Vodafone Chair Mobile Communications Systems, Prof. Dr.-Ing. Dr. h.c. G. Fettweis
Management of Technology Innovation
Summer 2015
Dr.-Ing. Alejandro Zalnieriunas
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Introduction
Innovation and sustainability in mobile communications
Technology trends and predictions 2015
Creativity and Ideation
Innovation culture
Innovation strategy
Innovation process
Open innovation
Innovation maturity management
Intellectual property rights (IPR)
Startups and entrepreneurship
Dr. Alejandro Zalnieriunas
Literature
> Keith Goffin, Rick Mitchell. Innovation Management - Strategy and
implementation using the Pentathlon Framework, Palgrave Macmillan, 2010.
(Also available in German language).
> Mark Dogson, Davig Gann, Ammon Salter. The Management of Technological
Innovation, Oxford Univertsity Press, 2008.
> Paul Trott. Innovation Management and new Product Development, Prentice
Hall, 2008.
> Paul Williams. The Innovation Manager’s Desk Reference, Lulu, 2009.
Dr. Alejandro Zalnieriunas
Content
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Introduction
Innovation and sustainability in mobile communications
Technology trends and predictions 2015
Creativity and Ideation
Innovation culture
Innovation strategy
Innovation process
Open innovation
Innovation maturity management
Intellectual property rights (IPR)
Startups and entrepreneurship
Dr. Alejandro Zalnieriunas
Introduction
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Definition of Innovations and Innovation
Innovation, inventions and technology
Examples
Main innovation elements
 Creativity and ideation, culture, strategy and process
> Case study: Why is culture key?
 Innovation, enterprise strategy and culture
 Three innovation strategies
> Innovation and performance of SMEs in Germany
> Most innovative companies 2013
Dr. Alejandro Zalnieriunas
About Innovation and Innovations
INNOVATE OR LOSE
Dr. Alejandro Zalnieriunas
About Innovation and Innovations
MOST COMPANIES AND
OTHER ORGANISATIONS TODAY
MUST INNOVATE EITHER TO
─ Achieve Success, or
─ Survive in difficult Markets
Dr. Alejandro Zalnieriunas
About Innovation and Innovations
WELL MANAGED INNOVATION AND THE
RESULTING INNOVATIONS LEAD TO IMPORTANT
ADVANTAGES LIKE
─ Products with high degree of novelty
─ Quality that matches Customer Requirements
─ Cost efficient R&D and production/operations
─ Short “Time to Market”
Dr. Alejandro Zalnieriunas
About Innovation and Innovations
AND: WELL MANAGED INNOVATION
HAS AN ATTRACTIVE RETURN ON
INVEST (ROI)
i.e. the amount of effort (e.g. employees’
time and cost of systems/software)
needed to establish and maintain
Innovation is small compared to the
improvement of results
Dr. Alejandro Zalnieriunas
Definition of Innovations (1)
INNOVATIONS : NEW IDEAS  VALUE
Dr. Alejandro Zalnieriunas
Definition of Innovations (2)
INNOVATIONS : NEW THINGS  VALUE
Dr. Alejandro Zalnieriunas
Definition of Innovations (3)
> Other definitions of innovations exist
> For us: AN INNOVATION is something that arises from a
new idea or from something new and leads to value
INNOVATIONS : NEW IDEAS  VALUE
INNOVATIONS : NEW THINGS  VALUE
Dr. Alejandro Zalnieriunas
Definition of Innovation
„INNOVATION“ also denotes the sum of all activities
within a company or an organisation which create
„Innovations“
IDEA
Dr. Alejandro Zalnieriunas
IMPLEMENTATION
VALUE
Examples of „Value“
> Value for Customers e.g. communications,
entertainment, news
> Value for Companies e.g. successful products, quality,
low costs
> Value for society, cities, towns, countries, world e.g.

Solution of “humanity problems” like water and food
supply, health, education, transport, energy and
communication

Environment protection, sustainability

Advances in e.g. medicine and car technology
Dr. Alejandro Zalnieriunas
Areas of „Value“
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Products
Services
Industry Production
Processes
Business models
Technology Innovations (Our focus)
INNOVATION : NEW IDEA  VALUE
INNOVATION : SOMETHING NEW  VALUE
Dr. Alejandro Zalnieriunas
Some Technology enabled Innovation Areas
> Tactile Internet and Internet of Things (IoT) e.g. smart
home, smart cities, smart energy
> Virtualisation of Communications Networks (using
cloud processing principles
> 4G Deployment, 5G Development
> 3D Chip Technology – behind CMOS
> Robots e.g. health care, rescue
> Medicine Technology
> Green Energy
> E-Mobility
Dr. Alejandro Zalnieriunas
DEFINITIONS
> TECHNOLOGY
> INVENTION
> INNOVATION
Dr. Alejandro Zalnieriunas
TECHNOLOGY – OUR DEFINITION
A TECHNOLOGY is something, that
-
has arisen from scientific knowledge,
-
has a practical value (usability),
-
and can be produced with industrial methods.
The term “TECHNOLOGY” is also used for broad
application areas like vehicular technology,
mobile communications technology,
integrated circuit technology, computer technology,
information technology (IT) etc.
Dr. Alejandro Zalnieriunas
Slide
INVENTION – PATENT LAWS DEFINITION
> From patent laws point of view an invention need to

Be a novelty (not previously disclosed)

Be an inventive step (must not be obvious)

Have an industrial application (not be merely theoretical)

Be sufficiently explained (description must be sufficient to
build “the invention”)

