Volker HeilSenior Advisor R&D and InnovationDFS Deutsche Flugsicherung GmbH

Innovation Management at DFS –Facts and thoughts

EUROCONTROL ART Workshop on Innovation, Sept. 17, 2014, Brussels

Agenda

2

Preliminary note: „My“ kind of innovation

Three teasers and comments

DFS organisation and process of innovation management

Lessons learned

Who pays?

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Backup/ for discussion session

Preliminary note: „My“ kind of innovation

An innovation is something original, new, and important in whatever field that breaks into a market or society. (Today we talk about our core business, ATC/ATM/ANS…)

Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself.

Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better.

________________

Adapted from Wikipedia (http://en.wikipedia.org/wiki/Innovation)Not talking about the latest fashion or hype called innovation.

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Agenda

4

Preliminary note: „My“ kind of innovation

� Three teasers and comments

DFS organisation and process of innovation management

Lessons learned

Who pays?

17.09.2014V. Heil, DFS

Backup/ for discussion session

Teaser #0: Innovations for ATC canteens *)

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Cambridge, UK – 24 May 2014, http://www.dovetailed.co/#_____________________*) Not yet available at DFS

Teaser #1: 40 years of innovation ?

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(quadratisch)__________________Thanks to Jörg Buxbaum, source: Innovation blog of DFS

*

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Please, ask yourself: Similar to other industries?

Innovation: A question of perspective

Think/Present positive! (Jubilation and cheering ceremony?)

� ATC/ATM is perceived as innovative by the public.

� SESAR is a huge step forward.

� Industry offers innovative products.

� Each project is innovative per se, by definition!

� We do things in the right way! All advisors tell us to do what we do.

Be honest, we want to learn something! (Fouling of your own nest?)

� Are we satisfied just to have something new? Or rather a break-through?

� Do we do the right things?

� Industry offers what they have on stock or are paid for. Usability?(There is no innovation without user/customer.)

� Are we mature for innovation? Do we need innovation now? Can we afford innovation?

� With innovation cycles of 10+ years can we speak of innovation at all?

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The court jester

Teaser #2: Trajectories

… operational concept foresees the assignment of a number of relevant ATC tasks to the aircraft:

• Exact calculation of the flight profile (…) for the intended flight, based upon information provided by the airline company, and transmission of this plan to the ATC system on the ground;

• Adherence to the flight profile accepted by the ground system to the extent possible within the constraints of aircraft performance data; and

• Automatic notification of the ATC ground system when deviations from the flight profile overstep previously agreed-upon limits.

…This is a cooperative coordination of planning and decision data on board and on the ground.

Quoted from a SESAR document?

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Very old concepts: Trajectories, cooperation

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… operational concept foresees the assignment of a number of relevant ATC tasks to the aircraft:

• Exact calculation of the flight profile (…) for the intended flight, based upon information provided by the airline company, and transmission of this plan to the ATC system on the ground;

• Adherence to the flight profile accepted by the ground system to the extent possible within the constraints of aircraft performance data; and

• Automatic notification of the ATC ground system when deviations from the flight profile overstep previously agreed-upon limits.

…This is a cooperative coordination of planning and decision data on board and on the ground. Therefore the concept is called Cooperative Air Traffic Management Concept (CATMAC).

[May 1990]

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CATMAC

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Co-operative Air Traffic Management Concept (CATMAC )

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� Bundesanstalt für Flugsicherung (BFS, Federal Administration of Air Navigation Services), May 1990

in cooperation with

− Federal Armed Forces Air Traffic Services Office (AFSBw)

− German Aerospace Research Establishment (DLR)

− Deutsche Lufthansa

� Today:

− Trajectory concept: first steps

− Data-link: is there, but not everywhere (and problems)

− Civil-military cooperation: working, innovation! (not everywhere)

− Collaboration (e. g. Airport CDM)

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(Different) Trajectories

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1) Yes, we have a trajectory based systemin operation since Dec. 2010: VAFORIT (Very Advanced Flight Data Processing Operational Requirement Implementation) in Karlsruhe

Yes, very successful!

Yes, to be extended to lower airspace. And iTEC. And SESAR. And …

But still far behind the ideas of CATMAC.

- - - - - - - - - -

2) Trajectories represent intention/requirement of air space users

Key to success

„Never ending story“ or just „ever young“?

If we have trajectories, why do we use sectors to cut trajectories intodifferent parts producing some „overhead“?

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Agenda

13

Preliminary note: „My“ kind of innovation

Three teasers and comments

� DFS organisation and process of innovation management

Lessons learned

Who pays?

