Innovation Monitor 09/10 by The Bridge

INNOVATION MONITOR 09/10

growing and weeding with innovation Colophon: The Innovation Monitor 09/10 is an initiative of The Bridge business innovators, member of Twynstra Gudde. Editors Matthijs Hielkema, Annemarie van Hoogstraten Analyses Mark Jaspers Project coördination Annette Frijns English translation Betti Rockwell Design Rob Gruyters Printer Cadform Publisher The Bridge business innovators © 2009 The Bridge business innovators. Nothing from this publication may be reproduced or published without the publisher’s prior written permission.

Preface

The Bridge business innovators help organizations innovate. Even in these economically challenging times. To achieve this, a combination of creativity and business sense is essential. In light of the current economic situation we have chosen as the theme of our Innovation Monitor 09/10 ‘Growing and weeding with innovation’. We see how many companies have to cut costs and make changes in the way they do business, while at the same time keeping an eye on the future needs in their marketplaces. As in nature, growing and weeding go hand in hand, also for the innovation professional.

The themes of the past two editions of the Innovation Monitor were ‘Better choices, better innovation’ (07/08) and ‘Return on innovation’ (08/09). The relevance of these themes, as well as the lessons learned from innovation leaders have grown in the current economic climate. The results of this year’s Monitor confirm this. This year, more than in past editions, we combine the results of our survey with our experiences with clients. Objective research results, opinions and experiences of our consultants and interviews with our clients are blended together in this publication. The intention being to do what we do in daily life: to inspire and challenge you.

We too innovate our services: in addition to helping with innovation and growth strategies, we increasingly offer real support for the realization of innovation in the form of interim Innovation Executives. Another ‘innovation’ is the form in which we present this ninth edition of the Innovation Monitor: a cross medial publication. The printed edition that you are now reading, contains the most important insights and conclusions. On the website www.innovatiemonitor.com you can find additional results and a discussion forum. We particularly direct your attention to the comprehensive sector analyses, where you can find the most recent trends and developments in your own sector.

We invite you to take advantage of the results of this Monitor. Compare your own approach to innovation with that of others and discover how you can improve the design and management of your innovation efforts.

The consultants and colleges who produced this Innovation Monitor can be proud of the results. We owe a special thank you to those we interviewed. We expect that you as a reader will find inspiration in this work, to which you perhaps have also contributed by taking part in our survey. We heartily thank all participants!

Frans Pigeaud

managing director

chart

Research method

In the spring of 2009 a total of 575 participants from various sectors of the Dutch business community responded to our internet questionnaire. After checking the respondents for certain criteria – such as company size and function of the respondent – 386 respondents were included in the analysis. All sectors of Dutch business are represented in this Innovation Monitor: from employment agencies to construction firms and from

Innovator fund

media to high tech organizations. In the back of this Monitor you can find a list of all sectors.

150

Leaders and laggards As in previous years we make a distinction between innovation leaders and laggards. In the survey we define innovation leaders as: + companies that derive more than 5% of their turnover from products and/or services which have been introduced within the last three years;

130

+ and companies that derive more than 5% of their turnover from new (in comparison to three years ago) customer groups and/or market segments; + and companies that regard themselves as more successful innovators than their competitors.

110

The leaders comprise 30% of the respondents and are evenly spread out over the surveyed sectors. Laggards, 21% of the respondents, have

between’ group.

Innovator fund In earlier editions of the Innovation Monitor we asked participants which Dutch organization they considered to be the most innovative. Based 70

on the ten most innovative companies listed in the AEX-index, we created a fictive ‘The Bridge innovator fund’. We have followed this fund since its foundation in January 2007. This year we again see that even in economically trying times, the exchange rewards innovation. 59

01-2007

01-2008

01-2009

09-2009

The Bridge innovator fund index AEX index

index

lower scores on all three of the above mentioned dimensions. To accentuate the difference between the two, we have omitted the other ‘in

contents

interview with Achmea interview with Van Gansewinkel

survey results interview with Visser & Smit Hanab

the vision of The Bridge survey results interview with SCA Hygiene Products

62 the bridge

interview with Spil Games

survey results

the vision of The Bridge

trends

survey results

the vision of The Bridge

35 Weeding to create value

go to www.innovatiemonitor.com for the digital version and extra insights 7

survey results

the vision of The Bridge

for innovation

25 Creativity in times of crisis

the vision of The Bridge

17 need for speed

5 Research method

Preface

Innovation thermometer

pagina

weeding sectors

by innovation

‘Soft’ criteria for ‘hard’ success

growing and

innovation thermometer

“Ambidexterity is a must: simultaneous cost reduction and increased customer value”

Innovation remains important

Hans Bakker, managing director The Bridge

the vision of The Bridge “On closer examination there appears to be nothing new in these troubled times. Throughout the years, sectors and businesses have disappeared and new ones have taken their place. The extent to which this is now happening and the impact it has, is however what makes the difference now. Experience has taught us that the partiality for looking at costs does not make for a successful strategy on the long term. The appeal of cost cutting, however, is its suggestion of rational, blue-print controllability. Innovation on the other hand, is in many companies equated with creativity, difficult to control budgets and unpredictability of success.”

Challengers appear on the market place Research has shown that periods of crisis are crucial times in which organizations can improve or lose their competitive advantage. Seemingly impregnable market leaders are left behind when challengers with new business models appear on the scene. Google’s cash cow AdWords, which combines search with advertising, was introduced during the recession of 2003. And the current crisis seems to be working as a catalyst for market acceptance of electric cars. All car brands are developing an electric model.

A balanced approach Businesses that focus solely on cost-cutting will not be able to utilize new opportunities. The winners will be those who can combine costcutting and innovation. Thought and action within a coherent business model make the combination possible: efficiency for processes and cost-cutting and at the same time focus on customer value. Weeding out certain ‘standard’ aspects of customer value can contribute to cost reduction. When part of the ‘saving’ is spent on innovative customer value activities, then growth and cost-cutting become part of a vision.

Professionalism in innovation For several years now we witness a trend of increasing professionalism in innovation. Professional innovation consists of many aspects such as education, experience, organization, tools, attitude and behavior. A professional approach to innovation strengthens the capability to make a success of new business opportunities. Especially in times of crisis, a professional innovation climate can increase the competitive advantage of

organizations.

chart

INNOVATION THERMOMETER

The innovation thermometer: the innovation climate is diminishing Each year we do research into the most important strategic priorities of the Dutch business community. This year the impact of the crisis on the innovation climate is clearly visible, regardless of efforts to become more ambidextrous. Some results:

How do companies want to innovate and how do they actually innovate?

