Synopsis: Entrepreneurship:

We face major challenges in a world that is constantly changing. the level of competition in

and the threat of climate change and the scarcity of natural resources are increasingly more noticeable. the balance between people requiring care

and innovation. renewal has always been important for economic growth in norway We must act now

the government will establish favourable conditions for competitive enterprises throughout norway and develop a society where we provide for our needs while

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

efforts in research, design, entrepreneurship and simplification the government will establish favourable conditions for increased innovation by advancing

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 and generate greater value for their owners. no undertakings today escape the

demand to make continuous improvements. the authorities must provide enterprises with more possibilities to be innovative,

now we will establish strategy councils for small and medium-sized enterprises and environmental technology

innovation And entrepreneurship Are important forces in fostering resilient industrial Activities throughout our country Â

liv signe navarsete, Minister of transport and communications 8 We have provided a sound basis for high levels of both wealth creation and welfare. in

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 increas

to trust solutions from the public sector. the quality of services shall not be dependent on the individual user†s financial situation. a sound, efficient and innovative public admi

the demand for competent personnel provides challenges for the education system international surveys have shown norwegian pupils to be less proficient in reading and

been internationalised. this demands that we are able to keep up with developments and that we internationalise our knowledge and 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

By concentrating on entrepreneurship in the education system we will strengthen future generations attitudes and knowledge of entrepreneurship

the government will Submit a white paper to the Storting (the norwegian Parliament) on teachers role and education

advance a mentality encouraging entrepreneurship, among other ways, by presenting an action plan on entrepreneurship in education, with particular

emphasis regarding higher education K n o W l E d g e a n D Co M P e t e N c e

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

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

it is becoming increasingly important for norwegian enterprises to be aware of how to protect their innovations, for example, through patents, trademarks and design rights

potential to make a profit on their innovations adequate and simple rules save industry unnecessary costs and release resources for

social responsibility and the environment to play a role throughout the work of the admi

enterprises shall grow And develop, And thereby grasp the great Possibilities Available to them in the globalised world

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,

enterprises shall grow And develop, And thereby grasp the great Possibilities Available to them in the globalised world

-nationally leading enterprises in their sectors. there is a considerable potential for industrial development in the high north

follow up investments in the high north strategy and present a national strategy for marine bioprospecting

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 and tomorrow†s undertakings are equipped better for the future

enterprises and institutes participate in international research collaboration and are important entryways for knowledge and technology developed in different countries

and increase investments in research equipment Strengthen regional research activities by allocating nok 6 billion

on the environment 19 to improve the quality of healthcare services will require that we deploy

the forces At our disposal in several Areas   bjarne hã¥kon hanssen Minister of health and care services

20 the norwegian public sector is considered to be among the best in the world †and it

sector constitutes an important part of the norwegian economy the government wants to have a sustainable, efficient and accessible public sector that

extend the duration of the demand-driven innovation and business development in the health sector to ten years,

involve the users in the development of services through national surveys and measurements of performance achievement

services will require that we deploy the forces At our disposal in several Areas 21

government administration Services E-mail: publikasjonsbestilling@dss. dep. no •Fax:++47 22 24 27 86

and services to suit their own circumstances and look for some tools that may assist them.

8. 2. Business plan Development for Innovative products & services...178 9. Marketing of Innovation...184

in a global economy, with its societies increasingly dependent on knowledge and communi -cation, progressing efficiency, effectiveness and appropriateness of our products, processes

economies of the future will be those which excel at generating and disseminating knowledge and exploiting it commercially†(see â€oeinnovation into Successâ€, UKSPA, Issue 1, 2003) or in

because small and medium sized enterprises (SMES) are failing to exploit the benefits of technology.

and initiative that support innovation in business and the economy Since the Green Paper on Innovation in 1995 the European commission has been furthering the de

ï encourage creation and growth of innovative enterprises ï improve key interfaces in the innovation system

Innobarometer is an opinion poll conducted among enterprises to gather their appreciation of innova -tion challenges (see http://europa. eu. int/comm/enterprise/innovation/index. htm

Although EU and national policies have identified innovation in SMES as a cornerstone of future eco

-te 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 Government's pro

turned into successful and innovative products and services; and ï fostering a confident relationship with science

among players in innovation financing (e g. venture capitalists, incubators), and amongst industrial liaison offices in public research organisations to strengthen public-private links.

ï 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, techniques and methodologies that support the process of innovation in firms

-nesses in the South East England region, especially through their network of Enterprise Hubs and

Enterprise Gateways Office for Science & Technology: This website www. ost. gov. uk/science links. htm provides good links

key to survival and success in the new knowledge economy. Whether you are an R&d professional, a

environment. Joined-up thinking has never been more important, and Innovation Policy Review will help in that process by keeping you up to date with major trends and developmentsâ€

http://europa. eu. int/comm/enterprise/innovation/./It states â€oeup to now, DG Enterprise's actions for

innovation policy have been financed from two of the specific programmes of the 6th Framework Pro -gramme for Research and development (SP 1: 11,5 millions, SP 2: 348 millions for 2003-2006) and its

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.

