Innovation (Frank Piller)

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1 Innovation (Frank Piller)

2 5 Source: Wikipedia Media Commons (CC BY-SA) 5

3 6 A typical tale of innovation In the early 1950s, Ruth Handler observed her daughter Barbara playing with dolls. She realized that the girl was giving her dolls "adult roles" and had the insight of a doll in form of an adult woman. Her husband, an executive at the Mattel Toy company, however discarded the idea. During a vacation in Switzerland, in 1956, Ruth Handler saw a figure sold by the German tabloid BILD as a toy for men, he "Bild Lilli". Without any knowledge of the sexist context, Ruth realized this doll as the perfect prototype of her earlier idea and brought it back home. Her husband realized the joy his daughter had with this toy, and introduced it to his colleagues. A year later, the first Barbie doll was launched to the market.

4 7 The story of Barbie reminds us of some key characteristics of innovation: Role of outsiders as the source of innovation (innovative users play a central role) The need for being open and un-biased (Often) not the result of a strategic planning process A lot of resistance The power of working with prototypes So much coincidence & luck Innovation Management: Making this a structured, systematic, and repeatable process 7

5 8 Our ideas about managing innovation have changed at lot within the last century

6 1.0 The Individual Inventor 2.0 The Corporate R&D Lab 3.0 The VC-financed Venture 4.0 The Open Orchestrator 12

7 15

8 16 Quirky Update10/31/12

9 17

10 18 GE using Quirky: A new idea to solve one of the most fundamental challenges in an established company

11 "I' am happy to give you innovative thinking. What are the guidelines?" 19

12 Exploitation Exploration 20

13 Exploitation Exploration 22

14 Balancing two distinct processes and activities at the same time: The Innovation Challenge

15 24 How we think about something... shapes the way we manage it. 24

16 25

17 26 How we think about something... shapes the way we manage it. 26

18 27 Industrie 4.0

19 28 Industrie 4.0 : The physical and the digital world are merging

20 30 Idea of exponential growth in the computing power of machines, in the amount of digital information that is being created and in the number of relatively cheap devices that are continually talking to each other. Moore s law When these numbers doubled every year or two in the early days of the computer revolution, the results, while impressive, were still within our ability to imagine. Power law But now that the numbers are so staggeringly large, [so] that machines can finally do things once considered possible only in the realm of science fiction. The 2nd half of the chessboard

21 32 We are entering the age of second half technologies

22 36 Weak signals for Second half technologies Google self driving car IBM Watson Adaptive machines 4.4 trillion photos taken since invention of that technology (1838), 0.9 trillion of those in 2014 Kodak hat 145,300 employees -> 132 years Instagram: 15 employees -> 15 months -> $1billion -> Facebook: 4600 employees TED talk of father filming his new born very minute of first four months -> account of talking first time ( water ) 6 Terrabyte data -> into great 2 min Ted Video

23 37 Industrie 4.0: Jobs of the customer Business Model Innovation Experimentation

24 38 What s next?

25 42

26 47 47

27 48 Example Modularity: Phoneblocks.com 48

28 49 And for some real products?

29 51 One startup to watch

30 52 A full electric vehicle for less than 6000 (well, 17600)

31 years from idea to market launch for less than 1/10 of the conventional development cost

32 54 The core success factor behind Street Scooter is RWTH s capability to facilitate and manage large open value networks

33 55 One grown-up to watch

34 57

35 58 Orchestrating an innovation value chain 58

36 61

37 62 youtube.com/watch?v=zgsqwsfm2qu

38 63

39 65 How to utilize the huge cognitive surplus available outside our organizations

40 66 A new innovation landscape is coming up + Open innovation in distributed infrastructures with unbiased outsiders beyond technology scouting and acquisition + Orchestrating an eco-system + Industrie 4.0 demands a systematic business model innovation process + Understanding the jobs of customers + Balancing exploration and exploitation: the main innovation challenge + Stay open and be aware of your assumptions