Development of strategic priorities

percent

Strategic priority number 1 remains innovation for growth. This year however it is a shared number 1 position: shared with the priority to reduce costs through process innovations. On the whole, the emphasis on cost reduction is increasing. In addition to an increased focus on process inno-

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2009

vations, also see more emphasis on restructuring and ‘smarter’ purchasing. Nevertheless, increase in turnover remains high on the management stimulating innovation

rest

‘smarter’ purchasing

% in 2009

restructuring

Maintaining turnover is an important goal

17 42

43 process innovation

% in 2008

autonomous growth existing markets

The current economic climate necessitates modifications in growth ambitions. Last year 80% of our respondents indicated increased turnover as a growth ambition. This year the participants are more differentiated in their response: only 43% have increase in turnover as goal this year, while 22% – three times more than last year – strive to maintain turnover in 2009. Sixteen percent (16%) indicate an ambition to limit the reduc-

product innovation

agenda. Fostering innovation and autonomous growth in existing and new markets are the second and third most important strategic priorities.

A shift in strategic focus: innovations that reduce costs are just as important as innovations that increase turnover.

autonomous growth new markets

acquisitions

tion in turnover.

The necessity and priority for innovation remain high but are decreasing

2008

stimulating innovation

rest ‘smarter’ purchasing 8 7

48 81

However, further exploitation of existing business opportunities in addition to the focus on cost-cutting have led to a decrease in priority for

52 product innovation

innovation. This trend can also be seen in the expected cuts in innovation budgets. 16% of our respondents – four times more than last year – 47

14 19

autonomous growth existing markets

acquisitions

ambition incremental

reality incremental

ambition radical

autonomous growth new markets

100

reality radical

Increased focus on improving existing products and services There is also a clear shift in innovation ambition. Corporations are increasingly choosing to improve their existing products and to boost their portfolio of products and services. This year 66% of the businesses represented in our survey opt for a step-by-step approach to innovate: last

lower costs through ...

more turnover through ...

year that was 57%. At the same time, the ambition for radical innovation has continued to wane: this year only 31% of our respondents still have that ambition.

expect to spend less on innovation. On the other hand, 39% expects to spend more on innovation this year.

% in 2007

process innovation

Last year we witnessed a slight reduction in the perceived need and priority for innovation. This reduction continues in 2009. Even so, approximately 70% of our respondents still indicates a significant need for innovation and considers innovation to be a high or even ‘top’ priority.

restructuring

growing by innovation

Need for speed the vision of The Bridge

“The need to make tempo and maintain tempo in innovation projects is extra important in these times, when unpredictability in daily business makes many demands on our time. The factor time runs like a thread through the whole innovation process. De influence of time-to-concept, time-to-market and time-to-profit, the interrelationship with the factor finance (the project investment) and the resulting impact on cash flows, reveals itself clearly in the cash curve. This makes apparent why time the most important management criterion is for innovation projects. The world of online services illustrates this as well.”

Make the most of investments by using the cash curve The cash curve had a prominent place in the Innovation Monitor 2008-2009. The cash curve shows us that a quick market introduction has an immense positive impact on expected cash flow. Time is more important than money and quality, the two other criteria in project management. Naturally the quality level should be as good as is required. But pumping extra money into a project in order to prevent delays, almost always pays off. The example given here below confirms this. All projects have the same time-to-profit. Projects 1 and 2 have the same investment, project 3 has a higher investment. The future cash flows speak for themselves. And here we have not even included effects such as ‘more cash as a result of getting on the market before the competitors’.

Make use of lessons from the beta economy Increasing numbers of products are becoming ‘smart’. Equipped with electronics it is possible to make connections with networks for (for example) software updates. It is also possible to crosslink products and services, as do TomTom, Apple and Nokia. The increasing importance of online components as part of the value proposition makes it interesting to observe how innovation happens in the online world. The importance of a fast market introduction of new products and services is recognized and pursued. New Google and Facebook applications and features are hardly ever fully developed or glossy. As soon as the quality of the innovation is good enough it’s put online. This way of working

Frans Pigeaud, managing director The Bridge

ensures fast feedback from a large group of users. By trying out many things, one discovers quicker what customers value and what not. Success can be achieved faster. An experiment however doesn’t always lead to success. With this way of working one allows oneself to make mistakes. But then, isn’t the goal of an experiment to learn from it?

“Tempo and timing are crucial for innovation success”

chart Cash curves 167

165 cash flow

136 80

project 1 project 2 project 3

cumulative cash

-20

-40

-60

Explanation Bringing a new product to the market as quickly as possible pays off. Extra investment to facilitate speed often gets rewarded. The example above reveals the effect on the financial value of a new product when introduced earlier in the market. The three example projects above are identical, except for the fact that project 3 received an extra investment to facilitate earlier market entry. The net cash

value of this project is the highest, despite higher costs from the extra investment.

chart

growing by innovation NEED FOR SPEED The results of our survey this year show that innovation leaders take the time factor far more seriously than the laggards. From the innovation leaders we learn the following:

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How do companies see the factor ‘time’?

Introduce as quickly as possible

percentage of respondents in ‘agreement’

Identifying opportunities in the market and acting upon them is key for all innovation. The speed, with which action is taken, from initiative of an experiment or project through to the market introduction, is an essential success factor. Leaders are deeply convinced of the importance of a short time-to-market. Fifty percent of the leaders introduce their innovations quicker in the market than their competitors. Only 7% of the 81

Our company brings innovations quicker to the market place than our competitors

laggards can say the same.

Work together with partners to make speed With the intention to speed up innovation processes, 80% of the innovation leaders seek collaboration with other partners. Only 45% of the

Our company works with partners to be able to innovate faster

laggards do the same.

Don’t hesitate to take action when delays occur It is impossible to not make mistakes when innovating. What is crucial is how an organization deals with set backs and changing conditions

Our company takes action quickly when innovation projects threaten to slow down

during the development process. Convinced of the importance of a fast market introduction, leaders are quicker to take measures when delays 13

threaten: 54% of the leaders does this, as opposed to 13% of the laggards. 50

Our company introduces several innovations rapidly rather than spend the whole budget on one or two fully developed products

Be realistic about the chances of success and don’t put all your hope (or money) in only one project Disappointments not only happen during the development process: the actual market launch can also fail to meet expectations. Market circum-

stances may have changed or there could be other reasons why the new product or service fails to perform as desired and expected. Innovation leaders take failure into account: 46% indicate that they introduce several innovations at a fast pace rather than spending the entire budget on

Our company demands that quick wins must also contribute to long term goals

one or two products. For the laggards this percentage is much smaller: 26%.

Leaders pick ‘low hanging fruit’ with long term relevance 0

100

Quick wins to ‘score’ in the short run are seductive. The question is, will cashing in on the ‘quick win’ also deliver the desired effects in the long run. Leaders have a distinctive approach: 59% sets the condition that quick wins must not only pay off in the short run, but must also contribute

innovation laggards

to longer term goals. Of the laggards only 27% chooses for this type of approach. 21

innovation leaders

Spil Games

growing by innovation NEED FOR SPEED

interview

The Hilversum based Spil Games, known for – among other things – their site www.spelletjes.nl, is a provider of casual games. Casual games are simple to play online games, intended for a large audience. With more than 50 portals in twenty languages, Spil provides online games for the target groups family, teenagers, ‘tweens’

development process would be slower. We cover this risk by keeping

that we get to work. Some companies give prizes to employees

a share of the development process in our own company.”

who come up with new initiatives and ideas: at Spil we expect this from all our employees. It’s the norm.”

and young girls. Each portal is completely fitted to the local (geographic) market with domain names, suitable game content and of course in the native language. With 100 million unique visitors each month, Spil Games is the largest

How have you organized your innovation process?

provider of casual games in the world, larger than MSN and Yahoo Games.