Be concrete methods or guides for technical procedures (e.g. a
new material and the way to create it
> A patent legally protects the intellectual property rights
of the inventor
Dr. Alejandro Zalnieriunas
INVENTION – OUR DEFINITION
An INVENTION is something, that
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has never existed before,
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Is apropriate for industrial production.
The term “INVENTION” is also used for a process
that is followed for the creation of inventions
(according to the definition above).
Dr. Alejandro Zalnieriunas
Slide
INNOVATIONS – OUR DEFINITION
INNOVATIONS are things,
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like a device, product, service, process, business
model etc., that
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have arisen from new ideas,
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have a degree of novelty,
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and generate value (for customers, companies,
society, humanity etc.)
Dr. Alejandro Zalnieriunas
Slide
INNOVATION – OUR DEFINITION
The term “INNOVATION” is used for the process
and additional activities that are followed
in the creation of “Innovations”.
Dr. Alejandro Zalnieriunas
Slide
Technology, Invention, Innovation
Generates
Generates
Value
Value
New
Never
New
Idea
Before
Idea
Scientific
Industrial
Knowledge
Production
Innovation
Generates
Generates
Value
Value
New
Never
New
Never
Idea
Before
Idea
Before
Scientific
Industrial
Scientific
Knowledge
Production
Knowledge
Invention
Technology
Dr. Alejandro Zalnieriunas
Slide
Invention and Innovation
Generates
Generates
Value
Value
New
Never
New
Never
Idea
Before
Idea
Before
Scientific
Industrial
Scientific
Knowledge
Production
Knowledge
Invention-Innovation
Dr. Alejandro Zalnieriunas
Slide
Technology and Innovation
Generates
Value
New
New
Real
Idea
Innovation
Value
Idea
Available
Technology
Innovation
New
“Virtual”
Real
Idea
Innovation
Innovation
Scientific
Technology
Knowledge
Development
Technology
(Never before)
Dr. Alejandro Zalnieriunas
Slide
Value
Classical Innovation Examples
Dr. Alejandro Zalnieriunas
Witricity
Wireless Energy Transmission
Source: Witricity (www.witricity.com)
Dr. Alejandro Zalnieriunas
SAP HANA
In-memory computing
Source: SAP (www.sap.com)
Dr. Alejandro Zalnieriunas
Innovation Elements
PROCESS
CREATIVITY,
IDEATION
INNOVATION
STRATEGY
CULTURE
Dr. Alejandro Zalnieriunas
Innovation Process
Phases
Ideas phase
Development
Concept
Dr. Alejandro Zalnieriunas
Feasibility
Implementation
Life
Cycle
Innovation Process
Phases
Ideas phase
Development
Concept
Implementation
Life
Cycle
Feasibility
Project
Products,
Services,
Business Models,
Processes,
Savings
Dr. Alejandro Zalnieriunas
Innovation Elements
Enterprise
Company Strategy
Innovation Strategy
New ideas,
idea
development
Products,
Services,
Business Models,
Processes,
Solutions,
Reveneues/Savings
 Profits
Development,
Implementation
Innovation Culture
Company Culture
Open Innovation
External Ideas
Dr. Alejandro Zalnieriunas
External R&D, Supplier, Partner
CREATIVITY: do differently
Picture courtesy of Kai Kim, 2009.
Dr. Alejandro Zalnieriunas
Slide
36
Idea Generation
Some Creativity Techniques
6-3-5
BRAIN
WRITING
WALT DISNEY
Dr. Alejandro Zalnieriunas
BRAIN
STORMING
SIX THINKING
HATS
Creativity Technique
Six thinking hats
ANALYTIC
ORGANIZER
EMOTIONAL
CREATIVE
CRITICAL
OPTIMISTIC
Dr. Alejandro Zalnieriunas
Good ideas and good development
Good ideas without good development
can not generate value.
Good development without good ideas
is wasting of resources.
Dr. Alejandro Zalnieriunas
Why Culture is Key
Source: Booz&co. (www.booz.com)
Alignment of Business Strategy
to Innovation Strategy
Cultural Support of Innovation Strategy
Dr. Alejandro Zalnieriunas
Innovation Culture
The fundamental Success Factor
Innovation Culture is the most fundamental contributor
to successful Innovation.
Culture is the set of shared values, attitudes and practices
that characterizes an Institution, organization or group.
Dr. Alejandro Zalnieriunas
Why Culture is Key
Source: Booz&co. (www.booz.com)
Dr. Alejandro Zalnieriunas
Why Culture is Key
Source: Booz&co. (www.booz.com)
Dr. Alejandro Zalnieriunas
Why Culture is Key
Source: Booz&co. (www.booz.com)
Dr. Alejandro Zalnieriunas
Booz&co. study: The 2011 Global Innovation 1000
Dr. Alejandro Zalnieriunas
Why Culture is Key
Source: Booz&co. (www.booz.com)
Dr. Alejandro Zalnieriunas
Why Culture is Key
Source: Booz&co. (www.booz.com)
Dr. Alejandro Zalnieriunas
Booz&co. study: The 2011 Global Innovation 1000
Dr. Alejandro Zalnieriunas
Why Culture is Key
Source: Booz&co. (www.booz.com)
Three Innovation Strategies
Need Seekers
Market Readers
Tech Drivers
Dr. Alejandro Zalnieriunas
Booz&co. study: The 2011 Global Innovation 1000
Dr. Alejandro Zalnieriunas
Booz&co. study: The 2011 Global Innovation 1000
Dr. Alejandro Zalnieriunas
Booz&co. study: The 2011 Global Innovation 1000
Dr. Alejandro Zalnieriunas
Booz&co. study: The 2011 Global Innovation 1000
Dr. Alejandro Zalnieriunas
Why Culture is Key
Source: Booz&co. (www.booz.com)
Dr. Alejandro Zalnieriunas
Performance of innovative German SMEs
> TOP Innovators among German SMEs outperform the branch
specific SME averages in important financial parameters like
revenue growth and process savings
> EU/EC Definitions for SMEs and Micro-Enterprises*
Company
category
Employees
Turnover
Medium-sized
< 250
≤ € 50 m
≤ € 43 m
Small
< 50
≤ € 10 m
≤ € 10 m
Micro
< 10
≤€2m
≤€2m
*) Source: http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/sme-definition/index_en.htm
Dr. Alejandro Zalnieriunas
o Balance
r sheet total
Performance of innovative German SMEs
Performance measures
Category
TOP 100 SME- Average
TOP 100/ SMEAverage
Revenue share due to innovations
from the last 3 years
49%
6,7%
7,3
Savings due to processinnovations in 2010
10%
2,8%
3,6
Share of enterprises which grew
faster than the branche average in
the last 3 years
88%
(Assume 50%)
1,8
TOP 100 average growth on top of
SME average growth
16%
0%
Source: TOP 100, die 100 innovativsten Unternehmen im Mittelstand, Ausgabe 2011. REDLINE-Verlag.
Dr. Alejandro Zalnieriunas
Performance of innovative German SMEs
Some measures that led to top performance
Category
TOP 100 SME- Average
TOP 100/ SMEAverage
Enterprises with broad innovation
strategies
97%
44%
2,2
Idea phase is properly organised
97%
28%
3,5
Innovation collaboration with suppliers
89%
18%
4,9
Employees are empowered to use time
for idea creation and collaboration
78%
35%
2,2
Cross-functional project teams
99%
55%
1,8
Ratio of innovation budget / revenue
14%
1,5%
9,3
Source: TOP 100, die 100 innovativsten Unternehmen im Mittelstand, Ausgabe 2011. REDLINE-Verlag.
Dr. Alejandro Zalnieriunas
Content
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Introduction
Innovation and sustainability in mobile communications
Technology trends and predictions 2015
Creativity and Ideation
Innovation culture
Innovation strategy
Innovation process
Open innovation
Innovation maturity management
Intellectual property rights (IPR)
Startups and entrepreneurship
Dr. Alejandro Zalnieriunas
Innovation and Sustainability
in mobile Communications
> Sustainability
 Sustainability
 Life Cycle Assessment
 Recycling
> Mobile communications
 Networks and terminals
 Subscribers and traffic growth
 Sustainability in ICT and mobile communications
> Mobile phone recycling
Dr. Alejandro Zalnieriunas
Sustainability
A broadly accepted definition of Sustainability is
“meeting the needs of the present
without compromising
the ability of future generations
to meet their own needs.”
“Keep an Eye
on the Present,
while keeping the other Eye
on the Future, on the Horizon”
Dr. Alejandro Zalnieriunas
Sustainability impact on enterprises
> Sustainability is an umbrella term for a set of “changes and
challenges” that impact enterprise strategy, culture and
performance, including:
 Growing environmental pressures related to increasing
population
 Resource scarcity
 Rising costs for energy and materials
 Increasing consumer demand for safe and natural products
 Unprecedented levels of transparency arising from the Internet
and social media
Dr. Alejandro Zalnieriunas
Sustainability quantification
> Sustainability can be quantified using the following parameters
 Utilization of natural resources
 Energy resources, e.g. gas, raw oil
 Vegetal resources, e.g. trees
 Animal resources, e.g. certain fishes
 Mineral resources, e.g. metals
 Emissions of CO2 and CO2e (Equivalent CO2 emissions)
 Energy consumption.
Dr. Alejandro Zalnieriunas
Carbon Dioxide Equivalent (CO2e/CO2e)
Definition
> In order to compare and summarize the carbon footprint of
different or mixtures of gases, the standard unit CO2e, or carbon
dioxide equivalent, is used
> CO2e expresses the impact of any greenhouse gas in terms of the
amount of CO2 that would create the same amount of warming
(radiative forcing).
> That way, a carbon footprint consisting of lots of different
greenhouse gases can be expressed as a single number.
> For example, in 2009, the UK released 474 million tons of CO2.
Including its emissions of other gases, the country's total
emissions work out at 566 million tons of CO2e, i.e., those extra
gases added the equivalent of 92 million extra tons of CO2.
Source: theguardian (www.theguardian.com).
Dr. Alejandro Zalnieriunas
The three Spheres of Sustainability
Image credit: www.vanderbilt.edu/sustainvu/cms/files/sustainability_spheres.png
Dr. Alejandro Zalnieriunas
The three Spheres and Innovation
> The three Spheres of
Sustainability can be
considered as the major
sustainability stakeholders:
 They can influence
sustainability, positively
and negatively
 They are affected by
sustainability
> Innovation and technology
can affect the three
Spheres
Dr. Alejandro Zalnieriunas
Image credit: www.vanderbilt.edu/sustainvu/cms/files/sustainability_spheres.png
Agenda 21
Non-binding action plan of the United Nations
> Section I: Social and Economic Dimensions
 Combating poverty
 Changing consumption patterns
 Promoting health
 achieving a more sustainable
population
 sustainable decision making
> Section II: Conservation and Management of Resources (Enviromental
Dimension)
 Atmospheric protection
 Combating deforestation
 Protecting fragile environments
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Conservation of biological diversity
Control of pollution
Management of biotechnology
Management of radioactive wastes
> Section III: Strengthening the Role of Major Groups
 Roles of children, youth, women, local authorities, business and industry, and worker
 Strengthening the role of indigenous peoples and their communities
> Section IV: Means of Implementation
 Science, technology transfer, education
 International institutions, financial mechanisms.
Source : Wikipedia
Dr. Alejandro Zalnieriunas
Life-cycle Assessment (LCA)
also “Life-cycle Analysis”
Image credit: US EPA Region X
(Document lca_1_100809.pdf)
Dr. Alejandro Zalnieriunas
Life-cycle Assessment (LCA)
also “Life-cycle Analysis”
Image credit: US EPA Region X (Document lca_1_100809.pdf)
Dr. Alejandro Zalnieriunas
Life-cycle Assessment (LCA) context
also “Life-cycle Analysis”
> Technique to assess
environmental impacts associated
with the stages of a product's life:
 raw material extraction,
 materials processing,
 manufacture,
 distribution,
 use,
Image credit: US EPA Region X
(Document lca_1_100809.pdf)
 repair and maintenance,
 and disposal or recycling.
> “Cradle-to-grave” is the full Life
Cycle Assessment from resource
extraction ('cradle') to disposal
phase ('grave').
Dr. Alejandro Zalnieriunas
Image credit: US EPA Region X
(Document lca_1_100809.pdf)
Phases of LCA Studies
> LCA studies are structured in four
phases:
 Goal and scope: Establishing purpose,
context scope and stakeholders of the
Study.
 Inventory analysis: Compiling an
inventory of relevant energy and
material inputs and environmental
outputs.
 Impact assessment: Evaluating the
potential impacts associated with
identified inputs and outputs.
 Interpretation: Interpreting the results to
help make a more informed decision.
Dr. Alejandro Zalnieriunas
Image crdit: US EPA Region X (Document lca_1_100809.pdf)
Life-cycle process model
Manufacture industry
Recycle,
Compost,
Energy Recovery,
Landfill
Image credit: Environmental Technology Best Practice Programme © Crown copyright (www.tangram.co.uk/TI-LCA_Introduction.html)
Dr. Alejandro Zalnieriunas
Recycling and waste hierarchy
> Recycling helps extend the life
and usefulness of something that
has already served its initial
purpose by producing something
that is useable.
Image credit: www.clipartbest.com
Image credit: Wikipedia (File: Waste hierarchy.svg)
Dr. Alejandro Zalnieriunas
Interesting Recycling Facts – Paper
> Recycling 1 ton of paper saves
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17 mature trees

7,000 gallons of water

3 cubic yards of landfill space

2 barrels of oil

4000 kilowatt hours of electricity (can power an average home for 5 months)
> Recycling paper generates 74% less air pollution than making it from new
materials
> Recycling paper uses 60% of the energy needed to make paper from new
materials
> Over 73% of all newspapers are recovered for recycling
> A little more than 48 percent of all office paper is recycled (Writing papers,
paperboard, tissue, and insulation)
Source: www.benefits-of-recycling.com/interestingrecyclingfacts
Dr. Alejandro Zalnieriunas
Interesting Recycling Facts – Metal, plastic
> Recycling steel and tin cans saves 74% of the energy used to make them from
raw materials
> Approximately 88% of the energy is saved when plastic is made from plastic
rather than from the raw materials of gas and oil
> Recycling one aluminum can

Saves enough energy to run a 100 watt light bulb for 20 hours or save gasoline that
half fills the can
> US people throw away enough aluminum every month to rebuild an entire
commercial air fleet
> US people throw out enough iron and steel to continuously supply all the auto
makers in the entire nation
> Enough plastic bottles are thrown away in the United States each year to circle
the Earth four times
Source: www.benefits-of-recycling.com/interestingrecyclingfacts
Dr. Alejandro Zalnieriunas
Content
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Introduction
Innovation and sustainability in mobile communications
Creativity and Ideation
Innovation culture
Innovation strategy
Innovation process
Open innovation
Innovation maturity management
Intellectual property rights (IPR)
Startups and entrepreneurship
Dr. Alejandro Zalnieriunas
Innovation and Sustainability
in mobile communications
> Sustainability
 Sustainability
 Life Cycle Assessment
 Recycling
> Mobile communications
 Networks and terminals
 Subscribers and traffic growth
 Sustainability in ICT and mobile communications
> Mobile phone recycling
Dr. Alejandro Zalnieriunas
Some facts about mobile communications
> First GSM1 mobile phone call: 1991 in Finland
> Over two billion GSM users in 2006
> Over four billion mobile subscriptions (all standards) worldwide in
2011
> Comparisons
 About 1.3 billion fixed line subscribers worldwide (2011)
 About 1.8 billion of people accessing the Internet worldwide (2011)
> Processing power and storage capacities of mobile devices have
doubled approximately every 18 months
> Data transmission rates have been rising at nearly the same speed
Note 1: Global System of Mobile Communications
Source: The Global Footprint of Mobile Communications: The Ecological and Economic Perspective
IEEE Communications Magazine • August 2011
Dr. Alejandro Zalnieriunas
Mobile network architecture models
GSM (2G, 2nd Generation) and 3G (3rd Generation)
GSM Network Model
3G Network Model
Circuit Switched
Network
BS, BTS:
BSC:
MSC:
HLR:
VLR:
SMSC:
SCP:
SDP:
Basis Station
Base Station Controller
Mobile Switching Center
Home Location Register
Visitor Location Register
Short Message Service Center
Service Control Point (IN)
Service Data Point (IN)
Image credit: Wikipedia (GSM). NEC (www.ne.co.jp) (3G)
Dr. Alejandro Zalnieriunas
Node-B:
RNC:
MSC:
GMSC:
SGSN:
GGSN:
IMS:
Eq. Basis Station
Radio Network Controller
Mobile Switching Center
Gateway Mobile Switching Center
Serving GPRS Support Node
Gateway GPRS Support Node
IP Multimedia Subsystem
Wireless and wired data rates
Increase exponentially over time
> Data rates
increase
approximately by
a factor of 10
every five years
> This
corresponds, in
principle, to
Moore’s Law: In
1965, Gordon
Moore predicted
a doubling of the
number of transistors in an electronic chip every two years, 225 (nearly
30 million) times in fifty years up to today.
Source: The Global Footprint of Mobile Communications: The Ecological and Economic Perspective
IEEE Communications Magazine • August 2011
Dr. Alejandro Zalnieriunas
Global mobile subscriptions projections
> Number of 3G+ (3G and 4G)
devices will surpass 2G by 2015
(upper diagram)
> By 2020 there will be about six
billion mobile phone subscriptions
(2G and 3G+) (lower diagram)
Regular 3G+ subscription: Phones
3G+ data subscription: Laptops and similar
Upper image credit: Cisco VNI Mobile, 2014
Lower image credit: The Global Footprint of Mobile
Communications: The Ecological and Economic Perspective
IEEE Communications Magazine • August 2011
Dr. Alejandro Zalnieriunas
Global number of devices
Type of device
Figures in parenthesis refer to device or connections share in 2013, 2018.
Credit: Cisco VNI Mobile, 2014
> Number of intelligent devices will rise to 66,1% (=100%–33.9%) in 2018
> Each type of terminal has a typical pattern of Sustainability impact
 Utilization of natural resources
 Carbon (CO2e) emissions
 Energy consumption
Dr. Alejandro Zalnieriunas
Global M2M growth
Migration from 2G to 3G and 4G
> Global 4G M2M connections:
 0.43% in 2013,
 1.5 % by 2014,
 3% by 2015,
 5.6% by 2016
> M2M data traffic is small
compared to traffic originating
from human users
> Expected averages (2020)
Credit: Cisco VNI Mobile, 2014
 50 bytes/min/device and 10 devices/person
 Less than 0.3 Gbytes/person estimated M2M traffic
 About 100 Gbytes/person estimated data traffic
> M2M should have a marginal impact on carbon footprint
 Low activity levels and small capacity per link requirements
Dr. Alejandro Zalnieriunas
Global number of devices
MANY, MANY DEVICES
WHICH ARE REPLACED
CONTINUOUSLY
Dr. Alejandro Zalnieriunas
Carbon footprint and energy consumption
ICT and Mobile Networks
> Global CO2 footprint of IT and Communication Technologies (ICT)
is about 2% of overall CO2 footprint (1.5% of CO2e emissions)
> ICT’s and global aviation’s CO2 footprints are nearly the same
> Mobile networks’ CO2e emissions are estimated as 0.2% (2007)
> Mobile network operators (MNOs) have a strong economic
incentive to reduce energy consumption because of:

