Innovation and Technology Management

Prof. Fritz Fahrni, PhDTechnology Management and Entrepreneurship

Swiss FederalInstitute of TechnologyZurich

Innovation

and

Technology Management

AIM Conference, June 28th - July 1st, 2001, Madrid

Fritz Fahrni



Technology Revolution and Changes in Economy

1. New Economy What is it?

2. Old Economy So what?

3. The Role of Innovation

4. The Role of Technology

5. Implication for Management



The New Economy

12191e

New E

conom

y

Inte

rnet

Microsoft

B to V

Nasdaq

Com·

AOLNetscape

New Markets

dynamic

Growth



Driving Technology in the New Economy

12193b-e

Time

Product-/Market-Success

1970 2001 2030

Com Developer·

New Dealingwith Knowledge

Com User·

Com Supporter·Traditional

Dealing with Knowledge











The Old Economy (1)

12195-e

Slow Growth

Low Tech

backw

ard

Salary dumping

Restructuring

Mergers

Shifting to lowcost countries

Non-attractive

Closing sites/factories



Basic Human Needs (Maslow) Our Markets

12197-e

Communication Mobility Energy/...

Food Clothing Housing Health Safetyphysiological

spiritual/philosophical

Self-fullfilment

Leasure timePleasure Recognition...

...Adventure











Grow/Renew or Die?

?

14605-e



What is the Right R&D Investment?

10589e

-50,0%

+50,0%

-50,0%

+50,0%

Annual Change in R&D intensity (92-97)

Annual Change in Market Value(Standardized, 92-97)

Source: Mercer



Success = Ability to Innovate

14612-2e

time

Product-/Market-Success



To change the rules = to escape the common belief

14624e

CorporateNet

Internet(Netscape, Sun)

Sick PatientHealthy Patient(Health Care)

Sport-Event

Media Event(Olympic Games)

Fashion

Logistics(Benetton)

Toy Store Corner

Dept. Store for Children(Toys´R´us)



Entrepreneurial Success: Technology AND Market Management

12129a-e

To recognize

Customer‘sNeeds

x

Success

=

To putto use

Technology











Technology in the Machinery Industry (1)

12194-4e

Metal forming Casting Steam EnginesForgeing Jet Engines

??

Shaping Turning, Drilling PumpsEroding Printing Machines

Car EnginesWeaving Machines

Coating Plasma Spray Construction MaterialsVacuum Vapor Space Shuttle

Fuel CellsArtifical Joints

Micro Photography MissilesTechnology Edging Electronic Print

Nano- Atomic Tunnel Microscopetechnology Structures Nanopumps

Surfaces



12250



12265



Life Cycle of a Key Capability

12122-2e

• broad, innovative, creative• Functionality• 70% of the cost are built-in• Q-Basis-fixed

Product Develop-ment and Concept for Processes

• focus• operationalize• expand• minimize process cost

Product and Process Improvements

• optimize• customize• cost efficiency

Product and Process- Optimization

Start-up Growth Maturity



Renewal of Key Capabilities

12247e

through combining (Bundling)

old AND new technologies bring success

entrepreneurial challenge

Examples: Food Industry

Building Industry, Clothing Industry

Health-Industry

Communication: Print Technology











Technology and Innovation

12047e

Entreprise

Management

Entrepreneurial Challenge

Technology-Management

„Environment“ „Environment“

Finance

Customer/Market

Technology



The new Entrepreneurial Challenge

12249e

New Entrepreneurs needed

Success is based on:

- much more knowledge and knowhow

- new technologies

- new methods and tools

- new competitive dimensions

- with „same“ human beings

- with same values



Steps Within the Knowledge-Creation Process

12379e

Knowledge Enabling: The Knowledge-Creation Steps

Sharing

Tacit

Knowledge

1

Creating a

Concept

2

Justifiying a

Concept

3

Building a

Prototype

4

Cross-

Leveling

Knowledge

5



Knowledge Enablers

12380e

A) Instill / Maintain Curiosity and Vision

B) Manage Conversation

C) Mobilize Activists

D) Create the Right Context

E) Globalize Local Knowledge

Knowledge Enabling: The Knowledge-Enablers



Knowledge Enabling: The 5x5 Grid

13402e

Kn

ow

led

ge

En

able

rs

Knowledge-Creation Steps

Sharing

Tacit

Knowledge

Creating a

Concept

Justifiying a

Concept

Building a

Prototype

Cross-Leveling

Knowledge

Instill a Curiosity

ManageConversation

Mobilize Activists

Create the RightContext

Globalize LocalKnowledge

= Strong Impact = Impact

The Dots Indicate Those Steps Within the Knowledge-Creation Process,That Have a Strong Impact on the Knowledge Enablers.



Quality of Leadership

12041e

Styles of Leadership

C ommand

C ontrol

C orrect

„Conservative“

C ontext

C ulture

C ommunication

„Innovative“



Consequences for Entrepreneurship

12298e

Customers

Command /Control

conservative

Customers

GoalsValues & Attitude

Co-owner

innovative



From Quality to Business Excellence

12124-3be

Leadership CorporateCulture

Co-workers

RessourcesShareholders

ConsumerSatisfaction

MissionVision

StrategyStructure

Enablers Results

Sustainable,appropriate

profit

Team- andperformance-

oriented

Society andresponsiblity



Key Elements of Corporate Culture

speedinnovation

learning

Business

Innovator

self-confidence

simplicity

accountability

12099-2be

competence



Summary and Trends

12198-e

1. Incororate ICT = .com – user

2. Innovation = 1% Inspiration + 99% Perspiration

3. Market Pull x Technology Push = Success

4. Technology Mgmt + Enabling Knowledge Transfer

5. ccc .... CCC

Documents

Innovation and Technology Management