“Everything that can be invented has been invented.”

1. Technology and Innovation ManagementProf. Dr. Oliver GassmannISEP - Entrepreneurial Leadership Diessenhofen, 2004

2. “Everything that can be invented has been invented.” Henry L. Ellsworth US Commissioner of Patents, Annual Report to Congress 1843 87044

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 Kienbaum Survey 72029

4. Comparative Competitive Advantage A missing comparative competitive advantage (CCA) explains 4 out of 5 failed innovations Factors that lead to failure: • Electronic mouse trap 28 % • Me-too-product 24 % • Technical weaknesses 15 % • Competitive weaknesses 13 % • Price deterioration on the market 13 % • Problems in the environment 7 % 80 % without CCA Kienbaum Survey (1993) 72030

5. Gesellschaft Kultur Strategie Vision/Mission Ressourcen Wissen Technologien Kompetenzen Märkte Kunden Wettbewerber Partner Innovations- Strategie Werte Struktur $ Neue Technologien Ressourcen Entwicklung Technologie Impulse Mitarbeiter Umwelt Innovationsmanagement zwischen Technology-Pushund Market-Pull

6. The Dilemma of Innovation Management • Organization that Supports • Creativity (Guilford) • High complexity of tasks • Little standardization and formalization • Little centralization of decision-making processes • Direct, open communication • Restrictions • at MNU • StructureDecentral centers of knowledge • StrategyCore competencies, platforms • ProcessStandardization, Controlling • CultureTendencies towards rigidity Creative Freedom Disciplined Execution Linux Windows 75157

7. 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 75194

8. Managing Technology at Schindler CTO Advanced Development CQ HR • Technology • Management • TechnologyStrategy • AdvancedDevelopment • Platform Management • System Architecture • Development • Services • Simulation • PDM • Testing Competitor Intelligence New Jersey Ebikon Shanghai Knowledge Management Sao Paulo Change Agent Technology Liaison Officer Benchmarking Core Competencies 70046

9. “Internet is just a hype !“ Bill Gates, Microsoft 1995 87067

10. “Die weltweite Nachfrage nach Kraftfahrzeugenwird 1 Million nicht überschreiten ... allein schon aus Mangel an verfügbarenChauffeuren.“ Gottlieb Daimler, Daimler Motoren Gesellschaft, 1901 87068

11. Rucksack of Forecast Methods Trend- Extrapolation, Computer- Simulation Quantitative Patent-Analysis Bibliometrics/Mapping Cost-Benefit-Analysis Delphi Interconnection- Matrix Relevance-Tree Scenarios Literature-Analyses Historical Analogies Roadmaps Brain-storming/ -writing Qualitative 5 years 10 years 15 years 20 years 25 years Future Reger (2001); in: Gassmann/Kobe/Voit: High-Risk-Projekte 71023

12. Scenario Technique Procedure Analysis ofDeterminants Forecast Synthesis Extreme Scenario A ExtremeProjection A Zeit Today Future Horizon Extreme Scenario B Zeit Today Zukunftshorizont ExtremeProjection B Today Future Horizon Time 71050

13. Cross-Industry Innovation at BMW: 3 Steps Supplier OEM Technology-Supplier/Start-Up Exploration Adaptation Integration Information-Flow Emphasis of Development Source: Diss. Stahl (2002) 71096

14. Dealing with Uncertainty of Prognosis • Understand drivers of uncertainty • Talk about what you do not know • Do not confuse ambiguity with uncertainty • Express uncertainty as ranges and probability distributions -not as point estimates “It is better to be approximately right than precisely wrong!” David Matheson 1998 72020

15. Process Managementin R&D

16. The Vicious Circle of Bad Project Planning Quality-Problems Time-Delay Changes new versions, new priorities Capacity- Bottlenecks • Consequences: • Continuous crises • Bad motivation • Muddling through Unscheduled Work 73020

17. Project-Goals: “The Magic Triangle” Revenues, Life-Cycle-Costs, Profit Quality Available Resources Project- Goals Costs Time Product-Price, Market-Potential, Profit Market-Entrance, Revenues, Profit 73038

18. Product Product Product Product Maintenance Planning Elimination Creation PCP/PC PCP/PM PCP/PE PCP/PP Stage Gate Process at Schindler P0 P2 C0 C10 M0 M2 E0 E5 Preliminary Business Case KG Introduction Definition Project Product Product Idea and KG Sales Contract Develop- C6 C9 Success Backlog Business Releases Backlog ment Assurance Commitment Sourcing Implementation C4out C6 C0 C4in C6 C8 C9 C10 Project Preliminary Contract Product GPIG C4 - C10 Proposal 73114

19. Schindler: Sophisticated Controlling for Development 73115

20. Schindler: Efficient Capacity Management 73116

21. Core Competencies andR&D Outsourcing

22. Elements of Core Competencies Processes Core Competence Technologies Skills 80006

23. Four Steps of Identifying Actual Core Competencies Competitors Customers Technologies Mission Challenges Technology Portfolio Consolidation to core competencies

24. Developing the Technology Portfolio Substitution Technologies T1 ……….. Tm Competitors C1 ……….. Cm Customers & Markets M1 ……….. Mm CC CC1 …. CCn People P1 ……….. Pm Skills S1 …. Sn Strategic Impact How good are we? How important is that competence? Resources 80019

