The German drive technology industry is dominated from SME's and must supply its
products to customers around the world. In addition this industrial segment is challenged
by competitors from many other countries as well as from customers with very
different needs. Therefore SME's are faced to two main questions. First challenging
question "what will be the best strategy to create competitive advantage?", second:
"what are the necessities to carry out this strategy effectively and efficiently?".
1.2 Aim of this work
Based on an analysis of the industrial segment the structure and essential needs and
boundary conditions will be derived. In addition a suitable strategy to reach a competitive
advantage will be analyzed and assessed. For this strategy a suitable innovation
management process as well as a toolbox for SME's to implement this process into the
company will be developed.[...]
Table of Contents
1 INTRODUCTION
1.1 PROBLEM DESCRIPTION
1.2 AIM OF THIS WORK
1.3 RESEARCH METHOD AND PROCEEDINGS
2 DRIVE TECHNOLOGY INDUSTRY, ECONOMIC RELATIONS AND STRUCTURE
2.1 GERMAN MECHANICAL ENGINEERING INDUSTRY
2.2 GERMAN DRIVE TECHNOLOGY INDUSTRY
2.3 COMPANY STRUCTURES
2.3.1 Drive technology industry in general
2.3.2 Example ball bearing companies
2.4 CONCLUSIONS FOR GERMAN DRIVE TECHNOLOGY INDUSTRY
3 STRATEGIES FOR SME'S IN DRIVE TECHNOLOGY INDUSTRY
3.1 OPTIONS FOR COMPETITIVE ADVANTAGE
3.1.1 General overview
3.1.2 Competitive products
3.1.2.1 Cost leadership
3.1.2.2 Differentiation
3.1.2.3 Generic strategies
3.1.2.4 General remarks
3.1.2.5 Product-market growth strategies
3.1.3 Selection of a strategy for SME's in German drive technology industry
3.1.3.1 Assessment of strategies
3.1.3.2 Conclusion for selected strategy
3.1.3.3 Practical experience for SME's with selected strategy
4 INNOVATION MANAGEMENT PROCESS FOR SME'S
4.1 BASICS OF INNOVATION MANAGEMENT
4.1.1 General remarks
4.1.2 Innovation process
4.1.3 Interactions with other processes
4.1.4 Conclusions for the innovation management process
4.2 MAIN APPROACH OF INNOVATION MANAGEMENT FOR SME'S
5 IDEA MANAGEMENT
5.1 METHODS FOR IDEA CREATION INSIDE SME'S
5.2 METHODS FOR IDEA CREATION OUTSIDE SME'S
5.3 PROPOSAL FOR ASSESSMENT OF IDEAS
6 PROJECT MANAGEMENT
7 INNOVATION CONTROLLING
7.1 INTERNAL VIEW OF ENTERPRISES TO INNOVATIONS
7.1.1 Approaches for accounting of innovation projects
7.1.2 Key data for innovations
7.2 INNOVATIONS IN THE SCOPE OF GCC
7.3 PROPOSAL FOR INNOVATION SUCCESS CALCULATION
8 PATENT MANAGEMENT
8.1 ASSESSMENT OF VALUES
8.2 ASSESSMENT FOR PATENT APPLICATION
8.2.1 Necessity of patents
8.2.2 Proposal for patent management in SME's
9 SUMMARY
10 CONCLUSION
11 APPENDIX
11.1 PRINCIPALS OF THE USED STATISTICS
11.1.1 Multivariate methods for the analysis
11.1.2 Specific values
11.1.2.1 Frequency distribution
11.1.2.2 Position
11.1.2.3 Variation
11.1.2.4 Relations
11.1.3 Multiple linear regression
11.2 DETAILED REGRESSION ANALYSIS OF MECHANICAL ENGINEERING INDUSTRY
11.3 DETAILED REGRESSION ANALYSIS OF DRIVE TECHNOLOGY INDUSTRY
11.4 DATA OF BALL BEARING COMPANIES
11.5 INNOVATION SUCCESS CALCULATION SHEET
11.6 INNOVATION MANAGEMENT PROCESS FOR SME'S
Research Objectives and Themes
The primary aim of this work is to analyze the industrial structure of the German drive technology sector to derive essential needs and boundary conditions. Based on this, the thesis seeks to identify and assess a suitable competitive strategy and develop an innovation management process and toolbox specifically tailored for Small and Medium Enterprises (SMEs) to achieve a sustainable competitive advantage.
- Strategic market positioning and competitive advantage for SMEs in the drive technology industry.
- Development of a systematic innovation management process integrated with idea management.
- Implementation of innovation controlling mechanisms for efficient resource management.
- Strategic patent management to protect technological developments and maximize corporate value.