Floris Jan Cuypers: “If you place Spil on a spectrum with on one end

What growth challenges do you face in the coming years?

a strongly structured stage gate process and on the other end man-

Sidney Mock: “One of the challenges is to be able to manage the

aging on the basis of gut feeling, Spil is somewhere in the middle.

growth of our organization. We’ve grown from 0 to 100 million

We talked to Floris Jan Cuypers, senior business development manager

Spil Games has grown in eight years time into a business

Our strong point is that we use criteria to make decisions on develop-

unique users per month in the past couple of years. This rapid

and Sidney Mock, chief commercial officer.

with more than 50 portals throughout the world. What is

ment. An important criterion is that a new initiative has to fit in with

growth of the organization requires a lot of our attention. Another

the role of the factor speed in this growth?

our strategy, competences, assets and target groups.”

growth challenge is being able to keep up with the tempo of inno-

Spil’s ‘repeatable formula’ has enabled it to grow fast. By customiz-

this year. What is the key to Spil Games’ success?

ing existing portals for new markets, it is possible to upscale rapidly.

“Spil Games sets itself apart from its competitors in a number of

Sidney Mock: “The whole branch is fast when it comes to product

ways,” says Sidney Mock. “In general this can be summed up in

development and time-to-market. Speed is necessary as competitors

Sidney Mock: ”We also make estimates of the number of users and of

vation among markets, users and competitors. We can learn a lot

three success factors. In the first place, we are the only party serving

can easily copy success.” Floris Jan Cuypers: “Our method of develop-

repeat visits to the site. It is important that the number of repeat visits

from community and social media sites.” Floris Jan Cuypers: “We also

numerous target groups through various channels. For each of our

ment is characterized by experimenting and testing on a trial and

increases rapidly. We think primarily in terms of exponential curves,

want to capitalize more on our extensive user base. We would like

four client segments, we have separate portals. In the second place,

error basis. Fast launches, even when a product is not entirely ready,

rather than linear curves. And if a portal does not deliver the results

to add new business models for earning to the two we now have:

we adapt our sites to ‘local’ markets. Domain names, game content

then see if it works and afterwards improve. In this process we use one

we expect, we don’t hesitate to break off the development process.”

advertising and partner programs.”

and language are customized for the local market. In the third place

country as ‘test market’. In this way we get a substantial amount of

we have an attractive and easy to access supply. There’s hardly

feedback directly from our users. If it’s a success, it gets introduced in

What can you tell us about the people and the culture

any barrier to play: you can play straight away, without logging in.

other geographic markets. It’s simply too expensive too do extensive

at Spil?

The supply of games on the sites is both broad and deep. And the

research first. Trial and error is quicker and cheaper.” Sidney Mock adds:

Floris Jan Cuypers: “The people who work here want to know what

games are of good quality. Finally, there is new supply practically

“Our own development studios are also important for our capacity

motivates consumers and what’s happening in the games market. An

every day, which is important for repeat visits by our users.”

to make speed. They ensure a continuous supply of new content. If

entrepreneurial stance is very important. We’re not going to analyze

we were 100% dependent on outside developers and publishers, the

the life out of new ideas. Sure, we make some predictions, but after

“Launch quickly, even if it’s not completely finished, see if it works and then improve.”

Spil Games became number 1 worldwide in casual games

Creativity in times of crisis the vision of The Bridge

“Surviving in times of crisis requires that businesses be creative. Not the exotic creativity of the extremely different, but creativity of a new kind: looking at the existing business and market with ‘new eyes’ and creatively exploring the boundaries of your own business. Another possibility is to innovate your business model instead of your product. New partners and markets can often be a source of inspiration.”

Explore the boundaries of your playing field The search for new business usually starts with policy guidelines. The boundaries of your own business domain define the available space for new business. But if we are creative at defining the domain boundaries, we can discover surprising new opportunities for business. BIC, known for their ballpoints, gives us a good illustration. Within the business defined as ‘writing materials’, expansion with pencils, erasers, glue and magic markers, was logical. However, when BIC redefined their business as ‘disposable articles’, a whole new category of products became thinkable. There was also a market for disposable razorblades and lighters. BIC now sells more that 10 million razorblades per day worldwide.

Look at and learn from other markets What can a construction firm learn from Ryanair’s business model? What can a financial services firm learn from a publisher? Looking at and learning from other markets can be a huge source of surprise and inspiration for new innovations. Not only for new products but also to learn and understand how other firms earn money.

Jeroen de Kempenaer, senior consultant The Bridge

Try on other profit models Taking a different approach can inspire you to market your products in a different way. Taking a good close look at your own profit model can lead to the creation of new value propositions. Ask yourself questions like: can we earn more by postponing the moment of use? Or: can we earn more by using a different method of payment? An interesting case in point is Hilti, a producer of powered tools such as bores, saws and measuring-instruments. Hilti offers its customers a lease contract (’Tool Fleet Management’) for a complete toolbox at a set monthly fee. All the tools get repaired or replaced at the end of the month. The consumer never has to worry about maintenance or expensive purchases.

“Crisis increases the need for creativity and a new approach”

chart

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How do companies innovate in these troubling times?

growing by innovation CREATIVITY IN TIMES OF CRISIS The results of this Innovation Monitor indicate clearly that creativity is key to innovation success. These are the lessons we can learn from the innovation leaders:

Stimulate and reward ideas

percentage of respondents in ‘agreement’

Ideas can be found at all levels within an organization. Stimulating – and rewarding – idea generation within organizations is an important success factor for innovation. 88% of the innovation leaders indicate that their companies stimulate idea generation. They reward personnel with 88

Our organization believes in co-creation (developing innovations together with customers and business partners)

good ideas more often than the laggards (66% versus 40%).

Let yourself be inspired by the world outside your organization 88

Our organization stimulates the generation of new ideas

Trend reports, market research, even the daily newspaper can be important sources of inspiration. Insights and ideas from other markets can

help to make the familiar unfamiliar and the unfamiliar familiar, thereby stimulating creativity. Innovation leaders do this actively and thereby make use of creativity within the organization as well as sources of inspiration from outside the organization. To innovate successfully 77% of the

Our organization hopes to find ideas for new products in market insights from other sectors

leaders make use of new market insights, as compared to 34% of the laggards. And 88% of the leaders have co-creation projects with partners.

Very important in these troubling times.

