DRIVING CORPORATE INNOVATION IN AFRICA:
CHALLENGES AND OPPORTUNITIES
Capacity upgrading session to Corporates and Tech-hub capacity (Virtual)
IntroductionsAEIP- Matthias Ploeg, Deputy Director- Carlos Hinojosa, Deputy Director- Tata Dinyuy, Consultant- Tatjana Guznajeva, Consultant- Sainabou Jallow, Consultant
CcHub- Obo Henshaw- Tomi Jaiyeola
Experts- Prof. Dr Johann Fueller, University of Innsbruck- Professor Dr. Katja Hutter, University of Innsbruck & Universität Saizburg- Mr. Bosun Tijani, Co-Creation HUB
Results so Far & Opportunities Ahead
• Pillar 1: Tech Hub Cooperation– Results: Close-knit first cohort of 20 tech hubs with 30 partnerships.
– Opportunities: Selection of Second Cohort of Tech Hubs this Fall; Upcoming Thematic Challenges
• Pillar 2: Technology Transfer
– Results: Community of Practice Launched; TTO Activity Mapped
– Opportunities: Join the Network of African & European TTOs; Further Training Opportunities
• Pillar 3: Capacity Upgrading
– Results: 5 high quality training modules developed and held
– Opportunities: Future training on EU funding opportunities for tech hubs; several future webinarsplanned
• Pillar 4: Wider Engagement
– Results: Community of 800+ Innovation Stakeholders
– Opportunities: Join the community to benefit from notification on fundingopportunities, partner matching and more.
The AEIPs capacity upgrading component
• Upgrade capacities to strengthen innovation ecosystems and EU-Africa cooperation
• Face-to-face training sessions, online training activities, and the development of training material online catalogue
• Gain access to all capacity upgrading material & modules at: https://africaeurope-innovationpartnership.net/
Module 2
Module 1
Module
3
Module
4
Module
5
Capacity
Upgrading
Module 5: Driving corporate innovation – challenges and opportunities
• Support tech hubs and corporate firms in building a scalable framework for the application of corporation innovation in driving enterprise performance and sustainability.
• Driving a shared understanding and equity in an innovation agenda within the participating organisations (i.e. tech hubs and corporates)
• Establishing structure and processes for the implementation and management of corporate innovation
• Evaluating the return on investment to strengthen the impact of corporate innovation on businesses’ bottom line
• Improve the understanding on how tech hubs can strengthen their portfolio of activities in support of corporate innovation
We invite you to engage with the Africa-Europe Innovation Partnership through:
- Website: https://africaeurope-innovationpartnership.net/
- Twitter: https://twitter.com/AfricaInco (#AEIP4 #TenableTech)
- Facebook: https://www.facebook.com/AfricaEuropeInnovation
- LinkedIn Page: https://www.linkedin.com/groups/12292388/\
Or contact the AEIP team directly: [email protected]
About CcHUB:
● Co-creation Hub (CcHUB) is an innovation centre dedicated to
accelerating the application of social capital and technology for economic
prosperity on the continent.
indirect jobs have been
created by portfolio companies through their
value chain
in external funding
attracted by our startups
$61M+
$1m
+invested in directly
startups by CcHUB
1,000+
35k+
650+startups can trace their
roots to Co-Creation
Hub via our dierent
programs/ intervention
community
members online and on-site
81k+
followers
globally through our social media
outreach
20m+
individuals have
worked in our coworking
community space
7,300
+direct jobs have been
created by our
portfolio companies
7,300+
direct jobs created by our portfolio companies
Presence in Lagos, Abuja, Ijebu-ode, Kigali and
Nairobi
indirect jobs created by portfolio companies through their value
chain
individuals that have worked out of our
spaces at some point in their
entrepreneurial journey.
35k+ 1,000+
Some of the prominent startups we have worked with include:
Expected learning outcomes
Driving understanding and equity in an innovation agenda within organisations
Establishing structures and processes for implementation of corporate innovation
Evaluating the return on investment of support for corporate innovation
How to tailor tech-hub service offering to corporates
Keynote 1:
Driving shared understanding and equity in an innovation
agenda within your organization
Professor Dr Johann Füller Chair of Innovation & Entrepreneurship and also the Chief Executive Officer of
HYVE
“Today no one needs to be convinced that innovation is important – intense competition, along with fast changing markets and technologies, has made sure of that.
HOW TO INNOVATE IS THE KEY QUESTION” (Drucker 1988 p.149).
Corporate Innovation: How to Drive Company Performance through
Innovation
Prof. Dr. Johann Füller, September 2020
© 2000 - 2018 HYVE AG 5
About HYVE
Hi, we are the Innovation Company
We bring innovations to the next level
and help our clients to become better
innovators!From products to smart products, from services to AI-based innovations,
from B2C and B2B innovations to internal innovation management.
© 2000 - 2018 HYVE AG 6
Smart Home innovation
About HYVE
We help our clients create successful innovations from start to finish
Invisible for Black & White Deo Thermomix ecosystem: digital experience Marine Engine 175D Service design for digital innovations
Professional SensoDryer E-mobility disruption
Paketbutler
Splice Lock
Wealth management solution
Nivea Vorwerk MAN BMW
Braun Lilium
Telekom
EnBW
HypoVereinsBank
Hearing Implant
MED-EL
Physical & digital coffee experience design
Philips
B2B innovation
Zeiss
© 2000 - 2018 HYVE AG 7
About HYVE
We help our Clients to become better Innovators in the Digital Era!
