verhaert innovation day 2011 – peter roels (verhaert) - how to optimize your product development

CONFIDENTIAL

INNOVATIONDAY 2011 Slide 1INNOVATIONDAY 2011

Peter RoelsRecruitment Coordinator

Account Manager On Site Technical Consultancy

HOW TO OPTIMIZE YOUR PRODUCT DEVELOPMENT

[email protected]

CONFIDENTIAL

INNOVATIONDAY 2011 Slide 2

Innovation

The term innovation derives from the Latin word innovatus, which is the noun form of innovare "to renew or change," stemming from in—"into" + novus—"new".

CONFIDENTIAL


Innovation is essential for European companies to survive

Innovation • Key strategic pillar in any organization

• New and improved product offerings for existing and future customers

Innovation• Create new output

• Create new value

• Improve chances for successEurope intends to invest 3% of BNP in innovation. Today in Belgium it’s at 2%!!What are the key reasons that blocks us ?

CONFIDENTIAL


Overview

• Why don’t we realise this objective?

• How can external partners help?

• 2 models with common practices and some reflections

• Way forward: managed innovation services, concept & case

CONFIDENTIAL


CONFIDENTIAL

Two major issues

CONFIDENTIAL


Issue 1: Open job vacancies

• Will become more & more important:• Bottleneck jobs• Competition between

companies• Aging population - babyboomers

major retirements

CONFIDENTIAL


Issue1: Article “Knack ” last week

CONFIDENTIAL


CONFIDENTIAL


Issue 1: Future development in competence sourcing

Future evolutions 2011 - 2015:

• Engineers become more scarce

• Stress on recruiting market

• Future employees will commit less to a company

• More engineers will become freelancers

• They will provide their competencies to companies for a project and limited time

• Rapidly increasing competition from BRIC countries

CONFIDENTIAL


Issue 1: Optimize the availability of the crucialdevelopment competences

Will there be sufficient R&D / engineering capacity?We know the answer……

So, how to survive in European R&D environment?

• Will those engineers prefer to work for our company or will they go to other industries?

• Do we have enough critical mass to have all the potential disciplines and specialisms in-house?

• Do we provide enough challenges to keep those people motivated ?• Do we provide the right environment and context te keep their knowledge

state of the art.

Do you have some doubts?

CONFIDENTIAL


Generations XYZ Einstein

CONFIDENTIAL


Generation Einstein

Communicate with 21st century generation10 suggestions for new management

1. Let them find solutions for questions that interest them and that they know enough about. Give them responsabilities in line with their talents

2. Stimulate informal communication within the organisation. Itreduces hierarchy and increases creativity. Not equality butequivalency.

3. Give space for entrepreneurship where employees can useand develop their competencies and capacities. Make surethat they can contribute to improvements with their own ideas.

4. Organise small scaled worksettings. It stimulatesentrepreneurship, bureaucracy is reduced and links withintimicy and security what is important for the newgeneration…

5. Introduce and facilitate the possibility to work independentfrom time nore place . It gives them more flexibility and responsability

CONFIDENTIAL


Generation EinsteinCommunicate with 21st century generation10 suggestions for new management

6. Organise a stimulating prestation culture. The new generationdoes not mind to show what they have realised, they are ambitious.

7. Make sure the work matters, that it is meaningful

8. Create an environment where employees sense co-ownershipon the successes of the company and that they have the possibility to develop themselves at full length.

9. Work in flexible mixed teams for important issues. The nextgeneration is network- and group oriented.

10. Check it their personal ambitions are in lite with those of the company. It is their responsability to develop their own careerpath themselves. But it must be clear what they can contributeto the organisation’s future..

CONFIDENTIAL


Issue 2: 7 Success Factors to Innovation

Based upon: Thunderbolt Thinking, Inc. http://www.thunderboltthinking.com

1. Culture must embrace innovation & risk taking – everywhere!2. Innovation must be aligned with mission & goals.3. Who is the beneficiary of this innovation? Always tie into resident benefits.4. Accept risk and a climate where mistakes are o.k.5. Emphasize exploratory thinking, idea generation, and experimentation.6. Solid interpersonal relationships & teamwork – support!7. Cross-functional collaboration & communication – use all of your varied resources!

http://www.thunderboltthinking.com/

CONFIDENTIAL


Issue 2: Innovation's Nine Critical Success Factors

by Joseph Sinfield, Elizabeth Altman, Scott Anthony, et al.

