ISPIM Swarovski Erler Open - ISPIM Innovation …conference.ispim.org/wp-content/uploads/sites/2/ISPIM2013_Erler.pdfGlobal distribution: 42 countries ... Strategy • Communicated

6/24/2013

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HOW TO MAKE OUT THE VERY BEST USE OF YOUR EMPLOYEES CREATIVITYO OU O S C

XXIV. ISPIM CONFERENCE., HELSINKI

HANNES ERLER

DIRECTOR OPEN INNOVATION NETWORKS

JUNE 18TH

Why do we need innovation and who needs innovation?

How we do innovation as a company

How you can be part of innovation@swarovski

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Innovation Enables to Survive

© Copyright Swarovski AG, 2013

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Innovation needs framework and direction

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1902

“Airplanes are interesting toysp g ybut of no military value”Marechal Ferdinand Foch, Professor of Strategy, Ecole Superieure de Guerre

5© Copyright Swarovski AG, 2013

20122004

“There is no doubt, this is our century!”CEO 2006CEO, 2006

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Society

Levels of Value Creation

Ecosystem

Organization

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User

Source: Elke den Ouden, Innovation Design, Springer 2012


Major Challenges – New Opportunities

Innovation always has to do with feelings of Unsecurity and Ambiguity

Develop and train „Change Management Skills“

We live in world of “Multioptional Value-confusion”

Revolution of Creative Economy and Knowledge

Don’t underestimate the Role of Middle-management in Organizations

Place Cultural Factors and Values in the

foreground

Use Social Media for for joint idea development

Innovation is a process of “Social Sharing of Knowledge”

p

Encourageflat communication,

networks and open mindset; Combine with hierarchical

necessities

Web 2.0 Technologies“Wisdom of the crowd”


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Why do we need innovation and who needs innovation?



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COMPANY HISTORYFoundation 1895 in Wattens by Daniel Swarovski I., Tyrol Austria

5th generation family business


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SWAROVSKI GROUPFacts & Figures

Areas of Business

Cut Crystal Elements Swarovski Elements

Crystal Objects, Jewelry & Accessories Swarovski

Precision Optical Equipment Swarovski Optik

Bonded Grinding & Dressing Tools Tyrolit

Precision Cut Synthetic Gemstones Swarovski Gems

Road Safety Products Swareflex

Headquarters: Wattens, AUSTRIA

Group Turnover: € 2.9 billion

Group Employees: 31.460

Global distribution: 42 countries

> 120 countries (retail)

the INNOVISIONARY

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IMPORTANT ELEMENTS TO LEVERAGE INNOVATION

Strategy

• Communicated Innovation Strategy

Committed People

• Intrinsic Motivatorsgy

• Aligned Search Fields

• Targeted Innovation Portfolio

Processes & Tools

• Participation and Transparency

• Active Support of creative development

Organization

CULTURE

MYTHS

VALUES

• Overall Innovation Portfolio Boards

• Idea Management / Targeted Streams

• Stage Gate for Operative Realization

• Research & Innovation on Executive Level

• Cross-functional teams and networks

• Clear Defined Functions

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INNOVATION *) =

IDEA + INVENTION + DIFFUSIONIDEA + INVENTION + DIFFUSION

Manish Arora

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Any marketable development leading to a new product, service, process, technology or new business area

*) The succes of innovation belongs to all involved players and stakeholders

Manish Arora –“Love story of

the Heart”


Good ideas have always been related to employee’s creativity and the transformation to the fashion industry

© Copyright Swarovski AG,, 2013

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iflash IDEA MANAGEMENT

Discussion

Employee

Idea

Employee

…offers all Swarovski employees the possibility to make their contributions to promising i ti

Idea

Employee

Discussion

Evaluation

Expert Expert

Idea

innovations

Employees can bring in own ideas, comment and discuss the ideas of others or submit recommendations

Ideas will be forwarded to experts via iflash

17Copyright Swarovski AG, 2013

iflash IDEA MANAGEMENT


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Values


Networks INNOnetwork

INNOnetwork

Management• 65% of senior executives not confident about the decisionsthey make in this area

McKinsey Research on Innovation 2010:

• 94% say that people and corporate culture are the mostimportant drivers

• Executives can make better use of existing talent forinnovation , without implementing disruptive changeprograms, by creating conditions that allow dynamicinnovation networks to emerge and flourish

• Foster innovation culture based on trust amongemployees (Ideas are valued, people trust that it is safe toexpress them & oversee risk collectivly with their managers)

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J. Barsh, M.M. Capozzi, J. Davidson; McKinsey Quarterly 2010: Innovation and Leadership

