Drivers of Innovation for Business Excellence Tools and Practices for implementing successful innovation

Transcription

1 Drivers of Innovation for Business Excellence Tools and Practices for implementing successful innovation Driving Competitiveness Delivering Growth and Sustainable Jobs 29 th May 2013 Dublin Castle, Ireland Dr.-Ing. Holger Kohl Director Corporate Management Fraunhofer Institute Production Systems and Design Technology

2 Agenda 1 The Fraunhofer-Gesellschaft 2 Innovation and its Drivers 3 Rules for Successful Innovation 4 Intellectual Capital and Benchmarking

3 The Fraunhofer-Gesellschaft The Fraunhofer-Gesellschaft is the leading organization for applied science in Europe. It strives for application-oriented research regarding the direct benefit for enterprises as well as for the advantage of society more than 80 research facilities, including 60 Fraunhofer-Institutes The majority of more than 22,000 staff are qualified scientists and engineers Euro 2,0 billion annual research budget, including Euro 1,5 billion contract research. 70% are contributed by industrial contracts and publicly financed projects. 30% basic funding of the Federal and Länder Government. Research centers and representative offices in Europe, USA, Asia and in the Middle East

4 From a small association to the leading organization for applied research in Europe Number of institutes Staff Budget in (millions) ,

5 Fraunhofer Worldwide Gothenburg East Lansing San José Plymouth London Boston Cambridge Newark Maryland Brussels Wrocław Paris Vienna Budapest Bolzano Graz Porto Thessaloniki Cairo Dubai Beijing Seoul Tokyo Bangalore Selangor Singapore Jakarta Piracicaba Santiago de Chile Sydney Fraunhofer Subsidiary Center Project Center / Strategic Cooperation Representative Office Senior Advisor

6 Fraunhofer IPK, Berlin Itzehoe Lübeck Rostock Bremerhaven Oldenburg Bremen Corporate Management Management of Intellectual Capital Management of Innovation Systems Benchmarking Balanced Scorecard Corporate Planning and Logistics Knowledge Management Process Management Hannover Braunschweig Oberhausen Paderborn Halle Dortmund Schkopau Duisburg Kassel Schmallenberg St. Augustin Erfurt Jena Aachen Euskirchen Gießen Wachtberg Ilmenau Potsdam Magdeburg Berlin Teltow Leipzig Dresden Freiberg Chemnitz Darmstadt Würzburg Bayreuth Erlangen Bronnbach St. Ingbert Kaiserslautern Fürth Nürnberg Saarbrücken Karlsruhe Pfinztal Ettlingen Stuttgart Straubing Freising Freiburg Augsburg Garching München Oberpfaffenhofen Holzen Prien Efringen- Holzkirchen Kirchen Cottbus

7 Development of Economy - Innovation System National Wealth Innovation World standard products Competitive production processes Intellectual Capital Human Capital Use technology Structural Capital Manage technology Relational Capital Communicate technology Benchmarking Intellectual Capital Statements

9 Then and now Genesis of Innovation Activities Partial and gradual Innovations Regionally restricted Based on laws of nature Innovations by Individuals Conversion to science towards civil enlightenment Market-oriented Innovations Interconnected multi-layer interplay of market participants Complexity of innovations induces international collaborations Antiquity Middle Ages Present

10 Characteristics of successful Innovators A Clear Strategy The Best Team and Work Environment The Unrelenting Will to Succeed Ongoing Quality Control and Result Monitoring

12 Innovation for Driving Competitiveness Which are the most significant factors for growth and profitability increase? Source: Arthur D. Little; Innovation Excellence Study, Low Entrepreneurial Relevance High

13 Structured Processes to identify new Markets Perspectives for future Markets Fraunhofer Frontline Themes Markets of the future Global Megatrends Grand societal challenges Foresight analysis and trend studies Survey of 170 Topics among Executives Technological solutions 50 Technology Trends Ranking of Topics Mapping with Fh- Competence Workshop >50 Experts 25 Focus- Topics Fraunhofer internal call Market Perspectives Frontline Themes Future Markets -13-

