The level of competition in industry has increased due to globalisation, and the threat of climate change and the scarcity of natural resources are increasingly more noticeable.
The balance between people requiring care and those who are able to work places the welfare system under pressure.
Renewal has always been important for economic growth in Norway. We must act now so that Norway shall be among the world's best countries to live in,
and the public sectors. The Government will establish favourable conditions for competitive enterprises throughout Norway and develop a society where we provide for our needs while preserving the resource base for future generations.
while reducing the strain on the environment. We must make a concerted effort. Enterprises in the private and the public sectors must take upon themselves the responsibility for innovation.
The authorities will provide a framework that supports their innovation activities. To innovate means to do something new
Our economic policy contributes to good general conditions and makes it possible for industry to innovate.
and have increased the efforts in research, design, entrepreneurship and simplification. The Government will establish favourable conditions for increased innovation by advancing:
as well as by working to bring about a culture that encourages creativity and entrepreneurship in society. Creative undertakings that develop profitable innovations.
Innovation is an important part of enterprises day-to-day efforts to develop better products for their customers
No undertakings today escape the demand to make continuous improvements. The authorities must provide enterprises with more possibilities to be innovative,
and must provide support and regulations where the market fails to provide the necessary impetus. The Government will continue to develop its innovation policy,
Now we will establish strategy councils for small and medium-sized enterprises and environmental technology.
An innovative and sustainable Norway 7 Innovation and entrepreneurship are important forces in fostering resilient industrial activities throughout our country.
Liv Signe Navarsete, Minister of Transport and Communications 8 We have provided a sound basis for high levels of both wealth creation and welfare.
The Government will establish better conditions for small and medium-sized enterprises. We want more women
young people and elderly people to have opportunities to contribute to innovation at their workplaces
and to start their own enterprises. The quality of the education system must be strengthened in order to ensure access to manpower with sound and relevant competency.
Private research investments must be strengthened in order to safeguard long-term knowledge development in industry. At the same time, the Government will increase research investments in the public sector,
and make it easier for commercialising good business ideas. The public sector is facing major challenges, which cannot be solved merely by increasing resources and personnel.
People must be able to trust solutions from the public sector. The quality of services shall not be dependent on the individual user's financial situation.
The demand for competent personnel provides challenges for the education system. International surveys have shown Norwegian pupils to be less proficient in reading
This demands that we are able to keep up with developments and that we internationalise our knowledge and education system.
The education system must provide development opportunities for all people. We will strengthen the collaboration between education and working life,
Today's pupils and students are the ones who will be creating the job opportunities and values of tomorrow.
By concentrating on entrepreneurship in the education system we will strengthen future generations attitudes and knowledge of entrepreneurship.
and consider various strategies to strengthen this field Submit a white paper to the Storting considering the structure of the education system with a view to future competence needs Advance a mentality encouraging entrepreneurship, among other ways,
by presenting an action plan on entrepreneurship in education, with particular emphasis regarding higher education. Knowledge and competence 11 The establishment of regional research funds will ensure innovative activities throughout the country.
Minister of Local government and Regional Development 12 In order to prevail in an increasingly tough international competition,
we need innovative enterprises and industrial environments throughout Norway. Our enterprises are themselves responsible for utilising the potential that exists in the market,
and many undertakings have demonstrated an excellent capacity to innovate and create value. The authorities are responsible to create conditions that improve the enterprises potential to be innovative.
Creative human beings that share their knowledge and experience, and apply their creativity to reach new and better solutions,
It is becoming increasingly important for Norwegian enterprises to be aware of how to protect their innovations
Knowledge of this kind may prove to be of decisive importance for the enterprises'potential to make a profit on their innovations.
social responsibility and the environment to play a role throughout the work of the administrative apparatus. The Government will:
and the Confederation of Norwegian Business and Industry Innovative undertakings 13 It is the Government's goal that Norwegian enterprises shall grow
In 2004, Norwegian small and medium-sized enterprises employed 57 percent of the Norwegian workforce and constituted 54 percent of total sales.
Altogether 99 percent of all Norwegian enterprises are small-size. In many ways, these enterprises constitute the backbone of Norwegian industry,
thereby contributing to innovation, wealth creation and jobs throughout Norway. It is therefore important to examine the conditions of small and medium-sized enterprises.
The Government wants to see more people being given the opportunity to become entrepreneurs and starting their own businesses.
That is why the Government will improve the conditions for women, as well as younger and older people wishing to become entrepreneurs.
Access to capital is essential for newly established enterprises. The Government wants to see effective public sector measures in the capital market conducive to the implementation of economically profitable projects that would not have been funded by the private market.
Develop an overall industrial strategy for small and medium-sized enterprises Elucidate the need for new measures to support female entrepreneurs,
Service industries have a major significance for Norwegian wealth creation, with internationally leading enterprises in their sectors.
innovation in these areas Follow up investments in the High North strategy and present a national strategy for marine bioprospecting Present an overall strategy for marine industries Follow up the national strategy for the tourism industry Follow up the national strategy for the maritime industries
while at the sam e time reduce the pressure on the environment. Erik Solheim, Minister of the Environment and International Development 18 Research generates new ideas
and solutions that can contribute to increased innovation. It also contributes to converting innovative ideas into concrete solutions.
The research initiatives at companies, universities, colleges, health enterprises and institutes ensure that today's
colleges, health enterprises and institutes participate in international research collaboration and are important entryways for knowledge
and increase investments in research equipment Strengthen regional research activities by allocating NOK 6 billion to regional research funds Submit a white paper on research to the Storting Research and development 19 To improve the quality of healthcare services
Minister of Health and Care Services 20 The Norwegian public sector is considered to be among the best in the world
the public sector constitutes an important part of the Norwegian economy. The Government wants to have a sustainable,
Review incentives for renewal of the public sector Appoint a public committee to propose how to make better conditions for innovation in the social care sector Extend the duration of the demand-driven innovation and business development in the health sector to ten years,
and also extend it to include research-based innovation Involve the users in the development of services through national surveys
Government Administration Services E-mail: publikasjonsbestilling@dss. dep. no Fax:++47 22 24 27 86 The publication is also available online at www. nhd. no Publication number:
and services to suit their own circumstances and look for some tools that may assist them.
173 8. 2. Business plan Development for Innovative products & services...178 9. Marketing of Innovation...
It is meant to encapsulate in one way or another the recognition that in a global economy,
with its societies increasingly dependent on knowledge and communication, progressing efficiency, effectiveness and appropriateness of our products,
The most successful economies of the future will be those which excel at generating and disseminating knowledge and exploiting it commercially (see Innovation into Success, UKSPA, Issue 1,
because small and medium sized enterprises (SMES) are failing to exploit the benefits of technology.
in business and the economy. Since the Green Paper on Innovation in 1995 the European commission has been furthering the development of a European policy on innovation
and growth of innovative enterprises improve key interfaces in the innovation system a society open to innovation The objectives are monitored
The Innobarometer is an opinion poll conducted among enterprises to gather their appreciation of innovation challenges (see http://europa. eu. int/comm/enterprise/innovation/index. htm)
for example the White paper Excellence and Opportunity-a science and innovation policy for the 21st century (see http://www. ost. gov. uk/enterprise/dtiwhite/foreword. html) from 2000 outlines the UK
so that our science and engineering excellence is turned into successful and innovative products and services; and fostering a confident relationship with science"Innosupport:
incubators), and amongst industrial liaison offices in public research organisations to strengthen public-private links. The network of Business Innovation Centres (BIC's) throughout Europe specifically supports SME's in the development of innovative technologies
Innovations in the working place page 7 of 271 Vision & Strategy Leadership Processes Culture Physical Work Environment The recent report for the European commission Innovation Management and the Knowledge
-Driven Economy (2004) has identified Innovation Management Techniques (IMT's) defined as the range of tools,
This website http://www. seeda. co. uk/supports high growth businesses in the South East England region, especially through their network of Enterprise Hubs and Enterprise Gateways.
Innovation-scientific, technical, organisational and managerial-is the key to survival and success in the new knowledge economy.
interacting pattern of influences that make up the innovation environment. Joined-up thinking has never been more important,
and details can be found at http://europa. eu. int/comm/enterprise/innovation/./It states Up to now,
DG Enterprise's actions for innovation policy have been financed from two of the specific programmes of the 6th Framework Programme for Research and development (SP 1: 11,5 millions, SP 2: 348 millions
The aim is to encourage a more innovation-friendly environment throughout the EU, and to stimulate technological innovation and the setting up of innovative technology businesses.
It is envisaged to also include new innovation actions into the successor of the present Multi annual Programme for Enterprises (starting in 2006.
which can be found at www. ost. gov. uk/enterprise/dtiwhite/./The HM Treasury website sets out the UK ten-year investment framework for science and innovation alongside the 2004 Spending Review.
