2009 CEC June 4 Handouts (2)

8/14/2019 2009 CEC June 4 Handouts (2)

1/82

CEC European Managers Triennial Congress 2009, June 4, European Parliament, Brussels

Wake-up Call for European Management: Its Innovation Time!Prof. Hugo Tschirky, PhD, DBA, Swiss Federal Institute of Technology (ETH)

European Institute for Technology and Innovation Management (EITIM)Helbling Management Consulting AG

Copyright Prof. Hugo Tschirky, PhD, DBA page 1

CEC European Managers Triennial Congress 2009June 4, 2009, European Parliament, Brussels


a e-up a or uropean anagemen :Its Innovation Time!

a e-up a or uropean anagemen :Its Innovation Time!

1.1. Europes threatened global competitivenessEuropes threatened global competitiveness2.2. CEOs main concernsCEOs main concerns3.3. Are current Euro ean innovation initiatives effective?Are current Euro ean innovation initiatives effective?

ET H D e pa r tme n t o f Te c h n o logy, Ma n a g e m e n t , a n d E con o m ics - P ro f . Hugo Tsch i rky ET H D e pa r tme n t o f Te c h n o logy, Ma n a g e m e n t , a n d E con o m ics - P ro f . Hugo Tsch i rky Page 1

4.4. Its the final mile that counts!Its the final mile that counts!5.5. Innovation is not black artInnovation is not black art6.6. Company creativity & innovativeness: Best in Class examplesCompany creativity & innovativeness: Best in Class examples7.7. SummarySummary

CurriculumCurriculum ETHETH--Diploma: Mechanical EngineeringDiploma: Mechanical Engineering(1964)(1964)ETHETH--DoctorateDoctorate: Nuclear Reactor Technology: Nuclear Reactor Technology(1968)(1968)ETHETH--DoctorateDoctorate: Business Administration: Business Administration (1978)(1978)Research Activity: San Diego, USAResearch Activity: San Diego, USA(1968(1968--7171))Management Experience: CEO, CarlManagement Experience: CEO, Carl ZeissZeiss ((SchweizSchweiz) AG) AG

--Management Experience: CEO, Cerberus AGManagement Experience: CEO, Cerberus AG -- 30003000EmployeesEmployees (1976(1976--82)82)

ETH: Professor of ManagementETH: Professor of Management(1982(1982--2006)2006)General Management, Technology and Innovation ManagementGeneral Management, Technology and Innovation ManagementResponsible for Postgraduate StudiesResponsible for Postgraduate StudiesResearch and Teaching Sabbatical in JapanResearch and Teaching Sabbatical in Japan (1992)(1992)


--Research and Teaching Sabbatical at MITResearch and Teaching Sabbatical at MIT(2000)(2000)Boards of Directors: various Industrial and FinancialBoards of Directors: various Industrial and FinancialEnterprises (Canon AG,Enterprises (Canon AG, Drger Drger AG,AG, LogObjectLogObject AG,AG,Helbling AGHelbling AG, MSI AG, SONAC (Japan) KK, GATIC Japan, MSI AG, SONAC (Japan) KK, GATIC JapanLLP)LLP)


2/82







-Its Innovation Time!





In 2005, the world producedmore transistors (and at lower

cost) than grains of rice!(IBM, 2006)

In 2005, the world producedmore transistors (and at lower

cost) than grains of rice!(IBM, 2006) ))



3/82





Technology & Innovation Management (MOT): a Management ProcessTechnology & Innovation Management (MOT): a Management Process

InputInput Technology- and Innovation Management Process (MOT)Technology- and Innovation Management Process (MOT)

FinanceFinance TechnologyTechnology InnovationInnovationBasic KnowledgeBasic Knowledge FinanceFinanceCompetitivenessCompetitiveness

OutputOutput


Product Life CycleProduct Life CycleProduct Life CycleProduct Life Cycle

lost marketlost market volumevolumelost marketlost market volumevolume

timely market entrytimely market entry

technologytechnology complexitycomplexitytechnologytechnology complexitycomplexity

ss cruc acruc a

activeactive technologytechnologymana ementmana ement

activeactive innovationinnovationmanagementmanagement


R&DR&D CycleCycleR&DR&D CycleCycle MarketMarket CycleCycleMarketMarket CycleCycle


4/82





R&DProject

Critical R&D-Project Deviations R&D(Siemens)Critical R&D-Project Deviations R&D(Siemens)

IncreasingIncreasing

EarningsEarnings

Duration:

5 Years

ro ec os :ro ec os : e uc one uc on

Increasing ProjectIncreasing ProjectDuration:Duration: 6 Months6 Months

EarningsEarningsReductionReduction 30%30%

ET H D e pa r tme n t o f Te c h n o logy, Ma n a g e m e n t , a n d E con o m ics - P ro f . Hugo Tsch i rky ET H D e pa r tme n t o f Te c h n o logy, Ma n a g e m e n t , a n d E con o m ics - P ro f . Hugo Tsch i rky Page 7Siemens 1990Siemens 1990

typicaltypical documentsdocuments::20002000

EUEU LisbonLisbonConferenceConference

20002000Stimulating Creativity &

Innovation in Europe

20042004 2005200519961996

EC GreenEC Green

Deep Concerns Every Year - Since Many Years: The European Innovation GapDeep Concerns Every Year - Since Many Years: The European Innovation Gap

200820082007200720052005 20062006

AhoAho--ReportReport

20092009

European Year European Year of of CreativityCreativity &&

Paper onPaper onInnovationInnovation


typicaltypical statementsstatements::

nnova onnnova on

Compared with thescientific performance of its principal competitors, that of Europe isexcellent. ... One of Europes major weaknesses lies in itsinferiorityof transforming the

results of technological research and skills into innovations and competitive advantages. ...

