Innovation Box: Think inside the box Egmont International has made innovation systematic. A special “Innovation Box” on Insight is the key to the system. Niels Almer / Corporate Communications / nal@egmont.com/ Photo: Steen Brogaard and others
Egmont International, which covers Egmont’s com panies outside the Nordic region, is a leading Euro pean publisher of books and magazines for children and young people. The division is financially fit, generating annual revenue of approximately EUR 300 million, or about 20% of Egmont’s total revenue. However, Executive Vice President Frank Knau explains that the division has set its sights high, aiming to generate revenue of EUR 500 million in 2010. Attaining this goal will take more than geographic expansion and acquisitions alone – innovation will also be needed. In Frank Knau’s view, successful innovation comprises multiple elements. First, an innovation structure needs to be in place. This structure can only be created with the support of the division’s top management. By the same token, innovation is a cornerstone of Egmont International’s business strategy. However, structure alone is not enough. A successful innovation process depends on having employees who can contribute ideas as well as the resources to support and follow up on these good ideas.
A suggestion box A page on Insight makes the innovation concept tangible for all Egmont International employees. This is where they can upload their ideas for products or processes, and the page has space for all sorts of input. Called an “Innovation Box”, the page was launched last October. An “Idea Manager” has been appointed in each country to help employees develop ideas. At last count, the box contained almost 200 ideas.
Executive Vice President Frank Knau believes management back-up is crucial to the innovation process.
HARDCOPY
Frank Knau explains that once an idea has been developed and assessed to have value-creating po tential for consumers, the next step in the process is the evaluation phase, where the idea is presented to an innovation board. During this phase, the innovation board provides feedback: Should a business plan based on the idea be developed? Is more research needed? Can the idea be used locally? To date, at least 20 ideas have reached the evaluation phase.
Great ideas are rewarded To support the innovation process, Egmont Inter national has an incentive system that encourages would-be contributors to pass on their ideas. An idea is easier said than done so ideas that become a real ity are up for a cash reward. The division is also planning “The Egmont International Awards” for winners in five categories: best company of the year, best idea of the year, best innovator of the year, best communicator of the year and best employee of the year. As Frank Knau explains, the award is intended as a mark of recogni tion of both good results and hard work. The innovation box has existed for almost six months and enjoyed resounding success at Egmont International. The future challenges for the innovation process are primarily how to stimulate and strengthen consumer and customer focus and how to bring external partners into the innovation process. Innovation is not only about how to get new ideas, but also about how to take different action in developing existing processes. From this perspec tive, it becomes clear that countless initiatives can be added to the innovation process to maintain momentum. Frank Knau concludes by citing Costas Markides, an external speaker at the recent manage ment conference in Vilnius: “Innovation is not ideas, innovation is making ideas happen!” And Egmont International has a clear focus: Implement some of the ideas generated by the innovation process as fast as possible.
APRIL 2008