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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
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Innovation Enables to Survive
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Innovation needs framework and direction
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1902
“Airplanes
p
are interesting
g toys
y
but of no military value”
Marechal Ferdinand Foch, Professor of
Strategy,
Ecole Superieure de Guerre
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2004
2012
“There is no doubt, this is
our century!”
CEO 2006
CEO,
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Levels of Value Creation
Society
Ecosystem
Organization
User
Source: Elke den Ouden, Innovation Design, Springer 2012
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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”
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
Why do we need innovation and who needs innovation?

How we do innovation as a company

How you can be part of innovation@swarovski
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COMPANY HISTORY
Foundation 1895 in Wattens by Daniel Swarovski I., Tyrol Austria
5th generation family business
© Copyright Swarovski AG, 2013
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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
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© 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
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•
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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
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Good ideas have always been related to
employee’s creativity and the transformation to
the fashion industry
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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
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iflash IDEA MANAGEMENT
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Values
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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
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Source: The McKinsey Quarterly, Volume 1/2008 „Leadership and Innovation“
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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)
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HOW INVENTION CAN BE BUILT INTO STAGE-GATE®
© Robert G. Cooper
Stage-Gate® is a registered trademark of the Product Development
Institute Inc.
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© 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”
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
Why do we need innovation and who?

How we do innovation as a company

How you can be part of innovation@swarovski
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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
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SEGMENT PLATFORMS
INDUSTRY OVERVIEW
Jewelry
Textile
Accessories
Interior
New Segments
DIY
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SAMSUNG GALAXY SII made with SWAROVSKI ELEMENTS
Design ‚Tender Blossom‘
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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.
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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
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