Innovasjon i norsk næringsliv og faktorer av betydning for

Innovasjon i norsk næringsliv
og faktorer av betydning for
innovasjonsprosessen
Business Area Manager
Thor Kamfjord / www.norner.no
Definisjoner
• Produktinnovasjon
• Produktinnovasjon er en vare eller tjeneste som enten er ny eller vesentlig
forbedret med hensyn til dens egenskaper, tekniske spesifikasjoner, innebygd
software eller andre immaterielle komponenter eller brukervennlighet.
Innovasjonen skal være ny for foretaket; den må ikke nødvendigvis være ny for
markedet
• Prosessinnovasjon
• Prosessinnovasjon omfatter nye eller vesentlig forbedrede
produksjonsteknologi/- metoder og nye eller vesentlige forbedrede metoder for
levering av varer og tjenester. Innovasjonen skal være ny for foretaket; foretaket
må ikke nødvendigvis være den første til å introdusere denne prosessen
• Innovative foretak
• Foretak som enten har introdusert nye eller vesentlige endrede varer eller
tjenester på markedet eller tatt i bruk nye eller vesentlig endrede prosesser i
løpet av de siste tre årene.
2
Andelen norske foretak som
introduserer innovasjoner er redusert!
• 24% av foretakene har lansert
nye produkter og/eller prosesser
i løpet av 2008-2010.
7% reduksjon i løpet av 4 år!
• 5% av foretakene har i perioden
hatt pågående innovasjonsprosjekter eller avbrutt disse
uten at det resulterte i
innovasjon i foretaket.
3
Færre samarbeider om innovasjon!
• Færre og kun 28% av de
innovative foretakene
samarbeider med andre foretak
eller institusjoner om
innovasjonsutviklingen.
8% reduksjon i løpet av 2 år!
• Foretakene som samarbeider
har en markant økning i antall
forskjellige samarbeidspartnere,
som øker andelen av
samarbeidende foretak for alle
partnertyper
4
Formål med innovasjonsaktiviteten
varierer mpt. bedriftsstørrelse!
>= 500
Forbedre helse eller sikkerhet for
ansatte
>= 500
Redusere miljømessige effekter
>= 500
Redusere material- og energikostnader
pr. produsert enhet
>= 500
Redusere arbeidskostnader pr.
produsert enhet
Øke kapasitet for produksjon av varer
eller tjenester
200-499
Forbedre fleksibilitet for produksjon av
varer eller tjenester
>= 500
Forbedre kvalitet i varer eller tjenester
>= 500
Gå inn i nye markeder eller øke
markedsandel
>= 500
Erstatte utdaterte produkter eller
prosesser
>= 500
200-499
100-199
50-99
20-49
19-20
5-9
Utvide spekter av varer eller tjenester
0
20
40
60
Andel foretak som har oppgitt gjeldende formål til å være svært viktig [%]
5
Januar 2012, Statistisk sentralbyrå
Antall
ansatte
80
Mangel på finansiering er hemmende!
• Andelen foretak rapporterer at
• SSBs undersøkelse viser at
hemmende faktorer har vært
problemet først og fremst er
viktig for å hindre eller begrense finansiering og grundervilkårene
deres innovasjonsaktivitet har
ved oppstarten..
økt.
• Det er ikke ideer det er mangel
• Innovative foretak opplever flest på….
hindringer
• Viktigste hindring er økonomi:
• For høye innovasjonskostnader
• Mangel på finansiering eksternt
• Mangel på finansiering internt
6
Hemmende faktorer i industrien med
innovasjons aktivitet er finansiering!
