‘How Did I Get Here?’ (podcast interview)

If you ever wondered ‘How Did I Get Here?’ – Here is a recent interview I gave that may be helpful if your early in your career.

Did you ever wonder ‘How Did I Get Here?’ (link) – This is a recent interview I gave that may be helpful if you are starting your career.

Listen to this short podcast interview series by Jason Fish on anchor.fm – listeners can also find it on Apple Podcasts, Spotify, and many other listening platforms. Enjoy! ##careerpaths #innovatorsmindset #orgchanger

 

IoT in pharma manufacturing changes company culture

Digital transformation comes with unforeseen yet sometimes very beneficial consequences. Who would have guessed that introducing IoT (Internet of Things) to pharmaceutical manufacturing could have a broader transformational impact on a traditionally conservative company culture?

Conservative Pharma Industry

As a bit of background information, there are many reasons why the pharmaceutical industry tends to be more risk-averse than others. Here are some key considerations:

  • Long-term investment:
    Developing an innovative new drug easily takes 10 years and costs $2.6Bn upfront (according to the Pharmaceutical Research and Manufacturers of America, PhRMA) before the actual product reaches the market. Pharmaceutical development remains a high-cost, high-risk business where mistakes are punished harshly and can ruin a company.
  • Regulated industry
    Regulatory authorities, such as the Food and Drug Administration (FDA) in the United States and corresponding agencies around the world, closely inspect every aspect of the development, manufacturing, and marketing of medicinal drug products from pharma companies. If a company is found out of compliance with Good Manufacturing Practices (GMP), severe financial penalties can be imposed and drastic consequences loom – including shutting down the business altogether.
  • Human lives are at stake
    Pharmaceutical manufacturing is where the rubber hits the road: Any problems in the manufacturing process can easily affect product quality and thereby directly threaten the health and lives of patients. Every facet must be closely observed, and regulatory inspections are frequent and thorough. Therefore, changes to the manufacturing environment are done most reluctantly by companies to minimize risks.

The burden from these limitations weighs heavy on the organization and lends itself to a conservative mindset and cautious approach. Change is not always welcome as it induces risk that could jeopardize operations and outcomes.

Moving to IoT

The Internet of Things (IoT) is more than just a bunch of devises and sensors that communicate with each other and generate a constant stream of data: IoT affects not only how we (make things) work but can also affect how we think and the foundation for our decision-making.

The traditional process in pharmaceutical manufacturing produces batches of product. It requires many human process steps from preparing and calibrating machinery, running the batch, examining the quality and then cleaning and preparing the equipment again for the next batch of the same or an entirely different product. During the process, devices collect data in their own ‑often proprietary‑ data formats that may be hard to access. The data has to be collected, combined and interpreted in a time-consuming process full of interpretation barriers and prone to human error. Even worse, “over 70% of the data in manufacturing is never touched” according to the CEO of Bigfinite, an IoT provider, and certainly not timely. This comes at a cost as this example shows: An American pharma company reportedly lost $20 million worth of product when a $3,500 vacuum pump broke down.

Around 30% of the Top 20 pharma companies started introducing IoT in their pharmaceutical manufacturing (according to GEP, a supply-chain advisory firm) to enable faster and continuous data collection from several processes for real-time monitoring, integrated analytics, and more timely decision-making. The paramount goal was to meet regulatory demand, such as the FDA requirement for continued process verification.

What comes with IoT

However, IoT relies on Cloud computing to provide digital connectivity across the entire supply chain from production to market and across plants. IoT Cloud computing may come with the necessity to use third-party-run servers for data storage and calculations raising the all too familiar fears of pharma managers and employees. Often enough it is the employees who interpret regulatory guidance to narrowly and don’t dare to rock the boat by changing the current GMP (cGMP) out of inflated data security concerns and the doomy risk of falling out of compliance.

While care certainly needs to be taken when implementing the new technology and while processes need to remain compliant, the FDA has already shown flexibility and set a precedence in approving the shift from batch to continuous manufacturing for Johnson&Johnson’s HIV drug PREZISTA.

More recently, the regulatory concern no longer seems paramount. Instead, management understands that IoT opens the door to massive and much-needed cost savings, shorter cycle time, right-sizing operations, increased productivity and higher competitiveness in the highly competitive pharmaceutical market arena.

People transformation beyond digital

Interestingly, all these more technical aspects can distract from how IoT in pharmaceutical manufacturing can lead to a broader shift of mindset throughout the organization:

Sharing and compiling formerly compartmentalized data across different parts of an organizational practically breaks the well-established and well-protected silos in many organizations. Suddenly, everyone seems connected to everyone else in the company and departmental borders fall while the process becomes visible and more transparent in real-time.