Increasing number of base station (Node-B) sites

Increasing energy costs.
Source: The Global Footprint of Mobile Communications: The Ecological and Economic Perspective
IEEE Communications Magazine • August 2011
Dr. Alejandro Zalnieriunas
Mobile communications carbon footprint
Model – Break down in six categories
1) Manufacturing of mobile devices: low-end phones, smartphones,
and laptops
2) Mobile devices operation
─ Charging of batteries and standby consumption of chargers
─ Charging and grid operation for laptops etc.
3) RAN sites manufacturing and construction
4) RAN sites operation: Total electricity consumption of
─ Base station sites and control sites
─ Transmission, cooling, rectifiers, backup power, etc.
5) Operator activities: Offices, stores, vehicles, etc.
6) Data centers and data transport
─ Use or allocation of network resources based on the data traffic
Source: The Global Footprint of Mobile Communications: The Ecological and Economic Perspective
IEEE Communications Magazine • August 2011
Dr. Alejandro Zalnieriunas
Global carbon footprint projection
CO2e emissions
A
B
> Largest contributions in absolute values (2020):
 RAN sites operation ( A )
 Manufacturing of mobile devices ( B )
> Relative contribution of RAN operations decreases considerably over time
Image credit: The Global Footprint of Mobile Communications: The Ecological and Economic Perspective
IEEE Communications Magazine • August 2011
Dr. Alejandro Zalnieriunas
Global mobile communications projections
Carbon footprint und subscriptions
Regular 3G+ subscription: Phones
3G+ data subscription: Laptops and similar
> Global mobile penetration and CO2e increase nearly proportionally,
although traffic volume per subscriber significantly grows
Source: The Global Footprint of Mobile Communications: The Ecological and Economic Perspective
IEEE Communications Magazine • August 2011
Dr. Alejandro Zalnieriunas
Global carbon footprint projections
Per subscriber and Gigabyte of mobile data
> Innovation and advances in
Technology make and will
continue to make a
reduction of carbon
emissions per traffic
volume unit, e.g. per
Gigabyte, by approx. 99,5%
(factor 1/200) possible
Despite massive increase of traffic per subscription, and
thanks innovation and technology, emissions per
subscription will remain fairly constant or even decrease
(3G+ data).
Image credit: The Global Footprint of Mobile Communications: The Ecological and Economic Perspective
IEEE Communications Magazine • August 2011
Dr. Alejandro Zalnieriunas
Manufacturing carbon footprint1 and
operation energy consumption
Regular cell phones
Smartphones
Laptops (average)
Manufacturing:
Manufacturing:
Manufacturing:
18 kg CO2e/device
30 kg CO2e/device
240kg CO2e/device
Operation:
2 kWh/year
Operation:
7 kWh/year
Operation:
40 kWh
Projections
Projection
and
Manufacturing and operation emissions remain Manufacturing
operation emissions
constant
decrease by 5%/ year
Technological advances result in better
performance and more functions
Source: The Global Footprint of Mobile Communications: The Ecological and Economic Perspective
IEEE Communications Magazine • August 2011
Dr. Alejandro Zalnieriunas
Summary
> Number of mobile communication subscriptions grows
> Amount of traffic per (most types*) of subscription
grows
> Innovation and technology advances reduce significantly
the emissions per traffic unit
The result is a moderate growth
of the total mobile communications emissions
Dr. Alejandro Zalnieriunas
Innovation and Sustainability
in mobile communications
> Sustainability
 Sustainability
 Life Cycle Assessment
 Recycling
> Mobile communications
 Networks and terminals
 Subscribers and traffic growth
 Sustainability in ICT and mobile communications
> Mobile phone recycling
Dr. Alejandro Zalnieriunas
Mobile phone Bill of Materials (BoM)
Circuit board, display, battery
> Overall, a mobile phone consists approx. of 40% metals, 40%
plastics, and 20% ceramics and trace materials.
> Circuit board and electronics
 Mined, raw materials including copper, gold, lead, nickel, zinc,
beryllium, tantalum, and other metals
 Plastic
 Some of them are "persistent toxins" and can stay in the environment
for long periods of time
> The display (LCD) can contain dangerous substances, like mercury.
It also contains glass or plastic.
> Batteries, according to type can contain several metals, like nickel,
lithium, cobalt. zinc, cadmium, and copper.
Source: Underwriters Laboratories Inc. (UL) Copyright © 2011
Dr. Alejandro Zalnieriunas
Metals in mobile phones
Component-level metals content (published in 2008)1
Metal content and value ratio at phone level (published in 2010)1
Note 1: Source: Underwriters Laboratories Inc. (UL) Copyright © 2011
Dr. Alejandro Zalnieriunas
Mobile phone life cycle
Image credit: US EPA Region X
(Document lca_1_100809.pdf)
Credit: EPA
Image credit: Wikipedia (File: Waste hierarchy.svg)
Dr. Alejandro Zalnieriunas
Cell phone life cycles
Credit: EPA
Dr. Alejandro Zalnieriunas
Selling used mobile phones
Example: UK
> One price machine in UK: mobilevaluer.com. Samsung Slll.
Source: http://mobilevaluer.com (2013)
Dr. Alejandro Zalnieriunas
Recycling and waste hierarchy
Mobile Phones (MPs), Tablets (Ts), Laptops (Ls)
> Prevention of utilization is in the case of
MPs practically impossible
> Substitution (prevention) of Ts through
utilization of MPs with larger screens
(Phablets), or prevention of Ls through
“Hybrids” or Ts with attachable keyboards
> Minimization of utilization doesn’t play a
critical role because of the relatively low
energy consumption of devices
Image credit: Wikipedia (File: Waste hierarchy.svg)
> Reuse in the case of MPs, Ts and Ls plays a very important
role: Many people keep old devices for “alternative”
utilization, like alarm clock or egg cooking, or even in the
drawer, at their homes. This has a huge potential for recycling
or even “appropriate” reuse which would reduce the need
and demand for production of new devices
> Disposal in the residual waste must be avoided by any means.
Dr. Alejandro Zalnieriunas
Image credit: www.clipartbest.com
Content
>
>
>
>
>
>
>
>
>
>
>
Introduction
Innovation and sustainability in mobile communications
Technology trends and predictions 2015
Creativity and Ideation
Innovation culture
Innovation strategy
Innovation process
Open innovation
Innovation maturity management
Intellectual property rights (IPR)
Startups and entrepreneurship
Dr. Alejandro Zalnieriunas
Selection of Trends and Predictions 2015
> Almost half of the world will have a powerful computer in their pocket
and vastly different expectations from your business
> Advanced, Pervasive and Invisible Analytics Turn Every Application Into
an Analytical Application Delivering Actionable Insights to Consumers
> Cloud/Client Computing Will Emerge to Unify Cloud and Mobile
Strategies
> Smart Machines Extend Humankind's Ability to Address Complex
Situations
> Context-Rich Systems Provide Agility and Proactive Responsiveness
> The IoT will continue to rapidly expand the traditional IT industry
> Data-as-a-Service will drive new big data supply chains
Dr. Alejandro Zalnieriunas
Slide 116
Top 10 Mobile Technologies and Capabilities for 2015 and 2016
Source: Gartner
>
Multiplatform / Multiarchitecture AD Tools
>
HTML5
>
Advanced Mobile UX Design
>
High-Precision Location Sensing
>
Wearable Devices
>
New Wi-Fi Standards
>
Enterprise Mobile Management (EMM)
>
Mobile-Connected Smart Objects
>
LTE and LTE-A
>
Metrics and Monitoring Tools
Dr. Alejandro Zalnieriunas
Slide 117
Gartner's top 10 strategic technology trends for 2015 (1)
1) Computing Everywhere Is Changing How People
Experience the World
2) The Internet of Things Brings the Power of Device
Ecosystems to Your Enterprise
3) 3D Printing Is Approaching a Critical Inflection Point
4) Advanced, Pervasive and Invisible Analytics Turn Every
Application Into an Analytical Application Delivering
Actionable Insights to Consumers
5) Context-Rich Systems Provide Agility and Proactive
Responsiveness
Dr. Alejandro Zalnieriunas
Slide 118
Gartner's top 10 strategic technology trends for 2015 (2)
6) Smart Machines Extend Humankind's Ability to Address
Complex Situations
7) Cloud/Client Computing Will Emerge to Unify Cloud and
Mobile Strategies
8) Software-Defined Architecture for Infrastructure and
Applications Is Required for Dynamic, Agile, Flexible
Systems to Support Digital Business
9) Web-Scale IT Is Required to Keep Pace With Digital
Innovation and Competitive Threats
10)Digital Business Demands Risk-Based Security and SelfProtection
Dr. Alejandro Zalnieriunas
Slide 119
Gartner's Hype Cycle for Emerging Technologies, 2014
Dr. Alejandro Zalnieriunas
Slide 120
IDC: Top 10 Technology Predictions For 2015 (1)
IDC’s Frank Gens advised companies in all
industries to
“Amazon” themselves,
but also predicted that the best job of “Amazoning”
will be done by Amazon itself
All innovation today is Amazon-style innovation:
at scale,
high-velocity,
and low-cost.
Dr. Alejandro Zalnieriunas
Slide 121
IDC: Top 10 Technology Predictions For 2015 (2)
Selection
>
>
>
>
>
>
>
>
New technologies will account for 100% of growth
Wireless data, the largest segment of the
telecommunications sector, will also be the fastest growing
Phablets will be the mobile growth engine
The IoT will continue to rapidly expand the traditional IT
industry
Cloud service providers will become the new data centre,
redrawing the IT landscape
Rapid expansion of industry-specific digital platforms
Adoption of new security and printing innovations
More China, everywhere
Dr. Alejandro Zalnieriunas
Slide 122
Forrester: Top IT Predictions for 2015 (1)
>
>
>
>
>
The gap between digital leaders and laggards will widen in
2015
Almost half of the world will have a powerful computer in
their pocket and vastly different expectations from your
business
Apple will rule 2015
More money spent on security will lead to… more security
breaches-related losses
Data is the new product
Dr. Alejandro Zalnieriunas
Slide 123
Forrester: Top IT Predictions For 2015
>
>
>
>
>
Data is the new product
Many established companies will become venture
capitalists
Some sectors will not see the fruits of digitization for a long
time
The Cloud is the New Normal
In 2015, many organizations will answer the question
“Who’s your digital daddy?” with a three-letter acronym
Dr. Alejandro Zalnieriunas
Slide 124
Content
>
>
>
>
>
>
>
>
>
>
>
Introduction
Innovation and sustainability in mobile communications
Technology trends and predictions 2015
Creativity and Ideation
Innovation culture
Innovation strategy
Innovation process
Open innovation
Innovation maturity management
Intellectual property rights (IPR)
Startups and entrepreneurship
Dr. Alejandro Zalnieriunas
Creativity and Ideation
> Definitions
 Psychological and neuroscience mental processes models
> Creativity and geniuses
 Blind variation and selective retention (BVSR)
 Cognitive disinhibition
> Learning and training individual creativity
 Creativity techniques and tactics
 Let your unconscious solve the problems
> Team creativity techniques
> Company creativity, ideation
Dr. Alejandro Zalnieriunas
Creativity and ideation
PROCESS
CREATIVITY,
IDEATION
INNOVATION
STRATEGY
CULTURE
Dr. Alejandro Zalnieriunas
Facts about creativity
> Innovation is the most important competitive edge
(advantage) in many industrial and business sectors
> Day-to-day innovation in a company can be roughly
reduced to creativity and process (execution)
> Creativity is a very important characteristic of an
individual for important roles in industry and business
> Creativity is key for career development and success of
many professionals like engineers, scientists, artists and
managers
> You don’t need to be a genius to be highly creative:
Creativity can be learned… and you should do it!
Dr. Alejandro Zalnieriunas
Creativity, Company Ideation
Thoughts,
sensations,
memory
Dr. Alejandro Zalnieriunas
Generation
of ideas
Analysis,
selection
time
Our creativity definition
Creativity is
the purposeful
generation and implementation
of new ideas with
measurable useful outcomes.
Picture courtesy of Kai Kim, 2009.
Creativity involves
generating new ideas,
evaluating them,
picking the best ones and
implementing a plan for their realisation.
Dr. Alejandro Zalnieriunas
Creativity vs intelligence (Merriam-Webster)
> Creativity - Ability to produce something new
through imaginative skill, whether a new solution
to a problem, a new method or device, or a new
artistic object or form.
> Intelligence - Ability to learn or understand or to
deal with new or challenging situations. Also,
ability to apply knowledge to manipulate one's
environment or to think abstractly as measured
by objective criteria (such as standard IQ tests).
Dr. Alejandro Zalnieriunas
Creativity and ideation in a company
 Creativity is
 The first step
improved further
 Any individual can
working in teams,
improve his
using creativity
creativity
methodology
INDIVIDUAL
CREATIVITY
TEAM
CREATIVITY
 The right culture,
management
leadership and tools
move creativity to
the top stage
COMPANY
CREATIVITY
Ideation (company)
Dr. Alejandro Zalnieriunas
Slide
Talent vs Genius
“A Talent hits a target
no one else can hit, …
a Genius hits a target
no one else can see”
Arthur Schopenhauer, German philosopher, 19th century
Dr. Alejandro Zalnieriunas
Alternative Definitions of Genius
> Individual with
extraordinary
achievements based on
imagination
> Extraordinary intelligent
individual measured with
standard methods

