RWTH Technology & Innovation Management Group

Innovation 4.0
@masscustom (Frank Piller)
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Source:
Wikipedia Media Commons (CC BY-SA)
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A typical tale of innovation
In the early 1950s, Ruth Handler observed her daughter Barbara
playing with dolls.
She realized that the girl was giving her dolls "adult roles" and
had the insight of a doll in form of an adult woman.
Her husband, an executive at the Mattel Toy company, however
discarded the idea.
During a vacation in Switzerland, in 1956, Ruth Handler saw a
figure sold by the German tabloid BILD as a toy for men, he "Bild
Lilli". Without any knowledge of the sexist context, Ruth
realized this doll as the perfect prototype of her earlier idea and
brought it back home.
Her husband realized the joy his daughter had with this toy, and
introduced it to his colleagues. A year later, the first Barbie doll
was launched to the market.
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The story of Barbie reminds us of some
key characteristics of innovation:
 Role of outsiders as the source of innovation
(innovative users play a central role)
 The need for being open and un-biased
 (Often) not the result of a strategic planning process
 A lot of resistance
 The power of working with prototypes
 So much coincidence & luck
Innovation Management: Making this a structured,
systematic, and repeatable process
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Our ideas about
managing innovation
have changed at lot
within the last century
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1.0
The Individual Inventor
2.0
The Corporate R&D Lab
3.0
The VC-financed Venture
4.0
The Open Orchestrator
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Quirky
Update10/31/12
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GE using Quirky:
A new idea to solve
one of the most
fundamental
challenges in an
established company
"I' am happy to give you innovative thinking. What are the guidelines?"
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Exploitation
Exploration
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Exploitation
Exploration
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Balancing two distinct
processes and activities
at the same time:
The Innovation
Challenge
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How we think about
something ... shapes
the way we manage it.
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How we think about
something ... shapes
the way we manage it.
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Industrie 4.0
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“Industrie 4.0”: The physical and the digital
world are merging
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“Idea of exponential growth — in
Moore‘s law
the computing power of machines,
in the amount of digital information
that is being created and in the
number of relatively cheap devices
that are continually talking to each
other.
When these numbers doubled every Power law
year or two in the early days of
the computer revolution, the
results, while impressive, were still
within our ability to imagine.
But now that the numbers are so
staggeringly large, [so] that
machines can finally do things
once considered possible only in
the realm of science fiction.”
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The 2nd half
of the
chessboard
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We are entering the age
of “second half technologies”
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Weak signals for “Second half technologies”
 Google self driving car
 IBM Watson
 Adaptive machines
 4.4 trillion photos taken since invention of that technology
(1838), 0.9 trillion of those in 2014
 Kodak hat 145,300 employees -> 132 years
Instagram: 15 employees -> 15 months -> $1billion
-> Facebook: 4600 employees
 TED talk of father filming his new born very minute of first four
months -> account of talking first time (“water”)
 6 Terrabyte data -> into great 2 min Ted Video
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Industrie 4.0:
Jobs of the customer
Business Model
Innovation
Experimentation
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What’s
next?
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Example Modularity: Phoneblocks.com
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And for some
“real” products?
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One startup
to watch
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A full electric vehicle for less than €6000 (well, €17600)
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3.5 years from idea to market launch –
for less than 1/10 of the conventional development cost
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The core success factor behind Street Scooter is RWTH‘s
capability to facilitate and manage large open value networks
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One grown-up
to watch
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Orchestrating
an innovation
value chain
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http://www.youtube.com/watch?v=zgsqwsfM2qU
youtube.com/watch?v=zgsqwsfM2qU
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How to utilize the
huge “cognitive
surplus” available
outside our
organizations
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A new innovation landscape is coming up
+ Open innovation in distributed infrastructures
with unbiased outsiders – beyond technology
scouting and acquisition
+ Orchestrating an eco-system
+ Industrie 4.0 demands a systematic business
model innovation process
+ Understanding the “jobs” of customers
+ Balancing exploration and exploitation:
the main innovation challenge
+ Stay open and be aware of your assumptions
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Fröhliches
innovieren
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TIME Research Area | Technology & Innovation Management Group (TIM)
About Us
RWTH-TIM's
new (shared) building in Kackertstraße 7, Aachen
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TIME Research Area | Technology & Innovation Management Group (TIM)
Willkommen an der Research Area TIME
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TIME Research Area | Technology & Innovation Management Group (TIM)
Die Research Area TIME
■ Gegründet 2012 als Zusammenschluss von
6 Lehrstühlen der RWTH Aachen School of
Business & Economics
■ Gemeinsames Forschungsziel: Verständnis
grundlegender betriebswirtschaftlicher
Aspekte der Konzeption, Entwicklung und
Vermarktung technologischer Innovationen
■ 6 Professoren, 8 Assistenzprofessoren, 70+
Doktoranden und viele studentische Forscher
■ Publikation der Forschungsergebnisse in
weltweit führenden Fachzeitschriften
■ Starker Fokus auf interdisziplinäre und
anwendungsorientierte Forschungsprojekte
■ Vielfältige Interaktionsformate mit der Praxis
■ Großes Engagement in der Executive Education
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TIME Research Area | Technology & Innovation Management Group (TIM)
RWTH-TIM: The RWTH Technology & Innovation Group is part of
the TIME Research Area at RWTH’s School of Business &
Economics
tim.rwth-aachen.de
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TIME Research Area | Technology & Innovation Management Group (TIM)
At RWTH TIM, we are dedicated to innovative research and
teaching, but grounded in the real world of management practice