The framework sets out the Government's ambition for UK science and innovation over the next decade, in particular their contribution to economic growth and public services,
and the attributes and funding arrangements of a research system capable of delivering this. Driving innovation policy regionally is the responsibility of the Regional Development Agencies
Innovations in the working place page 9 of 271 Also the Organisation for Economic Co-operation and Development (OECD) monitors and benchmarks Member country technology and innovation policies and assesses their impact
The Technology Audit technique examines concurrently the External and Internal environment of the company and identifies the human resources relation to company's performance.
and opportunities that should be taken under consideration. It also assists the company to identify the more significant actions that it should adopt. 2. 1. 2. Why Perform a Technology Audit?
To generate income (or more income) for the technology driven organisations (e g. technology based enterprises, research centres,
and stimulate the staff Whoever is interested in the organisation, in terms of contracting, funding, VC investment, or acquisition. 2. 1. 3. Where Technology Audit applies
They also wanted recommendations for economies or process improvement in technical support, help desk and staff development areas.
Wright & Hunter recommended a streamlined organisational structure that eliminated the overlaps and improved communication.
Complete and comprehensive analysis and evaluation of the requirements of the firm for its sustainable growth Thorough impartial SWOT analysis Opportunity spotting for new products/new services/new technologies
, David, Getting the Best from Innovation Management Techniques, Centre for Small and Medium Enterprises, Warwick Business school, University of Warwick, United kingdom, 1997 Brown, David, Innovation Management Tools:
SWOT analysis is another tool for auditing an organisation and its environment. It is the first stage of planning
A scan of the internal and external environment is an important part of the strategic planning process.
and those external to the firm can be classified as opportunities (O) and threats (T). Such an analysis of the strategic environment is referred as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in
which it operates. 2. 2. 1 . What is SWOT Analysis?..16 2. 2. 2. When and why to use it?..
and Weaknesses as well as the existed or forthcoming Opportunities and Threats from its external environment. Only when these four critical information elements are elaborated well and known,
the enterprise is able to formulate and implement the strategy leading to its business aims.
and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats).
if the information indicates something that will assist the firm in accomplishing its objectives (a strength or opportunity),
and of examining the Opportunities and Threats you face. Carrying out an analysis using the SWOT framework helps you to focus your activities into areas where you are strong and where the greatest opportunities lie.
By creating a SWOT analysis, you can see all the important factors affecting your business together in one place.
and maximises the potential of the strengths and opportunities while minimising the impact of the weaknesses and threats."
Gathering information on Opportunities and Threats should focus on the external factors. 3. Create a workshop environment
Supporting Innovation in SMES"-2. 2. SWOT Analysis page 18 of 271 4. List Strengths, Weaknesses, Opportunities, Threats in the SWOT Matrix 5. Evaluate listed
Strengths, Weaknesses, Opportunities, and Threats. The SWOT template below includes sample questions, whose answers are inserted into the relevant section of the SWOT grid.
Processes, systems, IT, communications? Cultural, attitudinal, behavioural? Management cover, succession? Weaknesses Disadvantages of proposition? Gaps in capabilities?
Opportunities Market developments? Competitors'vulnerabilities? Industry or lifestyle trends? Technology development and innovation? Global influences?
Volumes, production, economies? Seasonal, weather, fashion influences? Threats Political effects? Legislative effects? Environmental effects? IT developments?
Market demand? New technologies, services, ideas? Vital contracts and partners? Sustaining internal capabilities? Obstacles faced?
Insurmountable weaknesses? Loss of key staff? Sustainable financial backing? Economy-home, abroad? Seasonality, weather effects?""Innosupport:
Supporting Innovation in SMES"-2. 2. SWOT Analysis page 19 of 271 2. 2. 4. Tips for successful SWOT analysis Top Tips But remember 1
The gathering information on Opportunities and Threats should focus on the external factors. Step 3: The manager of the health centre encouraged all the members of staff to freely express their opinions about what they felt to be appropriate.
Willingness of staff to change Good location of the health centre Perception of quality services Weaknesses:
Staff lack of motivation Building was really small Paper work and bureaucracy Cultural differences with users Opportunities:
Low income of users Bad roads Low salaries Lack of budget Paradigms of providers High competition Step 5:
Integration Customer Requirements into Product Design, Productivity Press, Portland Oregon, 1988 Internet sites General address of the University of arizona with a useful file about SWOT analysis http
but we will become far more sensitive to new opportunities and potentials by doing this. SO:
Process analysis provides an opportunity to identify problem points in a workflow understand the factors that affect performance,
which is a tool that systematically illustrates the process flow from the supply side (or input of resources), to the transformation of throughput of product or services, to the output side for final quality verification and release to the customer.
and opportunities for improvements through the use of feedback loops at the organisation and the customer levels. 3. 2. 2. Where
and improve an existing process o To identify process improvement opportunities o To fine-tune processes in an organisational change project Typical application of the system analysis diagram o To overview the sequential production or service processes
, lines of communication, and quality feedback loops o To reach a common understanding using the systems approach o To clarify roles, task responsibilities,
or opportunity 2. Identify and analyse causes or potential change 3. Develop and plan possible solutions
and process improvement opportunities. 3. 2. 6. Example of process analysis application In the example below we will present the method of process analysis in the facilitation of the process of a student's workshop that takes place in a university.
Bad quality of resources have a negative impact on the demand A market analysis is very important to decide what resources should be used
in order to provide the good quality products that the customers want Not taking into consideration the internal feedback of demand to production will result either in the production of more products than are demanded,
http://pespmc1. vub. ac. be/ASC/SYSTEM ANALY. html In this address of the TECHINSIGHTS one can find information about process analysis and process analysis services:
innovation is a translation of the ideas into new products, services or production methods. Our purpose is to show that the activity of an organization can increase its efficiency
Creative person (group) Creative product Creative process Creative environment-adaptors: prefer to do things better; try to improve the present situation without making radical changes,-innovators:
and the relations between the employees of an organisation (for example, creating a relaxed open to communication atmosphere,
the new employees as well as the regular people can be valuable sources of alternative ways of using the technologies of the providers or of the competition, of new ideas;
Creative person (group) Creative product Creative process Creative environment adaptor; innovator can be a concrete one or a psychological, ideal one an extremely complex phenomenon out
how does the management style stimulate the creative environment 4. 1. 3. 1. Adaptors/Innovators As far as the creative person is concerned,
are found in departments as marketing that demand interaction with changing environments (who deal with incertitude;
unlimited communication and increased capacity in generating ideas; the risks are tolerated easily because the chance to find a solution is bigger;
and correspond to objective demands.""Innosupport: Supporting Innovation in SMES"-4. 1. Foundations of generating ideas page 40 of 271 4. 1. 3. 3. Factors generating creativity There are more factors that contribute to the creative process (3,
the observation spirit. skills (the role of heredity and of the environment in forming them);
creative attitude. the influence of the external environment, especially of the social one (the role of social demands in stimulating creation in an epoch, the stage of the project:
4. 1. 3. 4. Creative environment Creativity Barriers A mind functions only when there is an opening.
Creative environment: Managing styles and creativity The traditional classification of the managing styles is: authoritarian style, democratic style, permissive style (laissez-faire."
he/she creates a stimulation environment and cultivates employees'self respect; he/she encourages the employees to seek solutions,
of friendly communication. he/she accepts an almost total freedom that leads to anarchy and disorder;
in order to create a stimulating environment from the creativity's point of view, it is recommended not to use authoritarian domination.
Mini guide for creating a creative environment Ask for each employee's opinion in order to produce a large number of ideas.
Rigid managing structures inhibit communication, which impedes solving problems: be open to communication.""Innosupport: Supporting Innovation in SMES"-4. 1. Foundations of generating ideas page 43 of 271 4. 1. 4. Case study (http://www. bright-side. com/why/case1a. html
) The organisation: it is a public company founded in 1930 with over 28,000 employees worldwide.
lack of openness, honest communication between the departments of the company; conflicts due to the rapid change rhythm and the quarrels between the groups;
distance and lack of communication between the main three groups of the organisation (Inside Sales, Outside Sales and Product Marketing) Phase II:
development of communication strategies to increase honesty, authenticity and cooperation; creating the desire to change by developing, communicating and alignment of the targets and individual, group and organisational tasks."
revision and analysis of the interviews results, presentation of the changing model proposed by Bright side and experimental measures of genuine communication;
In conclusion, an organisational environment that promotes personal initiative and responsibility for the team's/company's goals, development of self confidence and in others, communication and alignment of the individual, group and organisational tasks,
In conclusion, encouraging autonomous thinking, a certain degree of permissiveness, stimulating open communication, using methods to stimulate creativity (brainstorming
The main key to success is communication. Brainstorming is a method that makes possible free communication between people.
Brainstorming is a method that makes people think and be responsible for their decisions. What is Brainstorming?