E.g. Newton, Galileo, Einstein,
Mozart, Beethoven

Most accepted definition
Dr. Alejandro Zalnieriunas
Slide

Usually attributed to
individuals with an IQ
above 140 (1/100 of
individuals)

High IQ “Societies”: Mensa
(1/50), Intertel (1/100),
Tripple nine (1/1000),
Mega (1/1.000.000)
Common characteristics of geniuses
 Generate new ideas through BVSR
(Blind Variation and Selective
Retention)
 Knowledge acquisition
 Need domain knowledge before
making significant contribution
 Environment
 Development
 Genes
 Talent
 Eccentricity
 Psychological exceptions
Dr. Alejandro Zalnieriunas
Idea generation and backtracking
3
4
2
6
5
7
8
1
Idea generation
Back tracking
Dr. Alejandro Zalnieriunas
9
Blind variation and selective retention (BVSR)
Number
of ideas
Blind variation
Selective retention
1
time
Imagine
Select
Dr. Alejandro Zalnieriunas
Creativity, Company Ideation
Dr. Alejandro Zalnieriunas
Blind Variation (BV)
Selective Retention (SR)
Diverging Thinking
Converging Thinking / Analysis
time
Mental processes
Psychological model
2
The state of perceiving
or feeling impressions
on the mind
1
Mind
Awareness
…
Capability set that
enables mental
activities like
perception, thinking,
reasoning, memory,
Feeling and motivation
Conscious
... Unconscious
3
The processes
in the mind that can
be captured by awareness
Dr. Alejandro Zalnieriunas
4
The processes in the mind
that occur automatically
and are not available
to awareness
Mental processes
Importance
Unconscious is a very powerful tool
that can be “instructed” by the conscious
(awareness) to deliver solutions.
The crux is to get the solutions back
to the conscious, e.g. to become aware of
the solutions.
Dr. Alejandro Zalnieriunas
Appendix: Psychological model definitions
(Not relevant for exam)
> Mind: The set of cognitive human faculties that enables ”mental
processes” like perception, thinking, reasoning, memory, feeling,
and motivation.
> Awareness: The state or ability to perceive or to feel facts or
sensory patterns impressed in the mind.
> Conscious (Conscious mind): The processes in the mind that can
be captured by awareness.
> Unconscious (Unconscious mind): The processes in the
mind that occur automatically and are not available to
awareness, to introspection. Even though these processes exist
well under the surface of conscious mind, out of the reach of
awareness, they exert an impact on behavior.
Dr. Alejandro Zalnieriunas
Mental processes
Neuroscience model
Cognitive filter
(protects from information excess)
(Part of) imagination,
thoughts, ideas,
memories, sensations
(posterior part of brain)
Dr. Alejandro Zalnieriunas
Alpha-waves (while creative activities)
Beta-waves (while focused attention)
Attention, control,
solving problems
(frontal part of brain)
Cognitive disinhibition
This theory is supported by EEG and brain imaging
Normal individual
Cognitive filter
Dr. Alejandro Zalnieriunas
Genius
Cognitive disinhibition
(higher throughput)
High
intelligence
Cognitive Disinhibition
> Cognitive filter has exceptionally increased throughput
> Additional information arrives at conscious awareness
and can give rise to unusual (“creative”) ideas
> People with high degree of intelligence can process this
information
> Other people can be overwhelmed with the information
> Cognitive disinhibition can explain the non-coincidental
incidence of eccentric behavior with high creativity
> Cognitive disinhibition paired with high intelligence can
lead to exceptional insights
Dr. Alejandro Zalnieriunas
Boosting individual creativity
> How can we improve our
creativity?
> Learning to see what
others don’t see
> Learning to think how
other don’t think
> Being motivated
Dr. Alejandro Zalnieriunas
> Very characteristic of
geniuses is how to think:

Thirty one students of
five Nobel prize winners
(Enrico Fermi, Ernest
Laurence, Niels Bohr, J. J.
Thompson and Ernest
Rutherford) won Nobel
prizes

