Innovation Management

“The management of the economic application of ideas, technology or processes in new ways to gain a competitive advantage”

Universidad Nacional Bogotá, Colombia Date: 16th March 2012

Agenda

0. Course Kick-Off 1. The Concept of Innovation Management 2. Corporate Assessment 3. Business Environment Analysis 4. Innovation Strategy 5. Innovation Process and Organization 6. Innovation Fields 7. Innovation Transfer and Controlling

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Phases of Innovation Management
Innovation Process and Organization
Requirementsfor managing change, process management, organization and culture, knowledge management

Innovation Strategy
Strategic planning: vision, strategy, strategic goals, programs and measures; technology and product strategy

Business Environment Analysis
Environmental and technology trend analysis , delphi analysis , scenario technique , customer profiling

How do we organize the process efficiently

?

Where do we want to go : what is our strategic direction

?

What are our future opportunities ?

Corporate Assessment: What is our business position today? • Analysis of the „as-is“ situation

• Strengths and weaknesses of the
Innovation Fields
Product profiling, product structure development, searching for product solutions, product specification

Which products contribute most to customer requirementsand our profitability ?
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Corporate Innovation Transfer and product program and technologies Assessment Controlling • Potential to innovate with the Analysis of the „as-is“ situation, Transfer into the development actual competences and resources business segmentation, competitive organization, implementationcontrolling, position in terms of market and technology surveilance of the company
How do we implement control our decisions and ?
technology

What is our business position today?
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Objectives of the lesson
The objective of the lesson is to introduce an approach to get an overview of the initial business situation of a company, to determine the business position and to finally evaluate the potential of the company for innovation. To analyze the strengths and weaknesses of the company we have to answer the questions as follows: On which market is the company active? Are there customers with similar needs and requirements? How is the business situation of the company and which are the most successful business areas? How is the position of the products and technologies? What are the strengths and weaknesses in the business functions of the company? What are the core competences of the company as a basis for the achievements of the company?
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5 .Chances for companies • New consumer markets • Consumer segments with • high growth Consumer demand not or insufficient covered Market • New materials • New manufacturing Business Opportunities • • processes New technical standards New devices to be supplied Competition • New competitors • Weaknesses and business • • gaps of competitors Substitutional products New business models Products/ Technologies IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.

Corporate Assessment: Questions Where to compete ? Analysis of the arena of competition Market Segmentation Business Structure Market With whom to compete ? Corporate Assessment Analysis of the position compared to competition Portfolio Analysis Benchmarking Products/ Technologies Competition How to compete ? Analysis of the corporate resources Core Competences IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.6 .

7 3 2.2 Business Structure Identification of homogenous customer groups 2 2. Corporate Assessment Milestones 1 2.3 Portfolio Analysis Overview of the initial situation of the business areas Overview of the business position of the company in terms of products and technologies Overview of the business position in terms of business functions Determination of distinctive competences © Industrieberatung Consultores Empresariales 2.2.4 Benchmarking 4 2.5 Core Competences 5 IM Uni Nacional/2012 March .1 Market Segmentation Results 1 2.

8 .2 Business Structure Identification of homogenous customer groups 2 2.1 Market Segmentation Results 1 2.Corporate Assessment Milestones 1 2.4 Benchmarking 4 2.3 Portfolio Analysis 3 2.5 Core Competences 5 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.

Objectives of Market Segmentation Market segmentation is the process of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Key segmentation variables should allow to lead to different variants of the product or should have a high importance for the buying decision of the customers.9 . Market segmentation is useful to determine attractive customers and to concentrate the development on the specific requirements of these customer. Relevant variables are derived from the basic requirements and the applications: Function or problem solution: what need is being satisfied? Types of customer: who is being served? Technology of the product: how customer functions are being served? IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. For the creation of customer segments it is necessary to identify key segmentation variables with the goal to cluster customer with equal requirements.

Key segmentation variables Manufacturer of Electric Pumps Macro Segmentation Vacuum Technique Process Market Vacuum Application Special Chemistry Pharmacy Polymere X Y Z Big Customers Medium Customers Small Customers MicroSegmentation Price-driven Quality-driven „Segment is already served “ Service-driven „Segment is not served although CRM is a strength of the company!“ © Industrieberatung Consultores Empresariales 2.10 IM Uni Nacional/2012 March .

Market Segmentation 1(4) Example: Pump Market Characteristica: • All customer groups • No market segmentation Customer Groups (Diameter corresponds to market size) IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.11 .

Market Segmentation 2(4) Example: Pump Market Characteristica: • All customer groups • Market segmentation with segmentation criteria: application Customer Groups (Diameter corresponds to market size) IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.12 .

3% 5.7% Customer Groups (Diameter corresponds to market size) Market Segment (Percentage: share of the entire market) Market Segment 2 2.2% 19.6% Market Segment 1 Market Segment 7 Market Segment 6 Example: Pump Market Characteristica: • All customer groups • Market segmentation with several segmentation criteria 8.8% 12.3% 12.4% Market Segment 4 28.Market Segmentation 3(4) 4.6% Market Segment 5 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.13 .0% Market Segment 8 Market Segment 3 Market Segment 9 6.

6% Market Segment 1 Market Segment 7 Market Segment 6 Example: Market Segm.0% Market Segment 8 Market Segment 3 Market Segment 9 6.8% 12. variation xyz • Quality oriented IM Uni Nacional/2012 March 8.2% 19.14 .4% Market Segment 4 28.7% Customer Groups (Diameter corresponds to market size) Market Segment (Percentage: share of the entire market) Market Segment 2 2. mediumsized sales • FRVP.Market Segmentation 4(4) 4. chemistry & polymere • Mainly big companies from Europe. 2 Characteristica: • Process market: spec.3% 5.3% 12.6% Market Segment 5 © Industrieberatung Consultores Empresariales 2.