Alle faktorer "ikke relevant"
Ikke behov på grunn av manglende
etterspørsel i markedet
Ikke behov på grunn av tidligere
innovasjoner i foretaket
Usikker etterspørsel etter nye varer og
tjenester
5-9
Markedet dominert av etablerte foretak
Vanskelig å finne samarbeids-partner
for innovasjon
Mangel på markedsinformasjon
Mangel på teknologisk informasjon
Problemer med å holde på eller
rekruttere kvalifisert personell
20-49
10-19
Mangel på passende finansiering fra
kilder utenfor foretaket
>= 500
5-9
10-19
5-9
Mangel på finansiering innen foretaket
eller konsernet
200-499
100-199
50-99
20-49
Antall
ansatte
19-20
5-9
For høye innovasjonskostnader
0
7
Januar 2012, Statistisk sentralbyrå
20
40
60
80
Andel som har oppgitt gjeldende faktor til å være av stor betydning [%]
100
Hemmende faktorer i industrien uten
innovasjons aktivitet:
Alle faktorer "ikke relevant"
Ikke behov på grunn av manglende
etterspørsel i markedet
200-499
Ikke behov på grunn av tidligere
innovasjoner i foretaket
200-499
Usikker etterspørsel etter nye varer og
tjenester
Markedet dominert av etablerte foretak
Vanskelig å finne samarbeids-partner
for innovasjon
200-499
Mangel på markedsinformasjon
200-499
Mangel på teknologisk informasjon
200-499
Problemer med å holde på eller
rekruttere kvalifisert personell
20-49
Mangel på passende finansiering fra
kilder utenfor foretaket
5-9
>= 500
200-499
100-199
Mangel på finansiering innen foretaket
eller konsernet
50-99
20-49
Antall
ansatte
19-20
5-9
For høye innovasjonskostnader
0
8
Januar 2012, Statistisk sentralbyrå
20
40
Andel som har oppgitt gjeldende faktor til å være av stor betydning [%]
60
Viktigste informasjonskilder til innovasjon
er internt, kunder og leverandører!
Bransjeorganisasjoner
Faglige tidsskrifter eller
publikasjoner
Faglige konf., møter, messer og
utstillinger
Off./priv. forsknings- institutter
Universitet eller høgskoler
Kommersielle laboratorier/FoU-foretak
Konsulenter, konsulent-foretak
Konkurrenter eller andre foretak i
samme bransje
Klienter eller kunder
Leverandører av utstyr, materiell,
komponenter eller dataprogram
>= 500
200-499
100-199
50-99
20-49
10-19
Interne kilder innen foretaket eller
konsernet
0
9
Januar 2012, Statistisk sentralbyrå
20
40
60
80
Informasjonskilder for innovasjonsaktivitet av stor betydning [%]
Antall
ansatte
100
Produktinnovasjoner gjøres primært
uten eksternt samarbeid!
I hovedsak andre foretak eller
institusjoner
Eget foretak ved å modifisere varer
opprinnelig utviklet av andre
Eget foretak i samarbeid med andre
Eget foretak i samarbeid med eget
konsern
>= 500
200-499
100-199
50-99
20-49
10-19
4-9
I hovedsak eget foretak
0
10
Januar 2012, Statistisk sentralbyrå
20
40
60
Produkter/varer ble utviklet av [%]
80
100
SMB bedrifter samarbeider med kunder,
men lite med FoU-miljøer!
Off./priv. forskningsinstitutter
Universitet eller høgskoler
Kommersielle
laboratorier/FoU-foretak
Konsulentforetak
Konkurrenter
Klienter eller kunder
Eget foretak i samarbeid med andre
Leverandører
Andre foretak i samme konsern
10-19
5-9
0
11
Januar 2012, Statistisk sentralbyrå
200-499
100-199
50-99
20-49
20
>= 500
40
60
80
Prosent av foretak med innovasjonssamarbeid [%]
100
FoU har fylt opp ordrebøkene og antall
ansatte må dobles!
• I 2011 fikk Farsund Aluminium Casting prisen
”årets ingeniørbragd” og må øke
produksjonen med 300 prosent
• For om lag tre år siden ble bedriften slått konkurs.
• Bedriften hadde kompetanse på aluminium og
metallrenhet, samt tilgang på metall av svært god
kvalitet.
• SkatteFunn gav mulighet til å starte FoUvirksomhet.
• BIA gav mulighet til flere
innovasjonsprosjekter og etablering av viktig
samarbeid som har vært avgjørende!
• Automatisert prosessovervåking og forbedring av
metoder.
• Nye og bedre slitebestandige aluminiumslegeringer
og støpeprosesser
12
10% av omsetning til FoU har gitt
formidabel omsetningsvekst!