41 67 Fröhliches innovieren

42 TIME Research Area Technology & Innovation Management Group (TIM) About Us RWTH-TIM's new (shared) building in Kackertstraße 7, Aachen Technology & Innovation Management Group time.rwth-aachen.de/tim 69

43 TIME Research Area Technology & Innovation Management Group (TIM) Willkommen an der Research Area TIME Technology & Innovation Management Group time.rwth-aachen.de/tim 70

44 TIME Research Area Technology & Innovation Management Group (TIM) Die Research Area TIME Gegründet 2012 als Zusammenschluss von 6 Lehrstühlen der RWTH Aachen School of Business & Economics Gemeinsames Forschungsziel: Verständnis grundlegender betriebswirtschaftlicher Aspekte der Konzeption, Entwicklung und Vermarktung technologischer Innovationen 6 Professoren, 8 Assistenzprofessoren, 70+ Doktoranden und viele studentische Forscher Publikation der Forschungsergebnisse in weltweit führenden Fachzeitschriften Starker Fokus auf interdisziplinäre und anwendungsorientierte Forschungsprojekte Vielfältige Interaktionsformate mit der Praxis Großes Engagement in der Executive Education Technology & Innovation Management Group time.rwth-aachen.de/tim 71

45 TIME Research Area Technology & Innovation Management Group (TIM) RWTH-TIM: The RWTH Technology & Innovation Group is part of the TIME Research Area at RWTH s School of Business & Economics tim.rwth-aachen.de Technology & Innovation Management Group time.rwth-aachen.de/tim 72

46 TIME Research Area Technology & Innovation Management Group (TIM) At RWTH TIM, we are dedicated to innovative research and teaching, but grounded in the real world of management practice Established in 1990 as one of the first dedicated chairs in technology & innovation management in Europe Part of RWTH's School of Business & Economics, with strong links to the RWTH Engineering Schools, but also Information Systems, Psychology, Dedicated to research, but excellent in participant-centered learning on graduate student and executive education level. Ranked in top3 in school's ranking w/r to research output (publications), and #1 w/r to external funding. Awarded "RWTH Price for Teaching Excellence 2009/2010". Interdisciplinary team of about 20 full time positions for researchers plus about many support positions and student researchers 70% of annual research budget funded by competitive, peer-reviewed research contracts and grants ("forschungsorient. Drittmittel") from DFG, EU, BMBF, BMWI, AIF Strong industry partnerships, strong believe in engaged scholarship with both rigor and relevance for management practice (via direct, research-focused cooperation, contract research, and the RWTH-TIM Expert Circle of Innovation Professionals) Several spin-off and affiliated companies in both high-tech and professional services Technology & Innovation Management Group time.rwth-aachen.de/tim 73

47 TIME Research Area Technology & Innovation Management Group (TIM) Our research focuses on innovation interfaces, disruptive business model innovation, and internal structures, processes, and believes for successful innovation Customer Co-Creation: Integration of customers and users in innovation process. Focus on ideation contests (Crowdsourcing), innovation communities, lead user method Open Innovation: Approaches like tournament-based crowdsourcing or broadcast search to increase the productivity of R&D by external search Personalization and Mass Customization: Business models to profit from heterogeneities in the customer domain by offering personalized products and services Economics of Additive Manufacturing & Open Hardware: Creating economic value through 3D- Printing, Distributed Digital Manufacturing, Open Hardware, and open design infrastructures Business Model Innovation and Disruptive Innovation: Structures, processes, and organizational implementation of a process for corporate business model innovation Technology & knowledge transfer : Absorptive capacity, managing ambidexterity, and preventing not invented here (NIH) Modeling the contingencies of the innovation process: Database of 300 methods for the innovation process and matching tool to corporate challenges of managing innovation Managing the R&D-production interface (ramp-up): Connecting the new product development process with scaling up the manufacturing system Technology & Innovation Management Group time.rwth-aachen.de/tim 74

