Join the Circle of Young Intrapreneurs NYC Chapter: Launch Event May 3, 2017

Circle of Young Intrapreneurs NYC Chapter

SIGN UP HERE for free tickets!

A movement designed to inspire, guide, develop & deliver purpose-driven business ideas from young social intrapreneurs inside corporate organizations globally.

We drive positive social change through business by creating a community of changemakers, supporting them with mentoring and advice from leading intrapreneurs, encouraging pan-industry collaboration to solve shared societal challenges and promote advocacy of social intrapreneurship.

Join us and make the business a force for good.

Join me at Singularity University’s first Germany Summit, Berlin, 20-21.Apr.16

Join me at Singularity University’s first Germany Summit, Berlin, 20-21.Apr.16

On April 20-21, 2016, Singularity University, the most innovative and forward-looking institution, has chosen to host their SingularityU Germany Summit in Berlin—one of the most vibrant cities in the world. SingularityU Germany Summit is a local Chapter and community organization of Singularity University. It is one of the largest two-day events in Europe aimed at bringing awareness about exponential technologies and their impact on business and policy to thought leaders and executives from breakthrough companies.

What can you expect at SingularityU Germany Summit?

Leading experts from the global high-tech community will present the latest trends and cutting-edge developments in Mobility, Organization, Manufacturing, Artificial Intelligence, Computing, Robotics, 3D Printing, Machine Learning and Design Thinking. Together we strive to inspire and empower European leaders and influencers in using exponential technologies to solve today’s most pressing issues. SingularityU Germany Summit is an ideal platform to network for both alumni as well as first time attendees, leaders, government representatives, entrepreneurs, investors, NGOs.

500 attendees ranging from CEOs to young innovators from across the globe are expected to attend the event. Together we will explore issues such as: How can technological evolution be transformed into a sustainable and value-based growth for any industry? What ethical standards and responsibilities do global leaders have to account for?

 

 

 

 

Digital Transformation at ‘Life-Science meets Telco7’ on April 14, 2016

Meet me in Bonn, Germany on April 14, 2016 for the 7th installation of DeTeCon’s Life-Science meets Telco series.

This year‘s event focuses on a very special aspect of the Digital Transformation – the cross-industry collaboration and exchange.

How can digitalization be implemented to make a difference in every patient’s life? What best practices from other industries can be transferred to the pharmaceutical and healthcare industries? These and many more questions we will answer at this year’s event.

You can expect a great atmosphere for networking as well as exciting discussions on:

  • What is the role of the Digital Transformation for Pharma?
  • Importance of the collaboration between Life Sciences & ICT: current changes in ICT.

Don’t miss this opportunity! Save the date and stay tuned for more information!

 

German Innovation Insider: Catch-Up in Mobility Arena

After exploring German innovation barriers to digital transformation. As a follow-up, let’s look at an example of a successful industry already known for high-tech. And which example would be more moving than the iconic German automotive industry?

Automotive, a moving example

We explored German innovation barriers to digital transformation in German Innovation Insider: The Brakes on Digital Innovation previously.  As a follow-up, let’s look at an example of a successful industry already known for German high-tech innovation: the iconic German automotive industry.

Automotive is the largest industrial sector in Germany.  Vehicles and parts make up some 20% of total German industry revenue with auto sales and exports worth 368 billion euros ($411 billion) in 2014.  Car-making is a German strong suit with luxury cars being the most profitable segment.

Electric Vehicles? – “Nein, Danke!”

Disruptive players emerged with electric car concepts for years. They were generally ignored by the established car makers despite the high eco-consciousness of German society in general.  The new technology was not considered a threat nor as profitable as the existing businesses.  So electrical vehicles were disregarded so not to disrupt or cannibalize the traditional business with combustion engine vehicles.

The influence of the car industry remains strong and has an outspoken lobby also in Germany.  This contributes to failing the German government’s announced goal of leading the electric mobility market with “one million electric vehicles on the road by 2020” since only 8,522 new electrical vehicles were registered in German in 2014 (up from under 3,000 in 2012).