-gramme for Enterprises (starting in 2006) †For the UK details relate to the White paper on innovation,

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 sci

-ence and innovation over the next decade, in particular their contribution to economic growth and pub -lic 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 and

benchmarks Member country technology and innovation policies and assesses their impact on eco -nomic performance.

External and Internal environment of the company and identifies the human resources relation to company†s performance

as well as strengths and opportunities that should be taken under consideration. It also assists the company to identify the more significant actions that it should adopt

based enterprises, research centres, institutes) from their available technology ï To improve the productivity of the technological factors

Whoever is interested in the organisation, in terms of contracting, funding, VC investment, or acquisi -tion 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.

improved communication Results Achieved: As Wright & Hunter was in the process of finalising the recommendations the true extent of the State funding reduction became known.

ï Opportunity spotting for new products/new services/new technologies/new markets ï Networking with technology suppliers, technological sources, other companies

and Medium Enterprises, Warwick Business school, University of Warwick, United kingdom 1997 ï Brown, David, Innovation Management Tools:

A scan of the internal and external environment is an important part of the strategic planning process

W), and those external to the firm can be classified as opportunities (O) and threats (T). Such an ana

-lysis 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 capabili

-ties to the competitive environment in which it operates 2. 2. 1. What is SWOT Analysis?..

-tunities 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

into internal issues (strengths and weaknesses) and external issues (opportunities and threats. Once this is completed,

firm in accomplishing its objectives (a strength or opportunity), or if it indicates an obstacle that must

-ing 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

factors, 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

If compiling and recording the SWOT lists takes place in meetings, then do exploit the benefits of

4. List Strengths, Weaknesses, Opportunities, Threats in the SWOT Matrix 5. Evaluate listed ideas against objectives

Strengths, Weaknesses, Opportunities, and Threats. The SWOT template below includes sample questions, whose answers are inserted into the relevant section of the SWOT

ï Processes, systems, IT, communications ï Cultural, attitudinal, behavioural ï Management cover, succession Weaknesses ï Disadvantages of proposition

Opportunities ï Market developments ï Competitors'vulnerabilities ï Industry or lifestyle trends ï Technology development and innovation

ï Volumes, production, economies ï Seasonal, weather, fashion influences Threats ï Political effects ï Legislative effects

ï Market demand ï New technologies, services, ideas ï Vital contracts and partners ï Sustaining internal capabilities

ï Obstacles faced ï Insurmountable weaknesses ï Loss of key staff ï Sustainable financial backing ï Economy-home, abroad

ï Seasonality, weather effects "Innosupport: Supporting Innovation in SMES "-2. 2. SWOT Analysis page 19 of 271

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

ï Perception of quality services Weaknesses ï Staff lack of motivation ï Building was really small

Opportunities ï Support of local government ï High felt need of users ï Internationally funded projects

ï High competition Step 5: After completing the SWOT matrix the SWOT participants had a wider view of the situation at

existing processes †but we will become far more sensitive to new opportunities and potentials by

Process analysis provides an opportunity to identify problem points in a workflow, understand the fac

and opportunities for improvements through the use of feedback loops at the organisation and the customer levels

o To identify process improvement opportunities o To fine-tune processes in an organisational change project

o To overview the sequential production or service processes, lines of communication and quality feedback loops

1. Select and define problem or opportunity 2. Identify and analyse causes or potential change

problem areas 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

ï Bad quality of resources have a negative impact on the demand ï A market analysis is very important to decide what resources should be used in order to pro

-vide the good quality products that the customers want ï Not taking into consideration the internal feedback of demand to production will result either in

the production of more products than are demanded, by increasing the storage cost, or in the

analysis services ï http://www. semiconductor. com "Innosupport: Supporting Innovation in SMES "-4. 1. Foundations of generating ideas

ï innovation is a translation of the ideas into new products, services or production methods

-ple, creating a relaxed open to communication atmosphere, employers can discover potential problems of the organisation †no matter the level of their occurrence †before the situation

technologies of the providers or of the competition, of new ideas ï When present problems in the system overwhelm us

ï how does the management style stimulate the creative environment 4. 1. 3. 1. Adaptors/Innovators

-mand interaction with changing environments who deal with incertitude ï would rather produce ideas by introducing new

ï unlimited communication and increased capacity in generating ideas ï the risks are tolerated easily because the chance to find a solution is bigger

-spond to objective demands "Innosupport: Supporting Innovation in SMES "-4. 1. Foundations of generating ideas

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

environment and cultivates employees†self respect ï he/she encourages the em -ployees to seek solutions, to

friendly communication ï he/she accepts an al -most total freedom that leads to anarchy and

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 ï Ask for each employee†s opinion in order to produce a large number of ideas.

ï 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

ï lack of openness, honest communication between the departments of the company ï conflicts due to the rapid change rhythm and the quarrels between the groups

ï distance and lack of communication between the main three groups of the organisation (Inside

ï development of communication strategies to increase honesty, authenticity and cooperation ï creating the desire to change by developing, communicating and alignment of the targets and

-posed by Bright side and experimental measures of genuine communication; the second day: partici -pants †understanding of the vision and objective of the change;

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, reward for good performances proved to be very stimulating from the point of view of creativity.

