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The holistic view of the front end of innovation
Conference on IMTs and New Product Development
Mantova, 17-18 October 2002
Lars Deppe
Stefan Kohn
Dr. Francesca Paoletti
Dr. Andreas Levermann
High competition leads companies to innovate
Front end New product development
Idea generation
Screenin
Idea
Commercialisation
g
3000 Ideas 14 New product developments 1 Market success
Product development time shortens Today
Tomorrow Yesterday
17%
1991 1996
The time from idea to market launch shortens Product life cycle time shortens
The greatest uncertainty is in the front end
• Preparation
Front Uncertainty
• Idea generation
end
• Idea screening
New • Product concept
product
develop- • Prototype
ment development
Commer-
• Market launch
cialisation Information
The target of this investigation was to „catch“ the front end
Innovation
survey
Workshop with
In-depth interviews
innovation
“Catch” the
with big companies
consultants for
SME’s
front end
Point out the success factors of the front end
The innovation survey shows how innovations arise
1. Most ideas are initiated by a flash of genius
2. 24% of the ideas are initiated by the demand of the company
The primary success factor of innovation is systematic work (e.g.
3. trail and error + problem solving)
The idea for a new application results from the consciousness of a
4.
problem or by a fortunate coincidence
The idea for the technical realisation results mostly from trail and
5. error
Culture, strategy and organisation are beneath the process itself
the success factors of the front end of innovation
In-depth interviews with big Workshop with innovation
companys consultants for SME's
Culture Awards for performance Culture of respect
Market --> customer involvement
Strategy Clear target
Technology --> process optimization
Organisation Multi-functional Teams Networking
Process Milestones Milestones
Catch the front end with a holistic view
A holistic view results in a better understanding of the front end
Company strategy
Which factors
Corporate influence the
culture front end?
How can these
Chance Risk factors be
Organisation controlled?
Process
Generation of a vision drives motivation
Innovation Stagnation
Corporate
culture
Chance Risk
Generation of a vision
• Top management must communicate the importance of innovations
• Top management must ensure the funding of innovation projects
• Top management must support further training of staff
Innovative working environment
Innovation Stagnation
Corporate
culture
Chance Risk
Innovative working
environment
• Individuality of the employees must be fostered
• Management must adjust tasks to employee skills
• Performance awards must be available
Effective communication results in better networking
Innovation Stagnation
Corporate
culture
Chance Risk
Effective
communication
• Experience exchange must be ensured
• Job-rotation must be ensured
• Enhance diversity in teams
Information technologies supports communication
Innovation Stagnation
Corporate
culture
Chance Risk
Use of information
technologies
• A web-based ideapool
• Collect good and bad experiences from all innovation projects
• Provide an efficient e-mail and intranet system for communication
The strategy determines the degree of uncertainty
Market Technology
Company strategy
Target Ressources
Product Knowledge
Learning-based Market Radical
strategy to reduce Innovatio innovation „leave the past
high
market
n behind“
uncertainty
Market
uncertainty Incremental Technology
low
Innovation Innovation Learning-based
„business as strategy to reduce
usual“ technical
low high uncertainty
Technology uncertainty
Organisational aspects involves both the internal and the
external structure of the company
Co-operations
„Radical with research
innovation hub“ Institutes or other
companies
Internal External
Organisation
An innovation hub is the best organisation for the idea generation
Business Unit Return to hub
A „Radical Innovation M
Gatherer Hub“
Kill-decision A
• Acts as home Evaluation N
Hunter base for hunters
and gatherers and Go-decision A
Corporate R&D
as a „receiver“ for
Gatherer innovations. Form a project G
team to E
• Implements
launch an
techniques for M
internal
stimulating idea
venture.
generation. E
Business Unit Initiate a spin out.
B • Sets criteria for N
Gatherer idea evaluation. Recommend licensing
the technology. T
The best process for idea generation is the new concept
development (NCD)
• The engine represents the whole
company (all controllable aspects)
• Influencing factors are uncontrollable
Idea aspects, e.g. law and activities of
generation competitors
Idea
selection • The core elements show the phases
Front Opportunity Engine of the process
end core analysis
elements • The modell is non-sequential
Concept
Opportunity • The starting points are variable
identification
Influencing
factors
Process
The holistic view of the front end leads to success of innovation
Market Technology
Company strategy
Corporate
culture Co-operations with
Innovation hub research institutes or
other firms
Chance Risk
Organisation
NCD-process
The Fraunhofer Technology Development Group is an
interdisciplinary development specialist
Basic Research
Competence areas:
Research
• Product development
Industry
Applied
• Production technology
• Management ad Organisation
From vision to reality:
• Fully integrated systems approach
• Effective Implementation
• Resultus with practical application
The competence team „innovation management“ deals with
different aspects of innovation
Planning
Competences
Process of Innovation
Planning of business
Organisation
Venture Services
Managemenr of
cooperations
Management
Marketing
segments
of innovation
Control
Implementation
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