Start-up
Building
Software
Engineering &
AI-Analytics
Smart Product
Design &
Development
Crowdsourcing &
Customer
Centricity
Organizational
Empowerment &
Labs
Innovation
Management
Innovation
Strategy
HYVE
OFFERING
Innovation Readiness
Assessment
Search Fields & Innovation
Roadmap
Innovation Ecosystems Design -
Role of Startups
Innovation Logic: Exploitation/
Exploration; Open vs. Closed
Innovation Process Set-up
Innovation Portfolio
Management
Decision Structures
Roles and Responsibilities
Workflows
Innovation Tools
Training
Customer Needs Mining
Trend Receiver Studies
Idea Contests
Use Case Generation
Concept Testing
A/B Testing A/BInnovation Academy
Blended Learning
Hackathons/ Innovation Days
Innovation Labs
Change Management
Innovation Challenges
Front- & Backend
AI-Analytics
Web-Applications Development
Digital Service Blueprints
Wireframes and Mockups
Feature Sprints
UX/UI
Ideation and Design
Concepts
Tech & Solution Scouting
Technical Feasibility
Studies
Prototypes
Batch 1 &
Sourcing Partners
Start-up as a Service
Opportunity Identification
Business Case Validation
MVP Building
Business Set Up and
Joint Steering
Team Search and Building
Innovation Software
Implementation
© 2000 - 2018 HYVE AG 9
Strategy
Resources
Inn
ov
atio
n
Perfo
rman
ce
Process
Methods & Communication
Organization
Culture & People
House of Innovation
© 2000 - 2018 HYVE AG 10
Different Innovation Games
Core Business Adjacent Business New Business
Efficiency
Innovation
Radical
Innovation
Incremental
Innovation
Continous
Improvement
Process
(CIP)
Open
Innovation
& Co-Creation
Incubation/
Acceleration
Digital Innovation
Business
Model
InnovationClassical
Innovation
Management
Different Innovation Management LogicsDifferent Types of Innovation
Core Business Adjacent Business New Business
© 2000 - 2018 HYVE AG 11
Sweet-Spot of Innovation
User-Centric Design
Feasible Implementation Sustainable Business
Desirability
ViabilityFeasibility
© 2000 - 2018 HYVE AG 12
The New Normal of Innovation
How to Innovate “BETTER”
From Closed Innovation to Remote Innovation Ecosystems
Centralized,
inward-looking
innovation
Externally focused,
collaborative
innovation
Globally dispersed
cross-organizational
remote innovation
Closed Innovation Open Innovation Remote Innovation
EcosystemsUser-centric Innovation
Active user
integration in the
innovation process
User Centricity and Co-Creation
Centralized,
inward-looking
innovation
Closed Innovation User-centric Innovation
Active user
integration in the
innovation process
© 2000 - 2018 HYVE AG 15
How to get deodorant off of black shirts?
[…]It looks bad, so what’s a quick way to
remove it if I’m going out?
Don't you hate it when you notice
a deodorant stain right as you are
leaving the house? Use a baby
wipe and its all gone!
NetnographyInsights©
Nivea Invisible for Black & White
User remedies against stains
Stain manual
Community collection & selection
Community observation, software-aided
data gathering & analysis of consumer
discussions
Identification
of consumer insights
Task:
What consumer needs can be
found in social media regarding
deodorants? How can this be
translated into ideas? Which
ideas are the most promising
ones?
© 2000 - 2018 HYVE AG 16
Co-Creation
Nivea Invisible for Black & White
Translation of needs into ideas /
concepts
Evaluation of visualized ideas and
selection according to developers‘ index.
Data analysis: rankings based on
different criteria (developers‘
index, brand fit, novelty,
originality etc.)
© 2000 - 2018 HYVE AG 18
How We Innovate
From Closed to User Centric Innovation
Closed Innovation Process – “The lab is our world”
Open Innovation Process – “The world is our lab”
Company
Consumer
Company
Consumer
Internal, R&D driven innovation process
User-centric co-creation process
Insights &
Opportunities
Ideas &
Technology
Concepts &
Prototypes
Product
Development
Market
Launch
Open Innovation and Crowdsourcing
Externally focused,
collaborative
innovation
Open InnovationUser-centric Innovation
Active user
integration in the
innovation process
© 2000 - 2018 HYVE AG 21
Acquisition
Spin outDeinvestment
Joint business
development
R&D servicesLicensing out
Spin In Venturing
MARKET
CORPORATE
BOUNDARIES
IDEAS
NEW MARKET
CORPORATE
BOUNDARIES
Corporate Innovation is Changing
Open innovation becomes the dominating approach
CROWDSOURCING
© 2000 - 2018 HYVE AG 22
Idea
Gene-
rationCorp.
Labs
Generation of
ideas
Selection &
Concept
Techn.
development
Market
launch
Openness
Innovation
process
Supplier / customer
integration
External
cooperationsExternal
communities
Cross-
Sector
Along the
value chain
Within
Sector /
Division
Within
BU
Idea
Management
IPR / Standard.
Sales & Marketing
Technology
e-Broker
Open
expert
networks
Spin-in
Spin-
out
Venture
Capital
Research & Development
Open Innovation @ SIEMENS
© 2000 - 2018 HYVE AG 23
Enterprise Search
for Technologies
Internal
E-broker & Scouting
TechnoWeb2.0
Open Idea Contests
External
TechnologiesIdeas
Collaboration of
creative masses
Identification of the
expert(s)
▪ In-source external knowledge
▪ Foster your ecosystem
▪ Gain market transparency
▪ Leverage internal knowledge
▪ Engage your employees
▪ Create transparency
Culture Change
Open Innovation @ SIEMENS
© 2000 - 2018 HYVE AG 24
Osram LED emotionalize
your light – Idea Contest
Siemens Sustainability
Idea Contest
Siemens India Ltd.
Siemens Idea
Contest Mobility
Siemens Smart Grid Innovation
Contest:
Phase I + II
Siemens Student Award
Middle-East
Siemens Student
Award Brazil
2010
Siemens Student Award Germany
2010
2010
2009
2011
2011
2011
2012
2013
Siemens
Scouting Germany
2013
Siemens Student Award,
Middle-East II
2013Siemens Health Care
Scouting Platform, USA
2013
Siemens Germany
Data Driven Services
Open Innovation @ SIEMENS
© 2000 - 2018 HYVE AG 26
Challenges companies are facing when switching to open innovation paradigm
Key issues:
• Suitability of task for outsourcing
• Trade-off internal problem solving vs. external (what should and what should not
be outsourced?)