Compared with thescientific performance of its principal competitors, that of Europe isexcellent. ... One of Europes major weaknesses lies in itsinferiorityof transforming the

results of technological research and skills into innovations and competitive advantages. ...


5/82





25%

20%

15%Asia

World Market Shares (World Bank, 2007)(% of total world exportsby value)

EU-25

Europas Failing Innovativeness and Economic StrengthEuropas Failing Innovativeness and Economic Strength

Europas Share of the World Market has

Europas Share of the World Market has

2000 2001 2002 2003 2004 2005 2006

10%

5%

0%

InnovativenessInnovativeness EU, USA & JapanEU, USA & JapanUSAUSA

JAPANJAPAN

..

Europas InnovationEuropas Innovation


EU Innovation Performance

European Commission 2005

EUEU

19961996 19971997 19981998 19991999 20002000 2001 20022002 20032003

EuropesEuropes Innovation GapInnovation Gap

USA and Japan isincreasinglysignificant.

USA and Japan is

increasinglysignificant.

The Still Drastic Innovation Gap Towards the US and JapanThe Still Drastic Innovation Gap Towards the US and Japan



6/82












MainMain IssueIssue 2004: Innovation2004: Innovation1.1. InnovationInnovation toto drivedrive profitableprofitable growthgrowth2.2. AppropriateAppropriatecompanycompany ((culturalcultural)) responsivenessresponsiveness

MainMain IssueIssue 2006: Innovation2006: Innovation1.1. Business modelBusiness model innovationinnovation mattersmatters2.2. StillStill needneed toto focusfocus onon productproduct,, serviceservice andand

IBM Global CEO Study 2004 (N=450)IBM Global CEO Study 2004 (N=450)


IBM Global CEO Studies: Innovation is Main Issue of ConcernIBM Global CEO Studies: Innovation is Main Issue of Concern

MainMain IssueIssue 2008: Innovation2008: Innovation1.1. 80%80% expectexpect indispensibleindispensible innovationalinnovational changeschanges

of of their their organizationsorganizations2.2. However However:: gapgap betweenbetween expectedexpected changechange andand

operationaloperational innovationinnovation3.3. For Forthatthat,, externalexternal collaborationcollaboration isis indispensibleindispensible4.4. InnovationInnovation requiresrequires orchestrationorchestration fromfrom thethe toptop5.5. Better Better integrateintegrate businessbusiness andand technologytechnology



a ya y oo managemanage asas r p er p e s nces nce3.3. NearlyNearly allall CEOsCEOs areare adaptingadapting their their businessbusiness

modelmodel,, mostlymostly toto becomebecome moremore collaborativecollaborative4.4. BeingBeinginnovativeinnovativebeyondbeyond thethe -- increasinglyincreasingly

demandingdemanding customerscustomers imaginationimagination5.5. AcceptAccept andand promotepromote radicalradical innovativeinnovative changeschanges

of of businessbusiness model,model, productsproducts,, servicesservices,,technologytechnology,, deliverydelivery andand industrialindustrial reachreach


7/82





Conclusions from European SWOT Analysis: Generic Strategic OptionsConclusions from European SWOT Analysis: Generic Strategic Options

European strengthsEuropean strengths

European opportunities growing world market hybrid demand (high + low end) increasing services demand

European opportunities growing world market hybrid demand (high + low end) increasing services demand

European threats acceleratedAsian economy Asian working virtues Asian productivity

European threats acceleratedAsian economy Asian working virtues Asian productivity

EuropeanSWOT Analysis

EuropeanSWOT Analysis

GenericGeneric strategicstrategic optionsoptions multi-cultural inspiration original creativity selective exemplary leadership education tradition

multi-cultural inspiration original creativity selective exemplary leadership education tradition

European weaknesses (unlimited?) individualismEuropean weaknesses (unlimited?) individualism

focusfocus towardstowards highhigh endend aboveabove--averageaverage innovationinnovation competencecompetence aboveabove--averageaverage innovationinnovation cultureculture leadershipleadership expertiseexpertise multiplicationmultiplication

(i.e.(i.e. groupsgroups of of innovationinnovation excellence)excellence) tirelesstireless productivityproductivity improvementsimprovements interculturalintercultural collaborationcollaboration competencecompetence

((strategicstrategic alliancesalliances)) promotepromote creativitycreativity --


social network: too muchhammock-like (example: 7 mioGerman precarious people)

learning-after-shock-behavior tendency towardscomplacancy self-fulfilling unions administrative complexity aging society

social network: too muchhammock-like (example: 7 mioGerman precarious people)

learning-after-shock-behavior tendency towardscomplacancy self-fulfilling unions administrative complexity aging society

-- becomebecomemuchmuch faster faster,, muchmuch moremore skilledskilled

andand muchmuch moremore creativecreative





1.1. Europes threatened global competitivenessEuropes threatened global competitiveness2.2. CEOs main concernsCEOs main concerns


..4.4. Its the final mile that counts!Its the final mile that counts!5.5. Innovation is not black artInnovation is not black art6.6. Company creativity & innovativeness: Best in Class examplesCompany creativity & innovativeness: Best in Class examples7.7. SummarySummary


8/82





In order to improve threatenedIn order to improve threatenedcompetitiveness and

innovativeness, large scaleprograms and initiatives are

competitiveness andinnovativeness, large scaleprograms and initiatives are


aunc e .aunc e .