The fundamental shift with IoT and Cloud computing forces management and workers to adapt to the new technology and to connect with others outside their immediate organizational silo. The newly integrated informatics can include Enterprise Resource Planning (ERP) and financial systems. Sharing the data trove happens not only within a manufacturing plant but also across 25 plants at Pfizer, for example.

The technology-induced visibility and management of the manufacturing process challenges the traditional mode of operation and encourages employees trying out something new. If managed well, this mindset shift can be used to crack the barriers and drive a favorable cultural change throughout the organization. It enables but also pushes employees to continuously improve manufacturing operations while it also translates and proliferates into all other aspects of their work.

Summary

IoT technology in pharmaceutical manufacturing not only improves the productivity and competitiveness while maintaining regulatory compliance but also challenges and steers employee mindset away from overly conservative restraint toward collaboration and continuous improvement – and thereby shifts the organizational in favorable directions.

Intrapreneurship Case Study at the Foreign Trade University (FTU), Vietnam

Students of the Creativity, Innovation and New Value course at Colorado State University discuss the popular teaching case study “Boehringer Ingelheim: Leading Innovation” (available at Harvard Business Review (HBR) and the Ivey Business School) with intrapreneur Stephan Klaschka.

Intrapreneurship Case Study at the Foreign Trade University (FTU), 

As a cooperation between Colorado State University (CSU) and the Foreign Trade University (FTU) in Hanoi, Vietnam, FTU students are tasked to develop an opportunity in a team and conduct a feasibility analysis on the opportunity that they present to the class on June 4, 2018.

I will join the students and visiting CSU professor Robert Mitchell for a live discussion of the teaching case study Boehringer Ingelheim: Leading Innovation, which is available at Harvard Business Review (HBR) and the Ivey Business School,

In this teaching case study, the case writers Professor J. Robert Mitchell, Ph.D., and Ramasastry Chandrasekhar, of Ivey Business School, follow the footsteps of Stephan Klaschka’s intrapreneurial approach to innovation within a global pharmaceutical company (FORTUNE Global 500, Top 20 Pharma).

This intrapreneurship teaching case study is used by staff and students of Intrapreneurship and Innovation in business schools around the world. and features my career as an Intrapreneur at a major pharmaceutical company.

HBR-logoIvey-logo

Discussing HBR Intrapreneuring Case Study “Leading Innovation” at CSU

Students of the Creativity, Innovation and New Value course at Colorado State University discuss the popular teaching case study “Boehringer Ingelheim: Leading Innovation” (available at Harvard Business Review (HBR) and the Ivey Business School) with intrapreneur Stephan Klaschka.

HBR-logo 150x150

On April 26, 2018, students of the Creativity, Innovation and New Value course at Colorado State University discuss the popular teaching case study “Boehringer Ingelheim: Leading Innovation” (available at Harvard Business Review (HBR) and the Ivey Business School) with intrapreneur Stephan Klaschka.


The case writers Professor J. Robert Mitchell, Ph.D., and Ramasastry Ivey-logoChandrasekhar, of Ivey Business School, follow the footsteps of Stephan’s intrapreneurial approach to innovation from within a global pharmaceutical company (FORTUNE Global 500, Top 20 Pharma).  This intrapreneurship teaching case study is used by staff and students of Intrapreneurship and Innovation in business schools around the world.  It is available for download at

Will technology always outpace us? – What we can do to keep up

We measure ‘progress’ by the speed of technological progress: The more inventions and the faster our technology evolves the more progress or society makes, right?
But we also feel like drowning in the flood of ever-more technology pouring over us.
This is not about surrender but of awareness and taking control again.

We measure ‘progress’ by the speed of technological progress: The more inventions and the faster our technology evolves the more progress or society makes, right?
But we also feel like drowning in the flood of ever-more technology pouring over us.

This is not about surrender but of awareness and taking control again.

In my linked article on LinkedIn, I researched some background in a quest to find meaning – and a way out:  How Virtual Distance beats the ‘Culture Lag’ of Technology

Please share your thoughts and experiences too – thanks.

Intrapreneurship: Designing sustainable innovation ecosystems! – Executive Webinars in Oct/Nov 2017

Intrapreneurship: Designing sustainable innovation ecosystems! – New Executive Webinar Series in Oct/Nov 2017

Register now for my new Intrapreneurship series of Executive Webinars starting in October 2017 and powered by Ijona Skills:

  1. The Power of Intrapreneurship – an Introduction
    Online only October 18, 2017 – recording available
  2. “Where to start?” – Designing a sustainable innovation ecosystem in a large company for exponential returns
    Online only – October 31, 2017 – coming up
  3. “Against all Odds” – Implementing a sustainable innovation ecosystem in a large company
    Online only – November 15, 2017

The three webinars build upon each other and provided maximum value when attended in this sequence (they are being recorded, so no you can catch up if you missed one)

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 electric 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 a 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 breaking-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 with 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 the 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 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 to the general public.