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Source: The McKinsey Quarterly, Volume 1/2008 „Leadership and Innovation“

The Evolution of Innovation

e fo

r or

gani

zatio

n

InnovationExcellence

Evolution phase

Val

ue

lonelyheroes

guerilla groups

cultural islands

lonely cultural islandsIntegrated innovation

lonelyheroes

guerilla groups cultural islands(eg. i-LAB)

garchitecture & leadership

(R&I)

Isolated employeesWithout resourcesWithout internal

willingness to coop Missing clear goals

First intercompanynetworking (ad-hoc) Unstructured Opportunistic

First subareas (islands)are visible Partially structured Limited outcome

Company-wide Portfolio Innovation Strategy Structured and targeted Resource-backed Substantial outcome


Based on: „Competitive-Intelligence-Evolutionsphasen in der Praxis“ (Thorsten Bill, Rainer Michaeli / HMD, Februar 2006)

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HOW INVENTION CAN BE BUILT INTO STAGE-GATE®

© Robert G. CooperStage-Gate® is a registered trademark of the Product Development

Institute Inc.


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3 Success factors for Hierarchical- Project and Network-driven Companies.

Impact of Lack: Conflict escalation, segregation, exclusion

If we look into our companies we experience „Sub Rationalities“ on a day

to day basis.

Together with our value systems they are building the basis for a “Culture of

Principle of Individualization

H I tiImpact of Lack: Financial crises, loss of motivation and loyalty

Impact of Lack: Short sighted decisions may result in misguided

gOpenness, Trust and Accountability“

- and consequently for

the Ability to Innovate.

Human Intimacy

SM: Trust

Principle of Standardization

Economical Success

Principle of Professionalism

Science, Knowledge

Challenge for Management:“We have to provide free space for evolvement of our employees talents and creativity”

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result in misguided investments and sunk profit.

SM: MoneySM: Learning, Insights


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Why do we need innovation and who?



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DESIGN MANUFACTURING SOURCING RETAILCO-BRANDING

ADV. & PR CONSUMER

DIFFERENTIATING & CREATING VALUEPARTNER ALONG THE VALUE CHAIN

PROTOTYPING

CREATIVE

SUPPORT

PRODUCT & DESIGN COMPETENCE APPLICATION SOLUTIONS

RECOMMENDED

APPLICATION

PARTNER

APPLICATION

SUPPORT

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APPLICATION

INNOVATION

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Jewelry

INDUSTRY OVERVIEWSEGMENT PLATFORMS

Textile

Accessories

Interior

New Segments

DIY

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SAMSUNG GALAXY SII made with SWAROVSKI ELEMENTS

Design ‚Tender Blossom‘


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CRYSTAL EMBELLISHED CARDMade with SWAROVSKI ELEMENTS


YKK, a leader in the world of zippers, and Swarovski Elements, the product brand of Swarovski have worked in partnership to bring the high fashion industry a unique vision.

The zipper can now be perceived as a piece of Jewelry. With multiple applications possible, crystal zippers are revolutionizing the world of fastening, bringing new

Cooperation with Industry Leaders

g g, g gopportunities for designing apparel pieces, shoes and accessories.

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W dd klWe add sparkle to people’s everyday

lives.

Publikationen:

2008 Erler, H.; Rieger, M.; Füller, J. (2009): Ideenmanagement und Innovation mit Social Networks – Die S ki i fl h C it I K ik ti l E f l f kt i I ti t St t i iSwarovski i-flash Community In: Kommunikation als Erfolgsfaktor im Innovationmanagement - Strategien im Zeitalter der Open Innovation. Hrsg.: Zerfaß, A.; Möslein, K. Gabler, Wiesbaden 2009, S. 159-176.

2010 Erler, H.; Wilhelmer, D. (2010): Ein neues Paradigma - Mit Netzwerken Innovationsprozesse steuern, in: Serhan Ili (Hrsg.): Open Innovation umsetzen – Prozesse, Methoden, Systeme, Kultur. Düsseldorf, Verlag Symposion, p. 225 – 270.Link dazu: http://www.symposion.de/default?cmslesen/q0002750_34740101

2010 Innovation Network: „An Integrated Organizational Setup for Management Learning” Publikation und Vortrag im Rahmen der Konferenz “MOT – Management and Organizational Learning” in Wien


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ISPIM Swarovski Erler Open - ISPIM Innovation …conference.ispim.org/wp-content/uploads/sites/2/ISPIM2013_Erler.pdfGlobal distribution: 42 countries ... Strategy • Communicated