Excerpt from the Book
3.1.2.2 Differentiation
A company differentiates itself from its competitors if it can be unique at something valuable for the Partridge et al (2005 p. 127). Differentiation is usually expensive since the company incurs costs to gain a unique or superior position. By following the differentiation strategy the company does not ignore the costs; “they are simply not its primary strategic focus English (2001 p. 87)”. The strategy is successful if the value accepted by the customers exceeds costs of differentiation English (2001 p. 13). A successful differentiation strategy leads to a comparable margin level like the cost leadership, see figure below.
The difference should be something that customers recognize and value like quality, reliability, status or advertising. Additionally it should be something rivals cannot easily copy. Against copying companies can protect themselves for example through patents, however also a good reputation can protect and provide lasting benefits Bacon et al (2004 p. 164) and Partridge et al (2005 p. 127). Developments to reach new technologies especially at equal or higher customer value in combination with lower costs can be a good approach too Lele (1992 p. 97), see figure below.
Summary of Chapters
1 INTRODUCTION: This chapter outlines the problem description and objectives of the work, focusing on the need for innovation in the SME-dominated German drive technology industry.
2 DRIVE TECHNOLOGY INDUSTRY, ECONOMIC RELATIONS AND STRUCTURE: The chapter analyzes the economic dependency of the drive technology industry on the global mechanical engineering sector and the broader economy, concluding that it is a mature "squeeze out" market.
3 STRATEGIES FOR SME'S IN DRIVE TECHNOLOGY INDUSTRY: This section identifies and assesses competitive strategies, selecting product differentiation as the optimal approach for SMEs to secure growth.
4 INNOVATION MANAGEMENT PROCESS FOR SME'S: This chapter defines the core requirements for an innovation process, emphasizing a systematic framework that integrates efficiency and resource management.
5 IDEA MANAGEMENT: The chapter details methods for gathering and assessing internal and external ideas, proposing a modern suggestion system integrated with lead user concepts.
6 PROJECT MANAGEMENT: This chapter reviews state-of-the-art stage-gate processes for efficient R&D project management adapted to SME needs.
7 INNOVATION CONTROLLING: The chapter presents a systematic approach for innovation success calculation and controlling, emphasizing project-oriented financial management.
8 PATENT MANAGEMENT: This section discusses the importance of patent management for protection and value enhancement, proposing a structured process for patent assessment and review.
9 SUMMARY: This chapter synthesizes the findings, confirming the necessity of an integrated innovation management process for SME success.
10 CONCLUSION: The author concludes that while the proposed methods are valid, the final evidence of their successful implementation in SMEs remains to be tested.
11 APPENDIX: This chapter provides the statistical foundations, regression analyses, and detailed calculation sheets used throughout the thesis.
Keywords
SME, Drive Technology, Innovation Management, Differentiation Strategy, Idea Management, Patent Management, Innovation Controlling, Competitive Advantage, Stage-Gate Process, Value Benefit Analysis, Lead User Concept, Regression Analysis, Economic Success, Market Segmentation, Research and Development.
Frequently Asked Questions
What is the core focus of this thesis?
The work focuses on developing a systematic, pragmatic innovation management process specifically for SMEs in the German drive technology industry to help them maintain a competitive advantage in a mature market.
What are the central thematic areas covered?
The core themes include strategic market positioning, innovation management, idea generation and assessment, innovation controlling, and patent management.
What is the primary research goal?
The goal is to provide a comprehensive "toolbox" for SMEs that integrates strategic planning with operational innovation management to improve efficiency and profitability.
Which scientific methodology is applied?
The research uses descriptive market analysis, secondary data analysis, and structural assessment methods like the Pugh matrix and value benefit analysis.
What does the main body of the work address?
It addresses the economic environment of the drive technology sector, competitive strategy selection, the establishment of innovation processes, and the implementation of controlling and patent tools.
Which keywords define this work?
Key terms include SME, Innovation Management, Differentiation Strategy, Patent Management, and Innovation Controlling.
Why is the "squeeze out" market concept important for SMEs?
It highlights that in mature markets, firms can only grow by gaining market share from competitors, which necessitates clear differentiation to avoid being "stuck in the middle."
How should SMEs implement the proposed idea management?
The author suggests transforming bureaucratic systems into modern, transparent suggestion systems and integrating external sources like the "lead user concept" to focus on real market needs.
What role does patent management play in the proposed model?
Patent management is used not just for legal protection, but as a strategic tool to increase the equity of the company and secure unique selling propositions in international markets.
- Arbeit zitieren
- Dr.-Ing. Thomas Kamps (Autor:in), 2011, Systematic Chasing for Economic Success, München, GRIN Verlag, https://www.grin.com/document/198390
