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Learning To Innovate
 The 1998 European Conferenceon Innovation and Technology 
 M
UNICH
, G
ERMANY 
18-19 J
UNE
1998
A
 
G
rowthbyacquisitioncontinuestoattract, withever-largerdealsbeingstruck—butmoreandmorecompaniesarerealisingthatthecostsoffindingandsecuringtherightpartnerareoftennotmatchedafterthedealisdone.The“synergies”thatweresupposedtojustifythewholeexercisearemuchharderandtakelongertorealisethananyoneimagined.Meanwhile,goodstaffleaveandcustomerloyaltycanbeshaken.Geographicexpansion,anotheroption,posesitsownchallengesascompaniesstruggletodealwithunfamiliarcul-tures,legislativeregimesandapproachestobusiness.Organic growth, the third option, is most obviously achieved through innovation. However, the typeof innovation commonly exhibited in Europeancompanies—incremental innovation—is notenough to create the kind of growth needed intoday’s accelerating markets. The challenge fortoday’s company in Europe is to achieve strategicbreakthrough innovation, systematically androutinely. The1998EuropeanConferenceonInnovationand Technologyfocusedonthreeofthemostimportantissues in systematic breakthrough innovation:•The link between innovation and company strategy •Innovation as a process•Creating an innovation culture and climate within companies The conference discussions make clear the graveneed for European businesses to rethink theirapproach to innovation. European companieshave focused too much on organising incrementalinnovation into systematic processes. In so doing,they have stifled the strategic innovation that willseparate winners from runners-up in the nextmillennium. Thegoodnewsfromthisconferenceisthatrecov-eryispossible,andthatstep-by-stepapproachesdoexisttomakeithappen.Thecasestudiesincludedhereshowhowsomeoftheworld’smostoutstand-inglyinnovative companies are putting best prac-tices to work. Also included are many usefulinsightswhichreaderscanadaptandimplementintheirowncompaniesimmediately. The conference’s consensus from a range of differ-ent perspectives—including those of industry,academic and consulting organisations—demon-strates three underlying “success factors” for strate-gic innovation. It is based on managed, effectivelearning (including performance measurement).It is driven by the strategic leadership of the organ-isation. And it pervades the entire organisation. With all three of these factors in place, Europeancompanies can look forward to fully exploitingtheir technology as a strategic asset, optimisingtheir resources and organisation, launching win-ning products on time, and generating the growthand profit they seek. ArthurD.Littlesponsoredthe1998EuropeanConferenceonInnovationandTechnology,inassociationwithTheConferenceBoard,tohelpcompaniesgetclosertothesegoals.Oursponsor-shipepitomisesourcontinuingdrivetohelporgan-isationsexpandtheirknowledgecapital,enhancetheircapacityforlearningandchange,anddiscovernewpathstosustainedhighperformance.Onbehalfofmycolleagues,Iwelcomeyoutooursummaryofthepresentationsatthe1998EuropeanConferenceonInnovationandTechnology.Welookforwardtodiscussingthemwithyouinthecontextofyourownbusinessinthenearfuture.
 Richard Granger 
 Vice President, Technology and Innovation Management, Arthur D. Little
“No company ever shrank to greatness.” 
 The message has finally hit home, and companies all overEurope are looking for ways to grow fast enough to satisfy their shareholders and reassure their customers and employees.
© 1998 Arthur D. Little, Inc. All Rights Reserved. Printed in the U.S.A.
 
Learning to Build an Innovation Vision and Strategy
Dr. Ing. Tom Sommerlatte, Chairman, Management Consulting Worldwide,Arthur D. Little:
How to Link Innovation and Corporate Strategy. . . . . . . . . . . . . . . . . . . . . .
2
Charles Backof, Vice President and Director of Research Radio Products Group, Motorola:
Practical Steps to Build Innovation Into Business Strategy. . . . . . . . . . . . . . . . . . . . . . . . .
4
Ronald S. Jonash, Vice President and Director of Technology and Innovation Management,Arthur D. Little:
Moving From Continuous Improvement to Sustainable Innovation— Strategic Implications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Prof. Dr. Alexander Gerybadze, Centre for International Management and Innovation,University of Hohenheim:
International Technology Strategy—Learning to Innovate in the Global Context. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Learning to Manage the Innovation Process
Professor Jean-Philippe Deschamps, IMD:
Setting Up Mechanisms to Manage the Innovation Process. . . . . . . . . . . . . . . . . . . . . . .
10
Bo Wirsén, Vice President, Strategic Business Development, Tetra Pak Group:
Launching a Process for Managing Innovation at Tetra Pak. . . . . . . . . . . . . . . . . . . . . . .
12
Dr. Hans-Georg Junginger, Executive Vice President, Sony Europe:
How Sony Manages the Processes of Forming and Implementing Vision. . . . . . . . . . .
14
Detlef Schacht, Vice President, Manufacturing & Distribution, The Gillette Company:
How to Make the “Concept-to-Launch” Process Succeed. . . . . . . . . . . . . . . . . . . . . . . .
16
Learning to Develop an Innovation Culture
Charles F. Kiefer, Founder and President, Innovation Associates:
The Learning Organisation and Creating a Culture of Innovation. . . . . . . . . . . . . . . . . . .
18
Jacques van Nieuwland, Director, R&D, Philips Consumer Electronics:
Leveraging an Entrepreneurial Culture to Create New Business . . . . . . . . . . . . . . . . . . .
20
Dr. Hans Juergen Rosenkranz, Head of Central Research, Bayer AG:
The Role of Corporate Research in the Innovation Process. . . . . . . . . . . . . . . . . . . . . . . .
22
Richard J. Granger, Vice President, Technology and Innovation Management,Arthur D. Little:
Using Innovation Performance Measures to Drive Learning and Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Learning To Innovate
 The 1998 European Conferenceon Innovation and Technology 
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