Foresight & Open Innovation at Volkswagen An approach: Combining - - PowerPoint PPT Presentation

Foresight & Open Innovation at Volkswagen

An approach: Combining the Scenario & Information Market Methods

Caroline V. Rudzinski, AutoUni – Volkswagen AG

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FRAMING

Theoretical approach and understanding

INSIGHTS

Volkswagen project

Interference Circle

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STRATEGY „the Frame“ INNOVATION „the New“

Organization (secure existence)

Short term Long term

Expectations

• f the future

influence the actuel decisions (Backcasting) Innovations influence the future.

Interdependence of Innovation  Future  Strategy 3D-Printer (Mass Customization) Crowd Funding

Source: kickstarter

Connectivity (Gamification)

Interference Circle

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STRATEGY „the Frame“ INNOVATION „the New“

Organization (secure existence)

Short term Long term

Expectations

• f the future

influence the actuel decisions (Backcasting) Innovations influence the future.

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“It is also about knowing where to look more carefully for clues, how to interpret the weak signals, and how to act when the signals are still ambiguous.”

George S. Day & Paul J.H. Schoemaker

Strategic Foresight

Organizational challenges

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“Most organizations lack sufficient capacity to detect, interpret and act on the critically important but weak and ambiguous signals of fresh threats or new

• pportunities that emerge on the periphery of their usual business

environment.”

George S. Day & Paul J.H. Schoemaker

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Volkswagen Future Affairs & Trendtransfer: Supporting Strategy & Innovation by Foresight

Competence of the AutoUni

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Based on innovative methods and formats the AutoUni provides access to relevant knowledge in cooperation with top level universities/institutions and experts worldwide. Volkswagen Group

Knowledge generation Knowledge transfer Knowledge supply

Advisory Board (Experts) Departe- ment Universities, technical colleges and research establishments

The approach: The Volkswagen Project

Interference Circle

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INNOVATION „the New“ STRATEGY „the New“

Organization (secure existence)

Short term Long term

Expectations

• f the future

influence the actuel decisions (Backcasting) Innovations influence the future.

Interference Circle

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INNOVATION „the New“ STRATEGY „the New“

Organization (secure existence)

Short term Long term

Oscillation between the two contrary poles contributes to ensure the company's survival

Different characteristics

Combination of the Wind Tunneling Approach with the Information Market Method

„…knowing where to look…“: Identifying relevant future fields

Wind Tunneling

Wisdom of the crowd can lead to better estimations than asking a single person Market mechanism aggregates knowledge efficiently

Infor- mation Markte

Information Market

„…how to act …“: Aggregation and transparency of the Wisdom of the crowd

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= FOCUS = DIFFUSION

• 1. Phase:

Creating four Scenarios

• 2. Phase:

Identifying consistent strategic options by "Wind Tunneling" approach

• 3. Phase:

Identification of promising fields for future innovation using Open Innovation approach

• 4. Phase:

Decision on strategy and top innovations

Identifying relevant future fields and strategic options via the Wind Tunneling approach

Plane: Own strategy Tunnel: Environmental scenarios Wind: Robustness check (best fit strategies)

Identifying consistent strategic options by using scenario "Wind Tunneling"

Strategic options Environmental scenarios Key Factors Projections Scenario 1 Consistent strategic option for scenario 1 Projections Key factors

• Matching between scenarios and strategic options
• Identification of consistent and robust strategy
• Gap analysis for current strategy

Based on the results from the “Wind Tunneling phase”, relevant future fields of innovation have been identified and via an Open Innovation approach the “crowd” was invited to give their input.

The Open Innovation Approach: Information Markets Process overview

Defining relevant questions Idea generation & evaluation Screening “Selection Board” Top 10 ideas Selection “Jury” Winning idea(s)

The Open Innovation Approach: Information markets Information markets effectively pool the “wisdom of the crowd” through a virtual “stock exchange”

Each participant may bring his own idea(s) to the market. Each participant receives play money and can “bet“

• n good ideas.

The provider of top ideas, comments and the best traders will be rewarded. Participants can comment on ideas.

Outcome

Critical success factors were identified. Identification of consistent and robust strategy. All departments of the Group Research participated on the Information Market. Relevant strategic issues were placed across the organization. The winning ideas are being further elaborated. 136 ideas, 250 comments and 2642 trades.

