How important is innovation really? Is it just a hype, a buzzword that will fade away soon, or does it really play an important role in how you manage your business today?

1. Innovation
Nonsense, buzzword, or reality?

2. Etymology
Innovation

3. Etymology
Innovation
๏ ... is an old word

4. Etymology
Innovation
๏ ... is an old word
๏ ... that exists in many languages

5. Etymology
Innovation
๏ ... is an old word
๏ ... that exists in many languages
๏ ... and traces back to Latin

6. Etymology
“ innovare ”

7. Etymology
“ innovare ”
๏ ... to renew

8. Etymology
“ innovare ”
๏ ... to renew
๏ ... to introduce something new

9. Modern times
Nowadays the meaning primarily derives from
our management thinking

10. What is innovation?

11. What is innovation?
๏ Innovation, to innovate or to be innovative

12. What is innovation?
๏ Innovation, to innovate or to be innovative
๏ When talking about innovation, one is usually referring to
something that is new

13. What is innovation?
๏ Innovation, to innovate or to be innovative
๏ When talking about innovation, one is usually referring to
something that is new
๏ The focus lies on a product

14. What is innovation?
๏ One can also focus on the process

15. What is innovation?
๏ One can also focus on the process
๏ to stand out and be able to keep standing out

16. How does it work?

17. How does it work?
Innovation can be seen as a systematic way to transform creativity to
something operational

18. Simply said:

19. to be one step ahead !

20. True or false?
Innovation is only important for manufacturers,
engineers and product managers ?

21. True or false?
False

22. True or false?
False
... this is a common misconception, though

23. Let´s take a quick glance back...

24. Let´s take a quick glance back...
๏ When talking about innovation, one is usually referring to
something that is new
๏ The focus lies on a product

25. Let´s take a quick glance back...
๏ When talking about innovation, one is usually referring to
something that is new
๏ The focus lies on a product
๏ One can also focus on the process
๏ to stand out and be able to keep standing out

26. Let´s take a quick glance back...
and
ufacturers
man ir
When talking about innovation, one is usually treferringato the
ely h ve
๏ lik
ineers mos
eng
focus here
something that is new
๏ The focus lies on a product
๏ One can also focus on the process
๏ to stand out and be able to keep standing out

27. ๏ But also manufacturers focus on their processes!

28. ๏ But also manufacturers focus on their processes!
๏ Of course they do!

29. ๏ But also manufacturers focus on their processes!
๏ Of course they do!
๏ They do look at their (production)processes, but the main
argument most probably is to be more effective: to cut costs

30. ๏ But also manufacturers focus on their processes!
๏ Of course they do!
๏ They do look at their (production)processes, but the main
argument most probably is to be more effective: to cut costs
๏ And YES... they can also be innovative here!

31. ๏ But also manufacturers focus on their processes!
๏ Of course they do!
๏ They do look at their (production)processes, but the main
argument most probably is to be more effective: to cut costs
๏ And YES... they can also be innovative here!
๏ Still, a highly cost effective manufacturer with hardly any product
innovations will have a hard time keeping customers in the long run.

32. ๏ But also manufacturers focus on their processes!
๏ Of course they do!
๏ They do look at their (production)processes, but the main
argument most probably is to be more effective: to cut costs
๏ And YES... they can also be innovative here!
๏ Still, a highly cost effective manufacturer with hardly any product
innovations will have a hard time keeping customers in the long run.
๏ It is more about where the main focus should lie.

33. Let´s take a quick glance back...
๏ When talking about innovation, one is usually referring to
something that is new
๏ The focus lies on a product
๏ One can also focus on the process
๏ to stand out and be able to keep standing out

34. Let´s take a quick glance back...
๏ When talking about innovation, one is usually referring to
something that is new
nd
ompanies a
๏ The focus lies on a product trade c ir
ly have the
like
iders most
v
service pro
focus here
๏ One can also focus on the process
๏ to stand out and be able to keep standing out

35. ๏ But also trade companies focus on their products!

36. ๏ But also trade companies focus on their products!
๏ No doubt about it!

