6/24/2013 HOW TO MAKE OUT THE VERY BEST USE OF YOUR O OU EMPLOYEES O S CREATIVITY C XXIV. ISPIM CONFERENCE., HELSINKI HANNES ERLER DIRECTOR OPEN INNOVATION NETWORKS JUNE 18TH Why do we need innovation and who needs innovation? How we do innovation as a company How you can be part of innovation@swarovski 2 1 6/24/2013 Innovation Enables to Survive 3 © Copyright Swarovski AG, 2013 Innovation needs framework and direction 4 © Copyright Swarovski AG, 2013 2 6/24/2013 1902 “Airplanes p are interesting g toys y but of no military value” Marechal Ferdinand Foch, Professor of Strategy, Ecole Superieure de Guerre 5 © Copyright Swarovski AG, 2013 2004 2012 “There is no doubt, this is our century!” CEO 2006 CEO, 3 6/24/2013 Levels of Value Creation Society Ecosystem Organization User Source: Elke den Ouden, Innovation Design, Springer 2012 7 © Copyright Swarovski AG, 2013 Major Challenges – New Opportunities Develop and train „Change Management Skills“ Innovation always has to do with feelings of Unsecurity and Ambiguity We live in world of “Multioptional Value-confusion” Revolution of Creative Economy and Knowledge Don’t underestimate the Role of Middle-management in Organizations Innovation is a process of “Social Sharing of Knowledge” Place Cultural Factors and Values in the foreground Use Social Media for for joint idea p development Encourage flat communication, networks and open mindset; Combine with hierarchical necessities Web 2.0 Technologies “Wisdom of the crowd” 8 © Copyright Swarovski AG, 2013 4 6/24/2013 Why do we need innovation and who needs innovation? How we do innovation as a company How you can be part of innovation@swarovski 9 COMPANY HISTORY Foundation 1895 in Wattens by Daniel Swarovski I., Tyrol Austria 5th generation family business © Copyright Swarovski AG, 2013 5 6/24/2013 SWAROVSKI GROUP Facts & Figures Areas of Business Cut Crystal Elements Swarovski Elements Crystal Objects, Jewelry & Accessories Swarovski Precision Optical Equipment Swarovski Optik Bonded Grinding & Dressing Tools Tyrolit Precision Cut Synthetic Gemstones Swarovski Gems Road Safety Products Swareflex Headquarters: Wattens, AUSTRIA Group Turnover: € 2.9 billion Group Employees: 31.460 Global distribution: 42 countries > 120 countries (retail) the INNOVISIONARY 12 © Copyright Swarovski AG, 2013 6 6/24/2013 13 © Copyright Swarovski AG, 2012 IMPORTANT ELEMENTS TO LEVERAGE INNOVATION Committed People Strategy • Communicated Innovation Strategy gy • Intrinsic Motivators • Aligned Search Fields • Participation and Transparency • Targeted Innovation Portfolio • Active Support of creative development CULTURE MYTHS VALUES Processes & Tools Organization • Research & Innovation on Executive Level • Overall Innovation Portfolio Boards • Idea Management / Targeted Streams • Cross-functional teams and networks • Stage Gate for Operative Realization • Clear Defined Functions © Copyright Swarovski AG, 2013 • 14 7 6/24/2013 IDEA + INNOVATION = INVENTION + *) DIFFUSION Manish Arora – “Love story of the Heart” Any marketable development leading to a new product, service, process, technology or new business area *) The succes of innovation belongs to all involved players and stakeholders © Copyright Swarovski AG, 2013 15 Good ideas have always been related to employee’s creativity and the transformation to the fashion industry 16 © Copyright Swarovski AG,, 2013 8 6/24/2013 iflash IDEA MANAGEMENT Employee Employee Idea Discussion Employee Idea Evaluation Idea Expert Expert …offers all Swarovski employees the possibility to make their contributions to promising innovations i ti Employees can bring in own ideas, comment and discuss the ideas of others or submit recommendations Ideas will be forwarded to experts via iflash Copyright Swarovski AG, 2013 17 iflash IDEA MANAGEMENT 18 © Copyright Swarovski AG, 2013 9 6/24/2013 Values 19 © Copyright Swarovski AG, 2013 Networks INNOnetwork McKinsey Research on Innovation 2010: INNOnetwork Management • 65% of senior executives not confident about the decisions they make in this area • 94% say that people and corporate culture are the most important drivers • Executives can make better use of existing talent for innovation , without implementing disruptive change programs, by creating conditions that allow dynamic innovation networks to emerge and flourish • Foster innovation culture based on trust among employees (Ideas are valued, people