1. A compelling case for innovation. 2. An inspiring, shared vision of the future. 3. A fully aligned strategic innovation agenda..4. Visible senior management involvement. 5. A decision-making model that fosters teamwork in support of passionate champions.

Breakthroughs6. A creatively resourced, multi-functional dedicated team. 7. Open-minded exploration of the marketplace drivers of innovation. 8. Willingness to take risk and see value in absurdity. 9. A well-defined yet flexible execution process.

CONFIDENTIAL


Issue 2: Take into account the soft side of innovation management:

• Organisation

• Empowerment

• Culture

• Open communication

• Diversity

• Multidisciplinarity

• Prepared to take risks

Is your organisation the ideal environment to innovate succesfully?

Do you have some doubts?

CONFIDENTIAL


CONFIDENTIAL

Organisation modelsHow can external parties help to overcome these issues?

CONFIDENTIAL


Hire temporary R&D employees

1st model : Reenforcement of your R&D TeamShould be a complementary asset:Capacity, competence, culture, ….

CONFIDENTIAL



CONFIDENTIAL


Hire temporary R&D employees / General practice

When?• Project workload high & deadlines (too) near

• Resources: extra (wo)man power

• A limited time

• Fast solution for staffing problem

• Flexible: easy to get rid of

• Generally accepted within companies

CONFIDENTIAL


What does customer look for?

• Very specific skills

• Focus on technical capabilities (e.g. proE, C++, ...)

• In support of the customer’s team - well mastered competencies

• On higher lever: project management skills

• Been there done that candidates

• Little training – quickly up and running

Hire temporary R&D employees / General practice

CONFIDENTIAL



We are looking for manpower

CONFIDENTIAL


Hire temporary R&D employees / general practice

Remarks – attention points

• People to be managed by hiring company’s managers

• Difficult to acquire and consolidate their experiences and knowhow and to embed this within the company

• Fast selection process

• Quality sometimes does not match the requirements

• Focused on what hired employee can, less on persons capabilities and competencies

• Monthly basis’ notice

• Flexibillity with the resolution of 1 FTE….

CONFIDENTIAL


CONFIDENTIAL

Some reflections on hiring R&D staff

What about our key-issues?

CONFIDENTIAL


Hire temporary R&D employees / What about ourkey-issues?

Structural shortness on engineersWhy do we continue to react on short term needswhen we tal about a long term and structuralproblem?

Soft issues as key succes factors:

Why do we keep focussing on technicalcapabilities we know other factors matter?Do we realy have the capabilities and capacitity to manage our people?

Internal organisiation

Flexible shell

Competences

Technical know-how

Capabilities Attitudes

CONFIDENTIAL


R&D subcontracting

2nd model : outsource R&D in projects / workpackages

CONFIDENTIAL


CONFIDENTIAL


Does your company outsource R&D? General practice

Flemish companies reluctant to outsource R&D

13

5663 66

21

41

3038

0

10

20

30

40

50

60

70

R&D ICT HRM Finance & Admin

FlandersFrance

Uitbesteding in Vlaanderen in kaart gebracht - K.U.Leuven. HIVA/CESO, Vlerick Ugent - 2009

%

CONFIDENTIAL


Outsource your R&D / general practice

• 60s and 70s: companies started to realise the benefits of outsourcingactivities

• Driven by cost of maintaining leadership in all aspects of a vertically integrated business

• Started with non-core, support activities: HR, IT, facility management, …• Moved into mainstream: customer service, distribution, …• Now many major companies outsource manufacturing and product provision

… but R&D - surely not R&D

• For technology led companies, R&D has generally represented the core competency to hold on to

CONFIDENTIAL


Outsource your R&D / general practice

Quite some companies consider R&D entirely as their core competence

Issues:• Not invented here• Loss of control• Drain of in-house expertise• Impact on people and organisation• Trust / guarantees• Outsourcing = expensive

Risks: • Partial loose capability to innovate

• Harder to keep up with technical evolutions

• More difficult to keep up with current market, actual and future developments

CONFIDENTIAL


Competencies / general practice

CONFIDENTIAL


CONFIDENTIAL

Some reflections on subcontracting R&D

What about our key-issues?

