Bruno Weisshaupt, CEO origo, speech at the Chief Excecutive Club, Hannover Messe 2008.

Transcription

1 It is time for change It is time for systeminnovation Bruno Weisshaupt, CEO origo, speech at the Chief Excecutive Club, Hannover Messe I would herefore take the opportunity to present the systeminnovation of origo and its importance for your businesses and market perfomance. origo is a company exclusively involves systeminnovation. SystemInnovation is a registered Trademark by origo. origo focuses itself on the design of customer-oriented system-innovations and deals directly with the leaders of strategic marketing and strategic product management. We follow a new way of thinking, that focuses on system rather than products. With systeminnovation, we actually activate innovation potential in the markets of our customers, develop systematically disruptive innovation and therefore generate new profitable growth for our customers. origo guides companies through systeminnovation to successful positioning in the market for the future, taking the continuously radical changes in the market into account and setting there trends themselve. It is the first time that really new systems, really different from the existing systemsolutions which are in the market, were systematically designed lead by strategic marketing and not by the research and development departments. origo supports a variety of enterprises, from small independent companies to large international enterprises. How all of us can be successful by using systeminnovation when it is time for change? Steve Jobs shows us nearly every day - Creating guaranteed market leadership for the future using systeminnovation Make the world more comfortable - Managing complexity using systeminnovation Be different and set trends - Creating unique selling propositions for your products using systeminnovation Work with the best - Reaching the market at a faster rate by development in partnership Convenience is the goal - Creating intuitive communication using by systeminnovation There are three parts we d like to present you: The first part is about the motivation for systeminnvotion. (Page 2-3) Secondly you will be introduced into the systematics of systeminnovation (Page 4-6) and finally you will see different case studies of systeminnovation (Page 7-9). It is time for change it is time for systeminnovation

2 Part 1: Motivation for systeminnovation Growth and primarily the profitable growth of our companies this is everyone s goal. No work, no development, no innovation makes sense without leading to profitable growth. We see two different kinds of chances for growth today: - On the one hand there it is improvement in efficiency with Business Process Reengineering, organisational and product improvement as we saw in the last decades. - On the other hand there it is more and more important for profitable growth real substantial innovation: A fundamental renewing of the market performance setting trends in an innovatively segmented market is the chance of the 21st century for all of us, as possible with systeminnovation. As an example: Newspapers and their profitable production are under pressure: What are the requirements of the customers? Individual access to written information, wherever and whenever one wants to have it. For this there are today other possibilities than the traditional newspaper, delivered home or bought in a newspaper kiosk: Online news on a gadget direct or by podcast or newspapers for free mostly in tabloid format are the alternatives. The result is that advertising backs out of traditional newspapers and there is no chance to compensate this with more efficiency in production or logistics.the printing machines are excellent, superior in quality and able to print individually on demand. So there has to be another kind to maintain profatibility for publishing companies, they have to be creative and innovative, they have to go online with their products and they have to think about their positioning for the future with profitable growth with new products in radically changed systems, they need systeminnovation. So when we summarize these points we are lead to a mission statement. We can say: Looking for a new way to profitable growth using systeminnovation. Reaching profitability we have to go this alternative way. It is time for change it is time for systeminnovation / Bruno Weisshaupt / origo Page 2

3 The next main point causing people problems is the usability of technical products like vending machines or video recorders. In all these machines functionality comes to the foreground with all the variety of the possible functions, without a comprehensible context with the common needs of the users of the machines. That is the main problem, that causes difficulty for a worker to operate a production machine like the difficulty for all in using for example a smart phone, with exception of the iphone, I think. The interface to all these machines orients itself at the function and not at the user, at the technology, not at the process. This is also a task for systeminnovation. Based on the real requirements of the users, the requirements of the processes within the user want to cooperate with the machines, innovative user interfaces of the products within the new systems have to be designed, really focused on the intuitive wishes of the users. So therefore the user as a part of the whole system is also a part of the process-net as the base for systeminnovation. So the most important point here is that to create such a systeminnovation useable intuitive it is absolutely necessary to be directly involved with the tasks of the users of a system. So when we summarize these points we are lead to the next mission statement we can say: Assigning successful products of the future anticipating customer needs. Reaching simplicity we have to have a deep understanding of the customer. It is time for change it is time for systeminnovation / Bruno Weisshaupt / origo Page 3

4 Part 2: The systematics of systeminnovation It is time for change it is time for systeminnovation / Bruno Weisshaupt / origo Page 4

5 There is a well-known impressive business case everybody knows where systeminnovation ist so successful today. That prime example for systeminnovation is the change in the market of the music-consumption and the music-distribution which has been turned completely upside down during the last years: For decades, the sound-carrier -market was developed directly from the discs to the Compact Discs with pure product-innovations. The technology of the miniaturized massstorages, the development of the MP3-algorithm and the internet, made the radical new solution possible, the solution with itunes as distribution channel and the ipod as the most important example of individual music consumption gadget, a real systeminnovation. User requirements are fulfilled in a very convenient way: Wherever you are and whenever you want you have access to your music. So, the entire value-chain has been changed completely and the physical production and distribution of sound-carriers, up to now a big business, become obsolete. So when we learn from that we can say: Creating guaranteed market leadership for the future using systeminnovation. So leadership like Steve Jobs from apple demonstrates, shows there is a chance for change. Perhaps you remember apple said for a long time think different. It is time for change it is time for systeminnovation / Bruno Weisshaupt / origo Page 5

