Strategic Innovations Aspirational and operational

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Strategic InnovationsAspirational and
operational

• Dr Taco C.R. van Someren
• Dr Shuhua van Someren-Wang
• MSWG Conference
• Park City, Utah
• June 26-28, 2006

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Content

• About Ynnovate
• Strategic innovations
• Strategic innovation and sustainable development
• Cases
• Watercompany of the Future (Netherlands)
• China Huaihe river paper industry
• Discussion

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• International Strategic Innovation Consultants
• 3 client solutions
• New unique corporate growth
• Building the corporation of the future
• China business development
• References
• Utility, Automobile, Electronic, Consumer goods,
  Banking, Chemical, Services
• (Local) governments and Ministries
• Europe and China

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About

• Special advisorships
• Seconded Innovation Expert European Commission
• Advisor of the Dutch, German and Chinese
  government
• Invited Professor Beijing Normal University
• Entrepreneur
• Founder and Managing Partner Ynnovate
• Advisor of blue chips, medium sized firms and
  public sector
• Intrapreneur
• 12 years KPMG
• Founder and Director KPMG Sustainability Berlin
• Founder and Partner KPMG Business Innovation
• Manager consumer goods industry
• PhD (summa cum laude) Strategic Innovation
• Pioneer on subject of strategic innovation
• Master Degree Business Economics

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1Strategic innovations
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Strategic Innovation areas (examples)
Source van Someren, 2005
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Is non-technical innovation important?
Knowledge and RD are NOT key to growth and
success
Creativity and entrepreneurship are key !!

• Lisbon 3 GDP for RD
• Technology programs
• Knowledge Economy
• Knowledge is No 1 factor

• Here also
• New growth options
• Added value and jobs
• Reinventing economy

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Cases
Logistics
Food and Beverage
Retail
Manufacturing

• Combining and exploiting trends
• New customer service
• Products and services
• New economic ratio
• New competences

Radical innovation New business model
Source van Someren, 1991, 2005
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Two knowledge paradoxes

• Paradox 1 Knowledge available but not applied
• Paradox 2 The newer the innovation the less
  relevant knowledge
• Henry Ford
• When I would have asked the people what they
  needed, with the available knowledge I would have
  build faster carriages

Solution Mobilization of Creativity and
Entrepreneurship
Source van Someren, 2005
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2Strategic innovation andSustainable
development
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Some frontrunners

• Standardization McDonalds
• Self-construction IKEA
• Pollution Prevention Program 3M
• Evolution Toyota Prius
• Electrical furnace Scrap Nucor
• Sustainable development Body Shop
• Inversed consumer pyramid Philips
• 65/gender consumers Rollator

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Sustainable development (SD) new perspectives
needed
From
To

• SD as a risk
• SD as a cost
• SD is only a policy issue
• SD is only long term
• SD is about marketing
• SD is about training and HR
• SD does not effect core business

• SD as an opportunity
• SD as a revenu generator
• SD is a strategic business issue
• SD is short and long term
• SD is about future corporate life
• SD is about leadership and vision
• SD creates new business model

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But can everybody do it her/himself?
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The missing link
Measures
Results
Strategic Innovation New business model

• Cost reduction
• Investment in SD
• Competitiveness
• Jobs
• Opportunities

• Good
• Environmental
• Regulation
• EU Heads of EPA
• China 11th YP

What about
Results

• Customers
• New demand
• Market trends
• New markets
• Mergers

• Growth options
• Revenue increase
• Satisfaction
• New services

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Aspirational Creating breakthroughs
Leadership
Inside-out
Outside-in
Ambition
Economic engine
Trends Discontinuities
Radical Innovation Businessmodel
Core competences
Market/ customer
Corporate culture
Competition
National culture Normsvalues
Source van Someren, 2005
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Operational Implementation
Strategic planning vs.
Strategic Innovation
2 Strategic process - BoD decides -
managers carry out
1 Strategic content - discovering and creating
- building business model
1 Strategic content- data, data, data-
external developed strategic concept
2 Strategic process - mobilizing creativity and
entrepreneurship - involve stakeholders
Implementation
Learning Implementation and adapation of
organization
Zeit
Concept Plan Carry out
Doing Becoming Being
Time
Time
Source van Someren, 2005
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Large Scale Event
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What happens?