37. ๏ But also trade companies focus on their products!
๏ No doubt about it!
๏ They do look at their product program, but the main argument will be
to be more attractive to customers

38. ๏ But also trade companies focus on their products!
๏ No doubt about it!
๏ They do look at their product program, but the main argument will be
to be more attractive to customers
๏ Unless they take part in new product development there is no real
innovation from their hand

39. ๏ But also trade companies focus on their products!
๏ No doubt about it!
๏ They do look at their product program, but the main argument will be
to be more attractive to customers
๏ Unless they take part in new product development there is no real
innovation from their hand
๏ They buy innovative products/ solutions and sell them again

40. ๏ But also trade companies focus on their products!
๏ No doubt about it!
๏ They do look at their product program, but the main argument will be
to be more attractive to customers
๏ Unless they take part in new product development there is no real
innovation from their hand
๏ They buy innovative products/ solutions and sell them again
➡ note: this is a process!

41. ๏ But also trade companies focus on their products!
๏ No doubt about it!
๏ They do look at their product program, but the main argument will be
to be more attractive to customers
๏ Unless they take part in new product development there is no real
innovation from their hand
๏ They buy innovative products/ solutions and sell them again
➡ note: this is a process!
๏ Still, a trade company with a highly innovative product program, but
with poor processes, will have a hard time keeping customers in the
long run.

42. ๏ But also trade companies focus on their products!
๏ No doubt about it!
๏ They do look at their product program, but the main argument will be
to be more attractive to customers
๏ Unless they take part in new product development there is no real
innovation from their hand
๏ They buy innovative products/ solutions and sell them again
➡ note: this is a process!
๏ Still, a trade company with a highly innovative product program, but
with poor processes, will have a hard time keeping customers in the
long run.
๏ It is more about where the main focus should lie.

43. Both go hand in hand and are equally important.

44. Both go hand in hand and are equally important.
just be sure to have your focus right!

45. Innovation strategies and theories

46. Innovation strategies and theories
There are many ways to innovate, but to avoid sidetracking only the two
extremes will be illustrated:

47. Innovation strategies and theories
There are many ways to innovate, but to avoid sidetracking only the two
extremes will be illustrated:
๏ Big Bang theory
• Revolution
• Big impact, long timespan
• Fits to “Western world” cultures
• Dominant in USA, Northern- and Western Europe

48. Innovation strategies and theories
There are many ways to innovate, but to avoid sidetracking only the two
extremes will be illustrated:
๏ Big Bang theory
• Revolution
• Big impact, long timespan
• Fits to “Western world” cultures
• Dominant in USA, Northern- and Western Europe
๏ Continues improvement (Kaizen)
• Evolution
• Little improvements, all the time
• Fits to Asian cultures
• Popularized by Toyota

49. Fine, all this theory...

50. Fine, all this theory...
... but give me something I can use!

51. Conditions to be innovative
๏ Budget
๏ Creativity
๏ Flexibility
๏ Company culture

52. Conditions to be innovative
๏ Budget
๏ Creativity
๏ Flexibility
๏ Company culture

53. Conditions to be innovative
๏ Budget
๏ Creativity
๏ Flexibility
๏ Company culture

54. Conditions to be innovative
๏ Budget
๏ Creativity
๏ Flexibility
๏ Company culture

55. Conditions to be innovative
๏ Budget
๏ Creativity
๏ Flexibility
๏ Company culture

56. Conditions to be innovative
ll
aren´t a
y
ple, wh
m
s that si tive -?-
ti va
If i ies inno
๏ compan
Budget
๏ Creativity
๏ Flexibility
๏ Company culture

57. Being innovative involves:

58. Uncertainty

59. Risk

60. Both are not management´s best friends...

61. But...
....how important is innovation, really?

62. it´s pure survival!

63. Importance of innovation

64. Importance of innovation
๏ Part of a company´s long-term strategy

65. Importance of innovation
๏ Part of a company´s long-term strategy
๏ A possible way to market leadership

66. Importance of innovation
๏ Part of a company´s long-term strategy
๏ A possible way to market leadership
๏ Part of a natural process: PLC (product life cycle)

67. What if...

68. What if...
A company´s strategy is something like:

69. What if...
A company´s strategy is something like:
๏ “... we want to be one of the two most important players in the
market...”