6 Now we ll move on to complexity as the next main point which is a very critical point for all the technical development around us: A big railway station as we find in many capitals and big towns is an example of complexity: Quite different needs and requirements to meet. I think from your personal experience you know, it s almost chaotic. There are at least three different tasks to be fulfilled by a big railway station. It is a station for many people which have to transfer in a very short slot as mass transit station, it is also a station for main line traffic with requirements like in an airport and after all it is, as it is in Switzerland, the biggest shopping center in town. systeminnovation is able to reduce this complexity and to restructure the organisation of this room and to detect new ways to a spacial configuration for organisation and signage for transferways. To step back from the existing solution, to figure out, what the real requirements of the different customers are and to draw it up in a process net for clearing the relations between the processes and to evaluate the importance of each of them, makes the complexity transparent. This is the way systeminnovation works and leads to really clear structures of systems. So let s summarize to a mission statement: Managing complexity using systeminnovation. To reach clearness you have to define structures. It is time for change it is time for systeminnovation / Bruno Weisshaupt / origo Page 6

7 Part 3: Different case studies of systeminnovation Now I ld like to show you two examples directly in context with the future of automization and machine industry. The smallest laser machine for cutting parts out of standard-sized metal sheets is another concrete example of Systeminnovation being very successful in the market. It is the example which shows the chance for being successful by realizing products that really stand out from competition. Our costumer Bystronic is positioned in the high-end of the market and wanted to add another market segment in its portfolio. As for this the target of the project was to reach these new customers with a laser cutting machine at about half the cost. After having evaluated the market requirements, amongst others one especially important fact resulted: 80 % of the parts the machine has to cut, is less than a quarter of a squaremeter wide with a thickness of not more than 10 mm. But the existing machines were laid out for standardized cutting part till the full dimension of the in-coming sheet which is at least 1,5 to 3 meter. Therefore the new developed architecture concentrated first on the adaptation of the machine-dimensions. The necessity for smaller cutting table made a more precise guidance of the laser possible, without higher cost. Additionally the laser source could be integrated into the machine-body, so a new logistic concept with this container-machine with a possibility of a very short installation time on site being the result. In addition to this a new business model was created with a standard price worldwide all included, 2 years warranty and maintenance, a net sales price of 270 thousand euro advertised on the internet. So the conclusion is quite clear and challenging: Creating unique selling propositions for your products using systeminnovation to reach uniqueness you have to identify the important segments in the market. It is time for change it is time for systeminnovation / Bruno Weisshaupt / origo Page 7

8 In addition to the big challenge of finding newly structurized systems and designing new machines and products as part of these systems time and personnel resources of our custumers are limited and they are often very busy with daily business. Also for these aspects, systeminnovation can show the way for a short time to market in a very good economic situation of our customers having not the time for additional work. In this project shown now the CEO wanted to launch a new smart solution for a loading and unloading unit for different kind of traditional laser cutting systems with a shuttle table. The Systeminnovation of this new load-unload unit precisely positioned in the target market is an encapsulated unit with a very small footprint in which the raw material is no longer placed on a separate warehouse but rather in a cassette that is an integral part of the unit. Thanks to this encapsulation, the number of light curtains and barriers is reduced and nevertheless free access to the shuttle table is guaranteed. Now for the realisation as mentioned above, we had to find a solution how to realize this system in a short time without having access to internal resources. we needed to solve this problem by including an automation partner to it. The advantage of the systeminnovation approach was that the structuring of the whole system is very clear and the interfaces to the other parts of the whole production system are very well defined. So the description of the work to do is very precise. As the result of our market research an Italian partner presented himself as the optimal solution partner with the well suited experience in this case for development and production. To sum up: we succeeded. The new automation solution near the machine delivers what it promises: 50 percent higher machine utilization with just 20 percent higher investment. So higher profits can be achieved with laser cutting using this unit. And the time to market with the external partnership did not exceed one year. So coming to the conclusion: Reaching the market at a faster rate by development in partnership. To be timely on the market work with partners having the right competence. It is time for change it is time for systeminnovation / Bruno Weisshaupt / origo Page 8

9 A fundamental pillar of systemdesign by the systeminnovation is user-orientation instead of technology-orientation. This means that Systeminnovation looks for process requirement of the customers and their relations behind it. Similarly is communication on a package of a product as the first interaction with a customer in a shop, a task for useroriented systeminnovation. To find a nonverbal way to communicate with the customer using the package-design instead of writing in about 12 languages only the name of the product was the target of this project. The responsible manager of marketing in the company BOSCH, a big manufacturer for the whole range of accessories for power-tools, decided to reach this new approach by systeminnovation from origo. The main focus we analyzed was to concentrate first on the material like wood, metal or concrete which the customer has in mind, in context with his work to do when he visits the shop to look for an accessory for his machine. After that he looks for his application in relation to his machine either from Bosch or others. The result of this work is a package-design, understandable at first glance in the whole world without people having to learn a particular expert-encoding first and without any language knowledge. The test in the market showed after realisation, that after 4 minutes in the shop 50% of the customers bought a product with the old package and now with the new one 90% bought the product they were looking for within 1 minute. An extreme improvement which shows the big success of user-orientation instead of technologyorientation with systeminnovation. So lets summarize: Creating intuitive communication using systeminnovation. For convenience understand the customer as a person like you are. origo, Hungerbüelstrasse 22, CH-8500 Frauenfeld, Tel +41 (52) weisshaupt@origonet.ch It is time for change it is time for systeminnovation / Bruno Weisshaupt / origo Page 9