Innovation in Product Development

1. Innovation in Product Development Leonhard E. LoewManaging DirectorAKM Congress ServiceBasel (Switzerland)

2. Home Turf • ~60 employees in 3 companies in Basel/Switzerland and Weil/Germany • >30 Conferences/Symposia annually in Europe (50 - 6’000 delegates) • Core PCO and Executive Office for major European societies such as ECCMID, EBMT, ECTRIMS, ESC etc Leonhard E. LoewAKM Congress Service

3. Continuing success demands that centers see product innovation as ongoing requirement. How can this be achieved? Leonhard E. LoewAKM Congress Service

4. Overview • What Type of Product are we talking about ? • Innovation in the Service Industry • A general Misconception about Innovation in „The Meetings Industry“ • Brick & Mortar vs. Hands & Brains • Managing Innovation • Turning Innovation into your USP Leonhard E. LoewAKM Congress Service

5. What Type of Product are weTalking about ? • What excactly does the Client pay for ? • What is the added value ? • Who „produces“ and who „delivers ? • What is the Client‘s role in the „Production“ and in the „Delivery“ – Phase ? Leonhard E. LoewAKM Congress Service

6. Service and not a tangible Product What Type of Product are we Talking about ? • Research & Development • Immateriality and non-stockability • Your team sets the client‘s expectations • The “Production Process” • Importance of Branding Leonhard E. LoewAKM Congress Service

7. What Type of Product are weTalking about ? • Services are immaterial goods – but not all immaterial goods are Services • Services are problem solving activities • Services are being „consumed“ (by clients) • Clients are an integrated part of the Service provided Leonhard E. LoewAKM Congress Service

8. What Type of Product are we Talking about ? • Services represent the Process itself and not the Result thereof • Concurrent Production and Consumption -> Shelf-Life = 0 • Highly depending on Human Resources • Branding is a Key Factor for Success in the Service Industry Leonhard E. LoewAKM Congress Service

9. „Le Processus“ Primary Activities / Core Process Need PhaseEvaluation/Consulting Planning/Resource Allocation Set-up/Preparation The Event „Delivery“ Invoice/Follow-up Supporting Activities / Processes ICT-Tools: Databases, Production Planning Tools etc P. Hugentobler et al, 2003 Finance: Budgeting, Controlling Product Management Marketing / Communication (Sales, Advertising, Public Relations, Web etc.) Leonhard E. LoewAKM Congress Service

10. The Service is what the Client pays for The Client‘s Event is what the Service „Produces“ The Misconception of Innovation in „The Meetings Industry“ • Innovation in “The Meetings Industry” must tackle the (Service) Process and not Technology or Infrastructure Leonhard E. LoewAKM Congress Service

11. Innovation in the Service Industry • Innovation: … is generally understood as the introduction of a new thing or a new method … vs. Invention, Idea, Creativityvs. Marketability, Push-…/Pull-… Luecke/Katz, 2003 Leonhard E. LoewAKM Congress Service

12. Innovation in the Service Industry • Innovation of Processes • Change in the Processes (How …):. different „Consulting“ approach. different way of preparing an event • Innovation of Products • Change in the Service/Product (What…):. new type of conference. new type of event Leonhard E. LoewAKM Congress Service

13. Innovation in the Service Industry • Supply –> Pushed Innovation • „internal“ research produces new ideas • New technological possibilities touch of new services • Demand –> Pulled Innovation • „external“ and client needs results in new service offered Leonhard E. LoewAKM Congress Service

14. Brick & Mortarvs. Hands & Brains • People make the Difference • The most valuable asset you have • Can adapt and learn • under your (financial) control • Can be excited for a client‘s business • They render your company unique Leonhard E. LoewAKM Congress Service

15. Brick & Mortarvs. Hands & Brains • The Building/Facility • Is made of concrete • Cannot be moved • Is very unaffective … • Is interchangable • …can build a reputation Leonhard E. LoewAKM Congress Service

16. Managing Innovation • Need to innovate: • Services are immaterial and highly variable • Services cannot be protected by Patents and are easily copied* • Clients‘ needs are infinite – Market share can only be won through continuous innovation (with new or returning clients) Leonhard E. LoewAKM Congress Service

17. Managing Innovation • Culture / Vision: • Adapt your existing strategy to include a statement on Innovation • Key Target Areas: • Capacity to process Innovation(i.e. innovative ideas from your client) • Capacity to create and transfer/learn from the clients’ innovative idea Leonhard E. LoewAKM Congress Service

18. Managing Innovation • Implement a structured Innovation Management Process • Secure the existing Know-how andmake use of your “Hands & Brain Pool” Invest in your most valuable resource: Your Team Leonhard E. LoewAKM Congress Service

19. Managing Innovation • Train your team to cope with constant change • Idea -> Opportunity -> Resource Matching -> Realisation • Transfer the image from the people to your company Leonhard E. LoewAKM Congress Service

20. Turning Innovation into a USP • Be innovative – don‘t just behave innovatively • Create room for ideas (…and mistakes) • Let your Team innovate from within and from your Clients’ ideas • Branding, Branding, Branding Leonhard E. LoewAKM Congress Service

21. Turning Innovation into a USP • Adapt your Marketing Strategy: • Include “Innovation” as a segmenting criteria in your market/target research • Screen your existing product portfolio of events and clients (including your client’s clients!) • Include your clients in your „Innovation Plan“ Leonhard E. LoewAKM Congress Service

22. The Essence • The Product is the Service rendered • Meetings are part of the Tertiary Sector • Innovation is a continuous process • Invest in your most valuable Resource • Branding is a Key Issue • This is your R&D budget … allocate some funds Leonhard E. LoewAKM Congress Service

23. Thank you, for your Interest ! Leonhard E. LoewAKM Congress Service