• Framing and communicating the problem
• Domain knowledge available to “brief” the crowd
• Measurement of success / evaluation of outcome
• Breaking down the big challenge in problems to be addressed by the crowd
• Integrating the acquired external solution information again
• Loss of internal know-how and competences in the long run
• Confidentiality when outsourcing key innovation tasks
• Legal conditions
© 2000 - 2018 HYVE AG 27
Globaly Dispersed
42% DACH
12% USA
Clear interface guides
participants through the
different phases of the formats
Communicate through your
brand or use a secret HYVE
Crowd campaign
Collaboration on ideas,
concepts and use cases
Community members share
personal information that
allows better targeting
Evaluation of submission
according to different criteria
Get insights beyond singular
ideas, reports and analyses
CROSS-
FUNCTIONAL
25%STUDENTS
6%MANAGERS
6%ENGINEERS
11%DESIGNERS
Diverse Community
> 8.500 Innovators
12% ASIA
34% Other
Crowdsourcing as a Service: Co-create and test concepts together with the
CROWD www.hyvecrowd.com
© 2000 - 2018 HYVE AG 29
Participants from different disciplines work together to prototype solutions to companies‘ innovation challenges.
Crowdsourcing as a Service
© 2000 - 2018 HYVE AG 30
1
2
3
4
5
monetaryrewards
show ideas
gain knowledge
innovationinterest
dissatisfaction
curiosity
reward
need
curiosity
Impact of Personal Characteristics
on Motivations
Expertise
Exploratory
Behavior
NEED• Dissatisfied
with current
offering
REWARD• Innovation as
work
• High domain
specific skills
INTRINSIC• Tinkerer
• Innovation as
hobby
CURIOSITY• novelty
seeking
• early majority
Low High
Low
Hig
h
27.8 % 26 %
26.3 % 19.9 %
Design Principles
Tasks
Which tasks should be
offered?
Provide various tasks: e.g. idea generation; evaluation; modification at
different levels of complexity. Support different roles such as: designer,
evaluator, networker.
Intensity and Extent
How often want
consumers be engaged?
Spur frequent and ongoing engagement.
Ensure current and high quality content, providing reason to
continuously return and contribute to the co-creation project.
Update participants about evoked resonance/ actions visitors, likes,
comments
Tools and multimedia-
rich environment
Which role plays the
context?
Provide supportive and empowering contexts
Gamification and powerful push engagement
Inspire with media-rich content
Reduce cognitive effort for participation
Interaction among
participants
How to create a lively
dialogue?:
Encourage intense interaction among participants and company
representatives
Build a community
Incentives
Are monetary rewards
important?:
Give direct and honest feedback
Offer monetary prizes related to performance (quality and/or quantity
of contributions)
Additional non cash prizes may serve as special form of recognition
Provide clear and transparent rules, especially regarding IP rights
Partner
With whom want
consumers interact?
Interaction with well-known brands and producers
Allow direct interaction with innovation team and developers
Source: Füller Johann (2010), “Refining virtual co-
creation from a consumer perspective”,
California management review 52 (2), 98-122
Who Participates and What do they Expect?
© 2000 - 2018 HYVE AG 32
Impact of Technology and Innovation on Economic Growth
„
“
Recently, radical technology
change started to evolve faster
than the rate society can think
about it. We should therefore
strengthen our abilities to adopt
to the changes more quickly.
CEO Google Moonshots
Astro Teller
S&P1 500 Development
1 Standard & Poors 500, commonly known as S&P 500, is an American stock index
Source: We haven’t anything seen yet: https://www.youtube.com/watch?v=AZ5ePL36BbU
2017197019001800
Steam
power
Electronic &
IT systems
Electrical
energy
Cyber-Physical
Systems
Connected Assets
& Consumers
Speed of disruptions is increasing
?
© 2000 - 2018 HYVE AG 33
What We Innovate
Everything that CAN be … WILL be DIGITIZEDP
ote
nti
al
Level of Change
EfficiencyIncremental Radical
Digital
Product +
Process +
Business
Model
Digital
Process +
Decisions
IoT
Big Data
Digital
Products &
Services
© 2000 - 2018 HYVE AG 35
Agriculture
Precision Farming
35https://www.deere.com/en/technology-products/precision-ag-technology/
© 2000 - 2018 HYVE AG 36
GAMING APP
CONTROLLER
THE ICAROS ACTIVE VR TECHNOLOGY
WILL REVOLUTIONIZE THE WAY PEOPLE
WORKOUT AND PLAY
© 2000 - 2018 HYVE AG 37
https://www.icaros.com/experiences/exper
iences-detail/steroids/https://www.icaros.com/experiences/experien
ces-detail/icarace/
https://www.icaros.com/experiences/experiences-
detail/engadin/
© 2000 - 2018 HYVE AG 38
ICAROS ACTIVE VIRTUAL REALITY
ICAROS SMART PRODUCT PLATFORM
Business ModelSoftware &
Data
Services
Process
Stakeholder &
People
Hardware &
Technology
Customer
& User
Experience
Comparative
Analytics
Software Customization
Online Multiplayer
Strategic
Partnerships
In-Game Purchases
Product Design
Mechanical & Electronical
Engineering
Product-Software
Interaction
Unique Experiences
Virtual Reality
Social Competition
System Integration
Customized Training
Classes
Freemium
Online Platform
Key Account
Management
Hardware Revenues
User Guidance &
Instructions
Global Live
Interaction
Shareholder Mgmt
Global Platform
Virtual Reality
Applications
Virtual Avatar
Body Upgrade
Software Revenues
© 2000 - 2018 HYVE AG 3939Matzler et al. (2016) Digital Disruption – Wie Sie Ihr Unternehmen auf das Digitale Zeitalter vorbereiten, S. 23.
Digital World
Real World
6. Layer
New customer value,
new busienss logic
5. Layer
Digital Services
4. Layer
Analytic
2. Layer
Sensors and
actuators
1. Layer
Physical product
or process
3. Layer
Connectivity
SMART Innovations
combine the
Digital World
with the
Real World
© 2000 - 2018 HYVE AG 40
Startups Dominate the Digitial World
Startups are increasingly disrupting markets & challenging established companies
“You’re never too big to fail”
© 2000 - 2018 HYVE AG 42
Eric Ries
Entrepreneur & Author
„The only way to win is to learn
faster than anyone else“
Innovation in Ecosystems
Externally focused,
collaborative
innovation
Network-centric,
cross-organized
innovation
Open Innovation Remote Innovation
Ecosystems
© 2000 - 2018 HYVE AG 44
Corporates can work
LIKEStartups
Corporates can work
WITHStartups
How Corporates can benefit from the Digital Era
While corporations are sitting around thinking about ideas, startups are taking them to market.