Our organization is trying to increase earning power by finding new applications for existing competences (knowledge, skills. etc)

Find new uses for your organization’s strong points

What happens if you separate your company into components and reassemble in a different way? Leaders spend more time than laggards on the search for new applications for existing assets. Furthermore, 71% of the leaders is willing to invest in developing new applications. They try

to use their knowledge and to develop new markets where their competences can be applied in a new way.

31 57

Our company has started projects using new profit models

Experiment with new profit models for more earning power

Profit models describe the way a company (or group of companies) adds value to increase earning power. The model comprises everything from how payment is made to the cost structure. The term ‘profit model’ as part an integrative business model has become popular in the past

Our organization sees acquisitions and alliances with business partners as a way to stimulate innovation

two years in part because of the books from authors Gary Hamel and Alexander Osterwalder. Research shows that 63% of the leaders attach

innovation leaders

high priority to finding new profit models, as opposed to 31% of the laggards. Leaders also experiment more and actually start projects with 40

100

the new models.

innovation laggards

Our organization now attaches a high priority to finding new profit models

Achmea

growing by innovation CREATIVITY IN TIMES OF CRISIS

interview

The Achmea Innovation Centre of Excellence was instituted to look for innovation across the different

point of departure is created which you can build upon. Don’t ask in

case in point. This is an important group for Centraal Beheer, Inter-

product labels. In recent years it has initiated platforms such as www.goedenwel.nl – which focuses

advance what people think of the idea because everyone has a dif-

polis and FBTO. As a result of the platform, knowledge about this

on the fifty-plus age group, the pension related sites www.mijnpensioengoedgeregeld.nl and www.pensioenkoers.nl,

ferent opinion. Just do it. You toss things around and on the way you

group is not hoarded but shared across the divisions. Divisions now

an information site concerning issues related to death www.servicecentrumoverlijden.nl, and a platform for one-person

make the product better. This is the way the collaboration developed

not only know who is interested in this group and what they would

businesses, www.myler.nl.

with our Myler partners Manpower and the Numa Group.”

like to learn about the group, they also share information. Better yet, they start working together. It’s a source of serious energy!”

The Innovation Monitor results this year show that We talked with Sjaak van Heukelum, innovation manager at the

old way of thinking was: Achmea is in insurance and therefore we

innovation leaders are more active in looking for new profit

What impact does the crisis have on your activities?

Achmea Innovation Centre of Excellence.

introduce products in the market which we believe the consumer

models than the laggards. Is this an issue at Achmea?

Our team hasn’t been too bothered by it. But within our branch,

must have. But really, do you believe that the one-person business

“Profit models are fascinating. At Achmea Innovation we are think-

other businesses and in our network, the crisis is clearly present.

The Innovation Centre was founded two years ago.

owner wakes up thinking ‘hope I don’t get sick’? Of course not! He

ing about new profit models for insurance. We’re doing that together

Cost cutting seems to be the answer. It’s possible to assume that

What is the primary goal?

thinks: ‘I get up, I’m my own boss, I am the king’. Achmea now tries

“Nothing much has changed in the insurance business since it

to be more of a ‘friend’. We created Myler, a platform where jobs are

originated. In recent years a gap has grown between Achmea and

posted and where one-person business owners can build a network.

its customers. A different approach was needed in order to find a

We hope the one-person business owner will think: ‘you are my friend,

with partners from other business segments where there’s more

one shouldn’t be too entrepreneurial. Actually, Achmea’s invest-

new ‘fit’. Our activities can be described in three questions: firstly,

you may come help me’. The goal now is to connect to the applica-

experience. We have a model which makes it possible to really give

ment in Achmea Innovation is anti-cyclic. In times of economic

how can we connect people within the product labels and share

tion where the customer is, instead of bringing our application to the

something to our customers for free. In that model, customers only

crisis, being entrepreneurial is the thing to do. It helps to show

knowledge; secondly, which themes go beyond business divisions

customer!”

have to pay for additional features.”

customers that even in these times, we are trying to develop new

“In essence co-creation is simple: you bring Mr. Alarm and Mr. Radio together and then find out what you can do together.”

services that they themselves say they need. Achmea offers trans-

and how can we access these themes; and thirdly, how can we

Sharing knowledge and creativity are key in the process.

parency in what we do and consumers see that we’re on the ball.

ness is insurance. We like to collaborate with other companies in

How did it get started?

How do you encourage that?

Co-creation helps tremendously: working together with partners to

approaching new markets.”

“For this type of platform you need several things. You need to know

“We created 1Power (a word play on ‘empowerment’). This is a plat-

develop products and services our customers appreciate.”

how to make cross matches and you need to know something about

form to share knowledge and connect people. 750 people at Achmea

One of your focal points is to make the most of

cross media. So you look into your network to find someone with this

are connected to this platform. It is actively managed and people who

mega-trends. How do you do that?

expertise. In essence co-creation is simple: you find out what you can

are not active get disconnected. So everyone participates. They share

“Take as an example the theme of the one-person business. The

do together and then start with something small. That way a shared

all kinds of information. Again the theme one-person business is a 29

Myler is an example of co-creation with partners.

connect with partners who are also innovating. Achmea’s core busi-

Van Gansewinkel

growing by innovation CREATIVITY IN TIMES OF CRISIS

interview

Van Gansewinkel’s vision can be summed up in the slogan ‘there’s no such thing as waste’. The Van

processing residual waste for customers. Within and organization we

What impact does the economic crisis have on your

Gansewinkel Group has four companies: Van Gansewinkel is specialist in collection and processing of

create a ‘waste gate’ to eliminate waste before it makes it to the desks.”

activities? “We have made a clear choice to continue all C2C activities. It’s very

waste, as well as giving advice on all waste questions; Coolrec specializes in recycling electric appliances; Maltha Nederland How and to what extent do you involve customers and

important to act with a focus on the future. We help our customers

suppliers in your innovation process?

and partners with product development projects, because their

“Co-creation is very important in development: transparency in the

products will reach our recycling companies in five, ten or fifteen

cities. We not only support innovation, it is part of our management

way we work together with partners, sharing knowledge and pro

years. At the same time, there is today’s waste, which can also be

focus: we want to launch four or five new concepts each year. These

cesses. It’s scary to be so open, but it’s just a question of doing it. You

put to good use. The C2C philosophy helps us focus on the today’s

What significance does innovation have for

can range from electric refuse lorries to sites like containernodig.nl,

need to share information on the premise that it will result in business

business. And that’s imperative because these days much more is

Van Gansewinkel?

which is geared towards the consumer market.”

for all. At the end of 2007 we heard for the first time about cradle-to-

expected from innovation investments.”

specializes in glass recycling; and AVR is market leader in waste incineration and energy recovery.