48 TIME Research Area Technology & Innovation Management Group (TIM) Recent Awards and Recognitions for RWTH TIM Alexandra Gatzweiler, Vera Blazevic and Frank Piller have been the joint winners of the 2012 PDMA research competition and the DL Wilemon Research Award for their work on deviant user behavior in ideation contests. PDMA is the largest global association for product/ service development and management professionals. RWTH TIM has been nominated as a finalist for the Innovating innovation challenge 2013 by Harvard Business Review and McKinsey for our work on open innovation readiness and internal structures supporting crowdsourcing. The ideation contest Stilsicher:unterwegs, a co-creation initiative targeting senior citizens to develop better mobility solutions for seniors via a web-based ideation contest, was the only winner in the non-profit innovation category of the 2012 Co-Creation Awards. This ideation contest was part of our project OpenISA, funded by the ESF within the NRW Ziel.2 program. Technology & Innovation Management Group time.rwth-aachen.de/tim 75

49 TIME Research Area Technology & Innovation Management Group (TIM) Head of RWTH-TIM: Prof. Frank T. Piller Head of the RWTH Technology & Innovation Management Group, and full professor of management at RWTH Aachen (2007- ) Academic Director of the RWTH Executive MBA, joint program of RWTH Aachen & Fraunhofer Academy (2012-) Co-Founder and Co-Director of the MIT Smart Customization Group, MIT Media Lab, Massachusetts Institute of Technology, Cambridge, MA (2007-) Research Fellowship at the MIT Sloan School of Management, Innovation Management Group, Mass. Institute of Technology, Cambridge, MA ( ) Assistant / Associate Professor in Management and Habilitation on Customer Co-Creation at TUM Business School, Munich ( ) Ph.D. in Operations Management with focus on Mass Customization, University of Wuerzburg ( ) Co-Founder, Investor, or Member of Board of Directors of several companies, including Competivation (innovation consultancy) ThinkConsult (process management and concept testing), MVM.com (personalization and virtual models), Hyve AG (customer co-creation), Dialego AG (innovative online market research), Corpus-e AG (low-cost high-quality body scanning devices), DOOB AG (3D printing) Real life achievements: Only German professor in Top50 Profs on Twitter List 2013 & 2014 ; Kloutscore >60; Google Scholar Citations >7200 Technology & Innovation Management Group time.rwth-aachen.de/tim 76

50 TIME Research Area Technology & Innovation Management Group (TIM) RWTH Zertifikatskurs für Führungskräfte: Business Model Innovation 5 Tage in zwei Teilen, plus unternehmensbezogene Projektarbeit Dieser Kurs ist auch als individueller Inhouse-Kurs zu flexiblen Terminen möglich! Zertifikatskurs Business Modell Innovation Nächster Durchgang in 2 Teilen: Okt und Nov bmi.rwth-aachen.de Technology & Innovation Management Group time.rwth-aachen.de/tim 77

51 TIME Research Area Technology & Innovation Management Group (TIM) Ein internationaler berufsbegleitender Studiengang an der RWTH Aachen und Univ. St. Gallen mit Fokus auf Innovation, Technologie und Leadership Start des 12. Durchgangs im Sept Studienleitung: Prof. Dr. Frank T. Piller emba.rwth-aachen.de Technology & Innovation Management Group time.rwth-aachen.de/tim 78

52 TIME Research Area Technology & Innovation Management Group (TIM) Unsere Plattform zur langfristigen Zusammenarbeit: Das Invention Center an der RWTH Aachen Technology & Innovation Management Group time.rwth-aachen.de/tim 79

53 TIME Research Area Technology & Innovation Management Group (TIM) Kontakt und Einladung zum weiteren Dialog Frank T. Piller, Prof. Dr. Head, RWTH Technology & Innovation Management Group School of Business & Economics. RWTH Aachen University Research Area Technology, Innovation, Marketing & Entrepreneurship Kackertstrasse Aachen (Skype, Twitter, Facebook) time.rwth-aachen.de/tim open-innovation.com Assistenz: Monika Heer, +49 (0) Business Development und Unternehmenskooperationen: Christian Gülpen +49 (0) Technology & Innovation Management Group time.rwth-aachen.de/tim 80

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