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    Corporate foresight - experiences,insights and its relation to policy foresight

    Dr. Karlheinz Steinmller

    Correspondents day 2007

    Sept. 24, 2007

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Overview

    Z_punkt

    Corporate Foresight Examples and

    Challenges

    CF and Policy

    Foresight

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Z_punkt In a Nutshell

    Some Facts

    founded in 1997

    located in Berlin, Essen andKarlsruhe

    staff of about 20 employees

    main clients: large companies

    also research activities forministries, EU-funded etc.

    networking, e. g.German Node of The UNU

    Millennium Project

    Core Competences

    Foresight services for strategyand innovation:from trend monitoring to scenarioprocesses

    Content provider for strategicknowledge:Business environment,consumers, industries,

    technologies

    External think tank for industrypartners:creative processes,implementation of corporateforesight

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Clients

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Cooperations

    Councilfor Scientificand IndustrialResearch (CSIR) of South Africa

    PontifciaUniversidadeCatlica De So Paulo

    Research Center for Eco-EnvironmentalSciencesChinese Academyof Sciences

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    North America> USA

    Finland Futures AcademyFinland Futures Research Center,

    Dr. Juha Kaskinen, Director (University)

    Nucleo de Estudos de Futuro (NEF)The Pontifcia Universidade Catlica de So Paulo(PUC SP) University and NGO

    Prof. Arnoldo Jos de Hoyos

    Center for Scientific and Industrial Research (CSIR)Think Tank, private sector (Global Research Alliance), Pretoria

    Dr. Reinie Biesenbach, Centre Manager

    The Arlington Institute

    Non-profit research institute about global change

    John L. Petersen, President

    Europe> Finland

    Asia> China

    Latin-America> Brazil

    Africa> South Africa

    Chinese Academy of Sciences

    Research Center for Eco-Environmental Sciences

    Prof. Ph.D Rusong Wang

    Germany

    > Coordinator

    Z_punkt GmbH The Foresight Company

    GFG Founder and Coordinator

    http://www.z-punkt.de

    International Foresight Group - IFG

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Publications

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    TrendsZ_trenddatabase(Release 2006)

    about 240 trendscontinuously monitored

    new: integration intoscenario processes,weak signals and wildcard module

    ScenariosScenLab

    (Scenario Software)

    includes unique geneticalgorithms for high

    complexities automated clustering

    collaboration tools included

    Innovation

    Deep Innovation

    new approach forcustomer-centered

    innovation Combines future research

    with customer analysis collaboration with Olson

    Zaltman Assoc., Boston

    Some New Foresight Tools

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Overview

    Z_punkt

    Corporate Foresight

    Examples and

    Challenges

    CF and Policy

    Foresight

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Corporate Foresight - A Definition

    CF is future studieswithin businesses

    a systematic, continuous approach

    based on a broad variety of methods

    centres around medium to long-termoriented work on strategies, visions, andinnovations

    a participatory process(involving internal knowledge andcompetence)

    integrated in strategy, innovation orchange management processes

    + Intermediary sphere: Pre-competitive studies

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    But: a number of common problems of its use and

    integration

    Still largely white spot in terms of research on CF

    More knowledge on the state of the art of CF is needed

    CF - On the Rise in Europe

    Main trends:

    CF becomes more important and widespread

    Diverse set of methods being used and developed further

    Diverse modes of organizing corporate foresight

    Tendency to look beyond close environments (economy / technology)

    Foresight methods becoming crucial for innovation processes

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Observing the RelevantTrends

    Monitoring

    Understanding theDrivers of Change

    Analysis

    Anticipating the Future

    Projection

    Deriving BusinessImplications

    Transformation

    Consumer Trends

    Weak Signals

    Z_trenddatabase

    Environmental+ Technology Trends

    Future CustomerNeeds

    Wild Cards

    Emerging Issues

    Key Factors

    Roadmaps

    Context Innovation

    Future + InnovationWorkshops

    Scenarios

    Product

    Innovation

    New BusinessDevelopment

    Strategy

    Corporate Foresight Toolbox

    Basic Process

    Toolbox

    Scenario

    Process

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    1. Reduce uncertainty by identifying newand relevant trends

    2. Prepare strategic decisions

    3. Support innovation processes

    4. Develop new and future businessfields / markets

    5. Create orientation on future

    developments6. Build a knowledge base

    Businesses work with foresight in order to

    Innovation

    Knowledge BaseStrategy

    CF

    aimstriangle

    Growing awareness for the complexity of interactionsbetween companies and their environments and for the needto overcome a technology-centred perspective

    CF Aims

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Fields of Observation (in order of priority):

    70 % of businessesdeal

    withall 5 subject areas

    Insiders perspective dominates

    Focussing often on immediate environment (closer competitiveenvironment, as in marketing and management practice),often: technology-centred view

    But recently: shift towards customer orientation, more openperspective + approach