We talked to Florens Slob, marketing manager at Van Gansewinkel.

cradle (C2C). Our relationship with Braungart was born. We position

Our Innovation Monitor reveals that innovation leaders,

and regulations and developments in the market of raw materials

more so than the laggards, are searching for new profit

are examples of influential market developments. The organization

models. Is this also the case at Van Gansewinkel?

of innovation is a combined action between the various regions,

“The profit model in recycling is based on the price of raw materials.

where ideas originate. These initiatives are supported and enriched

In recent years we have seen these prices fluctuate tremendously, a

are not a processor of refuse, but an important link in the raw materi-

with knowledge from our headquarters. There’s plenty of entrepre-

fact which has made it necessary for us to look for new profit models.

als cycle. This message has appealed to many and has led to several

neurship in the regions and a strong focus on our customers. Our

Our position is increasingly shifting from the back end of the product

collaborative efforts, such as with Philips. Together we dismantle a

people see opportunities and act on them.

life cycle to the front end. By working with partners, looking at their

Senseo to see which materials it’s made of and to gain insight into

An example is the idea to collect waste in the center of Rotterdam in

design process, we can reclaim more raw materials from waste

the design and selection process at Philips. With our joint expertise

a CO2 neutral way. The idea was to have refuse collected by an elec-

products. By thinking from a cradle-to-cradle perspective, a circular

we examine products from a ‘design for disassembly’ philosophy: the

tric refuse lorry, operating on energy generated by the waste being

economy, other decisions are made. Another example is EcoSmart,

goal being to reclaim as many raw materials as possible at the end of

collected. We developed this idea together with the Rotterdam

a waste module which enables integrated waste management. By

the product lifecycle. Philips is only one of the examples. In the same

municipality and with Spijkstal, specialist in electric vehicles. Experts

using this module the amount of residual waste, the most expen-

way we work with other parties, such as Ahrend, Mosa and Desso.”

from our headquarters helped in the development as well. At the

sive waste to convert into energy, is significantly reduced. Separation

same time we look into possibilities to apply the concept in other

at the source gives us purer raw materials and reduces the cost of 30

expect us to innovate and the market demands it. Changing laws

ourselves as a C2C company: wherever we can we proclaim that we

“By thinking from a cradle-to-cradle perspective, a circular economy, other decisions are made.”

“Innovation is one of Van Gansewinkel’s key values. Customers

weeding for innovation

‘Weeding’ to create value the vision of The Bridge

“In order to make wise decisions for spending innovation budgets, a sound review of running innovation projects and investments is needed. In many organizations no such review is available. Or if one is available, it is often so detailed that it’s impossible to make sense of it. Especially now it is important to get a maximum of returns on innovation efforts. A comprehensive overview of projects combined with a simple but adequate method for evaluating projects is needed. The method venture capitalists use brings us inspiration.”

Look only to the future when judging innovation projects Ending an innovation project is never easy. Teams have been working on the project for months; money, blood, sweat and tears have been invested. Investment decisions are often irrational. Arguments like: ‘we’ve been working on this for so long,’ or ‘it has already cost so much, we must continue’, play a role. Successful innovators on the other hand, think like venture capitalists: at any given moment they examine the remaining investment required in relation to the expected result. Investments already made are considered less relevant (sunk costs) and should therefore not influence the decision whether or not to continue. Successful innovators only look forward: how much investment is still needed, what are the expected results and what is the chance of success? It the answer is positive they continue, regardless of what has happened in the past.

Install an Innovation Board and get the financial manager involved Active portfolio management is required in order to increase return-on-innovation. To create a maximum of value it may be necessary to speed up some projects and to put others on hold, or stop completely. Estimating a project’s chance of success is usually in the hands of the project leader, who – more often than not – can be opportunistic. From our experience we know that there are several things which help take decisions about project investments. As mentioned, having a sound review of all running projects is a must. Additionally, it helps to install an Innovation Board, which is responsible for go/no go-decisions. The Board should consist of representatives of various disciplines, as well as the financial manager, who can help work out plans and help judge

“Selective weeding is necessary to increase return-on-innovation”

results. And finally, it helps to have a simple but clear finance and risk model, with no more than 10 variables, in order to be able to make comparisons between projects.

Jeroen Kuper, senior consultant The Bridge

chart

QuickTime™ zijn -decompressor weer vereist te geven. om en deze een afbeelding

How do companies manage their innovation portfolio in order to create a maximum value?

weeding for innovation weeding to create value The Innovation Monitor shows clearly that innovation leaders manage their innovation portfolios differently, in order to create maximum value. Here are the lessons that can be learned from the leaders:

Review running projects There are often several concurrent innovation projects. If budgets need to be redistributed, decision makers need an accurate and complete

percentage of respondents in ‘agreement’

review of running projects. 80% of the innovation leaders say their organizations’ have a complete review of running projects. Only 44% of the laggards can say the same. Having an ‘innovation funnel’ can be a great aid for creating an overview. 80

Our organization has a complete overview of current innovation projects

‘Weed out’ and redistribute in order to increase the success ratio These economically challenging times require an efficient and intelligent method for budget control. As soon as new information is available 80

Our company weeds out flagging projects in order to free budget to boost other projects

regarding the development and chance of success of an innovation project, it should be possible to let this have a direct effect on available budgets. Our survey reveals that leaders regularly redistribute budgets within the total innovation portfolio. 80% indicate that ‘weeding’ less suc-

cessful projects frees budget to give the better projects a boost. Only 50% of the laggards do the same. 60

Our organization regularly stops flagging projects regardless of investments already made

Don’t hesitate to stop

Innovation is often a question of looking for something new and not knowing what the result will be. Some projects are successful, while others will strand somewhere in the process or take unexpected turns. The Monitor shows that leaders end projects more often than laggards. 60% of

Our organization regularly redistributes budget within the total portfolio of innovation projects

the leaders indicate that they stop projects with little chance of success, regardless of investment already made. Only 40% of the laggards do

the same. 45

Make your ‘failures’ profitable

Even the innovation efforts that get stopped can contain valuable components. However, these components might not have the most value in your own company but be of value elsewhere. Selling ‘parts’ (technology, patents, concepts) is often a good option. 45% of the leaders say

Our organization has a structured approach for stopping innovation projects, in order to retain knowledge

they would rather sell a new concept than leave it to rust on a shelf. Innovation leaders also often have structured approaches for dismantling

innovation leaders

projects, in a manner that still can create some value for their company. 40

100

innovation laggards

Our company would rather sell an unused idea than let it rust ‘on the shelf’

weeding for innovation weeding to create value

Visser & Smit Hanab interview

Visser & Smit Hanab (VSH) is an operating company within the construction firm VolkerWessels. The

oping the chosen market. Those who work in that market need to

time maintaining focus. Furthermore, people are key to success:

activities of Visser & Smit Hanab involve development, construction and maintenance of networks,

know more about bell peppers than about pipelines.

the right person in the right project. Twenty years ago we almost

connections and plants in the water and energy sectors. The firm has 1700 employees and is primarily active in northwest

We furthermore work with a funnel model, in which we keep track of

only employed technicians. Now people with all sorts of back-

Europe and in Hungary.

our initiatives and which we use to manage the progress made in the

grounds work at VSH. And they are capable of thinking in terms

various projects. Our market managers are responsible for ensuring

of services. They are entrepreneurial managers who look closely at

We talked with Leo Wartna, director of the unit Commerce and

Could you give us some examples?