Information market: Knowledge is made transparent across departments

• New insights into complex issues.
• Access to otherwise unconsidered input.
• Possibility to easily localize experts with

relevant insights.

• Evaluation of the potential success of the implementation of

the ideas.

Information market encourages the innovative capacity of companies

Transaction data of the Information Markets. Colors according organizational unit.

It enabled a

• structured and transparent, bottom-up

and top-down analysis,

• qualified discussion on different

consistent possible future strategies and future innovations and

• it also provided the basis for identifying

white spots within the current research agenda.

Combining the Strategic Foresight and Open Innovation approach is able to generate strategic insights/value and to establish a long term perspective on strategy, embedded within an iterative learning cycle on strategy and innovation.

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It is about anticipating future development, by having a plan (strategy), but also about knowing how to act (innovation)

Thank you.

Caroline V. Rudzinski AutoUni VOLKSWAGEN AG caroline.rudzinski@volkswagen.de

Learning

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• Supported by top

management.

• Allocated sufficient resource

and capacity.

• Cross functional teams.
• Embedded with business units.

Organisational enablers Futures thinking must be owned and adequately supported.

• Clear objectives.
• Sufficiently broad to generate

new thinking.

• Accepting of multiple futures.
• Consultative: Internally and

externally. Prozess enablers The process must be plural, engaging and focused.

• Make the process transparent
• Outputs tailored to be relevant

to corporate strategy.

• Iterative.
• Integrated into planning

process.

• Established audience.

Implementation enablers The implementation must be strategic and sufficiently embedded.

Combining Foresight and Open Innovation fosters a vigilant organizational mind-set.

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It is characterized by

• the ability to “think outside the box” (peripheral vision)
• resources/capacity devoted to long-term strategy making

Defining a consistence strategy Input of the crowd to relevant future fields

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Organization

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XXX  Secure Existence.

The wisdom of the crowd – at Volkswagen

App my Ride

Open idea contest for development of apps for car infotainment (2010): 385 ideas (from 104 persons), 96 apps (from 49 persons), 528 participants, 1991 evaluations, 1283 messages, 1448 comments

Idea contest “Think Blue. Ideas.”

On the Think Blue internet platform people could contribute ideas that represent the Think Blue philosophy and concern the issue of sustainability.

People’s Car Project

Chinese internet users could bring their ideas about how a car of the future might look via the “People‘s Car Project“ internet platform.

Information Market

Employees of the Group Research were able to contribute ideas and comments to, and evaluations of, strategically relevant questions.

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“The essence of strategy is

choosing what not to do. ”

Michael E. Porter

“Leaders establish the vision for the future and set the

strategy for getting there.”

John P. Kotter

“You’ve got to think about big things while

you’re doing small things, so that all the small

things go in the right direction.”

Alvin Toffler

Function of Strategy

Identifying relevant future fields an strategic options via the Wind Tunneling approach

Plane: Own strategy Tunnel: Environmental scenarios Wind: Robustness check (best fit strategies)

Der Wind Tunneling Ansatz als dynamische Strategieentwicklung in Abhängigkeit von zukünftig denkbaren Umfeldentwicklungen: Eigene Strategieoptionen –definiert durch erfolgskritische Schlüsselfelder—werden einem „Stresstest“ unterzogen. Es wird überprüfen, wie das Unternehmen für die möglichen Zukunftsentwicklungen aufgestellt ist und ob an der Strategie ggf. nachjustieren werden muss.

The Open Innovation Approach supports structures for a “Learning Organization” “Open Innovation means that valuable ideas can come from inside or outside the company can go to market from inside or outside the company as well. This approach places external ideas and external paths to market on the same level

• f importance as that reserved for internal ideas and paths to market during the

Closed Innovation era.”

Henry Chesbrough

Caroline V. Rudzinski

The Open Innovation Approach supports structures for a “Learning Organization” “Open Innovation means that valuable ideas can come from inside or outside the company can go to market from inside or outside the company as well. This approach places external ideas and external paths to market on the same level

• f importance as that reserved for internal ideas and paths to market during the

Closed Innovation era.”

Henry Chesbrough

Keep the organization „on the go“ in order to ensure progress: Maintenance of routine while opening up for new things and questioning existing options. BUT: What are the relevant (new) fields/options to question?

The power of Open Innovation

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Crowd Sourcing

855

Personen

Quelle: Quirky

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