Public Flexibilität Bestände Areas Building Areas Building Effizienz Niedrige Homes 0 1 2 3 4 Marktauftritt Erarbeiten von Argumentations Qualität der Resultate Sinn vermitteln Standard design durch klare Hilfen für den Vertrieb Zusammenarbeit mit Fertigung Betreuung der Flexibilität Kundenbasis Zusammenarbeit Präzises Beauftragen der mit Technik/ Erschließung von Qualität der Resultate Zusammenarbeit mit Design Ziele vereinbaren orientation und Produktentwicklung Entwicklung Vertriebskanälen Vertrieb/Marketing Zielidentifikation herstellen Arbeitsmethodik/ 1 Zusammenarbeit mit Proaktives Verkaufen Eingehen von Partnerschaften etc.Market segmentation: Illumination Products Spain Auftragsabwicklung/ Logistik Fertigung Italy United Kingdom Marketing/ Liefertreue Produktentwicklung Lieferzeit France Beherrschung Marketing/ der Schlüsseltechnologien Produktplanung Lieferfähigkeit Marketing/Vertrieb Anstreben von Kooperationen Germany Optimale Fertigungstiefe Lieferqualität Beurteilung Application -0 + im Vergleich zur Konkurrenz Beurteilung Erläuterung Application Explanation im Vergleich zur Konkurrenz Beurteilung Erläuterung Application Explanation -0 + ++ im Vergleich zur Konkurrenz 0 1 2 3 4 1 2 3 ++ Explanation 4 ++ Erläuterung Explanation 4 Erläuterung Erläuterung Beurteilung -0 + Application 0 1 2 3 im Vergleich zur Konkurrenz Beurteilung Application -0 + im Vergleich zur Konkurrenz 0 Problem Solution Verhalten und Führung Lieferflexibilität Problem Solution Präzise Marktsegmentierung Entwicklungszeit Beurteilung -0 + Application im 0 Vergleich 1 zur Konkurrenz 2 3 4 Effizienz/Herstellungskosten Informationsbereitschaft Termintreue Bestimmen des Kundennutzens Engagement für Produkte -0 + ++ 1 Ind.15 . Spec. Private Functi. Light is focused Fighting wothoutSpirit dazzling Schulung und Unterstützung der Einhalten der Prognosen Herstellkosten Gesamt Vertriebskanäle Präzise Marktsegmentierung Innovationskraft Marktnähe Termintreue 0 1 2 Explanation ++ 3 4 Erläuterung ++Explanation Aufstellen und Durchsetzen Etc. Nachvollziehbarkeit Resultate Light is focused besprechen Auftragsabwicklung Systematik und Transparenz im Formulieren und Durchsetzen Zusammenarbeit mit Innovationen Gesamt Identifikation mit Produkten Akquisitionsgeschehen Light is scattered geschickter Make or Buy Vertrieb/Marketing und Kundenanliegen Erschließung von zusätzlichen Konzepte etc. Geschäftsplanes Präziseeines Ermittlung der Gesamt Marktanforderungen Zusammenarbeit mit Technik/ Produktentwicklung Gesamt Zusammenarbeit mit Auftragsabwicklung Gesamt Gesamt Application IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. Zusammenarbeit mit Fertigung Vertriebskanälen Einsatzfreude.

16 .Definition Market Segmentation … is the process of splitting customers. or potential customers in a market into different groups or segments. within which customers share a similar level of interest in the same or comparable set of needs… and … a successful segmentation is • substantial: has to be large and profitable enough • accessible: it must be possible to reach it efficiently • differential: it must respond differently to a different strategy • actionable: the company must have a product for this segment • measurable: size and purchasing power can be measured IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.

2 Business Structure 2 2.4 Benchmarking 4 2.1 Market Segmentation Results 1 2.5 Core Competences 5 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.3 Portfolio Analysis Overview of the initial situation of the business areas 3 2.17 .Corporate Assessment Milestones 1 2.

Benchmarking within the peer group of business segments identifying strengths and weaknesses. sales growth and profitability. The market segmentation allows to identity and analyze the areas of actual business activities of the company at a more fine-grained level answering the question: „Where to compete“? Applying the tool „Product-Market-Matrix“ it is possible to structure the business and to identify need for actions taking the steps as follows: Determination of business segments with regard to the market segmentation. Description of each business segment taking into account turnover.18 .Objectives of Business Structuring Business structuring is the process of analyzing the as-is situation of the company on the basis of the results of the market segmentation. IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. Deriving consequences and measures to improve the situation.

a. [%] Profit RoS [%] Market Share PG 3 SP 2 SP 3 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.g.19 .: Sales [Mio €] Sales Growth p.Product-Market-Matrix Market segments taking into account variables of: • Function or problem solution • Types of customer or distributions channels • Technology of the product MS: Market Segment PG: Product Group SP: Service Package Market Segments BA: Business Area MBA: Main Business Area MS 5 MS 6 MS 1 PG 1 MS 2 MS 3 MS 4 MBA 1 Cross-sales Product BA Offer of a Systen MBA 3 Products/Services PG 2 MBA 2 SP 1 Description of a Business Area e.

20 .Europe america america PG: Product Group SP: Service Package Products/Services PG 1 PG 2 SP 1 PG 3 SP 2 SP3 Europe UK PG 1 PG 2 SP 1 PG 3 SP 2 SP 3 PG 1 PG 2 SP 1 PG 3 SP 2 SP 3 Italy France Germany Products/Services Customer Segment X Y Z Products/Services IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.South.Levels of Market Segmentation Geograhical Region Asia North.

3 26.2 12.5 0.3 12.2 MBA1 4.5 8.8 4.2 0 3 2 0. € Sales < 1 Mio.5 3 2 3 2 3 0 1 1 2 2 0 1 0.5 0 2 1 2.6 1 1 1 1 2 1 2 2 0 0 0 1 27.4 1 0.7 3 3 2 1 3 3 3 2 1 2 0 0 13.4 1.3 11.0 0 0 0 Products/Services PG 2 SP 1 PG 3 SP 2 SP 3 Return on Sales [RoS] 3 : Margin > 10% 2 : 10% >= Margin > 5% 1 : 5% >= Margin > 1% Sales Growth [Sg] 3 : Grow higher than market (+1%) 2 : Grow similar than market 1 : Grow lower than market Sales [S. in Mio €] Sales > 10 Mio.5 1 0.3 0 1 1 3.1 3 3 2 0.5 4.2 1.21 .3 0 0.9 2 0.6 6.Description of the business S RoS Sg PG 1 Market Segments MS 1 MS 2 MS 3 MS 4 MS 5 MS 6 54. € Sales < 10 Mio.0 2 0. € IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.8 9.3 0.4 0.8 3 2.6 1 2 2 6.6 0.4 6.3 0 2 0 2 1 1 3 MBA3 0 0 2 0 1 11.7 0.7 MBA2 1.0 0.

