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Dr. des. Martin A. Bader , European Patent Attorney, Dipl.-Ing. BGW AG

Competition and Competitive Power How to increase enterprises‘ technologic performance – improvement of the ability for innovation EC-TAIEX (INT Markt 205970) Sofia, Bulgaria, February 20th, 2006. Dr. des. Martin A. Bader , European Patent Attorney, Dipl.-Ing. BGW AG

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Dr. des. Martin A. Bader , European Patent Attorney, Dipl.-Ing. BGW AG

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  1. Competition and Competitive PowerHow to increase enterprises‘ technologic performance – improvement of the ability for innovationEC-TAIEX (INT Markt 205970)Sofia, Bulgaria, February 20th, 2006 Dr. des. Martin A. Bader, European Patent Attorney, Dipl.-Ing. BGW AG Management Advisory Group St. Gallen - Vienna Thurgauerstrasse 4 CH-9400 Rorschach am Bodensee, Switzerland Phone: +41-71-840 08 31 Fax: +41-71-840 08 32 Email: info@bgw-sg.com http:// www.bgw-sg.com

  2. Is There a Market for Your Products? Sand Glasses

  3. Just 0,6 % of all Ideas for Innovation Turn Out to Be Successful on the Market Ideas forInnovation 1,919 369 176 52 1,550 eliminated (about 81 %) 193 eliminated (about 52 %) 124 eliminated (about 70 %) Basic Project Products Still on the Market Result Total Loss Avg. Perf. Success24 17 11 Source: Kienbaum Survey

  4. Core Challenge of Managing Innovation at BMW The car manufacturer BMW tries to satisfy future customer needs even if the customer currently does not know what he would be looking for in the future ...

  5. Customers are Individual Persons, not just Market Segments • extraordinary users expand the bandwidth • true individual persons help to expand imagination Source: IDEO

  6. „I Don‘t Watch TV“Searching for Interesting Contradictions Source: IDEO

  7. Searching for Things and Attributes Which Cause Behaviour Source: IDEO

  8. Searching for Surprising Usage and Behaviour Source: IDEO

  9. Bringing New Technologies into Product Strategy Scanning of new Technologies Proto- types ProductDevelopment € • Breakthrough development • Venture teams with goals • “Free-wheeling” • Mid/long term ROI • Product development • Highly structured process • Sophisticated controlling • Short term ROI People Management Process Management

  10. Lead User Workshops at Hilti TechnologicalTrend Estimation Expert Chats Lead User Identification Customer Surveys by Phone ConceptGeneration Lead User Workshop ConceptTest Test of MarketAcceptance withRepresentative Users

  11. Trust as Core of Collaboration Collaboration Spirit positive t Enthusiasm CulturalShock Cultural Assimilation Stability negative • Create an atmosphere of trust • Know-how travels with heads • Change agents against Not-Invented-Here-Syndrome

  12. From Invention to Profit • Scooters innovated by Wim Ouboter, Micro Mobility Systems • 2000: 50 Mio. units sold worldwide; price CHF 260,- 700 factories in China copied; Ouboter 100.000 units • 2001: price CHF 39,- 95% of factories stopped production Renewal, use brand, new products

  13. Demand in patentsworldwide [in Mio.] 16 14.8 14 12 Ø 24% p.a. 10 8 6.2 6 4 2 t 0 1998 2002 Intellectual Property Management Becomes Important: Patent Strategies Source: Trilateral Statistical Report (2002)

  14. “The challenge over the next 20 years will not be speed or cost or performance; it will be a question of complexity.” Bill Raduchel, Chief Strategy Officer, Sun Microsystem

  15. Key Success Factors • Customers and suppliers support innovation: create incentives • Concentrate on few suppliers • Early involvement of suppliers • Open communication of expectations • Clear exit strategy: who owns what after an exit? • Only involve key customers, do not diffuse • Know-how travels with heads: create teams with customers and suppliers • Keep defined freedom for quantum leaps but tighten processes • Proactive management of intellectual property

  16. Never, Ever Give Up ! Daniel Borel, Chairman & Founder of Logitech, 2004

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