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Innovation Box: Think inside the boxEgmont International has made innovation systematic. A special “Innovation Box” on Insight is the key to the system.

Niels Almer / Corporate Communications / nal@egmont.com/ Photo: Steen Brogaard and others

Egmont International, which covers Egmont’s com­

panies outside the Nordic region, is a leading Euro­

pean publisher of books and magazines for children

and young people. The division is financially fit,

generating annual revenue of approximately EUR

300 million, or about 20% of Egmont’s total revenue.

However, Executive Vice President Frank Knau explains

that the division has set its sights high, aiming to

generate revenue of EUR 500 million in 2010.

Attaining this goal will take more than geographic

expansion and acquisitions alone – innovation

will also be needed.

In Frank Knau’s view, successful innovation

comprises multiple elements. First, an innovation

structure needs to be in place. This structure can

only be created with the support of the division’s

top management. By the same token, innovation

is a cornerstone of Egmont International’s business

strategy. However, structure alone is not enough.

A successful innovation process depends on having

employees who can contribute ideas as well as

the resources to support and follow up on these

good ideas.

A suggestion boxA page on Insight makes the innovation concept

tangible for all Egmont International employees.

This is where they can upload their ideas for products

or processes, and the page has space for all sorts

of input. Called an “Innovation Box”, the page was

launched last October. An “Idea Manager” has

been appointed in each country to help employees

develop ideas. At last count, the box contained

almost 200 ideas.

Frank Knau explains that once an idea has been

developed and assessed to have value­creating po­

tential for consumers, the next step in the process is

the evaluation phase, where the idea is presented

to an innovation board. During this phase, the

innovation board provides feedback: Should a

business plan based on the idea be developed?

Is more research needed? Can the idea be used

locally? To date, at least 20 ideas have reached

the evaluation phase.

Great ideas are rewardedTo support the innovation process, Egmont Inter­

national has an incentive system that encourages

would­be contributors to pass on their ideas. An idea

is easier said than done so ideas that become a real­

ity are up for a cash reward.

The division is also planning “The Egmont

International Awards” for winners in five categories:

best company of the year, best idea of the year, best

innovator of the year, best communicator of the

year and best employee of the year. As Frank Knau

explains, the award is intended as a mark of recogni­

tion of both good results and hard work.

The innovation box has existed for almost

six months and enjoyed resounding success at

Egmont International. The future challenges for

the innovation process are primarily how to

stimulate and strengthen consumer and customer

focus and how to bring external partners into

the innovation process.

Innovation is not only about how to get new

ideas, but also about how to take different action

in developing existing processes. From this perspec­

tive, it becomes clear that countless initiatives can

be added to the innovation process to maintain

momentum. Frank Knau concludes by citing Costas

Markides, an external speaker at the recent manage­

ment conference in Vilnius: “Innovation is not ideas,

innovation is making ideas happen!” And Egmont

International has a clear focus: Implement some of

the ideas generated by the innovation process as fast

as possible.

Executive Vice President Frank Knau believes

management back-up is crucial to the innova-

tion process.

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“A magazine for me and my mom” is the

working title of a product that combines two

magazines in one publication: A section for

children and another for their mothers. The

idea is the brainwave of Viktoria Ivanova, editor

of the youth magazine BRAVO in Bulgaria.

Targeting both groups increases the chances of

attracting potential readers and thus of gener­

ating higher advertising revenue.

The magazine will be free and financed by

advertising income. Unlike traditional editions

of these publications, found at cafés and movie

theaters, this magazine could be distributed

primarily through such channels as kindergar­

tens or children’s play centers.

The Innovation Board has evaluated the

suggestion, and an Idea Manager is currently

researching the relevant marketing data for a

magazine of this type.

Idea: Mom&Me – two magazines in one

Foreign Rights Manager Sabine Arenz from

Egmont Verlagsgesellschaften, Cologne,

has suggested that the division promote

knowledge exchange by rotating employ-

ees, for example. The Innovation Board

has given the go-ahead for the idea, which

primarily has internal value for Egmont.

The purpose of Sabine’s idea is to

exchange knowledge and best practice

Idé:

Knowledge exchangethroughout Egmont International. By ex-

changing knowledge, employees can learn

about each other’s specific projects and

develop new skills.

Having received feedback from all the

division’s managing directors, the Innova-

tion Board is now evaluating Sabine’s idea.

The aim is to launch some sort of exchange

program later this year.

Sabine Arenz

Viktoria Ivanova

What happens to your ideas?

1. An employee uploads an idea to the

Innovation Box

2. An idea manager passes on promising ideas.

3. The Innovation Board evaluates all submit­

ted ideas and returns feedback to the

idea managers.

4. Together with the idea’s originator,

an idea manager develops a business

plan to support the idea.

5. The Innovation Board rejects or accepts

the proposal and allocates funds to the

project.

Innovation Box on Insight

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Defiance – dynamic driving forceProducer Louise Vesth from Zentropa is the invisible woman behind the Danish TV suc-cess “Clown” (a Danish version of the US comedy series “Curb Your Enthusiasm”). Louise sees innovation as the ability to create a matrix within which talent can flourish, openly admitting that innovation, like much else at Nordisk Film film studios, is not systematic. Louise considers this a strength.