Example for Main Business Areas Civil Passenger and Cargo Transport IM Uni Nacional/2012 March Military Transport Aircrafts Military Air Systems Space Systems 2.22 © Industrieberatung Consultores Empresariales .

Example for Main Business Areas Tractor IM Uni Nacional/2012 March Harvester Forage Harvester © Industrieberatung Consultores Empresariales 2.23 .

Employees: 1.Manufacturing plants: 6 .Business Structure: Example Business Structure Company: GEA Air Treatment Divsion .by integrating of differnt devices and components .on the basis of a standardized control network IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. € . Germany .Headquarters: Herne.Distribution: in 21 European countries Products: Air conditioning equipment and systems Mission: GEA offers .600 .Sales: 225 Mio.technical and commercial optimized systems solutions of climatization .24 .

GEA: Segmentation 1(3) Products Product groups and services Geographic Regions Country clusters Market Segments Customer segments/ Project classes IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.25 .

26 .GEA: Segmentation 2(3) Products Product groups and services Geographic Regions Country clusters Market Segments Customer segments/ Project classes IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.

27 .GEA: Segmentation 3(3) The market segmentation is based on the type of customer with ten identified customer groups and further segmentation taking into account the main success factor for the buying decision: • Price-driven: Price of the system with main function „Cooling“ • Quality-driven: Quality and life-cycle-costs of the system IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.

GEA: Business Structure 1(3) Geographic regions Product Groups IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.28 .

000 10.29 .GEA: Business Structure 2(3) Geographic regions Sales 2003 in T€ Sales 0-100 Gross Margin S.000-10.000 5.000-5.000- High Sales Growth Low Sales Growth No Growth Decrease of Sales Strong Decrease of Sales Average Gross Margin in %: [(Sales – Transfer Price)/ Sales x 100] Description of GEA Air Treatment business with regard to the business segments: • Sales in 2003 • Sales development in the last 3 years • Gross margin IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. Growth 100-1.000 Product Groups 1.

GEA: Business Structure 3(3) Market Segments Product Groups IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.30 .

4 Benchmarking 4 2.3 Portfolio Analysis Overview of the business position of the company in terms of products and technologies 3 2.Corporate Assessment Milestones 1 2.5 Core Competences 5 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.2 Business Structure 2 2.1 Market Segmentation Results 1 2.31 .

Objectives of Portfolio Analysis The basic idea is to represent and analyze the businesses of the company within a simple graphic framework that can be used to assist the corporate assessment in four areas: Market Portfolio: Examines the position of a business area in relation to the two primary sources of profitability: market attractiveness and competitive strengths.32 . IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. Success Factor Portfolio: To the extent that positioning with regard to success factors can assist setting performance targets for individual businesses and products. Technology Portfolio: Examines the technology position of the company in relation to the two primary sources of technology push innovations: technology attractiveness and technological strengths.

market growth. Decide which businesses should receive more or less investment. IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. market size. Effort The drawing up is superficial with the help of EXCEL-sheets (value benefit analysis). industry profitability. More efforts are necessary in the survey of the data and the aggregation of the information especially the market size and the industry profitability. Develop growth strategies for adding new products and businesses to the portfolio. competitive position and return on sales.33 .Market Portfolio (McKinsey/GE Matrix) Objective Analyze the as-is position of products and business areas. The company internal factor competitive position is computed on the basis of the following variables e. Approach The two axes consider the familiar sources of superior profitability of a company: The company external factor market attractiveness with the sub factors e. market share.g.g. whilst at the same time deciding when products and businesses should no longer be retained.

34 IM Uni Nacional/2012 March .Market Portfolio: Layout Market Attractiveness 3 high Market Size. Industry Profitability ? B + + ? High market priority Invest for growth. Return on Sales 1 low C 0 0 low 1 medium 2 high 3 Competitive Strengths © Industrieberatung Consultores Empresariales 2. Competitive Position. expansion Medium market priority Analyse to determine whether business can be grown or will degenerate Low market priority Divest or support for growth business 2 medium A Market Share. Market Growth.

qualification of management and staff) Wide range of goods to sell (sales mix) Relative brand strength Market share Customer loyalty Relative cost position (cost structure compared with competitors) Distribution strength Record of technological or other innovation Access to financial and other investment resources IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.Market Portfolio: Definition of feasible factors Market Attractiveness Market Size Market growth Market profitability Stability of the market Barriers of market entry for new provider Pricing trends Competitive intensity / rivalry Number of customers Overall risk of returns in the industry Opportunity to differentiate/substitute products and services Segmentation Distribution structure (e.g. retail. direct. production potential.35 . wholesale) Competitive Strengths Strength of assets and competencies (R&D potential. quality level.

3 = Growth (>5% p.) 1 = Stagnation 0 = Decline 40% 0 0 0 0 0 0 0 Intensity of Competition 3 = Few small competitors 2 = Few equivalent competitors.Market Portfolio: Calculation Sheet 1(2) MBA 1 Weighting 30% 0 0 0 0 0 0 0 Rating: VxW Market Attractiveness Criteria Market Size 3 = High 2 = Medium 1 = Small 0 = Very small MBA 2 Rating: VxW MBA 3 Rating: VxW MBA 4 Rating: VxW MBA 5 Rating: VxW MBA 6 Rating: VxW MBA 7 Rating: VxW Market Growth p.36 .a.a.) 2 = Growth (>2% p. 1 = Many strong competitors 0 = Ruinous 30% 0 0 0 0 0 0 0 Market Attractiveness 100% 0 0 0 0 0 0 0 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.a.