They learned “how to
think”
Individual creativity techniques (1)
> Reversal
 How to find ideas by reversing conventional assumptions
> Attribute listing
 How to get ideas from a challenge’s attributes
> Fractionation
 How to get ideas by dividing a challenge into two or more
components and the reassembling them in new and different ways
> Mind mapping
 How to map your thoughts in order to get new ideas
> Idea box
 How to identify and box the parameters of a challenge to easily
produce many new ideas
Dr. Alejandro Zalnieriunas
Individual creativity techniques (2)
> Future scenarios
 How to create future scenarios in order to get advantage of hidden
opportunities
> Visualize
 Rethink the way to categorize items
> Talk to a stranger
 How to get ideas by increasing the number and kind of people you
talk to about your challenges
> Lateral thinking
 Unusal thinking
Dr. Alejandro Zalnieriunas
Individual creativity tactics
> Take distance
 Take spatial or temporal (move to the future!) distance from your
challenge to be more relaxed
> Take regular breaks
 These will improve your overall mental performance and could allow
ideas to arise to your awareness
> Alternate activities
 This will help you to get new perspectives on your challenge and
overcome deadlocks
> Have always something to take notes with you
 Don’t rely on your conscious memory. Take notes of ideas, thoughts,
sensations, especially dreams
> Improve your creativity with creativity tests
Dr. Alejandro Zalnieriunas
Reversal example
Planning a restaurant
> Menu
 No menu (reversal). The guests choose ingredients available
in the restaurant and the restaurant cooks for them
> Offering food in the restaurant
 No food (reversal). Guests bring their own food and the
restaurant cooks for them
> Getting paid for food
 No payment for food (reversal). Instead, guests pay for the
time they spend in the restaurant. Note: There exist a coffee
company with coffee houses in Moscow, London (and
Berlin?) which operates according to this model
Dr. Alejandro Zalnieriunas
Fractionation example
Improving customer service
Prompt
Satisfied
Polite
Customer
Not
Poor Quality
satisfied
Slow
Customer
Service
Personal
Info.
Automatized
Service
Handling
Personal
complains
Automatized
Dr. Alejandro Zalnieriunas
Idea Box
Simplified Attribute List technique. The purpose is to find new
parameter (or feature) configurations to improve or prolong the life
time of a product. The process is:
1.
2.
3.
4.
State the problem
List the parameters of the issue across the top of the page
List variations for each parameter, in a column below it
Try different combinations
Dr. Alejandro Zalnieriunas
Idea Box example
Mobile phone
> LIST THE PARAMETERS
Battery life
(std by)
1
2
3
4
Dr. Alejandro Zalnieriunas
Internal
Memory
Mobile Phone Example
External
Screen Size
Memory
Optical
Zoom
Price
Idea Box example
Mobile phone
> LIST VARIATIONS OF EACH PARAMETER
Battery life
(std by)
1
8h
2
12 h
3
16 h
4
20 h
Dr. Alejandro Zalnieriunas
Internal
Memory
0,5 GB
1 GB
2GB
4 GB
Mobile Phone Example
External
Screen Size
Memory
0
3.5" (iPhone 4S)
32 GB
4.2" (Galaxy S II)
64 GB
4.8" (Galaxy S III)
128 GB
Optical
Zoom
None
2x
4x
10x
5.5 (Galaxy Note) (Galaxy S4
zoom)
Price
100 €
150 €
300 €
600 €
Lateral thinking
“Seeking to solve problems by unorthodox or apparently illogical
methods.” (Oxford Dictionary)
1. Make associations that are in some sense illogical since they
don’t provide from a process where the connections are obvious
2. Move sideways when working on a problem
3. Try different perceptions and concepts
4. Get out of the usual line of thought.
Dr. Alejandro Zalnieriunas
Let your unconscious solve the problems
Utilize the powerful resources of your unconscious
The unconscious is continually processing information (incubation)
Ask your unconscious to solve a problem, give it some time, and get the
solution
> Relaxation
 Use relaxation techniques to clear your mind and make your
awareness more receptive to thoughts/ideas from unconscious mind
> Dreams
 Dreams during sleep and daydreams also make awareness more
receptive to thoughts/ideas from unconscious mind
> Three B’s
 Bus, Bed and Bath. Get new ideas while doing “nothing”, while not
dealing with problems
Dr. Alejandro Zalnieriunas
Relaxation
1. Go to a quiet environment
2. Take a comfortable position that you can keep for a
while without falling into sleep
3. Use a technique to relax deeply like meditation
4. Take a passive attitude; observe your thoughts without
dwelling on them as they pass through your awareness
Dr. Alejandro Zalnieriunas
Dreams
REM sleep
Dreaming means: Thinking in a different state of consciousness
Dreams help to solve problems that require creativity or visualization
Daily REM1 sleep consolidates memory and reinforces neural
connections/circuits
REM sleep before tests led to more creative solutions2
1. Write down a brief problem statement
2. Once in bed, review the problem for a couple of minutes,
visualize it and tell yourself you want to dream of the solution
3. On awakening, recall any possible trace your dream(s) and invite
more to come
4. Take notes
1) Rapid Eye Movement. 2) Experimental results
Dr. Alejandro Zalnieriunas
Dreams
Let your mind wander (Daydreams)
Mind wander (or daydreaming) means: Shifting attention away from the
current physical or mental task
Daydreams, like normal dreams, relax “cognitive filters” and allow you to
become aware of additional thoughts, sensations etc.
Most people spend between 30 and 47 percent of awake time in
daydreams
1. Review and visualize your problems on a regular basis, allowing
them to move in the unconscious
2. Allow your mind to roam freely
3. Catch yourself when daydreaming, pay attention to the content
of the dreams and take notes
Dr. Alejandro Zalnieriunas
Creativity and ideation in a company
Team creativity
 Creativity is
 The first step
improved further
 Any individual can
working in teams,
improve his
using creativity
creativity
methodology
INDIVIDUAL
CREATIVITY
TEAM
CREATIVITY
 Culture,
management
leadership and tools
can move creativity
to this stage
COMPANY
CREATIVITY
Ideation (company)
Dr. Alejandro Zalnieriunas
Slide
Team creativity techniques
> Brainstorming
> Brain-writing
> 6-3-5
> Five W’s and one H
> Disney creativity strategy
> Six hats
> SCAMPER
> TRIZ/ARIZ
> Creative problem solving (CPS)
Dr. Alejandro Zalnieriunas
Brainstorming
1. Invite people from different areas and backgrounds (diversity).
2. Define and validate the challenge. Ensure everyone
understood the challenge
3. Distribute documentation about the challenge
4. Meeting 3-4 days later (allow for INCUBATION):
– Select a moderator and a recorder
– Phase 1: Idea capture – collect as many ideas as possible,
accept all ideas, no critics, no judgments
– Phase 2: Idea clustering and combination
– Phase 3: Idea selection.
Dr. Alejandro Zalnieriunas
Slide 162
Brain-writting
1. Process like brainstorming
2. Ideas are captured in writing
3. Overcomes inhibition
Dr. Alejandro Zalnieriunas
Slide 163
6-3-5
1. Special case of brain-writing
2. 6 people participate and each write 3 original ideas on a
(his/her) card
3. The 6 people write an idea under each original idea of the
other 5 participants
4. The result are 108 ideas.
6-3-5
Idea 1
Idea 2
Idea 3
Participant 1
Participant 2
Participant 3
Participant 4
Participant 5
Participant 6
Dr. Alejandro Zalnieriunas
Slide 164
Five W’s and one H
1. Who? - Why? - What? - Where? - When? - How?
2. Useful at any level from a formal checklist to complete
informality.
3. To generate data-gathering questions.
4. To generate idea-provoking questions.
5. To check plans, the checklist is a useful tool for planning
implementation strategies.
Dr. Alejandro Zalnieriunas
Slide 165
Disney Creativity Technique
1. Role play.
2. Developed looking at the way Walt Disney was so successful
in turning fantasies into reality.
3. Three vital roles:
– Dreamer
– Realist
– Critic
4. Remember that a critic is someone who should evaluate – not
just point out what is wrong.
Dr. Alejandro Zalnieriunas
Slide 166
Disney Creativity Technique
> Dreamer: This is the visionary that produces the big
picture. With no boundaries, limitations or restraints.
> Realist: This is who organizes and evaluates the plans
to determine what is realistic. Thinks constructively and
devises an action plan. Establishes time frames and
milestones for progress. Makes sure it can be initiated
and maintained by the appropriate person or group.
> Critic: This is who tests the plan, looks for problems,
difficulties and unintended consequences. Thinks of what
could go wrong, what is missing, what the spins-offs will
be.
Dr. Alejandro Zalnieriunas
Slide 167
Six thinking hats
ANALYTIC
ORGANIZER
EMOTIONAL
CREATIVE
CRITICAL
OPTIMISTIC
Dr. Alejandro Zalnieriunas
Slide 168
Six thinking hats
1. The six hats represent six modes of thinking.
2. The six hats system encourages performance rather than ego
defense.
3. People can contribute under any hat even though they
personally support other view.
4. The thinkers should put on or take off hats to indicate the
type of thinking.
Dr. Alejandro Zalnieriunas
Slide 169
Six thinking hats
Speculative
> Optimistic thinking, speculative attitude.
> Emotional thinking, intuition, subjective attitude.
> Creative, associative thinking, constructive attitude.
> Organizing thinking, oversight, big-picture attitude.
> Analytic thinking, facts and figures, objective attitude.
> Critical thinking, risks, problems, objective attitude.
Conservative
Dr. Alejandro Zalnieriunas
SCAMPER
SCAMPER helps to generates alternative ideas.
 After defining the challenge, ask the following questions at each stage of the
session:
> S – Substitute something
> C – Combine it with something else
> A – Adapt something to it
> M – Modify or Magnify it
> P – Put it to some other use
> E – Eliminate something
> R – Reverse or Rearrange it
 SCAMPER rises new ideas at each stage.
Dr. Alejandro Zalnieriunas
Scamper
Substitute
> What/who can be substituted?
> Can (the) rules be changed?
> Other ingredient? Other material?
> Other process or procedure?
> Other place?
> Other approach?
> What else instead?
Dr. Alejandro Zalnieriunas
Scamper
Combine
> What ideas can be combined?
> What purposes can be combined?
> Combine assortments? Ensembles?
> Combine units?
> What other article could be merged with this?
> Can be packaged as a combination?
> What can be combined to multiply possible uses?
Dr. Alejandro Zalnieriunas
Scamper
Adapt
> What else is like this?
> What other idea does this suggest?
> Does the past offer a parallel?
> What idea could we incorporate?
> What else could be adapted?
> What different contexts can we put our concept in?
> What ideas outside our field can we incorporate?
Dr. Alejandro Zalnieriunas
Scamper
Magnify, Modify
> What can be made larger, or extended?
> What can be exaggerated? Overstated?
> What can be added? More time? Higher?...
> What can add extra value? Extra features?
> How can things be altered for the better?
> What can be changed? Meaning, color, sound…?
> Change name?
> Changes in the plan? Process? Marketing?
> Other form? Other package?
Dr. Alejandro Zalnieriunas
Scamper
Put to other uses
> What else can this be used for?
> Are there new ways to use it?
> Other uses if modified?
> Other uses if in other context? Place?
> What else could be made from this?
> Other extensions? Other features?
> Other Markets?
Dr. Alejandro Zalnieriunas
Scamper
Eliminate
> What if this were smaller?
> What should we omit?
> Should we divide it? Split it up?
> Understate?
> Streamline? Make miniature? Compact?
> Subtract? Delete?
> Can (the) rules be eliminated?
> What is not necessary? Convenient?
Dr. Alejandro Zalnieriunas
Scamper
Rearrange, Reverse
> What other arrangement may be better?
> Interchange components?
> Other pattern? Other layout? Other sequence?
> Change pace? Change schedule?
> What are the opposites? The negatives?
> Should we turn it around? Up side down?
> Consider it backwards?
> Reverse roles?
> Do the unexpected?
Dr. Alejandro Zalnieriunas
TRIZ
> Russian creation, widely used today
> It is an attempt to improve on a random approach to
>
>
>
>
innovation and invention
It structures the creativity in paths which have been shown to
yield results
Often it can be shown that the solution to a problem was easy,
if the techniques from other domains were known
In many cases the same basic approach is used time and time
again
It is also possible to classify problems and solutions into
groups, and to simply examine a predefined list of possible
solutions to that particular type of problem.
Dr. Alejandro Zalnieriunas
ARIZ
> Algorithm within TRIZ for complex problems.
> Multi-step process asking questions that integrates pieces of TRIZ.
> ARIZ features:
 Process of problem reformulations
 Logical and disciplined
 Main TRIZ method for solving conflicts.
> ARIZ utilizes:
 Contradictions, scientific effects and standard solutions
> ARIZ is more than 50% problem reformulation! It is only through
this guided reformulation that complex problems can be solved.
Dr. Alejandro Zalnieriunas
Creative Problem Solving (CPS)
> Leonardo Da Vinci was the first to document a CPS approach*
 Curiosita:
Curiosity.
 Dimonstrazione: Test knowledge through experience.
 Sensazione:
Continuous refinement of the senses for clarifying
experience.
 Sfumato:
Embracement of ambiguity, paradox and uncertainty.
 Arte/Scienza:
Balance between science and art, logic and imagination
(“whole brain thinking”).
 Corporalita:
Cultivation of ambidexterity and fitness.
 Connessione:
Recognition for the connectedness of all things and
phenomena („systems thinking“).
*) Source: http://blog.thinkforachange.com/2010/12/20/creative-problem-solving-cps-throughout-history.aspx.
Dr. Alejandro Zalnieriunas
Creative Problem Solving (CPS)
Participant
Team
Experts
Management
• This model can be used to
1
describe many CPS approaches.
2
Ideation
111. Identify a problem or a new idea.
3
3
22. Clarify the problem or new idea
33. Incubate potential solutions (allow
4
5
sufficient time)
5
5
44. Share and combine ideas.
Determine most promising ideas.
Concept
55. Select ideas.
6
7
Dr. Alejandro Zalnieriunas
6
7
6
7
66. Try out ideas / Create prototypes.
7
7
7. Learn from ideas.
Creativity and ideation in a company
Company collective creativity
 Creativity is
 The first step
improved further
 Any individual can
working in teams,
improve his
using creativity
creativity
methodology
INDIVIDUAL
CREATIVITY
TEAM
CREATIVITY
 Culture,
management
leadership and tools
can move creativity
to this stage
COMPANY
CREATIVITY
Ideation (company)
Dr. Alejandro Zalnieriunas
Company creativity
Drivers
INDIVIDUAL CREATIVITY, TEAM CREATIVITY,
COMPANY CREATIVITY
MOTIVATION
INNOVATION
CULTURE
INNOVATION
STRATEGY
VT Innovation Proposal
KNOWLEDGE
Enterprise Strategy
Enterprise Culture
Dr. Alejandro Zalnieriunas
IT TOOLS
Company creativity
Drivers
INDIVIDUAL, TEAM AND COMPANY CREATIVITY
Effective and Efficient
5
MOTIVATION
VT Innovation Proposal
INNOVATION
INNOVATION
CULTURE
STRATEGY
1
2
VT Innovation Proposal
1
1
KNOWLEDGE
2
3
IT TOOLS
4
Enteprie Strategy
Enterprise Culture
Establish the right culture where employees are empowered and success is recognised
2
Align enterprise and innovation strategy
3
Exploit knowledge and intelligence of employees, customers and partners
4
Use state-of-the-art IT tools
5
Motivated employees create more and better
Dr. Alejandro Zalnieriunas
Efficiency and effectiveness
Peter Drucker
Efficiency is doing the thing right.
Effectiveness is doing the right thing.
Peter Drucker (November 19, 1909 – November 11, 2005):
American management consultant, educator, and author,
whose writings contributed to the foundations of the modern business corporation.
He invented the concept known as management by objectives.
Source: Wikipedia
Dr. Alejandro Zalnieriunas
Company creativity
Efficiency and effectiveness
Efficiency
Many Ideas
Engagement
Motivation
CULTURES
Dr. Alejandro Zalnieriunas
Effectiveness
Right answers
Right questions
Coherent goals
STRATEGIES
Company creativity practices
> Idea campaigns
 A problem, question or challenge is formulated
 Specific persons, also external ones, are invited
 The team works in a series of guided meetings on the problem
> Week problems
 Every week a new problem is formulated and ideas are
collected at the end of the week
> Coffee-problems
 Employees pay their coffees with ideas
> Individual idea generation
 Spontaneous, e.g. BBB, dreams
 Purposeful, e.g. mind mapping
Dr. Alejandro Zalnieriunas
Idea Management / Ideation
Definition and description
Definition
Idea Management (IM) is the systematic process
of creating, gathering, and selecting ideas
according to pre-defined criteria.
Description
Large amounts of ideas are generated regularly
 spontaneously or
 as answers to questions or problems,
gathered without discrimination,
and selected according to pre-defined criteria.
Use of resources should be minimized.
Dr. Alejandro Zalnieriunas
Idea Management
Process
Spontanous
-
purposeful
Team Creativity
-
Idea campaigns
Soft information
FEEDBACK LOOP
Dr. Alejandro Zalnieriunas
DEVELOP
-
SELECT
Individual Creativity
GATHER
Problems
Ideas
Ideas and knowledge
Fantasy
Logic
Knowledge
Dr. Alejandro Zalnieriunas
Idea
Knowledge management
DATA BASE
 Employee‘s knowledge
 Employee‘s skills
 External knowledge
 Partner
 Supplier
 Institutions
Dr. Alejandro Zalnieriunas
Idea Management System
Principles
> Software that supports the idea management process
> All users, participants or contributors can




