Review: The 3 Innovation Controls

In my everyday working life as a consultant I meet managers who do realize that innovation is a must in the global competition. However, they need to overcome obstacles. Some of them initiated a technical innovation and were frustrated when it did not turn into a business success. Others started with a well documented structured gate process and must realize that the creativity of their employees was left behind. In some cases the financial situation limited the innovation budget too much.

Since I have been in similar tricky situations myself as an innovation manager in industry and I met them in client companies, I was also confronted with similar obstacles and learned how to overcome them. After more than twenty years of experience in innovation and R&D I want to share my experience with managers who aim for higher ROIs of innovations. The book is especially suited for medium-sized industrial companies, may they belong to the B2B- or to the B2C-sector. The reader will find explanations of brand new as well as proven methods and tools, followed by best practice- examples. Guiding questions will help him or her to apply the theory to his or her specific environment.

The conclusion of my innovation experience is that strategy, process, and company culture need to gear into each other to make innovations successful. That is why I call these factors "The 3 Innovation Controls". Quality and efficiency can be further increased by innovating together with partners. The book explains my recommendations how to keep the balance between "Open Innovation", the latest hype, and know how-protection. It starts with my understanding of innovation, which comprises creative idea finding and enhancing within a strategical frame, efficient concept and project management, and innovative business models. Creating new customer value and securing the future of the company are the objectives of this type of innovation management.

The first Innovation Control describes how a strategy can be developed on an imaginary and – especially after the crisis - refreshing journey into the future. Trends are analyzed in the context of own success factors with the objective to develop strategical options. The "tension square", considering prospect needs, technology, service, and price, helps to judge their value. The results can be visualized in an "innovation map", which includes at least the perspectives of the company, of prospects, and of partners. Measurable goals and an action plan are recommended to ensure the implementation.

The second Innovation Control describes a process which is open at least for everybody in the organization and perhaps also for external partners from industry, first of all customers, or academia. The innovation process itself is a well known gate process starting with ideas, followed by concepts and projects, which are brought to the market. However, there are some differences to the closed process of the past. Innovative ideas are gathered for strategical impulses. They are not judged immediately by the management. Instead the innovation community discusses, enhances and prioritizes them at first considering the "tension square" mentioned above, replenished by short-term and long-term unique features. Only then the management decides which suggestions pass the first gate and defines goals and responsibilities for the concept stage.

Concepts are often underrated by innovators. In this phase technical ideas can be tested in the lab and market assumptions can be proven. Changes of concepts are less expensive than those of projects. Collaboration with partners can be tested, which might also lead to opportunities of state funding of the project. The most promising concepts pass the second gate to the project stage.