© 2000 - 2018 HYVE AG 45
How We Innovate
Know-How
Money
Access
Facilities
Labor
From Open Innovation to Innovation Ecosystems – Agile Teams
Customers
Startups
User
Suppliers
EmployeesCross
Industry
Universities & R&D
Institutions
Expert Crowd Communities
CompetitionCORE
TEAM
© 2000 - 2018 HYVE AG 46
HYVE Innovation Lab
Digital innovation often occurs in lab and intrapreneur structures by applying
agile startup thinking
© 2000 - 2018 HYVE AG 47
Innovation in increasingly digital times
End-to-end and guided process
setup
• Identification and Selection of
relevant topics and tasks
• Application process and selection of
Lab-participants
• Stakeholder management
• Identification and selection of
relevant partner
• Discussion of communication and
change related topics
1
2 - 4 w e e k s
1 1 1
learn
• Identification, discussion, and
selection of relevant insights:
• Customer & user
• Technology
• Market and competitors
• Society and Trends
• Evaluation and priorization of needs
• Visualization of insights
• Development of Need Cards
2 - 8 w e e k s
ideate
• Ideation and enrichment:
• Products- and services
• Processes
• Business logic
• Visualization of ideas
• Development of user journeys
• Concept /Business Model Testing &
Feedback
• Technical Feasibility
Quick Check
2 - 8 w e e k s
prototype
• Development of digital prototype
• Wireframes
• MockUps
• Clickable Dummies
• 3D Renderings; 3D Printing
• Model development
• Constant User Testing
• Realization planning
4 - 1 2 w e e k s
DATA PERSPECTIVE (Needs, Validation, Testing etc.)
DIGITAL PERSPECTIVE (Services, Apps, Software, Digital Prototyping etc.)
DESIGN PERSPECTIVE (Insight Visualization, UX Design, Industrial Design etc.)
ENGINEERING & PROTOTYPING (Technical Feasibility, digital & physical Prototyping)
PROJECT MANAGEMENT / PMO
BUSINESS MODELLING (Markt Quick Check; Business Canvas, Business Cases etc.)
© 2000 - 2018 HYVE AG 48
Common principles of today’s innovation approaches
General principles of today’s
innovation processes
1. User-centricity / empathy.
2. (Low-fidelity) Prototyping and
experimentation firs
3. Hypotheses-led iterative
process
4. Refinement based on empirical
data and validation
Design
Thinking
Lean
Startup
SCRUM
© 2000 - 2018 HYVE AG 51
H V B I n n o v a t i o n L a b
http://www.it-finanzmagazin.de/hvb-startet-innovation-lab-und-wird-als-vc-geber-fuer-fintechs-aktiv-schon-45-mio-euro-investiert-28726/
The HVB Lab enabled by HYVE allowed us to
come up with top-quality ideas that were
implemented in the company. The lab is a great
opportunity to face the digital transformation
and to rethink existing business models in a
creative environment. What has started as an
experiment has turned out to be a full success.
Dr. Theodor WeimerCEO HVB
Digitale Innovationen für die Finanzbranche
© 2000 - 2018 HYVE AG 52
Druck
Luftdruck
Flüssigkeit Partikel
Feuchtigkeit
Vodafone Graffiti Detector
© 2000 - 2018 HYVE AG 53
Research: Innovation Labs from a Participant‘s Perspective
• Diverse, self-motivated, and entrepreneurial group of participants
• Sufficient top management support and resources
• Intense dialogue with participants to manage expectations
• Consider an ecosystem of innovators
• Facilitate teams in the beginning with high intensity
• Upfront preparation concerning facilitation in regard to intensity of
guidance, roles, skills, and how to manage unexpected outcomes
• Provide the necessary resources to transform the generated ideas into
feasible business
• Surrounding conditions are required for returning participants to further
advance their careers and mindsets
PRE LAB
LAB
POST LAB
© 2000 - 2018 HYVE AG 55
Resillience – The art to
handle the unexpected situation
and successfully adapt
https://www.veronikalangguth.de/3151/stress-in-der-zukunft-4-0-wie-die-digitalisierung-hilft-unsere-resilienz-zu-trainieren-2/
© 2000 - 2018 HYVE AG 57
HYVE’s digital toolbox for innovation
From strategy & insights to co-creation, testing & long-term innovation programs
STRATEGY
in-manas
Use a digitalized strategy process with proven
analytical, conceptual and executive tools to
guide your strategy efforts.
INNOVATION PROCESS
HYPE
Organize your in innovation process with the
leading innovation management solution to
ignite the innovative power of your employees,
users and partners.
CO-CREATION
Remote Workshops
Collaborate in a digital space guided by expert
workshop facilitators to create ideas/concepts,
build new business models, synthesize, align
stakeholders or make decisions.
INSIGHTS & TESTING
Online Research Community & AI-based
Emotion Recognition
Identify user needs and innovation opportunities
or gain quick turnaround feedback on any
concept. Understand users’ emotions with our
AI-based emotion recognition.
IDEATION & VALIDATION
HYVE Crowd
Innovate with 8.500+ users and experts to
generate hundreds of fresh ideas, find the most
appealing use cases or validate any idea over
night.
INNOVATION PROGRAMS
Joolia
Rely on proven innovation methods from an
extensive repository to create tailored
innovation programs such as Design Sprints or
Innovation Labs in no time.
© 2000 - 2018 HYVE AG 5959
The era of Social Distancing requires to rethink your innovation management!
R E M O T E I N N O V AT I O N E C O S Y S T E M S
HOW TO ORCHESTRATE AN INNOVATIVE ORGANIZATION?
HOW TO COME UP WITH AN INNOVATIVE
SOLUTION?
HOW TO DEAL WITH INNOVATION?