-lating open communication, using methods to stimulate creativity (brainstorming, sinectics GSS †Group Support system, 6-3-5 Method, Analogical Reasoning etc) create the condi

The main key to success is communication. Brainstorming is a method that makes possible free com

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

How can you get new customers? He writes down on a board the problem 3. Set up the rules of the session:

ï Environment of the system Where to search for analogies Suitable analogies can be found in different fields of work

Environment Material Form Identification of analogical systems Discussion of the solutions found Modification Transfer Adaptation

brain creating communication between the brain and the outside object that needs to be moved 4. 4. 5. Resources

and to find innovative products and services. Therefore, this method can be combined very usefully with a brainstorming session

to completely new products, 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 So -ciety, the company†s future and success are determined henceforth by their ability to turn to their ad

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?..

ï When the knowledge capital of the firm, although existed, is used not effectively 4. 6. 2. Why K. M is that important

Knowledge in business environments exists in two main forms, the tacit knowledge and the explicit knowledge

and the participation of each employee to the firm cognitive capital is also rec -ognized

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.

business plan or in case this is not feasible a SWOT analysis must be done in order these priorities to

In today†s very competitive work environment many employees don†t feel safe in their work position

Improved site management methods help meet growing demand Brief Golden West Foods operates the UK warehousing and delivery system for one of the largest chains of

In this environment, best practice working procedures are business-critical-information They must be defined clearly and accurately communicated to employees

site management methods and transport services to identify best practice, which all staff should use

Communication tools: There are many electronic communication tools, which can help build net -works within your organisation.

Communication, offering you access to the most current scientific content in the Knowledge Management domain

that in an environment where rules have to be followed. Has any worker on the assembly line the au

communication, awareness of the innovation importance for the company†s performance excellent work relations Proper capitalization of

ï Nurturing an environment that encourage the creativity of employees (blue sky thinking that use toys to stimulate creativity are to be considered-see links

they use, the environment they work in. Basically, the success of the quality circles is based on the

ï Market-like environments Good engines also allow broad enough perspectives to enter the innovation activity.

Mexican cement company, regularly uses all its employees and its customers for ideas. These firms

and ventures from the innovation pipeline. They involve techniques to assess the value of a pipeline in

-of-proportion individual rewards may create a cutthroat environment for competition that over time is

the next 6 months, 5 experimental business concepts in 12 months, 2 ventures ready for commercial launch within 24 months, 10%of innovation projects in the pipeline receiving sup

For example, computer-services company EDS has instituted a fellows program to recog -nize innovative individuals who can serve as mentors for aspiring innovators in the company.

flow of ideas and communication between the person/team that had the idea and an Innovation Com

ï Creating an Environment for Innovation http://www. strategyletter. com/CD0902/featured article. html ï Risk and challenges in thinking about innovation

A prototype could be evaluated in order to determine whether a product is being developed according to specification and will be fit for purpose

Evaluation doesn†t necessarily have to be of an idea, prototype or finished product. The actual devel

Often, the opportunity for taking a good idea and developing it further may be lost, or the most innova

-tracting customers and coping with the new competition One of the possibilities that was considered was to have developed a webpage,

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

nature, identifying the kind of services and information provided, etc Also, a number of web developers were approached

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.

Companies are generally operating in a competitive environment. Companies are often operating on a rather limited budget

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 feasibly adopted. Benchmarking thus enables organisations to compare

type of benchmarking would take place when an organisation benchmarks with partners from different business sectors or areas in order to discover ways in which to improve similar func

-ing the product line or offering new services, etc. In this type of benchmarking the results often

ï Initially, it is important to identify what you want to benchmark. The objectives of the bench

the company the greatest profits, as these would be areas that should be improved ï Identify potential partners

benchmark process "Innosupport: Supporting Innovation in SMES "-5. 3. Benchmarking process page 103 of 271

The environment in which your organisa -tion operates may differ from the analysed organisation (s) and thus some of the improvements

A list was compiled of small companies offering business analysis and consultancy services within the region.

but two companies agreed to participate after having had a number of amendments to the benchmark

The benchmarking plan provided a list of benchmarks which were to be analysed in the benchmarking

This list included aspects of productivity, communication with customers, marketing and some internal working processes

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

so that the risks are minimised and profits are maximised. This text is designed to help SMES managers to understand the NPD methods neces

the gradual increase of the competition has forced all business to adopt New Product Development NPD) as a necessary and unavoidable business practice.

%of new industrial products and 18%of new services related products have failed completely as prod

In the future companies will have fewer opportunities to live on past suc -cesses "Innosupport: Supporting Innovation in SMES

customers'service and support staff, and procurement managers 6. 1. 3. How NPD is applied One of the most widespread and well-accepted conceptual descriptions of the NPD process is that of

then into prototypes and ultimately into real parts and components ï Process Engineering where the manufacturing tools that will realize the product are devel

"delivering a winning solution (answering"can we beat the competition?";"and applying project and process planning (answering"can we do it?".

preliminary investment requirements Programme breakeven time Proposed customer quotation Updated programme schedule Programme staffing issues

investment and budget approval Programme breakeven time Updated programme schedule and status Programme risk issues

commercial and residential customers. It recruited some of the best people in the industry so that it

-tially surprised by the call from ENERGEX-energy retailing is a long way from our usual customers in

A review or â€oeaudit†of the existing environment is always a critical starting point for any product development process.

common with those of our traditional customers. While much of the existing process was very thor

Customer service and Technical Services. This team represented all functional groups in the product development environment. ENERGEX has seen that process development by an empowered cross

and sold well, to internal and external stakeholders. It†s all about getting â€oebuy -inâ€.