• Calora Subsea satser strategisk • ”har utviklet et nisjeprodukt innen et
på bruk av FoU for videre vekst.
marked og en bransje…..tilfredstilt
• Har et utbredt eksternt samarbeid de krav som statuettene for prisen
med ledende kompetansemiljøer. setter til at prisvinneren gjennom
innovasjon, nytekning og vilje til å
• Benytter SkatteFunn og IFU!
lykkes…..et eksempel til
• Gründerprisen 2011
etterfølgelse”
4.0
45,000
3.0
30,000
15,000
0
2007
13
MNOK5.0
Resultat 2.0
Omsetning
1.0
2008
Driftsår
2009
0.0
2010
Resultat etter skatt
Omsetning
MNOK60,000
Innovation
– important for nations, regions
and companies
Why is innovation important?
External
forces
Market
Environment
Political
People
Financial
Economical
Social
Technological
&
organisation
Companies
15
Nations & Regions
Legislative
Why is it important for companies?
Market
• To survive adverse changes in operating circumstances
• To make life easier for their customers and help them improve their
businesses
• To gain competitive advantage
• To protect market share
• To reposition an organisation and raise its market profile
• To lead the market and reinforce a reputation as market leader
• To open new horizons so as to get out of a rut or avenues with
limited potential
16
Why is it important for companies?
External forces
• To comply with legislation (actual or anticipated)
• To reduce competition and/or the influence of competitors
People and Organization
• To stimulate staff with interesting and challenging work
• To attract and retain higher calibre staff
• To provide stability for the workforce
• To encourage those with good ideas to approach the company
• To attract alliance partners
17
Why is it important for companies?
Financial
• To attract extra funding
Table: Booz & Company – Top 10 most innovative companies
Company R&D spending 2009
Sales
Intensitiy
$US mill.
Rank
Apple
1.333
81
42.905
3.3
Google
2.843
44
23.651
12.0
GE
3.300
35
155.777
2.1
–In the knowledge-driven
economy, innovation it vital for
achievement in the business
world.
Toyota
7.822
4
204.363
3.8
Microsoft
9.010
2
58.437
15.4
P&G
2.044
58
79.029
2.6
IBM
5.820
12
95.759
6.1
–Success in innovation is
determined not by how much
you spend, but rather by how
you spend it.
Samsung
6.002
10
109.541
5.5
Intel
5.653
13
35.127
16.1
• To raise margins and profitability
• To drive total shareholder
returns
$US mill % of sales
18
“The Global Innovation 1000. How the Top Innovators Keep Winning.” strategy + business Issue 61 p 12.
Innovation can be much less risky than
doing nothing!
• A new idea might not work, but in many cases, not innovating is
even riskier.
• Entrepreneurs shift resources from areas of low productivity and
yield to areas of higher productivity and yield.
• There is a risk they may not succeed. But if they are even moderately
successful, the returns should be more than adequate to offset whatever risk
there might be.
• Nothing could be as risky as “optimizing” where the proper and
profitable course is innovation, that is, where the opportunities for
innovation already exist.
19
Harward Business Review, Jan. 2008, Innovation Killers, C.M. Christensen, S.P. Kaufman, W.C.Shih
In order to innovate you must
learn to live with and
emrabrace uncertainty!
Seven key areas to look for innovation!
Incongruity
Unexpected
occurences
Industry
&
Process
needs
Demographic
changes
market
needs
in
perception
New
knowlegde
21
Changes
How to tell if an industry is primed for
innovation?
(1/7)
• Unexpected occurences (often include failures)
• Ford planned the Edsel, the most carefully designed car to
that point in American automotive history, to give the
company a full product line with which to compete with
General Motors
• When it bombed (1960), despite all the planning, market
research, and design that had gone into it, Ford realized
that something was happening in the automobile market
that ran counter to the basic assumptions on which GM and
everyone else had been designing and marketing cars.
• No longer was the market segmented primarily on income
groups; the new principle of segmentation was what we now
call “lifestyles” instread of income groups.
• Ford’s response was the Mustang (1964), a car that gave
the company a distinct personality and reestablished it as
an industry leader.
22
How to tell if an industry is primed for
innovation?
(2/7)
• Incongruities - differences between expectations
and results, or between beliefs and reality
• In the shipping industry it was a long time believed that the
best way to drive down costs was to reduce the time it took
to get between ports.
• However, the real problem in shipping is when the ship is
idle and the best way to increase returns is to get in and out
of port as quickly as possible.
