Materials and Innovative Product Development (eBook)

Front Cover 1
Materials and Innovative Product Development: Using Common Sense 4
Copyright Page 5
Dedication 6
Table of Contents 8
Preface 18
Introduction 22
Analysis of Available Literature 22
Who Should Read this Book? 23
Following the Flow of Innovation 23
References 25
Chapter 1: From Idea to Product to Market-The Flow 28
Objectives 28
Reality in Innovation 29
Materials Selection in Product Design 29
Materials Development-The Starting Point 31
Materials Systems (and Related Case Studies) 32
Inorganic Materials 33
Organic, Biomaterials, and Biomimetic Materials 36
Nanomaterials 37
Electronic, Optical, and Magnetic Materials 38
Innovation Flow 39
Important Aspects in the Flow of Innovation 40
Where Do Ideas Come From? Sources of Innovation 40
Where to Get Information? 42
New Knowledge as a Source of Innovation 43
Principles of Successful Innovation 44
Case Study. CERCON: Convergence of Skill Sets (Personal Interview with F. Filser) 44
Objective of the Project 44
Original Idea and History of R& D Leading to CERCON&
Scoping-Selecting the Few Winning Ideas 51
Importance of Speed in Decision Making 51
Finding the Right Focus: Time, Cost, Objectives 52
Right Processes and Right Competencies-Important Pieces of a Puzzle 52
Summary 53
References 53
Chapter 2: An Introduction to Company Structure and Organization 56
Objectives 56
Economic Environment 56
Objectives and Organization of Companies Established Ones and those to be Established 58
Structure of a Company 58
From a Traditional (Mechanistic) to an Organic Organization 59
Traditional Organizational Structure 60
Organic Organization 64
Mixing Styles 66
Basis for Departmentalization 67
Functional Departmentalization 68
Geographic Departmentalization 68
Product Departmentalization 68
Customer or Market Departmentalization 69
Process Departmentalization 69
Porter's Value Chain 69
Setting Up Vision, Mission, Objectives, Strategies 71
Vision 72
Mission 72
Objectives 72
Situation Analysis 73
Strategy Formulation 73
Strategic Planning 75
Cost Leadership Strategy 75
Differentiation Strategy 76
Focus Strategy 76
Summary 77
References 78
Chapter 3: Creation Phase-Research and Development 80
Objectives 80
Important Process Steps From Idea to Market 80
Creation Phase-Research And Development 82
The Linear Model of Innovation 84
Two-Dimensional View of R& D
Benefits of Academic Research and Government Funding 89
Three Phases of the Innovation Process by Abernathy and Utterback 90
Fluid Phase 90
Transitional Phase 90
Specific Phase 91
Conventional and Disruptive Technology S Curves 91
Models and Tools for the Start of the Innovation Process 93
New Concept Development Model 93
New Process Development [12] 98
Case Study. Metal Oxide Varistors, Evolution of a Technology: In-house Research or Licensing? (C. Schüler [ 98
Surge Arresters 98
The History of ZnO Varistors 99
Metal Oxide Varistors at Brown Boveri 100
Asea Bets on Metal Oxide Varistors 101
Brown Boveri Closes the Gap 101
Competitors Become Partners 102
Learning Points 103
Summary 104
References 105
Chapter 4: Application Phase-Design and Manufacturing 106
Objectives 106
Engineering Design 106
Functional Requirements 106
Total Life Cycle in Design 107
Other Major Effects in Design 108
Production Engineering and Manufacturing 109
Production Engineering 109
Manufacturing 109
Case Study. Isothermal Forging of Ti6Al4V Impeller Wheels: A Detour Toward Flexible Manufacturing 111
First Challenge: Available Manufacturing Methods 112
Second Challenge: Process Development 112
Third Challenge: Upscaling 114
Fourth Challenge: Technology Transfer 116
More than 30 Years Later 116
Lessons Learned 117
Case Study. LNT: From Process Modeling in Russia to HIP Manufacturing Worldwide-Keep Focusing on the Content 118
Introduction 118
Background 118
Laboratory of New Technologies (Samarov, personal communication) 119
Establishing Synertech 122
The Shrinkage Model 122
Examples of Complex Shapes Produced by HIP 123
Competitive Cost Analysis and Market 124
Reasons for Success 124
Future Outlook 125
Learning Points 125
Summary 125
References 126
Chapter 5: Managing Technology 128
Objectives 128
Managing Change 128
Portfolio Management 128
Financial Commitment 131
Does More R& D Expenditure Lead to Higher Profitability?
