Innovation

Requirements and Opportunities

Agenda

• Innovation in General– The Fundamental Dilemma

• Different Aspects of Innovation– Destruction and Creation– The Golden Mean– System Models and System Reality

• Predicting the Future– Scenarios

• Innovation Culture– Creativity and Resistance– The Learning Organization and Personal Mastery

• Learning• Example• Recommendations

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On Innovation: The Hand Axe

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Idea: To produce a hand axe and not to rely on chance in finding one

Invention: To develop the necessary capabilities and skills (process innovation)

Diffusion: To copy and export the „production process“

Innovation: Man-made hand axeSuccess Story: Has been the

predominant tool of the Acheuléen (“hand axe”) culture

Inventor: Homo ErectusMarket: Africa, Europe and AsiaMarket Window: Between 1,8 Mil. und 150

Thou. years BCEMan-made hand axe found in Turkana, Kenya, dated to1,76 Mil. Years BCE

On Innovation: The Hand Axe

06.02.2014 4

Idea: To produce a hand axe and not to rely on chance in finding one

Invention: To develop the necessary capabilities and skills (process innovation)

Diffusion: To copy and export the „production process“

Innovation: Man-made hand axeSuccess Story: Has been the

predominant tool of the Acheuléen (“hand axe”) culture

Inventor: Homo ErectusMarket: Africa, Europe and AsiaMarket Window: Between 1,8 Mil. und 150

Thou. years BCEMan-made hand axe found in Turkana, Kenya, dated to1,76 Mil. Years BCE

Innovation = Idea + Invention + Diffusion

On Innovation: Timeliness

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Diffusion(Marketing)

Invention(Development)

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TimelinessSuccessful innovations are in themselves unique, creative and original, realize developments not conceived before.They are closely interwoven with the organization and the people, and properly positioned in time.

Not all ideas become inventions, 100 → 45Not all inventions become products 45 → 15 - 20Not all products become innovations 15 - 20 → 5 – 9

Study Innovation Behavior 2012, Dr. Bernd X. Weis

On Innovation: The Fundamental Dilemma

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The particular capabilities of the organization are at the same time its special incapabilities.

MaintainingCompetitiveness

CostPressure

EfficientProcesses

InnovationPressure

CreativeProcesses

InexpensiveProducts

InnovativeProducts

Short Run: Higher Profits

Short Run:HigherCost

Delays

(Christensen)

On Innovation: Types

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Traditional Markets,Improved Products

SustainableInnovations

New Markets,New Quality of Products

DisruptiveInnovations

Innovations

On Innovation: Sustainable versus Disruptive Innovations

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Minor CustomerBenefit Perceived

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Disruptive Innovation

Often Innovator succeeds

Often Incumbent succeeds

No AdditionalCustomer Benefit

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DifferentiatingCustomer Benefit

Perceived

(Christensen)

On Destruction and Creation

Verbrennen musst du dich wollen indeiner eignen Flamme: wie wolltestdu neu werden, wenn du nicht erstAsche geworden bist!

Nietzsche: Also sprach Zarathustra

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Creative Destruction (Joseph Schumpeter)

Perceive the continuous alterations and changes in the environment as potential • to disengage from the outdated and adapt to

new developments,• to develop further, to design and shape, to

create something new.

Innovation implies Change .

Phoenix (Mosaic, Louvre, Paris)

You must be ready to burn yourselfin your own flame; how could yourise anew if you have not firstbecome ashes!

Nietzsche: Thus spoke Zarathustra

On the Golden Mean

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The Golden MeanOn no account does the golden mean imply mediocrity, but rather a prudent and wise resolution of diametrical, often irreconcilable options – the “right” mean.

Prudent businessmanA direct corollary is that a failing “innovation” may shake an organization or enterprise, but should by no means threaten its very existence.

Virtue, then, is a state of character concerned with choice, lying in a mean, i.e. the mean relative to us... For in everything it is no easy task to find the middle… Wherefore goodness is both rare and laudable and noble.

Aristotle: Nicomachean Ethics

Aristotle teaching (British Library)

On Complexity Reduction

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Handle stets so, dass die Anzahl der Möglichkeiten wächst.

Heinz von Foerster: Das Konstruieren einer Wirklichkeit

Always act so as to increase the total number of choices.

Heinz von Foerster: Constructing a Reality

Real WorldDerive

Options, possible Consequences, Goals, Actions,

Influences

Be aware ofUncertainty,Emergence,

The Unknown

Model

Innovation StrategiesWhen talking about reducing complexity, complexity of the model is reduced not the complexity of system reality. Thus, complexity reduction is a cognitive necessity but remains a chimera.

In consequence, innovation strategies, which maximize the number of options, have a higher potential for success.

On Predictions: Russell’s Chicken

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Ich handle mit voller Gewissheit.Aber diese Gewissheit ist meineeigene.

Wittgenstein: Über Gewissheit

I act with complete certainty. But thiscertainty is my own.

