Table Of ContentStructured Creativity
Also by Hugo Tschirky
TECHNOLOGY AND INNOVATION MANAGEMENT ON THE MOVE:
From Managing Technologies to Managing Innovation-driven Enterprises
(with P. Savioz and H.-H. Jung)
BRINGING TECHNOLOGY INTO THE BOARDROOM (co-author)
Structured Creativity
Formulating an Innovation Strategy
Tim Sauber
and
Hugo Tschirky
in association with the
EUROPEANINSTITUTEFORTECHNOLOGY
ANDINNOVATIONMANAGEMENT
© Tim Sauber 2006
All rights reserved. No reproduction, copy or transmission of this
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of this work in accordance with the Copyright, Designs and
Patents Act 1988.
First published 2006 by
PALGRAVE MACMILLAN
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PALGRAVE MACMILLAN is the global academic imprint of the Palgrave
Macmillan division of St. Martin’s Press, LLC and of Palgrave Macmillan Ltd.
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ISBN 978-1-349-54280-2 ISBN 978-0-230-51324-2 (eBook)
DOI 10.1057/9780230513242
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A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Sauber, Tim, 1978–
Structured creativity: formulating an innovation strategy / by Tim
Sauber and Hugo Tschirky.
p. cm.
Originally presented as the first author’s doctoral thesis
Includes bibliographical references and index.
1. Creative ability in business—Management. 2. Technological
innovations—Management. 3. Strategic planning. I. Tschirky, Hugo, 1938–
II. Title.
HD53.S28 2005
658.4(cid:1)0714–dc22 2005047742
10 9 8 7 6 5 4 3 2 1
15 14 13 12 11 10 09 08 07 06
Contents
List of Figures vii
Acknowledgements xi
Introduction: Management Summary xiii
1 Introduction 1
Research focus and relevance 1
Research design and methodology 7
2 State of the Art in Theory 12
Innovation strategy formulation literature 12
Complementary literature 47
Conclusion: Innovation strategy formulation (theory) 55
3 State of the Art in Practice 57
Interviews 57
Conclusion: Innovation strategy formulation (practice) 60
4 The Dual Gap 61
Dual gap in innovation strategy formulation 61
Working hypotheses 62
5 Concept 66
Innovation architecture 67
Innovation strategy formulation process 88
6 Action Research 130
Selection and procedure of the action research cases 130
Case 1: Toll Revenue 132
Case 2: TecChem 138
Case 3: HighTec 143
Case 4: Info Exchange 154
Case 5: Optic Dye 161
Case 6: Built-up 167
Case 7: RubTec 172
Case 8: MicroSys 181
Case 9: StockTec 187
Cross-case analysis and conclusion 193
7 Conclusion and Working Hypothesis Rethought 199
v
vi Contents
8 Towards a New Set of Management Principles 203
Understanding the innovation system 204
Formulating an innovation strategy 206
Implementing an innovation strategy formulation process 209
Notes 212
Bibliography 217
Index 227
List of Figures
1.1 Importance of innovation rated in a survey with CEOs 2
1.2 Importance of innovation strategy related in a survey 4
with CEOs
1.3 Structure of this book 9
2.1 Structure of Chapter 2 13
2.2 The three basic tasks of management: design, direct 15
and develop
2.3 Strategic management of a complex, systemic 19
interacting and evolutionary system
2.4 Evaluation of strategy formulation schools 23
2.5 Evolution of the term ‘innovation’ over time 25
2.6 Comparative overview of innovation types with 29
differing degrees of novelty
2.7 Integrated innovation: understanding innovation 33
categories
2.8 Value creation is the addition of defining value and 36
providing value
2.9 Evaluation of innovation strategy definitions 40
2.10 Integration of technology issues into strategic 45
business planning
2.11 Evaluation of innovation strategy formulation concepts 46
2.12 Architecting = creating an architecture 50
2.13 The context-specific use of the architecture concept 52
2.14 The types of architecture 54
4.1 Working hypothesis 1: understanding the complex 63
systemic interactive and evolutionary system
4.2 Working hypothesis 2: innovation architecture as 63
innovation strategy formulation support
4.3 Working hypothesis 3: implementation of innovation 65
strategy formulation process; company specific
implementation.