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 Wedge

-wood Within ENERGEX Retail, Ray Cao†s team has embarked now on a formal product portfolio manage

designers to quickly create tangible prototypes of their designs, rather than just two-dimensional pic -tures.

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

and drag forces. De -signers 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.

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

However, most of the rapid prototyping services are sold to the following industries: design & engineering, R & D, consumer products, electronics, aerospace, automotive, ro

The rapid development of models or prototypes may largely reduce the development cost and the product development cycle.

-typing into their investment casting process In addition, they can be used in test markets prior to the entry of the

-ment of such models or prototypes is conducted usually by tech -nologists, who have no regard for the cost of such a development

upon an initial assessment of the models or prototypes from a combined team of technologists and

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.

The rapid development of models will be successful only if the following apply, and only then

ï Each prototype should provide answers to specific questions ï The prototype should be as detailed and complex as necessary to provide the required infor

-mation ï If there are multiple ideas, then it is necessary that multiple prototypes be developed ï Decisions should be made during the development of the prototype

and one should not await its final form ï The swifter the prototype development, the swifter the overall development of the new prod

-uct 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 manu

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 deter

This involves removing the prototype from the machine and detaching any supports. Some photosensitive materials need to be cured fully before

Prototypes may also require minor cleaning and surface treatment. Sanding, sealing, and/or painting the model will improve its appearance and durability

a pre-production functional prototype of the boiler ahead of a full scale market launch in March 1998

help ensure tight deadlines were achieved, Baxi's senior prototype engineer, Jim Astin-Kilgallon turned to AMSYS,

-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, he explained that he had been keen to get Baxi to examine the process as a beneficial

"Fully functional prototypes The first components to be rapid prototyped by external RP expert, AMSYS Were filled four Glass

"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

received, it took only a few days to produce the prototypes (as opposed to three weeks using a

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

It is probable that the validation test is the first opportunity to evaluate all of the component elements

-mally, this is carried out against some benchmark of expected performance. Usability issues may be "Innosupport: Supporting Innovation in SMES

To satisfy this growing demand Andrzej Szarski founded ASMET in 1989. The company†s vision was established at its birth.

at times of peak demand. ASMET employs nearly 90 people. The company is accredited to ISO 9001

range, 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.

opinion from our customers is that our exhaust systems have a very precise shape and fit easily, and

Prototypes of the new design are made and these are tested thoroughly, both for their physical dimen

-ment, plus large numbers of items requiring inventory, continuously changing demand models, etc it is

Demand for items can also occur in many ways. Items may be with -drawn from inventory by the thousand, by the dozen or unit-by-unit

a complement, that is, customers will not accept one item unless an -other is also available. Units could be picked up by a customer, or they

Some customers are willing to wait for cer -tain 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

customers Many Many but fewer Less Few Number of pro -ducts Many Fewer Fewer still Few

Capital versus labour/material intensive Labour Labour & mate -rial Material & labour Capital 6. 3. 3. How decisions in a production context should be made

In this section a unified framework for production decision-making is provided. The framework applies across a variety of processes,

capacity constraints and projected demand pattern, established by a long-range plan, and ration avail -able resources to meet demand as effectively and as profitable as possible.

Even though basic pro -duction capacity is fixed essentially by long-range considerations, production capacity can be in

Short-range operating schedules take the orders directly from customers, or as generated by the inventory system and plan in detail how the products should be processed through a plant.

and the system is designed for future scalability Case study 2: Large Engine Manufacturer Revs Up Tracking System

has opened new ways either for direct profit-making (recycling companies) or for indirect profit-making

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

ï High value (high demand), undamaged recovered reusable components ï Additional processing (cleaning, inspection, upgrading, reassembly,

ï Equipment investment cost (â ï Influenced by need for special (expensive) equipment ï Equipment operating cost (â/car, â/hr

with economic value. Example: Tires, rubber in hoses Cannot be disassembled No known technology for separation Example:

-nesses can cut costs and increase profits. Cost savings take the form of ï Lower waste disposal costs and lower waste treatment costs

Production efficiency, Profits, Good neighbour image, Prod -uct quality and Environmental performance "Innosupport: Supporting Innovation in SMES

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 mod -ern companies and one big issue is how to get not only the products from the supplier but

ï Environmental Management Tools for SMES-A Handbook, European, Environment Agency ï Georgia Institute of technology, Systems Realization Laboratory

step, but effective IP management means more than just protecting an enterprise's inventions, trade -marks, designs, or copyright.

