04 enkel key note_day 1_ecc2012
- 1. How to boost innovation of an economic region ? Prof. Dr. Ellen Enkel Head of Dr. Manfred Bischoff Institut of EADS Chair of Innovation Management Zeppelin University Editor of the R&D Management Journal
- 2. Prof. Dr. phil Ellen Enkel • Head of the Dr. Manfred Bischof Institute of Innovation Management of EADS and Chair of Innovation Management at Zeppelin University, Friedrichshafen • Editor of the R&D Management Journal, R&D Management publishes articles which address the interests of both practicing managers and academic researchers in R&D and innovation management. • Research focus: Open und Cross-Industry Innovation, Networks, Innovation Culture, Communication und Controlling. European Commission Enterprise and Industry 2
- 3. Agenda • How do innovative companies act today? – Innovate in a system of experts inside and outside – Cooperation for innovation and efficiency • Which are current trends in innovation management? – Closer integration of partner and the crowd – Integration of analogue solutions for disruptive innovation • Discussion: How to boost innovation of an economic region? European Commission Enterprise and Industry 3
- 4. How do innovative companies act today? THE OPEN INNOVATION ERA 4
- 5. Todays Corporate reality Decreasing research and development budgets Shorter innovation cycles Increasing employees’ mobility Merging of technologies Multiplicity of new business models, new corporations, new opportunities and risks Opening up the innovation process (Open Innovation) European Commission Enterprise and Industry 4/25/2012 5
- 6. Open Innovation in practice I Innovation Jam (2006) 2005: Reorganization of the research and development biggest Online-Brainstorming structure through implementation worldwide of the Connect & Develop strategy 150.000 people| Emphasizing on opening the 72 hours| innovation process for external over 46‘000 ideas sources and strong engagement in IBM invests 100 Mio $ networks in further development and Open Innovation projects (external implementation of the best input of more than 50%) achieve ideas 70% higher Net Present Value than internal projects. European Commission Enterprise and Industry 4/25/2012 6
- 7. Open Innovation in practice II „We borrow with Pride“ Regular cross-industry networks to future-orientated topics (Future Network with 500.000 Logistic, Future Living etc.) with external inventors other industries (e.g. HochTief, Investments in customer Geberit, Schindler, Hilti) integration, min. of 500 customer Development of a multi- visits per year perspectives future scenario Verifiably more radical innovations realized through the systematic cross-industry approach European Commission Enterprise and Industry 4/25/2012 7
- 8. DOES OPEN INNOVATION INFLUENCE COMPANY PERFORMANCE? Broad usage of sources Intensity of the cooperation Source: Laursen, K. & Salter, A. (2006). Open for innovation: the role of openness in explaining innovation performance among U.K. manufacturing firms. Strategic Management Journal, 27, 131–150. European Commission Enterprise and Industry 4/25/2012 8
- 9. Opening up the innovation process means trading knowledge and growing markets for knowledgeBoundaries of the company Outside-in Process External knowledge Locus of innovation within the Inside-out corporation Process Commercialization outside of the company Coupled Process Joint Innovation and commercialization European Commission Enterprise and Industry 4/25/2012 9
- 10. Why do companies conduct Open Innovation? Targeted objectives are key Erhöhung der Produktqualität Increase productivity Reduktion der Entwicklungszeit Reduce development time Efficiency oriented Reduce costs Kostenreduktion Erschließung neuer Absatzmärkte Exploit new markets Steigerung oder Erhalt des Marktanteils Increase or maintain market Innovation share oriented Ausweitung Produkt-/ Servicepalette Enlarge product/service offering 0% 10% 20% 30% 40% 50% 60% European Commission Enterprise and Industry Source: Open Innovation Survey 2011
- 11. When do companies need to cooperate? Organize technology management according to the strategic positioning and the relative level of competence TL Tendentially Cooperation: Preference of Internal development: | Integration of missing competences & acquisition of strategic relevant | Control of key technologies technologies and phases of value creation, Strategic Positioning | Cooperation with start-ups, augment own competences universities, research institutions, further external experts Tendentially External sourcing: | Acquisition of know-how, external procurement of Tendentially Cooperation: technologies & technological services (from own and/or | Mutual exploitation and foreign industries, cross- FF outsourcing of technologies industry) LOW HIGH Relative level of competence in this technological field TL = Technological Leader FF = Fast Follower European Commission Enterprise and Industry Source: Gerybadze (2004)
- 12. COMPARISON OF OPEN INNOVATION ACTIVITIES IN 2010 AND 2011 Customer integration Supplier integration Lead User integration Cross Industry Innovation Web ideas generation & solution platforms Creativity workshops with external Acquisition of knowledge throughparties M&As Knowledge networks Commercialization supported by other companies Spin-offs and corporate ventures Provision of contract research results to externals Systematic search for new marekts Off-licensing of products and/or services Joint development (JD) projects with customers JD projects with suppliers JD projects with universities etc. JD projects with own industry partners JD with companies of foreign industry New co-operative business models European Commission Enterprise and Industry Source: Open Innovation Survey 2011
- 13. Who are the most important source for innovation? 3.5 3 2.5 2 1.5 1 0.5 0 Customers Patent Scientific CompetitorsTechnical Suppliers Universities and Users Literature Literature Conferences Research Survey study with 9017 innovators in Europe (scale from 1 (less important) - 5 (most important) Source: Giuri und Mariani 2005: Everything you wanted to know about innovators , by LEM Sant Anna in Pisa, Working Paper European Commission Enterprise and Industry 4/25/2012 13