Innovation Policy Example:The 7th European Framework Programme FP7 (2007 2013)

Innovation Policy Example:The 7th European Framework Programme FP7 (2007 2013)

AccordingAccording toto thethe LisbonLisbon Council (March 2000)Council (March 2000)following the 6following the 6

ththframeworkframework ProgrammeProgramme (17 billion Euros)(17 billion Euros)

Europe is to become the world's mostEurope is to become the world's mostcompetitive economic areacompetitive economic area

NineNine Key Areas:Key Areas: HealthHealth Food,Food, AgricultureAgricultureandandBiotechnologyBiotechnology InformationInformation andandCommunication TechnologiesCommunication Technologies NanosciencesNanosciences, , NanotchnologiesNanotchnologies, Materials, Materials andandnewnew

ProductionProductionTechnologiesTechnologies EnergyEnergy

The Seventh FrameworkProgramme in brief


Environment (Environment (includingincludingClimateClimateChange)Change) Transport (Transport (includingincludingAeronauticsAeronautics) ) SocioSocio--economiceconomicSciencesSciencesandandHumanitiesHumanities SecuritySecurity andandSpaceSpace

Budget: 72.7 Billion EurosBudget: 72.7 Billion Euros


9/82





How effective are suchHow effective are such

1. The time constant of effectivenessis t icall uite lon : 10-15 ears.

1. The time constant of effectivenessis t icall uite lon : 10-15 ears.


ResearchResearchProgramsPrograms

The Long WayThe Long Way fromfrom KnowledgeKnowledge CreationCreation toto KnowledgeKnowledge UtilizationUtilization &&IncreasedIncreased CompetitivenessCompetitiveness

KnowledgeKnowledgeCreationCreation

KnowledgeKnowledgeUtilizationUtilization&&

IncreasedIncreased ComCom--petitivenesspetitiveness







EU:EU:2020 miomio finalfinal milesmiles


BasicBasicResearchResearch

AppliedAppliedResearchResearch

TechnologyTechnologyDevelopmentDevelopment

TechnologyTechnologyDiffusionDiffusion

ManagementManagementDecisionDecision

Customer Customer DecisionDecision

InnovationInnovationDevelopmentDevelopment

thethe finalfinal milemile


10/82





Europes Critical Innovation Deficit: non-Effective Actions Europes Critical Innovation Deficit: non-Effective Actions

Lisbon European CouncilLisbon European Council2323--24 March 200024 March 2000EU to become EU to become the most the most competitive and dynamic competitive and dynamic knowledge knowledge- -based economy based economy in the world in the world capable of capable of

Barcelona European CouncilBarcelona European Council1515--16 March 200216 March 2002 to close the gap between the to close the gap between the EU and its major competi tors, EU and its major competi tors, overall overall spending on R&D and spending on R&D and innovation in the Union should innovation in the Union should

25%

20%

15%

10%

Asia

US

World Market Shares (World Bank, 2007)(% of total world exportsby value)

EU-25

sus a na e econom c sus a na e econom c growth with more and better growth with more and better

jobs and greater social jobs and greater social cohesion. cohesion.

e ncrease w e a m o e ncrease w e a m o approaching 3% of GDP by approaching 3% of GDP by 2010. 2010. 2000 2001 2002 2003 2004 2005 2006

5%

0%

EffectivenessEffectiveness??????


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

7272 bnbn

Seventh FrameworkProgramme

2007-13

1717 bnbn

Sixth FrameworkProgramme

2002-06









11/82





How effective are suchprograms and initiatives?

How effective are suchprograms and initiatives?

2. Once new knowledge has reachedthe company, more competitivenessis still far from being produced!

2. Once new knowledge has reachedthe company, more competitivenessis still far from being produced!


The cruicial role of the final mileThe cruicial role of the final mile

In other words:

- -

In other words:

- -.Programs are incompletemeasures to boost Europescompetitivenes.

.Programs are incompletemeasures to boost Europescompetitivenes.


. ere ore: c are appropr a emeasures?

. ere ore: c are appropr a emeasures?


12/82





InputInput capitalcapital researchresearch programprogram resultsresults

(NSF, DOD, EU, ...)(NSF, DOD, EU, ...)

OutputOutput returnreturnonon capitalcapital competitivenesscompetitiveness financialfinancial performanceperformance

Where is Competitiveness being produced?The Cruical Enterprenuerial Role of the Final MileWhere is Competitiveness being produced?The Cruical Enterprenuerial Role of the Final Mile

Technology & InnovationTechnology & InnovationManagementManagement ProcessProcess (MOT)(MOT)

un v ers yunvers y researcresearc resu sresu s professionalprofessional educationeducation syst.syst. publicpublic infrastructureinfrastructure supplierssuppliers productsproducts && servicesservices resourcesresources ((energyenergy, ), ) taxtax systemssystems lawlaw systemssystems nationnation--culturalcultural valuesvalues

newnewjobs jobs newnew investmentsinvestments GNPGNP contributioncontribution strengthenedstrengthened economyeconomy learninglearning experienceexperience societalsocietal usefulnessusefulness environmentalenvironmental impactimpact

Internal (MOT)Internal (MOT) CompetenciesCompetenciesInternal (MOT)Internal (MOT) CompetenciesCompetencies

engagedengaged toptop managementmanagement visionsvisions innovationinnovation cultureculture

InputInput OutputOutputBusinessBusiness ProcessesProcesses


knowledgeknowledge monitoringmonitoring decentralizeddecentralized structuresstructures effectiveeffective innovationinnovation processesprocesses

OutputOutput--ThinkingThinking sayssays::CompetitivenessCompetitiveness dependsdepends onon bothboth:: usefulusefulinputinput asas wellwell asas MOTMOT--qualityquality!!

