|| MAS MTEC SS Managing the Technology-Driven Enterprise Group Delta | R. Celli, A. Leibbrandt, L. Schmid1 Basic Innovation Principles

|| MAS MTEC SS Managing the Technology-Driven Enterprise  Introduction  Acceptance of Innovations  Eight Innovation Principles Group Delta | R. Celli, A. Leibbrandt, L. Schmid2 Basic Innovation Principles Overview

|| MAS MTEC SS Managing the Technology-Driven Enterprise Group Delta | R. Celli, A. Leibbrandt, L. Schmid3 Basic Innovation Principles Introduction Aerial view of the ABB Campus in Turgi Roberto Lucas Alexis

|| MAS MTEC SS Managing the Technology-Driven Enterprise Group Delta | R. Celli, A. Leibbrandt, L. Schmid4 Basic Innovation Principles Introduction RobertoLucasAlexis

|| MAS MTEC SS Managing the Technology-Driven Enterprise  Innovations... ... require a positive attitude for them to be succesful ... are welcome on the shop floor – as long as they enhance existing capabilities and do not destroy jobs ... will face low acceptance if they completely change existing processess Group Delta | R. Celli, A. Leibbrandt, L. Schmid5 Basic Innovation Principles Acceptance of Innovations

|| MAS MTEC SS Managing the Technology-Driven Enterprise Group Delta | R. Celli, A. Leibbrandt, L. Schmid6 Basic Innovation Principles Eight Innovation Principles Innovation

|| MAS MTEC SS Managing the Technology-Driven Enterprise Group Delta | R. Celli, A. Leibbrandt, L. Schmid7 Basic Innovation Principles No Innovation Outside Strategy vs. Innovation

|| MAS MTEC SS Managing the Technology-Driven Enterprise Group Delta | R. Celli, A. Leibbrandt, L. Schmid8 Basic Innovation Principles No Innovation Outside Strategy Innovation

|| MAS MTEC SS Managing the Technology-Driven Enterprise Group Delta | R. Celli, A. Leibbrandt, L. Schmid9 Basic Innovation Principles No Innovation Outside Strategy Innovation

|| MAS MTEC SS Managing the Technology-Driven Enterprise  If innovation goes outside the company’s strategy, spin it off  Changing or adapting the strategy might demotivate people Group Delta | R. Celli, A. Leibbrandt, L. Schmid10 Basic Innovation Principles Spin off Innovation Innovation

|| MAS MTEC SS Managing the Technology-Driven Enterprise Basic Innovation Principles Spin off Innovation Group Delta | R. Celli, A. Leibbrandt, L. Schmid11 Innovation  In the last couple of years ABB did not spin off innovation  Other examples:

|| MAS MTEC SS Managing the Technology-Driven Enterprise  The Value proposition is the answer to the question «Why should the customer buy our product?»  As long as you answer this question, the innovation remains customer-driven.  You will have to find the competitive advantage Group Delta | R. Celli, A. Leibbrandt, L. Schmid12 Basic Innovation Principles Everyone should know the Value Proposition Innovation

|| MAS MTEC SS Managing the Technology-Driven Enterprise  Why should customers buy our traction converters?  long-term customer relationship  application know-how  service and maintenance  quality and reliability  cost-performance ratio  proximity Group Delta | R. Celli, A. Leibbrandt, L. Schmid13 Basic Innovation Principles Everyone should know the Value Proposition Innovation

|| MAS MTEC SS Managing the Technology-Driven Enterprise  Project Mgmt Plans ask to prioritize...  Product Functionality  R&D Time  R&D Cost ...out of which ultimately...  The full functionality is rarely achieved  Deadlines are never kept  Cost is typically overrun Group Delta | R. Celli, A. Leibbrandt, L. Schmid14 Basic Innovation Principles Open One Valve at the Start Innovation

|| MAS MTEC SS Managing the Technology-Driven Enterprise How we would like to work at ABB Turgi : How we actually work at ABB Turgi : Basic Innovation Principles Go for a Quick Start Innovation Project AProject BProject C Support for project A Under budget Project start Slow Project A Project B Project C ?

|| MAS MTEC SS Managing the Technology-Driven Enterprise Group Delta | R. Celli, A. Leibbrandt, L. Schmid16 Basic Innovation Principles Innovation Management = Project Management Innovation

|| MAS MTEC SS Managing the Technology-Driven Enterprise  Innovation is only useful if it makes money  Thus, you need a business plan from the beginning which…  shows a sound cash flow and  has a payback period that is accepted in the specific industry Group Delta | R. Celli, A. Leibbrandt, L. Schmid17 Basic Innovation Principles Innovation Management = Profit Management Innovation

|| MAS MTEC SS Managing the Technology-Driven Enterprise Group Delta18 Basic Innovation Principles Innovation Management = Profit Management Innovation  Target was to develop a new and highly innovative concept for traction converters  Get rid of inefficient, heavy and bulky 16.7Hz transformer by using power electronics and medium frequency transformer technology

|| MAS MTEC SS Managing the Technology-Driven Enterprise Group Delta | R. Celli, A. Leibbrandt, L. Schmid19 Basic Innovation Principles Innovation Management = Profit Management  Key benefits of new concept are…  significant lower energy consumption of the train  reduced weight and more space for passenger available  Project was finally stopped because of…  weak business case and weak market response  concept only interesting in 16.7Hz market in which ABB is already strong Innovation

|| MAS MTEC SS Managing the Technology-Driven Enterprise Group Delta | R. Celli, A. Leibbrandt, L. Schmid20 Basic Innovation Principles Innovation Management = People Management Innovation  Project owner  Personal support  Project Leader  Direct contact with customer  Knows what market segment to target  Project team  Diverse and cross-functional  Analytical thinking, Skills, Breadth, Empathy Pictures : linklink

|| MAS MTEC SS Managing the Technology-Driven Enterprise Group Delta | R. Celli, A. Leibbrandt, L. Schmid21 Q & A