• Recognising this incongruity is what led to the invention of
containerization – which almost immediately led to a 60%
reduction in shipping costs.
• A shipping container is about as low as low-tech gets, but
the container is one of the primary drivers of the huge
increase in international trade from the end of World War II
to now – it’s impact has been greater than that of all the
high tech gear that gets shipped around…..
23
How to tell if an industry is primed for
innovation?
(3/7)
• Process needs - arising from problems
within a production process
• The dry plate photography was invented in 1860 and
quickly became very popular.
• However, a big impediment to amateur photography
was the need for the use of heavy glass plates.
• George Eastman saw this process problem, and
worked to replace the glass plates with cellulose film
(1884).
• Doing so is what led to a market-dominant position for
his company, Kodak, within 10 years of the
introduction of his lightweight camera.
• Now, we use our cell phones….
24
How to tell if an industry is primed for
innovation?
(4/7)
• Industry and market changes
• Changes in industry structure have created massive
innovation opportunities for e.g. health care providers.
• During the past ten or 15 years, independent surgical
and psychiatric clinics, emergency centers, and health
maintainance organisations (US) have opened
throughout the countries
• Comparable opportunities in telecommunications
followed industry upheavals — in transmission, in
equipment
• Structural changes now driven by the internet in a
wide range of industries.
25
How to tell if an industry is primed for
innovation?
(5/7)
• Demographic changes
• Japan is ahead in robotics, as they knew in 1970 that
there was both a baby boom and an education
explosion.
• The number of blue-collar manufacturing workers
would decline. Everyone knew — but only the
Japanese took action.
• It is enormous opportunities provided by the increase
in ageing consumers that we are currently going
through.
• Demographic changes are usually fairly predictable,
but often ignored….
• Europe: Ageing population, low birth rates, changing
family structures and migration
26
How to tell if an industry is primed for
innovation?
(6/7)
• Changes in Perception
• In the last decades, health has improved with
unprecedented speed, whether measured by mortality
rates for the newborn, survival rates for the very old,
the incidence of cancers (other than lung cancer),
cancer cure rates, or other factors.
• Even so, collective hypochondria is evident and never
before has there been so much concern with or fear
about health.
• Rather than rejoicing in great improvements in health,
people seem to be emphasizing how far away they
still are from immortality.
• This view of things has created many opportunities for
innovations: markets for new health care magazines,
for exercise classes and jogging equipment, and for
all kinds of health foods.
27
How to tell if an industry is primed for
innovation?
(7/7)
• New knowlegde - opportunities that arise
through invention
• Often this is the only one of these drivers that we
consider.
• Knowledge-based innovations require long lead times
and the convergence of different kinds of knowledge.
• The computer required knowledge that was available
by 1918, but the first operational digital computer did
not appear until 1946.
• Purposeful innovation begins with looking, asking, and
listening.
Work out analytically what innovation is needed to satisfy a specific opportunity!
28
Innovation is of vital importance
for EC!
⇓
Significant investments and
available funding schemes!
Europe possesses extraordinary potential
and needs industrial innovation!
• Economic globalization has changed the world's economic order,
bringing new challenges and opportunities.
• Europe cannot compete in this new environment unless more
innovative and meeting consumers' needs and preferences effectively.
• Europe has a longstanding tradition of producing breakthrough
inventions; wealth of creative people building cultural diversity.
• Europe is one of the largest single markets in the world, where
innovative products and services may be commercialized on a large
scale.
• European Commission is implementing policies and programmes to
increase innovativeness improving competitiveness,
sustainability and job creation.
30
Europe’s 23 million SMEs are the
lifeblood of Europe’s economy!
• Accounting for over 98% of businesses
• Providing two thirds of the total private
employment
• Contribute to more than half of the total
value-added created by businesses
• Creating around 80% of new jobs
created over the past five years
“SMEs are key in ensuring the
economic recovery of the European
Union. This is why they should be
encouraged wherever possible.
Antonio Tajani, Vice President of the European Commission,
Industry and Entrepreneurship
31
What are an SME?
• Small and medium-sized enterprises (SMEs) are defined as
companies with fewer than 250 employees and which are
independent from larger companies. In addition, they have an
annual turnover up to €50 million or an annual balance sheet up to
€43 million.