- 14. WHERE IS THE KNOWLEDGE COMMING FROM? “People we don´t “Knowledge we have” “People we know” know” Is your cluster adequately connecting people in order to exchange knowledge? Does everybody knows where the other might be able to help? How do you provide your cluster with new knowledge? Employees Customers Investors Public COMPANY COMMUNITY CROWD European Commission Enterprise and Industry 4/25/2012 14
- 15. The crowd´s pool of knowledge IdeaConnection YourEncore NineSigma Innocentive Yet2.com Example Initiatives R&D Solution Innovaro Hypios RedesignMe Platforms 99designs Marketing & iBridge Network HumanGrid Design Ideas Campaign Amazon Mechanical Turk Galaxy Zoo Freelancer Chaordix Fold It Public Intermedia- Idea Crossing Ideation initiatives tes Innovation Exchange Platforms Apache Is your cluster a pool of knowledge or only the random location of some companies? Software Market- Firefox internet Joint free Is your cluster better than theCrowd in connecting knowledge? Linux Zazzle places for solution JuJups idea owners finding Wikipedia Spreadshirt CrowdSpirit Dream Heels Hardware Openstreetmap Corporate Initiatives Yahoo Answers Produrct Ideation Branding & & -Solutions Design BMW Via Lego Factory Ideas4Unilever Electrolux Design Lab Source: adapted from IBM Innovation Jam Osram LED-Emotionalize Gassmann (2010) European Commission Enterprise and Industry 4/25/2012 15
- 16. How to do this? How to connect to the best knowledge of the world? • Big enterprises with well known brands in B2C markets have a key advantage in open innovation but are often captured in their bounded rational (e.g. internal bureaucracy in sales departments or NDA) • SMEs have learned to cooperate in order to compete but economy of scale hinders them to invest a lot of resources to identify and launch new partnerships or get in touch with international companies • Clusters are key instruments to support emerging industries and to facilitate SME-internationalization • Some successful practices how to enhance connectivity of cluster members „European Cluster Excellence Initiative„ and „Cluster Collaboration Platform" European Commission 16 Enterprise and Industry
- 17. Benchmarking of Clusters: Dimensions and Indicators Dimensions Indicators Cluster management and governance • Age of the cluster • International working experience • Focus areas of the cluster • Continuity of cluster management • Nature of the cluster • Involvement of key actors in strategy development • Composition of the cluster and implementation • Value chain covered by the cluster • Elements of the strategy development and • Regional concentration of the cluster members implementation process • Utilization of regional potential • Content of the strategy • International cluster members • Services and activities of the cluster management • Legal form of the cluster management • Sources of financing when cluster was established • Membership development • Sources of financing today • Cooperation between cluster members • Annual budget Structure of the cluster • Development of financing • Assignment of tasks/clarity of role definitions Financing • Number of cluster management staff • Sustainability of financing • Role of cluster management • Visibility of the cluster • Human resource development • Collaboration with other clusters • Impact on R&D activities of cluster members • Impact on business activities of cluster members Achievements and recognition • Internationalization of cluster members European Commission Enterprise and Industry 17
- 18. European Commission Enterprise and Industry 18
- 19. Trends – Where is the journey headed? • Search for new knowledge outside of the own value chain to identify existing solutions and copy successful business models European Commission Enterprise and Industry 4/25/2012 19
- 20. Idea of Cross Industry Innovation • More than 80% of all innovation are recombination of existing knowledge (Schumpeter 1937) • Within the own company and within the value chain (including customer and supplier) companies have already recombined more or less your cluster fosterasset through integration and Does every knowledge cross-industry innovation cooperation or is it too industry focused? • Only a recombination of knowledge outside of the common sources can grant competitive advantage through disruptive innovation with low development risk (existing successful solution already exist in other industry) • Imitation can be used to create new products, services, processes and even business models (more than 50% of the entrepreneurs imitate parts of their business models) European Commission 20 Enterprise and Industry
- 21. Key Take Away SUMMARY & DISCUSSION 21
- 22. How to foster the innovativness of a region? • Companies need to open up and cooperate in order to survive and be successful! Companies are an "Innovations Development System“ which need to use all available resources – Hence: A region need to foster connectivity of its companies and illustrate their knowledge • Companies are “linked units of experts” inside and outside the cooperation or cluster and inside and outside their core industry – Hence: A region need to foster connectivity of its companies inside and outside their core industries and towards other regions • Companies are acting in changing environments with new opportunities arising from new technologies, new business models, new competencies, new employee profiles and new actors in their front yard – Hence: A region need to enable its companies to prepare for change and to leverage new opportunities – “Chance only favours the prepared mind” Pasteur European Commission Enterprise and Industry 22
- 23. Contact information Prof. Dr. phil Ellen Enkel Zeppelin University Dr. Manfred Bischoff Institute of Innovation Management of EADS Chair of Innovation Management Am Seemooser Horn 20 D-88045 Friedrichshafen | Bodensee Tel. +49 7541 6009- 1281 E-Mail: ellen.enkel@zeppelin-university.de Home: www.zeppelin-university.de European Commission Enterprise and Industry
- 24. Back up European Commission Enterprise and Industry 24