5.1 Innovation architecture 68
5.2 Three knowledge dimensions 70
5.3 Object knowledge dimension 71
5.4 Two-level progression of idea generation 75
5.5 Functional tree 76
vii
viii Lists of Figures
5.6 The definition of the functions is related to the 78
product properties
5.7 The definition of the functions relates to the 79
technology decision-making perspective
5.8 The definition of the functions relates to companies’ 80
strategic intentions
5.9 Innovation fields 81
5.10 Methodological knowledge dimension 83
5.11 Example of an innovation architecture including 84
object and methodological knowledge
5.12 Major results of the innovation architecture 86
5.13 Design guidelines for developing an innovation 86
architecture
5.14 Value defining processes in a company 89
5.15 Description of the virtual company Pixel AG 91
5.16 Visualization of the opportunity landscape 93
5.17 First draft of an innovation architecture at Pixel AG 94
5.18 Actual innovation architecture at Pixel AG 96
5.19 Structured and complete innovation architecture 99
with all innovation opportunities at Pixel AG
5.20 The functional handshake analysis at Pixel AG 102
5.21 Key success factor analysis at Pixel AG 103
5.22 Core competence analysis at Pixel AG 105
5.23 Scenario technique at Pixel AG 106
5.24 Market portfolio analysis at Pixel AG 108
5.25 Knowledge gap analysis at Pixel AG 110
5.26 Innovation roadmap at Pixel AG 112
5.27 Resource allocation at Pixel AG 113
5.28 Establishing R&D projects’ net present values 114
5.29 Dynamic technology portfolio at Pixel AG 115
5.30 Reasons for make or buy/keep or sell 117
5.31 Definitive innovation architecture at Pixel AG 120
5.32 Innovation strategy content including a simplified 122
example of Pixel AG
5.33 The innovation strategy of Pixel AG 124
5.34 Deriving the innovation processes, based on the 125
innovation architecture at Pixel AG
6.1 The nine action research cases at a glance 131
6.2 Project objectives of action research case at 134
Toll Revenue
6.3 Innovation architecture at Toll Revenue 136
Lists of Figures ix
6.4 Project objectives of action research case at TecChem 140
6.5 The innovation architecture at TecChem (simplified) 141
6.6 Project objectives of action research case at HighTec 145
6.7 Innovation architecture at HighTec (Division One): 146
segmentation by function
6.8 Innovation architecture at HighTec (Division Two): 148
segmentation by products
6.9 Innovation roadmap at HighTec (Division One) 152
6.10 Innovation roadmap at HighTec (Division Two) 153
6.11 Project objectives of action research case at 156
Info Exchange
6.12 Innovation architecture at Info Exchange 158
6.13 Project objectives of action research case at Optic Dye 162
6.14 Innovation architecture at Optic Dye 164
(simplified overview)
6.15 Innovation roadmap at Optic Dye 165
6.16 Project objectives of action research case at Built-up 169
6.17 Innovation architecture at Built-up 170
6.18 Project objectives of action research case at RubTec 173
6.19 General innovation architecture at RubTec 175
6.20 Identification of new business fields based on 177
innovation fields at RubTec
6.21 Innovation roadmap at RubTec 178
6.22 Technology portfolio at RubTec 179
6.23 Project objectives of action research case at MicroSys 183
6.24 Innovation architecture at MicroSys 184
6.25 Project objectives of case at StockTec 188
6.26 Deriving the innovation processes based on the 190
innovation architecture at StockTec
6.27 Innovation processes at StockTec 192
6.28 Cross-case overview of project objectives and 194
management satisfaction
7.1 Evaluation of the innovation strategy formulation 200
process compared to the existing concepts