INNOVATION
TASKS
INNOVATION
PROCESS
INNOVATION
STRATEGY
DOING
CREATING
THINKING
Hyve AG, Publikationsbewilligung
© 2000 - 2018 HYVE AG 60
2
2,5
3
3,5
4
4,5
Organizationdigital readiness
Missinginnovation culture
Budget restriction
Focus daily business
Legal boundaries
Missing leadership buy-in
Missing technological skills
Missing clarity
Missing understanding
Organizationalresponse capacity
Mean mgmt. Mean employees Mean lower mgmt.
Mean middle mgmt. Mean upper mgmt.
Mean mgmt. Mean employees Mean lower mgmt.
Mean middle mgmt. Mean upper mgmt.
Ready or Not:
Managers’ and Employees’ Different
Perceptions of Digital Readiness and their
Impact on Transformation Management
Dimensions
Level
of analysis
Individual Difference Factors Structural Factors
Individual
level
Segment 1: Individual beliefs
Perceived individual digital readiness
Attitude towards digital transformation
Segment 2: Competences
Digital knowhow
Digital skills
Organizational
level
Segment 3: Shared beliefs
Digital empowerment
Digital involvement
Segment 4: Capabilities
Perceived organizational digital readiness
Innovation barriers and reaction speed
Gfrerrer, Hutter, Füller, Ströhle – submitted to CMR
2
2,5
3
3,5
4
4,5
Individual digitalreadiness(Individual
beliefs)
Attitude towardsdigital
transformation(Individual
beliefs)
Digitalknowledge(Individual
competences)
Digital skills(Individual
competences)
Digitalempowerment
(Shared beliefs)
Digitalinvolvement
(Shared beliefs)
© 2000 - 2018 HYVE AG 61
We explore and empower the New!
Versatility
Creative Spirit Passion
Thoughtfulness Community
Bravery HYVE Mission
We are inventors & explorers of an
era in which innovation has to be
rethought. Together with our
customers, we create revolutionary
solutions that we need and love. In a
connected world, we make companies
better innovators to meet the
challenges of the decade ahead and
actively shape the future.
THX!
© 2000 - 2018 HYVE AG 63
The New Normal of Innovation
How to Innovate “BETTER”
From Closed Innovation to Smart Open Innovation Ecosystem
Centralized,
inward-looking
innovation
Externally focused,
collaborative
innovation
Network-centric,
cross-organized
innovation
Closed Innovation Open Innovation Innovation EcosystemsUser-centric Innovation
Active user
integration in the
innovation process
Innovation Automation
AI-powered
innovation based on
ubiquitous data and
crowd accessability
© 2000 - 2018 HYVE AG 66
Contact us
We look forward to speaking with you!
+49 (0)89 189081 - 100
www.hyve.net
Location
Contact
Haus der Innovation
Schellingstraße 45
80799 Munich, Germany
Keynote 2:
Creating value for our Innovation Stakeholders
Professor Dr. Katja Hutter, University of Innsbruck & UniversitätSaizburg
What is our value proposition to our customers?
Innovation & Entrepreneurship
University of Innsbruck
Senior Research Associate | Hyve AG
Schellingstraße 45 | 80799 Munich
Laboratory for Innovation Science (LISH)
Crowd Innovation Lab | Harvard University
175 N. Harvard Street | Boston, MA 02134
Univ.-Prof. Dr. Katja Hutter
Innsbruck, September 2020
Always be thinking about how you can create value for your company using innovation.
Create Economic Value Transform Company Culture
THE VALUE PROPOSITION CANVASHow to create value for your customers?
DESCRIBES THE BENEFITS CUSTOMERS CAN EXPECT FROM YOUR PRODUCTS & SERVICES
What is a Value Proposition?
6
1. Relevancy.
Explain how your product solves customers’ problems or improves their situation.
2. Quantified value.
Deliver specific benefits.
3. Differentiation.
Tell the ideal customer why they should buy from you and not from the
competition.
What is a Value Proposition?
7
An innovation, service, or feature intended to make your offerings attractive to customers („why should I buy…?“)
Good value propositions are:
- Simple- Unique- Memorable- Personal
Value proposition design is a central issue in modern marketing & innovation
It plays crucial role in any business model
11
… CAN BE USED TO GIVE A CUSTOMER SEGMENT A FACE AND NAME AND MAKE IT EASIER TO STEP INTO THE SHOES OF THE CUSTOMER.
What is a Persona Canvas?
https://designabetterbusiness.com/2016/06/01/three-powerful-ways-use-persona-canvas/
Customer Segment
Customer Jobs:
1. What are functional jobs/tasks to solve for the customer?
2. What are social jobs/tasks to solve for the customer?
3. What are emotional jobs to solve for the customer?
-Power-Status-Sustainabilitye.g. travel without ecological footprint
-Problem solving issuee.g. get to work by car but stuck in traffic(time constraints, need for arrival)
-Security -Well-beinge.g. travel safe and comfortable
21 3
12
Customer Jobs: Trigger Questions
1. What is the one thing that your customers could not live without accomplishing? What are the stepping stones that could help your customer achieve the job?
2. What are the different contexts that your customers might be in? How do their activities and goals change depending on these different contexts?
3. What does your customer need to accomplish that involves interactions with others?
4. What tasks are your customer trying to perform in their work or personal life? What functional problems are your customers trying to solve?
5. Are there problems that you think customers have that they may not even be aware of?
6. What emotional needs are your customers trying to satisfy? What jobs, if completed, would give the user a sense of self-satisfaction?
7. How does your customer want to be perceived by others? What can your customer do to help themselves be perceived in that way?
8. How does your customer want to feel? What does your customer need to do to feel that way?
9. Track your customer‘s interaction with a product or service throughout its lifespan. What supporting jobs surface throughout this life cycle? Does the user switch roles throughout the process?
13https://divergentthinking.design/04-value-proposition-design-workshop
14
Customer Segment
Pains:
• What are main difficulties encountering the customer? (e.g. lacking functions of a product)
• Where does the customer expect more? (e.g. high costs, takes too much time & time consuming)
• What makes the customer feel uncomfortable? What risks does he/she fear? (e.g. unfulfilled social desires)
Customer Pains: Trigger Questions
1. How do your customers define too costly? Takes a lot of time, costs too much money, or requires substantial efforts?
2. What makes your customers feel bad? What are their frustrations, annoyances or things that give them a headache?
3. How are current value propositions under performing for your customers? Which features are they missing? Are there performance issues that annoy them or malfunctions they cite?