So we have to attract more customers, we have to increase the quality of the products and so on.
in a brainstorming session the communication will increase, the people will feel free to express any idea.
get new customers for a market. Steps to be followed in organising a brainstorming session: 1. Selection of a facilitator (she/he has to have good communication skills, hold a certain level of authority in the group.
How can you get new customers? He writes down on a board the problem. 3. Set up the rules of the session:
System o Structure Elements (form, colour, material, physical state) Relation between such elements o Function Environment of the system Where to search for analogies?
Definition of the problem Definition of basic characteristics for the search Relations Environment Material Form Identification of analogical systems Discussion of the solutions found Modification Transfer Adaptation Decision
which is linked to the brain creating communication between the brain and the outside object that needs to be moved).
and Cara Meverden Qualitative Reasoning Group, Northwestern university"Innosupport: Supporting Innovation in SMES"-4. 4. Analogical Reasoning page 64 of 271 (Useful article about how to use databases for analogical reasoning:
and to find innovative products and services. Therefore, this method can be combined very usefully with a brainstorming session.
services and structures. 4. 5. 2. How to proceed? We can describe attribute listing by the following main steps:
advantages acquisition, like capital, ground, raw materials and technology do not represent the only determinants of success for an enterprise or an organization.
On the contrary, in the Knowledge Society, the company's future and success are determined henceforth by their ability to turn to their advantage their most precious resource:
In real business environments, the overall aim of a KM strategy is the business value creation.
but also to create the business environment, which will facilitate and support all the KM processes. 4. 6. 1. Where Knowledge management applies?..
When the knowledge capital of the firm although existed, is used not effectively. 4. 6. 2. Why K. M is that important?
Supporting Innovation in SMES"-4. 6. Knowledge management page 72 of 271 Two Main types of Knowledge Knowledge in business environments exists in two main forms, the tacit
and the participation of each employee to the firm cognitive capital is recognized also. KM alignment with the firm strategic aims KM is not an end in itself.
then all the knowledge and information relative to customers must be the start point for the content of the Knowledge management System.
and communication technologies plays a catalytic role in KM especially in process such as knowledge dissemination, sharing.
The strategic aims of a firm are stated in the business plan or in case this is not feasible a SWOT analysis must be done in order these priorities to be defined.
Implement a culture change policy In today's very competitive work environment many employees don't feel safe in their work position and usually‘'hide''knowledge,
etc. 4. 6. 5. Case study Golden West Foods Improved site management methods help meet growing demand Brief Golden West Foods operates the UK warehousing and delivery
In this environment, best practice working procedures are business-critical-information. They must be defined clearly and accurately communicated to employees.
and transport services to identify best practice, which all staff should use. The 2 consulting companies then developed a comprehensive set of Work Instructions to communicate this information to groups of warehousemen, drivers and office staff.
Communication tools: There are many electronic communication tools, which can help build networks within your organisation. For example the chat room software"msn messenger"(free from Microsoft) can be very powerful in allowing people in remote sites to have online conversations.
as well as a KM Graduate Certificate program. http://www. knowledgemedia. org/www. knowledgemedia. org is the scientific platform for research in the field of Knowledge Communication,
but they have to do that in an environment where rules have to be followed. Has any worker on the assembly line the authority to make changes that he thinks will improve its efficiency?
Better stimulation of employees and a proper way to motivate them in terms of performance and com-New organizational culture based on responsibility of each employee, teamwork, good communication
Nurturing an environment that encourage the creativity of employees (blue sky thinking that use toys to stimulate creativity are to be considered-see links) Setting up organizational structures/mechanisms that support,
the procedures they use, the environment they work in. Basically, the success of the quality circles is based on the feeling the employees get
They are regular events Well-known fast channels, Market-like environments. Good engines also allow broad enough perspectives to enter the innovation activity.
a Mexican cement company, regularly uses all its employees and its customers for ideas. These firms understand that corporations cannot have out-of-the-box thinking
This is particularly critical in innovation environments that allow people to move forward with their ideas without too much management interference early on.
experiments and ventures from the innovation pipeline. They involve techniques to assess the value of a pipeline in terms of its growth potential for the company as a whole.
Outof-proportion individual rewards may create a cutthroat environment for competition that over time is detrimental for cultivating the team spirit necessary to drive complex innovations in alignment with business unit goals.
50 ideas in the next 6 months, 5 experimental business concepts in 12 months, 2 ventures ready for commercial launch within 24 months, 10%of innovation
For example, computer-services company EDS has instituted a fellows program to recognize innovative individuals who can serve as mentors for aspiring innovators in the company.
and communication between the person/team that had the idea and an Innovation Committee in the RBD Central Headquarters.
Links Using toys to stimulate creativity http://www. thunderboltthinking. com/performance improvement. htm Creating an Environment for Innovation http://www. strategyletter. com/CD0902/featured article. html Risk
A prototype could be evaluated in order to determine whether a product is being developed according to specification and will be fit for purpose.
prototype or finished product. The actual development process could be evaluated, or the project management. In fact, any aspect of a project could be evaluated.
Often, the opportunity for taking a good idea and developing it further may be lost, or the most innovative elements may be excised, by a lack of efficient evaluation.
and Magic Books was thinking of new ways of attracting customers and coping with the new competition.
whether this investment should be made, Magic Books decided to apply the Decision making Process. The problem was defined already:"
The questionnaire asked customers to answer a few questions regarding their use of the Internet and whether they would find it useful
identifying the kind of services and information provided, etc. Also, a number of web developers were approached
These points included the cost, results from the customer survey (e g. the number of customers with Internet access, the number of customers interested in a Magic Books website, etc..
Based on this information, Magic Books decided that getting a webpage was an investment, which they were willing to risk.
Supporting Innovation in SMES"-5. 3. Benchmarking process page 101 of 271 5. 3. 0 Introduction Companies are generally operating in a competitive environment.
These subjects could be products, services, strategies, processes or operations. Please see the graph below for a breakdown of the different types of benchmarking."
whether the approaches taken by the competition could be adopted feasibly. Benchmarking thus enables organisations to compare
when an organisation benchmarks with partners from different business sectors or areas in order to discover ways in which to improve similar functions.
changing the product line or offering new services, etc. In this type of benchmarking the results often take considerable amount of time to implement. 5. 3. 2. Approaches to benchmarking How There exists many approaches to benchmarking
Initially, it is important to identify what you want to benchmark. The objectives of the benchmarking process will be important
or those which are gaining the company the greatest profits, as these would be areas that should be improved.
and has a good overview of the benchmark process.""Innosupport: Supporting Innovation in SMES"-5. 3. Benchmarking process page 103 of 271 Contact the selected partners
The environment in which your organisation operates may differ from the analysed organisation (s) and thus some of the improvements may in fact not be feasible in the conditions existing at your organisation.
A list was compiled of small companies offering business analysis and consultancy services within the region.
The benchmarking plan provided a list of benchmarks which were to be analysed in the benchmarking exercise.
This list included aspects of productivity, communication with customers, marketing and some internal working processes.
and evaluated as to their suitability and adaptability to their own working procedures and environment. A list of actions was prepared, together with a list of steps necessary in order to implement these actions in CMLS.
communication with clients, bookkeeping, the management of consultancy projects, among others. The initial transitional phase was rather laborious as the staff had to be trained
and profits are maximised. This text is designed to help SMES managers to understand the NPD methods necessary to introduce successful new products. 6. 1. 1
and the gradual increase of the competition has forced all business to adopt New Product Development (NPD) as a necessary and unavoidable business practice.
20%of new industrial products and 18%of new services related products have failed completely as products.
In the future companies will have fewer opportunities to live on past successes."Innosupport: Supporting Innovation in SMES"-6. 1. New product development methods page 109 of 271 Where NDP could be applied?
and R&d directors, manufacturing engineers, start-up directors, development engineers, quality managers, customers'service and support staff,
Product Engineering where product plans are transformed into blueprints or CAD-drawings then into prototypes and ultimately into real parts and components.
"delivering a winning solution (answering"can we beat the competition?";"and applying project and process planning (answering"can we do it?")
Stage At the end of Feasibility & Concept Stage At the end of the Prototype Stage Stage Approved The Programme and the Feasibility & Concept Stage Design Stage Pilot Stage Entry Criteria or Pre-Project Definition
investment requirements Programme breakeven time Proposed customer quotation Updated programme schedule Programme staffing issues Programme risk issues NPD process deviations Final Design Review issues
and proposed resolution Customer satisfaction & issues Cost targets vs. estimates Programme budget Tooling & equipment investment and budget approval Programme breakeven time
and marketing energy-based products to commercial and residential customers. It recruited some of the best people in the industry
"We were surprised initially by the call from ENERGEX-energy retailing is a long way from our usual customers in manufacturing".
This involved structured interviews with both the users and customers of the current product development process.
A review or audit of the existing environment is always a critical starting point for any product development process.