Problem of Large Scale Promotion of Innovativeness:They practice Input-Thinking - instead of Output-Thinking

Problem of Large Scale Promotion of Innovativeness:They practice Input-Thinking - instead of Output-Thinking

IInputnput--ThinkingThinking sayssays::TheThe moremore usefuluseful inputinput thethe moremoreusefuluseful outputoutput!!

--crucialcrucial rolerole!! NoNo suchsuch lawlaw of of naturenature!!

ExampleExample::JapanJapan



13/82





METI WorkshopMETI WorkshopMarchMarch 20032003

ET H D e pa r tme n t o f Te c h n o logy, Ma n a g e m e n t , a n d E con o m ics - P ro f . Hugo Tsch i rky ET H D e pa r tme n t o f Te c h n o logy, Ma n a g e m e n t , a n d E con o m ics - P ro f . Hugo Tsch i rky Page 25Representatives from USA, Japan & EuropeRepresentatives from USA, Japan & Europe

..

Japans Excellent Position for Global Technology & Innovation CompetitivenessJapans Excellent Position for Global Technology & Innovation Competitiveness

GrossGross DomesticDomestic ExpenditureExpenditure on R&D (OECDon R&D (OECD FactFact BookBook 2006)2006)as aas a percentagepercentage of GDPof GDP

R&D IntensityEU, USA, JapanR&D IntensityEU, USA, Japan

2.52.5

3.03.0

3.53.5

2.682.68

3.153.15

High R&D IntensityHigh R&D Intensity High MOT PotentialHigh MOT Potential High Technology &High Technology &Innovation PotentialInnovation Potential

Sustained globalSustained globalInnovationInnovation


ETH Centerfor EnterpriseScience Group ofTechnology& InnovationManagement(Prof. HugoTschirky) ETH Center for EnterpriseScience Group ofTechnology& InnovationManagement (Prof. Hugo Tschirky)

1.51.5

2.02.0

1.01.08282 8484 8686 8888 9090 9292 9494 9696 9898 0000 0202 0404

1.911.91 CompetitivenessCompetitivenessPotentialPotential


14/82





pplanninglanning aa threethree MichelinMichelin star star gourmetgourmet restaurantrestaurant

Input-Thinking also means:Input-Thinking also means:

on a primeon a prime locationlocation onon ChampsChamps dElysesdElyses engagingengaging thethe mostmost famousfamous architectarchitect equippedequipped withwith thethe worldsworlds bestbest librarylibrary of of recipeesrecipees butbut never never worr worr aboutabout thethe chefschefs cookincookin


competencecompetence

The most promising way to cure The most promising way to cure the European innovation gap is the European innovation gap is

Lesson Learnt?Lesson Learnt?

t e t e management s proact ve management s proact ve ambition ambition to to complete their complete their decision competence today decision competence today


a result of decisions which will a result of decisions which will

be taken tomorrow.be taken tomorrow.


15/82





Innovation Inspite of Recession!Innovation Inspite of Recession!3M CEO George Buckley:

3Ms reputation as the goldstandard for innovation comesfrom beingwilling to invest in

R&D no matter what sort of shapehe econom is in.

'Innovate to Compete, May 15, 2009DaminiKumar,

Europes Ambassador for the 2009European Year of Creativity &

Innovation.

Innovating out of recessionGlobal entrepreneurship expert

ErkkoAutio warns that the


just one escape route: continued

investment in innovation. Malaysia plans to emphasize"greater creativity, innovation andhigh-value" as part of an effort to

fight recession and sparkeconomic growth, Prime Minister

Najib Razak said.









16/82






Business ManagementBusiness Management ProcessProcess

TwoTwo ComplementaryComplementary BusinessBusiness EnginesEngines::Value Creation Machine & Innovation MachineValue Creation Machine & Innovation Machine

BusinessBusinessStrategyStrategy BusinessBusinessResultsResults



17/82






TwoTwo ComplementaryComplementary BusinessBusiness EnginesEngines::Value Creation Machine & Innovation MachineValue Creation Machine & Innovation Machine

ValueValue CreationCreation MachineMachineExistingExisting: Products, Services,: Products, Services, MarketsMarkets,, BusinessesBusinesses

Innovation NeedInnovation Need

Innovation SupplyInnovation Supply

New: Products, Services, Markets, BusinessesNew: Products, Services, Markets, Businesses

BusinessBusinessStrategyStrategy

BusinessBusinessResultsResults

ET H D e pa r tme n t o f Te c h n o logy, Ma n a g e m e n t , a n d E con o m ics - P ro f . Hugo Tsch i rky ET H D e pa r tme n t o f Te c h n o logy, Ma n a g e m e n t , a n d E con o m ics - P ro f . Hugo Tsch i rky Page 33TyTy / 13.8.08 / 13.8.08

InnovationInnovation Creation MachineCreation Machine


Two Complementary Business Engines:Value Creation Machine & Innovation Machine

ValueValue CreationCreation MachineMachineExistingExisting: Products, Services,: Products, Services, MarketsMarkets,, BusinessesBusinesses

Innovation NeedInnovation Need

Innovation SupplyInnovation Supply

New: Products, Services, Markets, BusinessesNew: Products, Services, Markets, BusinessesBusinessBusinessStrategyStrategy BusinessBusinessResultsResults


InnovationInnovation Creation MachineCreation Machine


18/82












Elements of Integrated ManagementElements of Integrated Management

Management Concept(Meaningful Structure of Elements)Management Concept

(Meaningful Structure of Elements)

Challen e of Challen e of Normative (Policy) Level Normative (Policy) Level


TechnologicalChange

TechnologicalChange

Operational Level Operational Level

trateg c eve trateg c eve


19/82


20/82





A Paradigm Shift:From Technology Leadership to Innovation Leadership

A Paradigm Shift:From Technology Leadership to Innovation Leadership

Companys self-conceptCompanys self-concept

.. ..