70. What if...
A company´s strategy is something like:
๏ “... we want to be one of the two most important players in the
market...”
๏ “... we want to be in the top 10 of...”

71. What if...
A company´s strategy is something like:
๏ “... we want to be one of the two most important players in the
market...”
๏ “... we want to be in the top 10 of...”
Is innovation in such a case of less importance?

72. No!

73. No!
๏ To BE number two

74. No!
๏ To BE number two
๏ one still has to beat number three, four, etc.

75. No!
๏ To BE number two
๏ one still has to beat number three, four, etc.
๏ If others develop at a faster pace than you...

76. No!
๏ To BE number two
๏ one still has to beat number three, four, etc.
๏ If others develop at a faster pace than you...
๏ You soon end up being number 12

77. 24

78. 31

79. 78

80. Innovation is not the only key to a
company´s development

81. Innovation is not the only key to a
company´s development
But...

82. Innovation is not the only key to a
company´s development
But...
๏ To be innovative is a behavior

83. Innovation is not the only key to a
company´s development
But...
๏ To be innovative is a behavior
๏ A state of mind

84. Innovation is not the only key to a
company´s development
But...
๏ To be innovative is a behavior
๏ A state of mind
... and therefore a relatively easy and low cost parameter to focus on

85. Requirements

86. Requirements
๏ A fertile atmosphere

87. Requirements
๏ A fertile atmosphere
๏ What is that?

88. Requirements
๏ A fertile atmosphere
๏ What is that?
๏ It can be many things, for people are different

89. Requirements
๏ A fertile atmosphere
๏ What is that?
๏ It can be many things, for people are different
๏ Common values express, it should be a place that

90. Requirements
๏ A fertile atmosphere
๏ What is that?
๏ It can be many things, for people are different
๏ Common values express, it should be a place that
๏ ... ensures you are not continuously interrupted

91. Requirements
๏ A fertile atmosphere
๏ What is that?
๏ It can be many things, for people are different
๏ Common values express, it should be a place that
๏ ... ensures you are not continuously interrupted
๏ ... has a positive effect on ones mood

92. Requirements
๏ A fertile atmosphere
๏ What is that?
๏ It can be many things, for people are different
๏ Common values express, it should be a place that
๏ ... ensures you are not continuously interrupted
๏ ... has a positive effect on ones mood
๏ ... and ones way of thinking

93. Requirements
๏ No prioritization of, or focus on, direct tangible results

94. Requirements
๏ Support from direct colleagues and supervisor is of major
importance

95. Sum up:
๏ a fertile atmosphere
๏ No prioritization of, or focus on,
direct tangible results
๏ Support from colleagues and
supervisor

96. Is that it?

97. Is that it?
๏ YES !

98. Is that it?
๏ YES !
๏ That is all there is to it to become innovative!

99. Is that it?
๏ YES !
๏ That is all there is to it to become innovative!
๏ Most other things depend on the innovative solution one comes up
with

100. You have all of this under control?

101. You have all of this under control?
Then now it is time to consider the following important factors:

102. You have all of this under control?
Then now it is time to consider the following important factors:
๏ Feasibility

103. You have all of this under control?
Then now it is time to consider the following important factors:
๏ Feasibility
๏ Human capital

104. You have all of this under control?
Then now it is time to consider the following important factors:
๏ Feasibility
๏ Human capital
๏ Workload

105. You have all of this under control?
Then now it is time to consider the following important factors:
๏ Feasibility
๏ Human capital
๏ Workload
๏ Outsourcing?