Note that mid-size companies comprise 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 of hidden champions that are leading global players:

  • Dixi / ToiToi (portable toilets)
  • Sennheiser (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 of 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 a creative influx from the outside.  Since meaningful innovation ‘happens’ at the crossroads 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 easily to a 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 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 off 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 (that recently translated into GDPR, Europe’s new General Data Protection Regulation).  The 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 are 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 the 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 a personal failure of the leader.  It is much more seen as a learning experience, while a German CEO gets easily branded a 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 inbred 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 a 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.


 

 

Join my Online Workshop on Project and Portfolio Management in Pharma, Dec. 10, 2015 @OrgChanger

Join my Workshop at the European Project & Portfolio Management in the Pharmaceutical Industry online conference from 2:00 – 5:30 PM CET on December 10, 2015.

This workshop-based online conference (see how an online conference works) serves as an interactive platform designed to assist industry professionals involved in project and portfolio management in acquiring practical skills and knowledge.

Infographic_Project and Portfolio in Pharma

Take my Intrapreneuring workshop at ePharma Summit! NYC, 24-Feb-2015

Join me for my intrapreneuring workshop at the 2015 ePharma Summit in New York City!


 Be Heard! A Hands-On Workshop for Future Leaders Ready to Take Action

When:     Tuesday, February 24, 2015 at 1:30PM
Where:    New York Hilton Midtown, 1335 Avenue of Americas, New York, NY 10019
Sign up using the discount code XP2006SPKSK and save 15% off the standard registration rates!

Beginning in 2012, Boehringer Ingelheim launched a global initiative to encourage more intrapreneurial spirit of employees and offer them a platform that enables generating and implementing disruptive innovations across the organization to either decrease expenditures or increase revenue. With a focus on developing and executing game changing ideas, part of this initiative is focused on providing associate-level executives with the tools they need to evaluate their ideas and best position them when pitching them to more senior management.

  • Frame your idea for a successful pitch
  • Create a compelling business case that resonates with senior management
  • Break through the red tape: navigating around internal barriers and finding allies

 

About ePharma

ePharma is the incubator for cultivating a diverse and innovative digital marketing plan to help you move your commercial initiatives forward.

Augment your expertise, dissect current biopharma trends, and uncover new opportunities at ePharma. Get the tools to build robust, cost efficient marketing campaigns over three days of tactical and strategic learning.

New for 2015:

  • Discover how innovations such as wearables, mHealth apps and nano technology impact health and patient care and what the best plays are for an integrated marketing campaign.
  • Learn how to pitch your entrepreneur product to a venture capitalist. Highlights include a checklist for sellers to address the needs of users.
  • Hear out-of-industry case studies from retail and publishing highlighting the success of using digital and traditional mediums.

 

Join me at the 5th Annual Pharma PPM Toolbox in Basel/Switzerland, Mar. 6, 2015

Join me at the 5th Annual Pharma PPM Toolbox in Basel/Switzerland on March 5-6, 2015!

Presentation at 3pm on March 6, 2015

Come to discuss my talk about “Changing employee mindset to boost collaboration and engagement for extreme business results”

  • How to overcome innovation hurdles in large organizations
  • How to build an entrepreneurial culture within your company to respond to change quickly
  • Measuring success beyond money – behavior change for best practices and boosting ROI

Workshop at 3:30pm on March 6, 2015

And take my Intrapreneuring Workshop “Building an innovation framework to design, launch and execute business projects”
The workshop participants experience the role of an intrapreneur to bring a project to life using disruptive methods and collaboration.

  • Innovation Barriers and Assessment
  • Becoming an Intrapreneur
  • Resistance, Sponsor and Team
  • Prototyping, Pitching and Investor Insights
  • Implementation considerations

About the Conference

Pharma companies stand on a cross-road for a few years now.  They can choose to stick to their old ways that will probably slowly kill their business or successfully adapt to the reality of continuously shrinking pipelines and growing obstacles.

The 5th Annual Pharma PPM Toolbox will provide you with fresh ideas and solutions from experts who work hard to keep up with uncompromising market demands.

Eyeforpharma interview “Taking the entrepreneurial approach”

Read this insightful “Taking the entrepreneurial approach” interview conducted by Eyeforpharma on the impact of hierarchy and how executive mindset inhibits adapting to the rapidly changing commercial landscape.  It outlines how “intrapreneurs” and internal “angel investors” can get large, mature organizations moving again!