Established in 1990 as one of the first dedicated chairs in technology & innovation
management in Europe

Part of RWTH's School of Business & Economics, with strong links to the RWTH
Engineering Schools, but also Information Systems, Psychology, …

Dedicated to research, but excellent in participant-centered learning on graduate
student and executive education level.

Ranked in top3 in school's ranking w/r to research output (publications), and #1
w/r to external funding. Awarded "RWTH Price for Teaching Excellence 2009/2010".

Interdisciplinary team of about 20 full time positions for researchers plus about
many support positions and student researchers

70% of annual research budget funded by competitive, peer-reviewed research
contracts and grants ("forschungsorient. Drittmittel") from DFG, EU, BMBF, BMWI,
AIF

Strong industry partnerships, strong believe in “engaged scholarship” with both rigor
and relevance for management practice (via direct, research-focused cooperation,
contract research, and the RWTH-TIM Expert Circle of Innovation Professionals)

Several spin-off and affiliated companies in both high-tech and professional services
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TIME Research Area | Technology & Innovation Management Group (TIM)
Our research focuses on innovation interfaces,
disruptive business model innovation, and internal structures,
processes, and believes for successful innovation

Customer Co-Creation: Integration of customers and users in innovation process. Focus on ideation
contests (Crowdsourcing), innovation communities, lead user method

Open Innovation: Approaches like tournament-based crowdsourcing or broadcast search to increase
the productivity of R&D by external search

Personalization and Mass Customization: Business models to profit from heterogeneities in the
customer domain by offering personalized products and services

Economics of Additive Manufacturing & Open Hardware: Creating economic value through 3DPrinting, Distributed Digital Manufacturing, Open Hardware, and open design infrastructures

Business Model Innovation and Disruptive Innovation: Structures, processes, and organizational
implementation of a process for corporate business model innovation

Technology & knowledge transfer : Absorptive capacity, managing ambidexterity, and preventing
“not invented here” (NIH)

Modeling the contingencies of the innovation process: Database of 300 methods for the
innovation process and matching tool to corporate challenges of managing innovation