We also found product development processes that had much in common with those of our traditional customers.
and representatives from Finance, Customer service and Technical Services. This team represented all functional groups in the product development environment.
and sold well, to internal and external stakeholders. It's all about getting buyin. Depending on organisation size and complexity
Synchronisation of processes between ENERGEX Technical Services and ENERGEX Retail has improved already teamwork and we now have a product definition that the whole team supports,
said ENERGEX Technical Services Marketing Manager John Wedgewood. Within ENERGEX Retail, Ray Cao's team has embarked now on a formal product portfolio management programme,
These"three dimensional printers"allow designers to quickly create tangible prototypes of their designs, rather than just two-dimensional pictures.
They make excellent visual aids for communicating ideas with co-workers or customers. In addition, prototypes can be used for design testing.
For example, an aerospace engineer might mount a model airfoil in a wind tunnel to measure lift
Designers have utilized always prototypes as RP allows them to be made faster and less expensively. In addition to prototypes, RP techniques can also be used to make tooling (referred to as rapid tooling) and even production-quality parts (rapid manufacturing.
For small production runs and complicated objects, rapid prototyping is often the best manufacturing process available.
Most prototypes require from three to seventy-two hours to build, depending on the size and complexity of the object.
or months required to make a prototype by traditional means such as machining. These dramatic time savings allow manufacturers to bring products to market faster and more cheaply. 6. 2. 1. 1
However, most of the rapid prototyping services are sold to the following industries: design & engineering, R & D, consumer products, electronics, aerospace, automotive, robotics, appliances, telecommunications, orthopaedics, healthcare, dental, foundry, oil & gas, petrochemical, toys
The rapid development of models or prototypes may largely reduce the development cost and the product development cycle.
and time savings of 70 to 90 percent"by incorporating rapid prototyping into their investment casting process.
the development of such models or prototypes is conducted usually by technologists, who have no regard for the cost of such a development.
Therefore, any such development should be conducted upon an initial assessment of the models or prototypes from a combined team of technologists and"Innosupport:
Supporting Innovation in SMES"-6. 2. Rapid prototyping & Product Testing Strategies page 119 of 271 economists.
Usually, the former submit a development proposal and the latter assess it based on the cost of the proposal and the future profit after its materialisation.
Each prototype should provide answers to specific questions. The prototype should be as detailed and complex as necessary to provide the required information.
If there are multiple ideas, then it is necessary that multiple prototypes be developed. Decisions should be made during the development of the prototype
and one should not await its final form. The swifter the prototype development, the swifter the overall development of the new product. 6. 2. 1. 3. How to use rapid prototyping?
At least six different rapid prototyping techniques are commercially available, each with unique strengths. Because RP technologies are being used increasingly in non-prototyping applications,
the techniques are referred often collectively to as solid free-form fabrication, computer automated manufacturing, or layered manufacturing.
Metal prototypes are difficult to make, though this should change in the near future. For metal parts, large production runs,
First, properties of rapid prototypes vary from one coordinate direction to another. For example, prototypes are usually weaker and less accurate in the z (vertical) direction than in the x-y plane.
In addition, part orientation partially determines the amount of time required to build the model. Placing the shortest dimension in the z direction reduces the number of layers
This involves removing the prototype from the machine and detaching any supports. Some photosensitive materials need to be cured fully before use.
Prototypes may also require minor cleaning and surface treatment. Sanding, sealing, and/or painting the model will improve its appearance
and develop a pre-production functional prototype of the boiler ahead of a full scale market launch in March 1998.
Baxi's senior prototype engineer, Jim Astin-Kilgallon, turned to AMSYS, Europe's leading Selective Laser Sintering (SLS) rapid prototyping bureau."
Mr Astin-Kilgallon's key responsibilities involve sourcing rapid prototyping services, project managing new product models
and liaising with design teams on the specification of prototypes. Cost savings A long time enthusiast of rapid prototyping solutions,
"Fully functional prototypes The first components to be rapid prototyped by external RP expert, AMSYS Were filled four Glass Nylon (GFN) sintered hydraulic water connectors,
"It was important to have fully functional prototypes which could withstand laboratory tests, "explained Mr Astin-Kilgallon."
"I was impressed by how well the prototypes performed and in particular how quickly AMSYS were able to produce them-just three days,
"Of particular importance was the fact that the prototypes highlighted some design problems early on in the overall product design cycle.
Once these had been received, it took only a few days to produce the prototypes (as opposed to three weeks using a traditional model maker.
These shortcomings in the majority of companies create opportunities for the minority of companies who are dedicated to continuous product improvement.
store environments can be tested, dog food can be tested, airline service can be tested, equipment prototypes can be tested, etc.
Competitive Advantage The ultimate benefit of product testing is competitive advantage. Product superiority is the surest way to dominate a product category or an industry.
including both internal and external stakeholders. Data will typically be qualitative and based on observation, discussion and structured interview.
It is probable that the validation test is the first opportunity to evaluate all of the component elements of the product together,
Normally, this is carried out against some benchmark of expected performance. Usability issues may be"Innosupport: Supporting Innovation in SMES"-6. 2. Rapid prototyping & Product Testing Strategies page 125 of 271 scored in terms of speed, accuracy or rate of use,
To satisfy this growing demand, Andrzej Szarski founded ASMET in 1989. The company's vision was established at its birth.
and there are facilities to manufacture up to 25.000 units per months at times of peak demand. ASMET employs nearly 90 people.
although there is still a demand for exhaust systems for older cars and we keep many in stock.
Others can be produced on demand with short production runs from as few as 20 pieces.
The common opinion from our customers is that our exhaust systems have a very precise shape and fit easily,
Prototypes of the new design are made and these are tested thoroughly, both for their physical dimensions but also their acoustic properties.
plus large numbers of items requiring inventory, continuously changing demand models, etc it is concluded easily that decision-making in a production context is basically a difficult problem of coping with large numbers and with diversity of factors external or internal to the organisation.
Demand for items can also occur in many ways. Items may be withdrawn from inventory by the thousand
customers will not accept one item unless another is also available. Units could be picked up by a customer,
Some customers are willing to wait for certain types of products while others expect immediate service on demand.
Taking into account all the above considerations there is not a unified model for production strategy as there are many internal and external factors involved in a real production system and most of them uncontrollable.
changes required by new products Incremental Often incremental Incremental or radical Always radical Number of customers Many Many
Little Intermediate Little High Capital versus labour/material intensive Labour Labour & material Material & labour Capital 6. 3. 3. How decisions in a production context
Tactical planning Tactical (medium-range) plans, with a planning horizon from six months to two years into the future, take the basic physical production capacity constraints and projected demand
and ration available resources to meet demand as effectively and as profitable as possible. Even though basic production capacity is fixed essentially by long-range considerations,
Short-range operating schedules take the orders directly from customers, or as generated by the inventory system
and the system is designed for future scalability. Case study 2: Large Engine Manufacturer Revs Up Tracking System Overview A large engine manufacturer was forced to locate
either for direct profit-making (recycling companies) or for indirect profit-making by providing companies with financial benefits in terms of lower production cost or cheaper raw materials from reused items, etc.
It is estimated that the annual economic value of the recycling industry will soon reach over £1 billion in Western europe.
As the amount of economic activity related to recycling will grow immensely and as political and social push will increase for all,
Profit=Revenue Cost"Innosupport: Supporting Innovation in SMES"-6. 4. Recycling Strategies page 140 of 271 Revenues are obtained from:
High value (high demand), undamaged recovered reusable components. Additional processing (cleaning, inspection, upgrading, reassembly, and redistribution) adds to costs.
Equipment investment cost (€) Influenced by need for special (expensive) equipment. Equipment operating cost (€/car
Known technology/capacity to produce energy with economic value. Example: Tires, rubber in hoses. Cannot be disassembled.
businesses can cut costs and increase profits. Cost savings take the form of: Lower waste disposal costs and lower waste treatment costs;
Production efficiency, Profits, Good neighbour image, Product quality and Environmental performance"Innosupport: Supporting Innovation in SMES"-6. 4. Recycling Strategies page 144 of 271 Success Factors 1. Support and/or programme champion at management level. 2. Team with representatives
office and management. 3. Encourage all staff to participate in identifying opportunities and implementing changes in processes. 4. Benchmarking current use of resources through‘input>process>output'analysis. 5. Identify opportunities to‘reduce,
reuse and recycle'resources. 6. Champion changes in processes to achieve identified opportunities. 7. Benchmark changes in resource use to identifying savings in resource purchasing (energy, water, materials),
and reductions in‘waste disposal'.'8. Identify new opportunities to‘reduce, reuse and recycle'resources. 9. Involve the Suppliers:
Suppliers need to be involved as well because of outsourcing in modern companies and one big issue is how to get not only the products from the supplier but also the necessary information. 6. 4. 5. Case study Case study:
-A Handbook, European, Environment Agency Georgia Institute of technology, Systems Realization Laboratory"Innosupport: Supporting Innovation in SMES"-6. 4. Recycling Strategies page 145 of 271 Links http://www. iema. net/,Institute of Environmental Management & Assesment http
but effective IP management means more than just protecting an enterprise's inventions, trademarks, designs, or copyright.
