EU Certificates Day: Experience Story from the Innovation Manager Courseby M. Neumann, Pierburg GmbH, DE
Dublin, 03. September 2008
www.kspg.com © Pierburg 2008 2
Agenda
Pierburg GmbH – Company Overview
Certified Innovation Manager Course – What are the main advantages?
Innovation Management at Pierburg GmbH – A short overview and how the insights from the Innovation Manager Course influences the daily business
Summary and Outlook of the Innovation Management at Pierburg GmbH
Agenda
www.kspg.com © Pierburg 2008 3
Leading European Defence company for ground forces technologySales: € 1.757 bn
Employees: 7,175
Share of Group sales: approx. 44%
Leading automotive supplier in engine components and systemsSales: € 2.249 bn
Employees: 11,895
Share of Group sales: approx. 56%
Rheinmetall DefenceKolbenschmidt Pierburg AG
The Rheinmetall GroupCorporate sectors
Rheinmetall AGSales 2007: € 4.0 billion, Employees: 19,185
All data refer to 2007
Pierburg GmbH
www.kspg.com © Pierburg 2008 4
The six divisionsKolbenschmidt Pierburg AG
Sales 2007: € 2.25 billion, Employees: 11,895
KS Kolbenschmidt Pierburg Pierburg PumpTechnology
KS AluminiumTechnologie
KS Gleitlager Motor Service
Sales:€ 728 m
Employees: 6.018
Sales:€ 220 m
Employees: 991
Sales: € 588 m*
Employees: 2.120*
Sales: € 371 m*
Employees: 1.253*
Sales:€ 210 m
Employees: 1.066
Sales:€ 170 m
Employees: 396
Products:
- Passenger carpistons
- Piston modules- Commercialvehicle pistons
- Large-bore pistons
Products:
- High-endaluminum engineblocks
Products:
-Air Management- Emission Control- Actuators- Solenoid Vales
Products:
- Engine Bearings- Dry bearings (Permaglide®)
- Continuouscasting
Products:
- Automotive partsfor engine repairand workshops
Products:
-Oilpumps-Waterpumps-Vacuumpumps
* Projection/ All data refers to 2007
Pierburg GmbH
www.kspg.com © Pierburg 2008 5
Nova OdessaBrazil
DetroitGreensburgGreenville
Fort WayneMarinette
Auburn Hills
USA
CelayaChihuahua
Mexico
Usti n. L.Czech Republic
ThionvilleParisLyon
France
HiroshimaOdawara
Japan
ShanghaiChina
AbadianoSpain
LancianoLivornoTorino
Italy
IstanbulTurkey
New DelhiPune
India
DuntonGreat Britain
St. JuliansMalta
Berlin DormagenHamburg HarthaNeckarsulm NettetalNeuss NeuenstadtPapenburg St. Leon-RotStuttgart Walldürn
Germany
KSPG - Presence in all relevant markets and in selected low cost countries
Pierburg GmbH
www.kspg.com © Pierburg 2008 7
Research & Developmentm EUR / as % of Sales
64
55545449 51
55
6,0% 6,1% 5,9% 6,2% 6,0% 6,0%6,7%
2001 2002 2003 2004 2005 2006 2007
Source: Company Information
4,0%
4,0%
4,4%
4,5%
5,0%
5,5%5,5%
6,7%
7,7%
7,7%
BorgWarner
Hitachi
Magneti Marelli
Visteon
Continental
Mahle
Valeo
Pierburg
Bosch
Denso
Research & Development 2007as % of Sales
Pierburg complete (incl. PPT), all data refer to 2007
Pierburg – A Technology Leader
Pierburg GmbH
www.kspg.com © Pierburg 2008 8
Highly skilled and experienced teams
More than 400 highly qualified engineersin Design, Testing, Simulation, Electronics
Excellent combination of experiencedpersonnel and skilled young engineers
Access to the best universities
International Network of technical specialists
Inventions influence strongly the company’s business success and contribute considerably to the protection of Pierburg’s future.Pierburg’s innovation management focuses mainly on inventions.
Development Skills
141 118 137
103
176
119 103 100 86111
49
60
3742 41
3226
2001 2002 2003 2004 2005 2006 2007
145152 236 156
Domestic Patent ApplicationsPatent Applications in foreign countries
* Pierburg complete (incl. PPT), all data refer to 2007
Inventions at Pierburg*: Patent Applications
Pierburg – A Technology Leader
Pierburg GmbH
www.kspg.com © Pierburg 2008 9
Course attendance from 10th to 14th March 2008 at Potsdam, Germany
Certified Innovation Manager Course
The certified innovation manager delivers a practical concept for implementing a learning organization which continuously increases the core knowledge, the organizational learning ability, and adaptability of organizations.
The work and course materials are based on success principles of leading forms in the automotive and mobile telecom sector, mixed with European studies in innovation.Course content in Potsdam, Germany:- Customer Relationship Management- Distributed Team Management- Cross Cultural Aspects- Innovation Process Management- Knowledge ManagementIn the 5 days course participants prepare and elaborate a concept to strategically implement learning organization principles for the own organization.