Managing the R&D-production interface (ramp-up): Connecting the new product development
process with scaling up the manufacturing system
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TIME Research Area | Technology & Innovation Management Group (TIM)
Recent Awards and Recognitions for RWTH TIM
Alexandra Gatzweiler, Vera Blazevic and Frank Piller have been the
joint winners of the 2012 PDMA research competition and the DL
Wilemon Research Award for their work on deviant user behavior in
ideation contests. PDMA is the largest global association for product/
service development and management professionals.
RWTH TIM has been nominated as a
finalist for the „Innovating innovation“
challenge 2013 by Harvard Business
Review and McKinsey for our work on
open innovation readiness and internal
structures supporting crowdsourcing.
The ideation contest “Stilsicher:unterwegs”, a co-creation initiative targeting
senior citizens to develop better mobility solutions for seniors via a web-based
ideation contest, was the only winner in the “non-profit innovation” category of
the 2012 Co-Creation Awards. This ideation contest was part of our project
OpenISA, funded by the ESF within the NRW Ziel.2 program.
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TIME Research Area | Technology & Innovation Management Group (TIM)
Head of RWTH-TIM: Prof. Frank T. Piller
 Head of the RWTH Technology & Innovation Management
Group, and full professor of management at RWTH Aachen (2007)
 Academic Director of the RWTH Executive MBA, joint program
of RWTH Aachen & Fraunhofer Academy (2012-)
 Co-Founder and Co-Director of the MIT Smart Customization Group, MIT
Media Lab, Massachusetts Institute of Technology, Cambridge, MA (2007-)
 Research Fellowship at the MIT Sloan School of Management, Innovation
Management Group, Mass. Institute of Technology, Cambridge, MA (20042007)
 Assistant / Associate Professor in Management and Habilitation on
Customer Co-Creation at TUM Business School, Munich (1999-2004)
 Ph.D. in Operations Management with focus on Mass Customization,
University of Wuerzburg (1995-1999)
 Co-Founder, Investor, or Member of Board of Directors of several
companies, including Competivation (innovation consultancy) ThinkConsult
(process management and concept testing), MVM.com (personalization and
virtual models), Hyve AG (customer co-creation), Dialego AG (innovative
online market research), Corpus-e AG (low-cost high-quality body scanning
devices), DOOB AG (3D printing)
 Real life achievements: Only German professor in “Top50 Profs on Twitter
List& 2013
&Management
2014”; Kloutscore
>60; Google Scholar Citations >7200
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Innovation
Group – time.rwth-aachen.de/tim
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TIME Research Area | Technology & Innovation Management Group (TIM)
RWTH Zertifikatskurs für
Führungskräfte:
Business Model Innovation
5 Tage in zwei Teilen, plus
unternehmensbezogene
Projektarbeit
Dieser Kurs ist auch als individueller
Inhouse-Kurs zu flexiblen Terminen
möglich!
Zertifikatskurs „Business Modell Innovation“
Nächster Durchgang in 2 Teilen: Okt und Nov. 2015
bmi.rwth-aachen.de
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TIME Research Area | Technology & Innovation Management Group (TIM)
Ein internationaler berufsbegleitender Studiengang an der RWTH Aachen und
Univ. St. Gallen mit Fokus auf Innovation, Technologie und Leadership
Start des 12. Durchgangs im Sept. 2015 | Studienleitung: Prof. Dr. Frank T. Piller
emba.rwth-aachen.de
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TIME Research Area | Technology & Innovation Management Group (TIM)
Unsere Plattform zur langfristigen
Zusammenarbeit:
Das Invention Center an der RWTH Aachen
http://www.kex-ag.com/invention-center
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TIME Research Area | Technology & Innovation Management Group (TIM)
Kontakt und Einladung zum weiteren Dialog
Frank T. Piller, Prof. Dr.
Head, RWTH Technology & Innovation Management Group
School of Business & Economics.
RWTH Aachen University
Research Area Technology, Innovation, Marketing & Entrepreneurship
Kackertstrasse 7 | 52072 Aachen | Germany
[email protected]
@masscustom (Skype, Twitter, Facebook)
time.rwth-aachen.de/tim | open-innovation.com
Assistenz: Monika Heer,
+49 (0)241 809-3577 | [email protected]
Business Development und Unternehmenskooperationen:
Christian Gülpen
+49 (0)241 809-3577 | [email protected]
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