4. What are the main difficulties and challenges your customers encounter? Do they understand how things work, have difficulties getting certain things done, or resist particular jobs for specific reasons?
5. What negative social consequences do your customers encounter or fear? Are they afraid of a loss of face, power, trust or status?
6. What risks do your customers fear? Are they afraid of financial, social or technical risks? Or are they asking themselves what could go wrong?
7. What is keeping your customers awake at night? What are their big issues, concerns or worries?
8. What common mistakes do your customers make? Are they using a solution the wrong way?
9. What barriers are keeping your customers from adopting a value proposition? Are there upfront investment costs, a steep learning curve, or other obstacles?
15https://divergentthinking.design/04-value-proposition-design-workshop
16
Customer Segment
Gains:
• What can be reduced/saved? (e.g. reduce time, money or effort)
• What does contribute to a solution for a given problem?
• What are customer needs & desires?
• What does the customer value? (e.g. functional, symbolic, hedonic, social)
Customer Gains: Trigger Questions
1. What savings would make your customers happy? Which savings in terms of time, money, and effort would they value?
2. What quality levels do they expect and what would they wish for more or less of?
3. How do current value propositions delight your customers? What specific features do they enjoy? What performances and quality do they expect?
4. What would make your customers’ jobs or lives easier? Could there be a flatter learning curve, more services, or lower costs of ownership?
5. What positive social consequences do your customers desire? What makes them look good? What increases their power or their status?
6. What are customers looking for most? Are they searching for good design, guarantees, specific or more features?
7. What do customers dream about? What do they aspire to achieve or what would be a big relief for them?
8. How do your customers measures success of failure? How do they gauge performance or cost?
9. What would increase your customers’ likelihood of adopting a value proposition? Do they desire lower cost, less investment, lower risk or better quality?
17https://divergentthinking.design/04-value-proposition-design-workshop
18
How to define your Value Proposition
https://divergentthinking.design/04-value-proposition-design-workshop
19
How to define your Customer Profile
https://divergentthinking.design/04-value-proposition-design-workshop
Products & Services: Which products/ services … do I offer solving a job to be done for the customer? … am I offering satisfying fulfilling basic needs of my customers? … picture an added value for my customer as a buyer/co-creator/
distributor?
Pain Reliever
Gain Creator
Products & Services
Value Proposition
20
Pain Reliever:How can I … terminate challenges and difficulties of my customer?… offer improved solutions as an established provider?… avoid negative impacts on by customers‘ operations?
Gain Creator:How can I ease my customers‘ lives? Whereby can I satisfy customer needs? How can I provide a fit between my offering and customer demands?
21
How to define your Value Proposition
https://divergentthinking.design/04-value-proposition-design-workshop
Customer Jobs
Gains
PainsPain Reliever
Gain Creator
Products & Services
Value Proposition Customer Segment
22
FIT
How to create value for your customers?
23
Consistent colour coding
Combine visuals and wording
Find people with customer knowledge
Trying to alleviate every pain and target every gain, but: select a limited set
Mixing present and future (distinguish through colours or different maps)
One map per value proposition
https://divergentthinking.design/04-value-proposition-design-workshop
Dos and Don‘ts for Value Proposition Canvas
Customer Jobs
Gains
PainsPain Reliever
Gain Creator
Products & Services
Value Proposition Customer Segment
25
FIT
How to create value for your customers?
Story“We visited a foreign town and tried to get a taxi. The situation couldn’t
have been more complicated: far and wide no taxi! Additionally we had any
telephone number of a taxi centre, little cash and no idea where they
exactly were.”Niclaus Mewes and Sven Külper
https://pl.mytaxi.com/en/ofertypracy2/about-mytaxi.html 26
27
- Functional job: mobilitywithin urban cities
- Your driver knows exactly where to go
- Payment is completely cashless
- One tap and a car comes directly to you
- Phone call to order taxi or looking for taxiranks on streets
- No reference for a taxi driver- Paying in cash
- Increased usability via smartphone app- Ease in customer journey: request – ride – pay- Convenience- Transparency
Story
28
- Functional job: mobility within urban cities
- Your driver knows exactly where to go
- Payment is completely cashless
- One tap and a car comes directly to you
- Phone call to order taxi or looking for taxi ranks on streets
- No reference for a taxi driver- Paying in cash
- Increased usability via smartphone app- Ease in customer journey: request – ride – pay - Convenience- Transparency
- Mobility within urban cities- Swift alternative to public
transport- Particular benefit when
visiting unknown cities - Mediate people being flexible
in offering driving services and people seeking flexible driving services
- Overcome challenge of customer being unfamiliar with local public transport in unkown city
- Improve request route for calling a cab- Avoid unpleasant taxi rides through
ranking system of drivers
- Easy access and usability via app - Interconnectedness with other payment apps such as PayPal - Fit between flexibility of (part-time) drivers not being bound
to one job and demand of further urban mobility offerings
Story
Can you specify what it takes to
shape great value propositions
for your customers?
29
HOW DOES YOUR VALUE PROPOSITION LOOK LIKE?
For (target customers)
• who are dissatisfied with (the current alternative)
• our product is a (new product)
• that provides (key problem-solving capability)
• unlike (the product alternative).
34
CUSTOMER SEGMENTFor whom are you creating value? Who are your most important customers? Who are the early adopters?
1
35
CUSTOMER PAINS/PROBLEMSBrainstorm to identify your customers’ problems and pains. What does your customer find too costly(time, money)? What makes your customer feel bad (frustrations)? What’s keeping your customerawake at night (big issues, concerns, worries)? What common mistakes does your customer make(usage mistakes)? What risks does your customer fear (financial, social, technical, change)? What arethe main challenges and difficulties your customer encounters (trouble understanding, getting thingsdone, resistance)?
2
36
VALUE PROPOSITION
Brainstorm on the value propositions. What value do you deliver to the customer? Which one
of your customers’ problems are you helping to solve? What bundles of products and services
are you offering to each customer segment? Which customer needs are you satisfying?