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 enter -prises face the challenge of extracting the latent value of their IP

In addition, enterprises, which search systematically for conflicting IP rights of others prior to seeking IP protection, are able to avoid unnec

or closely imitating a company's products or services ï avoiding wasteful investment in research and development (R&d) and marketing

ï creating a corporate identity through a trademark and branding strategy ï negotiating licensing, franchising or other IP-based contractual agreements

ï acquiring venture capital and enhancing access to finance ï obtaining access to new markets "Innosupport:

goods 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

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 prod -ucts 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. Under this system of rights, creators are assured

-sonably accessible to small and medium-sized enterprises as well as to individual artists and crafts -men, in both industrialized and developing countries

For most small and medium-sized enterprises (SMES), marketing products or services is a major chal

-lenge. 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 activi -ties) are crucial for

Differentiating your products and services and making them easily recognisable ï Promoting your products or services and creating a loyal clientele

ï Diversifying your market strategy to various target groups ï 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?

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

ï 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

on goods or services that the mark is registered a one. The letters RTM are used normally in associa

New Patented Fabric is Key to Enterprise Success †Grindi Srl The story of Grindi Srl. is closely related to the development of the Suberisâ

Sooner or later, many small and medium-sized enterprises (SMES) operate in more than one market selling their products

or services or licensing/franchising their intellectual property (IP) rights and know-how beyond their national borders.

ï IP rights, especially patents, may open up new export opportunities ï IP rights, especially trademarks and industrial designs, may help you to develop an advanta

ï IP rights enhance the opportunity of winning loyal clientele for your products and services in

Economy and efficiency ï A cost-effective and timesaving way of applying for patent protection in several different coun

and services to be protected and an example of the trade mark ï 8 copies of the trade mark

your idea for competition purposes whether it be producing or selling unless otherwise stated in the

Enterprise S is a young start-up company from Luxembourg. Its activities are focused on the software and the Internet business.

the field of accounting, logistics, process tracking, communication, human resources and CRM. Enter -prise 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 con

-ferences for future company managers. There he became aware of the value of his intangible assets

Large enterprises that have significant financial resources often pursue a strategy of procuring and maintaining a large quantity of patents.

Enterprises willing to extract full value from their know-how and creativity should take adequate steps to develop an IP strategy for their business

when drafting business plans and marketing strategies. A basic IP strategy would include at least the following policies

-protected products and services; the entering into licensing or franchising agreements; the sale of IP

-ket opportunities, monitor activities of competitors, identify possible infringers, and avoid infringing competitors†rights A Policy on IP Enforcement

Small and medium-sized enterprises (SMES) represent over 90%of enterprises in most countries worldwide.

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 en

-hancing SMES competitiveness, SMES often under utilise the IP system The linkage between an organisation†s overall strategy and its IP strategy will be more significant in

In the new economy, one of the preconditions for being able to compete is that an organisation can create,

-ple, 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

ï Cost effective return on R&d investments by entering into new markets where the IP owner

The company gives support to enterprises in activities such as project conception (including realisation of prototypes), overall project management,

and presentation of applications for funding. The main "Innosupport: Supporting Innovation in SMES "-7. 4. Intellectual Property Management Strategy

The competitive environment of the applied research in ICT sectors is highly dynamic and subject to a

providing complex systems and original solutions developed ad hoc for its customers. However, the firm does not exclude the use of this intellectual property tool for future activities †in particular in rela

Frequently the interests of customers and R&d centres do not con -verge 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 ï Grants ï Venture capital ï Banks

ï Stock markets ï Business angels 8. 1. 1. Determining the Right Financing for You...174

8. 1. 3. Venture capital...175 8. 1. 4. Banks...176 8. 1. 5. Stock markets...176

-keted and are expected to produce a profit Venture capitalists or informal investors (business angels) may be prepared to finance projects where

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

Stock markets are only a feasible opportunity for companies which have been trading for some time and which have gained a considerable market value

such as the European commission, the European Investment Bank and the European Investment Fund, have generated schemes to support innovation within SMES

"Innosupport: Supporting Innovation in SMES "-8. 1. Financing Innovation in Europe page 175 of 271

8. 1. 3. Venture capital Venture capital is one of the most commonly used sources of financing start-up companies or innova

-tive 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, royal

-ties 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.

http://www. evca. com/-The website of the European Private Equity & Venture capital Association 8. 1. 4. Banks

if the company is not making a profit or doesn†t have sufficient cash flow,

goes wrong in the business venture. The banks will want to ensure that they can recover their loan

When asking for a loan from a bank, a well-developed business plan is important as this may convince

-tracted to investments related to his/her expertise. An added advantage is that there will not be a long

investment Business angels are unfortunately not merely pools of funding and experience, but will naturally wish

"-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, re

-gardless of the type of funding, be it a grant application, approaching a bank for a loan, getting in con

The Business plan should be well-developed and robust, as this will be your way of presenting the

Business plan will need to convey the strength of your idea and how it can be implemented success

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, including milestones

which a Business plan should address ï Project outcomes ï Existing market ï Target group ï Competition

ï Business management ï Financial management ï Marketing strategy ï Sales forecast Why and Where

a Business plan is an essential document. This document is what is presented to a potential source of funding

8. 2. 1. Structure of a Business plan...179 8. 2. 2. The Elements explained...181

"-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 summa -ries, 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

in other words, how does it differ from existing products/services and what are its advantages and

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 and the

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 protec

-tion of the idea This part is important as it will determine how well the concept is protected,

"-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

investment will be spent and also what return may be expected from the presented project All the sources for funding should be stated clearly (e g. internal funding, the amount requested, fund