Read Intrapreneuring Case Study “Leading Innovation” by Ivey Business School!

The prestigious Ivey Business School of the Western University in Ontario, Canada, published an insightful new teaching case study on intrapreneuring and corporate innovation titled “Boehringer Ingelheim: Leading Innovation” in which the case writers, Professor J. Robert Mitchell, Ph.D., and Ramasastry Chandrasekhar, follow the footsteps of the newly appointed innovation director.

Meant to raise questions and serving as a learning opportunity for graduate students in academic program around the globe, this case study lifts the corporate curtain a bit to show how innovation through intrapreneuring really happens and decision points along the way.

Outline (by Ivey Publishing)

The newly appointed director of Innovation Management & Strategy at Boehringer Ingelheim, a German-based multinational pharmaceutical company, is finding his way forward in his firm’s new, first-of-its-kind role, which is central to the company’s growth rejuvenation strategy. His job has a threefold mandate: to build internal networks, to establish internal structures and to leverage internal ideas. His biggest challenge, however, may be transforming the organization’s DNA. The blockbuster business model that has characterized the company for decades is no longer appropriate. Instead, the firm needs to develop healthcare products available to end users over the counter. This shift in strategy requires innovative changes in distribution, delivery and customer focus. To accomplish this goal, he needs to institutionalize innovation so that it becomes sustainable. But in doing so, he must also identify the metrics for assessing progress. The case provides an opportunity for students to step into the shoes of an innovation leader, to develop an innovation roadmap for the organization in the face of uncertainty and to understand how to engage in innovation leadership at various levels of a global enterprise.

Learning Objective

This case has two key objectives. First, this case provides students an opportunity to grapple with the difficult decisions associated with innovation in an uncertain environment. Second, this case highlights that anyone has the ability to cultivate an entrepreneurial mindset and to lead innovation. The case divides the attributes of an innovation leader into five components: observing, questioning, experimenting, networking and associating. It shows the real-life experiences of a manager doing seemingly routine activities, who evolved into a leader who transformed the DNA of a global enterprise. The case also provides a template of the tasks, responsibilities and value-added changes as an individual moves progressively within an enterprise from an operations manager to a senior manager to an innovation leader. This case can be used either toward the beginning or toward the end of any course that addresses innovation and creative thinking in a large organization. At the beginning of a course, it illustrates the challenges of acting in the face of uncertainty in a large organization. At the end of a course, the case provides an opportunity for students to apply what they have learned about innovation, entrepreneurial thinking and innovation leadership.

‘School for Intrapreneurs” finalist in eyeforpharma awards 2015!

We are honored by eyeforpharma’s announcement for Boehringer Ingelheim “School for Intrapreneurs” to be a Finalist for yet another award: the prestigious eyeforpharma Philadelphia awards 2015 in the Most Impactful Emerging or Global Initiative category!

One juror, for example, believes the Boehringer Ingelheim School for Intrapreneurs adds value beyond the pill to patients and customers: “Great program that ensures that the company keeps up to date and a competitive edge. I also like that everybody has the opportunity to contribute and participate.”

The winners will be announced on April 7th during the upcoming eyeforpharma Philadelphia 2015 conference (from April 7-8th, 2015, Hyatt Regency Philadelphia at Penn’s Landing, Philadelphia, PA.), so join the conference and stay connected via Twitter at #efpPhilly

About the Awards

The eyeforpharma Philadelphia Awards recognize those in the pharmaceutical industry who are driving pharma forwards not just with higher short-term profits, but with better customer innovation, value and outcomes leading to longer-term success.

eyeforpharma’s mission is to make the pharmaceutical industry more open and valued, which means these awards are a literal translation of why we exist. It is our responsibility to shine a light on where pharma does well, to inspire others into similar or better action.

“Angel Investing as corporate venturing within a company” guest blog on CUREconnect

Angel Investing as corporate venturing within a company concludes the 3-posts mini-series as guest blogger for CURE.

However, it’s not over!  Please check in occasionally for more innovation and intrapreneuring-related posts in the future!

CURE serves as the bioscience cluster of Connecticut, a diverse network of small and large life and healthcare sciences companies, ranging in scope from therapeutics, to healthcare technology, to medical devices. Universities, government agencies, scientists, educators, mentors, students, entrepreneurs, business experts, service providers and investors join in to begin nucleate the breadth of the network.

As participants in CURE, we educate, cultivate entrepreneurship, support the build of bioscience companies and collaborate to ensure a sustainable, high-value bioscience and healthcare community that improves our quality of life and keeps the Connecticut community strong.