Critical Success Factors in Innovation and Technology Management

1
Critical Success Factors in Innovation and
Technology Management

Innovations- und Technologiemanagement, 10-11.
März 2005, Osec, Business Network Switzerland,
Liestal/Basel http//www.kmuinnovation.com/osec-2
005.pdf

• INNOVATION VENTURE MANAGEMENTDr. Franz J.
  Beeler Aeschi CH-6410 GoldauSwitzerlandPhone
  /Fax [phone] Mobile 079 / 455
  51 34 E-Mail office_at_kmuinnovation.com

Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
2
Agenda

• About us
• Todays Innovation Management for SMEs in
  High-Price Countries (CH, D, A, )
• Practical Concepts with the objective More
  Innovation for Less Money!
• Technology Management Concept Saving costs,
  Time-to-Market, .
• RD Venture Management Concept Active Marketing
  Sale of RD Resources, RD Department as a
  Profit-Center or an independent Knowhow-Firm
• Innovation Venture Management Concept
  Simultaneous Venturing in order to avoid burning
  money
• Conclusions for Enterprises, Start-ups, Managers,
  Founders and Entrepreneurs

Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
3
About us

• Dr. Franz Beeler Partner founded in 2000
• Decentralized Consultancy Management Network
  with Partners in CH, D, A, and USA
• Focus on Technology, Innovation Venture
  Management (transnational Technology Transfer,
  interdisciplinary Innovation Processes, )
• Target Customer segment Small and Medium sized
  Enterprises (SME), Young Enterprises, Start-ups,
  Spin-offs
• Further Services Offshore Software Outsourcing,
  Franchising, Corporate Partnering, Financing
• SME-Innovation Platform for SME, Manager
  Entrepreneurs http//www.kmuinnovation.com

Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
4
Todays Innovation Management for SMEs in
High-Price Countries

• Need to improve RD Effectiveness and Efficiency
  More Innovation for Less Money
• Technology as a acquisitionable Resource
  Technology-Transfer, Technology-Acquisition,
  Technology-Contracting
• Trend to outsource activities Manufacturing,
  Software Developments, IT Services
• Trend to Corporate Partnering
• Trend to spin-off Innovation Projects
• Trend to short-term Innovations

Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
5
Typical Innovation Problem
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
6
Technology Management Concept

Firm
Input
Output
TM Process
2. Doing Things Right (Efficiency)
1. Doing the Right Thing (Effectiveness)
Methodology Technology-Mgt.
Business-Plan
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
7
Technology-Management (TM)Process
4.
1.
2.
3.
Tracking
Adaptation
Transfer
Support
Lead User
Packagedtechnology
Prototyping Product Develop. Process
Production
Firms Value Chain of Products/Services
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
8
The TM Process Tracking (1)

• Continuous Awareness Evaluation of technology
  sources and trends in the outside (world-wide
  vision)
• Focused actions on particular opportunities
• Finding the right partner
• Move to an approved, funded project

Tracking
Adaptation
Transfer
Support
Packagedtechnology
Lead User
Prototyping Product Develop. Process
Production
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
9
The TM Process Adaptation (2)

• Project in the company or outside, to convert the
  tracked Technology into a form to meet the needs
  of a Lead User
• Continuous balance of the Lead Users needs with
  the value of adapting the technology to the
  requirements of other departments
• Continous reporting to top-level management

Tracking
Adaptation
Transfer
Support
Packagedtechnology
Lead User
Prototyping Product Develop. Process
Production
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
10
The TM Process Transfer (3)

• Transfer Integration of a well-proven
  technology after successful adaptation into a new
  product development process
• The technology ist packaged with
  well-documented procedures, user training etc.
• The product development process fulfills
  Time-to-Market principles, because the technical
  risks are low

Tracking
Adaptation
Transfer
Support
Packagedtechnology
Lead User
Prototyping Product Develop. Process
Production
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
11
The TM Process Support (4)

• Provision of technical expertise after product
  development process has been finished
• Provide insurance in emergencies
• Controlled support of packaged technology after
  formal handover

Tracking
Adaptation
Transfer
Support
Packagedtechnology
Lead User
Prototyping Product Develop. Process
Production
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
12
Effectiveness TM-Process
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
13
Efficiency of TM-ProcessDoing Things
RightCross-Functional-Management
Technology
Customers
TM Project
Distribution
Products
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
14
Efficiency of TM-ProcessDoing Things Right
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
15
Advantages of the TM Concept