The most important thing about a Business plan is that it is feasible, because it â€oesells†the company

"-8. 2. Business plan Development for Innovative products & services page 183 of 271 8. 2. 3. Tips

Business plan ï 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

ï Present the Plan professionally †the Business plan is an important document and this should

market research companies or referring to existing similar products/services, you demonstrate that you have done your research

and persuasiveness of the Business plan will in most cases determine whether an application for funding is successful or not

studies and guides on financing, Business plan writing, budgeting and much more "Innosupport: Supporting Innovation in SMES

and especially for those trying to market new products or services, marketing of innovation is a very complex process involving a multitude of activities.

controlling the acceptance of innovative products/services What is optimizing and controlling the acceptance of an innovative product/service

requires market research for innovative product/services in order them to be accepted successfully from the market and the so called method of â€oemarketing mixâ€

In order for your business to sell its products and services as successfully as possible, you need to

and services Why and where optimizing and controlling the acceptance of an innovative product/service can

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 mar -keting budget in order to collect all the data required

Prototype testing and early user testing often reveal unseen market features and new market niches

-tify benefits in products/services that they failed to spot. Likewise, users can also find undesirable

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

Prototype Full product What business are you in This question is not always a straightforward as you might expect.

ï Will all customers want the same from your products ï How are distributed products into the marketplace

-tential customers from publicized data. Much of this information is free, or available at low cost, from

ï Directories (they provide details about the activities of your potential customers ï Regular publications

ï Provide an opportunity for comment To obtain a good response from a questionnaire, it also helps to i) pre-test the questionnaire with an

Market research is a big investment, so it is a good idea to process the returns in a way that will allow

Researching a market usually involves making contact with companies that are potential customers and this can become indistinguishable from personal product/process promotion.

customers, end users, distributors, agents, university specialists, trade journalists, research and technology organizations etc ï Organizational buyer

ï Product Defining the characteristics of your product or service to meet the customers'needs

environment). ) Public relations is included within Promotion by many marketing people though PR people tend to see it as a separate discipline

The goal is to make decisions that center the four P†s on the customers in the target market in order to

-ing the learning environment within the workplace is a key element in the facilitation and management

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

communication. Media-based training basically utilises some of these media to enhance the learning process, address different learning styles

-ing environment creative thinking may emerge 9. 2. 3. Why Media Based Training Each approach to learning has advantages and disadvantages.

Services provided by a program out -side the browser Quality of the connection The processor speed of the computer

ï lets people apply what they know about the real world environment to the task of navigating

ï makes the learning environment more predictable ï contains objects and actions corresponding to real-world

UGS Education Services offers a blend of training solutions for all lifecycle management products including instructor led training classes

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

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

-son 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

most important development in business and communication in the history of the global economy However, because the Internet is developing at such an amazing rate those companies who put off

reach so many potential customers at such a low cost Advantages ï intensify communication ï ease access to new information

ï stretch the reach of marketing and sourcing ï reduce costs and as a result boost productivity and profits

ï e-business should bring new customers ï 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.

marketing perspective, the web offers an unparalleled opportunity for SMES How to take advantage Having a Web site is an excellent way of providing information on SMES.

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

around their site with 40%of their orders coming from existing customers. Their site attracts 1000

Your visitors are your customers Very often they will give you some valuable wisdom, or advise you, completely

Internet is a function of how precise the queries are and how effectively one uses search services

The competence of enterprises to market new products and/or services, to keep their processes up

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

enterprise culture Modern teaching and learning methods "Innosupport: Supporting Innovation in SMES "-10.1.0. Introduction page 209 of 271

ï Increasing internationalisation and globalisation of the markets, high competition pressure ï Decreasing product life cycles, increasing innovation speed

ï Increasing demands on quality ï 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 ï Faster decline of the knowledge and the need for lifelong learning

ï High demands on the specific subject skills but also on the methodical and social competence

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

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

any demand-oriented training management. By applying needs assessment, one turns away from supply-oriented training, at the same time making it possible to turn towards staff member orientation

By means of some examples from real life (SMES only) we wish to show which measures enterprises

the enterprise and the employee from this training measure are made clear before the event After attending the seminar a follow-up interview takes place where the participants jointly find out how

If required, the company Winkelbauer (engineering enterprise with 46 employees) organises events under the title â€oeedp:

The Gosch Consulting company (Consulting enterprise with 30 employees) has compiled a database with the title â€oemarket place of experienceâ€oe.

and the compatibility of the enterprise. However, whereas big companies have their own de -partments for preparing their employees for future requirements, professional human re

-sources 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,

have, what an enterprise striving for a joint staff development unit has to do, and what the ex

Human capital and innovative regional networks †theoretic background and empirical re -search findings ï http://library. fes. de/fulltext/asfo/00853003. htm

about the development needs and existing opportunities leading to your company performance improvement The approach we are proposing starts with the identification of existing problems (constraints) that

or opportunities that may allow to increase your company results 10.2.1. Where in business are undertaken TNAS...