• There are three types of SME:
• Micro-enterprises have fewer than 10 employees
• Small enterprises have between 10 and 49 employees
• Medium-sized enterprises have between 50 and 249 employees
• Even before the economic downturn began, many small firms had
trouble getting financing they needed for growth or innovation….
• 15% of the budget of the Cooperation Programme of FP7
(i.e. €5 billion) is allocated to SMEs
32
http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/sme-definition/index_en.htm
SMEs in Norway contribute more than
EU the average, but innovate less!
Sales of new to market and new to firm
innovations (% of turnover)
• More the 99% of companies are
SMEs and contribute about 80%
of country´s value added.
13
3
30
SMEs innovating in-house (% of SMEs)
25
SMEs introducing marketing or
organizational innovations (% of SMEs),
• SME sector expands rapidly:
39
More than 100,000 new jobs
created by SMEs in 2003-2009.
31
SMEs introducing product or process
innovations (% of SMEs)
34
• As with the EU, more than 9 out
of 10 SMEs businesses are
micro-firms.
29
Innovative SMEs collaborating with
others (% of SMEs)
11
13
SMEs participating in EU funded
research (# per 100.000 SMEs)
EU
21
Norway
0
10
26
20
[%]
30
40
• Microfirms that account for more
than half (55%) of gross value
added, which is 30% more than
EU average.
33
European Commission, Enterprise and Industry, Small Business Act (SBA) Fact Sheet 2010/2011, Norway
Company structure in Norway,
selected municipalities
Nord-Trøndelag
8
43
129
429
10-19 (Small) 719
5-9 (Micro)
1,163
1-4 (Micro )
3,022
43
145
327
20-49 (Small)
999
10-19 (Small)
5-9 (Micro)
Sør-Trøndelag
Norway in total
# employees # companies
1-4
105.174
5-9
38.951
10-19
26.325
20-49
17.443
50-99
5.007
100-249
≥ 250
1,581
2 286
643
2,182
1-4 (Micro)
5,818
16
98
227
20-49 (Small) 782
10-19 (Small)
1,148
5-9 (Micro)
Vestfold
9
Telemark
66
20-49 (Small)
10-19 (Small)
5-9 (Micro)
137
1,784
661
889
34
Januar 2012, Statistisk sentralbyrå
5,157
1,363
1-4 (Micro)
0
1-4 (Micro)
2,000
3,583
4,000
Antall bedrifter, 01.01.2012
6,000
SMEs can get significant innovation
support in FP7! (and Horizon 2020..)
• A grant for research, not a loan
• Bottom-up approach, no thematic focus
• The grant covers a big part, but not all.
• Participants, SMEs as well, need to co-finance
• Research for SMEs:
• Low to medium technology SMEs with
little or no research capability
• Research intensive SMEs that need to outsource
research to complement their core research capability
• Strengthening the competitiveness of the SMEs
• Research for SME associations:
• SME associations representing their members and
their common technical problems
• Improve industrial competitiveness
35
FP7 SME projects – what?
• To do “Things that SMEs want but can’t
do”
• New product or process, ‘pre-commercial’
• To be USED by consumer or by SMEs
• Not “thematic” – any project is good
• 20% research, 80% development and
dissemination
• Last for 2-3 years
• To “pre-production prototype” stage
• Then a year or so to commercialize
• RTOs do all the R&D
• And are fully paid for it
36
RTD1
SME1
SM
2
E2
D
RT
SME3
In order to recieve EC funding you need:
A biz proposal supported facts & logic!
• The story for the evaluator – “A logic train”
• NIT – Need, Idea, Technology
• With barriers in between
• And your project as the way to overcome them
• An impact being BIG and HARD ~ €100 m€ + plus a technical
challenge
37
If EC get convinced you will:
• Get EC stimulation and support by reducing the financial and
technical risks
• Own or be a part of a project that will change your business
• Signficant amount of R&D done by experts
• Be a part of a new value chain
• Network with European customers
• Intergration with ”big user” in the project
• Own the results and the Intellectual Property Rights
38
So….to obtain funding you need a
project which is:
• BIG ~50 m€ + SME Opportunity
• HARD ~ Significant Technical Barriers
• But not too significant!