Post (propose) ideas
Comment ideas from others
Propose changes to ideas
Vote for ideas
> Delivers useful information for the selection of ideas
 Idea popularity: Number of comments, contributors or votes
> Boosts efficiency and speed
 Participants get different types of alerts, e.g. about new ideas
or comments.
Dr. Alejandro Zalnieriunas
Idea Management System
Advantages
> Solves coordination problems
 Relevant contributors can access campaigns or "questions of
the week" and co-operate
> Solves synchronization problems
 One contributor "stores" his contribution in the system and
others can read and comment it later
> Mobile ideation (mobile terminals)
 The systems provide interfaces to mobile devices
> Typical example: Support of campaigns
 Participants of a campaign can be freely determined
> Idea management systems support idea challenges as
well as week and coffee problem practices
Dr. Alejandro Zalnieriunas
Idea Management System Template (1/3)
Campaign
Campaign closing date
Nullam a tempus quam. Ut odio dui, vehicula vitae
sollicitudin ac, vulputate a nisi.
30.06.2014, 12:00
Promote idea
Idea
Demote idea
Follow this idea
Details
Attachment
Send this idea to a friend
Your comment
Comment history
Statistics
Idea rank
Promotions
Demotions
Comments
Idea categories (Tags)
Idea author
Promotions rank
Comments rank
Dr. Alejandro Zalnieriunas
Idea Management System Template (2/3)
Campaign
Campaign closing date
Nullam a tempus quam. Ut odio dui, vehicula vitae
sollicitudin ac, vulputate a nisi.
Promote idea
Idea
Nullam a tempus quam. Ut odio dui, vehicula
sollicitudin ac, vulputate a nisi.
Details
30.06.2013, 12:00
Attachment
Lorem ipsum dolor sit amet, consectetur adipiscing
elit. Aenean molestie lacinia sapien, nec aliquam
arcu malesuada sed. Sed consectetur tellus eu odio
pulvinar sollicitudin dictum enim sodales.
Follow this idea
Send this idea to a friend
Your comment
Comment history
Statistics
Idea rank
Promotions
Demotions
Comments
Idea categories (Tags)
lorem, ipsum, tempus,
vehicula, vitae
Dr. Alejandro Zalnieriunas
Idea author
Maria, 15.04.2012, 14:30
Demote idea
Promotions rank
Comments rank
Idea Management System Template (3/3)
Campaign
Campaign closing date
Nullam a tempus quam. Ut odio dui, vehicula vitae
sollicitudin ac, vulputate a nisi.
Promote idea
Idea
Nullam a tempus quam. Ut odio dui, vehicula
sollicitudin ac, vulputate a nisi.
Details
30.06.2013, 12:00
Attachment
Lorem ipsum dolor sit amet, consectetur adipiscing
elit. Aenean molestie lacinia sapien, nec aliquam
arcu malesuada sed. Sed consectetur tellus eu odio
pulvinar sollicitudin dictum enim sodales.
Demote idea
Follow this idea
Send this idea to a friend
Your comment
Comment history
Alex, 15.04.2012, 16:33
Nam quis posuere eros. Aliquam ac enim lacus. Fusce sit
amet lorem mi.
Anna, 16.04.2012, 9:27
Nulla a lectus quis quam porta interdum.
Robert, 16.04.2012, 11:33
Curabitur vulputate ullamcorper elit, et pellentesque
eros mollis nec. Etiam placerat feugiat diam sed pulvinar.
Aenean tristique, diam id volutpat pellentesque,
Idea categories (Tags)
lorem, ipsum, tempus,
vehicula, vitae
Dr. Alejandro Zalnieriunas
Idea author
Maria, 15.04.2012, 14:30
Statistics
Idea rank
8
Promotions
33
Demotions
7
Comments
11
Promotions rank
5
Comments rank
6
Content
>
>
>
>
>
>
>
>
>
>
>
Introduction
Innovation and sustainability in mobile communications
Technology trends and predictions 2015
Creativity and Ideation
Innovation culture
Innovation strategy
Innovation process
Open innovation
Innovation maturity management
Intellectual property rights (IPR)
Startups and entrepreneurship
Dr. Alejandro Zalnieriunas
Innovation Culture
> Definitions
> Innovation Roles
Dr. Alejandro Zalnieriunas
Innovation Culture
PROCESS
CREATIVITY,
IDEATION
INNOVATION
STRATEGY
CULTURE
Dr. Alejandro Zalnieriunas
Innovation Culture
Enterprise
Company Strategy
Innovation Strategy
New ideas,
idea
development
Development,
Implementation
Innovation Culture
Company Culture
Open Innovation
External Ideas
Dr. Alejandro Zalnieriunas
External R&D, Supplier, Partner
Innovation Culture
Enterprise and Innovation Culture
are the most fundamental contributors
to successful Innovation
Culture* is the set of shared values, attitudes,
goals, and practices that characterizes an
Institution, organization or group
Source: www.wikipedia.org
*) Also organisational culture
Dr. Alejandro Zalnieriunas
Slide 202
Innovation Management Layers
Operative
Strategic
Normative
Dr. Alejandro Zalnieriunas
Innovation process, costs, time,
quality, performance.
Resources, technology, knowledge,
markets, supplier, partners,
competitors.
Values, mission, vision.
Organizational Culture
Artifacts
Values
Shared basic
assumptions
Dr. Alejandro Zalnieriunas
Artifacts include any tangible or verbally
identifiable elements in an organization.
Furniture, dress code are examples.
Artifacts are the visible elements in a
culture and they can be recognized by
people not part of the culture.
Values are the rules that use/allow people
to decide what is good and what not, what
to do. This can be expressed in official
philosophies and public statements.
Shared Basic Assumptions are the deeply
embedded, taken-for-granted behaviours
which is usually unconscious, but constitute
the essence of culture.
Innovation Culture – Main Elements
Dr. Alejandro Zalnieriunas
Innovation Culture – Main Elements
Dr. Alejandro Zalnieriunas
Innovation Roles
Subject Matter Experts
(SMEs)
Innovation Sponsor
(Chief Innovation Officer)
Dr. Alejandro Zalnieriunas
Center
of Innovation Excellence
SUPPORT
Innovation Champion
DOING
Innovators
Innovation Roles
Innovators, SMEs
•
•
•
•
Imagine
Collaborate
Execute
Support Innovators (SMEs)
Innovation Champion
• Protects ideas
• Takes care of Center of
Innovation Excellence
• Owns innovation
systems/tools
Dr. Alejandro Zalnieriunas
Innovation Sponsor
• Secures funding and
resources
• Provides strategic alignment
• Approves plans and budgets
• Supports innovation
champion
Center of Innov. Excellence
• Facilitates subject matter
•
•
•
•
experts
Owns document repository
Owns standards and metrics
Owns training
Facilitates creative sessions
Innovators’ Role
Dr. Alejandro Zalnieriunas
Why not?
Some people see things that are
and ask, Why?
Some people dream of things that never were
and ask, Why not?
Some people have to go to work
and don't have time for all that.
George Carlin
Dr. Alejandro Zalnieriunas
Innovator’s Skills
Dr. Alejandro Zalnieriunas
Innovation Champion’s Responsibilities (1/3)
Dr. Alejandro Zalnieriunas
Innovation Champion’s Responsibilities (2/3)
Dr. Alejandro Zalnieriunas
Innovation Champion’s Responsibilities (3/3)
Dr. Alejandro Zalnieriunas
Center of Innovation Excellence (1/2)
Mission
Facilitate and take care of the Innovation Activities
Dr. Alejandro Zalnieriunas
Innovation Center of Excellence (2/2)
Dr. Alejandro Zalnieriunas
Innovation Sponsor‘s Responsibilities
The Innovation Sponsor
must belong to Top Management
and have direct access to CEO
• Secures funding and resources for innovation activities
• Provides strategic alignment between enterprise culture and
innovation culture
• Represents ideas and projects at management level
• Ensures communication from management level
• Ensures culture propagation from management level: “Walk the
Talk”
• Approves plans, road maps and budgets
• Supports innovation champion and center of innovation excellence
Dr. Alejandro Zalnieriunas
Content
>
>
>
>
>
>
>
>
>
>
>
Introduction
Innovation and sustainability in mobile communications
Technology trends and predictions 2015
Creativity and Ideation
Innovation culture
Innovation strategy
Innovation process
Open innovation
Innovation maturity management
Intellectual property rights (IPR)
Startups and entrepreneurship
Dr. Alejandro Zalnieriunas
Innovation Strategy
PROCESS
CREATIVITY,
IDEATION
INNOVATION
STRATEGY
CULTURE
Dr. Alejandro Zalnieriunas
Enterprise Structrure
Example
Customer
Distribution
Production
Sales & Marketing
Development *
HR
Finance
Management
Customer
*) Marketing and Technology
Dr. Alejandro Zalnieriunas
Customer
Care
Customer
Customer
Supply
Chain
Management
Innovation Strategy
Enterprise
Company Strategy
Innovation Strategy
New ideas,
idea
development
Development,
Implementation
Innovation Culture
Company Culture
Open Innovation
External Ideas
Dr. Alejandro Zalnieriunas
External R&D, Supplier, Partner
Strategy concepts
Strategy definition:
„How to… targets“
Vision – Mission –
Goals – Strategy –
Operations
Dr. Alejandro Zalnieriunas
Strategy concepts
Strategy can be
expressed as:
„For the Customer,
against the Competition,
under the Law,
through the Company.“
Dr. Alejandro Zalnieriunas
Strategy concepts
Good Strategies optimize
 Near term value,
 Mid term value,
 Long term value.
Dr. Alejandro Zalnieriunas
Strategic focus
Ensures
Enterprise
survival,
maximizes
profit
Dr. Alejandro Zalnieriunas
Maximizes
Shareholder
value
Maximizes
value for
Stakeholders:
- Customer
- Shareholder
- Employees
- Society
- Humanity/ next
generations
(Sustainability)
Factors with Impact on Innovation Strategy
>
>
>
>
Customer expectations
Financial pressure to reduce costs and increase efficiency
Increased competition: Products, costs, quality
Shorter product life cycles
> Megatrends: Globalization, demographic changes, sustainability…
> Government regulation
> Digital economy (e.g. mobile, social networks, cloud computing,
BI)
Dr. Alejandro Zalnieriunas
Innovation Strategy – Oversight
Dr. Alejandro Zalnieriunas
Innovation Elements
Enterprise Strategy
Enterprise
Innovation Strategy
External:
- R&D
- Suppliers
- Partners
Innovation Process
Innovation Tools*
Innovation Culture
Open Innovation
Enterprise Culture
*) Innovation Tools: Idea Management, Innovation Portfolio Management,
Project Management, Knowledge and Skills Management
Dr. Alejandro Zalnieriunas
Enterprise Strategy and Innovation Strategy
Enterprise Strategy
• Defines how to meet the
enterprise goals
• Through improvement of
• competitive edge
• market share
• revenue and margin growth
• Enterprise goals include the
fulfilment of expectations of
enterprise stakeholders:
• Customers
• Investors
• Employees
• State / Government
• Environment (Sustainability)
• Determines “Which“ are the
innovation goals: When and where
innovation is required to fulfil the
enterprise strategy
Dr. Alejandro Zalnieriunas
Innovation Strategy
• Defines “How“ to meet the
innovation goals
• Is a part of the overall enterprise
strategy
• Ensures its alignment with
enterprise strategy
• Guides the selection of innovation
target areas to maximise
competitive advantage
• Guides decisions on resource
allocation for innovation activities
• Guides management of chances
and risks related to innovation,
R&D and New Product
Development (NPD).
Incremental and Radical Innovations
High
Radical
Technology change
Dr. Alejandro Zalnieriunas
Low
Incremental
High
Product change / Impact
Low
Disruptive Innovation – Example: Hard Drives
Hard Disk Capacity (MB)
1000
100
*) Drive technology
**) Market demand
10
Desktop PC s **
1975
Potables **
1980
Year
1985
Notebooks **
1990
Source: The Innovators Dilema: When New Technologies Cause Great Firms to Fail, Clayton M. Christensen, Harvard Business School Press, 1997
Dr. Alejandro Zalnieriunas
Disruptive Innovations
• Current technology / features
performance