-ment, keeping up-to-date with the latest technology advancements, customer demands, new product or process standards, management techniques,

with these challenges by engaging support services such as consultants, lawyers, bank or government sponsored business advisors in order to tackle any perceived gaps

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 opportu

-ager of the enterprise through successive layers of management to the individual worker who touches

Management, Marketing, Sales, Financial, Administrative Services, Human resources Production, Quality assurance, Logistics, etc. In smaller businesses several of these functional areas

Identify the main problems 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

Identify also the main opportunities foreseen for your business. Critical opportunities may cause train -ing needs of your employees;

we give you a few examples ï Introducing new technologies ï Entering a new market ï Producing a new product

Use the following table to identify the problems and critical opportunities and its implications in your

Opportunity Problem Cause /Opportunity Business Processes Involved Functional Areas Problem High rate of returned products from cus

-tomers Bad quality control Large delays in deliv -eries to customers Production Quality control Distribution Production Quality

Logistics Problem Cash-flow problems Bad cash-flow man -agement Delays in invoicing customers Bad negotiation proc

-ess with suppliers about payments pol -icy Budgeting Invoicing Purchasing Financial Financial Purchasing Opportunity Implementing an

Enterprise Resource Planning Software System Better stock man -agement Better warehouse management Larger product rota

-tion (First in, First Out Accounting Warehousing Sales Financial Logistics Commercial "Innosupport: Supporting Innovation in SMES

You†ve just finished the structuring of your company†s problems and opportunities. Please write in the

customers Distribution Logistics Delivery time rate 98 %Packaging employees Delivery wor -kers Defining and moni

customers after prod -uct deliv -ery ing control system Financial Di -rector and Administrative Manager in

ï Department for Environment Food and Rural affairs provides business advice for rural businesses, including a template for a TNA as well as a number of case studies

sized Enterprises (SMES. The project is working with four main audiences, across the built environment, focusing on Contractors, Specialist Subcontractors, Consultants, and Local Au

-thorities, where the departments work as SMES. The site also provides some case studies http://www. cicsc. org. uk/tvcbec. htm

services relevant to business www. trainingreference. co. uk/directory/training needs analysis. htm ï trainingneedsanalysis. co. uk is company specialising in training needs analysis. The link to

-ing TNAS for start-up businesses, rural businesses and social enterprises www. sircon. co. uk/sirius-software/your focus. asp

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 com

human capital is in step and striving to produce outcomes of value for the organisation What creating a company culture for continuous innovation is

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

-pled its shareholder value in only five years Example of characteristic 4 For example, prior to being acquired by RWE AG in 2000, VEW Energie AG,

managers were allowed to do business with competitors offering the same services if the price was right.

An innovative business model requires no less than having good jazz scores (operating models and processes), played by good jazz musicians (employees), playing high quality instruments (technology

ï designs products, processes and services around customer needs and understands and closely monitors the changing needs of its markets

ï ensures that its business processes are aligned to satisfying the needs of its customers ï has a commitment to access finance from a range of sources to fund innovative activity

-sue new business opportunities 10.3.3.1. Characteristics in detail The company culture ï is embodied in a clear mission statement,

-value, products and services that enable the business to achieve higher margins and thus profits to re-invest in the business

ï http://www. advantest. com/aac/Careers/culture. html A useful address for company culture

Networks are a growing success and competition factor in industry and generally in society They are the answer to a structural change towards an information society.

-panied by a worldwide globalisation of industry and puts special demands on enterprises in competi

The cooperation opportunity †Networkâ€oe offers some interesting solutions for the problems to be solved, especially for small and medium enterprises

Thus successful innovation networks allow the individual network partner to gain access to re -sources otherwise inaccessible,

In this connection, ability for innovation is an important property for the development of enterprises in

competition. A cooperation in the form of a network can contribute greatly to the ability for in

ï †legally independent enterprises pool their business relations as far as their innovations po -tentials are concerned

ï †stable relations are formed between enterprises and other players (training and research in -stitutions, political players, etc,

in order to gain competition advantages jointly and in a coop -erative way ï †the joint efforts yield innovative products, processes and services

11.3. Why: Advantages vs. disadvantages of innovation networks The central motivating factor for cooperation in innovation networks †above all for SMES †is

The following illustration shows an overview-from the point of view of an individual enterprise †and

-ent systems offer a large number of opportunities for mutual knowledge and know-how exchange thus creating frame conditions for a innovation promoting atmosphere

About 30 enterprises have united under the umbrella name of ICON (after several stages of analysis and pre-selection processes

enterprise "Innosupport: Supporting Innovation in SMES "-11. Innovation networks page 236 of 271 11.6.1. 1st Step:

Enterprises from the field of plant production (focussing in SMES formed the ICON network Step 1:

There are strategic links possible between the enterprises ï Cultural prerequisites Enterprises accepts other enterprise cultures

ï Fundamental prerequisites Enterprises want to reach joint goals "Innosupport: Supporting Innovation in SMES "-11. Innovation networks

page 237 of 271 11.6.2. 2nd Step: Strategy development 2nd Step: Strategy development An essential building block for a strategy development in a network is the know-how and the compe

-tences existing in the individual enterprises. Within the framework of a development of a network

while to define individual strategic business units as a basis for further enterprise planning Step 2:

in the enterprises "Innosupport: Supporting Innovation in SMES "-11. Innovation networks page 238 of 271

