In a former blog entry I presented key results of the study “Technologische Kompetenz und nachhaltiger Wettbewerbsvorteil” (“Technology Competence and Sustained Competitive Advantages”, available only in German) published by the Institute of Technology and Process Management at Ulm University in March 2012. Of a total of 175 German companies – mostly from the mechanical engineering, automobile and metalworking sectors – which participated in the study, 12 out of 114 SMEs (11%) and 5 out of 61 larger companies (8%) belong to the benchmark group. Weiterlesen
Will innovation create sustainable, long-term competitive advantages? Is there a positive connection between successful innovation (with regard to either products or procedures) and corporate success? The answer to both questions is clearly “yes”. That is the ultimate result of a study on “Technologische Kompetenz und nachhaltiger Wettbewerbsvorteil” (“Technology Competence and Sustained Competitive Advantages”, available only in German) published by the Institute of Technology and Process Management at Ulm University in March 2012. Prof. Dr. Leo Brecht, the director of the institute, says that the study aims to show how technology competence can boost competitiveness, in what way well-performing technology-oriented SMEs differ from their less well-performing counterparts and what the differences between SMEs and larger companies are. 175 companies from all German regions participated in the study. Most of them belong to the mechanical engineering, automobile and metalworking sectors. Weiterlesen
New products are often described as “revolutionary” in order to ensure a certain response in the market. In most cases, however, there is nothing revolutionary about the products or procedures. In many cases, product improvements are evolutionary in that they satisfy an existing market demand more quickly or cheaply than their predecessors.
What is it that makes an innovation “revolutionary” – and is it possible to produce this unknown component on the spot? (see also our article on “Supply Chain Mangament – a way to procure innovation”) Weiterlesen
Does that sound familiar to you? The R&D department proudly presents the newest innovative product ever. The management is very enthusiastic about it. The production department had already heard some rumors and the sales department, which has been expecting this particular product for “years”, is completely surprised. Ok, this might be exaggerated, but just remember the launch of the CD. And this was only the tip of the iceberg. Weiterlesen
Innovation is essential in order survive in the global competition. One of the most important drivers is minimizing the “time to market”, the time period between the product idea and its launch. Due to the limited resources it is vital to be successful with the product launch and to generate a positive cash flow. And limited resources are not only money, but very often special know-how. Weiterlesen
Innovation is the core of any business development. The Austrian-American economist Josef Schumpeter (1883-1950) described innovation as a new combination of production factors. According to Schumpeter, the so-called innovator has to come up with a new combination (innovation). The economical success then leads to imitations by copycats. Prices are driven down as a result of supply and demand, so that the entrepreneur has to search for new combinations. And so on. Weiterlesen