3
37
UNIQUE VALUE PROPOSITIONWrite a single, clear, compelling message that states why you are different and
worth paying attention to.
4
THANK YOU!
Innovation & Entrepreneurship
University of Innsbruck
Senior Research Associate | Hyve AG
Schellingstraße 45 | 80799 Munich
Laboratory for Innovation Science (LISH)
Crowd Innovation Lab | Harvard University
175 N. Harvard Street | Boston, MA 02134
Univ.-Prof. Dr. Katja Hutter
Innsbruck, September 2020
The Innovation Process and How to Measure It.
Input Process Output
-1Strategic Thinking
0Portfolio
Management +
Metrics
1Research
2Ideation
3Insight
4Targeting
5Innovation
Development
6Market
Development
7Sales
The Innovation Process and How to Measure ItInput, Process, and Output
Innovation Metrics, The Innovation Process and How to Measure It by Langdon Morris
Stage -1
The purpose of strategy, of course, is to help manage the growth process to achieve the optimal results.
Hence, the link between innovation and strategy is fundamental. It’s not possible to talk about innovation without talking about strategy, and vice versa. So it only makes sense that the innovation process should begin by thinking about what we want to get out of the overall innovation e�ort, which is strategic advantage in the marketplace.
The output of this specific stage is a set of goals and requirements, a model if you will, which details the types of innovation we want, the growth we are targeting through them, and the markets we ought to address. Of course, just because we say what we want doesn’t mean we’re going to get it, but we’re much more likely to get it if we we’re clear about what we want, and if we manage it and measure it along the way.
Strategic Thinking
Input
Stage -1 Input
Possible Metrics
Qualitative Metrics and Provocative Questions
Are we targeting the right parts of our business for innovation?Can we change as fast as our markets do?Are we flexible enough?Is our strategy clear enough that we can translate it into innovation initiatives?How well do our strategies match with the way the market is evolving? (For example, if the industry is moving rapidly into technology, does your organization have the requisite technology expertise?)Do we have an e�ective innovation dashboard?Are we measuring innovation adequately?
Quantitative Metrics
Time senior managers invest in innovationTime required from development of strategic concept to operational implementationMoney invested in innovation MetricsMoney invested in innovation of each typeGrowth expected from the innovation process, in percent, and in dollars
Stage 0
There’s an important concept about the management of innovation that is expressed in the portfolio concept, which is that we can’t expect to manage every individual innovation e� ort or project to become successful. However, we can manage a portfolio of innovation projects and expect satisfying results.
The same thinking process is behind the concept of a mutual fund, diversifying risk while o�ering good upside potential. It’s the same with venture capital funds, which are invested in portfolios of companies. A few of them are expected to do stunningly well, while more than a few will crash and burn. In both cases the portfolio manager is measured not by individual successes and failures, but by the success of the whole ensemble.
At this stage, there is a need to be explicit about how we expect and intend to measure the results, so that all the participants in the process know going forward what the goals are, how the portfolio is being constructed, and how their work and results will be eventually assessed.
Portfolio Management & Metrics
Input
Stage 0Possible Metrics
Qualitative Metrics and Provocative Questions
How does our portfolio compare with what we think our competitors may be planning?Do we have the right balance of incremental and breakthrough projects?Are we introducing breakthroughs at a su�cient rate to keep up with or ahead of change?What are our learning brands, the brands that we use to push the envelope to track the evolution of the market?Are we developing new brands at an adequate rate?Are our metrics evoking the innovation behaviors that we want from the people in our organization?Are our metrics aligned with our reward systems?
Quantitative Metrics
Ratio of capital invested in the early stages vs. return earned in sales stageActual portfolio composition in the sales stage compared with planned/ intended portfolio composition in the planning stage
Metrics:Expected metrics vs. actual performance achieved
Input
Stage 1Research strives both to expose unknown and unmet needs, and to develop new technologies that can meet those needs, through which we may uncover new market opportunities.
In fact, most ideas are not like snowflakes, falling from the sky. Rather, think of them as gold nuggets or diamonds, obtained through determined pursuit. While occasionally, a fortunate individual may notice one lying innocently in a stream, looking in random streams is not a genuine prospecting strategy. However, digging is, and research is definitely like digging.
The output of research should be solid knowledge converging from three poles of an innovation spectrum. From one pole comes technical means - the new technological possibilities that are embodied in new discoveries and developments, and methods. From another pole comes a clear understanding of user wants, needs, motivations, beliefs, and attitudes, focusing especially on new or previously hidden insights. From the third pole comes an understanding of how society and the market are evolving and creating the new white spaces in which new markets will develop
Research
Process
Stage 1Possible Metrics
Qualitative Metrics and Provocative Questions
How well do we understand the tacit dimensions of our customers’ experiences?How well do we understand the implication and applications of new technologies?How well do we understand the emerging future?How good have our past predictions been at anticipating change?Is our research helping to target the right innovation opportunities?
Quantitative Metrics
Number of customer groups we have examinedApplications of research results in new products, services, and processesBreadth of participation from our entire organization in the research process (broader is generally better)Time invested in researchMoney invested in research
Process
Stage 2
In our ideation sandbox we explore all the knowledge and discoveries that our research has exposed, thinking about what it might mean for existing and future products, services, processes, and business models. We engage with customers and non-customers to get their feedback on specific concepts. We engage with specialists from inside and outside the organization to help us model possible business structures, supply chain models, marketing concepts, financial projections, risk assessments, etc.
This sandbox is the realm of endless ‘what if...,’ the place where many players congregate, discuss, and explore together. It is brainstorming. It is tinkering. It is wondering. It is arguing, sometimes (in a good way).
In addition to formal and informal ideation activities that we may sponsor and manage, we also welcome ideas submitted from insiders and outsiders. People can participate through idea capturing web sites.
The output of Ideation is a concept that is then carried forward to further development.
Ideation
Process
Stage 2Possible Metrics
Qualitative Metrics and Provocative Questions
Do we have a broad enough range of models of technology possibilities, tacit knowledge models, and societal trends?How good are we at creating an open sandbox that can accommodate a tremendous range of possible concepts and ideas?Are we encouraging people su�ciently to share their ideas?