2015Q1 ihs-automotive-electric-vehicles-ranked-by-country(businessinsider_com)
Germany ranks 6th in electric vehicle (EV) registrations by country in Q1/2015. EV registrations in percent of all vehicle registrations displayed.  (image: countrybusinessinsider.com)

Innovation Catch-up by the Automotive Industry

The game changed when disruptive niche player Tesla Motors started cutting into the highly profitable luxury car segment with its high-end and high-tech electric vehicles.  Tesla also receives outstanding customer service reviews in key markets such as the United States.  Suddenly German car builders scramble to catch up to protect their stakes: everyone wants to offer at least one electrical vehicle in their luxury car portfolio as a ‘Tesla Killer.’ Finally, negligent or halfhearted governmental support of the program just changed course by offering temporary tax breaks and other incentives.

Growing out of the Niche

Now, disruptive innovation may not make cars obsolete.  We still want to get from A to B, so incrementally improved cars (better safety, quality components, etc.) will remain in demand and customers will continue to pay premium for luxury models. Take a closer look at Tesla though to see the difference of their bigger and bolder view: the Model S versions, for example, are constructed all the same except for the model sticker on the back.

The true battlefield is no longer the physical car alone.  From the steering unit to the break system Tesla’s are built from pre-assembled, tried-and-tested components from quality manufacturers; including parts from some German hidden champions such as Stabilus (liftgate gas spring) and ZF Lenksysteme (steering mechanism).

tesla-suppliers-2013(insideevs_com)
Model S relies on quality parts by suppliers  (image: insideevs.com)

Software is Pivotal

Nonetheless, it’s the software configuration in the Model S that makes the difference from regulating the available battery capacity (extended range) to other features (acceleration) that become available to its passengers.  Tesla added ‘Autopilot’ functionality and a self-parking feature to its fleet just recently – simply via remote software update. Voila!

Reaching beyond the individual vehicle the software running the car became the key to future mobility.  The question becomes who will own the car operating system of the future?  Chances are it’s the exponential silicon players from sunny California who are best positioned, experienced and deeply understand both, digital integration and exponential innovation.

Mercedes meets the software threat and opportunity by aiming to control this pivotal technology, which may otherwise be seized by more avid digital players such as Google, Microsoft or even Tesla.  Mercedes made some progress when it just announced its new E-class vehicles connecting and sharing relevant information among each other.

Out for the kill?

German luxury car-makers proudly announce their future ‘Tesla Killers’ playing catch-up with high-end electric cars of their own, such as Audi’s Q7 E-TRON Quattro, BMW’s i5 or Porsche’s performance vehicle Mission E (the latter two not available before 2019).  Tesla hardware is even coming under attack with future competition getting ready; among them  Silicon Valley’ Atieva and Tesla clones from China.

In true sports-car fashion, Porsche’s marketing highlights 600hp for 0-to-60mph acceleration in under 3.5 seconds. Tesla already achieves this mark today. So where is the actual ‘kill’?

Porsche unvels Tesla Killer
Porsche unveils ‘Tesla Killer’  (image: CNBC)

The Mobility Arena

The real question aims at the next step: where will the drivers of the new Audi’s, BMW’s and Porsche’s charge their batteries on the road?

Looking at future mobility as an arena rather than just vehicles, Tesla’s venture also crossed other industries such as the critical battery business in partnership with Panasonic.  In addition, Tesla offers a wide-cast net of ‘SuperCharger’ power-stations free of charge for its customers at many highway rest-stops and gas-stations positioned to allow Tesla drivers to reach most areas of the continental U.S. already today.

Tesla Supercharger ranges (reddit_com)
Tesla Supercharger station with vehicle range  (reddit.com)

Fueling the Future

Here, Tesla secured first-mover advantage in securing the precious real-estate needed at busy rest-stops.  In the long run, it appears doubtful that rest-stops will grant additional dedicated slots with proprietary pumps to every car-maker to recharge their line of vehicles.

Tesla SuperChargers
Tesla SuperChargers  (image: teslamotors.com)

So the German car manufacturers may be forced to cut a deal with Tesla adopting the Tesla technology and paying for using Tesla’s high-speed pump space on-the-go in the future.  Tesla even announced it will not enforce patent protection for anyone who, in good faith, wants to use the Tesla technology, which may smoothen over the adoption by other car-makers.

Outlook

Looking into the crystal ball, the automotive industry is not just about introducing more electric vehicles, but is morphs to become a new mobility arena as Tesla is demonstrating.  Being still at the early stage of an exponential growth curve, Teslas are certainly not cheap to buy – yet.