Company Company saidsaid yesterdayyesterday::WeWe areare aa leadingleading supplier supplier of of

Company Company sayssays todaytoday::WeWe enableenable perfectperfect surfacessurfaces!!

CompanyCompany Customer Customer CompanyCompany Customer Customer InnovationInnovation InnovationInnovation


technologytechnology capabilitycapability drivendriven R&DR&D focusedfocused technologytechnology isis partialpartial solutionsolution limitedlimited innovationinnovation potentialpotential

marketmarket needneed drivendriven customer customer focusedfocused technologytechnology isis partpart of aof a solutionsolution extendedextended innovationinnovation potentialpotential

((includingincluding serviceservice businessesbusinesses ))

A Paradigm Shift:A Paradigm Shift:From Technology (Product) Leadership to Innovation LeadershipFrom Technology (Product) Leadership to Innovation Leadership

more examples:more examples:

A Paradigm Shift:A Paradigm Shift:From Technology (Product) Leadership to Innovation LeadershipFrom Technology (Product) Leadership to Innovation Leadership

more examples:more examples:

Technology & Product Vision:Technology & Product Vision:Technology & Product Vision:Technology & Product Vision: Innovation Leadership Vision:Innovation Leadership Vision:Innovation Leadership Vision:Innovation Leadership Vision:

We provide wealth management,We provide wealth management,asset management and investmentasset management and investment

banking services.banking services.

We provide confidance in financialWe provide confidance in financialaffairs.affairs.

We are a leading provider of We are a leading provider of industrial filtre technologies.industrial filtre technologies. We prevent airborne contamination.We prevent airborne contamination.


WeWe areare aa leadingleading producer producer of of washingwashing machinesmachines for for hospitalhospital andand

pharmaceuticalpharmaceutical applicationsapplications..WeWe provideprovide infectioninfection ccontrolontrol


21/82





Business Innovation: Infection ControlBusiness Innovation: Infection Controlcase: washing machine producer case: washing machine producer multiplication of washing, cleaning & dryingmultiplication of washing, cleaning & dryingcompetence into hospital andcompetence into hospital and pharmapharma industryindustryunder innovation vision infection control:under innovation vision infection control:business extension: disinfection,business extension: disinfection,sterilisation, packaging, detergentssterilisation, packaging, detergents


new business > new culture > newnew business > new culture > neworganisational unit:organisational unit: BelimedBelimed Co.Co.highlyhighly profitable: Sales 2008: CHF 194.4 (+6%)profitable: Sales 2008: CHF 194.4 (+6%)

Visible TopManagement Engagement

Visible TopManagement Engagement



22/82





Example of Innovation Leadership:

Yamato Transport KKExample of Innovation Leadership:

Yamato Transport KK


Yamato Yamato Holdings Co, LtdHoldings Co, LtdSalesSales 20082008: $: $1223612236 millionmillion (100(100%)%)

DeliveryDeliveryBusinessBusiness

83%83%

BIZBIZ--LogisticsLogisticsBusinessBusiness

9%9%

HomeHomeConvenienceConvenience

4%4%

ee--BusinessBusiness

2%2%

FinancialFinancialBusinessBusiness

2%2%

KaoruSeto

President

KaoruSeto

President

KeijiAritomiChairman

KeijiAritomiChairman

MakotoKigawa

Vicepresident

MakotoKigawa

Vicepresident

Annual Report 2007 Annual Report 2008


TakkybinCool TakkyubinCollect ServiceKuroneko Mail

TakkybinCool TakkyubinCollect ServiceKuroneko Mail

logist. servicesJapan-Overseas

int. movingclearence serv.

logist. servicesJapan-Overseas

int. movingclearence serv.

movingservicesmerchandise

marketingrelated services

movingservicesmerchandise

marketingrelated services

outsourcedinformationprocessing

computer syst.

outsourcedinformationprocessing

computer syst.

financialsettlement

cashcollection

financialsettlement

cashcollection


23/82


24/82






SecretSecret of of KuronekosKuronekos SuccessSuccess::ThoroughlyThoroughly CultivatedCultivated Company CultureCompany Culture

managersmanagers::eliminateeliminate,, ignoranceignorance,,

negligencenegligence && complacencycomplacency

managersmanagers::gogototo thethe front,front,

recognizerecognize thethe realityreality

highhigh dignitydignity managementmanagementfor for everlastingeverlasting

businessbusiness growthgrowth

eliminateeliminate wastewaste,,irregularityirregularity && excessexcess

employeesemployees mustmustseesee themselvesthemselvesasas sushisushi chefschefs

deliverydelivery serviceservice isisthethe extensionextension of of thethe

customerscustomers willwill

(1)(1) accomplishaccomplish targettarget,,(2)(2) sustainsustain thethe groupgroup

amatoamatoSpiritSpirit


our our wageswages comecomefromfrom our our servicesservices

serviceservice beforebeforeprofitprofit

createcreate servicesservicesbyby recipientsrecipientspointpoint of of viewview

employeesemployees mustmust behavebehavelikelike soccer soccer playersplayers

(not(not likelike baseballbaseball playersplayers))

highhigh serviceservice qualityqualityisis mainmain businessbusiness driver driver

thethe fundamentalfundamentalisis courtesycourtesy


25/82





Board & TopManagement Structures

Board & TopManagement Structures


HP with Strong Normative Technology Management StructuresHP with Strong Normative Technology Management Structures

Executive ManagementExecutive Management

TechnologyTechnologyAdv. BoardAdv. Board

Board of Board of DirectorsDirectorsTechnologyTechnologyCommitteeCommittee

December December19, 2002. 19, 2002. HPHP hashascreatedcreateda atechnologytechnology advisoryadvisory boardboard peopledpeopledwithwith

luminariesluminarieslikelike InternetInternet pioneer pioneer VintonVinton Cerf Cerf totogivegive itit outsideoutside perspectiveperspectiveonon itsits strategystrategy. .