Indeed, a company's portfolio of IP must be viewed as a collection of key assets that add significant value to the enterprise.
Many new products or services embody different types of intellectual property. Forward-looking enterprises face the challenge of extracting the latent value of their IP
and using it effectively in their business strategy. Companies that dedicate time and resources to protecting their intellectual property assets can increase their competitiveness in a variety of ways.
In addition, enterprises, which search systematically for conflicting IP rights of others prior to seeking IP protection,
or closely imitating a company's products or services; avoiding wasteful investment in research and development (R&d)
and marketing creating a corporate identity through a trademark and branding strategy negotiating licensing, franchising or other IP-based contractual agreements increasing the market value of the company acquiring venture capital
and enhancing access to finance obtaining access to new markets"Innosupport: Supporting Innovation in SMES"-7. 1. Intellectual Property Protection tools page 147 of 271 7. 1. Intellectual Property Protection tools Introduction In the following
or services and distinguishes them from the products or services supplied by other businesses. COPYRIGHT Copyright is concerned with new (original) literary musical or artistic works.
The creators of such works automatically acquire rights, which mean that they can control their further use.
and enterprise worldwide by rewarding the owners of trademarks with recognition and financial profit. Trademark protection also hinders the efforts of unfair competitors, such as counterfeiters,
to use similar distinctive signs to market inferior or different products or services. The system enables people with skill
and enterprise to produce and market goods and services in the fairest possible conditions, thereby facilitating international trade.
COPYRIGHT Copyright and its related rights are essential to human creativity by giving creators incentives in the form of recognition and fair economic rewards.
They are reasonably accessible to small and medium-sized enterprises as well as to individual artists and craftsmen,
Supporting Innovation in SMES"-7. 1. Intellectual Property Protection tools page 150 of 271 TRADE MARKS For most small and medium-sized enterprises (SMES), marketing products
or services is a major challenge. A marketing strategy should establish a clear link between your products or services and your SME,
as the producer or provider of such products or services. That is to say, customers should be able to distinguish, at a glance, between your products or services and those of your competitors and associate them with certain desired qualities.
Intellectual property, when efficiently used, is an important tool in creating an image for your business in the minds of your current
and potential customers and in positioning your business in the market. IP rights, combined with other marketing tools (such as advertisements
and other sales promotion activities) are crucial for: Differentiating your products and services and making them easily recognisable Promoting your products
or services and creating a loyal clientele Diversifying your market strategy to various target groups Marketing your products
or services in foreign countries COPYRIGHT is involved your enterprise in the creation, recording, publication, dissemination, distribution or retailing of artistic, musical or literary works?
Does your company have a website, a brochure, a corporate video, or does it advertise in newspapers or on TV?
This helps to ensure a fair return on investment. An effective system of protection also benefits consumers and the public at large,
by promoting fair competition and honest trade practices, encouraging creativity, and promoting more aesthetically attractive products."
Trademarks legislation provides for various classes of goods and services. One may therefore seek registration only for a particular class and the requirements may
i e. the absence from the market of goods and services distinguished by an identical or similar sign.
or services that the mark is registered a one. The letters RTM are used normally in association with the mark to show this.
New Patented Fabric is Key to Enterprise Success Grindi Srl. The story of Grindi Srl. is closely related to the development of the Suberis invention,
Supporting Innovation in SMES"-7. 2. International Regulations page 156 of 271 7. 2. International Regulations Introduction Sooner or later, many small and medium-sized enterprises
or services or licensing/franchising their intellectual property (IP) rights and know-how beyond their national borders.
IP rights, especially patents, may open up new export opportunities. IP rights, especially trademarks and industrial designs, may help you to develop an advantageous market position in export markets.
IP rights enhance the opportunity of winning loyal clientele for your products and services in export markets.
Supporting Innovation in SMES"-7. 2. International Regulations page 158 of 271 Economy and efficiency A cost-effective and timesaving way of applying for patent protection in several different
and services to be protected and an example of the trade mark; 8 copies of the trade mark;
Once signed, the non-disclosing party agrees that they will not disclose any information about your idea for competition purposes
a remuneration provision should be included in the agreement. 7. 3. 4. Case study Recognition of the Importance of Intellectual property by a Start-up Business Manager-Enterprise S Enterprise S is a young start-up company
implements and distributes software management systems in the field of accounting, logistics, process tracking, communication, human resources and CRM.
Enterprise S. also offers web solutions including application provider web hosting, web and application development services.
The owner of Enterprises S. learnt about intellectual property issues by attending seminars and conferences for future company managers.
There he became aware of the value of his intangible assets and of the importance of protecting them.
Large enterprises that have significant financial resources often pursue a strategy of procuring and maintaining a large quantity of patents.
Managing an enterprise's IP assets is more than just acquiring the formal IP rights through the national IP office.
Enterprises willing to extract full value from their know-how and creativity should take adequate steps to develop an IP strategy for their business
This implies including IP considerations when drafting business plans and marketing strategies. A basic IP strategy would include at least the following policies:
These may include the commercialisation of IPPROTECTED products and services; the entering into licensing or franchising agreements;
Enterprises should decide in each case how they may best exploit their IP assets both domestically and internationally.
new market opportunities, monitor activities of competitors, identify possible infringers, and avoid infringing competitors'rights.
Small and medium-sized enterprises (SMES) represent over 90%of enterprises in most countries, worldwide.
and contribute to the growth of the national economy through employment creation, investments and exports.
Despite the importance of SMES for the vitality of the economy and the potential offered by the IP system for enhancing SMES competitiveness,
The linkage between an organisation's overall strategy and its IP strategy will be more significant in the new economy than it was before.
In the new economy one of the preconditions for being able to compete is that an organisation can create,
This does not lie, for example, in heavy investments, which are connected with this concept, but simply in the choice itself.
or services that include the protected subject matter.""Innosupport: Supporting Innovation in SMES"-7. 4. Intellectual Property Management Strategy page 170 of 271 Joint Development License It is common for one technology-based company to enter a joint
Cost effective return on R&d investments by entering into new markets where the IP owner may not be able to access.
The company gives support to enterprises in activities such as project conception (including realisation of prototypes), overall project management,
The competitive environment of the applied research in ICT sectors is highly dynamic and subject to a rapid technological evolution.
or platforms when providing complex systems and original solutions developed ad hoc for its customers. However
Frequently the interests of customers and R&d centres do not converge when it comes to patentable knowledge created within a project.
an investment is required. This is a major hurdle to many SMES which may have a very high potential
The main funding opportunities available, which will be included here, are: Grants Venture capital Banks Stock markets Business angels 8. 1. 1. Determining the Right Financing for You...
174 8. 1. 2. Grants...174 8. 1. 3. Venture capital...175 8. 1. 4. Banks...
176 8. 1. 5. Stock markets...176 8. 1. 6. Business Angels...177"Innosupport: Supporting Innovation in SMES"-8. 1. Financing Innovation in Europe page 174 of 271 8. 1. 1. Determining the Right Financing for You In order to seek the right type of financing,
and are expected to produce a profit. Venture capitalists or informal investors (business angels) may be prepared to finance projects where the initial research has been completed
and you are ready to start developing an initial product or prototype. Banks are generally a better option
and more capital is required. Banks will generally be reluctant to provide financing to a company or project
unless they have guarantees that they will be able to recover their investment in the case of success as well as failure.
Stock markets are only a feasible opportunity for companies which have been trading for some time and which have gained a considerable market value. http://www. cordis. lu/finance/home. html-Cordis (Community Research & development Information Service) provides information on financing projects http://europa. eu
such as the European commission, the European Investment Bank and the European Investment Fund, have generated schemes to support innovation within SMES."
before applying for a grant. http://www. is4profit. com/busadvice/grants/index. htm-Free guide to grants for small businesses 8. 1. 3. Venture capital Venture capital is one of the most commonly used
or innovative projects as venture capital often focuses on knowledge-based or innovative industry sectors. Companies that receive venture capital are perceived generally to have a very good growth prospect,
but lack access to the necessary funds to finance this growth. Nevertheless, venture capital doesn't come for free.
In exchange for the venture capital the investor will expect some kind of compensation for the funds raised on the capital market.
This may take the shape of a partial ownership of the company, seats on the board of directors, preferred shares, royalties or a combination of the above.
The investment is made not with view to an immediate profit, but is made expecting the company to grow
and thus increase the value of the investment.""Innosupport: Supporting Innovation in SMES"-8. 1. Financing Innovation in Europe page 176 of 271 The advantages of venture capital are that no security needs to be given,
so if the investment doesn't bear fruit, the risk is with the investor as much as with the company
and so is the loss. Also, an experienced investor will bring his knowledge to the company
It is therefore necessary to approach various venture capitalists and inquire as to whether this particular investor is suitable for your needs. http://www. evca. com/-The website of the European Private Equity
& Venture capital Association 8. 1. 4. Banks Another option available for financing is to get a loan from a bank.