Looking at  electric vehicles simply as a sophisticated hardware components, however, we may just enter a scenario in the not-too-distant future that reminds of Amazon’s successful strategy: giving the Kindle eReader (hardware) devices away cheap. Amazon is not interested in hardware but the content, the vast library of eBooks (software) fueling the customers’ demand, which makes all the difference and holds the keys to a proprietary, digital kingdom with recurring high revenues.

kindle-fire(michaelhyatt.com)
Amazon’s Kindle hardware is fueled by eBooks  (image: michaelhyatt.com)

German Innovation Insider: Holding the Brakes on Digital Innovation

German innovation gets trapped in the very mentality focusing on building quality products ‘Made in Germany’ that the country got well known for. Holding on to vertical product improvement, however, obstructs crossing industry barriers, convergence, developing game-changing business models, and coming up with breakthrough innovations with potential for exponential growth and returns.

Germany – Land of the ‘Hidden Champions’

A recent research study of the Centre for European Economic Research confirmed Germany leading by far with 1,550 hidden champions.  Companies are commonly considered a hidden champion if they are no. 1 or 2 on the world market, make less than EUR 1.5b revenue and their name is not overly well unknown in the general public.

Note that mid-size companies make up 80%(!) of German industry and resemble the backbone of the German economy altogether. According to the Berlin School of Economics and Law, 90% are focused on B2B.

germany-celebrates_(latintimes.com)
Champions not only in world football (image: latintimes.com)

See if you recognize a few examples for hidden champions that are leading global players:

  • Dixi / ToiToi (portable toilets)
  • Spennheiser (headphones)
  • EBM-Papst (motor and fan manufacturer)
  • Enercon (wind energy)
  • Krones (bottling machines)
  • Recaro (car and airplane seats)
  • Trumpf (laser cutters)

Inside the Vertical Tunnel View

Among the 1.500+ market leaders only two German companies are leading software companies (Software AG and SAP).  The vast majority focuses on more tangible product innovation leaving this digital industry somewhat isolated, underdeveloped and vulnerable like an economy’s Achilles’ Heel.

You get a good sense for a vertical bias in product innovation, when you read German open job postings for innovation lead position of sorts:  As an innovator in an automotive company, you require a solid background in engine engineering, for example, or as an innovation leader in a chemical consumer goods company, you will not be hired without in-depth knowledge of adhesives, for example.  It becomes painfully obvious how the vertical product innovation fosters a mindset of inbred solutions and can miss out on transformative opportunities beyond the own domain, bridging and converging industries.

3D-printed-German-car(partsolutions.com)
3D-printed car (image: carpartsolutions.com)

Point being: Innovators are usually hired from within a vertical industry. This leaves little room for creative influx from the outside.  Since meaningful innovation ‘happens’ at the cross-roads of disciplines in a horizontal cross- pollination of different industries and domains. This inflexible German practice lends itself to incremental improvement of products rather than disruptive transformation of businesses, entire industries or even across industry arenas.  Within a vertical mindset, ecosystem cross-pollination withers and innovators are less suited, prepared, capable, or enabled to disrupt.

Digital Transformation “Made in Silicon Valley”

When it comes to digital transformation, German companies got disrupted and steamrolled mostly by large-scale digital disruptors coming out of the United States from either California or the East coast technology ecosystems with huge global impact and a different approach:

  • The world’s largest taxi service owns no taxis (Uber)
  • The most popular media owner creates no content (Facebook)
  • The largest movie house owns no cinemas (Netflix)
  • The largest accommodation provider owns no real-estate (Airbnb)
  • The largest software vendors don’t write apps (Apple, Google) and so on.

The above examples differ from traditional products not only by bold out-of-the-box thinking but also by paying close attention to the customer.  Their business models rest firmly in the digital world with a software business and an internet backbone.

Uber and Airbnb offer digital platforms – that’s it, no tangible goods.  Nonetheless, they shake up the established industries of transportation and hospitality in ways unheard of.  They also reap exponential returns by creating new digital arenas that generate highest recurring revenue in the digital space.

Digital Industry (telecitygroup.com)
Digital business has arrived (image: telecitygroup.com)

Missing the Digital Train?

Back in Germany, its 1,500+ hidden champions flourish in a robust economy, so Germany must be doing something right overall with a vertical focus set on tangible quality products within industries.  Good money is still made in Germany by holding a steady course of vertical product improvement.

