ISTANBUL CHAMBER OF INDUSTRY 6th INDUSTRY CONGRESS
Sustainable Competitiveness:
Industrial Technology and Innovation
November 26- 27, 2007
Arie Nagel, Netherlands/Slovenia
Profile of dr Arie P. Nagel
Education
1960-1964
1971-1975
1990-1992
Career
1969-1981
1971-2006
from 1977 on
1979-1981
1993-1997
apnagel@gmail.com
from 1997 on
2000-2006
2000-2003
from 2004 on
Mechanical Engineering, Amsterdam
University of Eindhoven, Industrial Engineering and
Management Science
PhD program, Thesis on Increasing the Strategic
Innovation Capability of a Firm; nominated for the Igor
Ansoff award
Corus, Ahold and Shell, industrial engineer
University of Eindhoven
Management Consultant, esp. for SME's, S & O
Philips Corporate Strategic Planning
President of ISPIM, International Society for
Professional Innovation Management (www.ispim.org)
Member of International Board of J. of Enterprising
Culture, Singapore (www.worldscinet.com/jec/jec.shtml)
Member of EITIM, European Institute of Technology and
Innovation Management (www.eitim.org)
Partner of 'smart', EC-project on Strategic Alliances
Visiting professor in Technology Management and
Innovation, Ljubljana, co-ordinator of the TM module
Overview
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Technology proves to be important
Creation of new ideas
New Product Development
Success and Failure of New Products
Strategic Alliances
The Innovative, Open Company
Quick Scan
70s
80s
90s
00s
History of Management Science
Daft & Marcic, Understanding Management, Thomson
Ansoff (1965):
Corporate Strategy
MBA’s: Finance,
Law and Marketing
1970:
Technological
Forecasting and
Envisioning the ‘home computer of the future’ in 2004 by RAND Corp. in
the fifties.
the Club of Rome
Mid 70s: Creativity, basis for e.g. ISPIM
80s: Success and Failure in new Product Development
Philiform - Philips
Innovators and Followers (Teece)
Success
Follower
Innovator
Failure
IBM
KODAK
personal computer
instant photography
DUPONT
EMI
teflon
scanner
Innovators and Followers
Apply with the
dominant design?
no
Supplementing
resources available?
no
Can the intellectual
property be protected?
no
Likely to succeed
Likely failure
Look for a partner
Likely failure
Success Factor Grading
1 Not so important
Number of responses
2 Fairly important
0
3 Very important
Superior product
Strong market orientation
International orientation
More predevelopment
Sharp and early product definition
Properly executed launch
Organisational structure and climate
Success Factors
Top management support
Technological and Marketing synergy
Aim at attractive markets
Sharper project selection
Project control / Quality of execution
The resources must be in place
Speed
Stage gate system
Protection of intellectual property
Dominant design
Secure access to Complementary assets
Consumer Innovator / Lead users
Learning
Non-product advantage
2
4
6
8
10
12
14
Cassette Deck
Development time: two years.
The competitor develops a new deck in just half a year.
Now what?
Solutions:
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Concurrent Engineering
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Modular design and Platform design
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Marketeers and Engineers work together in an
early stage
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Rapid prototyping
Stage-Gate according to Cooper
Criteria for selection at the Gates
portfolio
management
Cooperation in the network economy
Access
to knowledge
1. Access
to knowledge
Access
2. Access
to new
to new
markets
markets
R&D, complementary
technology,
share know how
market knowledge,
local party required
Efficiency
3. Efficiency
Clients
4. Clients
do do
notnot
want
want
products,
products,
butbut
tailored
tailored
solutions
solutions
scale,
specialised partner
satisfy a need,
not a demand
Managing Diversity
• from ‘gold seeking’ to synergy with
market, product/application, technology
• PLUS operations fit
• PLUS cultural, human, strategic fit
• yet complementary in competencies!
soft aspects
How to make a company more innovative?
a.
An innovative company should create an
environment of learning and experimenting,
rather than planning.
b. HQ should facilitate the initiatives from
BUs, rather than direct BUs.
c.
Venturing is not ‘just’ for getting new business,
but more and more to create new options.
d. Key to getting knowledge and strengthening
own competencies are strategic alliances.
e. Business teams which strongly disagree (yet
believe in a common objective) are more
innovative than a too well structured set up.
10 factors for an innovative organisation
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Leadership and will to innovate
Appropriate structure
Key individuals
Effective team
Streaching individual capabilities
Extensive communication
High involvement in innovation
Customer focus
Creative climate
Learning organisation
Joe Tidd et al.,
Managing Innovation,
Wiley, 1997 and on,
Chapter 11: Building
the Innovative
Organization.
Copyright Arie Nagel, Netherlands
Copyright Arie Nagel, Netherlands
Copyright Arie Nagel, Netherlands
Some useful books:
Conceptual (C), Instrumental (In), Reader (R)
1.
Brian Twiss, Managing Technological Innovation, Pitman, Longman, London, 1974, 1980, 1986 and 1992. C, In.
2.
Preston G. Smith and Donald G. Reinertsen, Developing Products in Half the Time, New Rules, New Tools, New
York, Van Nostrand Reinhold, 1991. Second ed. in 1998. In.
3.
Steven C. Wheelwright and Kim B. Clark, Revolutionizing Product Development, Quantum Leaps in Speed,
Efficiency, and Quality, New York, The Free Press, 1992. In.
4.
Gary Hamel and C.K. Prahalad, Competing for the Future, Breakthrough Strategies for seizing control of your
industry and creating the markets of tomorrow, Harvard Business School Press, 1994. C.
5.
Stewart Bray, Total Innovation, How to Develop the Products that your Customers want, Pitman Publ./Pearson,
London, 1995. In.
6.
Robert A. Burgelman et al. The Strategic Management of Technology and Innovation, 2nd ed., Irwin, 1996. C, R.
7.
Robert A. Burgelman , Modesto A. Maidique and Steven C. Wheelwright, Strategic Management of Technology
and Innovation, second ed., Irwin, 2001. C, R.
8.
R. G. Cooper, S. J. Edgett, and E. J. Kleinschmidt, Portfolio Management for New Products, Hamilton, Ontario,
McMaster University, 1997. In.
9.
Joe Tidd et al., Managing Innovation, Integrating Technological, Market and Organizational Change, Wiley, 1997.
Second ed. 2001. C.
10.
Robert G. Cooper: Winning at New Products, Accelerating the Process from Idea to Launch, Addison-Wesley,
1993. Third ed. in 2001. In.
11.
V.K. Narayanan, Managing Technology and Innovation for Competitive Advantage, Prentice-Hall, 2001. C.
12.
Henry Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology, Boston,
MA, Harvard Business School Press, 2003. C.
13.
David Probert et al., Bringing Technology and Innovation into the Boardroom, Strategy, Innovation and
Competences for Business Value, European Institute for Technology and Innovation
Management/Palgrave/MacMillan, 2004. C, R.
14.
Melissa A. Schilling: Strategic Management of Technological Innovation, McGraw-Hill/Irwin, New York, 2005. C.