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
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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
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Invention – Innovation – Renewal
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1. What is Innovation
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
1. What is Innovation
Invention
1. What is Innovation
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
1. What is Innovation
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
1. What is Innovation
Innovations
Innovation leads to a short period of monopoly and therefore to financial benefits (pioneer advantage)
1. What is Innovation
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
1. What is Innovation
Renewals
1. What is Innovation
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
1. What is Innovation
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Why Innovation
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1. What is Innovation
Source: Gleich et al.: Innovations-Controlling, 2011, p. 32
„Thanks to innovations we are able to significantly increase our profitability“
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Why Innovation ?
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1. What is Innovation
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!
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Agenda
1 What is Innovation
2 Corporate Culture as a Basis for Innovations
3 How do we Create Innovations
4 Innovation Controlling
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Management and Controlling of Innovation
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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
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General Conditions for Creativity and Innovations
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2. Corporate Culture as a Basis for Innovation
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.
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Innovation and Positive View of People
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2. Corporate Culture as a Basis for Innovation
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
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Promoting Innovation through “Good Leadership“
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2. Corporate Culture as a Basis for Innovation
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
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Good Leadership
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2. Corporate Culture as a Basis for Innovation
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.
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Further Innovation-promoting Aspects
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2. Corporate Culture as a Basis for Innovation
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
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Agenda
1 What is Innovation
2 Corporate Culture as a Basis for Innovation
3 How do we Create Innovations
4 Innovation Controlling
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Management and Controlling of Innovation
© Herwig Friedag 2011
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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Innovation-promoting Corporate Culture (2)
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3. How do we Create Innovations
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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Innovation-promoting Corporate Culture (3)
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3. How do we Create Innovations
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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Innovation-promoting Corporate Culture (4)
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3. How do we Create Innovations
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
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Positive Approach to Mistakes as a Part of Corporate Culture
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3. How do we Create Innovations
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.
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Positive Approach to Mistakes as a Part of Corporate Culture
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3. How do we Create Innovations
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
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Agenda
1 What is Innovation
2 Corporate Culture as Basis for Innovation
3 How do we Create Innovations
4 Innovation Controlling
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Management and Controlling of Innovation
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Innovation Phases to be Considered
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4. Innovation-controlling
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Controlling in All Innovation Phases
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4. Innovation-controlling
Quelle: ControllingWiki
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Controlling does not stop innovation
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4. Innovation-controlling
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
© Herwig Friedag 2011
Example
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Controlling in All Innovation Phases
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4. Innovation-controlling
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
© Herwig Friedag 2011
Innovation Management
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Conclusion: Innovation
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4. Innovation-controlling
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