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,

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

ï Inter-enterprise innovation teams for product market finding ï Bundling of competences/know how available in the enterprises

ï Integration of further enterprises/customers/external know-how carriers ï Introduction of changes in the individual enterprises

"Innosupport: Supporting Innovation in SMES "-11. Innovation networks page 239 of 271 11.6.4. 4th Step:

Strategy implementation 4th Step: Strategy implementation Innovative yields of the joint work of the innovation teams,

intensification of the idea of linking in the sense of inter-enterprise project management, a bundling of

-enterprise project management, inter-organisational knowledge base "Innosupport: Supporting Innovation in SMES "-11. Innovation networks page 241 of 271

-how build up in the network and in the individual enterprises Step 6: Further development by

Increase the know how/technology intensity of the network and the enterprises "Innosupport: Supporting Innovation in SMES

ï Small and medium enterprises gain strategic spaces by o The improvement of their own innovation behaviour

and cooperation on an enterprise level the positioning of a country/region as a whole is of outstanding

and carried by enterprises, universities and research institutions other than universities as well as by central regional players

ï Campus 02 Fachhochschule †Studiengã¤nge der Wirtschaft (Courses for Economy in Campus 02 Polytechnic

ï Marked sense of innovation in the enterprises ï Efficient research institutions of international format inside and outside universities

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

infrastructure and support services directed to innovative entre -preneurs as well as to their supporters For more information please have a look on the following homepage †under the point â€oepart

of an enterprise is its competitiveness. What factors are those that may guarantee the required com

-ness and entrepreneurship The aim of the component The main aim is to give a brief description of several widely known and frequently used ways on how

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.

enterprise is a success and things are running smoothly, we should not stop at this point.

-ing to successful development of the enterprise and expanding the staff†s horizons and enriching their

Increased KNOWLEDGE and AWARENESS will give the enterprise ï Development ï Progress ï Competitiveness ï A stable market position

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

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

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,

and therefore we need adequate communication tools, firstly, foreign language skills 12.2.1. What does it mean to be competent in another language?..

wider range of languages in use in the international communication. When we regard demographic development, Arabic or Chinese perhaps will be dominating languages in future,

inventive Spanish customers very soon spelled the name in a different way: â€oeno vã¡â€, which means â€oeit

-ness opportunities due to lack of foreign language competencies, while for the regions studied in the UK, Spain, Germany and Denmark the figures were respectively 31%,18%,15%and 14%.

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 cer -tainly paid 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, Saarbrã cken, 1994

European Passenger Services (extract from a statement of Christine Mead, Language Training Manager at the LINGUA Symposium, Saarbrã cken, 1994

these to new situations, understand some of the conceptual issues of intercultural communication and are receptible to cultural nuances,

be involved in drawing up a plan for engaging in intercultural communication, champion an intercul -tural working atmosphere, drawing up intercultural training plans or deciding who should support and

operating in a knowledge based economy have to rely increasingly on the interrogation of non

its workforce, reflecting the multicultural social environments businesses are situated in Within a business environment, intercultural competencies are essential wherever two or more cul

-tures coexist, interact or where products or services produced or offered by a company or organisa

-tion are aimed at a multicultural audience Company employees: It is important to know the cultural characteristics of your employees, so if you

And from just 1997 to 1999, flows of foreign investment nearly doubled. The diversification of

Foreign Investment External Trade (as percentage of World Trade "Innosupport: Supporting Innovation in SMES "-12.3.

The answer which was given was that international competition in a globalized market makes the im

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 prod

Thus, the investment that was necessary to implement the new linguistic skills has cer -tainly paid off

and has opened new sales opportunities on the international market†A further case study on â€oeteaching Intercultural Competence†is available at

There is also a very interesting academic publication called â€oeintercultural Communication in Business Ventures Illustrated by Two Case Studies†(http://www. tu-freiberg. de/wwwfak6/paper/hinnertext. pdf

The two case studies, this paper is based on are describing how culture influences the marketing stra

3. Assess your product, processes and services in relation to the cultural aspect of the mar -kets

and communication strategy against intercultural require -ments 5. Identify intercultural training courses/workshops or language courses that address ele

7. Hold intercultural †fun†days that include competitions that test your intercultural knowl -edge and skills, demonstrate different customs, food etc

the customers, clients or business partners you will be working wth and adopting your practices accordingly

and services by those who are most efficient, thus maximising their availability at the best price ï The International monetary fund (IMF) www. imf. org was established in the wake of the

The bank provides loans for investment projects, such as water and sanitation, natural resource management education and health.

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 ï The World Economic Forum (WEF) www. weforum. org is a private not-for-profit foundation

that operates conferences for business, political, intellectual and other society leaders. The WEF holds an annual conference in The swiss town of Davos,

where it is based, and also holds regional conferences around the world. It has no decision-making power, but many of

8. 1. 3. Venture capital 8. 1. 4. Banks 8. 1. 5. Stock markets 8. 1. 6. Business Angels

8. 2. Business plan Development for Innovative products & services 8. 2. 1. Structure of a Business plan 179

8. 2. 2. The Elements explained 8. 2. 3. Tips 9. Marketing of Innovation 9. 1. Optimising and controlling the acceptance of an Innovative ï¿

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