Business SegmentsBusiness SegmentsTechnology CouncilTechnology Council

CTOCTO CTOCTO CTOCTOCTOCTO

CTOCTOCEOCEO CFOCFO CMOCMO CHRCHR EVPEVP

EVPEVPEVPEVP EVPEVP EVPEVP EVPEVP EVPEVP

December December 19, 2002. In an19, 2002. In an unusualunusual stepstepfor for aalargelarge companycompany, Hewlett, Hewlett- -Packard'sPackard's boardboard of of

directorsdirectorshashascreatedcreateda a technologytechnology subsub--committeecommittee totohelphelpensureensure thatthat thethePaloPaloAltoAltocomputer computer andand printer printergiantgiant doesn'tdoesn'tmissmissanyany moremore bigbig technologytechnology revolutionsrevolutions

Shane V.Shane V. RobisonRobison

Shane V.Shane V. RobisonRobison

ar ur ar ur Chairman & CEOChairman & CEO

ar ur ar ur Chairman & CEOChairman & CEO


CTOCTO CTOCTO CTOCTO

chairedchairedbybythethe Chief Chief CTOCTO setssetsthethecompany'scompany's technologytechnology agendaagenda ,, evaluatesevaluates technologytechnology standardsstandards

initiativesinitiatives,, allocatesallocates technicaltechnical resourcesresources ,, coordinatescoordinates crosscross--companycompanyarchitecturearchitecture

strategiesstrategies andand platformsplatforms,, andand conductsconducts periodicperiodic technologytechnology auditsaudits..

CTOCTO

ShaneShane RobisonRobison, , Chief Chief CTOCTO,, isis responsibleresponsible to to thetheCEOCEO for for shapingshapingHP'sHP's overalloverall corporatecorporate strategystrategy andand technologytechnology agendaagenda,, steeringsteering thethe company'scompany's $4$4 billionbillion annualannual R&DR&D investmentinvestment.. leadingleading thethecompany'scompany's senior senior CTOsCTOs andand thethe director director of HP Labsof HP Labs,, leadingleadingthethe company'scompany's strategystrategy andand corporatecorporate developmentdevelopment

effortsefforts, , includingincluding mergersmergers,, acquisitionsacquisitions,, divestituresdivestitures andand partnershipspartnerships ..


26/82





Leadership Care for Company Culture

Leadership Care for Company Culture




27/82





Company CultureCompany CultureCompany CultureCompany Culture

a unique pattern of shareda unique pattern of shared basic assumptionsbasic assumptionslearned as a grouplearned as a groupas it solved its problems of external adaptation andas it solved its problems of external adaptation andinternal integrationinternal integrationthat has worked well enough to be considered valid and,that has worked well enough to be considered valid and,therefore, to be taught to new members as the correcttherefore, to be taught to new members as the correctway to perceive, think, and feel in relations to thoseway to perceive, think, and feel in relations to thoseproblems.problems.

(Schein: 1992: 12)(Schein: 1992: 12)


(Schein: 1992: 12)(Schein: 1992: 12)

Company CultureCompany CultureCultural Change: Primordial Managerial Challenge

1.?

2.?

1. How do you rate the duration of your innovation projects?

2. How is this duration compared to your competitors?

3. How does Nitta master the NIH (NotInvented Here) syndrome?

4. To which extend is Nitta able to overcome

currentcurrentbehavior behavior ((visiblevisible))

currentbasic

assumptions(not visible)

currentbasic


currentbasic


changechangeprocessprocess))

requiredbasic


requiredbasic


requiredbasic


requiredrequiredbehavior behavior ((visiblevisible))

3. NIH (Not Invented Here)?

4.?

5. ?6.

?7.

intercultural barriers?5. To which extend is Nitta involved in

international cooperations?6. To which extend are strategic goals

communicated within the company?7. How does Nitta master the exponentially

increasing information overflow?8. How does Nitta proceed to distribute the

information within its company?

AnalysisAnalysis


8.?

9.?

10.

?

. o w c ex en s e eve opmen ocompetencies treated as a strategicsubject?

10. To which extend does Nitta break downstrategic goals in to operational goals to bequantifiable for each employee?


28/82





Investigation of ABB Company CultureInvestigation of ABB Company Culture -- ABBABB(Situation of ABB after Merger ASEA & BBC in 1989(Situation of ABB after Merger ASEA & BBC in 1989 -- 19891989 BBCBBC ASEAASEA ABBABB ))

Investigation of ABB Company CultureInvestigation of ABB Company Culture -- ABBABB(Situation of ABB after Merger ASEA & BBC in 1989(Situation of ABB after Merger ASEA & BBC in 1989 -- 19891989 BBCBBC ASEAASEA ABBABB ))


Tent Culture?Tent Culture?

