Innovation Management
Torino, September 25 2007
Han van der Meer
Content
1. Personal introduction2. Introduction and definition3. Project, process, organisation
What is your definition of innovation ?
Innovation:
Durchsetzung neuer Kombinationen
Schumpeter, 1912
Defendable competitive advantage
innovation
Defense (minimum 3 points)
Intellectual property rights
• patents
• trade mark
• copy right
Cost leadership
• (secret) production knowledge
• special machinery
Entrance barrier (investments)
• development costs
• production costs
• established brand
• high margin for distribution channel
Exclusive relations
• raw materials
• distribution / sales
Circle of success
Defendable competitive advantage
marketshare
%
profit
reinvestment
innovation
Example
Jade
pillows
Pillow
low price,
low interest
Jade Excellent
Innovation is multifunctional
Source: Arthur D. Little, 1992
0% 10% 20% 30% 40% 50% 60%
social
finance
production
marketing
product
In distress you learn to pray
Nood leert bidden
Wooden neck support
Sylvana support
Beautysleeper
The whole of activities aimed
at the making of products,
the implementation of production methods,
as well as serving markets,
that each apart or in combination
are new for the considered organisation.
During
Industrial innovation
Can innovation be controlled
Source: A. D. Little Management Perspectives on Innovation, 1985
controllable but unusual
72%
uncontrollable12%
as usual16%
Are not ‘controllable’
Breakthroughs
Most innovations are
and controllable
incremental
index cash flow
100
200
300
400
500
600
700
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Innovation pays off
Source: (v.d. Zwan, 1992, Cobbenhagen, 2000)Year
invest in market and product innovation (substainable competitive advantage)
invest in cost reducing technology (efficiency)
• Laggards
• Fore runners