Designing sustainable Innovations K. Christoph Keller Director Future Business Initiation An ex-ante approach Process and cost involved LAUNCH IDEA Integrating with the stagegate processes established 100% Costs for changing a product after the concept is finished are enormous – Changes to finished products are unlikely Costs determined Costs realised Source: Author Needed: an ex-ante approach for designing sustainable innovations. Time 2 I T-R 12 I K. Christoph Keller I June 2011 KSB in brief Quality, Excellence, reliability and a global perspective. KSB is one of the leading suppliers of Pumps, Valves, system solutions, and Service. Global Headquarters Frankenthal Experience since 1871 Financial year 2010 KSB-Produktionsstandorte Order intake: € 2,075.0 million KSB-Vertriebs- / Servicestandorte Industry Water Energy Waste Water Building Services Sales revenue: € 1,939.3 million Earnings (before taxes): € 135.8 million Mining Employees: 14.697€ A global enterprise Source: KSB AG Everything from a single source 3 I T-R 12 I K. Christoph Keller I June 2011 Innovations for the Future Case Study: KSB River Turbine Hydropower without transverse structures. Preassembly at the Halle factory Final Assembly Hydropower that actually improves the ecological situation Installed in a world-heritage area that is a FFH nature reserve too! Photos show assembly and installation of one prototype En route to St. Goar Source: KSB AG. L. Vorpahl While lowering into the river Rhine 4 I T-R 12 I K. Christoph Keller I June 2011 Procedure model Methods Politics model Theoretical backgrounds Five Dimensions of Foresight Projects Internal and external perspectives of the organisation / institution Integration model Objects vs. Subjects Objectives Knowledge model Management model Purpose Source: Keller, 2009, Lecture at FH-Emden-Leer 5 I T-R 12 I K. Christoph Keller I June 2011 Generic foresight process framework Scanning Literature review Technology Forecasting Relevance Trees MACTOR Interviews Business-ModelDesign Scenarios Competence tree of the corporation Corporate hierarchy Complex social systems How the framework was created A glance at the theoretical foundations Socio-Technical System and Diffusion Integration Model Procedure Model – Methods Knowledge Model Politics Model Creating a working front end of innovation Cascade model Theoretical backgrounds Stage-Gate Management Model Purpose and Objectives Reconciling the sustainabilities: „people, profit, and planet“ in product development Source: Model: Keller, 2009, Lecture at FH-Emden-Leer; See conference paper for a full bibliography 6 I T-R 12 I K. Christoph Keller I June 2011 Context Social Technological Business Opportunity Scanning (BOS) Four perspectives in context Business System For example: Application Region Political Technology System How is business actually being done? Economical What is the structure of the industry? Which is the technology preferred? Environmental Source: Author 7 I T-R 12 I K. Christoph Keller I June 2011 Business Opportunities Future Context Analysis, design and evaluation are intertwined. Future Business system Future (of) Applications Future Technology system Key Deliverables KSB’s Markets + Products KSB‘s Capabilities Competencies Source: Author Business Model Competence tree w/ Change required Future (of) Regions BOS.V3 Impact Monetary and non-monetary Business-Opportunities are dynamic. In the course of the study, business opportunities change Measuring and making the future are equally important 8 I T-R 12 I K. Christoph Keller I June 2011 1 2 3 Clarif. of objectives Idea and evaluation 4 Concept / detailed planning 5 Realisati on GO Project 6 Operation 7 End of product life GO Realisation End of obligatio ns BOS.V3 Integration in the PDP This process is II I Pilot Study III Main Study part of ZN56008 (a company standard) Establish relevance, collect information Analyse and interpretation, create knowledge Make an action plan mandatory for innovative projects KSB Relevance Analyse, 4 perspectives Design business model geared towards integrative and systemic understanding Synoptic prospection Describe keydeliverables Selection Criteria Scanning Order knowledge – Scenarios – Fit-Criteria Source: KSB AG Business Design Prepare final evaluation of the BO aimed at raising the full potential of innovations 9 I T-R 12 I K. Christoph Keller I June 2011 Contact and Copyright KSB Aktiengesellschaft K. Christoph Keller Johann-Klein-Straße 9 67227 Frankenthal Tel. +49 6233 86-3249 E-Mail: KarlChristoph.Keller@ksb.com Herausgeber KSB Aktiengesellschaft vertreten durch den Vorstand: Dr. Wolfgang Schmitt, Dr.-Ing. Peter Buthmann, Prof. Dr.-Ing. Dieter-Heinz Hellmann, Jan Stoop © Copyright 2002-2011 KSB Aktiengesellschaft 10 I T-R 12 I K. Christoph Keller I June 2011