So you need to write a story:
• A Worthy European Need
• A Clever Idea
• Supported by Technology
• Be able to deliver
39
The “Logic Train” or NIT will show that:
• We understand the Needs
• What the Problem looks like for
EC / SMEs
• Vision of Success
⇒ Changes needed
• We have the best Idea
• How it meets the needs
• Deliverables to make the
changes
• We know the Technical solution
• Developments
• Research
40
In order to have a good NIT you need
the SMART objectives!
• Specific
• Objectives should specify what you want to achieve.
• Measurable
• You should be able to measure whether you are meeting the objectives or not.
• Achievable
• Are the objectives you set believable?
• Realistic
• Can you realistically achieve the objectives with the resources you have?
• Time Bound
• When do you want to achieve the set objectives?
41
Clear understanding of the FAB needs
to be developed and communicated!
• Feature
• Describes IT
• Can be measured / held
• Advantage (Application)
• What YOU can usefully do with IT
• Use a Verb
• Benefit
• The good way YOUR needs are met
• Political
• Threats from USA & Japan & SE Asia
• Environmental
• CO2, energy, wastes
• Social
• Deaths, suffering, social inclusion
• Economic
• Jobs, Competitiveness
• Technological
• New threats
• Legislative
• Directives, Agendas
42
Remember the target!
Improving Economic Competitiveness
• Show why you believe this project can result in commercial success
for the SMEs involved:
• What are its Unique Selling Points?
• Why are these attractive?
• Validated that this is the case with real end users?
• Demonstrated a realistic selling price for the
product/process/service
43
Be prepared for ups and downs!
comfort
• Keep in mind the that a key point is collaborations between
nationalities and cultures, and by doing so moving forward!
time
44
The Front End Process
Sales and Concept building
The Sales Triangle
Product
knowlege
Sales
Triangle
Sales tech,
approach
Attitude,
ethusiasm,
Hardwork,
Confidence
Any side of the triangle are equally important and sales success
doesn’t happen effectively with any sides weak!
John Danvers, European Contracts Director, Ixion, www.ixionholdings.com
46
What are we offering?
• A dream! It’s intangible
• Specifically not research!
• New highly innovative products
• A way to beat competition
• Increased market share
• Completely new markets
• Increased profitablity
• Long term business
sustainability
47
• We help our clients become
more profitable by developing
highly innovative, world beating
products that their competitors
can’t match
The process
• Find a good client company
• Get their / your ideas, choose good one
• Turn it into a fundable concept
• Write and submit the proposal
• Negotiate and do the project.
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Finding Companies for Ideas
• Current client base
Company characteristics
• Large companies – supply chain • 25 – 50(+) employees (ideally)
• Internal ideas
• 2.5 – 5(+) m€ in turnover (ideally)
• Stimulation events/conferences
• Ability to commercialize
• Recommendation
• Ability to support the writing
process
• Networking / associations
• Government contacts
• Will pass the EC financial viability
check
• Ability to support the subsequent
project
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Checking out the Client
Why?
How?
• What type of project will you do? • Understand the starting point
• Size: IF under €1M then beware! and client
• What are they now?
• Where do they want to go?
• What problems, opportunities,
wishes?
• Concept Development and the
client “Buy In”
• Describe the “Big Picture”
• End-user needs & Existing solutions
• Un-met End-user need(s)
• Product or Process?
• Solutions Idea & Tech.concept
• IP-owner, Manufacturer, etc?
• Limitations and Enabling technology
• Research Capable?
• Commercial justification
• Consortium & European Dimension
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Which person to approach?
• Who should you speak to in a company?
• The M.A.N. !
Money – Authority – Need
• Who should you target?
• Managing Director, Sales Director (in larger companies)
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Meeting the SME!
• A knowledge transfer meeting where we build understanding and
cohesion with the SME.
Main objectives are to understand:
• The SME’s business
• Current position in the supply chain
• Strengths, weaknesses, opportunities, threats
• Aspirations, skills, capabilities
• Willingness to invest (time, effort, resources, financials)
• The SME Expectations
“To ask a question is the shame of a moment, to not ask a question
is the shame of generations”
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Ask open questions!
More often than not, failure in innovation is rooted in not having asked an
important question, rather than arrived at an incorrect answer…..
• Their customers (who, how many)?
• Their technology?
• Patents, competitor patents
• Their sector?
• Market trends, legislations
• Any technological macro issues?
• What are their aspirations?
