Innovation Controlling

Innovation Controlling

Controlling

1

Innovation Controlling | AnneCatherine Listmann, Felix Albus, Rafael Haymann 2

1.1 Innovation


1.2 Innovation + Controlling



Innovation

Innovation is generally understood as the successful introduction of a new product or a new method.



Innovation




Innovation Controlling


Conception and control (in the sense of coordinated governing) of typical business processes

1.3 Innovation Controlling


1.3 Innovation Controlling


2.1 Innovation management


idea creation

ideaevaluation

idearealization

idea implementation



idea creation

ideaevaluation

idearealization

idea implementation



Innovation controlling

idea creation

ideaevaluation

idearealization

idea implementation



Innovation controlling

Goal: Fit between encouraging and monitoring instruments.



self control

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self control

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equilibrium

self control

inno

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motivation dominates

equilibrium

self control

inno

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motivation dominates profitability dominates

equilibrium

self control

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7

»The system is that there is no system. That doesn‘t mean we don‘t have process. Apple is a very disciplined company, and we have great processes. But that‘s not what it‘s about. Process makes you more efficient.«

3.1 Leica


analog instead of digital photography


3.2 Loewe

monitor tube instead of flat screen technology


3.3 Nintendo

motion control instead of better graphics


4.1 Innovation from the viewpoint of Controlling



Innovations are…



Innovations are…

• investments

0

25

50

75

100

idea R&D invention market release

expentitures income

cost

s

time





Innovations are…

• investments

• intangible (originating from an idea not an physical investment)



Innovations are…

• investments


• reliant on long term strategic horizon allowing many setbacks, failures and learning effects



Innovations are…

• investments



• risky (extrapolation of new market segments)



Innovations are…

• investments



• risky (extrapolation of new market segments)

• reliant on other company departments



Innovation Managment Controlling

controlling object innovation current products

controlling area project group enterprise

controlling dimension

technological/ strategical/ economical economical

controlling data uncertain secure

controlling point of time milestones deadline

controlling periode of time variable periodical


4.5

Innovation Managment Controlling Innovation

Controlling

controlling object innovation current products innovation

controlling area project group enterprise project group

controlling dimension

technological/ strategical/ economical economical economical

controlling data incertain secure insecure and secure

controlling point of time milestones deadline milestones and

deadlines

controlling periode of time variable periodical variable and

periodical

Innovation from the viewpoint of Controlling

?

MacBook mini

5.1 Why Apple decided differently

If Apple would have expanded its portfolio to a low cost netbook, a new group of consumers who are generally interested in Apple products but cannot afford them would

be addressed...


5.2 Why Apple decided differently

...but Apple‘s philosophy is to sell high quality products for a premium price.


6.1 Tools

innovation pilot

capacity for innovationmeasurement of operating figures / innovation goals

business objectives

leadership share of sales from new products RoI

business culture / incentives number of new products annualy market share

innovation team R&D costs revenues with new products

customer care time to market employment security

innovation value time to break even customer satisfaction

SOWT-Analysis number of new patents employee satisfaction

actual-situation target-situation


6.2 Tools

checklist 1Innovation Controlling | AnneCatherine Listmann, Felix Albus, Rafael Haymann 22

6.3 Tools

checklist 2Innovation Controlling | AnneCatherine Listmann, Felix Albus, Rafael Haymann 23

6.4 Tools

innovation yield calculation

Revenues Expenditures

1. realized (accumulated) revenuesa) externally across the market (e.g. licensing)

b) costs transferred to other processesc) other revenues

3. realized (accumulated) expendituresa) externally across the market (e.g. production equipment)

b) costs transferred to other processes (e.g. salaries)

c) other expenditures (fees)

2. future revenues (predicted) 4. future expenditures (predicted)

Innovation success

5. Revenues (1+2) - Expenditures (1+2)

Innovation success

5. Revenues (1+2) - Expenditures (1+2)


Case Study

iTV

iNav iCam

iPlay

What is Apple‘s next big innovation?

Imagine you’re working in Apple’s Controlling department. The management wants to extend the company‘s product portfolio. There are sufficiant capacities in R&D to work on one of the ideas above. Find arguments for one of the potential products

based on the knowledge and the tools you‘ve just heared of.

Business

Innovation Controlling