This is therefore not really an investment on the part of the bank, but rather a loan as we know it from personal banking.
if the company is not making a profit or doesn't have sufficient cash flow,
A further problem with bank loans is that the bank will require security in the event that something goes wrong in the business venture.
When asking for a loan from a bank, a well-developed business plan is important as this may convince the bank to grant funding.
Understandably, a business angel who has worked in a particular sector is attracted to investments related to his/her expertise.
or rejecting a proposed investment. Business angels are unfortunately not merely pools of funding and experience
Supporting Innovation in SMES"-8. 2. Business plan Development for Innovative products & services page 178 of 271 8. 2. Business plan Development for Innovative products & services
Introduction A Business plan is an essential tool for anyone trying to obtain funding for an innovative project,
The Business plan should be well-developed and robust, as this will be your way of presenting the current state of your company
The Business plan will need to convey the strength of your idea and how it can be implemented successfully.
What A Business plan normally covers a considerable amount of time, between 3 to 5 years and should show the various stages of the project during this period of time,
which a Business plan should address: Project outcomes Existing market Target group Competition Business management Financial management Marketing strategy Sales forecast Why and Where Wherever external funding is required for a business or a project,
a Business plan is an essential document. This document is what is presented to a potential source of funding
and it will be based on this plan that the decision to fund or reject funding will be cast. 8. 2. 1. Structure of a Business plan...
179 8. 2. 2. The Elements explained...181 8. 2. 3. Tips...183"Innosupport: Supporting Innovation in SMES"-8. 2. Business plan Development for Innovative products & services page 179 of 271 8. 2. 1. Structure of a Business plan Structure The structure
of a Business plan is not something that would be consistent in any context. According to the purpose of the Business plan different sections may be stressed
or omitted. Nevertheless, there are certain guidelines with regard to the structure of a well-developed Business plan. The figure above shows an example of the structure of a Business plan,
but the structure may vary according to the nature of the project. If you wish to have a look at sample business plans from real businesses you can go to http://www. bplans. com/sp/businessplans. cfm.
This provides an extensive collection of 60 free sample business plans, including executive summaries, market analysis summaries, management summaries, financial plans, etc."
"Innosupport: Supporting Innovation in SMES"-8. 2. Business plan Development for Innovative products & services page 180 of 271"Innosupport:
Supporting Innovation in SMES"-8. 2. Business plan Development for Innovative products & services page 181 of 271 8. 2. 2. The Elements explained Elements that will be required in most Business plans
are listed below: The product/service If one is asking for funding in order to develop or market a particular product
or service then it only makes sense that the product/service in question is presented and explained in enough detail to convey a comprehensive idea of the outcome to be produced.
This section should include a statement describing the innovative aspect of the product or service,
or in other words, how does it differ from existing products/services and what are its advantages and disadvantages in relation to the existing ones.
the Business plan should also introduce the main staff that will be involved in the project. The information on the personnel should include the roles of each involved member of staff
Market and competition First of all, the market should be defined, as well as the target group which the project is aiming at.
what the competition is offering. What gives you the edge? Intellectual property rights Due to the creative aspect of innovative products or services, it is essential to establish proper protection of the idea.
This part is important as it will determine how well the concept is protected, which consequently will have an input in establishing its commercial exploitability.
Supporting Innovation in SMES"-8. 2. Business plan Development for Innovative products & services page 182 of 271 Strategic planning, marketing, financial information and sales forecasts A detailed
plan of the entire project should form part of the Business plan. This plan should illustrate the project from its inception until at least the end of the period for which funding is being requested.
The investor will certainly be interested about how his investment will be spent and also what return may be expected from the presented project.
The most important thing about a Business plan is that it is feasible, because it sells the company
Supporting Innovation in SMES"-8. 2. Business plan Development for Innovative products & services page 183 of 271 8. 2. 3. Tips Below are a number of useful tips
which should be taken into consideration when composing any Business plan: Use clear and simple language the person that will read the Business plan may not be an expert on the area of your project,
so avoid the use of jargon or technical language Keep it precise and short focus on the information that is important to the reader.
Be accurate and realistic you want to transmit to the reader that you know what you are doing Present the Plan professionally the Business plan is an important document
studies/forecasts from market research companies or referring to existing similar products/services, you demonstrate that you have done your research
persuasiveness of the Business plan will in most cases determine whether an application for funding is successful or not.
Business plan writing, budgeting and much more"Innosupport: Supporting Innovation in SMES"-9. 1. Optimising and controlling the acceptance of an Innovative product/service page 184 of 271 9. Marketing of Innovation 9. 1. Optimising
and especially for those trying to market new products or services, marketing of innovation is a very complex process involving a multitude of activities.
and controlling the acceptance of innovative products/services. What is optimizing and controlling the acceptance of an innovative product/service?
Optimizing and controlling the acceptance of an innovative product/service is a marketing activity that requires market research for innovative product/services in order them to be accepted successfully from the market
and the so called method of marketing Mix in order for your business to sell its products and services as successfully as possible,
you will continue to produce needed products and services. Why and where optimizing and controlling the acceptance of an innovative product/service can be used?
The optimization and control of acceptance of innovative products/services should be applied by all types of firms (manufacturing or service.
in order to know what do the customers really need and avoid spending money for products with low demands.
This is where the company starts to spend its marketing budget in order to collect all the data required
Prototype testing and early user testing often reveal unseen market features and new market niches.
Despite careful planning and market research, developers are surprised often to find that users identify benefits in products/services that they failed to spot.
This certainly helps to produce products/services that are useful in the marketplace. The benefits analysis template can be used to track the market response to benefits at various stages of development."
Response Proposed Changes Concept Prototype Full product What business are you in? This question is not always a straightforward as you might expect.
Will all customers want the same from your products? How are distributed products into the marketplace?
as it is known, allows you to build up a comprehensive picture of your market and your potential customers from publicized data.
Libraries Directories (they provide details about the activities of your potential customers) Regular publications Market research reports Electronic Media (CD-ROMS, The Internet,
and measuring the impact of communications. Questionnaires can provide a useful mechanism to collect relevant market research provided they are designed
Keep the questionnaire as short as possible Ask questions that are easy to understand Ask questions that are clearly relevant Avoid leading questions Try to maintain a logical sense Provide an opportunity for comment To obtain a good response from a questionnaire,
Market research is a big investment, so it is a good idea to process the returns in a way that will allow reuse.
that are potential customers and this can become indistinguishable from personal product/process promotion. Attention focuses on the following aspects of contacting companies:
customers, end users, distributors, agents, university specialists, trade journalists, research and technology organizations etc. Organizational buyer Organizational buying is concerned with the purchasing by so-called formal organizations.
Product Defining the characteristics of your product or service to meet the customers'needs. Price:
THE MARKETING MIX The goal is to make decisions that center the four P's on the customers in the target market
Enhancing the learning environment within the workplace is a key element in the facilitation and management of innovation. 9. 2. 1
The term media includes the whole range of modern communications vectors: television, the cinema, video, radio, photography, advertising, newspapers and magazines, recorded music, computer games and the internet.
images and web sites etc. that are carried by these different forms of communication. Media-based training basically utilises some of these media to enhance the learning process,
or plug-ins) Quality of the video camera Services provided by a program outside the browser Quality of the connection The processor speed of the computer Complex and expensive use"Innosupport:
lets people apply what they know about the real world environment to the task of navigating the MBT course;
makes the learning environment more predictable; contains objects and actions corresponding to real-world; give the MBT solution a unified and consistent appearance and organization;
http://training. ugs. com/index. shtml UGS Education Services offers a blend of training solutions for all lifecycle management products,
Shifts will be organized according to demand. There are 200 places available per day. Domains: car manufacturer http://www. bized. ac. uk/virtual/vla/index. htm The Virtual learning Arcade (VLA) is an exciting new section on Biz/ed that provides interactive online
models and simulations for economics and business teachers, lecturers and students. The simulations also have support materials that have been written to enhance their educational value.
Business studies, Economics, Accounting etc. http://www. engines4ed. org/hyperbook/nodes/NODE-130-pg. html Dustin sets up situations that the student will encounter in real life
Selling to Simulated Customers"Innosupport: Supporting Innovation in SMES"-9. 2. Use of Media to support innovation page 196 of 271 http://www. engines4ed. org/hyperbook/nodes/NODE-291
The use of the right metaphors in combination with the appropriate lesson structures can provide for a rich and effective learning environment that can be stimulating the generation of innovative ideas.
The SMES have the opportunity to gain potentially huge advantage over their competitors. Over the next few years the Internet is going to completely change the way we do business.
