing New Technologies into Product Strategy Scanning of new Technologies - Prototypes Product Development Breakthrough development Venture teams with goals “Free-wheeling” Mid/long term ROI People Management 75194 - Product development Highly structured process Sophisticated controlling Short term ROI Process Management $

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 8 Managing Technology at Schindler CTO Advanced Development Competitor Intelligence CQ Technology Management Platform Management - System Architecture - Development - Technology Strategy - Advanced Development HR New Jersey Ebikon - Simulation - PDM - Testing Shanghai Sao Paulo Knowledge Management Technology Liaison Officer Services Core Competencies 70046 Benchmarking Change Agent

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 9 “Internet is just a hype !“ Bill Gates, Microsoft 1995 87067

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 10 “Die weltweite Nachfrage nach Kraftfahrzeugen wird 1 Million nicht überschreiten. . . allein schon aus Mangel an verfügbaren Chauffeuren. “ Gottlieb Daimler, Daimler Motoren Gesellschaft, 1901 87068

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 11 Rucksack of Forecast Methods Quantitative Trend. Patent- Extrapolation, Analysis Computer. Simulation Bibliometrics/ Mapping Cost-Benefit-Analysis Interconnection. Matrix Relevance-Tree Literature. Analyses Qualitative Historical Analogies Scenarios Roadmaps Brainstorming/ -writing 5 years Delphi 10 years 15 years 20 years 25 years Future Reger (2001); in: Gassmann/Kobe/Voit: High-Risk-Projekte 71023

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 12 Scenario Technique Procedure Analysis of Determinants Forecast Synthesis Zeit Today Future Horizon Zeit Zukunftshorizon t Today Future Horizon 71050 Extreme Projection A Extreme Scenario B Extreme Projection B Time

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 13 Cross-Industry Innovation at BMW: 3 Steps Supplier OEM Technology-Supplier/ Start-Up Exploration Adaptation Integration Information-Flow Emphasis of Development Source: Diss. Stahl (2002) 71096

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 14 Dealing with Uncertainty of Prognosis – – Understand drivers of uncertainty Talk about what you do not know Do not confuse ambiguity with uncertainty Express uncertainty as ranges and probability distributions not as point estimates “It is better to be approximately right than precisely wrong!” David Matheson 1998 72020

Process Management in R&D

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 16 The Vicious Circle of Bad Project Planning Quality. Problems Time. Delay Changes new versions, new priorities Capacity. Bottlenecks Unscheduled Work 73020 Consequences: - Continuous crises - Bad motivation - Muddling through

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 17 Project-Goals: “The Magic Triangle” Revenues, Life-Cycle-Costs, Profit Quality Available Resources Project. Goals Costs Time Product-Price, Market-Potential, Profit Market-Entrance, Revenues, Profit 73038

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 18 Stage Gate Process at Schindler Product Creation PCP/PC Product Planning PCP/PP Preliminary Business Case P 0 Idea Backlog Preliminary Product Proposal P 2 C 0 Definition and Business Commitment C 0 C 4 in Product Maintenance PCP/PM C 10 Project Contract Backlog Product Development C 6 E 0 E 5 C 9 Product Success Assurance KG Sales Releases Sourcing Implementation C 6 GPIG 73114 M 2 KG Introduction C 4 out Project Contract C 4 - C 10 M 0 Product Elimination PCP/PE C 8 C 9 C 10

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 19 Schindler: Sophisticated Controlling for Development 73115

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 20 Schindler: Efficient Capacity Management 73116

Core Competencies and R&D Outsourcing

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 22 Elements of Core Competencies Processes Core Competence Technologies Skills 80006

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 23 Four Steps of Identifying Actual Core Competencies Competitors Customers Technologies Mission Challenges Technology Portfolio Consolidation to core competencies

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 24 Developing the Technology Portfolio C 1 Cm CC CC 1 Substitution Technologies Competitors T 1 ………. . Tm ………. . Customers & Markets M 1 Mm ………. . …. Skills CCn S 1 Pm People ………. . …. Strategic Impact Sn How good are we? How important is that competence? Resources 80019

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 25 Leverage through External Cooperation Strategic Impact high Study Invest - Pilot projects with low budget, “high-risk-highimpact” - Cooperation with external partner Observe - Long-term investments within core competencies - ROI long term Optimize - Core competence, but strategic impact is decreasing - ROI short term Divest low No budget Technology-owner Conferences, magazines Cooperation with universities New Technologie s 80021 - No competitive advantage within the next 5 or 10 years - Decrease resources and evaluate for new fields high Core Competenci es Resources