Flexibility and IndividualismFlexibility and Individualism

Investigation of ABB Company Culture - ABB(Situation of ABB after Merger ASEA & BBC in 1989 - 1989BBC ASEA ABB )

Investigation of ABB Company Culture - ABB(Situation of ABB after Merger ASEA & BBC in 1989 - 1989BBC ASEA ABB )

TypicalTypical measuresmeasurestakentaken byby toptop

managementmanagement??

Internal OrientationInternal Orientation External OrientationExternal Orientation

3030

10102020

30304040

5050 50504040

3030

20201010

4040

30302020

1010

4040

20201010

ObjectiveObjective--OrientedOriented

Dynamic/Dynamic/InnovativeInnovative

HierarchyHierarchy

TeamTeam--orientedoriented

19901990

19931993


Stability and ControlStability and Control

50505050Palace Culture?Palace Culture?


29/82





Canon Inc.Canon Inc.


Promotion of Individuality at CanonPromotion of Individuality at Canon

jichi jichiAutonomyAutonomy

jikaku jikakuSelfconfidenceSelfconfidence

jihatsu jihatsuSpontaneitySpontaneity



30/82





Promotion of Individuality through Lowering Hierarchical BarriersPromotion of Individuality through Lowering Hierarchical Barriers

The Canon Meeting Room atThe Canon Meeting Room atthe Research Center Atsugithe Research Center Atsugi

CanonCanon


Cultural Barrier Cultural Barrier

Development of Working GroupsDevelopment of Working Groups


IndividualsIndividuals GroupsGroups"Group-consciousIndividuals

"Group-consciousIndividuals

"Individual-consciousGroups

"Individual-consciousGroups


31/82






The GoogleplexThe Googleplex



32/82





Googles Nine Points of InnovationGoogles Nine Points of Innovation1. Innovation, not instant perfection.New products are launched early, rather than trying to perfect those ideasbehind closed doors. Customer feedback and popularity prove which projectsare most successful.

2. Share everything you can.Small teams that communicate openly have proved the best results for Google. Everyone knows what everyone else is working on.

3. Youre brilliant, were hiring.The bar for hiring new employees is set very high. Focus more on generalistsrather than specialists.

4. Allow employees to pursue their dreams.Employees time follows a 70/20/10 model: 70% they work on Googles searchand ad flagships; 20% on new programs like Images, Desktop;10% of the

6. Dont politic use data.With all the ideas floating around Google, the best wayto determine which may work is to use supportive data.Data beats opinion.

7. Creativity loves restraint.

Eric Schmidt , Google CEOEric Schmidt , Google CEO


me empoyees pursue e r own g r s g rewar proec s . oogeEarth is a result of one of those projects.

5. Ideas come from everywhere.Sometimes Google turns to the public for new ideas.The Google mastheads, which are customized for holidays and events, are taken from non-employeesubmissions. One of the mastheads was designed bya 12-year-old girl.(masthead = logo)

,exploration!

8. Get users and usage the money will follow.Primarily focus oncreating things that are innovative and useful for people, notsomething you can sell.

9. Dont kill projects, morph them.Google doesnt waste ideas. Instead, they try to change and transform them intosomething the company finds useful.



33/82





HILTI Cultural Management: Our Cultural Journey New ImpetusHILTI Cultural Management: Our Cultural Journey New Impetus


New Impetus:New Impetus: The positive energy that theThe positive energy that the sherpasherpa workshops haveworkshops havereleased will also be seen in the HILTI Team Camps.released will also be seen in the HILTI Team Camps.

Beyond Customer Imagination

Beyond Customer Imagination



34/82





Example: Time Analysis of Cable Racks Installation (Hilti)Example: Time Analysis of Cable Racks Installation (Hilti)low-techlow competitionimprovement

otential: 30-40%

low-techlow competitionimprovement

otential: 30-40%high-tech high-tech

Source of Innovation: Work AnalysesSource of Innovation: Work Analyses

MeasureMeasure 28%28%

new innovationpotentialnew innovationpotential

improvementpotential: 4-8%rather depletedinnovation potential

improvementpotential: 4-8%rather depletedinnovation potential

DrillDrill 17%17%

Place the plugsPlace the plugs 10%10%

Mount the consolesMount the consoles 24%24%


Mount the cable racksMount the cable racks 21%21%

Research Organization HiltiResearch Organization Hilti

Corporate CentralCorporate CentralResearchResearch

InterdisciplinaryInterdisciplinary

DemolitionDemolitionS stemsS stems

Search TeamsSearch Teams

Positioning &Positioning &Sensor TechnolSensor Technol

FasteningFasteningS stemsS stems

Work FlowWork FlowAnal sesAnal ses


QualityQualityManagementManagement

NumericalNumericalSimulationSimulation

Materials &Materials &EngineeringEngineering


35/82





Videoanalysis: Example Hilti Direct Fastening Technology ApplicationVideoanalysis: Example Hilti Direct Fastening Technology Application

Duration of Welds, Welder 0

400

450

500

Fix Deck - Phoenix


0

50

100

150

200

250

300

0 . 5

0

1 . 0

0

1 . 5

0

2 . 0

0

2 . 5

0

3 . 0

0

3 . 5

0

4 .

0 0

4 . 5

0

5 . 0

0

5 . 5

0

6 . 0

0

6 . 0

0

6 . 5

0

7 . 0

0

7 . 5

0

8 . 0

0

8 . 5

0

9 . 0

0

9 . 5

0

1 0

. 0 0

1 0

. 5 0

sec

F a s

t e n

i n g

P o i n

t

http ://www.hilti .com16.01.2003/ TNc, TNn/ 040116 TT prep.ppt

Welding related activities amount to86% of the time (including hammer)

Average welding rate of 334 weldsper hour

Rod was changed on average onceevery 11 welds

Actual weld time was 2.6 seconds

56%

2%

11%

8%

0%

2%

7%

0%

3%

1%

0%

8% 0%0%

2%PuddleweldSkylight weld

Hammer deck

Walk during fastening

Breakdown

Handlecable

Recover

Refill rods

Walk

Interruption

Tidy/arrange

communicate

Safety measures

Idle

Misc. carry



36/82





The Customer Observatories at Swisscom Innovation AGHow do people use technology in their daily life?

