New Business Development: Case Study Findings

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New Business DevelopmentCase Study Findings

• Innovation Board
• Royal Haskoning
• May 22, 2008
• Frans A.J. van den Bosch
• Martin Dongelmans
• Henri Burgers
• Dept. of Strategic Management and Business
  Environment
• Rotterdam School of Management Erasmus University

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Useful links

• Department of Strategic Management and Business
  Environment
• www.strategyaterasmus.nl
• Rotterdam School of Management Erasmus
  University
• www.rsm.nl
• Erasmus Innovation Monitor/ INSCOPE
• www.erasmusinnovatiemonitor.nl
• Personal website of prof. dr. ing. Frans A.J. van
  den Bosch
• www.rsm.nl/portal/page/portal/home/faculty/academi
  c_departments/strategic_management/faculty/faculty
  /bosch_20frans_van_den
• Personal website of drs. Ing. Henri Burgers
• www.rsm.nl/portal/page/portal/home/faculty/academi
  c_departments/strategic_management/faculty/phd_can
  didates/burgers_henri

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Agenda

• Introduction
• Our case study research
• Scientific insights from our previous research
• Findings of the case studies at Haskoning

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Voorbeelden van lopende onderzoeksprojecten van
de vakgroep

• Erasmus Innovatie en Concurrentie Monitor
• Managing new business development
• Sociale innovatie
• Open innovatie
• Offshoring en outsourcing van RD activiteiten
• Ambidextrous organizations
• Rol van managers in exploratie/ exploitatie
• Strategische vernieuwing in de energiesector
• Corporate Governance
• Zie ook www.strategyaterasmus.nl

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Technologische versus Sociale innovatie

• Technologische innovatie (TI) creatie van nieuwe
  technologische kennis resulterend in nieuwe
  producten / diensten
• Social innovation is defined as changing
• A firms organization, management and labour in a
  way
• that is new to the firm and / or industry,
• with the effect of leveraging the firms
  technological knowledge base
• and improving firm performance (Volberda Van
  den Bosch, 2006)
• Management onderschat kernrol van SI om TI
  succesvol te maken èn kernrol van SI voor een
  duurzame concurrentie positie.

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Model Sociale Innovatie
Bron Volberda e.a. (2005)
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Complementary resources / assetsneeded to
commercialize innovations
Competitive manufacturing
Distribution
Core technological know-how in innovation
Service
Finance
Complementary technologies
Marketing
Other
Other
Source Teece (ed.) 1987. p. 192
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Managing and organizing corporate ventures

Corporate venturing is the creation of new
businesses within established firms (Sharma and
Chrisman, 1999 Guth and Ginsberg, 1990)

• Mainstream businesses are biased towards the
• existing, inertia, exploitation (Benner and
  Tushman, 2002 Hill and Rothaermel, 2003)
• Short-term, costs (Burgelman, 1985)
• Yet, mainstream businesses possess
• valuable knowledge and resources (Chesbrough,
  2000 Katila and Ajuha, 2002)
• Potential for synergies, scope economies
  (Tanriverdi and Venkatraman, 2005)

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Agenda

• Introduction
• Our case study research
• Scientific insights from our previous research
• Findings of the case studies at Haskoning

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Initial Research Questions

• How can scientific insights on new business
  development in other sectors be applied to the
  services in the engineering sector?
• How can an analysis of various cases be helpful
  in improving new business development practices
  at Haskoning?

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Agenda

• Introduction
• Our case study research
• Scientific insights from our previous research
• Findings of the case studies at Haskoning

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Our previous research
Publication in Long Range Planning (2008)
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Exploration of technological versus market
knowledge

• Distinction between technological and market
  knowledge appears to be key.
• Technological knowledge
• Development of new products, technologies,
  production processes
• Market knowledge
• Development of new markets, distribution
  channels, ways of advertising and promotion
• Source Burgers, Van den Bosch and Volberda
  (2008), Long Range Planning

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A Generic Framework Technological Market
Knowledge
Source Burgers, Van den Bosch and Volberda
(2008), Long Range Planning
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Application on manufacturing contextKnowledge
requirements and project management
characteristics

• Based on 8 NBD projects 4 successes 4
  failures
• Projects commercialized from 1993 - 2003

Source Burgers, Van den Bosch and Volberda
(2008), Long Range Planning
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Introducing a temporal dimensionNew business
development process

• Push strategy, based on perceived need

• Technological developing product, processes,
  testing, building
• Market how, where to sell, value proposition

• Technological refining, derivatives
• Market how, where to sell, value proposition

Source Burgers, Van den Bosch, Volberda (2008)
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Summary of findings of our previous research (1)

• Exploration of knowledge
• Technological side of the project was not a
  problem, but projects had difficulties in
  developing the market side of the project
• Using strategic alliances with partners
  possessing complementary market knowledge
• Use a single test market and clearly involve
  sales force

Source Burgers, Van den Bosch, Volberda (2008)
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Summary of findings of our previous research (2)

• Management of the project
• The threat of a standard project approach.
• No differences in management between projects
  developing market and technological knowledge,
  which constrained projects
• Solution link project management criteria to
  exploration of technological and market knowledge
  
• Projects felt increasing business pressure during
  commercialization phase
• Solution (1) Top management support to protect
  the project
• Solution (2) Providing more autonomy and a
  longer timeframe to complete exploration

Source Burgers, Van den Bosch, Volberda (2008)
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Agenda

• Introduction
• Our case study research
• Scientific insights from our previous research
• Findings of the case studies at Haskoning

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Overview of the NBD-Projects