• Innovation is possible, even if internal
  resources are lacking!
• Saving RD-Costs 40 to .......?
• Saving of time Time-to-Market!
• Reducing of risks Innovation meets customers
  needs
• Technology-Marketing (Lead User /Customer) as a
  catalyzer for sales

Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
16
Critical Success Factors of the TM Concept

• Business-Evaluation and Planning of Technology
  Innovation Project
• Top-Management commitment and support through all
  steps of the TM Process needed!
• Manager of the TM Process must have
  cross-functional skills!
• Attention NIH-Syndrome! (Not Invented Here)

Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
17
Typical RD Resources Problem
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
18
RD Venture Management

Firm
RD Sales
RD Sales
RD Department
2. RD Developments for external customers
1. Company RD Developments (internal customers)
RD Marketing Sales
Corporate Technology Policy
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
19
RD Venture Management Concept

• Company RD Developments (internal customers)
• RD Developments for external customers
• RD Marketing Sales (Patents, Technologies,
  Tools, )
• RD Department as a Profit-Center
• RD Department transformed into an independent
  Know-How Firm

Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
20
Advantages of RD Venture Mgt.

• Reducing of fixed costs by RD sales
• RD as an added value service to other products
  and services
• RD Venturing by building up of a spin-off
  company
• RD as a Profit-Center or an independent Know-How
  Firm

Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
21
Critical Success Factors of RD Venture Mgt.

• RD Staff should be business minded and market
  driven
• No NIH-Syndrome! (Not Invented Here)!
• RD modules for flexible customer requirements
  and Scale of Economy
• RD contracts with external customers

Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
22
Typical Start-up Problem
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
23
Innovation Venture Process Simultaneous
Venturing
1.
2.
Business-Planning
3.
Prototyping
4.
Corporate Partnering
Financing/Venture Capital
Lead Customer
Idea Prototyping Product Develop. Process
Production
Firms Value Chain of Products/Services
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
24
The IV Process Business-Plan (1)
1. Executive Summary 2. Product Idea3.
Management Team4. Marketing Plan5. Business
System and Organization 6. Realization
Schedule 7. Risks 8. Financing
Business-Planning
Prototyping
Corporate Partnering
Financing/Venture Capital
Lead Customer
Idea Prototyping Product Develop. Process
Production
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
25
The IV Process Prototyping (2)

• Development of Prototype Version
• Implementation Business-Model
• Finding of Lead Customer/s
• Producing of first Track Record Results

Business-Planning
Prototyping
Corporate Partnering
Financing/Venture Capital
Lead Customer
Idea Prototyping Product Develop. Process
Production
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
26
The IV Process Corporate Partnering (3)

• Partner Tracking
• Strategic Alliances
• Joint-Venture Analysis
• Lead Customer
• Finding established Firms as Corporate Venture
  Capitalist

Business-Planning
Prototyping
Corporate Partnering
Financing/Venture Capital
Lead Customer
Idea Prototyping Product Develop. Process
Production
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
27
The IV Process Financing/Venture Capital (4)

• Venture Capital Firm Tracking
• Contacting Private Investors
• Due Diligence
• Lead Customers as Investors
• Finding established Firms as Corporate Venture
  Capitalist
• Negotiating VC-Agreement

Business-Planning
Prototyping
Corporate Partnering
Financing/Venture Capital
Lead Customer
Idea Prototyping Product Develop. Process
Production
Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
28
Advantages of the IV Concept

• Market Assessment of Business Case as early as
  possible (Seed Phase)
• Introduction of Lead Customers during Prototyping
  
• Finding of Partners and established Players in a
  very early stage
• Early Involvements of potential Investors and
  Venture Capital Firms

Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
29
Critical Success Factors of the IV Concept

• Realistic Business Evaluation and Planning
• Early Stage Prototyping with Lead Customers
• Strategic Alliances or Joint-Venture with
  established Firms
• Management Teams participation in Private Equity
  (entrepreneurs)

Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com
30
Conclusions / Summary

• New Ways and Concepts in Technology Innovation
  Management are needed in order to compete with
  companies in low-price countries
• Practical Concepts with the objective More
  Innovation for Less Money!
• Technology Management Concept Saving costs,
  Time-to-Market, .
• RD Venture Management Concept Active Marketing
  Sale of RD Resources, RD Department as a
  Profit-Center or an independent Knowhow-Firm
• Innovation Venture Management Concept
  Simultaneous Venturing in order to avoid burning
  money
• Presentation Download http//www.kmuinnovation.co
  m/osec-2005.pdf

Dr. Franz Beeler Partner, Innovation Venture
Management, www.kmuinnovation.com