Market Portfolio: Calculation Sheet 2(2)
Competitive Strengths
Criteria Market Share
3 = High (one of the top 5 supplier) 2 = Signifikant 1 = Moderate 0 = Mediocre Weighting 20% 0 0 0 0 0 0 0

MBA 1
Rating: VxW

MBA 2
Rating: VxW

MBA 3
Rating: VxW

MBA 4
Rating: VxW

MBA 5
Rating: VxW

MBA 6
Rating: VxW

MBA 7
Rating: VxW

Sales Development
3 = Above market growth 2 = Slightly above market growth 1 = Just as market 0 = Losing market share

45% 0 0 0 0 0 0 0

Profitability
3 = High (RoS > 10%) 2 = Medium (6% < RoS <= 10%) 1 = Low (3% < RoS <= 6%) 0 = Ruinous (RoS <= 3%)

35% 0 0 0 0 0 0 0

Competitive Strengths

100%

0

0

0

0

0

0

0

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Market Portfolio: Example
Market Attractiveness 3
high Market Size, Market Growth, Industry Profitability

?
B

+

The size of the bubble represents the relative volume of turnover of the product program

2
medium

A 1
low Market Share, Competitive Position, Return on Sales

C

0

0

low

1

medium

2

high

3

Competitive Strengths
© Industrieberatung Consultores Empresariales 2.38

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Portfolio Analysis: Example
Business Structure Company: GEA Air Treatment Divsion - Headquarters: Herne, Germany - Employees: 1.600 - Sales: 225 Mio. € - Manufacturing plants: 6 - Distribution: in 21 European countries Products: Air conditioning equipment and systems Mission: GEA offers - technical and commercial optimized systems solutions of climatization - by integrating of differnt devices and components - on the basis of a standardized control network
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GEA: Segmentation
Products
Product groups and services

Geographic Regions
Country clusters

Market Segments
Customer segments/ Project classes

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Example GEA Air Treatment: Products IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.41 .

Example GEA Air Treatment: Products IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.42 .

Example GEA Air Treatment: Products Market Attractiveness 3 Market size Market development Intensity of competition + Strong Position Systems Solutions Chillers ? Products Product groups and services high 2 Air Conditioning/ Splits Filter AHU VEP DSC The size of the bubble represents the relative volume of turnover in 2003 medium 1 Controls low – Weak Position 0 low 1 medium 2 DSI Market share Development of turnover Profitability 0 ? high 3 Competitiveness © Industrieberatung Consultores Empresariales 2.43 IM Uni Nacional/2012 March .

44 .Example GEA Air Treatment: Market Segment The market segmentation is based on the type of customer with ten identified customer groups and further segmentation taking into account the main success factor for the buying decision: • Price-driven: Price of the system with main function „Cooling“ • Quality-driven: Quality and life-cycle-costs of the system IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.

45 IM Uni Nacional/2012 March .Example GEA Air Treatment: Market Segment Market Attractiveness 3 Market size new buildings Market development + Strong Position Industrial: Office Buildings ? Market Segments Customer segments/ Project classes high Small commercial sector 2 Public Buildings medium 1 Industrial: Production Halls Health Care The size of the bubble represents the relative volume of turnover in 2003 low – Weak Position 0 low 1 medium 2 high Market Share 0 ? 3 Competitiveness © Industrieberatung Consultores Empresariales 2.

IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. Examine individual technologies or technology categories and develop strategies.46 . The technology position consider the technology competence of the company taking into account the factors strength of the resources and strengths in the implementation. Effort The drawing up is superficial with the help of EXCEL-sheets (value benefit analysis). Approach The first axes of the portfolio considers the technology attractiveness taking into account the position of the technology S-curve and the entry barriers.Technology Portfolio Objective Analyze the technological position of products. More efforts are necessary in the survey of the data and the aggregation of the information. Give indications on the reallocation of resources.

Technology Portfolio: Layout Position on the S-curve. Entry Barriers Technology Attractiveness 3 high ? + + ? High technology priority Invest for growth. expansion 2 medium Medium technology priority Analyse to determine whether technology can be grown or will degenerate Low technology priority Divest or support for growth business - 1 low 0 0 low Strengths of the Resources Strengths in Implementation 1 medium 2 high 3 Technology Position © Industrieberatung Consultores Empresariales 2.47 IM Uni Nacional/2012 March .

Product Life Cycle Innovation Cycle Sales Product Portfolio Decay Rest Introduction 5-10% Growth 10-25% Mature 50-60% Time Introduction Growth Mature Decline Optimized mix of products and services according to the innovation cycle is a characteristic of successful companies. 1995 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.48 . Quelle: Moore.

49 . Quelle: Moore. 1995 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. Innovations spread through society in a S-curve. Finally. growth slows down when the market is saturated and/or newer technology comes along Time Introduction Growth Mature Decline A company’s innovation strategy depends on the position of its innovation within the S-Curve. as the early adopters select the technology first. Initially people are slow to begin to use the technology but once it is accepted growth is rapid. until a technology or innovation is common.Technology S-Curve: Approach Innovation Cycle Rate of technological progress Approach The S-curve is used to describe how new technology is adapted. followed by the majority.

g. including metallic (e..TiO2). DNA) or inorganic (e. etc.Pace Setter Technology: example Nano Wires A nanowire is a wire of dimensions of the order of a nanometer (10−9 meters).50 .). The nanowires could be used.g. Au). in the near future. At these scales.. Using nanotechnology.Sensors .. to link tiny components into extremely small circuits. Si. Mo6S9-xIx). Many different types of nanowires exist. Ni. Molecular nanowires are composed of repeating molecular units either organic (e. quantum mechanical effects are important — hence such wires are also known as "quantum wires".g. and insulating (e.g. Possible applications are: . semiconducting (e. InP. such components could be created out of chemical compounds.Flat screens .Efficient lamps Quelle: Technology Review 3/2004 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.g. SiO2. Pt. GaN.