CONFIDENTIAL


Outsource your R&D

The general practice is to limit collaborations and partnerships in R&D to the operational level.

However the key succes factors of innovation show clearly importance of the tactical and strategicallevels.

Strategic

Tactical

Operational

Levels in Innovation & R&D management

CONFIDENTIAL


Outsource your R&D

Isn’t this the solution to manage the tactical aspects on innovation management

• Reversed learning curve• Learn efficiently = innovate efficiently• Methodologies• Product development process• Multidisciplinary• Project management• Risk management• Managed Cost• Communication & information• Milestones and deliverables• Experienced in break-through innovation

Are those tactical aspects handled in your organisation.Do you have some doubts?

CONFIDENTIAL


Outsource your R&D

Incremental innovation?• development of existing product• existing market

Radical innovation?• New technologies• New product• New markets outsource

internal

CONFIDENTIAL


Outsource your R&D

Is it just about capacity or are their strategical aspectsdriving the subcontrcating / outsourcing process?

• Re-organisation

• Refocus

• New markets

• New technologies

• Access to new IP

• Access to specialist expertise

• Building expertise

• Filling capability gaps

CONFIDENTIAL


Outsource your R&D

Outsourcing R&D - Alternative approaches / models• Strategic partnering

• Joint ventures

• Manufacturing led development

• IP led

• Contract innovation and development

• Contract resourcing

• Academic institutions

CONFIDENTIAL


CONFIDENTIAL

Managed Innovation Services

CONFIDENTIAL


EmbeddedSystems

Applied physics Mech & IndDesign

System engineering

Test & modelling

NPDNew productsdevelopment

NPINew productsintroduction

FEIFront end of innovation

Innovation and R&D

management

StrategicValue vs Risk management

TacticalMulti disciplinarity ,Options, Added

value

OperationalExperts , SW &

infrastructure

Con

sulta

ncy

Sub

cont

rcat

ing

& P

roje

cts

Hire

ing

/ w

orkp

acka

ges

VERHAERT Managed Innovation Services

CONFIDENTIAL


Outsourcing, hiring or recruiting?

• testimonial

• External specialised knowledge for execution of non-core activities

• When proper employees do not have a possible career path

• Retain sufficient flexibility and consolidation of fixedcontracts in all circumstances

• Project work

CONFIDENTIAL


CONFIDENTIAL


CONFIDENTIAL

Final conclusions

CONFIDENTIAL


Conclusions (1)

Succesfull Product Development requires the right competencies at the right time

Use “Labour” and “Work” as a” scarce and expensive” good whennecessary

Create an agile organisation by setting up a flexible shell:

• Focussing on the core activities

• Flexible employment

• Outsourcing (external as well as inhouse)

• Shared Services – Centers of Excellence

CONFIDENTIAL


Conclusions (2)

• Often implemented as a short-term solutions, however the problem becomes structural.

• Therefore outsourcing should be managed from a more strategic –long term perspective.

• Tactical aspects of R&D is often underestimated and should be covered.

• Mix of different and coordinated collaboration models e.g. Managed Innovation Services should be explored.

CONFIDENTIAL


Questions?

CONFIDENTIAL


Hogenakkerhoekstraat 219150 Kruibeke (B)

tel +32 (0)3 250 19 00fax +32 (0)3 254 10 08

[email protected]

More at www.verhaert.com

helps companies and governmentsto innovate. We design productsand systems for organizationslooking for new ways to providevalue for their customers.We are a leading integratedproduct innovation center; creatingtechnology platforms, developingnew products and business inparallel, hence facilitating new-growth strategies for our clients.

verhaert innovation day 2011 – peter roels (verhaert) - how to optimize your product development

Documents

confidentialgeneration

confidential

confidential

confidential

confidential

tactical aspects

confidential

technical