The Customer Observatories at Swisscom Innovation AGHow do people use technology in their daily life?

Home ObservatoriesHome Observatories Business ObservatoriesBusiness Observatories

observeobserve

PhotoPhotoInterviewInterview

VideoVideo

PhotoPhoto

VideoVideo


VideoVideo

Panasonic House of Panasonic House of thethe FutureFuturePanasonic House of Panasonic House of thethe FutureFuture



37/82








38/82





Just LookJust Look

"" Prof. Kohei AraiProf. Kohei Arai

Saga UniversitySaga University


Business (Technology)Intelligence Systems

Business (Technology)Intelligence Systems



39/82





Technology Intelligence System: Part of Business IntelligenceTechnology Intelligence System: Part of Business Intelligence

(Business)TechnologyInformation

(Business)TechnologyInformation

DistributionDistribution

ChallengesChallengesWhich Information?Which Information?From which sources?From which sources?Collected by whom?Collected by whom?

ScreeningScreening


Screening criteria?Screening criteria?Adressees?Adressees?ITIT--Solution?Solution?SystemSystem responsibility?responsibility?EnterpriseEnterprise

StraumannStraumannPioneer Pioneer for for dentaldental implantimplant technologiestechnologies

StraumannStraumannPioneer Pioneer for for dentaldental implantimplant technologiestechnologies

FinancialFinancialPerformancePerformance 20082008 20072007

779779 714714SalesSalesMioMio CHFCHF


142142 177177

31%31% 32%32%

arn ngsarn ngsMioMio CHFCHF

ROEROEReturn onReturn on equityequity


40/82


41/82






Technology Intelligence @ Zeptosens

PatentsPatents

Partner firm IndustryBusinessDeveloper Ph.D.

Ph.D.Ph.D.

Weekly MeetingWeekly Meeting Agenda item 1 Technology Watch

...

Agenda item 1 Technology Watch

...

Weekly Meeting Agenda item 1 Technology Watch

...

ScientificScientific

ETH

Uni

CEO

Ph.D.

Ph.D.

Ph.D.

Ph.D.

Lab Lab

Assi

Ph.D.

Ph.D.

Opportunities/Threats? Problem in search of

Technology? Technology in search of

problem?


BusinessBusinessStrategyMeeting

BusinessBusinessStrategyMeeting

CEO

Ph.D.

Ph.D.

Ph.D. Ph.D.

Strategic technologyStrategic technology& business decisions& business decisions


42/82





PracticingOpen Innovation

PracticingOpen Innovation


Open Innovation: shared external competenciesOpen Innovation: shared external competencies

Closed or Open Innovation?Closed or Open Innovation?Closed or Open Innovation?Closed or Open Innovation?

NewNewMarketMarketNewNew

MarketMarketUniversityUniversityUniversityUniversity

Supplier Supplier Supplier Supplier

NonNonCompetitor Competitor

NonNonCompetitor Competitor

VCVCVCVC

PartnershipPartnershipPartnershipPartnership


MarketMarketClosed Innovation: internal competenciesClosed Innovation: internal competencies

StartStart--upupCompanyCompanyStartStart--upup

CompanyCompany

R & D

R & D

P r o

d u c

t i o n

P r o

d u c

t i o n CurrentCurrent

MarketMarketCurrentCurrentMarketMarket

CollaborationCollaborationCollaborationCollaboration


MajorityMajorityShareholder Shareholder MajorityMajorityShareholder Shareholder

ContractContractResearchResearchContractContractResearchResearch M

a r k e

t i n g

M a r k e

t i n g

F i n a n c e

F i n a n c e

INNOVATION PROCESSINNOVATION PROCESS


TechnologyTechnologyMarketMarket

TechnologyTechnologyMarketMarket


MarketMarket

UniversityUniversityUniversityUniversity

UniversityUniversityUniversityUniversity

Competitor Competitor Competitor Competitor


TechnologyTechnologyAmbassador Ambassador TechnologyTechnologyAmbassador Ambassador


43/82





Open InnovationOpen Innovation

Closed or Open Innovation ?Closed or Open Innovation ?Closed or Open Innovation ?Closed or Open Innovation ?

Closed InnovationClosed Innovation

ClosedClosed innovationinnovation trusttrust inin our our ownown competencescompetences convictionconviction toto bebe self self--sufficientsufficient protectionprotection fromfrom knowledgeknowledge draindrain

OpenOpen innovationinnovation experienceexperience thatthat outsideoutside our our companycompany

usefuluseful competenciescompetencies dodo existexist sharingsharing internalinternal andand externalexternal resourcesresources


practicepractice toto tightlytightly controlcontrol thethe ownowndestinydestiny reflectsreflects thethe capabilitycapability toto collaboratecollaborate inin

networksnetworks includingincluding interculturalintercultural competenciescompetencies

RadicalInnovations

RadicalInnovations



44/82





ET H D e pa r tme n t o f Te c h n o logy, Ma n a g e m e n t , a n d E con o m

2009 CEC June 4 Handouts (2)

Documents

Transcript of 2009 CEC June 4 Handouts (2)