Christian Bjerregaard / Nordisk Film / christian.bjerregaard@nordiskfilm.com / Photo: Steen Brogaard

How do you define innovation?For me innovation is about the ability to create a matrix

that gives the talented individuals who work with what

we term “artistic necessity” the latitude to defy rules,

norms and authorities.

Are creativity and innovation the same?Hmm …..creativity means filling out a given structure,

but innovation is about breaking molds and creating new

ones. In the film milieu, creativity is often about content,

while innovation typically has to do with processes.

Is Zentropa an innovative place?A place can’t be innovative but people can. We are only

as good as our managers and employees. As I see it,

Peter Aalbæk Jensen has created the conditions for every

producer, editor and any other professional to shed con­

ventions and norms. This development has been crucial

to Zentropa.

We are defiant, we express ourselves without

restraint, we have attitude – qualities that generate

dynamism but also difficulties. Defiance, confrontation

and catalysis are often pivotal forces for art in movies.

Defiance is a dynamic driving force. Things often only

happen when you shout “Shut your face!” at your boss,

and he barks “Ditto!” back.

Do you work systematically with innovation?Zentropa doesn’t have overall strategies for anything

much – maybe because Peter Aalbæk Jensen hates

PowerPoint! We simply don’t own the equipment to

create a presentation. We take things as they come.

Our corporate culture governs decisions. And I have to

admit that I’m not sure whether a systematic approach

can even generate renewal or innovation.

What conditions have to be in place for people to be innovative?Great determination to make what you believe

in happen, whatever the cost.

We’re hyper­sensitive, always on the edge, always

on the side of the film, film above all.

People who make movies and TV fight for their

art, sometimes even with Zentropa as the adversary.

Always keeping in mind, of course, that we can only

spend money that we actually have.

We have to be prepared to go all the way, to put

ourselves on the line to make a difference. At Zentropa

we’re willing to draw attention to ourselves and be de­

liberately provocative in the name of creativity. Maybe

that’s why Peter Aalbæk and Lars von Trier so enjoy

baring themselves.

Producer Louise Vesth: “At Zentropa we’re willing to draw attention to ourselves and be deliberately

provocative in the name of creativity.”

Why do you think many people consider Zentropa innovative?In an industry where conditions are often volatile, and in­

genuity is needed, we have successfully hired people who

are provocative. And provocative people create headlines

and awareness.

When are you personally innovative?I’m not really innovative in the traditional sense, but

I create the conditions that allow others to be. However,

I do occasionally challenge the matrix: Our movie

“Life Hits” didn’t qualify for public support because

no one believed in the movie or the script. But I

insisted on finishing the job, and we made the movie

with a ludicrously small budget. If I’d done as everyone

else said, “Life Hits” would never have been produced.

I got lucky because it sold 110,000 tickets and did

well on DVD too.

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Zentropa in briefIn February 2008, Nordisk Film acquired 50% of the company Zentropa Folketn 34 years old

n Hired by Zentropa in 2001.

n Studied at the National Film School of Denmark.

n Produced “Clown”, “Life Hits”, “Kick’n’Rush”

and “How to Get Rid of the Others”.

n Zentropa board member.

Louise Vesth – in brief

Zentropa was established in 1992 as the result of

Lars von Trier and Peter Aalbæk Jensen’s collabora­

tion on the movie “Europa”. The company differs

from its main competitors in having a decentralized

and autonomous organizational structure that cre­

ates space for new ideas and alternative produc­

tion methods. This company culture has attracted

some of the best directors to Zentropa and been

the cornerstone of groundbreaking projects such as

the “Dogma concept” – an idea that has inspired

countless directors the world over.

Over the years Zentropa has expanded its

activities beyond the Scandinavian borders, success­

fully establishing several production units in Europe.

The company also works with many other European

production companies and is always interested in

new partnerships

Zentropa movies enjoy worldwide critical ac­

claim and have garnered the most prestigious film

festival prizes, including The Golden Palm and The

Silver Bear. Zentropa has furthermore represented

Denmark at the Oscar Academy Awards on three

occasions.

In February 2008 Nordisk Film became

co­owner of Zentropa when it acquired a 50%

stakeholding in Zentropa Folket Aps.

“Employees at Avedøre and Valby have always enjoyed good personal and professional relations

and respect,” said Michael Ritto, managing director of Nordisk Film, commenting on Nordisk Film’s

recently attained status as co-owner of Zentropa. He is seen here with Zentropa’s Peter Aalbæk.Louise Vesth is the invisible woman behind the

Danish TV success “Clown”.

Innovation stop press:

Zentropa establishes the Brille­abefond foundationLouise Vesth recently became the admin­

istrator of Zentropa’s new Brilleabefond, a

fund intended to secure the existence of

elite movie­making in a world of increasingly

revenue­fixated TV stations and film com­

panies. The fund makes an annual award

of DKK 6 million in contributed capital to

Danish filmmakers. Awards are made at the

sole discretion of film director Lars von Trier

and go to films that explore the idiom and/

or content of the film medium.