However.51 . Siemens IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. The screen has hundreds or thousands of dots that are charged or not charged which make them reflect or not reflect light to form letters.“ Quelle: Sony. The screen also serves as a monitor for the interface of some camera controls. TFT consumes more electricity than DSTN. Nokia. The TFT screen is brighter and has superior colour and contrast to the DSTN. Some LCD screens have an electroluminescent panel behind them and are termed "backlit. Different types exist: TFT (Thin Film Transistor) and DSTN (Double Super Twisted Nemantic) are the most common. LCD screens are made by sealing a liquid compound between two pieces of glass and/or a filter. characters and numbers.Key Technology: example LCD Screen Liquid Crystal Display screen found on many digital cameras that allows previewing or reviewing of images.

Quelle: Sony. Phosphor screens using multiple beams of electrons have allowed CRTs to display millions of colors. computers. monitors.Basis Technology: example Cathode Ray Tube A cathode ray tube or CRT is a specialized vacuum tube in which images are produced when an electron beam strikes a phosphorescent surface. video cameras. Nokia. Television sets. Siemens IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. video game machines. The first patent of a television set is from 1907 but the introduction into the market was in 1928. Braun introduced a CRT with a fluorescent screen.52 . oscilloscopes and radar displays all contain cathode-ray tubes. automated teller machines. The first cathode ray tube scanning device was invented by the German scientist Karl Ferdinand Braun in 1897. known as the cathode ray oscilloscope.

Portfolio: Definition of feasible factors Technology Attractiveness Potential of further development Broadness of application Efforts and risks Rate of spread Benefit from Synergies Threat through substitute technologies Technology Position R&D-Resources Know-How Mastery of the technology Rate of realization and implementation of the technology Supplementary technologies Support through corporate strategy IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.Techn.53 .

5 1 0.6 3 0.7 Product B Value 2 VxW 1. human resources 2. Entry Barriers1 3 2 0 Pace Setter Technology Cumulated R&D Expenses 3=High 2=Medium 1=Low 0=Not existing 30 2 0. manufacturing processes 2) Strengths of resources: knowhow.4 Product C Value 2 VxW 1. long-term experiences. Strengths in Implementation 3=Fastest compare to competition 2=Same rate as competition 1=Slow 0=Frequent failure 50 3 1.9 1 0.3 Product A Value 1 VxW 0.Technology Portfolio: Calculation Sheet Technology Attractiveness Criteria Weighting (%) Product A Value 1 VxW 0.0 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.7 Weighting (%) 1./ spread Key T.0 3.5 Product B Value 3 VxW 2.5 3 1.5 1 VxW 1.5 Commentary: 1) Entry barriers in terms of knowhow.54 .0 1.3 Key Technology 100 Technology Position Criteria 1. assets. Strengths of the Resources2 3=High 2=Medium 1=Low 0=Not existing 50 0.3 Product C Value 1.5 100 2. 1=Basis Technology 0=Mature Basis Technology 70 Customer Value 0 2 1 Basis Technology 2.4 1. Position on the S-Curve 3=New Key Technology 2=Pace Setter T.

Technology Portfolio: Layout Position on the S-Curve.55 IM Uni Nacional/2012 March . Entry Barriers Technology Attractiveness 3 high ? + B The size of the bubble represents the relative volume of turnover of the product program 2 medium C 1 low A 0 0 low Strengths of the Resources Strengths in Implementation 1 medium 2 high 3 Technology Position © Industrieberatung Consultores Empresariales 2.

Entry Barriers + Strong Position Technology Attractiveness 3 ? Controls (GEAMatrix) high 2 Air Conditioning/ Splits Chillers VEP Filter AHU medium 1 Systems Solutions DSC The size of the bubble represents the relative volume of turnover in 2003 low – Weak Position 0 low 1 medium 2 high DSI Strengths of the Resources Strengths in Implementation 0 ? 3 Technology Position © Industrieberatung Consultores Empresariales 2.Example: GEA Air Treatment Position on the S-Curve.56 IM Uni Nacional/2012 March .

57 . Effort Develop a questionnaire and ask first the management of the company. customers). The success factor portfolio clarifies the main points of differentiation: Critical factors for business success Analysis and evaluation of the business position Benchmarking with the competition Approach Describe the relevant factors for business success and divide between company specific factors and product specific factors. Evaluate the own position with regard to each factor in comparison with the competition. Take into account an internal view and an external view (e. The drawing up is superficial with the help of EXCEL-sheets. Determine the importance/relevance for business success. More efforts are necessary with an external survey. IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.g.Success Factor Portfolio Objective Success factors define key areas of performance that are essential for the company to accomplish its mission.

Wrong emphasis on factors which are no more important. Overvalued Success Factors 1 low 0 0 Weaknesses IM Uni Nacional/2012 March The company has a strong position in areas which are of secondary importance for the market/customers. The allocation of resources is not optimal. 1 Company´s Position 2 3 4 Strengths © Industrieberatung Consultores Empresariales 2. Strong need for action. high 3 Importance / Relevance Balanced Success Factors 2 The position of the company (strengths and weaknesses) is according the importance and relevance of the factor.Success Factor Portfolio: Layout 4 Critical Success Factors Factors with high importance and relevance for the market/ customers but the company has a weak position.58 .

Definition of Success Factors Company Specific Success Factors Competences Innovative products Innov. technologies Range of products Skills of the sales people Systems capabilities Logistics Image Financial support Sales locations Spare parts Market communication Sales organization Service organization Commercial Product Specific Success Factors Technical Product quality Product development Life span Frame size Emissions Installation Maintenance Design Documentation Ease of handling Ease of operation Price Life-cyle costs Financing. IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. which explains a major part of the observable differences in perceived value of the offer. Leasing Service Resources Organization A success factor is regarded as a skill or a resource.59 .

Success Factor Questionnaire 1(2) IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.60 .

61 .Success Factor Questionnaire 2(2) IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.