    1. Technology and Innovation2. Business & Companies3. Individuals and Society4. Environment & Nature

    5. Politics and Law

    Issues Shift Towards a Wider Perspective

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    CF - Methods

    Regularly Used Methods:

    Publication Analysis(Environ. Scanning): 79%

    Brainstormings: 58%

    Scenario Methods: 46%

    Simulations: 29%

    Trend Extrapolation: 29%

    Expert Surveys / Interviews: 33%

    Delphi (only occasionally): 42%

    Future Workshops: 8%

    Z_punkt 2002 survey onFutures studies and businessesinGermany

    Jan Oliver Schwarz: A German Delphi

    on Corporate Foresight, 2006EFMN Brief 78

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Patrick Becker: Corporate Foresight in Europe 2002, EFMN Brief 82with additions by Z_punkt

    The CollectingPost

    -on the side- individuals

    - collecting existinginformation

    - low visibility

    The Think Tank

    - many addressees +tasks, extensive internal

    + external network- wider perspective

    TheObservatory- specialized task,e.g. forecasting

    future traffic- single addressee- well networked

    internally

    Level of Connectedness + Scope of Tasks

    Size

    separate units, full-time staffgenerating proprietary output

    DB, IBM

    Lufthansa,P&G, Volvo

    Ericsson, BT,Daimler, Philips,Siemens

    CF 3 Types of Organizational Forms

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Corporate Foresight Framework

    From Future Research to Strategic Action

    Futurists (ExternalOr Internal)>> Research>> Methods

    MonitoringTrends

    AnalysisKey Factors / Drivers

    ProjectionScenarios / Contexts

    CF

    Level1

    CF

    Level2 Internal

    Foresight Team>> Implementation>> Process

    TransformationStrategy Innovation

    Internal Foresight

    Community>> Enrichment>> Expertise

    ApplicationFuturizing the whole company

    CF

    Leve

    l3

    CF is more than future research. It is a complex,multi-layered communication process

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Overview

    Z_punkt

    Corporate Foresight Examples and

    Challenges

    CF and Policy

    Foresight

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Authorised by BASF

    CF Trend Based Innovations:

    From Megatrends to New Products at BASF

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    CF Strategy OrientationStrategic Visioning at Siemens AG

    3 time horizons

    roadmapping and scenarios

    Impacts on business andsegments

    STEEP approach+ Customers+ Competitors

    Also special studiese. g. study by Z_punkt & SiemensReal-Time Communication at the CustomerInterface (in German):trend analysis + scenarios for sectors

    Source: "Pictures of the Future - Strategic Visioning at Siemens

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    CF Innovation Orientation

    Social Innovation at Deutsche Telekom AG

    Customer centeredapproach

    Trends and Scenarios areused to explore changingcustomer demands andmarket needs

    Insights are used to design

    new ICT applications and totrigger R&D projects

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Society

    Technoloy

    Economy

    Ecology

    Politics

    Z_punktFuture Services: Trends

    Strategic Trend Analysis

    From general environmentalscanning to specific tasks

    Z_trend database

    HTML-based knowledge tool

    STEEP systematics

    about 240 trends continuouslymonitored

    new: integration into scenarioprocesses

    Weak Signals, Wild Card andindustries modules optional

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Z_punkt

    Future Services: Scenarios

    Scenario Projects

    Customized processes

    Integrating the clientscompetence

    From quick & dirty 1 workshop

    processes to sophisticatedlarge ones

    Scenario Software ScenLab

    Includes unique geneticalgorithms for highcomplexities

    Automated clustering

    Collaboration tools included

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Playground Pitfall

    Monologue Pitfall

    Lone Rider Pitfall

    Tendency to re-invent the wheel in terms of processes,methods, application, communication

    No Building of Knowledge Pool: a lack of continuityof activities, lack of commitment to CF

    Results remain more or less unknown internally: low

    level of diffusion of results into the corporation

    Acceptance + implementation problems foroutcomes, lack of integration of colleagues / employeesinto the process

    Typical Problems & Pitfalls

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Observations

    CF is becoming more widespreadand important

    Struggling with difficulties, whichmethodological improvement alonecannot answer

    Cultural clash betweenextrapolation / forecasting peopleand qualitatively / widerenvironment oriented people

    Acceptance of qualitative future

    knowledge problematic in uppermanagement need fornumbers

    Methodological bridge to

    established business processesseems to be missing

    Coping with paradoxes:

    Lack of standardsvs. need for individualsolutions

    Low level of diffusion / extentof practical use in businessesin generalvs. sophisticated state of theart lead user development

    Gap between report cultureand need for action

    Gap between scientific /foresight communitydiscussions and practical use

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    CooperationContinuity

    Creativity Communication

    5C

    Competence

    CF Success Factors

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    3 Main Competences:Content, Methods, Processes.

    Build a flexible toolbox.

    Keep it simple! Andtransparent.