Technology Development at VSH.

“A good example is OCAP. OCAP is a joint venture between gas sup-

“In our marketing approach we try to transcend the boundaries of existing markets.”

plier Linde Gas and Visser & Smit Hanab. In the process of producing

that there are enough initiatives in the funnel. We then score the

our customers’ problems and at the problems of their customers.

What does Visser & Smit Hanab do in the area of

hydrogen at Shell in the Botlek, CO2 is released. In the horticulture

projects on the basis of financial and strategic criteria. If the initiative

The insights they gain are a source of inspiration for new concepts.

innovation?

sector CO2 is needed to help plants grow faster. Via a pipeline infra-

can go on to the next phase, we allocate more budget.”

We try to transcend boundaries of existing markets and we are

“In the field of construction, innovation is often equated with dis-

structure we transport CO2 from the Botlek to greenhouse enter-

coveries and technological inventions. That’s why we at VSH prefer

prises in the Westland, the B-triangle, Delfgauw and Wilgenlei. In this

Do you make use of specific tools or methods?

sources, such as public-private collaboration. Finally, the way we

to talk about initiatives instead of innovation. We’re more interested

example we transcend branches and sectors to find opportunities

“We recently started using a tool to evaluate the financial aspects

organize ourselves is important. Our unit is autonomous, indepen

in developing new initiatives in new markets, than in developing

and to create solutions.”

of innovation projects. For each project we make an estimation of

dent of existing business units. In a later stadium of development

the chance of success and the expected future financial contribu-

we connect with the business units.”

In the unit Commerce and Technology Development various

tion to overall company resultants. The resulting overview helps us

Characteristic of our work method is a new commercial approach.

development projects run concurrently. How do you

make better decisions on the progress of initiatives and also helps us

Traditionally constructors submit quotations based on detailed

manage your innovation portfolio?

discuss how we can improve the initiatives. Additionally, the review

specifications: in our view a reactive approach. We want to create

“In order to create demand, we not only need to understand the

gives our company a clear view of our unit’s contribution, through our

demand for our services. On our own initiative we identify problems

customers in the markets in which we operate, but we also need

initiatives, to the future results of VSH.”

in the market or problems our commissioners have and we offer

to understand their customers. This requires priorities, seeing as you

solutions. In the process we develop pioneer concepts which often

cannot be an expert in all markets. Our portfolio management pri

What are the success factors of your approach to

involve connecting new partners. In the development of these con-

marily consists of making choices at the start: priorities and targets.

innovation?

cepts we usually end up constructing the pipe line infrastructure

The selection of the horticulture market for example, then determines

“In the first place, it’s important to persevere and to look beyond the

and often also the maintenance.”

the selection of the team members who will be responsible for devel-

current financial year. Above all, just keep going, while at the same

established in 2003 for this purpose, focuses on developing markets.

new products. The unit Commerce and Technology Development,

looking for markets on the move. We also look for new financial

‘Soft’ criteria for ‘hard’ success the vision of The Bridge

“Many businesses judge innovation ideas, concepts and project plans according to predefined criteria. These criteria have a guiding as well as a selective function. We use decision making criteria in order to steer towards success. Sometimes criteria can have an inspirational character. With explicit criteria employees are given a framework within which they can be creative. Our experience reveals that this results in ‘better’ ideas, ideas that are valuable and that fit in with what a company is capable of and wants.”

Use strict criteria in a dynamic way Innovation projects can find themselves in different stages of development, from ideas and vague concepts at the start to pilot projects. It’s important to have criteria that fit the stage of development. The more developed an idea, concept or product is, the more extensive the criteria can be. Too detailed criteria in an early stadium of development can be killing for an initiative that is still a ‘rough diamond’. Many criteria can become sharper during the process, for example criteria for must haves, desirables and for bonus points. Too detailed criteria too soon can paralyze creativity.

Make choices on the basis of intuition, passion and conviction The current market situation is fast moving. Sales forecasts and other (hard) financial predictions are less trustworthy than they used to be. How much value we should attach to hard financial criteria when judging innovation projects, is a difficult question to answer. On the other hand, soft criteria such as intuition, passion and conviction are important elements which can offer much guidance. The cradle-to-cradle proposition was developed on the basis of vision and passion. It definitely was not financially substantiated. And yet at present, countless cradle-to-cradle

Arun SwamiPersaud, senior consultant The Bridge

initiatives are being implemented and are contributing to financial corporate results.

Use creativity to discover ‘unsuitable’ new business ideas Innovation is a process of discovery and experimentation. When a certain initiative does not match predefined financial criteria, make it a challenge to discover how the idea could be made to fit the criteria. For example by enlarging the chosen market segments or by searching for ways to generate additional sources of income.

“Intuition and conviction are vital when making choices in troubled times”

chart

QuickTime™ zijn -decompressor weer vereist te geven. om en deze een afbeelding

Which criteria and considerations carry weight in decision making?

weeding for innovation ‘soft’ criteria for ‘hard’ success Our survey shows a broad spectrum of criteria that innovation leaders use as well as their specific considerations when making choices. Here are their lessons:

Use a broad set of decision making criteria

percentage of respondents in ‘agreement’

Many companies have a predefined set of criteria to be able to make decisions about their innovation projects. Financial ratios, fit to strategic priorities, sustainability and fit to image or brand: these are several examples of common criteria. When we look at the number of criteria that

The return on innovation and impact on the company’s financial results

companies use in their decision making, then we see a difference between leaders and laggards. In general, leaders have more criteria than lag-

The development of new markets and customer segments

The risk profile of the investment, including payback time and depth of the investment

gards: an average of 7 criteria for leaders as opposed to an average of 5 criteria for laggards.

Pay more attention to ‘soft’ criteria

Our image: our customers expect us to bring new initiatives on a regular basis

When judging innovation projects both leaders and laggards attach great value to return on investment and to the impact on the company’s financial results: financial, ‘hard’ criteria. Innovation leaders however also pay a lot of attention to ‘soft’ criteria. Image, the impact of a project

The impact on our strategic goals

on the strategic ambitions, the project’s sustainability and the entrepreneurial feeling of the team members: these are factors that leaders also consider important when judging innovation projects. Laggards tend to focus solely on the financial value of a project.

The sustainability of the innovations The development of new technology

Entrepreneurial feeling in the team

Strike a balance between financial and strategic value 57% of the innovation leaders indicate that they strive to find a balance between financial and strategic values when judging projects. For 44% of the laggards, only the financial value was important.