Success Factor Portfolio: Internal View 5 Critical successfactors Internal View Base: 35 questionnaires 2 7 10 11 5 20 6 19 15 4 8 1 9 3 High Importance / Relevance 4 16 17 18 14 13 12 3 2 Balanced success factors Overvalued successfactors 1 -Weaknesses -/+ + ++ Strengths 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Range of the Scope of Supply Innovative Products Advisory Skills (Pre-Sales-Support) Offer of Complete Products Customer Support (Post-Sales-Support) Flexibility / Agility Logistics Market Communication Image Price Product Quality Economic Life Time Operating costs Overall size of the product for system integration Ease of Integration Ease of Maintenance Emission Design Operating convenience Documentation Low Company´s Position IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.62 .

63 .Success Factor Portfolio: Internal/External View 5 Critical successfactors Internal View Base: 35 questionnaires 2 7 10 11 5 20 6 19 10 15 4 8 6 9 3 11 5 3 High External View Base: 53 questionnaires Importance / Relevance 4 3 1 15 19 16 9 17 12 7 20 13 16 14 2 1 17 4 14 12 18 18 8 13 2 Balanced success factors Overvalued successfactors 1 -Weaknesses -/+ + ++ Strengths 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Range of the Scope of Supply Innovative Products Advisory Skills (Pre-Sales-Support) Offer of Complete Products Customer Support (Post-Sales-Support) Flexibility / Agility Logistics Market Communication Image Price Product Quality Economic Life Time Operating costs Overall size of the product for system integration Ease of Integration Ease of Maintenance Emission Design Operating convenience Documentation Low Company´s Position IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.

2 Business Structure 2 2.5 Core Competences Overview of the business position in terms of business functions 5 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.Corporate Assessment Milestones 1 2.4 Benchmarking 4 2.1 Market Segmentation Results 1 2.64 .3 Portfolio Analysis 3 2.

65 . Benchmarking opens organizations to new methods. is usually carried out by individual companies and cover three levels of applications: Benchmarking with direct competitors on company level Benchmarking with direct competitors on process level Benchmarking with business units of the same company (peer group) on process level IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. Benchmarking.Objectives of Benchmarking Benchmarking is a process in which organizations evaluate various aspects of their processes in relation to best practice. originally invented as a formal process by Rank Xerox. ideas and tools to improve their effectiveness. usually within their own sector. It helps crack through resistance to change by demonstrating other methods of solving problems than the one currently employed. This then allows organizations to develop plans on how to adopt such best practice. usually with the aim of increasing some aspect of performance.

Casting Industry in Germany IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.66 .

Intensity of competition No.Benchmarking on company level 1(2) Market Attractiveness 3 Market Growth.67 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales . 0 0 1 medium low low The size of the bubble represents the volume of turnover of the company concerned - Market Share. 1 Companies which operate on markets with low attractiveness and possess at the same time low competitiveness have longterm no chance of survival. of analysed companies = 60 ? + Big companies tend to have a better positioning than smaller companies. Sales Growth 2 high 3 Competitive Strengths 2. 2 medium high Successful companies operate on attractive markets and possess high competitiveness.

Sales Growth 1 medium 2 high 3 Competitive Strengths 2.Benchmarking on company level 2(2) Market Attractiveness 3 Market Growth.68 IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales . of analysed companies = 60 ? + Development/construction in totally in-house responsibility Development/Construction only little in-house or totally outsourced No naming The size of the bubble represents the volume of turnover of the company concerned Successful companies conduct development and construction in totally in-house responsibility low medium high 2 1 0 0 low Market Share. Intensity of competition No.

competitive advantage. Porter.69 .Benchmarking on process level Identifying areas of processes Firm Infrastructure Support Activities Human Resource Management Technology Development Procurement Inbound Logistics Operations Marketing & Sales Outbound Logistic Service Primary Activities Source: M.E. 1985 Quelle: Porter IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.

Evaluation of process areas 1(2) Process Area -0 Corporate Culture and Leadership Evaluation in comparison to main competitor Product Planning Evaluation in comparison to main competitor 1 o 2 + 3 ++ 4 Operations Marketing and Sales -.70 .Development o Product Mastering key x Operations manufacturing process technologies Order Processing and Vertical range of manufacture Adherence to delivery dates Logistic x … IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.

Fighting Spirit Schulung und Unterstützung der Einhalten der Prognosen Herstellkosten Gesamt Vertriebskanäle Präzise Marktsegmentierung Innovationskraft Aufstellen und Durchsetzen Geschäftsplanes Präziseeines Ermittlung der Gesamt Marktanforderungen Etc. Nachvollziehbarkeit Resultate besprechen Auftragsabwicklung Systematik und Transparenz im Formulieren und Durchsetzen Zusammenarbeit mit Innovationen Gesamt Identifikation mit Produkten Akquisitionsgeschehen geschickter Make or Buy Vertrieb/Marketing und Kundenanliegen Erschließung von zusätzlichen Konzepte etc.Evaluation of process areas 2(2) Auftragsabwicklung/ Order Processing & Logistic Logistik Fertigung Operations Marketing/ Product Development Liefertreue Produktentwicklung Lieferzeit Product Marketing/ Planning Beherrschung der Schlüsseltechnologien Produktplanung Lieferfähigkeit Marketing/Vertrieb Anstreben Kooperationen Marketing & von Sales Optimale Fertigungstiefe Beurteilung Evaluation -0 + im Vergleich zur Konkurrenz Beurteilung Erläuterung Evaluation Explanation im Vergleich zur Konkurrenz Beurteilung Erläuterung Evaluation Explanation -0 + ++ im Vergleich zur Konkurrenz 0 1 2 3 4 1 2 3 ++ Explanation 4 ++ Erläuterung Explanation 4 Erläuterung Erläuterung Ermittlung der Stärken und Schwächen mit dem folgenden Arbeitsbögen: Corporate Culture and Leadership Marketing and Sales Product Planning Product Development Operations Order Processing and Logistic Beurteilung -0 + Evaluation 0 1 2 3 im Vergleich zur Konkurrenz Beurteilung 0 Evaluation Explanation -0 + ++ Lieferqualität im Vergleich zur Konkurrenz Marktnähe 0 1 2 3 4 Termintreue Evaluation Verhalten und Führung Beurteilung Erläuterung Lieferflexibilität -0 + ++Explanation Corporate Culture and Präzise Marktsegmentierung Entwicklungszeit im Konkurrenz in comparison to main 0 Vergleich 1 zur 2 competitor 3 4 Effizienz/Herstellungskosten Leadership Termintreue Informationsbereitschaft Bestimmen des Kundennutzens Engagement für Produkte 0 + ++ 1-Flexibilität Niedrige Bestände 0 1 2 3 4 Marktauftritt Effizienz Erarbeiten von Argumentations Qualität der Resultate Sinn vermitteln durch klare Hilfen für den Vertrieb Zusammenarbeit mit Fertigung Betreuung der Flexibilität Kundenbasis Zusammenarbeit Präzises Beauftragen der mit Technik/ Erschließung von Qualität der Resultate Zusammenarbeit mit Ziele vereinbaren und Produktentwicklung Entwicklung Vertriebskanälen Vertrieb/Marketing Zielidentifikation herstellen Arbeitsmethodik/ 1 Zusammenarbeit mit Proaktives Verkaufen Eingehen von Partnerschaften etc.71 Gesamt Zusammenarbeit mit Auftragsabwicklung Gesamt Gesamt IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales . Zusammenarbeit mit Fertigung Vertriebskanälen Einsatzfreude. Zusammenarbeit mit Technik/ Produktentwicklung Key: -O + ++ essentially worse-rated worse-rated comparable rated superior rated essentially superior rated (than the main competitor) 2.