17.09.2014V. Heil, DFS

Backup/ for discussion session

DFS management organisation

AS

Aeronautical

Solutions

VC

Corporate

Planning /

Charges

VF

Financial

Management

VP

Procurement

VY

Corporate Safety &

Security

Management

VA

Corporate Audit

VE

Corporate

Development

VR

Institutional &

Legal Affairs

VK

Corporate

Communications

V

Chairman and Chief Executive Officer

Klaus-Dieter Scheurle

PN

Regional HR &

Employee

Relations

AK

Academy

P

Human Resources

(Labour Director)

Michael Hann

SH

Systems House

ZM

Civil-Military Affairs

& Stakeholder

Management

F

Operations

Robert Schickling

AIM

Aeronautical

Information

Management

OP

Planning &

Innovation

CC

Control Centre

SIS

Systems &

Infrastructure

Services

TWR

Tower

OA

Airspace & ANS

Support

JUNE 2014 14

PS

HR Services

PZ

HR Manage-ment

Headquarters &

Strategy

2014: „Planning and Innovation“• Central organisation, reporting to COO• Bringing planning, overall requirementsand (former) R&D together

• ATM Master Plan • Innovation Management

Organisation and process: HistoryOr: From R&D to innovation management

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� DFS/BFS has a long tradition of R&D activities (with partners!)

� R&D was never meant to be in the ivory tower, never an end in itself

� Not just technical matters, but application/usability (Make ideas/systemsfit for purpose. Technology transfer)

� Very difficult to „penetrate“ operations

� Breakthrough: Show benefits in realisticsimulations/demonstrations involving controllers

� 2005: Large-scale validation („V3“) withpolitically incorrect „preview“

� 2008: „R&D“ part of operations managing directorate, reporting to COO

� 2009: Systematic innovation management established

� 2014: „Planning and Innovation“, reporting to COO

The court jester

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R&D? � Get ready for (an innovative) Europe!

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National and European (funded) projects

External activities(e. g. ICAO, European Commission, EUROCONTROL, PHARE, CANSO,

forming of political will, SES, European Framework Programmes, TEN-T, LuFo, SESAR)

ATM, conceptsCDM, AMAN, PMS, Layered Planning, Automation

DFS internal activities(e. g. operational concepts, A-SMGCS, VAFORIT, RTC, S-ATM, ADS-B, PAM/WAM, ACAS Monitor, VoIP)

CNS, enablersMode S, Data Link, ADS-B, Multilateration, ASAS

SESAR

ATM/CNSsystems

SESAR

ATM/CNSsystems

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Innovation – A simple process?

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Production InnovationNew ideas

Process OutputInput

A dream? Or a nightmare?There is no such thing in air traffic management!

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Innovation management: DFS management process

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Manage/foster the conversion of ideas into innovations for core business

„Planning & Innovation“ as process owner, host and catalyst or incubator

IdeasEvaluation,

assessment

Implementation

Wastebasket

or

to be reconsidered

Sponsor

Novelty?KPI contribution?Fit for purpose?Further studies?

Collected by scouts

Innovation Board

Inn

ova

tio

n

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Innovation Board

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� Try to change culture, keep innovation potentials alive

� Find, collect and evaluate/assess ideas/inventions with innovationpotential (Fit for purpose? Expected contribution to key performanceareas or indicators?) for our core business (not just engineering ortechnical systems), initiate and control/steer/track further activities

� Foster further evaluation through studies, prototypes, experiments, proofof concept

� Trigger and accompany/advise implementation projects

� Closely linked with architecture board

� Find sponsors/champions (managers of potential users) to become thedriving force behind qualified ideas – and to make innovation happen!

� Check whether the innovation really happens in daily operations

� Report to higher management board including managing directors

The court jester

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Innovation management: First lessons

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� You do not need (although it might help)

− innovation management,

− R&D

to have innovation.

� You need

− pepole to perceive and enforce new possibilities,

− entrepreneurship (cf. J. A. Schumpeter),

− top-class staff (knowledge, creativity, curiosity, endurance, opennessto risk and change, cooperation, longer-term orientation),

− money and resources

to have innovation.

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Hope we are heading for the next innovation

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Thank you for listening!

Innovations (actual and potential): Some examples

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� Cooperation, funding, leverage

− National and European funded projects

− SESAR/SJU

� New systems/applications

− VAFORIT (Very Advanced Flight Data Processing Operational Requirement Implementation)

− Airport CDM

− Mutilateration Frankfurt

− GBAS Frankfurt

− Voice Recognition and Response

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Innovations (actual and potential): Some examples

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� Common requirements and procurement

− iTEC/iCAS (Interoperability Through European Collaboration, iTECCenter Automation System) and additional tools: development, SESAR validation

� On its way from R&D to innovation

− ACAS monitor: prototype network (including ADS-B for Germany), SESAR validiation

− ADS-B instead of and beyond Mode-S: operational feasibilitydemonstrated

− Remote Tower Control Center: DFS project + SESAR

− Sectorless ATM: Validation project, to be transferred to SESAR

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Agenda

24

Preliminary note: „My“ kind of innovation

Three teasers and comments

DFS organisation and process of innovation management

�Lessons learned

Who pays?