25. Leverage through External Cooperation StrategicImpact • Study • Pilot projects with low budget, “high-risk-high-impact” • Cooperation with external partner • Invest • Long-term investments withincore competencies • ROI long term high • Optimize • Core competence, but strategic impact is decreasing • ROI short term • Observe • No budget • Technology-owner • Conferences, magazines • Cooperation with universities • Divest • No competitive advantagewithin the next 5 or 10 years • Decrease resources and evaluate for new fields low low high Resources New Technologies Core Competencies 80021

26. Active Ride Control New SW- Intelligent Reliability Technology Peripheral Engineering Devices Platform Engineering Contactorless Drives High integr . Linear Hoist / Rail system Mechatronics Door Drives Mobile Agents Traffic Dispatcher Technologies AI Technology ASICS New Materials - intelligent - composite SA/SD Installation Methods - Robots Technology Portfolio at Schindler StrategicImpact 3D-Simulation Wireless Modelling Communication Invest Prototypes Super Dynamic High Rise Caps Motion Passenger Elevator high Control Guidance System Technology Safety Web-Technology Bus Preventive RBS Fiber Maintenance Permanent Ropes MRL Magnet Motors Narrator Remote Optimize Sound Advanced User Monitoring Dynamic Load Design Interface / Compensation Multimedia OO-SW Design System Click & Plug Algorithm e-house Engineering & Ride Bluetooth New Control Configuration Technology Process Hydraulic Multi-car PDM Observe Drive Mic10 System Wireless Extensions Energy Intelligent Disinvest Transfer Passenger Detection Energy Commissioning-/ Conversion PCB Development Service free Elevator Gears Intelligent Technical Structure Sensors Catalogue Bonding on Paper Drive Data Piezzo Super- Tables low conductivity Drive low high Resources New Technologies Core Competencies 80020

27. “Wenn Du entdeckst, dass Du ein totes Pferd reitest, steig ab.” Weisheit der Dakota-Indianer 87020

28. Trust as Core of Cooperation Cooperation Spirit positive t Enthusiasm CulturalShock Cultural Assimilation Stability negative • Create an atmosphere of trust • Know how travels with heads • Change agents against NIH-Syndrome 75132

29. Intellectual Property Management

30. Protection of the Customer Interface at Valser 12 IP-rights on patent, design, brand Inventor: Lutz Colani

31. Intellectual Property Management Becomes Important:Patent Strategies Patent rights p.a.: Ø 29% growth Source: Trilateral Statistical Report 2001 of EPO, JPO and USPTO

32. What Can be Patented? Products Software ! Systems Processes Business Models ! 79006

33. Litigation Costs Grew by 25% Over 2 Years 25% Average Cost of Litigation (amount at stake < $1 million) Source: AIPLA Economic Report 2001

34. Protection Defend against third parties Weapon aggression against third parties Source of Income exchange of patents licence income Marketing for products and companies Patents: Enshure Own Freedom of Action and Block Competitors 79010

35. Customer as Driver of Innovation

36. Kernaufgabe des Innovationsmanagement bei BMW „Unsere Aufgabe ist es, dem Kunden etwas zu geben, was er haben möchte, von dem er aber nie wusste, dass er es suchte und von dem er sagt, dass er es schon immer wollte, wenn er es bekommt.“

37. “There is No Market for a Micro-Recorder.“ (Sony Market Research) 71097

38. Solving Future Problems • Market Research • Articulated requirementsof customers • Law of the big numbers • Short-term oriented • Pilot Development & Trend Research • Visions of lead users forfuture requirements • Problem orientedtechnology projects • Venture capital 72027

39. 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 72095

40. Intelligente Gebrauchsanweisungen ... Auf einem Föhn von Sears: “Nicht während des Schlafes benutzen.” Auf einem Stück Seife von Dial: “Anleitung: Wie normale Seife benutzen.” Auf Tiefkühlkost von Swansons: “Serviervorschlag: Auftauen.” Auf Tiramisu von Tesco’s: (auf die Unterseite gedruckt) “Nicht umdrehen.” 87007

41. ... oder wie dumm ist der Kunde ? Auf einem Bread-Pudding von Marks & Spencer: “Das Produkt ist nach dem Kochen heiss.” Auf der Verpackung eines Rowenta Bügeleisens: “Die Kleidung nicht während des Tragens bügeln.” Auf Boot’s Hustenmedizin für Kinder: “Nach der Einnahme dieser Medizin nicht Auto fahren oder Maschinen bedienen.” Auf Nytol Schlafmittel: “Achtung: Kann Müdigkeit verursachen.” 87008

42. Customer Focus in R&D • Start early with competitive analysis • Market pull by including real customers into the project • Long-term trend research complements market research • Activating implicit knowledge of customers within lead user workshops • Problem-oriented technology-projects instead of blue-sky research • Interdisciplinary venture teams replace the interface between R&D and Marketing Know-how travel with heads! 73033

43. Kunde als Innovationsmotor Plattform- management Prognosen Gesellschaft Kultur F&E-Management Strategie Business Vision Märkte Lead User Wettbewerber Stakeholder Ressourcen Wissen Technologien Kompetenzen Frühe Phase und radikale Innovation Innovations- Strategie Partner Struktur Intellectual Property Management $ Neue Ressourcen Technologien Entwicklung Technologie Kernkompetenzen und F&E-Outsourcing Opportunities Mitarbeiter Umwelt Prozessmanagement Strategisches Management von Technologie und Innovation