The first project to receive support

from the fund is Anders Klarlund’s feature

film “Memories”, a violent, erotic and

chilling movie about a woman’s recollection

of the events that led to her waking up,

completely battered, in hospital. Shooting

is slated to start in summer 2008, and the

movie is expected to premiere in 2009.

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The next steps…In January Egmont held a management conference in Vilnius focusing on growth and innovation. The conference has kick-started several new initiatives and projects that have propelled the innovation theme to the top of the agenda throughout Egmont. We asked four managing directors about their approaches to innovation and about how innova-tion processes will unfold in their particular departments.

Anne-Sofie Stampe / Corporate Communications / ast@egmont.com

How has the Egmont conference in Vilnius

inspired your work with innovation?

Above all, by putting innovation on the agenda.

Next, by incorporating our innovation work in the

overall strategic plan that we are implementing. I

believe working with innovation in a targeted way

and understanding how it fits into the big picture

are crucial. It’s the only way we can make sure that

innovation creates concrete value relative to the

primary challenges facing a given business unit.

How will the innovation process unfold

in your department?

Specifically, by adopting the innovation model

developed by Egmont International. Initially, we will

implement a practical version of the model where

employees can e­mail their innovation suggestions

to idea managers. One manager concentrates on

“A working focus on innovation is an en-

tirely new approach for us, and that’s why

we will be implementing ideas by using

the ‘learning by doing’ method,” explains

Rolf Bangsgaard.

process­oriented innovation while the other focuses

on product­ and concept­related innovation. The two

idea managers will assess and qualify all suggestions

before sending the best ideas to a small decision­

making group that will ultimately decide which

proposals get the green light.

A working focus on innovation is an entirely

new approach for us, and that’s why we will be

implementing ideas by using the “learning by doing”

method – in other words, we will test the ground

and adjust the model as we go.

Rolf Bangsgaard, Director Creative and Development, Egmont Serieforlaget

How has the Egmont conference in Vilnius

inspired your work with innovation?

We have regular Friday brainstorming meetings

involving all office employees and have started using

models from the Vilnius conference to evaluate new

ideas. We try to challenge our preconceptions in all

business fields and in every situation.

How will the innovation process unfold in your

department?

Our upcoming teambuilding days will be fully

devoted to innovation at Egmont Croatia. We will try

to get the idea and spirit of innovation across to all

employees. We will probably set up a local Innova­

tion Box (read more about this on pages 4 and 5,

ed.) to which all staff can contribute ideas not suited

to international use but that may benefit our local

business. If an evaluation shows that an idea also

has international potential, it will be added to the in­

ternational Innovation Box as well. Some colleagues

have already been awarded the first prizes for new

ideas. The awards were presented in front of all

employees to show our satisfaction and to motivate

others. All ideas generated at our weekly brainstorm­

ing meetings will be published on Egmont Croatia’s

Insight pages, where everyone can get ideas when

working with a related topic.

“We have regular Friday brainstorm-

ing meetings involving all office

employees,” says Bruno Barbic.

Bruno Barbic, managing director, Egmont Croatia

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How has the Egmont conference in Vilnius inspired your work with innovation?Since the Vilnius conference, over a few sessions,

I’ve presented selected parts of the conference

content to my organization. I believe recognition

is the way to innovation and change, a theme

echoed at the conference. The messages

and examples were extremely well received

and stimulated constructive discussions in

the company.

“I believe recognition is the way to innovation and change,” says Carsten Kjelde.

Bernd Jürgens, Marketing Director, Egmont Horizont Verlag

How has the Egmont conference in Vilni-

us inspired your work with innovation?

Egmont International had already started

the innovation process in 2007 when it held

a kick­off meeting in London and published

an innovation box on Insight. In my role as

idea manager at Egmont Horizont Verlag,

I try to manage the whole process in our

department. The two wonderful presenta­

tions by Costas Markides and Herman Gyr,

external speakers at the Vilnius conference,

added impetus to the idea. Personally, I try

to challenge processes and meetings based

on the “we’ve always done it this way”

approach.

How will the innovation process

unfold in your department?

I’ve started holding brief weekly creative

meetings where I test a range of creative

techniques on different groups of colleagues

and invite employees from all departments.

We use the meetings to understand how

the various techniques work in specific

contexts such as product development and

advertising concepts. We are also installing

a “blue room” in the company where

employees can meet to exchange ideas

or simply relax and take a step back from

their work.

“I’ve started holding brief weekly

creative meetings where I test a

range of creative techniques on

different groups of colleagues,”

says Berndt Jürgens

How will the innovation process unfold in your department?I intend to let myself be inspired by Egmont Inter­

national’s process and implement the routines and

forums necessary to support the overall innovation

process. Since we have an internal service function

in the group, for our part the innovation process

will have a dual­track: one track where we scruti­

nize our internal IT systems and another where we

look at our relations and the services we deliver to

the Egmont Group’s business units.

Carsten Kjelde, CIO, Egmont IT