17.09.2014V. Heil, DFS

Backup/ for discussion session

Lessons learned

25

� Entrepreneurship

� Who makes the innovation?

� New ideas

� Make it happen!

� The enemies

� The chances or opportunities

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Lessons learned

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� Entrepreneurship

− Who is the entrepreneur in air traffic control?

− Yes, I want …! Not: Yes, we can!

• Entrepreneurship cannot be delegated or socialised.

• SRIA is nice, but who makes innovation happen?

• How to manage my boss, the EC, …? No!

− Not a question of privatisation or administration

− Does (present) regulation allow for entrepreneurship?(Does regulation allow for innovation, with long lead times?)

− Innovation culture: engage management and staff

− Global aspects of air traffic: European/Global entrepreneur?Competition might spoil the innovation, produce incompatibilities.Or cope with multiplicity of solutions (no unique standard).Think global, act local.

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Lessons learned

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� Who makes the innovation?

− The customer/user makes the innovation happen, not the producer.

− Improve service, not (only) technical systems

− Innovation vs. „exnovation“ (Edgar K. Geffroy): satisfy the needs ofyour customers. It‘s not about products, it‘s about life of yourcustomers. Are you still a service provider, a contractor? Or are youable to take your customers by (positive) surprise?

− Sell dreams, not products (cf. Steve Jobs). But the dreams (e. g. business trajectories) must come true!

− Niche market and traditional requirements capture: Producers sellwhat they are paid for.

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Lessons learned

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� New ideas

− There are many (enough) ideas around, no lack of ideas

− There is a realisation backlog. Make well-known things work first.Is there a solid basis to build innovation upon?Are we mature for new ideas and innovation?

− Nevertheless we need fresh ideas for the longer term (exploartoryresearch, out-of-the-box, transfer from other industries/services)

− Be careful when trying to transfer the innovation process from otherfields to air traffic management. ATC is a very special niche market.Nevertheless we can learn a lot.

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Lessons learned

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� Make it happen!

− Stop R&D

− Technology transfer

− Transport your vision, care for acceptance

− Standardisation, certification (global, at least European level)

− Regulation, mandates

− Serious validation and requirements consolidation

− User participation (controllers, air space users), even ownership

− Involve unions, staff representatives, works councils

− Cooperation

− Stepwise implementation

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Lessons learned

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� The enemies

− You! (Ready and willing to change yourself? Innovation changes yourlife.)

− Politics

− Continuity (real innovation is a little bit disruptive) and history (yourpast and today)

− Cost pressure (innovation needs investment first)

− Short sighted focus (even 5 years regulation period is short!)

− Bonus (variable component of salary according to annual success)

− Adhere to the plan! (A plan is a plan and real innovation always is a surprise.)

− Conservative attitude towards safety

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Lessons learned

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� The enemies

− Poor project performance, missing or politically motivated validation(Need good scientific practice of reproducibility, evidence-baseddecision making)

− „good enough“ (initial operational capability without innovation, costreduction)

− You are not allowed to do that. SESAR alreday does it or should do it.

− Open questions: research needed (� delay)

− Patents and licence fees

− Old architecture, missing openness, no modularity

− No alternative for service (essentially)

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Lessons learned

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� The chances or opportunities

− New managers (hope they stay long enough)

− You! And your staff!

− SESAR, national / European funding, cooperation

− Windows of opportunity, Chronos and Kairos

− Insist to do the right things (and do them in the right way anyhow)

− We can have innovation, we even have to enforce it to justify ourexistence!

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Lessons learned

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� The chances or opportunities

− Use available knowledge and experience, transfer research results

− Do it now, in steps: 50% of something is better than 100% of nothing

− Longer-term, out-of-the-box research, multiplicity

− Cost pressure (longer term)

− Safety (longer term)Innovation makes life safer! (Innovation can and must increase safety. But probably not in all detailed aspects and in a different way.)

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Agenda

34

Preliminary note: „My“ kind of innovation

Three teasers and comments

DFS organisation and process of innovation management

Lessons learned

� Who pays?

17.09.2014V. Heil, DFS

Backup/ for discussion session

Who pays? - Tri-/Multilateral „Business Case“

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Service Provider, e.g. Airport, ATC

BusinessCase

AircraftIndustry Airspace Users

Expect cost reductionand further benefits

Investment toAchieve Benefits

New aircraftcapabilities to

enable newapplications

or procedures

Expect Orders

ATM/CNS R&D:- New applications- New procedures

To be implementedby Service Providers

To be supported by standards/certification and mandates

Hope we are heading for the next innovation

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Thank you for listening!