Participants receive a course attendance certificate.
Participants attending an exam will receive an EU Certificates certification, which is recognized and valid Europe wide.
- Corporate Wide Innovation Management- Human Resources Strategies - e-Challenges in Innovation- Personal Characteristics and Learning Culture
Certified Innovation Manager Course
www.kspg.com © Pierburg 2008 10
Sound education
Professional approach in the daily business, for example at presentations, communication, conflict management
Improvement of personal skills
Announcement effect of the EU Certificates certification to the management, superiors and colleagues
Rising acceptance of the innovation management
More influence on management decisions
Advantages for the Innovation ManagerAdvantages for the Company
Advantages of the Certified Innovation Manager Course
No innovation management: Introduction to innovation management and learning the basic principles
Innovation management already established: Possibility to analyze critically its existing innovation management and optional modification of the system
Networking and learning from others
Improvement of existing processes
Increasing transparency over possibilities and areas of application
Win-win situation for the company and the innovation manager
Certified Innovation Manager Course
www.kspg.com © Pierburg 2008 11
Innovation Management at Pierburg GmbHUnderstanding the initial situation
What factors inhibit the flow of innovations?
1. Missing continuity
2. Missing strategic
orientation
3. Missing methodology
Solution: Introduction of an innovative management at Pierburg GmbH in 2006
Innovation Management at Pierburg GmbH
www.kspg.com © Pierburg 2008 12
Actual-theoretical comparison
Ideas, which are not inventions, are not collected A ranking takes place only in the course of the development meetings No committee for the independent evaluation of innovations High risk of refusal of innovations outside the development departments Collection of information is mostly decentralized Innovations, which are not promptly realized, often sink into oblivion Idea generation by a small number of employees
Actual situation
How can we ensure that technical ideas which are important for the company are recognized and implemented just-in-time? How can information be canalized and evaluated central? How do we provide a central information platform which supports the exchange of product suggestions and helps to generate new ideas? How do we manage it that all employees world-wide cooperate to ensure the company’s business success and the future?How can wee guarantee that ideas, which cannot be realized now do not sink later into oblivion?
Challenges to the innovation management
Innovation Management at Pierburg GmbH
Innovation Management at Pierburg GmbHUnderstanding the initial situation
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Creating an environment for the promotion of innovations
A brief outline of the innovation process
Selection3. Selection
4. Conception
5. Feasibility test
6. Implemen-tation
1. Monitoring
2. Brainstorming
Product
Problem
Invention/idea
Good idea
Concept
Ability to plan
Identify problems
MonitoringS e a r c h f i e l d
Structuring
Assessment of risks
PlanningForceful and fast implementation
CollectingBrain-storming
Innovation Management at Pierburg GmbH
Innovation Management at Pierburg GmbH
www.kspg.com © Pierburg 2008 14
Integration of the innovation management process into the existing system
Sources of ideas
Customer/Market
Employees of the development dept.
Experts
Competitive Environment
etc.
Creating an environment for the promotion of innovations
Innovation Management at Pierburg GmbH
Innovation Management at Pierburg GmbH
Seriesstart-
up
Sample
Preparation of quotation
Definition of project Concept Verification
Disposal
Direct exchange of customer information
Advanced development process
www.kspg.com © Pierburg 2008 15
Sources of ideas
Customer/Market
Employees of the development dept.
Experts
Competitive Environment
etc.
Seriesstart-
up
Sample
Preparation of quotation
Definition of project Concept Verification
Disposal
Direct exchange of customer information
Advanced development process
Integration of the innovation management process into the existing system
Creating an environment for the promotion of innovations
Innovation Management at Pierburg GmbH
Innovation Management at Pierburg GmbH
www.kspg.com © Pierburg 2008 16
Sources of ideas
Customer/Market
Employees of the development dept.
Experts
Competitive Environment
etc.
ALL inno-vatios
collect, examine, evaluate, select the product ideas
Innovation data base: Experts
Innovation Management
Seriesstart-
up
Sample
Preparation of quotation
Definition of project Concept Verification
Disposal
Direct exchange of customer information
Advanced development process
Integration of the innovation management process into the existing system
Creating an environment for the promotion of innovations
Innovation Management at Pierburg GmbH
Innovation Management at Pierburg GmbH
www.kspg.com © Pierburg 2008 17
Selection as main service of the innovation management
The innovation management at Pierburg GmbH is the central department for:
monitoring
supporting the generation
evaluating, selecting and filtering
of inventions and technical product ideas
Central tool of the idea generation process is the innovation data base
Transfer of good ideas to the advanced engineering
Ideas and inventions, which pass successfully the selection process, are transferred from the innovation management to the advanced engineering in a prepared form
Start of the advanced development process by the advanced engineering department
Support of advanced development process by providing market and patent researches, competitor data, etc.