• Where do they want to be in 5 years time?
• What is the dream product ”holy grail” for their sector?
• What would the technology magic wand create?
• What would their customers want to buy?
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Probing questions - Your friend TED
Tell me!
• A bit about your technical processes?
• Something about the markets you operate in?
Explain to me!
• How that particular process works?
• What makes your clients choose your product?
Describe for me!
• How that process affects your products performance?
• What led you to choose to serve that market segment?
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The Approach
• Tip: Remember your senses!
• Use them in that ratio!
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Closing Techniques
• ”Shall we do it?”
• ”Any reasons why we shouldn’t move forward?”
• ”Norner will only work with companies/concepts we can win – we
are happy to proceed. Are you?”
• ”2 questions?”
• Is EC funding right for you?
• Is Norner the right company to help you?
• If yes, let’s get cracking!
• Submission deadlines are natural closes!
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Generating Ideas
• Find the Cost, the Opportunity, the Pain
• Without € on it they will not really recognise they need
• Simply ask – use open questions from the FA
• Use case studies to show our relevance
• Talk about applications and customers
• Discuss market sizes and share potential
• Turn this into income potential for the client
• Ask about “big wish” large customer we can
get into the consortium for them
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What does a good proposal look like?
• BIG and HARD – 100 m€ + technical barrier
• Strong European SME relevance
• Beating LEs, meeting stds, agility…
• Something to be used
• A new product or process
• Some (not huge) innovative step
• It turns knowledge into money…
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In All Cases
• Establish novelty (using business intelligence)
• Build a logic train
• Get SME to buy in to final idea
• Get SME views on partners
• Desirable
• Undesirable
• When the concept and funding stream are decided;
• Produce a “one pager” for recruiting SMEs and RTOs
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Do You Need a Team of Innovators or
an Innovative Team?
• Focusing on idea generation
and creativity rarely results in
more innovations.
• Best predictors of radicalness
and novelty is presence of
individual innovators.
• A process for implementing new However
ideas, without support for
• Overall level of innovation is
creativity and bold experiments
closely linked to group
usually results in a lot of small
processes related to execution:
improvements, but little game• Commitment to objectives
changing innovation.
• Participation
• Task orientation to ‘get the job done’
An individual innovator provide good ideas but a taskoriented team of innovators will realize the value of the idea
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Prometheus: Critical Studies in Innovation, Volume 29, Issue 2, 2011, Ideas are not innovations, Tim Kastelle & John Steen
Innovation for Now and for the Future!
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H
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N
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Existing market
that we currently
serve
Exploration with
Extensions,
improvements,
variants and cost
reduction
Existing
technology that
we currently use
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Adjacent
growth
2
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Existing market
that we do not
serve
1
H
Knowlegde of Market
New Exploration into
market new markets
• Change the nature of
your industry
• Extend your current
competencies into
new, related markets
• Improve your current
operations
new technologies
Existing
New
technology that
technology
we do not use use
Knowlegde of Technology
C. Terwiesch, Ulrich K.T., Innovation Tournaments: Creating and Selecting Exceptional Opportunities, 2009
The Three Horizons Model
– Proven concept!
• You must have innovation efforts aimed at all three time horizons.
• If you only look at the exciting transformative H3 innovations, you’ll
lose business to current competitors who are using incremental
innovations to improve their operations.
• Consequently, you might have the best ideas for the future, but you’re no longer
around to execute them.
• If you only focus on H1 incremental innovations that make your
current business better, you’ll end up being replaced by
organizations that are driving disruptive innovations in your field.
• Using the three horizons framework helps balance innovation
efforts between incremental and radical, which is important.
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The Three Horizons Model
– Proven concept!
• However, maintaining a balanced portfolio does not mean that you
put 1/3 of your effort into each horizon.
• Google uses a 70/20/10 split
• 70% of their innovation time and money goes into making them better at what
they currently do
• 20% goes to extending into new markets
• 10% aims at developing entirely new markets
• Every new Apple product started the same way
• Jobs would see something crappy and want to change it….
• Looking at digital music players, he concluded that they “truly sucked” and
decided to do something about it, envisioning 1000 songs in your pocket
• Technology did not exist → screen → battery → small disc → design → flywheel
→ interphase → IPod → 1000 songs in your pocket
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