14 5 Future Markets Climate / Energy Sustainable Cities Intelligent transformation of energy supply Health Mobility Safety Communication Individualized Healthcare Self-determined life in seniority Prevention of avoidable common diseases Electromobility Affordable CO 2 -optimized mobility Smart-mobility - connection transportation Safe Cloud made in Germany Secure Identities Embedded Security in Embedded Systems Internet of the Future, Green IT & IT for Green Digital Knowledge Society based on acceptance and participation

15 >>Valley of Death<< of Innovation as a challenge for innovation systems Core Activities Basic Research and Invention Prototypes, Demonstration and Market Analysis Early Commercialization Market Entry and Growth Availability of Capital >>Valley of Death<< Typical Investors Government Enterprises and founding investors Venture Capitalists Creditors and investors

16 >>Valley of Death<< of Innovation as a challenge for innovation systems Core Activities Basic Research and Invention Prototypes, Demonstration and Market Analysis Early Commercialization Market Entry and Growth Availability of Capital Fraunhofer 4D Typical Investors Government Fraunhofer, Enterprises and founding investors Venture Capitalists Creditors and investors

17 Overcoming the >>Valley of Death<< of Innovation High-Level Expert Group on Key Enabling Technologies recommends Advancement and Stimulation of: 1. Technological Research (RTOs) 2. Lab-Fabs (small production lines - prototype cells) 3. Globally Competitive Fabs 4. Planned Buy-Out Core Activities Availability of Capital Typical Investors Basic Research and Invention Government Prototypes, Demonstration and Merket Analysis Fraunhofer 4D Fraunhofer, Enterprises and founding investors Early Commercialization Venture Capitalists Market Entry and Growth Creditors and investors Characteristics of the Fraunhofer 4D Advancement Process: Applied, technological Research and product-oriented development Demonstrators and Production Processes from Pilot-Plants under real-life conditions (Lab-Fabs) Competitive Pilot-Production high-volume production (Global-Fabs) Pre-Planned Buy-Out

19 Why Measuring Intellectual Capital (IC)? The organizational value consists of tangible and intangible assets, which are mostly undocumented in traditional accounting systems Investors (Rating according to Basel II) demand plausible evidence of corporate values. Companies in knowledgeintensive fields have difficulties in proving their value to investors. Legal regulations commit organisations to legitimate their intangible assets. (Austrian UOG, IAS 38, DRS 12 and 5) Would you have invested? Microsoft Corporation 1978 Fraunhofer IPK, Berlin

20 National IC Report: Average Impact of Intellectual Capital on Business Success Human Capital 8,1 Structural Capital 7,1 Relational Capital 6,3 Tangible Resources 5, Source: Survey Results Knowledge Economy Germany, Fraunhofer IPK 2010 (N=1.000)

21 What is an Intellectual Capital Statement? D An Intellectual Capital Statement is an instrument for the focused description and development of the Intellectual Capital in an organisation. Intellectual capital (IC) is defined as existing knowledge of an organisation that contributes to future success and is subdivided into three categories: Human Capital (HC), e.g. qualification, leadership, motivation Structural Capital (SC), e.g. innovation, knowledge transfer Relational Capital (RC), e.g. relations to customers, partners Fraunhofer IPK, Berlin

22 Intellectual Capital Statements (ICS) - Toolbox

23 Impact of ICS on Financial Analysts Assessment of Future Earning Potential Case A Case B 100% 90% Negative Negative Neutral Neutral 80% 70% 60% 50% 40% 30% Neutral 20% 10% Positive Neutral Positive Positive 0% Without intellectual capital report With intellectual capital report Without intellectual capital report With intellectual capital report Source: Alwert; Bornemann; Will: Does intellectual capital reporting matter to financial analysts? in Journal of Intellectual Capital, Vol. 10 No. 3, 2009.