Fighting Spirit Goal orientation Unité de Doctrine (team spirit) Openess Balance of goals and resources Awareness for quality Etc.Weaknesses and Strengths 1(6) Corporate Culture and Leadership Evaluation in comparison to main competitor -0 Transparent information policy by the management Management by objectives To evaluate results and monitor deviations from the objectives Identification with products und customer concerns Adventurous.72 Total IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales . 1 0 2 + 3 ++ 4 Explanation Determination Ermittlung der of Stärken weaknesses und Schwächen and mit strengths dem on folgenden the basis Arbeitsbögen: of criteria as follows Corporate Culture and Leadership Marketing and Sales Product Planning Product Development Operations Order Processing and Logistic Key: -O + ++ essentially worse-rated worse-rated comparable rated superior rated essentially superior rated (than the main competitor) 2.

Weaknesses and Strengths 2(6) Marketing and Sales -0 Dedication for the products Market image Care for customers Development of sales channels Ambitious selling Systematic and transparence in customer acquisition process Development of new sales channels To keep the sales goals Precise market segmenation Precise determination of the market requirements Co-operation between marketing and product planning Co-operation between sales and order processing 1 Evaluation in comparison to main competitor 0 2 + 3 ++ 4 Explanation Determination Ermittlung der of Stärken weaknesses und Schwächen and mit strengths dem on folgenden the basis Arbeitsbögen: of criteria as follows Corporate Culture and Leadership Marketing and Sales Product Planning Product Development Operations Order Processing and Logistic Key: -O + ++ essentially worse-rated worse-rated comparable rated superior rated essentially superior rated (than the main competitor) 2.73 Total IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales .

Weaknesses and Strengths 3(6) Product Planning -0 Precise market segmentation Determination of the product advantages for the customers Support of the sales process with documentation and arguments for the sales staff Precise specification for the product planning To enter into co-operations with R&D partners Consideration of Make or Buyconcepts Training and support of the sales partners Drafting and implementation of business plans Etc.74 Total IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales . 1 Evaluation in comparison to main competitor 0 2 + 3 ++ 4 Explanation Determination Ermittlung der of Stärken weaknesses und Schwächen and mit strengths dem on folgenden the basis Arbeitsbögen: of criteria as follows Corporate Culture and Leadership Marketing and Sales Product Planning Product Development Operations Order Processing and Logistic Key: -O + ++ essentially worse-rated worse-rated comparable rated superior rated essentially superior rated (than the main competitor) 2.

75 Total IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales .Weaknesses and Strengths 4(6) Product Development -0 To aim for co-operations Customer focused development Time-to-market Adherence to schedules and delivery dates R&D efficiency Flexibility Quality gates Systematic development approach and auditability Co-operation with sales and marketing Co-operation with manufacturing Ease of manufacturing Innovative products 1 Evaluation in comparison to main competitor 0 2 + 3 ++ 4 Explanation Determination Ermittlung der of Stärken weaknesses und Schwächen and mit strengths dem on folgenden the basis Arbeitsbögen: of criteria as follows Corporate Culture and Leadership Marketing and Sales Product Planning Product Development Operations Order Processing and Logistic Key: -O + ++ essentially worse-rated worse-rated comparable rated superior rated essentially superior rated (than the main competitor) 2.

Weaknesses and Strengths 5(6) Operations -0 Mastering key manufacturing process technologies Vertical range of manufacture Adherence to delivery dates Efficiency/production cost Flexibility Quality of production output Co-operation with product plannung and product development Co-operation with order processing Process innovations etc.76 Total IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales . 1 Evaluation in comparison to main competitor 0 2 + 3 ++ 4 Explanation Determination Ermittlung der of Stärken weaknesses und Schwächen and mit strengths dem on folgenden the basis Arbeitsbögen: of criteria as follows Corporate Culture and Leadership Marketing and Sales Product Planning Product Development Operations Order Processing and Logistic Key: -O + ++ essentially worse-rated worse-rated comparable rated superior rated essentially superior rated (than the main competitor) 2.

Weaknesses and Strengths 6(6) Order Processing and Logistic Evaluation in comparison to main competitor -0 Adherence to delivery dates Time of delivery Ability to supply Quality of delivery Flexibility of delivery Information policy to customers Low stocks Co-operation with operations Co-operation with marketing and sales etc.77 Total IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales . 1 0 2 + 3 ++ 4 Explanation Determination Ermittlung der of Stärken weaknesses und Schwächen and mit strengths dem on folgenden the basis Arbeitsbögen: of criteria as follows Corporate Culture and Leadership Marketing and Sales Product Planning Product Development Operations Order Processing and Logistic Key: -O + ++ essentially worse-rated worse-rated comparable rated superior rated essentially superior rated (than the main competitor) 2.