• Realistic radical innovations
• Tailor made solutions
• New value creating growth options
• Concepts none of us has thought about
• Building your own future
• Team spirit
• Excitement
• Amazed and delighted customers
• A creative and risk tolerant environment
• Learning how to innovate
• Context for future innovations (DIY)

Doing Becoming
Being
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3Cases
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Case 1

• Creating the watercompany of the future

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Water company of the future

• Assignment
• Which trends are relevant
• How to react

Trends 1. Increasing scale/consolidation 5. New
market segments 9. 2. Business
orientation 6. International markets 3.
Sustainable development 7. New technologies 4.
Privatization 8. Professional management
Regulation is not driver of utilities but trends,
(global) markets, customers are

• Methodology
• Strategic Innovation Cycle

• Solution
• Merger
• Creating a new business model water company of
  the future

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Watercompany of the Future
Old

New

• Motives
• New trends
• End of
• monopoly
• International markets
• New future client needs
• Increasing competition

New business model
Internalfocus Technology Bureau- cracy
New markets, clients, products
Market Business Manager/ Entre- preneur
Client orientation
Pro-active market activity
Intrapreneurship
New competences
Client solution delivery process
Institutionalized innovation process
New performance indicators
growth in all business areas after 6
months
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Results
External
Internal

• Professional management
• Operational efficiency
• New performance indicators
• Transparancy
• New competences
• Dynamic culture

• Business development
• New growth options
• Customer orientation
• New products and services
• New added value
• Market leader

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Case 2

• China Huaihe river paper industry

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China Huaihe river bassin
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Water carrying capacity management in China

• Assignment
• How to solve the water pollution problem
  cost-effectively
• in the Huaihe River Basin?

Problems 1. Pressure of economic growth (paper
industry) in the poor up-stream 2. Conflict
between water demand and supply 3. Uneven
distrubution of water carrying capacity 4.
Rich region gets the polluted water from the poor
up-steam
Trends 1. Increasing scale/consolidation 5. New
market segments 9. 2. Business
orientation 6. International markets 3.
Sustainable development 7. New technologies 4.
Privatization 8. Professional management
Law enforcement is not driver of
progress but integration of economy and ecology
and involvement of stakeholders are

• Methodology
• Policy environmental economic impact assessment

• Methodology
• Strategic Innovation Cycle

• Solution
• Regional economic innovation
• Institutional renewal

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China Water Carrying Capacity Man. (WCCM)
Old

New

• Motives
• sustain
• economic growth
• pollution control
• cost effective
• reduce water
• conflict

Strategic innovation
Preven- tion and treatment Sustainable
economic growth Value of water
Treatmentfocus High water consumption
economy No valuation of nature
Cost-effective water management
Market orientation
Water valuation
Integrated triple-P planning
New economic structure
Policy EIA
Institutional innovation
New performance indicators
a long way to go
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Results
Economy
Water management

• Awareness change
• More cost effective
• Sustainable results
• More integrated approach
• Less regional conflict
• Continuous improvement

• More sustainable policy
• Balanced development
• New growth options
• New products and services
• New added value

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Wrap up
Sustainable development requires a strategic
business approach
featured by out of the box thinking AND doing

supported by leaders who mobilizes
entrepreneurship and creatitvity
resulting in shaping your own future and
becoming the best
and having fun and excitement!
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Few references

• Amsterdam Water Supply
• WG / WMO (now Nuon)
• BMW AG
• Philips
• Shell
• KPMG
• RABO Bank
• NIB Capital
• National Australia Group
• Demir Bank (now HSBC)
• DHB

• DHL Express
• VW Shanghai
• Haier
• Techint
• European Commission
• Government Netherlands
• Government Germany
• Government of Hebei

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Source

• The source mentioned in several slides refers
  to the recent book by Dr Taco C.R. van Someren
• Strategische Innovationen. So machen Sie Ihr
  Unternehmen einzigartig, Gabler Verlag,
  Wiesbaden, Germany, 2005. ISBN 3-409-03420-X

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You want to know more? Please contact
Dr Taco C.R. van Someren Mobile 31 (0)6 - 42
717307 Tel. 31 (0)70 - 301 8494 Email
tcrvansomeren_at_ynnovate.com Web
www.ynnovate.com