106. You have all of this under control?
Then now it is time to consider the following important factors:
๏ Feasibility
๏ Human capital
๏ Workload
๏ Outsourcing?
๏ Budget & financing

107. You have all of this under control?
Then now it is time to consider the following important factors:
๏ Feasibility
๏ Human capital
๏ Workload
๏ Outsourcing?
๏ Budget & financing
๏ Impact

108. You have all of this under control?
Then now it is time to consider the following important factors:
๏ Feasibility
๏ Human capital
๏ Workload
๏ Outsourcing?
๏ Budget & financing
๏ Impact
๏ Consequences

109. You have all of this under control?
Then now it is time to consider the following important factors:
๏ Feasibility
๏ Human capital
๏ Workload
๏ Outsourcing?
๏ Budget & financing
๏ Impact
๏ Consequences
๏ Timing

110. You have all of this under control?
Then now it is time to consider the following important factors:
๏ Feasibility
๏ Human capital
๏ Workload
๏ Outsourcing?
๏ Budget & financing
๏ Impact
๏ Consequences
๏ Timing
๏ etc.

111. Remember: To be innovative is a state of mind

112. Therefore...
Innovation is independent of
budgets, structure and rules

113. or, like a wise man once said:

114. or, like a wise man once said:
“Innovation is not the product of logical thought,
although the result is tied to logical structure.”
Albert Einstein

115. The crisis! (financial crisis 2008/2009)

116. The crisis! (financial crisis 2008/2009)
๏ All that innovation chat sounds fine, but we are in the middle of a
financial crisis...

117. The crisis! (financial crisis 2008/2009)
๏ All that innovation chat sounds fine, but we are in the middle of a
financial crisis...
๏ There are more important things to concentrate on at the moment...

118. The crisis! (financial crisis 2008/2009)
๏ All that innovation chat sounds fine, but we are in the middle of a
financial crisis...
๏ There are more important things to concentrate on at the moment...
๏ Besides, we are long behind budget...

119. Recognize these statements?

120. Recognize these statements?
Especially in times of crisis it is important to be creative,
think out of the box and ...

121. Recognize these statements?
Especially in times of crisis it is important to be creative,
think out of the box and ...
... be innovative

122. Why?

123. Why?
“a future oriented
strategy, based on a
companies´ individual
strengths and specific
needs of it´s target
group(s), contributes to
the innovative succes
through times of crises
and recession.”

124. Right! What does that mean?

125. Right! What does that mean?
What are the effects of a crisis on a company?

126. Right! What does that mean?
What are the effects of a crisis on a company?
๏ Less orders and/ or contracts

127. Right! What does that mean?
What are the effects of a crisis on a company?
๏ Less orders and/ or contracts
๏ Poor economic results

128. Right! What does that mean?
What are the effects of a crisis on a company?
๏ Less orders and/ or contracts
๏ Poor economic results
๏ Still got your job?

129. Right! What does that mean?
What are the effects of a crisis on a company?
๏ Less orders and/ or contracts
๏ Poor economic results
๏ Still got your job?
๏ Many companies are downsizing or went bankrupt

130. Right! What does that mean?
What are the effects of a crisis on a company?
๏ Less orders and/ or contracts
๏ Should result in more time...
๏ Poor economic results
๏ Still got your job?
๏ Many companies are downsizing or went bankrupt

131. Right! What does that mean?
What are the effects of a crisis on a company?
๏ Less orders and/ or contracts
๏ Should result in more time...
๏ Poor economic results
๏ Should result in more creativity...
๏ ... and out of the box thinking (to reach budget)
๏ Still got your job?
๏ Many companies are downsizing or went bankrupt

132. Right! What does that mean?
What are the effects of a crisis on a company?
๏ Less orders and/ or contracts
๏ Should result in more time...
๏ Poor economic results
๏ Should result in more creativity...
๏ ... and out of the box thinking (to reach budget)
๏ Still got your job?
๏ Many companies are downsizing or went bankrupt
๏ Should result in more “space” on the market, since competitors
lose customers and therewith market share

133. If your company did not
go bankrupt by now,
actually all conditions
for growth are present

134. If your company did not
go bankrupt by now,
actually all conditions
for growth are present
If you dare to invest in
innovation!

135. What was innovation again?

136. What was innovation again?
To be one step ahead.

137. Dare you be one step ahead?

138. Thank you for your time and attention!
Ralph Lambers
ralphlambers @ hotmail.com
www.xing.com/profile/Ralph_Lambers