It is probably the most important development in business and communication in the history of the global economy.
and reach so many potential customers at such a low cost. Advantages: intensify communication ease access to new information stretch the reach of marketing
and sourcing reduce costs and as a result boost productivity and profits e-business should bring new customers grow the business from a local one to a international one In a recent survey,
70%of companies questioned reported enhanced corporate image as a result of the Internet. 57%reported increased efficiency and 50%reported improved quality of service.
From a marketing perspective, the web offers an unparalleled opportunity for SMES. How to take advantage?
It is this immediate feedback of user interaction on the Web site that makes it such a powerful communication method. 9. 3. 2. Presentation on the internet Step 1:
Offering a free report on the subject of your products or services that can be downloaded is a good way to build up a database of qualified prospects.
This company has a loyalty points scheme to encourage customers to come back and therefore create a community around their site.
This allows customers to purchase a bespoke computer which has been built according to their specification. Musicroom. com Internet Music Shop is an online retailer of music CD's. The business
They have succeeded in creating a strong online community around their site with 40%of their orders coming from existing customers.
Your visitors are your customers. Very often they will give you some valuable wisdom, or advise you, completely free of charge,
and to find the needed information on the Internet is a function of how precise the queries are and how effectively one uses search services.
Introduction The competence of enterprises to market new products and/or services, to keep their processes up to date technologically
nevertheless there are many SME enterprises that do not focus enough on these areas. Often they are lacking basic building blocks of Human resources Management.
Systematic training management HR measures to support innovation Guideline for the design of a training concept Identification of training need Innovation fostering enterprise culture Modern teaching
Increasing internationalisation and globalisation of the markets, high competition pressure, Decreasing product life cycles, increasing innovation speed, Growing market segmentation and customer orientation, Increasing demands
on quality, Increasing complexity, dynamics and technology etc. are great challenges for innovation strategies of the enterprises which in turn lead to complex qualification requirements of the employees.
Faster decline of the knowledge and the need for lifelong learning High demands on the specific subject skills but also on the methodical and social competence of the employees communicative and language competence need for more responsibility and self-control etc.
Lacking qualification can turn out to be a bottleneck in the innovation process in an enterprise
when enterprises design and carry out their innovation, mainly from the technological aspect, without preparing their human resources in a suitable way.
A foresighted and systematic human resources development and qualification plan can set the prerequisite for an enterprise to actively carry out its process of changes,
and thus remain at the top of the competition. The human resource becomes a decisive factor in the innovation ability of enterprises. 10.1.3.
How: Systematic training management training concept With the help of the so called training cycle the following is possible:
Introduction page 210 of 271 A training needs assessment (analysing the current work situation) usually is the starting point of any demand-oriented training management.
Examples By means of some examples from real life (SMES only) we wish to show which measures enterprises use in practice to make a professional job of their training and the human resources development.
Here the expectations of the enterprise and the employee from this training measure are made clear before the event.
Tips and Tricks If required, the company Winkelbauer (engineering enterprise with 46 employees) organises events under the title EDP:
Example Database Market place of experience The Gosch Consulting company (Consulting enterprise with 30 employees) has compiled a database with the title Market place of experience.
and opens up new business fields for the enterprise. http://www. innovation-aktuell. de/kv0409. htm Systematic and continuous human resources development safeguards the innovation ability and the compatibility of the enterprise.
professional human resources development is looked often vainly for in medium-sized and small enterprises. In this paper you will learn where cooperation makes sense for an SME,
what an enterprise striving for a joint staff development unit has to do, and what the experience of six SMES in the project Porregio was. http://www. diw. de/deutsch/produkte/publikationen/materialien/docs/papers/diw rn02-01-12. pdf Human
and to identify its constraints and success opportunities. What is a Training Needs Analysis? Training Needs Analysis (TNA) should help you to collect
and existing opportunities leading to your company performance improvement. The approach we are proposing starts with the identification of existing problems (constraints) that may stop,
or opportunities that may allow to increase your company results. 10.2.1. Where in business are undertaken TNAS...
More often than not, staff performance is being challenged within an ever-changing market environment keeping up-to-date with the latest technology advancements, customer demands, new product or process standards, management techniques,
or indeed new government and EU financial and business regulations, health and safety rules etc.
It is true to say that typically businesses will deal with these challenges by engaging support services such as consultants, lawyers,
preventing conflict with staff through communication and documenting the project. You will need to answer questions such as:
Identification of Problems/Opportunities Training should be oriented to solve existing problems or to take advantage of new business opportunities.
It must always be supported by the analysis of work processes and be oriented to the implementation of your company's business strategy.
which in effect breaks down functions from the top manager of the enterprise through successive layers of management to the individual worker who touches the product or service,
Management Marketing, Sales, Financial, Administrative Services, Human resources, Production, Quality assurance, Logistics, etc. In smaller businesses several of these functional areas may be carried out by the same person. 10.2.3.3.
and opportunities C. Identify the main problems and opportunities of your company Identify the main symptoms of existing problems.
List the possible causes of the problem identifying the business process involved. Identify the functional areas affected
Identify also the main opportunities foreseen for your business. Critical opportunities may cause training needs of your employees;
we give you a few examples: Introducing new technologies; Entering a new market; Producing a new product;
and critical opportunities and its implications in your business processes and functional areas. Symptom of the Problem or Critical Opportunity Problem Cause/Opportunity Business Processes Involved Functional Areas Problem:
High rate of returned products from customers Bad quality control Large delays in deliveries to customers Production Quality control Distribution Production Quality Logistics Problem:
Cash-flow problems Bad cash-flow management Delays in invoicing customers Bad negotiation process with suppliers about payments policy Budgeting Invoicing Purchasing Financial Financial Purchasing Opportunity:
Implementing an Enterprise resource planning Software system Better stock management Better warehouse management Larger product rotation (First in, First Out) Accounting Warehousing Sales Financial Logistics Commercial"Innosupport:
Structuring your company‘s Training Needs D. Structuring your company‘s Training Needs You've just finished the structuring of your company's problems and opportunities.
and shift quality manager High rate of returned products from customers Large delays in deliveries to customers Distribution Logistics Delivery time rate 98%Packaging employees Delivery workers Defining
Identifying training needs for Innovation in SMES page 222 of 271 customers after product delivery ing control system Financial Director and Administrative Manager in order to create an invoicing generation and control system.
sales and business. www. businessballs. com/freeonlineresources. htm Department for Environment Food and Rural affairs provides business advice for rural businesses,
page=41 The SME Sector Challenge project was a three-year project aimed to enable the successful adoption, on a pilot basis, of Occupational Standards and NVQ/SVQS by Small and Medium sized Enterprises (SMES.
The project is working with four main audiences, across the built environment, focusing on Contractors, Specialist Subcontractors, Consultants,
http://www. cicsc. org. uk/tvcbec. htm training reference. co. uk provides an overview of some of training providers that offer a TNA services relevant to business:
and business advisors, including TNAS for start-up businesses, rural businesses and social enterprises: www. sircon. co. uk/sirius-software/your focus. asp Trainingzone is one of the UK's most popular site for corporate training professionals with an online network of 50,000 members.
You figure out what customers want on Monday, and on Friday they want something else. And in the week in between, a hungry pack of competitors have taken your idea
It ensures that all the human capital is in step and striving to produce outcomes of value for the organisation.
which every employee has the opportunity to learn and grow in order to improve themselves and their business.
This includes a work environment striving to meet the needs of all employees. Why and where creating a company culture for continuous innovation is applied?
New products and services can be knocked off"or copied. But it's much harder for competitors to duplicate a management system
As a result, the company will have quadrupled its shareholder value in only five years. Example of characteristic 4:
But other VEW managers were allowed to do business with competitors offering the same services if the price was right.
and in return was able to offer services to outside companies as well. Example of characteristic 5:
An innovative business model requires no less than having good jazz scores (operating models and processes), played by good jazz musicians (employees),
processes and services around customer needs and understands and closely monitors the changing needs of its markets successfully manages new ideas
and implementing new ideas ensures that its business processes are aligned to satisfying the needs of its customers has a commitment to access finance from a range of sources to fund innovative activity ensures that individuals employed within the company have the appropriate knowledge
and pursue new business opportunities 10.3.3.1. Characteristics in detail The company culture: is embodied in a clear mission statement,
products and services that enable the business to achieve higher margins and thus profits to re-invest in the business.)
http://www. advantest. com/aac/Careers/culture. html (A useful address for company culture) http://www. 24-7innovation. com/culturepressrelease. pdf (The article
or survive without a network Networks are a growing success and competition factor in industry and generally in society.
This change is accompanied by a worldwide globalisation of industry and puts special demands on enterprises in competition.
The cooperation opportunity Network offers some interesting solutions for the problems to be solved, especially for small and medium enterprises.