    CooperationContinuity

    Creativity Communication

    5C

    Competence

    CF Success Factors:

    Competence

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    First of all, make sure you have the

    commitment of the managementboard.

    Involve the potential target groupat an early stage to increaseacceptance

    Establish Learning Loops and aninternal Foresight Community (NewApproach: Community of Practice)

    CooperationContinuity

    Creativity Communication

    5C

    Competence

    CF Success Factors:Cooperation

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Effective communication is asimportant as the quality of content.

    Use adequate communicationformats to reduce complexitydue to needs of different target

    groups

    CooperationContinuity

    Creativity Communication

    5C

    Competence

    CF Success Factors:

    Communication

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Deliver surprises, not onlybusiness as usual scenarios.

    Hold the balance between straightanalysis and visionary thinking.

    An experimental approach isnecessary, because there are onlyfew standards. But: No risk, no fun!

    CooperationContinuity

    Creativity Communication

    5C

    Competence

    CF Success Factors:Creativity

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Organise CF highly flexible, so youcan react quickly to new demands

    Try to make CF an essential part ofstrategic management.

    CooperationContinuity

    Creativity Communication

    5C

    Competence

    CF Success Factors:

    Continuity

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Overview

    Z_punkt

    Corporate Foresight Examples and

    Challenges

    CF and Policy

    Foresight

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Corporate Foresight

    A real competitive advantage!

    Quick, dirty and highly relevant!

    We need everythingabout the global businessenvironment in 2017Q3 -

    - next week!

    But dont forget - - weare car makers!

    As a manager - - I cantake only the best

    scenario!

    But honestly, MrSteinmuller, your guts -- which one will come

    true?

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Public Foresight

    According to highest scientific standardsWe should finalize it before theend of the legislative period - -

    or better: at the beginning of thenext??? Perhaps with a

    prolongation option in FP9?

    This really fits well withone of my students

    diploma ...

    Without including a forest-ethical study, it will never

    get an approval.And there should be

    institutes from N, S, W,and East Europeanmember states ...

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Corporate vs. Public Foresight

    Issues of CF:

    Future business environment(markets with time horizon x, inregion y, in industry z)

    Innovative products and servicesfor tomorrows customers

    Strategic options in competition

    Future risks and opportunities ingeneral

    And where the hell are society and

    regulation moving to?

    Focus maily on explorativequestions

    Issues of Public Foresight:

    Global, national and regionalchallenges and how to addressthem

    Development of social systems

    What are our common visions andgoals?

    How to motivate, mobilize,integrate all groups?

    Focus maily on normativequestions (?)

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Corporate Foresight

    Measures of Success

    Approval by board

    Implementation of results

    Follow-up project

    No short term return on investment!

    Part of company culture

    Sometimes shifting targets Sometimes multitude of interests Sometimes hidden agendas

    Conditions for success

    Completely in line with interests of thecompany

    Adapted to organizational culture(e. g. business language)

    Strong advocates (owners) within

    companyRules

    Confidentiality

    Short project times

    Usually tight budgets

    Quantification urge

    (Over-) Optimism

    Legitimation by prestige

    Main results for board on 3 ppt slides

    CF has to compete with daily business

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Public Foresight

    Measures of Success

    Acceptance of results byscientific / foresight community

    Implementation of results

    Part of political processes

    Sometimes shifting targets Sometimes multitude of interests Sometimes hidden agendas

    Legitimation of decisions

    Postponement of decisions

    Expertise vs. counter-expertise

    Conditions for success

    Political support (owners ofprocess)

    Compatibility to politicalagenda

    Rules

    Formal requirements of the tender

    Political correctness

    Inclusiveness (integration of all

    stakeholders) Longer project times

    Often: awkwardly large consortia

    Legitimation by prestige

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Where to cooperate?

    CF needs PF!

    PF is exploited by CF people(and some managers anyway)

    PF provides insights into theexternal business environment

    PF sometimes is used tolegitimate CF

    PF provides fundamentalmethodological studies

    Does PF need CF?

    CF sometimes voices freshideas

    CF has (some) businesscommunity insights

    CF has (some) client drivenmethodological developments

    Overlapping interests: future intelligence in all fields cutting-edge methodologies quality standards (?)

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    How to interlink networks?

    PF networks

    some national networks

    EU networks

    project-related networks

    CF networks

    mostly (closed) clientnetworks of CF consultancies

    some failures to foundEuropean networks

    D I F I

    Le Cercle des Entrepreneurs du Futur

    What beyond just more conferences?Knowledge sharing platform

    Netzwerk Zukunftsforschung

    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Final Words

    Forecasting isvery difficult,

    especially about

    the future.

    Mark Twain

    But connectingforesight peopleis difficult, either.

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    Dr. Karlheinz SteinmllerZ_punkt TheForesight Company

    Thank you for your attention!

    Contact:

    www.z-punkt.de

    www.steinmueller.eu