D-MTEC, Chair of Technology and Innovation Management Innovationsmanagement in der Industrie 14. April 2010 Zürich Prof. Dr. Roman Boutellier Vizepräsident für Personal & Ressourcen R. Boutellier 32154e 50’000 B.C. 15’000 hours 2000 A.C. 150’000 hours Life time work: Life time work The more you innovate the more you have to work! 50‘000 BC 1200 1400 1600 1800 1900 2000 More and more Innovation R. Boutellier 32155e Coca-Cola: Small innovation, big impact? • Coca Cola always in 1st place in fridge • Less space for other beverages • More sales R. Boutellier 30725e Innovation = Trial and Error ( < 30% survive first year) 204 Coca Cola products in Japan 2002 R. Boutellier 32156e Product innovation is already a routine in many industries Toyota Corolla: more than 30 m sold since 1966 10 generations in 40 years R. Boutellier 32157e Some oligopolies transfer innovation to suppliers Holcim Lafarge Cemex • 70% of world market • no product innovation • process innovation bought from: • ABB • Polysius • No surprise • FLS • 2% improvement/year • ... • economy of scale (incl. innovation!) • (some Chinese) Strategy not based on innovation Nevertheless: 2% productivity increase/ year R. Boutellier 32159e Holcim makes efficiency reviews to improve productivity 15 experts 3 check 33 specific fields e.g. weeks Master plan: 2 years • Raw material mix • Housekeeping • Safety • ... Quarterly reporting on progress Overall check after 3 years (ø PBPs ~ 3 years) R. Boutellier 32899e The faster you learn, the more efficient you are Creative ideas Thought experiment hypothesis Experiment Design Interpret Build Simmulation Test R. Boutellier 33506e Different products need different methods to manage development-efficiency New product top performance lowest cost shortest time to market integral hybrid modular High rise elevator Cardboard Mobile phone Formula 1 car packaging Locomotives R. Boutellier 33507e Regulations make technical differentiation impossible, slow down innovation Hahnenkamm, Kitzbühl, downhill 200 sec. 150 100 50 0 1976 1978 1980 1982 1984 1986 1989 1991 1994 1996 1998 2000 1976 2002 2004 2004 http://www.hahnenkamm.com Lauberhorn, Wengen, downhill 200 sec. 150 100 50 0 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2004 1976 http://www.lauberhorn.ch R. Boutellier 31996e Pole vault: Technology makes the difference, + ½ % p.a. since 1904 6.5 6 Glasfiber 5.5 5 4.5 Wood Bamboo Metal 4 1904 1992 1988 1984 1980 1976 1972 1968 1964 1960 1956 1952 1948 1944 1940 1936 1932 1928 1924 1920 1916 1912 1908 3 1904 3.5 1992 No Rules Innovation! Side effects? Data basis: www.leichtathletik.de R. Boutellier 31994e From technology driven innovation to design: Ski-industry 3500 300 3000 Patentanmeldungen - jährlich 250 2500 200 2000 150 1500 100 1000 50 500 0 0 Jahr Patentanmeldungen - kumulativ Patents I 75 I 76 0 2 0 2 I 77 1975 Anmeldungen ∑ Anmeldungen I 78 I 79 1 1 4 3 4 8 I 80 I 81 I 82 I 83 9 1 23 17 18 41 R. Boutellier I 84 I 85 I 86 I 87 I 88 I 89 I 90 I 91 I 92 I 93 56 81 107 108 140 153 142 133 120 199 185 97 178 285 393 533 686 828 I 94 I 95 I 96 I 97 I 98 I 99 171 131 128 149 173 159 I 00 I 01 I 02 171 146 132 I 03 I 04 I 05 115 75 39 2005 961 1081 1280 1465 1636 1767 1895 2044 2217 2376 2547 2693 2825 2940 3015 3054 32058e Blacksocks: The internet is coming despite the dot-com-bubble-burst CH Market 30 mio pairs socks, 130 mio CHF 1950 15 local producers 1970 Consolidation 1990 Foreign competitors 2005 Abolition of quotas, one 100% producer left (Nuthofil) Blacksocks 1998 • Sock subscription over internet • Only black, no sorting • Pleasant surprises Blacksocks 2004: 130 000 pairs sold 2006: 500 000 pairs sold cumulative R. Boutellier 31025e Every company has 3 generic processes: Routine moves forward • Actual cash flow Order – make – delivery • Choice of cash flow Strategy high Routine • Future cash flow Innovation low 2005: More than 700’000 companies have ISO 9001 A defined, documented innovation process R. Boutellier 32162e Basic dilemma: Individual creativity versus coordination Individual creativity ? ? Trade off Coordination (formal) • Time can be traded for coordination • Spontaneous coordination in small groups only R. Boutellier 33508e Even the Beatles had to work longer to get “creative” Number of concerts Hamburg 1960 500 hours in 106 nights 1957 1960 1963 5000 – 10000 hours to become an expert (50 000 Junks of knowledge) W. Weisberg, Creativity and Knowledge. In Sternberg, Creativity, Oxford 2004, p.239, Herbert Simon R. Boutellier 30778e The Beatles learned existing music before getting creative Proportion of own songs (+ absolute number) Training period Creative period 250 songs in repertoire 39 own songs enter repertoire Practice, not info gathering W. Weisberg, Creativity and Knowledge. In Sternberg, Creativity, Oxford 2004, p.240, 241 R. Boutellier 30779e No efficiency without routine The bigger innovation of the 20th century: Innovation! „ Civilization advances by extending the number of important decisions which we can perform without thinking about them. “ A.N. Whitehead 1861 - 1947 Introduction to Mathematics 1911, chapter 5 R. Boutellier 32163e
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