Successful Innovation Management Requires More Than the Right Methodology

 

For approximately 30 years, the Chamber of Commerce Innovation Consultancy Hesse has been offering its members assistance and advice in all concerns ranging from financing to marketing of their innovations. The competence center contributes to a successful networking between science and business. Detlev Osterloh, Head of the Department for Innovation and Environment, comments on the most important criteria for a successful innovation process, how long development times can be reduced and why frequent failure is particularly important for innovative enterprises.

GSC: The Chamber of Commerce Innovation Consultancy in Hesse offers its member companies support in technology and innovation related issues that particularly concern development, funding, protection, production, and marketing of innovations. What exactly does this all round support comprise?

Detlev Osterloh: The Chamber of Commerce Innovation Consultancy Hesse has made it its mission to be the first point of contact for all issues related to innovation and to support and assist companies in Hesse during their entire innovation process – from the idea to the market. To this end, we offer a range of services. In addition to individual consultations on topics such as industrial property rights, technical rights, financial issues or cooperation opportunities, we offer a variety of events on technology and management issues as well as access to technology-based networks and innovation clusters. We assign special value to our certified courses that provide participants with a high level of methodological expertise in managing and optimizing their innovation projects. We operate across districts within a nationwide and European network and would like to be the first point of contact in all questions concerning innovations.

GSC: Which industries benefit most from your work?

Detlev Osterloh: The main innovative industries in Hesse are the pharmaceutical, medical, chemical and automotive industries as well as mechanical engineering and the material processing industry. In order to survive international competition, the use of the latest innovative technologies is essential. This is why we focus on the key technologies and systematically connect providers and users. Biotechnology, microelectronics, information technology, new material and surface technologies, as well as optics and photonics are currently of particular importance. Also for the so-called industry 4.0 these technologies are important drivers.

GSC: The Chamber of Commerce Innovation Consultancy Hesse sees itself as a link and interface between business and science. What is your role in technology and knowledge transfer from universities to business?

Detlev Osterloh: Unfortunately, technology transfer does not work properly yet, as politicians often lament. Exchange and cooperation between large companies and universities, however, works excellently. But small and medium-sized companies lack both resources and experience of working with researchers from universities and colleges. At this point, the Chamber of Commerce Innovation Consultancy comes into play. Potential innovation projects are discussed and specified in individual counseling sessions or company visits. If external research skills are needed for the realization of these projects, regional consultants will identify suitable candidates from Hessian universities or within regional technology clusters and put them in contact with the respective companies. This can only work because the regional consultants maintain close contact with the transfer agents of the Hessian universities and are therefore very well versed in the research landscape.

GSC: You have already supported many innovative companies and know about the preconditions that allow the creation of innovations. This year you have published a guide to innovation management in SMEs. What are the main criteria for a successful innovation process?

Detlev Osterloh: It is important to employ a conscious, deliberate, goal-oriented, and systematic approach to innovation projects. There are numerous methods that provide a good basis for successful innovation management. However, in addition to methodological knowledge, there are four main aspects that make up success: firstly, employees who have the freedom to develop ideas and solutions, secondly, acceptance and active support by the management, thirdly, visionary goals in line with the corporate strategy, and fourthly, clear rules and processes by which innovations are initiated, tested, and evaluated. Interaction of all persons and departments involved in the particular innovation process is crucial here. This requires an open and transparent corporate culture. By the way, how to be an innovation manager is learnt best in our certified course Innovation Manager (Chamber of Commerce), which has just started.

GSC: Innovation orientation is essential in a challenging competition. How can companies develop new products that customer really need?

Detlev Osterloh: Impulses for innovations arise in many different areas. There are internal impulses from the company itself - by employees or even dictated by the corporate strategy - and there are external impulses from the competition or the customer - the market. Thus, a careful market analysis is absolutely essential. Often, however, innovations are not even recognized by the market as such. Therefore, marketing often decides on the economic success of a new product.

GSC: Which first step do you recommend companies after the development of an initial idea?

Detlev Osterloh: At best, an innovation process is carried out in six stages, from the idea to the final evaluation of the innovation project. Management should decide as early as possible whether an idea is really to be realized or not. A systematic creation and evaluation of the idea's draft, the concept paper, and the project plan is helpful. At each of these milestones it should be re-evaluated if the innovation project is economically worthwhile and whether it will actually be implemented. Since innovations are usually very expensive, there is a principle that applies to innovative companies in particular: Fail early, fail cheap, fail often.

GSC: For many companies the long development times are dissuasive – especially when, today, innovations can be imitated by others rather quickly. Do you have any suggestions for innovative companies how they can reduce their development times?

Detlev Osterloh: Innovative companies increasingly draw upon quite creative innovation concepts. An example that is being widely practiced lately comes from the software industry. A well-known IT company once published a beta version of a newly developed software. Thereby, the manufacturer received valuable information for the optimization of its application from consumers or test users. Another example for the acceleration of innovation processes is the so-called open innovation. The basic principle of open innovation is that various companies, organizations, and institutions use the knowledge and expertise from outside to solve their own specific questions. These open questions result in far more diversity and creativity than it is the case with purely internal innovation processes. Another innovative tool is the so-called crowd funding. Innovative start-up companies in particular are often hampered in their innovation projects by a lack of funds. For them, crowd funding is a new opportunity that allows selected sponsors to cover the financing needs of an innovation with micro amounts via internet. These are just a few examples for the acceleration of innovation processes.

GSC: Hesse is a popular investment target for foreign companies. How important is internationality for the Hessian innovation landscape?

Detlev Osterloh: Innovative companies enjoy an excellent business environment in Hesse: excellent research, diverse technology clusters and networks, access to highly skilled professionals, and – with Frankfurt Airport, the transportation hub in Europe – an excellent infrastructure. These are important factors that make up Hesse's attractivity for innovative companies around the world. The resulting internationality in turn allows for value chains to be closed and for the innovative power in Hesse to rise. As an innovation location, Hesse is well on the way.

GSC: Mr. Osterloh, thank you very much for this interview.

 

More information: www.itb-hessen.de

Contact: d.osterloh(at)frankfurt-main.ihk.de