trust that it is safe to express them & oversee risk collectivly with their managers) J. Barsh, M.M. Capozzi, J. Davidson; McKinsey Quarterly 2010: Innovation and Leadership 20 © Copyright Swarovski AG, 2013 10 6/24/2013 Source: The McKinsey Quarterly, Volume 1/2008 „Leadership and Innovation“ 21 Value e for organization The Evolution of Innovation Innovation Excellence cultural islands lonely heroes guerilla groups Evolution phase lonely heroes Isolated employees Without resources Without internal willingness to coop Missing clear goals cultural islands (eg. i-LAB) guerilla groups First intercompany networking (ad-hoc) Unstructured Opportunistic First subareas (islands) are visible Partially structured Limited outcome Integrated g innovation architecture & leadership (R&I) Company-wide Portfolio Innovation Strategy Structured and targeted Resource-backed Substantial outcome Based on: „Competitive-Intelligence-Evolutionsphasen in der Praxis“ (Thorsten Bill, Rainer Michaeli / HMD, Februar 2006) © Copyright Swarovski AG, 2013 11 6/24/2013 HOW INVENTION CAN BE BUILT INTO STAGE-GATE® © Robert G. Cooper Stage-Gate® is a registered trademark of the Product Development Institute Inc. 23 © Copyright Swarovski AG, 2013 3 Success factors for Hierarchical- Project and Networkdriven Companies. If we look into our companies we experience „Sub Rationalities“ on a day to day basis. Together with our value systems they are building g the basis for a “Culture of Openness, Trust and Accountability“ - and consequently for the Ability to Innovate. Impact of Lack: Short sighted decisions may result in misguided investments and sunk profit. Impact of Lack: Conflict escalation, segregation, exclusion Principle of Individualization H Human IIntimacy ti Impact of Lack: Financial crises, loss of motivation and loyalty SM: Trust Principle of Professionalism Principle of Standardization Science, Knowledge Economical Success SM: Learning, Insights SM: Money Challenge for Management: “We have to provide free space for evolvement of our employees talents and creativity” 24 © Copyright Swarovski AG, 2013 12 6/24/2013 Why do we need innovation and who? How we do innovation as a company How you can be part of innovation@swarovski 25 PARTNER ALONG THE VALUE CHAIN DIFFERENTIATING & CREATING VALUE DESIGN MANUFACTURING SOURCING PRODUCT & DESIGN COMPETENCE RETAIL CO-BRANDING ADV. & PR CONSUMER APPLICATION SOLUTIONS RECOMMENDED PROTOTYPING APPLICATION PARTNER CREATIVE SUPPORT APPLICATION INNOVATION APPLICATION SUPPORT 26 26 © Copyright Swarovski AG, 2013 13 6/24/2013 SEGMENT PLATFORMS INDUSTRY OVERVIEW Jewelry Textile Accessories Interior New Segments DIY 27 © Copyright Swarovski AG, 2013 SAMSUNG GALAXY SII made with SWAROVSKI ELEMENTS Design ‚Tender Blossom‘ © Copyright Swarovski AG, 2013 14 6/24/2013 CRYSTAL EMBELLISHED CARD Made with SWAROVSKI ELEMENTS © Copyright Swarovski AG, 2013 Cooperation with Industry Leaders YKK, a leader in the world of zippers, and Swarovski Elements, the product brand of Swarovski have worked in partnership to bring the high fashion industry a unique vision. The zipper can now be perceived as a piece of Jewelry. With multiple applications possible, crystal zippers are revolutionizing g the world of fastening, g, bringing g g new opportunities for designing apparel pieces, shoes and accessories. 30 © Copyright Swarovski AG, 2013 15 6/24/2013 We add W dd sparkle kl to people’s everyday lives. Publikationen: 2008 Erler, H.; Rieger, M.; Füller, J. (2009): Ideenmanagement und Innovation mit Social Networks – Die S Swarovski ki ii-flash fl h C Community it In: I Kommunikation K ik ti als l E Erfolgsfaktor f l f kt iim IInnovationmanagement ti t - Strategien St t i im i Zeitalter der Open Innovation. Hrsg.: Zerfaß, A.; Möslein, K. Gabler, Wiesbaden 2009, S. 159-176. 2010 Erler, H.; Wilhelmer, D. (2010): Ein neues Paradigma - Mit Netzwerken Innovationsprozesse steuern, in: Serhan Ili (Hrsg.): Open Innovation umsetzen – Prozesse, Methoden, Systeme, Kultur. Düsseldorf, Verlag Symposion, p. 225 – 270. Link dazu: http://www.symposion.de/default?cmslesen/q0002750_34740101 2010 Innovation Network: „An Integrated Organizational Setup for Management Learning” Publikation und Vortrag im Rahmen der Konferenz “MOT – Management and Organizational Learning” in Wien [email protected] © Copyright Swarovski AG, 2012 16
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