Tools for the Calculation of the Business Impact of R& D Projects
Barriers to Innovation 136
Side Benefits of Innovation 137
Human Aspects in Supporting Innovation 138
Commitment 138
People Involvement 138
Resources 138
Accepting Failure Helps an Innovation 138
Implementation 139
Centralized Approach 139
Decentralized Approach 139
Multilayer Approach 140
Guidelines for Success 141
MANAGING R& D
Sites for Research and Development 142
Management of Interface Between Research and Development 142
Organizational Structures 143
Case Study. Continuous Change and Improvement in Global R& D Management at ABB
Meetings of Corporate Research Directors 145
Program Management 145
Customer Visits 146
High-Risk/High-Impact Projects 146
Cross-Program Projects 146
PIPE 146
Business Impact Calculations 146
Radical Innovation 147
Strategic Cooperation with Universities 147
Virtual Global Labs 148
Concluding Remarks 148
Summary 148
References 149
Chapter 6: Process Thinking and Knowledge Management 150
Objectives 150
Processes and Work Flow 150
Processes 151
Work Flow 151
Case Study. ABB: Process Thinking in R Process) 152
Processes and Work Flow 152
Process Steps 152
Work Flow 152
The Challenge 152
Continuous Program Management—The Solution 153
The Tool-PIPE 153
Stage-Gatereg Process and the ABB Gate Model 155
Knowledge Management, A New Aspect of Organizational Thinking 157
Definition of Knowledge Management 158
Three Faces of Organizations 160
Creative, Competent Workforce 160
Mechanical Corporate Environment 161
Organic Corporate Environment 161
Dynamic Corporate Environment 162
Summary 163
References 164
Chapter 7: Financial Management of a Company 166
Objectives 166
The Essential Instruments to Navigate the Course of a Company 166
Financial Accounting 167
Balance Sheet: Where We are Now 168
Profit and Loss Account (Income Statement): Where We Have Been 169
What We Can Learn from Balance Sheet and Income Statement 173
Information Available by Studying the Annual Report 174
Financial Ratios 174
Warning Signals 176
Cash Flow and Funds Flow (Budget): Where We Are Going 176
Managerial Accounting 178
Tools of Managerial Accounting 178
Costs and Revenues 178
The Components of Cost 180
Determining the Product Costs for One Product 181
Determining the Product Costs for Several Products 181
Cost Accounting Systems 183
Full-Cost Accounting 183
Marginal Costing (Direct Costing) 184
Breakeven Analysis 186
Contribution 187
Margin of Safety 188
Final Remarks and Key Learning Points 190
Investment Decisions: Capital Budgeting 191
Economic Parameters for an Investment Appraisal 192
Cost of Investment 193
Economic Benefit 193
Utilization Period 193
Income from Liquidation (Resale Value) 193
Time Value of Money 193
Risk 194
Methods Used in Capital Budgeting 194
Decision Criteria for Investments 195
Payback Calculation 195
Net Present Value Method 198
Internal Rate of Return 200
Profitability of Investment Projects 203
Risk and Uncertainty 203
Case Study. ZnO Varistors: NPV Comparison Between In-house R& D and Licensing
Discussion 205
Conclusion 206
Analogy to Government Funding of High-risk Projects 206
Summary 206
References 207
Chapter 8: The Product/Market Matrix 208
Objectives 208
Growth Matrix 208
Market Penetration 209
New Product Development 210
Case Study. High-Temperature Superconductors: Technology Push 211
Introduction 211
R& D at ABB
American Superconductors Corporation 217
Case Study. Lanthanum Oxide-Molybdenum Cathodes: Incomplete Target Specification 221
From Specification to Concept 221
Manufacturing Challenge 223
Lifetime Optimization 223
Lessons Learned 224
Case Study. Nanosphere: Nanotechnology in Textiles by Subcontracting R& D (Personal Communication with Norbert W. Winterbe...
Schoeller Technologies AG 225
The Lotus Effect as a Source of Innovation 225
History of NanoSpherereg [12] 226
Learning Points 228
Market Development 229
Diversification 229
Case Study. Liquid Crystal Display at Brown Boveri: A Too-Expensive Commercial Product Followed by Successful Licensing... 230
Learning Points 232
Summary 232
References 233
Chapter 9: New Ventures 236
Objectives 236
Requirements for Success 236
Market Focus, Financial Foresight, and a Top Management Team 237
Diversification Within an Existing Company Leading to a New Venture 237
Case Study. Shape Memory Alloys Used in Stents [Personal Interviews with J. C. Palmatz, T. Duerig, D. Stöckel, and R. B. ... 238
The Story of Stent Development by Julio C. Palmaz 240
Nitinol Devices and Components 242
Learning Points from this Case 248
Case Study. Metoxit: High-strength Ceramics in Biomedical Applications [Personal Interview with W. Rieger] 248
Metoxit 248
From Innovation and Diversification to Startup in Alusuisse 250
Starting a New Venture from a New Technology 255
Case Study. Amroy: Building a Business Around Carbon Nanotubes (Personal Interview with P. Keinänen) 255
Technology Push or Market Pull 257
Funding of the Company 257
Supplier of CNT 257
Production and Sales Growth 257
Growth Strategy and Main Risks 257
Patent Situation and Competing Technologies 258
Learning Points 258
Case Study. Day4Energy: From Auctioning Off a New Technology to Setting Up In-house Manufacturing [Personal Interviews ... 258
Photovoltaic Technology 259
History of Day4Energy 259
Specifics of the Day4 Electrode 261
Further Development 262
Learning Experiences 262
Summary 263
References 263
Chapter 10: The Human Factor in Management 264
Objectives 264
Leading or Being Led: Analogy Between Mountain Climbing and Management 264
Tools to Measure Our Capabilities and Learn about Our Preferences (Psychometric Instruments) 266
Emotional Intelligence (EI) 268
The Emotional Competence Framework 269
The Myers-Briggs Type Indicator (MBTI) 275
The Hermann Brain Dominance Instrumentreg (HBDI)reg 277
Important Aspects in Management 278
The Role of Intuition Versus Rational Decision Making 278
Managing People Well 283
The Importance of Delegation 284
The Contribution of Consultants 285
Summary 286
References 287
Index 
290