Motivating and keeping our employees involved

Our innovation program goals

The strength of the business model, with a unique and plausible proposition 25

Social developments, being considerate of others Possible price increases: being able to ask a higher price as a result of innovation

innovation leaders

100

innovation laggards 43

weeding for innovation ‘soft’ criteria for ‘hard’ success

SCA Hygiene Products interview

SCA Hygiene Products in Hoogezand is part of the Personal Care division of the Swedish SCA concern.

tors reducing costs, but we believe that now is the time to be proac-

How do you make choices in your innovation process?

SCA (Svenska Cellulosa Aktiebolaget) is a global consumer goods - and paper producing company that

tive and innovate. We discovered that we had unwittingly created

“SCA Hoogezand also has hard financial targets. But money is not

develops, produces and markets personal care products, tissue, packaging, publication papers and solid wood products.

Chinese walls between the production units. Everyone was innova

always the most important criterion for innovation. Our company

SCA Personal Care, with headquarters in Munich, develops, produces and markets absorbent products for babies, feminine

ting in their own way. There was no overall strategy or knowledge

is very employee oriented. We innovate sometimes to improve

care and incontinence needs. Well known brand names are Libero, Libresse and TENA. Their clients are retailers, pharmacists

sharing between the different units. We wanted to work collectively

employee satisfaction, or to eliminate certain frustrations. We

and health institutions (care and cure) in Europe and North America.

on a stronger market focus.”

especially want to encourage creativity and to offer a pleasant work environment, in which our employees can contribute fully to

What did you do?

adding value to our products.”

We spoke with Ronald Udo, Plant Support Manager & Unit Plant

How is your innovation process organized?

“Together with The Bridge we developed a framework innovation

Support Manager and with Peter de Rapper, Unit Support Manager &

“Our innovation process is designed around the life cycle of our

program for the whole company. One of the first steps was to create

What impact does the economic crisis have on your

Innovation Manager.

products and machines. After a new product introduction, it grad

awareness within the management team. We wanted to develop an

innovation policies?

ually becomes a commodity, leading to lower prices. We then need

ambidextrous approach: on the one hand maintaining an operational

“The crisis has added to our conviction that now is the time to inno-

In the past 45 years a lot has changed in the field of

to work more efficiently in order to maintain our margin. In turn this

excellence focus and on the other hand developing a sharper focus

vate. Everyone, that is to say our competitors, are cutting costs. We

personal hygiene products. What can you tell us about

means that we need to find smarter and innovative ways to produce

innovation at SCA?

our products. Later on in the life cycle we look for product innovations

In 1963 SCA Hoogezand started the production of sanitary napkins,

in order to continue using the full capacity of our plant. On the other

which then looked like cotton balls in a net. Since then much has

hand, we always reserve some physical space at SCA Hoogezand in

on innovation. Recently we spent two days with our entire middle

need to do some of that too, but we also need to do new things.

changed: from thin absorbent layers and tape strips to ‘wings’ for

order to produce new products that have been developed elsewhere

management at the Oosterpoort in Groningen. The goal was to step

Before the crisis hit, we were unfolding our new innovation strategy.

more comfort and absorption. It’s become a commodity product

in the SCA concern.”

out of the daily business and to inspire our managers. We identified

But we are convinced that innovation in the coming years is going

20 themes, which we – for the time being – reduced to three innova-

to win on importance.”

SCA Hoogezand has undertaken new steps on the road to

tion themes which will be worked out further: sustainability, voice of

often an inspiration for innovation in another product line. The idea

innovation. Was there a need for a new strategy?

the consumer and leadership for innovation. Not all the themes are

for incontinence pants grew out of a combination of baby diaper

“For years we have done everything possible to make our produc-

new for the organization. For years now we try to produce for sus-

panties and the then existing incontinence bandages.”

tion process as efficient as possible. Operational excellence was the

tainability. New to this focus is the explicit inclusion of informing our

goal. We believe however that operational excellence on its own is

employees, so that everyone recognizes this focus. In addition to the

not enough. In these difficult economic times we see our competi-

focus on communication, there is a focus on ‘action’.

now all supermarkets carry the product. At SCA one product is

as well. In the past you could only buy it at the pharmacist, but

“The crisis has added to our conviction that now’s the time to innovate.”

sector analyses

sector analysEs

Retail and consumer goods

Financial services

• Retail looking for innovation

• Innovation has a low priority

• Focus on new markets, profit models and other applications for

• 30% expects to spend less on innovation, regardless of their ambition

existing assets

to innovate radically

This sector differentiates itself from others by…

This sector differentiates itself from other sectors by…

+ giving high priority to finding new profit models: 71% of the

+ giving a low priority to innovation and by focusing on making the

respondents in this sector as opposed to 49% average + the number of projects in which a new profit model is developed: 82% has started projects with new profit models as

most of existing business and/or cost cutting + lack of focus on speed with their market introductions + the fact that 40% has the ambition to innovate radically, regardless

opposed to 46% average

of limited investment budgets.

+ the degree to which new applications for existing assets are being sought. In particular, the development of new markets where existing competences can be deployed scores much higher than in other sectors.

for more sector information go to www.innovatiemonitor.com

sector analysEs

Chemicals

Flex service market & facility services

Energy and water sector • Sector seeks radical innovation

Contracting and technical service providers

• Planned approach to innovation and large investments bring results

• Flex-market and facility services expect to invest more in innovation

• Current daily practice still focuses on improving existing products and

• Creating new turnover is not front of mind

• High turnover from new products and services

• Sector actively looking for new breakthrough services

This sector differentiates itself from others by…

+ differentiated goals: some aim at limiting loss of turnover, while

+ having the highest percentage of respondents expecting to

+ the expectation of turnover growth this year: 33% expects 10%

+ low investment in innovation: 36% of the contractors (as

others aim at turnover growth

invest more in innovation next year: 60% as opposed to an

+ large investments in innovation: 57% (as compared to 35% of

average of 37%

• Contractors focus primarily on cost cutting

services

turnover growth

opposed to 12% average) invests less than 1% of the yearly

+ a strong ambition to innovate radically and to create new

turnover in innovation

other respondents) indicates that more than 3% of turnover gets

+ a relatively strong focus on radical innovation

markets with new business models: 50% has the ambition to

+ a high priority to streamlining their processes (67%)

invested in innovation

+ a high percentage of respondents (67%) currently looking for

innovate radically

+ a low priority for finding new profit models.

+ a planned innovation culture: 48% describes the innovation

new market insights that will lead to service innovation.

culture as planned, compared to 22% of other respondents.