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 26 Technology Portfolio at Schindler Strategic Impact high low 3 D-Simulation Wireless Communication Modelling Super Invest Dynamic Prototypes Caps High Rise Motion Passenger Elevator Technology Intelligent Guidance System Control Safety New SWReliability Web-Technology Peripheral Bus Technology Engineering Devices Preventive Platform Engineering Contactorless RBS Fiber Drives Linear Hoist / Maintenance Ropes Permanent MRL Mechatronics Door Drives Highintegr. Magnet Motors Rail system Narrator Mobile Remote Sound Optimize Advanced User. Monitoring Design Dynamic Load Agents Interface / Compensation OO-SW Design Multimedia System Click & Plug Algorithm Traffic e-house Engineering & Ride Dispatcher New Control Bluetooth Technologies Configuration Technology Process Hydraulic Multi-car PDM Drive Mic 10 System Wireless Observe AI Technology Extensions Energy Intelligent Transfer Passenger Disinvest Energy Detection. Commissioning-/ Conversion PCB Development Service free Elevator Gears ASICS New Materials Intelligent Technical Structure Sensors - intelligent Catalogue Bonding - composite SA/SD on Paper Installation Methods Drive Data Piezzo Super. Tables conductivity - Robots Drive Active Ride Control low high New Technologie s 80020 Core Competenci es Resources

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 27 “Wenn Du entdeckst, dass Du ein totes Pferd reitest, steig ab. ” Weisheit der Dakota-Indianer 87020

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 28 Trust as Core of Cooperation Spirit positive t negative Enthusiasm Cultural Shock - Cultural Assimilation Create an atmosphere of trust Know how travels with heads Change agents against NIH-Syndrome 75132 Stability

Intellectual Property Management

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 30 Protection of the Customer Interface at Valser 12 IP-rights on patent, design, brand Inventor: Lutz Colani

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 31 Intellectual Property Management Becomes Important: Patent Strategies Patent rights p. a. : Ø 29% growth Source: Trilateral Statistical Report 2001 of EPO, JPO and USPTO

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 32 What Can be Patented? Products Software ! Systems Processes Business Models ! 79006

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 33 Litigation Costs Grew by 25% Over 2 Years 25% Average Cost of Litigation (amount at stake < $1 million) Source: AIPLA Economic Report 2001

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 34 Patents: Enshure Own Freedom of Action and Block Competitors Protection Defend against third parties Weapon aggression against third parties Source of Income exchange of patents licence income Marketing for products and companies 79010

Customer as Driver of Innovation

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 36 Kernaufgabe des Innovationsmanagement bei BMW „Unsere Aufgabe ist es, dem Kunden etwas zu geben, was er haben möchte, von dem er aber nie wusste, dass er es suchte und von dem er sagt, dass er es schon immer wollte, wenn er es bekommt. “

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 37 “There is No Market for a Micro-Recorder. “ (Sony Market Research) 71097

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 38 Solving Future Problems Market Research Pilot Development & Trend Research - Articulated requirements of customers - Law of the big numbers - Short-term oriented - Visions of lead users for future requirements - Problem oriented technology projects - Venture capital 72027

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 39 Lead User Workshops at Hilti Technological Trend Estimation Expert Chats Lead User Identification Customer Surveys by Phone Concept Generation Lead User Workshop Concept Test of Market Acceptance with Representative Users 72095

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 40 Intelligente Gebrauchsanweisungen. . . Auf einem Föhn von Sears: “Nicht während des Schlafes benutzen. ” Auf einem Stück Seife von Dial: “Anleitung: Wie normale Seife benutzen. ” Auf Tiefkühlkost von Swansons: “Serviervorschlag: Auftauen. ” Auf Tiramisu von Tesco’s: (auf die Unterseite gedruckt) “Nicht umdrehen. ” 87007

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 41 . . . oder wie dumm ist der Kunde ? Auf einem Bread-Pudding von Marks & Spencer: “Das Produkt ist nach dem Kochen heiss. ” Auf der Verpackung eines Rowenta Bügeleisens: “Die Kleidung nicht während des Tragens bügeln. ” Auf Boot’s Hustenmedizin für Kinder: “Nach der Einnahme dieser Medizin nicht Auto fahren oder Maschinen bedienen. ” Auf Nytol Schlafmittel: “Achtung: Kann Müdigkeit verursachen. ” 87008

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 42 Customer Focus in R&D – – Start early with competitive analysis Market pull by including real customers into the project Long-term trend research complements market research Activating implicit knowledge of customers within lead user workshops – Problem-oriented technology-projects instead of blue-sky research – Interdisciplinary venture teams replace the interface between R&D and Marketing Know-how travel with heads! 73033

Prof. Dr. O. Gassmann Technology & Innovation Mgmt. ISEP 2004 Seite 43 Strategisches Management von Technologie und Innovation Kunde als Innovationsmotor Prognosen Plattformmanagement Gesellschaft Kultur Strategie Business Vision Märkte Ressourcen Struktur Wissen Technologien Kompetenzen Frühe Phase und radikale Innovations. Strategie Neue Technologien Technologie $ Entwicklung Opportunities Umwelt Kernkompetenzen und F&E-Outsourcing Lead User Wettbewerber Stakeholder Mitarbeiter Partner F&E-Management Ressourcen Intellectual Property Management Prozessmanagement