Wittgenstein: On Certainty

Market UncertaintiesMarkets, that are not (yet) existing, cannot be analysed.New markets are fundamentally afflicted with uncertainty and can therefore not be dealt with in the conventional processes and techniques of business planning and conduct. Time

Wei

ght

On Predictions

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Continue this sequence of numbers: 0 2 4 6 …

Rule – Expanatory Framework Continuation

The next number is the previous one + 2 0 2 4 6 8 10 12 14

The next number is even and not in the list 0 2 4 6 256 24 396 10532

The next number is bigger than the previous one 0 2 4 6 7 99 396 123456

The last 4 numbers are attached in reversedorder 0 2 4 6 6 4 2 0 0 2 4 6

4 arbitrary numbers followed by 1‘s 0 2 4 6 1 1 1 1 1 1 1 1

On Prediction: Scenarios

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Near Future(Planning Horizon)

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On Prediction: Scenarios

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Near Future(Planning Horizon)

Presence Far Future

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On Innovation Culture

The five basic characteristics• Vision• Co-operation and Networks• Inspiration and Leadership• “FREIRAEUME”(*)

• Creativity and Readiness to take Risks

(*) The German noun FREIRAEUME refers to what is ordinarily called "free space," and also what is called "room for ideas", “room for self-actualization” and the likes. FREIRAEUME refers to the kind of opportunities given, that allow to pursue activities that are not on the specified agenda e.g. to create and follow up with new ideas.

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Innovation culture has to be conceived a transdisciplinary culture. Its imperative is to pragmatically integrate anything desirable, necessary, useful, feasible, and appropriate.

Elizabeth Eastland, Sidney

Edge of Exploration, Edge of the Known

On Creativity

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Innovation can be conceived anywhere. It is presumptuous to believe that methods, techniques and processes create innovation. However, innovativeness benefits from appropriate methods, techniques and processes.

Caspar David FriedrichStudy Innovation Behavior 2012, Dr. Bernd X. Weis

On Resistance

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Eppur‘ si muove.Galilei

And yet it moves.Galilei

Typical Quotes

“It’s never been that way!”“We’ve never done it that way!”“We tried this before!””This has never worked!”“This will never work!”“Nobody would want this!”“It’s already there!”…..

Difficulty in Managing Change

• The protagonists have the structural disadvantage that they have to explain the vision with all its deficiencies.

• The opponents instead have their vision ready and proven – it is the simple and obvious projection of the Now onto the Then.

On Learning Organizations

The Learning OrganizationAn innovative Organization learns from• Successes and Failures• Trial and Error• from Others and • with Others through Co-operative Action

Individual Aspects:Autonomy, Personal Mastery and Meaning

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Der Tag gehört dem Irrtum und demFehler, die Zeitreihe dem Erfolg unddem Gelingen.

Goethe: Maximen und Reflektionen

The day belongs to the error and thefailure, the time series to successand achievement.

Goethe: Maxims and Reflections

On Personal Mastery

Personal Mastery • Integration of Rationality and Intuition • Realization of the Connectedness

with the World• Empathy and Engagement

Thus, Personal Mastery is the capability to reflect one‘s own actions and interactions with honesty and depth –and act accordingly.

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Denn der Zugang ist ... nur denenvergönnt, die ‚reinen‘, umNebenabsichten unbekümmertenHerzens sind.

Herrigel: Zen in der Kunst des Bogenschiessens

But acces is ... only granted tothose, who are with a pure heart,free from secondary motives.

Herrigel: Zen in the Art of Archery

On Learning

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Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young. The greatest thing in life is to keep your mind young. Henry Ford

The required structures have to develop; they cannot be bought, particularly in research management.

Prof. Dr. Bernd Hoefer in „the gulf | February 2011“

The goal is to inspire and to guide!“If you want to build a ship, do not drum up people to collect wood and assign them tasks and work, but rather teach them to long for the endless immensity of the sea”.

Antoine de Saint-Exupery

Bosch

HertzReis

SiemensBenzDaimler

Von BraunZuse

On Innovation: Idea, Observation, Question, Requirement

Observations• In Kuwait the air at sea level is hot.• Even in Kuwait the air in higher altitudes – say 3 – 5 km – is cold.

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Question• Is it possible to get the hot air up and at the sam e time get the cold

air down?

Requirements• The process should be as passive as possible.

H: H

eigh

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On Innovation: Sketch of First Solution: Ideas

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1. Low Pressure Chamber (LPC) is filled with air at pressure pL < p0.

2. Lower pressure implies lower temperature.

3. The air flows should eventually come into a steady state.

4. Additionally, air could be heated at ground level using sun energy.

5. Additional exploitation of the air flow should be taken into account.

w0

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p0 � pH

Low Pressure Chamber

Heat Exchangep0 � pL

Venturi-Effectfor Air Speed

2[(pH - p0) + ρHgHH + ρ0w2 /2 + cv(ρHTH - ρ0T0)]

ρH√wH = 0

wH

p0Ground Level

On Innovation: Recommendations

• Create a culture of appreciation . • Create a culture that allows learning from successes AND from failures . • Create an environment that allows processes of trial and error . • Create an environment that has sufficient free space for creative moments.

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Inspiration

Heart and Soul

Passion

Study on Innovation Behavior 2012

In English or German:

Can be ordered through my Website

www.Bernd-Weis.de

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The Book

From Idea to Innovation: A Handbook for Inventors, Decision Makers and Organizations270 Pages, Springer: Heidelberg, 2014ISBN 978-3-642-54170-4

In German:Praxishandbuch Innovation: Leitfaden für Erfinder, Entscheider und Unternehmen (2. Auflage)296 Seiten, SpringerGabler: Wiesbaden, 2014ISBN 978-3-8349-4638-6

Can as well be ordered through my Website

www.Bernd-Weis.de

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Thank you!

شكرا

Herzlichen Dank!