Sustaining Technology
High-end
customer demand
Low-end customer
migration
Low-end
customer demand
Disruptive Technology
time
Dr. Alejandro Zalnieriunas
exceed demand of a
considerable amount of
customers
• Disruptive technology offers
products with poor but
acceptable performance in
some features but advantage
in others, typically price
• Features of disruptive
technologies are improved with
time
Examples
• Mechanical diggers with
hydraulic arms (light)
• Computer disk drives
• HP’s inkjet printers
• IBM’s PCs
Disruptive Innovations
Dimension
Sustaining
Innovations
Low-End
Disruptions
New-Market
Disruptions
Targeted
Performance
Performance must
satisfy most
demanding
customers
Performance
good enough to
satisfy customers
at the low end of
the market
Low performance in
traditional attributes,
but improved
performance in new
attributes
Targeted
Customers
The most
attractive/profitable
customers
Over-served
customers in the
low end
Non-customers:
Historically lack of
money or skills to
use the product
Impact on
Business
Model
Improves/maintains
profit margins by
exploiting existing
processes and cost
structures
New operating or
financial approach
allow higher asset
utilisation and
attractive margins
at low prices
Business model
must make profit at
lower price per unit
sold, also at initially
low production
volumes
Dr. Alejandro Zalnieriunas
What Incremental Innovators Do
> Seeking cost advantages over competition
> Increasing production efficiency changing processes and
organisation
> Making minor modifications to designs
> Adding features to existing products
> Re-innovating – making changes to newly launched products
> Developing a reputation for product quality – branding
> Learning from customers and competitors
Dr. Alejandro Zalnieriunas
What Radical and Disruptive Innovators Do
> Being open to new ideas from outside firm and sector
> Building networks and alliances outside core business
> Continuously scanning technological and markets environments
> Investing in a technology portfolio
> Engaging parts of the organisation in exploratory work
> Bringing new capabilities by acquisition or hiring
> Being aware of new patterns of customer behaviour
> Changing the „way of doing things“ when required – process
innovation
Dr. Alejandro Zalnieriunas
Blue Ocean Strategy (BOS)
> BOS is the result of a study of 150 strategic moves
> BOS is the simultaneous pursuit of differentiation and low cost
> The aim of BOS is not to out-perform the competition, but to create
new market space (the “Blue Ocean”), thereby making the
competition irrelevant
> While innovation has been seen as a random/experimental process,
BOS offers systematic and reproducible methodologies and
processes
> BOS frameworks include: strategy canvas, value curve, four actions
framework, six paths, buyer utility map, and blue ocean idea index.
> These frameworks and tools are designed to be visual
> BOS covers both strategy formulation and strategy execution
Source: www.blueoceanstrategy.com, © Kim & Mauborgne, 2012
Dr. Alejandro Zalnieriunas
Blue Ocean Strategy (BOS)
RED OCEAN STRATEGY
BLUE OCEAN STRATEGY
Compete in existing market space
Create uncontested market space
Beat the competition
Make the competition irrelevant
Focus on existing customers
Focus on non-customers
Exploit existing demand
Create and capture new demand
Make the value-cost tradeoff (create
greater value to customers at a
higher cost or create reasonable
value at a lower cost)
Break the value-cost tradeoff (Seek
greater value to customers and low
cost simultaneously)
Align the whole system of a firm’s
activities with its strategic choice of
differentiation or low cost
Align the whole system of a firm’s
activities in pursuit of differentiation
and low cost.
Source: www.blueoceanstrategy.com, © Kim & Mauborgne, 2005
Dr. Alejandro Zalnieriunas
Blue Ocean Innovation – Value Innovation
> Value Innovation is the simultaneous pursuit of differentiation and low cost.
> Value Innovation focuses on making the competition irrelevant by creating a
leap of value for buyers and for the company, thereby opening up new and
uncontested market space.
Source: www.blueoceanstrategy.com, © Kim & Mauborgne, 2012
Dr. Alejandro Zalnieriunas
Blue Ocean Strategy – 4 Actions Framework
1
2
4
3
Source: www.blueoceanstrategy.com, © Kim & Mauborgne, 2012
Dr. Alejandro Zalnieriunas
Blue Ocean Strategy – Strategy Canvas
3
4
4
4 Actions
1 Reduce
2 Eliminate
1
2
1
3 Raise
4 Create
2
> It captures the current state of play in the known market space. This allows
to understand where the competition is currently investing and the factors
that the industry competes on
> It propels to action by reorienting the focus from competitors to alternatives
and from customers to noncustomers of the industry
Source: www.blueoceanstrategy.com, © Kim & Mauborgne, 2012
TU Alejandro
Dresden Zalnieriunas
Dr.
Slide 242
Slide 242
Blue Ocean Strategy – Buyer Utility Map
> The “Buyer Utility Map”
outlines all the levers
companies can pull to
deliver utility to buyers
(The “Six Utility Levers”)
as well as the different
experiences buyers can
have of a product or
service (The “Buyer
Experience Cycle”)
> This map shows the full range of utility propositions and helps to take
decisions on positioning products or services
Dr. Alejandro Zalnieriunas
BOS – Pioneer-Migrator-Settler-Map (PMS)
> The PMS-map shows the company's current and planned portfolios and the
chances to achieve profitable growth moving from settler (me-too business)
to migrator (better offers than most in the market place) to pioneers which
are the businesses that offer unprecedented value (blue ocean strategies)
Source: www.blueoceanstrategy.com, © Kim & Mauborgne, 2012
Dr. Alejandro Zalnieriunas
BOS – Example: [yellow tail] wine (1/2)
> Australian Casella Wines created 2001 its [yellow tail] wine which became
the fastest growing brand in the histories of the Australian and the U.S.
wine industries and the number one imported wine into the United States
> Their strategy to create a blue ocean was:
r
1) Reduced: Customer confusion. Casella Wines limited their offerings
to just one white wine and one red wine
E
2) Eliminated: Focus from discussions on aging, complexity and
tannin, which intimidated customers
R
3) Raised: Involvement of retailers by giving retail employees
Australian outback clothing that made [yellow tail] wine seem
friendly
C
4) Created: 3 new customer experiences for wine drinking: Easy
drinking (no complex appreciation), ease of selection, and a sense
of fun and adventure
Source: www.blueoceanstrategy.com, © Kim & Mauborgne, 2005
Dr. Alejandro Zalnieriunas
BOS – Example: [yellow tail] (2/2)
2
2
2
1
1
1
4
4
4
3 Involvement of retailers through Australian outback clothing
Source: www.blueoceanstrategy.com, © Kim & Mauborgne, 2005
Dr. Alejandro Zalnieriunas
1 Reduced
2 Eliminated
3 Raised
4 Created
Innovation Types – Summary
Incremental Innovations
• Small improvements of products,
•
•
services, processes, business models
Lead to small impact on markets or
performance
Related uncertainty and therefore chances
and risks are small
Radical Innovations
• Fully new products, services,
•
•
Disruptive Innovations
• Disruptive technology is usually more
•
•
•
simple, more convenient for users and
mostly less expensive
The technology doesn`t cover the
requirements of high end customers
The technology covers the requirements
of low end customers, who adopt the
technology
The disruptive technology is further
developed and captures more and more
customer segments as time evolves
Dr. Alejandro Zalnieriunas
processes, business models
Lead to large impact on markets or
performance
Related uncertainty and therefore
chances and risks are high
Value Innovations
•
•
•
•
•
•
Create uncontested market space
Make the competition irrelevant
Focus on non-customers
Create and capture new demand
Break the value-cost tradeoff (Seek
greater value to customers and low
cost simultaneously)
Align the whole system of a firm’s
activities in pursuit of
differentiation and low cost.
Diffusion of Innovations
100
50
25
0
Innovators
2,5%
Source: en.wikipedia.org
Dr. Alejandro Zalnieriunas
Early
Adopters
13,5%
Early
Majority
34%
Late
Majority
34%
Laggards
16%
Market share (%)
75
Technology ‘S‘ Curves
Performance
Base
Key
Pacing
Emerging
“Total Investment” or “Time”
Focus along ‘S’ curves
•
•
•
•
Emerging: R&D masters technology
Pacing: Technology competence and ability to supply
Key: Feature improvement and market share growth
Base: Focus moves from features and performance to other aspects like
service and pricing
Dr. Alejandro Zalnieriunas
Technology Evolution and Substitution
Performance
Customer Acceptance Distribution
3rd Technology
2nd Technology
Customer Acceptance Average
Customer Migration
1st Technology
Time
Dr. Alejandro Zalnieriunas
Required range and depth of resources
Innovation Strategies according to Pace
Proactive
(Leader)
Active
(fast follower)
Reactive
(follower)
Passive
Required process complexity
Dr. Alejandro Zalnieriunas
Innovation Strategy – Resources
Dr. Alejandro Zalnieriunas
High
Low
Market growth
Strategic Analysis – BCG Matrix
QUESTION MARKS
STARS
Invest
selectively
Invest
POOR DOGS
CASH COWS
Leave
market
Get
profit
Low
High
Market share
Dr. Alejandro Zalnieriunas
High
Medium
Low
Technology attractiveness
Strategic Analysis – Technology Matrix
Low
Medium
Strength of own Resources
Dr. Alejandro Zalnieriunas
High
Strategic Analysis – Chance-Risk-Matrix
Decide
carefully
Low
Chance*
High
Continue
Avoid
Stop
Decide
*) Can be defined through
Low
High
Risk*
Dr. Alejandro Zalnieriunas
likelihoods of appropriate
events
Lecture 5
Dr. Alejandro Zalnieriunas
Content
>
>
>
>
>
>
>
>
>
>
>
Introduction
Innovation and sustainability in mobile communications
Technology trends and predictions 2015
Creativity and Ideation
Innovation culture
Innovation strategy
Innovation process
Open innovation
Innovation maturity management
Intellectual property rights (IPR)
Startups and entrepreneurship
Dr. Alejandro Zalnieriunas
Innovation Processes
> Introduction
 Inputs, enterprise and outputs
> Project and portfolio management
 Objectives, characterization
 Project types and their evaluation
> Process stages in detail
> Evaluation of innovations
> Evaluation of innovation process
Dr. Alejandro Zalnieriunas
Innovation Process in “Innovation 4.0”
PROCESS
INNOVATION
4.0
STRATEGY
CULTURE
Dr. Alejandro Zalnieriunas
Slide 263
Innovation Process – Phases and Gates
Implementation
Development
Ideas phase
Feasibility
Concept
GC
Life
Cycle
GF
GI
GO
GL
Products,
Services,
Business Models,
Processes,
Savings
Dr. Alejandro Zalnieriunas
Slide 264
Innovation Process
Phase Characteristics
Ideas phase
Low Failure Costs
Low Risks
Freedom
Creativity
Controlled Chaos
Loose Control
Dr. Alejandro Zalnieriunas
Development
High Failure Costs
High Risks
Discipline
Structure
Analytics
Tight Control
Implementation
Very High Failure Costs
No Room for wrong Decisions
Project Management (PM)
PM Triangle
Project Management Goals
Functionality / Quality
Deliver Project:
-
In Functionality and Quality1
-
In Time
-
In Budget
Budget
Time
Note 1) “Functionality” means WHAT is to be delivered, “Quality” means HOW (close to functionality) must be delivered
Dr. Alejandro Zalnieriunas
Slide 266
Project Management Principles
> Initial plan