This practice also goes hand-in-hand in hand with protecting and not challenging enough the traditional sales-driven business models to avoid cannibalizing the status quo for next generation innovations.  It reminds of the Kodak-Eastman story having invented the first digital camera but rejecting the technology in order to protect the business around the existing analog film products – and we all know what happened to Kodak.

A Digital Transformation Divide

Truly putting the customer in the center and embracing digital business requires a radical transformation of the existing business and its operations.  The critical interface between IT and Marketing, for example, often is not well developed in Germany, where traditional companies lack understanding of the digital potential and struggle with developing new, digital business models in time.

It is not a question but painfully obvious that -with the current mindset and strategy- Germany misses the train on digital transformation.  While the world moves online, many companies in Germany failed or simply ignored the emerging technological opportunities to develop digital business models consequently, in a structured fashion and timely.

Failure_to_Innovate(bobmaconbusiness_com)
Germany is missing the digital innovation train. (image: bobmaconbusiness.com)

In fact, German companies practically ‘gave up’ across entire industries including media, travel and retail.  In a recent wake-up call, the German government asked companies and industries to focus on digital transformation in a widely proclaimed initiative called “Industrie 4.0” ‑ a race to catch up internationally.  And catching up is much needed: the narrow German ‘inside focus’ presents a vulnerability to be exploited by foreign disruptive players.  The gap widens steadily as the competitors advance fast, build up huge resources and become increasingly experienced to develop and apply digital transformation with new business models.

pessimism_quote(notable-quotes.com)
(image: notable-quotes.com)

Pessimism with an Insurance Mindset

The high level of disruption and uncertainty does not come easy to less flexible German mindset:  Having experienced hardship many times during the not-all-that-distant history, Germans tend to seek and value predictability and safety.  Anxiety and fear of the unknown forms an undercurrent in the mindset of German society, which is expressed by seeking refuge in insurance policies to prepare for any unknown future events.

As an example, not only do Germans over-insure their daily lives with a myriad of insurances, Germany also holds on to one of the largest amounts of hospital beds and bunkers per capita. You find more hospital capacity in the Berlin-area alone than in all of their neighboring country, The Netherlands!

In general, start-up funding is not as easy to come by as in the U.S., for example, where venture funding is a more common practice.  When I arrived in Germany a year ago, I came across a serious government program that ‘supported’ a new start-up or entrepreneurs with grants tied to a projected positive return-on-investment (ROI) within the first year.  Now, building a profitable business from scratch within in year is an unrealistic goal.  Consequently, the desperate entrepreneur in need of funding would have to submit a bogus business plan right of the bat, which is a set-up for disappointment down the road.  So, either the government program is not meant serious (unlikely) or is designed by people not knowing the first thing about starting a business (likely).

senior-woman-confused-by-tablet-computer(sheknows.com)
Reluctance to embrace technology? (image: sheknows.com)

Techno-Fear and Over-regulation

Overall, the German mindset tends to be more critical regarding new and unfamiliar technology.  Seeking to avoid risk comes with a tendency to ‘over-regulate’ in the sense of applying regulations just because it is possible to regulate rather than because it is necessary to come up with regulation.

Since a long time, Germany has the strictest data privacy laws.  Domestic law protects the individual by granting them the right to control their personal data online and offline.  These regulations are rooted in the country’s dark experiences during its Nazi-past but is also is a reflection of the outspoken suspicion among the broader population towards digital data technologies and their application.  Thus, Germans tend to be more reluctant to share personal data on social media out of fear of exposure and losing control.

The protective (domestic) legislation means well but can only be effective in a closed system, which the (global) internet is not.  In a digital world international boundaries are artificial.  Given the nature and proliferation of digital technology and interconnectivity of people around the globe, keeping up the aspired high standards proves increasingly cumbersome if not impossible.

The German island can hardly be defended effectively over time.  It may protect the citizens from some harm locally but in return also isolates them and denies them access to the benefits of a technology that ever progresses globally.

Losing the Entrepreneurial Spirit

Given a rather pessimistic Germany mindset that is reluctant to fully immerse in the digital world, digital-resistant citizens appear poorly prepared for ‘moonshot’ visions, embracing the opportunities of Big Data Analytics or the vast potential of the Internet-of-Things (IoT).