Quantitative Metrics
Number of ideas developedNumber of ideas contributed by our sta�Number of ideas introducedPercent of ideas from outsideNumber of people inside the organization who are participating in the ideation processNumber of people from outside the organization who are participating in the ideation processNumber of ideas collected in the ‘idea gathering’ systemNumber of collected ideas that were developed furtherNumber of collected ideas that were implemented
Process
Stage 3
Insight is the point of convergence where we transform ideas. It is the convergence of technological possibility, customer understanding, and market knowledge to create actionable insight about innovation opportunities. In pursuit of this convergence we experiment with myriad di �erent ways to fit them together.
It might be a long way from a research concept to a business idea to a genuine insight. To get from one to the other in this stage we explore all the elements that constitute a successful business initiative to answer the question, How can we turn our concepts into something that provides value to us, or that customers will buy?
Insight
Process
Stage 3Possible Metrics
Qualitative Metrics and Provocative Questions
Are we getting enough solid insight/concepts?Are the insights we’re developing CUT across a broad enough range of business ideas? (include cut)
Quantitative Metrics
Unsuccessful technology and customer mash-ups attemptedSuccessful technology and customer mash-ups achieved
Process
Stage 4The purpose of innovation is to enlarge the pie, so to speak, to create healthy growth for our business. There are always many di �erent ways to pursue that - we can make the existing pie larger, a process often called incremental innovation. We can also make a new pie, which might be a radical innovation. We can sell our pies in new ways, which can be called business model innovation. We can increase the rate at which we are selling our pies, which is e�ciency innovation.
Insights have been developed to a satisfying degree of robustness, such that we see their business potential, and now we have to decide which type of innovation they are. This choice will heavily influence the specific activities and processes that we will now use to develop them further. It certainly won’t work to perfect an incremental innovation in the same way you create a radical or new company.
The portfolio you developed in Stage 0 will come into play here, because the ensemble of ideas under development constitutes that portfolio, and over time you will see if you have the right mixture of small, medium, and big ideas.
The output of Targeting is a set of ideas that are under development. They are organized into four di �erent portfolios, one for each type of innovation.
Targeting
Process
Stage 4Possible Metrics
Qualitative Metrics and Provocative Questions
Is our innovation portfolio balanced correctly?Are we using the right management processes for the di�erent types of innovations that we are working on?
Quantitative Metrics
Percent of investment in non-core innovation projects.Total funds invested in non-core innovation projectsSenior management time invested in growth innovation
Process
Stage 5This is the stage where rapid prototyping leads to completed innovations.
In this stage you do everything that we all know is required to transform ideas into finished products. You engage in extensive engineering and lab testing, build prototypes, test assumptions, talk to customers again, this time with specific products, processes, and services in mind. You’ll also interact with potential customers and non-customers to see how they respond.
As you develop your innovations, you’ll build very detailed business models and write business plans. In summary, you do all the stu� that everyone knows you have to do to turn an idea into something of business value.
This is an entirely multi-disciplinary process that takes dedicated involvement from a wide range of people inside and outside the organization. Project Innovation Metrics - The Innovation Process and management skills are highly valuable here, as is the willingness to kill projects that are not going to be successful.
The output of Innovation Development is completed innovation, ready for market.
Innovation Development
Process
Stage 5Possible Metrics
Qualitative Metrics and Provocative Questions
Are the right people involved in the innovation process?Do we have enough failures to assure that we’re pushing the envelope su�ciently?
Quantitative Metrics
Prototyping speedNumber of prototypes per new productAverage time it takes to get from Stage 1 to Stage 5Number of patents applied forNumber of patents grantedPercent of ideas that are funded for developmentPercent of ideas that are killed
Process
Stage 6
Xerox provides us with a cautionary market development tale.
At the Xerox Palo Alto Research Center (PARC), a building full of very clever people, the first really usable personal computer was invented. It included a mouse, great windows interface, a laser printer, and Ethernet. This was back in 1973. Unfortunately, the PARC sta� was not able to communicate the significance of this monumental achievement to their senior managers across the country in Connecticut. As a result, Xerox management marketed the device as a terminal emulator for accessing the company’s timeshare mainframes. It didn’t work. So while we could think of Xerox as the PC pioneer, we instead think of Apple, Microsoft, and IBM. However, Xerox was there first; they just didn’t know where they were, and were not able to capitalize on their amazing accomplishment.
So what do our customers really want, and how do we get it to them in a way they understand? The output of Market Development is innovation that the market really wants, and the market that knows it.
Market Development
Output
Stage 6Possible Metrics
Qualitative Metrics and Provocative Questions
How well are we balancing our attempts to reach existing versus new customers?How well do we really understand our customers?Are we positioned properly for changes in the attitudes, beliefs, ideals, etc.of our customers?
Quantitative Metrics
Return on marketing investmentNumber of new customers addedGrowth rate of customer base
Output
Stage 7
Now we earn the financial return by successfully selling the new products and services. In the case of process improvement innovations directed internally, we now reap the benefit of increased e�ciency and productivity.
We improve our brand and build our reputation as customers appreciate and admire the value that we o� er. They tell their friends. We grow. We are pleased with our successes, and then tomorrow we have to do it again because our competitors are still after our market share
Selling
Output
Stage 7Possible Metrics
Qualitative Metrics and Provocative Questions
How well does our sales process match our customers’ needs?
Quantitative Metrics
Now we can talk meaningfully about ROI. Did our total innovation investment, managed through portfolios, yield appropriate results in terms of sales growth, profit growth, and overall ROI?Gross sales revenueGross sales marginExpected results compared with actual resultsPercent of projects are terminated at each stageSuccessful results per type of innovationCost savings achieved in the organization due to innovation e �ortsNumber of new customersPercent of sales from new products / servicesAverage age of products / servicesNumber of new products / services launched% of revenue in core categories from new products / services% of revenue in new categories from new products / servicesPercentage of profits from new products / servicesPercentage of new customers from new products / servicesTime to market from research through to salesCustomer satisfaction with new products / services
Output