Innovation Management at Pierburg GmbH
Innovation Management at Pierburg GmbH
www.kspg.com © Pierburg 2008 18
IdentifyingMonitoringPatent system / Intellectual PropertyContinuous observation of technology trends
Market Research and Competitive IntelligenceContinuous observation of market trends and customers
Monitoring tools like- Patent monitoring data base
- Light vehicle and engine production forecast data base
- Market Research Newsletter
1. Find freely available solutions
2. Exclude protected solutions
3. Find problems4. Find and protect
solutions5. Collect and protect
ideas
Cooperation between Market Research and Patent System/Intellectual Property
1. Step: Monitoring
Innovation Management at Pierburg GmbH
Innovation Management at Pierburg GmbH
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Innovation workshops
Inventor circle: 4 to 6 engineers form a group and assign the patent attorneys to do a research referring to a special technical topic. Using the results of this research the group tries to find solutions.
Project-oriented and task-related
Processing of inventions and technical product ideas in the innovation data base
12. /13.12.2006: Innovation workshop during which a group of approximately 20 of Pierburg‘s engineers from all business units, central engineering and advanced engineering generated, structured and deepened concrete product ideas
2. Step: Brainstorming
Innovation Management at Pierburg GmbH
Innovation Management at Pierburg GmbH
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The innovation data base is available via intranet and helps collecting, evaluating and selecting inventions and technical product ideas.
Main tool: Innovation data base
Innovation Management at Pierburg GmbH
Innovation Management at Pierburg GmbH
www.kspg.com © Pierburg 2008 21
* Inventions and technical product ideas are here summarized mentioned as “idea”
Idea* contributorClassify ideaPrepare IdeaForward idea
All ideas are
visible
Innovation ManagerClassify idea
Select experts
Innovation managerScan ideas
Propose idea again
Innovation managerPresent idea selection Generate evaluationFormulate decision
Innovation managerMake pre-selektion
Team of expertsEvaluation of idea
Patent Attorneys work on
invention notification
7.1 Implementing 7.3 Declined7.2 Deferred
Implemented
1.0 Draft
5.0 Preliminary decision
6.0 Decision-making
3.0 Coordination of experts
4.0 Evaluation
2.0 Pre-selection
0.1 Classification
Coordi-nation with
develop-ment
division
Coordination with develop-ment division
The process cycle of the innovation data base
Innovation Management at Pierburg GmbH
Innovation Management at Pierburg GmbH
www.kspg.com © Pierburg 2008 22
Pre-selectionBasically the idea contributor is responsible for the distinction between idea and invention.The technical aspect of the innovation is important and represents a first stop criterion. A further pre-selection by patent attorneys will filter innovations without prospect on success at an early stage. Processing and distribution are simplified and shortened.
EvaluationA ranking of the ideas and inventions is executed on basis of the experts’ evaluations in cooperation with the advanced engineering. The evaluation criteria of the experts are: technology, patents and strategy, substitution, customer needs and product life cycle, market, sales, invest and budget, start of production, resources. Reduction of the cycle times of new product developments and advancements by the possibility of the admission of all employees into the process
3. Step: Selection
Innovation Management at Pierburg GmbH
Innovation Management at Pierburg GmbH
www.kspg.com © Pierburg 2008 23
Methodology
Protection of inventions and technical product ideas
Prioritization
Communication / Transparency
Continuity
Strategic Orientation
Advantages of the current innovation management process at Pierburg GmbH
Innovation Management at Pierburg GmbH
Innovation Management at Pierburg GmbH
www.kspg.com © Pierburg 2008 24
Short-term aimWithin the last months an improvement of the innovation data base has been realized: Now the innovation data base is more user-friendly and has a better performance timeBased on the insights of the Certified Innovation Manager Course concerning cross cultural aspects an English version of the innovation data base will be launched in autumn 2008
Long-term aim
The critical analysis of the existing innovation management process at Pierburg GmbH shows that the actual situation at Pierburg GmbH does not fulfill the aspect of a learning organization which continuously increases the core knowledge.
During the course it was possible to prepare and elaborate a concept to strategically implement learning organization principles for the own organization.
The realization of this – until now – theoretical approach should be the long-term aim of the innovation management at Pierburg GmbH.
The innovation management at Pierburg GmbH is mainly dominated by the innovation data base
Summary
Summary and Outlook
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OutlookTheoretical Approach for the Pierburg GmbH (finding of the innovation manager course): Meta-process for a role- and team-based learning organization model
t
Core competence
team
Lear
ning
Verifying
Task solve
Success
Success like 1. Learning curve =
Number of realized projects based on interdepartmental
core competencies2. New developments
Initial situation 0
Product trend 1
Product trend 2
… Product trend n
Summary and Outlook
www.kspg.com © Pierburg 2008 26
All employees
All innovations
Innovation data base Idea pool
Innovation Management
Core competence team
Identification of product trends from the idea pool (and/or other sources) Building core competence teamAssign the patent attorneys to do a patent research as basis for the solution Publishing solutions to offer a leaning possibility Feedback to core competence team Cycle is started repetitively by new product trend
Formation of the team: Distributed team with customer involvementFind solution and learn
CC = Core competence
CC1
CC2 …
OutlookTheoretical Approach for the Pierburg GmbH (finding of the innovation manager course): Initiation of learning core competence teams
Summary and Outlook
www.kspg.com © Pierburg 2008 27
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