German innovation death(deskmag_com)
Reluctant to start up a business (image: deskmag.com)

The present German ‘generation of heirs’ inherits the wealth created by their parents’ generation during the famous post-WWII decades known as the economic “Wirtschaftswunder” boom.  Very much in contrast to the U.S. or Asia, many Germans do not share the venturing spirit anymore.  They show reluctance to trying out something new such as building a business as an entrepreneur for several reasons:

  • Firstly, Germans tend to prefer a detailed plan before actively exploring an opportunity and strictly sticking to the plan during implementation. Besides the favorable element of thorough planning, this approach also reflects a deeper fear of failure and seeking a sense of security and predictability.  Deviating from the plan is often interpreted as a failure.
    But then, which plan ever is perfect and stands the test of a dynamic reality? Sadly, the debate then quickly tends to turn to finding a culprit when things go sour rather than making adjustments to keep moving on.
  • Secondly, German hesitation and even a good amount of pessimism roots in stigma of a business failure, which seems to stick more in German society than in the United States. More than 9 out of 10 start-ups fail, but when a startup fails in the U.S this does not automatically translate into personal failure of the leader.  It is much more seen as a learning experience, while a German CEO gets easily branded loser.
    Surrounded by the ‘insurance thinking’ mentioned earlier it will be hard for the former CEO finding support for a future business or even employment in Germany after a venture failed. In consequence the German CEO is more motivated to beat a dead horse rather than cutting the losses and move on.

Summary – Brakes on Digital Innovation in Germany

For all these reasons, visions tend to be smaller in Germany.  They are more designed to control risk than seizing exponential business opportunities.  Thinking too small, not disruptive enough and too focused within an industry prohibits to compete with the digital global players that emerged with exponential business models, such as the Googles, Apples, Amazons, Airbnbs, Ubers, and so on out there.

Brake-damage(dba.com.au)
Brake damage ahead! (image: dba.com.au)

What keeps the brakes on the German innovation machine is the in-bred mindset and vertical tunnel vision with a focus more on products instead of customers, and the risk-avoidance and fear of applying digital technology to its full potential.  It traps many German companies in a self-limiting disadvantage compared to American or Asian competitors, which prove more venturous, flexible and generally optimistic.

The U.S., in particular, entrepreneurs come not only with a more flexible and optimistic mindset, but can also tap into unique startup eco-systems in place (Silicon Valley, Boston and NYC areas primarily) with easy access to bright minds, cross-pollination and venture capital.

Outlook

There remains demand for physical, quality products in the future, such as the machinery, tools or cars we value today as Made in Germany, so the 1,500+ hidden champions look into a bright future.  Their reluctance to embrace the digital age, however, and transform to embrace new digital business models, however, may steadily push them to the sidelines as industries and arenas change beyond their input or control.

Join Masterclass webinar: “Beyond-the-Pill” Disruptive Innovation within Pharma, Feb. 23, 2016

The pharmaceutical industry struggles with the fundamental changes of the healthcare systems worldwide. For many reasons, the traditional mindset and business models of the past are failing today. New approaches are needed for innovation “beyond the pill” to stay profitable and ahead of competitors.

But how to change a large organization bottom up and from within?

Sign up for the Masterclass: “Beyond-the-Pill” Disruptive Innovation within the Pharmaceutical Industry webinar hosted by the Intrapreneurship Conference at 5-7pm CET (11am-1pm ET) on February 23, 2016!

Intrapreneurship Conference

Why?  The pharmaceutical industry struggles with the fundamental changes of the healthcare systems worldwide. For many reasons, the traditional mindset and the business models of the past are failing. New approaches are needed for innovation “beyond the pill” to stay profitable and ahead of competitors.

But how to change a large organization bottom up and from within?

This session offers you a unique birds-eye and worms-eye view on pharma innovation and its shortcomings under the current paradigm, before diving into real-life case studies of intrapreneuring, disruptive transformation and strategic innovations within and beyond a Global FORTUNE 500 pharma company.

Join this masterclass and learn on how to bring intrapreneuring and transformation to life in a large pharma company.

Driving Innovation in Healthcare: New Executive Intrapreneuring Workshop

Experience the new two-day intrapreneurial journey to transform you organization with exponential results!

Don’t miss EBCG’s intense and hands-on Intrapreneuring Workshop “Building an innovation framework to design, launch and execute business projects” in the Driving Innovation in Healthcare series in the “Golden City” of Prague, Czech Republic, on April 6-7, 2016.

Sign up before December 23, 2015, to save during the special promotion period.