In this connection, ability for innovation is an important property for the development of enterprises in competition.
innovation activities are coordinated legally independent enterprises pool their business relations as far as their innovations potentials are concerned stable relations are formed between enterprises
in order to gain competition advantages jointly and in a cooperative way the joint efforts yield innovative products, processes and services 11.3.
exclusion of competition among network participants counteract the original intention-they inhibit innovation rather than promote it The following illustration shows an overview-from the point of view of an individual enterprise
In this case a network basis as wide as possible should be aimed at-partners from the most different systems offer a large number of opportunities for mutual knowledge
About 30 enterprises have united under the umbrella name of ICON (after several stages of analysis and pre-selection processes.
centres Clients Suppliers Competitors Money givers Promotion and coordination systems Protection and Patent offices The innovating enterprise"Innosupport:
Enterprises from the field of plant production (focussing in SMES) formed the ICON network. Step 1:
Network formation by Strategic prerequisites There are strategic links possible between the enterprises Cultural prerequisites Enterprises accepts other enterprise cultures Fundamental prerequisites Enterprises want to reach joint goals"Innosupport:
and the competences existing in the individual enterprises. Within the framework of a development of a network strategy it is worth
while to define individual strategic business units as a basis for further enterprise planning. Step 2:
Strategy development by Definition of strategic business units Strategic positioning of a network on the basis of the competences or the know how available in the enterprises"Innosupport:
Strategy detailing Representatives of the individual enterprises so-called Change Agents-jointly work in inter-enterprise innovation teams on the concrete parts of the strategy of the network,
and when doing so they also introduce changes in the individual enterprises. The frame for innovative ideas is formed by the bundling up of the competences
and the knowledge present in the enterprises supplemented by the cooperation with more enterprises, customers and external know-how carriers.
Strategy detailing by Inter-enterprise innovation teams for product market finding Bundling of competences/know how available in the enterprises Integration of further enterprises/customers/external know-how carriers Introduction
of changes in the individual enterprises"Innosupport: Supporting Innovation in SMES"-11. Innovation networks page 239 of 271 11.6.4. 4th Step:
Market success Successful pilot projects are turned into independent operatively acting companies with simultaneous intensification of the idea of linking in the sense of inter-enterprise project management, a bundling of competence and know how in individual units
This also safeguards a progressive knowhow build up in the network and in the individual enterprises.
Further development by Refinancing the innovation power Increase the know how/technology intensity of the network and the enterprises"Innosupport:
Small and medium enterprises gain strategic spaces by o The improvement of their own innovation behaviour o The increase of know how
and cooperation on an enterprise level the positioning of a country/region as a whole is of outstanding importance.
lobbying, environment processing, know-how transfer, etc.)can be influenced positively by bundling all regionally relevant players.
and carried by enterprises, universities and research institutions other than universities as well as by central regional players An open platform with long-term orientation The strategy driver in the field of innovation policy"Innosupport:
Gmbh (Polytechnic) Campus 02 Fachhochschule Studiengänge der Wirtschaft (Courses for Economy in Campus 02 Polytechnic)" Innosupport:
of innovation in the enterprises Efficient research institutions of international format inside and outside universities Sufficient potential of highly qualified employees Attractive frame conditions for scientists and researchers from home
Dateiid=519 Innovation networks as a source of competitions advantages: this paper shows the importance of innovation networks as a relevant form of organisation for the development but also the production and the sale of innovative products and procedures. http://www. puscher-one. de/publikationen/Innovation in netzwerkenkurzversion
infrastructure and support services directed to innovative entrepreneurs as well as to their supporters. For more information please have a look on the following homepage under the point partners you can find more links to innovation-supporting organisations (e g.
Literature searches page 247 of 271 12.1.0 Introduction In our days a vitally important and significant factor ensuring successful and productive development of an enterprise is its competitiveness.
it is a core factor promoting development and growth in every sphere of life, in particular in the sphere of business and entrepreneurship.
development trends in its line of business, about demand, preferences of its customers everything else and possibly even more since it is important to be always at least one step ahead of others.
As a matter of fact, the dynamic nature of the modern times may be characterised by using the well-known phrase: We can stay where we are
when our enterprise is a success and things are running smoothly, we should not stop at this point.
thus contributing to successful development of the enterprise and expanding the staff's horizons and enriching their knowledge.
Practical application of the component Increased KNOWLEDGE and AWARENESS will give the enterprise: Development Progress Competitiveness A stable market position Revenue...
Internet The rapid development of information and communications technologies (ICT) provides an opportunity to obtain large and varied amounts of information from all over the world in a couple of minutes or even seconds.
which nowadays combines several functions it is a library with an unprecedented volume of literature, space for communication,
or maintaining contacts for communication purposes, by which we can additionally get nonverbal information and feedback.
Communication is an indispensable element. We might have the best offer, but when we are not able to communicate the characteristics of the innovative product or service to potential clients,
Nowadays, in a globalised economy, foreign language and intercultural competencies have become decisive factors. Products, services and information are moving fast between continents
and if we want to be more than a simple passive observer, we need to understand what happens,
therefore we need adequate communication tools, firstly, foreign language skills. 12.2.1. What does it mean to be competent in another language?..
Well, he would also like to see a wider range of languages in use in the international communication.
What they didn't know nor expected was that inventive Spanish customers very soon spelled the name in a different way:
or how it could provoke positive ones with customers in the country of destination. However, this is only one aspect to demonstrate the importance of correct language application in the market.
For example, in Limburg (Belgium) 35%of the companies interviewed admitted that they had missed business opportunities due to lack of foreign language competencies,
and testing but communication is a complex social activity: voice, face, body language, changes to the tone of speaking, listening
Thus, the investment that was necessary to implement the new linguistic skills has paid certainly off
and has opened new sales opportunities on the international market. Business related AND general foreign language competencies are required!
BASF (extract of a statement of Jochen Muskalla, Quality Management Services at the LINGUA Symposium, Saarbrücken, 1994:
European Passenger Services (extract from a statement of Christine Mead, Language Training Manager at the LINGUA Symposium, Saarbrücken, 1994:
understand some of the conceptual issues of intercultural communication and are receptible to cultural nuances,
Identifying these competencies could help a company in identifying key staff that should for example be involved in drawing up a plan for engaging in intercultural communication, champion an intercultural working atmosphere,
Economically and with the integration of the European union large companies as well as small firms operating in a knowledge based economy have to rely increasingly on the interrogation of nondomestic sources of information and knowledge bases,
reflecting the multicultural social environments businesses are situated in. Within a business environment, intercultural competencies are essential wherever two
or more cultures coexist, interact or where products or services produced or offered by a company
or organisation are aimed at a multicultural audience. Company employees: It is important to know the cultural characteristics of your employees,
higher education becomes a decisive factor in competition Technical based professional skills lose against qualifications to adapt activities permanently to economic and technical changes;
And from just 1997 to 1999, flows of foreign investment nearly doubled. The diversification of external trade is another example of globalisation."
Intercultural Competencies and the Innovation Process page 266 of 271 Foreign Investment External Trade (as percentage of World Trade)" Innosupport:
The answer which was given was that international competition in a globalized market makes the implementation of this idea impossible.
when customers internationally boycotted the company because of the company's conflict with Greenpeace. Public opinion becomes more and more critical, the idea of cheap, cheaper,
cheapest still works but more and more customers are asking how products are produced, if production exploits resources and people in a not acceptable way.
Thus, the investment that was necessary to implement the new linguistic skills has paid certainly off
and has opened new sales opportunities on the international market. A further case study on Teaching Intercultural Competence is available at http://www. etweb. fju. edu. tw/culture/lesson/Gateway4. ppt.
There is also a very interesting academic publication called Intercultural Communication in Business Ventures Illustrated by Two Case studies (http://www. tu-freiberg. de/wwwfak6/paper/hinnertext. pdf). The two case studies,
processes and services in relation to the cultural aspect of the markets 4. Assess your marketing and communication strategy against intercultural requirements 5. Identify intercultural training courses/workshops
or language courses that address elements of intercultural competencies 6. Establish discussion/learning circles in your company that discuss
and brainstorm intercultural issues and use‘action learning sets'for example. 7. Hold intercultural‘fun'days that include competitions that test your intercultural knowledge
by way of finding out about and learning from the culture (e g. customs, practices and values) of the customers, clients or business partners you will be working wth
and services by those who are most efficient, thus maximising their availability at the best price. The International monetary fund (IMF) www. imf. org was established in the wake of the WORLD WAR II in 1946 to:
The bank provides loans for investment projects, such as water and sanitation, natural resource management education and health.
United nations Conference on Trade and Development (UNCTAD) www. unctad. org is a permanent intergovernmental body of the UN that aims to maximise the trade investment
and development opportunities of developing economies and to assist their efforts to integrate into the world economy The World Economic Forum (WEF) www. weforum. org is a private not-for-profit foundation that operates conferences for business, political
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