Functionality / quality (specifications), time

Resources and budget allocation
> Functionality / quality monitoring and forecasting ; exception
management
> Time plan monitoring and forecasting; exception management

Progress (compared to plan)

Milestones

Resources
> Budget plan monitoring and forecasting ; exception management

Costs (compared to budgets)
Dr. Alejandro Zalnieriunas
Project Portfolio Management (PPM)
GOAL: Optimization of expected portfolio value
Project 1
Project 2
Project N
Project Portfolio
Dr. Alejandro Zalnieriunas
Slide 268
Project Portfolio Management (PPM)
Major challenge: Decide on resource allocation.
Ideas, project proposals
Resources
Knowledge
- Technology
- Markets
PPM
Evaluation
Decisions
PM
Resource
allocation
Interdisciplinary teams
Dr. Alejandro Zalnieriunas
Executed
Projects
Effectiveness and Efficiency
Challenges
Role of PM and PPM
Need
for
Effectiveness
(WHAT)
Ideation,
Ideas,
Proposals,
PPM
Right Ideas,
Right Projects,
NPV, ROI,
Value
Need
for
Efficiency
(HOW)
Innovation
Process,
PM,
PPM
Functionality /
Quality,
Time-to-Market,
in Budget
Effectiveness ~ Doing right things. Efficiency ~ Doing things right.
Dr. Alejandro Zalnieriunas
Innovation Process
Ideas Phase
Ideas phase
Concept
New ideas
Campaigns
Implementation
Development
Life
Cycle
Feasibility
Incubate,
 Combine 
Discuss,
Develop
Selected
 Ideas
Purpose
Qualify and select ideas
Input
Spontaneous ideas, campaigns (problems to solve)
Tasks
Idea incubation, combination, discussion, development, selection
Tools
Creativity techniques, Idea Management Systems
Decision (GC)
Management, cross-functional team, experts’ advice
Dr. Alejandro Zalnieriunas
Innovation Process
Ideas Phase
Dr. Alejandro Zalnieriunas
Slide 272
Innovation Process
Concept Phase
Development
Ideas phase
Selected
Ideas

Implementation
Concept
Feasibility
Prototypes
Trials
 converge 
Life
Cycle
Plausibility
Study
Purpose
Check idea plausibility (low effort)
Input
Selected ideas from the ideas phase
Tasks
Plausibility study (Commercial and technical, rough estimate of
costs and benefit), build prototype or proof-of-concept (PoC),
perform trial
Tools
Project portfolio management, project management, technical
facilities/lab, instruments for benefit estimation, e.g. market studies
Decision (GF)
Management and cross-functional team based on trial results and
plausibility study
Slide 273
Dr. Alejandro Zalnieriunas
Innovation Process
Concept Phase
Dr. Alejandro Zalnieriunas
Slide 274
Innovation Process
Feasibility Phase
Development
Ideas phase
Concept
Plausibility
Study

Implementation
Life
Cycle
Feasibility
Business Case
Plausibility

Technical Specifications
Study
Purpose
Select ideas/projects to be implemented and launched
Input
Plausibility study with commercial and technical information
Tasks
Create business case with high accuracy estimates for costs and
benefits, create technical specifications for the implementation
phase, assess risk
Tools
Project portfolio management, project management, instruments for
benefit estimation, co-operation with suppliers for costs estimation
Decision (GI)
Management and cross-functional team based on business case
risks and overall project portfolio
Slide 275
Dr. Alejandro Zalnieriunas
Innovation Process
Feasibility Phase
*) Delivers „Feasibility Studies“ for selected ideas
Dr. Alejandro Zalnieriunas
Slide 276
Innovation Process
Implementation Phase
Ideas phase
Implementation
Development
Concept
Business Case
Technical Specifications
Life
Cycle
Feasibility

Final Technical Solution
Commercial Terms
Purpose
Create final solution for operations (technical and commercial)
Input
Business case, technical specifications
Tasks
Create and integrate technical solution, define commercial terms
(pricing, sales campaigns, adverts), train technical and sales staff
Tools
Project portfolio management, project management, co-operation
with suppliers
Decision (GL)
Management and marketing or technology depending on kind of
project
Dr. Alejandro Zalnieriunas
Slide 277
Innovation Process
Implementation Phase
Final solution: Efficient1, scalable, reliable (high MTBF2), maintainable (short
MTTR3). High availability (low “down time”), an ultimate goal, arises from good MTBF
and good MTTR (failures occur seldom and are repaired quickly).
1) Good ratio of output (e.g. revenues, savings) to resources (e.g. time, invest)
2) Mean Time Between Failures
3) Mean Time To Repair
Dr. Alejandro Zalnieriunas
Slide 278
Innovation Process
Life Cycle
Ideas phase
Implementation
Development
Feasibility
Concept
Technical Solution
Commercial Terms
Life
Cycle

Go live
Operate

Optimisation
Maintenance
Purpose
Go live (Product or service launch, start of operations) and
follow up
Input
Technical solution, commercial terms
Tasks
Go live, optimisation and maintenance of products, services and
solutions, measurement of performance and comparison with
estimates made during concept and feasibility phases
Tools
Project portfolio management, metrics
Decision (GO)
Take from market or operations: Management and marketing or
technology depending on kind
of project
Slide 279
Alejandro Zalnieriunas
Slide 279
 Alejandro
TU Dresden
Dr.
Zalnieriunas
Innovation Process
Life Cycle
> Begins with launch to customers or other users, e.g. employees
> Focus on operation excellence and customer care
Dr. Alejandro Zalnieriunas
Slide 280
Innovation Evaluation, Valuation and Metrics
Inputs, Enterprise, Outputs
Enterprise
Cultures
Strategies
Process
INPUTS
- Markets
- Government
policies,
regulation
- Access to
knowhow, IPR
ENTERPRISE
- Process
- Cultures
- Strategies
- Project management
- Portfolio management
Evaluation, Valuation, Metrics
Dr. Alejandro Zalnieriunas
Folie 281
OUTPUTS
(Innovations)
- Products
- Services
- Business Models
- Processes
- Solutions
Innovation Project and Process Evaluation
Measures / metrics for the different Phases
Input metrics, e.g.
Project metrics, e.g.
Process metrics, e.g.
Output metrics, e.g.
R&D budget as %
of revenues
Net Present Value, ROI
Averaged project metrics
% of products launched
in the last 2-3 years
Intern Rate of Return
% of projects that entered
concept phase and led to
commercial success
% of employees
involved in innovation
Time to Market
Time to break even
Dr. Alejandro Zalnieriunas
% of revenues and
margin generated by
new products
Examles of Project Metrics
> Net Present Value (NPV)
> NPV/Invest (Return on Invest, ROI)
> Intern Rate of Return (IRR)
> Time to market
> Time to break even
> % of project budget spent
> % of planed project execution time actually needed
> % of planed functionality/performance/quality actually
achieved (conformance to requirements)
Dr. Alejandro Zalnieriunas
Examples of Process Metrics
> Weighted-averaged project metrics (% of time, budget and
requirements compliance)
> Weighted-averaged project metrics (Time-to-market, timeto-break-even)
> % of projects that concluded the development phase
successfully
> % of projects that entered the development phase and led
to commercial success
> Statistics on NPVs, ROIs and IIRs
> Comparisons of calculated and actual business cases
Dr. Alejandro Zalnieriunas
Examples of Input Metrics
> % of company budget dedicated to innovation
> % of employees involved in innovation
> % of total available employee time dedicated to innovation
> Number of ideas per employee involved in innovation per
year
> Number of external ideas per source (customer, supplier
etc.) per year
> % of projects delayed or stopped due to lack of financial
resources
> % of projects delayed or stopped due to lack of employee
availability
Dr. Alejandro Zalnieriunas
Examples of Output Metrics
> Number of products and services that have been launched
>
>
>
>
in the last N (e.g. 2-3) years
% of live products and services that have been launched in
the last N years
% of live products’ and services’ revenues and margin that
is generated by products that have been launched in the
last N years
Number of products and services that have been launched
in the last N (e.g. 2-3) years compared to competitors
Cost savings generated by innovations that are not older
than N years
Dr. Alejandro Zalnieriunas
Examples of further Metrics
> Number of patents granted in one year.
> Number of patents applications in one year
> Number of patents related to the number of R&D employees
TU Alejandro
Dresden Zalnieriunas
Dr.
Slide 287
Slide 287
Evaluation of Innovations
Non-Financial
> Strategy fit

Customer requirements

Competitor products

Product portfolio, cannibalization
> Technology and supply chain fit
> Enviromental / Sustainability fit

Raw materials, energy, reuse, recycling, …
Dr. Alejandro Zalnieriunas
Evaluation of Innovations
Financial Measures
>
>
>
>
>
Net Present Value (NPV)
Return on Invest (ROI)
Intern Rate of Return (IRR)
Time to Break Even (TBE, tBE)
Auxiliary
 Cash Flow (CF)
 Discounted Cash Flow (DCF)
Dr. Alejandro Zalnieriunas
Financial measures (1/4)
> Cash Flow (CF): Balance of earnings (+) and expenditures (-) in a
certain time period, e.g. quarter or year. Also called cash in-flow.
> Discounted Cash Flow (DCF): The value that a CF at time tc
represents at a reference time, say t0. The DCF is calculated with an
interest rate that equals the “cost of money” that the enterprise
pays. Typical cases are bonds where enterprises pay interests to
investors.
> Net Present Value (NPV): The NPV is the sum of the DCFs of a
project. NPV is a measure for the value of a project that takes the
distribution of CFs over time into consideration. This is necessary
because early CFs impact value of projects more strongly than later
CFs.
> Example: If an enterprise pays 2 Euros at time te to investors that
paid 1 Euro for a bond at time tb then it makes sense to choose a
discount rate so that the DCF of 2 Euros at time te is 1 Euro.
Dr. Alejandro Zalnieriunas
Financial measures (2/4)
> Formulas for the calculation of NPV have the following form.
The difference between the two formulas is that the first one
utilizes annual CFs and te second one quarterly CFs
> The formulas calculate the NPVs as the sums of the DCFs. „y“
>
relates to yearly calculations, „Q“ to quarterly calculations
1/(1+r) is the discount factor. r is the „discount rate“.
Dr. Alejandro Zalnieriunas
Financial measures (3/4)
> “Time to Break Even“ (tBE)or „Pay-Back Time“ is the time span
between the begin of a investment, practically the beginning
of the development phase, and the date when the cumulated
cash flow becomes zero, i.e. the cumulated revenues just
compensate the cumulated costs. During this period of time
money is needed to finance the project
> „Internal Rate of Return“ (IRR) is the value of the “discount
rate” for which the NPV equals zero, i.e. a savings account with
the interest rate „IRR“ would produce the same returns like
the project.
> „Return on Invest“ (ROI) is the quotient between NPV and
investment (CAPEX).
> Most frequently used measures in PPM: ROI, IRR, NPV, tBE
Dr. Alejandro Zalnieriunas
Financial Measures (4/4)
CF, DCF, NPV, tBE (from white board)
Dr. Alejandro Zalnieriunas