24 Main Results of the German ICS Pilot Project Efficient method to start IC Management in SMEs. Guideline for ICS implementation in German and English language published, more than copies distributed. Software Wissensbilanz-Toolbox available since July 2006, more than copies distributed. Financial Times and Commerzbank Award 2005 for one of the first 14 Pilot-SME 40 Roadshows for entrepreneurs with more than participants. More than 300 users and trainers trained Fraunhofer IPK, Berlin

25 Common Definition of Benchmarking Benchmarking is a systematic and continuous process, where the own performance is measured and compared with Best Practices in order to identify improvement potential. Benchmark Potential for = improvement Performance Best Practices Participant 1 Best Practice P 2 P 3 P 4 Fraunhofer IPK, Berlin

26 Top 10 Management Trends and Practices Mission and Vision Statements 1. Strategic Planning 1. Strategic Planning 1. Benchmarking 1. Benchmarking 2. Customer Satisfaction 2. Mission and Vision Statements 3. TQM 3. Benchmarking 2. CRM 2. Strategic Planning 2. Strategic Planning 3. Customer Segmentation 3. Mission and Vision Statements 3. Mission and Vision Statements 4. Competitor Profiling 4. Outsourcing 4. Benchmarking 4. CRM 4. CRM 5. Benchmarking 5. Customer Satisfaction 5. Mission and Vision Statements 5. Outsourcing 5. Outsourcing 6. Pay-for-Performance 6. Growth Strategies 6. Core Competencies 6. Balanced Scorecard 6. Balanced Scorecard 7. Reengineering 7. Pay-for-Performance 7. Outsourcing 7. Customer Segmentation 7. Core Competencies 8. Strategic Alliances 8. Strategic Alliances 8. Business Process Reengineering 8. Business Process Reengineering 8. Change Management Programs 9. Cycle Time Reduction 9. Customer Segmentation 9. Scenario and Contingency Planning 9. Core Competencies 9. Strategic Alliances 10. Self-Directed Teams 10. Core Compentecies 10. Knowledge Management 10. Mergers and Acquisitions 10. Customer Segmentation Source: Bain & Company - Management Tools and Trends 2011 Fraunhofer IPK, Berlin

27 Productivity problems in SME s in Germany Main productivity-obstruction in Germany 74% Classical management errors - 45% Poor planning and control - 17% Lack of supervision and leadership - 12% Lack of communication As well as - Lack of qualifications - IT Problems - Lack of working morale Source: Czipin & Proudfoot Consulting GmbH The value creation in germany s SME s can be increased by 200 billion! Fraunhofer IPK, Berlin

28 Current Distribution of the BenchmarkIndex Ireland UK Netherlands Germany Poland Czech Republic USA Slovak Republic Lithuania Current Candidates : - Russia -Brazil -Croatia - Saudi Arabia - Kuwait -Bahrain Austria > Financial Data Portugal > Benchmarking-Data Spain Italy BiH Greece United Arabic Emirates South-Africa Australia South-Korea China - Beijing Malaysia Singapore Fraunhofer IPK, Berlin

29 Causes-Effects-Relationship for measure Total Turnover Grows Financial Perspective Total Turnover Growth [%] Customer Perspective Customer Growth [%] Sales on new Products and Services [%] Causes Effects Learning & Growth Perspective New Products and Services [%] R & D Expenditures [%] Process Perspective Product to Market [Months] Fraunhofer IPK, Berlin

30 BenchmarkIndex Results - Graphic Fraunhofer IPK, Berlin

31 Concept for an Enterprise Support Center Development Center for Competitiveness & Innovation Strategic Cluster Development Innovation Support Performance Analysis Best Practice Transfer Best Practice Award Funding Systems for SMEs Export Support Engineering R&D Services Process Optimization Management Systems BMI Strategic Planning Innovation Audit Cluster Monitoring Visiting Program in selected areas QM HRM Market Analysis Performance Management Advisory Board Auditors Factory / Cluster BMI Data for Best Factory Award System Annual Ceremony TOP 20 Enterprises Integration in international clusters Direct support for Integration of Strategic SMEs International R&D Programs Quality Requirements Packaging Legal Issues Tariffs Matchmaking with strategic industry clusters Assessment Tool for funding applications Consultant Register (external and internal) Fraunhofer IPK, Berlin

32 Drivers of Innovation for Business Excellence Tools and Practices for implementing successful innovation Driving Competitiveness Delivering Growth and Sustainable Jobs 29 th May 2013 Dublin Castle, Ireland Dr.-Ing. Holger Kohl Director Corporate Management Fraunhofer Institute Production Systems and Design Technology