+ the criterion sustainability as an important criterion for innovation projects.

for more sector information go to www.innovatiemonitor.com 51

for more sector information go to www.innovatiemonitor.com

sector analysEs

Government & non-profit/ autonomous government organizations

Business services

• Limited attention for stimulating idea generation within the govern-

• Cost cutting is not an issue • Focus on autonomous growth in existing and new markets

ment, regardless of hefty investments in employee knowledge and skills

sector analysEs

Telecom and ICT

Agro- & food industry

• Current innovation focus doesn’t match the innovation ambition

• Large majority aim at growth in the coming year

• Sector wants to innovate radically but is occupied with improving

• Advancing innovation is an important strategic priority

existing services

This sector differentiates itself from others by…

This sector differentiates itself from other sectors by…

This sector differentiates itself from others by…

+ more organizational restructuring and more investments in

+ increased turnover from new customer groups and/or new

+ a positive growth ambition for turnover: 59% of the respondents

+ having a growth target for turnover: almost 57% of the

employee knowledge and skills

market segments

+ limited stimulation and facilitation of idea generation and

+ giving priority to increased turnover through autonomous

knowledge sharing

growth in existing and new markets

+ the large extent to which co-creation with partners is used to

+ giving cost cutting a low priority.

aims to grow in the coming year

respondents indicates a growth target

+ an innovation culture characterized by planning: 50% of the

+ investing less than other sectors in knowledge and skill

respondents describes the culture as planned innovation

development of their employees + having a complete overview of current innovation projects in

(compared to 22% average making the same claim) + the need to make choices: 59% indicates that there are more

speed up innovation.

90% of the responding companies.

projects in the innovation portfolio than there is budget.

for more sector information go to www.innovatiemonitor.com 53

for more sector information go to www.innovatiemonitor.com

sector analysEs

Media

Electro and mechanical industry

• Media sector recognizes the need for innovation and is looking for

• Focus on limiting turnover loss • Serious reduction of innovation budgets expected in the

new markets and new business models • Present focus is on creating new markets with a new business model

coming year

This sector differentiates itself from other sectors by…

This sector differentiates itself from others by…

+ recognizing the need to innovate: 79% of the respondents

+ a higher than average percentage of respondents aiming to

indicates that there is a great need for new products and services

limit loss of turnover (25% as opposed to 16%)

+ realizing that innovation achievements have declined in

+ a high percentage respondents (29%) planning on investing

comparison to previous years

less in innovation next year

+ developing new customer groups. 64% of the respondents

+ the courage to stop projects: almost 75% doesn’t hesitate to

indicates that 5% of turnover is from new customer groups or

stop poorly performing projects, as opposed to 53% average.

new market segments.

for more sector information go to www.innovatiemonitor.com

trends

new

on going

trends

most important

important

most important

important

Mobile internet

Gaming and virtual reality

New Profit Models

Blue ocean strategy

The newest generation ‘smartphones’ (for example iPhone and

The use of computer game techniques for developing, advertising

Applying profit models that are uncommon in the branch or sector

The development of new unused market space (blue ocean) virtually

Blackberry) have increased the attractiveness of mobile internet.

and delivering products and services.

where they are used (for example advertising models, subscription

eliminating competitors. This in contrast to continuing to compete

The pricing structure (with a ‘flat fee’ for data subscriptions) and the

+ Gillette Champions training game is an example of an on-line

models).

within the existing boundaries of the industry (red ocean).

+ Hilti ‘Tool Fleet Management’, a system by which a complete

+ André Rieu, who travels all over the world with shows combining

growing number of social applications for these telephones, have

advertising game

led to a tumultuous growth of mobile internet.

toolkit can be leased for a fixed price per month

classical music, salon music, operetta, soundtracks and pop music,

Professional products

+ T-Mobile’s growth from mobile internet is 30%

performing for an audience that formerly never attended orches-

Professional products are entering the consumer market. The intense

Eco Everywhere

Transparency

competition between producers and the production in low wage

Eco, sustainability and cradle-to-cradle: development of products

The increasing number of sites offering product comparisons or

countries have made advanced technology more available and

and services that in their production, consumption and/of elimina-

Aging society

product evaluations has increased consumers’ information. At the

affordable for consumers.

tion are less harmful for the environment. New laws and regulations

The vast group of baby boomers is aging. This has brought about a

same time consumers are demanding more openness from the

+ Microlife sphygmomanometers (to measure blood pressure) are

stimulate this trend.

demand for new and other products and services to meet their needs.

+ Nissan introduces the Leaf, the first electric car

+ Achmea offers a platform for 55-plussers, www.goedenwel.nl

Locality

Open innovation & co-creation

Mass customization

On & off

Emphasizing the place of origin of a product to attract a specific

Companies are getting people from outside their own organiza-

Using flexible production systems to produce custom made prod-

The on- and off-line worlds are increasingly intertwined. The use of

group of consumers.

tion involved in the innovation process in order to exchange ideas,

ucts. The systems combine the low unit costs of mass production

RFID tags and codes on products and in communication, is bringing

+ Absolut Vodka is inspired by cities like New York or New Orleans

combine processes or to commercialize IP and concepts.

with the flexibility of individual tailor made products.

the physical and internet worlds together.

+ Sara Lee open innovation with consumers on

+ NikeID lets customers personalize their shoes

+ ‘Tikitag-sticker’ are product stickers with RFID tags, which on

www.openinnovationatsaralee.com

available for home use

business community.

tra performances

+ ANWB has a site on which airline tickets are compared

contact send information to one’s mobile phone for more trend information go to www.innovatiemonitor.com 59

for more trend information go to www.innovatiemonitor.com

The Bridge

the bridge

The Bridge business

innovators

The Bridge business innovators help companies develop innovation and new business initiatives. We do that as consultants and as interim

The Bridge innovation executives

management (Innovation Executives). The Bridge connects existing and new business, technology and marketing and we bring people from

Whether through cost cutting or through increased turnover, the end result of support from The Bridge innovation executives is increased

different companies together.

revenues for your organization. In 2009 The Bridge created a new service: Innovation Executives. Many companies need temporary support from an expert who can speed up

‘Growing your business’

new business development, speed up projects or grow the innovative capacity in the organization.

The Bridge helps your company achieve new growth by combining creativity with business sense. Alpha + Beta, as we call it.

Innovation Executives from The Bridge are experienced employees or experts from The Bridge’s network. This network consists of national and international business innovation experts. They are very experienced and selected on the basis of proven pioneering mentality, interpersonal

Three questions about innovation

skills, management and executive experience and specific professional knowledge. The common denominator is drive for results.

The Bridge organizes itself and it’s methods around three questions about innovation that are currently relevant: 1. How can we create new business pragmatically in times of recession?

(Inter)national network

2. How can we improve and/or speed up innovation projects that are not going well or that must perform better?

The Bridge business innovators belongs to the Twynstra Gudde Group and is partner in the exclusive Highland Worldwide network, a network

3. How can we assign priorities within our total innovation portfolio and how can we improve the return-on-innovation effort?

of larger consultancy firms throughout the world. This makes it possible for The Bridge to access a network of international experts in Europe, Asia and the United States.

The Bridge business innovators P.O. Box 907 3800 AX Amersfoort

Sources: www.wikipedia.nl www.trendwatching.com Bain & Company press release 3/27/09: â&#x20AC;&#x153;Investeren tijdens recessie loontâ&#x20AC;?

telephone +31 (0)33 467 74 70 www.thebridge.nl This brochure is printed on FSC certified paper.