78 5 IM Uni Nacional/2012 March .Corporate Assessment Milestones 1 2.4 Benchmarking 4 2.1 Market Segmentation Results 1 2.5 Core Competences Determination of distinctive competences © Industrieberatung Consultores Empresariales 2.3 Portfolio Analysis 3 2.2 Business Structure 2 2.

Sources of advantage are to be found in management's ability to consolidate corporate-wide technologies and production skills into competencies that empower individual businesses to adapt quickly to changing circumstances. IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. They wrote that a core competency is "an area of specialized expertise that is the result of harmonizing complex streams of technology and work activity. They should be a result of the corporate strategy. Prahalad and Gary Hamel in a 1990 Harvard Business Review article.“ CC are built through a process of continuous improvement and enhancement (compare: Kaizen). the competition. The core competence model (CC) is an inside-out model that starts the assessment process by thinking about the core strengths of an organization.Objectives of Core Competences Analysis The first four steps of this chapter consider an outside-in approach places the market.K. and the customer at the starting point of the corporate assessment. The concept of CC was introduced by C.79 .

IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.80 . integrated and applied knowledge. a close relationships with customers and suppliers or culture such as employee dedication… and … core competences • give potential access to a wide variety of markets: they must be capable of developing new products and services. skills and attitudes including technical/technological matter. In many industries. inherent.Definition of Core Competences … as CC can be seen any combination of specific. reliable processes. • give significant contribution to the competitiveness of the company: basis for the perceived benefits of the end product and • should be difficult for competitors to imitate. such competencies are likely to be unique.

CC are basis for a big part of the performance of the company. complex knowledge based on long-term learning processes.Characteristics of Core Competences Potential access to a wide variety of markets CC can be leveraged widely to many products and markets. Difficult for competitors to imitate It is hard for competitors to imitate Significant contribution to the competitiveness because there are: patents or trade mark rights. technological and personnel resources IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. CC provide customer benefits and a big contribution to the differentiation of the own products and services in comparison to the competitors.81 . high entry barriers based on financial.

82 . know how and knowledge in all functions of the value added chain. Quelle: Porter IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.Examples of Core Competences 1(3) Firm Infrastructure HR Management Technology Development Procurement Customer relationship program International design centers Decentralized stores International service centers Management information system Personnel development program Supplier Integration Inbound Logistics Operations Marketing & Sales Outbound Logistic Service Core competences are distinctive internal skills.

83 .Examples of Core Competences 2(3) Personnel Firm Infrastructure HR Management Technology Development Procurement Inbound Logistic Operations Marketing & Sales Outbound Logistic Service Technicians Worker Market requirements Laboratory CAD Tools Equipment Information Know how Planning and manufacturing of high precise machine tools for niche markets Core competences are a combination of complementary skills and knowledge bases embedded in a group or team applying the appropriate equipment/tools. Quelle: Porter IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.

Examples of Core Competences 3(3) Honda Honda's expertise is in engines. Volvo Volvo’s core competency is safety. Honda was able to exploit the core competency to develop a variety of quality products from lawn mowers and snow blowers to trucks and automobiles. With more than 14 million internal combustion engines built each year. Honda is the largest engine-maker in the world. The Volvo Safety Concept Car is a vision of the developments in safety that car buyers can enjoy in the future. IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.84 . Their core competency is about their ability to source and design high protection components and to research and respond to market demands concerning safety.

idea management and implementing and controlling innovations. Business structuring is the process of analyzing the as-is situation of the company on the basis of the results of the market segmentation answering the question: „Where to compete“? The main tool for structuring the business is the „Product-MarketMatrix“ with the opportunity to develop business areas and to identify strengths and weaknesses in each business area. Market segmentation is the process of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. developing an innovation strategy. The goal is to determine attractive customers and to concentrate the development on the specific requirements of these customer.85 . implementing an innovation process and organization.Lessons learned: Corporate Assessment 1(3) The six steps approach of innovation management considers the topics as follows: assessing the strengths and weaknesses of the company. identifying future opportunities. IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2.

The goal of the market portfolio is to analyze the as-is position of products and business areas and therefore to prepare the decision which businesses should receive more or less investment. The S-Curve is used to describe how new technology is adapted. key techn. The success factor portfolio clarifies the main points of differentiation to the competition. and basis techn.86 . Success factors define key areas of performance that are essential for the company to accomplish its mission. A company’s innovation strategy depends on the position of its innovation within the S-Curve.Lessons learned: Corporate Assessment 2(3) The basic idea of the portfolio analysis to represent and analyze the businesses of the company within a simple graphic framework that can be used to assist the corporate assessment .. to examine individual technologies or technology categories and to give indications on the reallocation of resources. IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. The goal of the technology portfolio is to analyze the technological position of products. According to the rate of technological progress there are pace setter techn.

IM Uni Nacional/2012 March © Industrieberatung Consultores Empresariales 2. The core competence model (CC) is an inside-out model that starts the assessment process by thinking about the core strengths of an organization. and what that standard is. Core competences are distinctive internal skills. "The way we do it is the best because this is the way we've always done it. who sets the standard. Core competences give potential access to a wide variety of markets.Lessons learned: Corporate Assessment 3(3) Benchmarking is the process of determining who is the very best. know how and knowledge in all functions of the value added chain. benchmarking with direct competitors on process level and benchmarking with business units of the same company (peer group) on process level. Benchmarking is a powerful management tool because it overcomes "paradigm blindness“. It is a process in which organizations evaluate various aspects of their processes in relation to best practice covering three levels of applications: benchmarking with direct competitors on company level. Paradigm Blindness (frog perspective) can be summed up as the mode of thinking.87 . give significant contribution to the competitiveness of the company and are difficult for competitors to imitate.

com www.consultores-co. Industrial.com . Bruszies Ing. 316 528 9458 Thank you for your attention! info@consultores-co. MBA Phone 800 5315 Cel.Christian J.