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Through Innovation
A synopsis of the European Best Innovator Club annual meeting
The 2008 meeting of the European Best Innovator Club was held at
the Le Mridien Hotel near the GrandPlace in Brussels. For two days,
winners of A.T. Kearneys annual Best Innovator competition met and
debated how to leverage innovation strategies to drive profitable growth.
Presenters addressed key challenges such as the proper role of innovation
leaders, how to use customers energy to unleash innovation and the
impact of global trends. In breakout sessions, participants discussed ways
to anchor innovation strategies, and outlined ideas for fostering break-
through innovation. The following offers a brief summary of the insights
generated by bringing together some of Europes leading innovators.
Strategically managing innovation sistor, transform societies and propel The most
requires first having an innovation economic growth, which in turn fuel
strategy. But what exactly is an collaboration (see figure 1 on page 2). important factor
innovation strategy and how can it But the sustainability of this
be implemented most effectively? cycle is anything but guaranteed. in developing
Presenters and participants of the Countries and regions with policies
2008 European Best Innovator Club that support talent, knowledge trans- an innovation
identified and discussed ways to build fer and increased R&D spending are
such strategies. well positioned to reap the economic strategy is recog-
rewards of globalization. Its not a
coincidence, for example, that the nizing that
United States has flexible immigration
Global Trends and Their policies and that more than one-third innovation is
Implications for Innovation of U.S. Nobel laureates in the sciences
Paul A. Laudicina over the past 15 years were born not an isolated
Managing Officer and Chairman of the outside the country. Europes Lisbon
Board, A.T. Kearney Strategy is another effort to promote
activity, but
Perhaps the most important factor in innovation through the free movement
developing an innovation strategy is of research professionals and signifi-
rather the result
recognizing that innovation is not an
isolated activity. Its both the result
cant increases in R&D spending.
Looking ahead, the success of
and driver of
and driver of growth and collaboration.
Combined, they create a virtuous
this strategy, and others like it, relies
on the educational infrastructure that
growth and
cycle that weve seen play out through- will create tomorrows leaders and collaboration.
out history. Innovative technologies, innovators. Colleges and universities
such as machine power and the tran- in the United States are awash in
private and federal R&D funding of the United States or Europe. This style of isolationism is not a new
and are the envy of the world. In fact, Chinas investment in R&D has phenomenon. In the 1920s and
according to Shanghai Jiao Tong almost doubled in the past seven 1930s, the United States retreated
Universitys rankings from 2007, 37 years and the World Bank shows from international political and
of the top 50 are from the United that while researchers in Asia have economic life when it rejected the
States. However, while only nine long played catch-up by importing League of Nations, imposed the mis-
European universities qualify for the innovation from elsewhere, they are leadingly titled Immigration Act, and
top 50, their students at the second- now increasingly building upon passed the Smoot-Hawley Tariff Act,
ary and primary levels consistently indigenous discoveries. which was enacted despite vehement
outperform their peers in the United opposition by the nations leading
States. Imagine the level of innova- Can Innovation Thrive, Even in economists. These policies are credited
tion if one or more of these regions a Hostile Environment? with the onset of the Great Depression
excelled in all areas of education. The current political climate in the and decades of lost innovation poten-
Still, the locus of innovation United States is characterized by anti- tial. In 2008, the threat of equally
is far from the exclusive province immigration and anti-trade rhetoric. debilitating policies looms large.
$45 GDP 9
$40 8
$35 Population* 7
$30 6
Google
$25 5
Laser
$20 4
Integrated
$15 circuit 3
Transistor
Controlled
loom Airplane
$10 2
Electric Wireless Light bulb
battery telegraph
Steam
$5 engine 1
$0 0
1500 1600 1700 1800 1810 1820 1830 1840 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040
Focus
Where to innovate?
Product or service System
Objective Intensity
Why How much
innovate? to innovate?
Different Types of Leaders for Intensity. How much to innovate? ingproviding resources and top
Different Innovation Strategies Radically or incrementally? management support to the teams,
Characterizing innovation leaders shielding these teams from the tradi-
Boundaries. With whom to inno-
according to their generic traits and tional encroachment by the prevailing
vate? Internally or with partners?
their front- or back-end orientation is administration that would divert them
not sufficient, because innovation Answers to these questions from their objective, and coaching
does not come in a single flavor. determine four broad thrusts of inno- them through the usual ups and
There are different types of innova- vation, with different types of leaders downs of most innovation projects.
tion strategies and each requires a and leadership styles required to New business model or business
different type of leader. The four implement each thrust. Lets discuss system. For steering totally new
dimensions of an innovation strategy each one in turn: business models or system innova-
are shown in figure 2: New product category or service tions, companies need architects,
offering. For creating new products or visionary but pragmatic leaders who
Objective. Why innovate?
services, companies need mentors, are able to assemble internal and
To reinforce a current business
trusting but challenging leaders capa- external providers of system elements
or to create a new one?
ble of setting up and steering venture and make them work smoothly
Focus. Where to innovate? teams and leading them to market. together. Their focus should be on
Products, services or systems? Their focus should be on sponsor- visioning, because innovative new
FIGURE 3: Customer energy can be triggered across the entire value chain (examples)
Procter & Gambles product testing online Consumers voted for their favorite pudding flavor D-Link improves after-sales support by providing
community called Vocalpoint is a place where via text message or on a food companys website. a mutual forum for customers and experts to
moms use and review P&G products. P&G More than 1 million people voted within three and discuss D-Link products. The platform, operated
sends them potential products to try out in their a half months. by users, reduces call center costs.
homes and as part of their everyday lives.
Consumers buy tickets online, print boarding FON distributes a special WLAN router that con- eBay set up a free online community of discus-
passes, check in luggage and board with little verts private broadband connections into access sion forums that offers tips on bidding and auction
interaction with airline personnel. Staff and points that can be used by other Foneros. The strategies. People who visit this community
counter space in airports can be reduced. worldwide network consists of 150,000 hotspots participate twice as often in auctions and spend
and is growing by about 900 spots a day. up to 54 percent more than those who do not visit
the community.
Authors
Kai Engel is a vice president and head of the firms European innovation and R&D management practice. Based in the
Dsseldorf office, he can be reached at kai.engel@atkearney.com.
Joshua Hubbert is a consultant in the firms innovation and R&D management practice. Based in the Berlin office, he can
be reached at joshua.hubbert@atkearney.com.
Reine Wasner is a principal in the firms innovation and R&D management practice. Based in the Zurich office, he can
be reached at reine.wasner@atkearney.com.
Copyright 2008, A.T. Kearney, Inc. All rights reserved. No part of this work may be reproduced in any form
without written permission from the copyright holder. A.T. Kearney is a registered mark of A.T. Kearney, Inc.
A.T. Kearney, Inc. is an equal opportunity employer.
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