Midem: Prototyping Innovation

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PROTOTYPING INNOVATION

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PROTOTYPING INNOVATION Integrate and accelerate change management. Why is innovation important? How innovation strategies can be optimized within a company‘s organizational structure? What lessons can be learned about the future of Pixelpark‘s innovation strategy? 2 ‣ by Axel Quack ‣ [email protected] by Email

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AGENDA INTRODUCTION 6

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INTRODUCTION I work as Vice President for Innovation and Head of the Innovation Lab at Pixelpark - one of Germany‘s largest interactive service provider of „creative and value-enhancing communication and eBusiness solutions“. In my current role I am responsible for all aspects of innovation management and I also serve as a member of the company‘s management board. 7 Believing in impactful management, I use emotional and logical techniques to drive positive communication processes, increase efﬁciency, decrease stress and enable engagement. I strive to empower teams of technologists which outperform expectations.

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INTRODUCTION I work as Vice President for Innovation and Head of the Innovation Lab at Pixelpark - one of Germany‘s largest interactive service provider of „creative and value-enhancing communication and eBusiness solutions“. In my current role I am responsible for all aspects of innovation management and I also serve as a member of the company‘s management board. 8 Believing in impactful management, I use emotional and logical techniques to drive positive communication processes, increase efﬁciency, decrease stress and enable engagement. I strive to empower teams of technologists which outperform expectations.

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9 »Focus on 3 Elements«

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10 1. Innovation

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11 2. Integration & Renovation

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12 3. Acceleration

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AGENDA INNOVATION 13

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WHAT IS INNOVATION? 14 According to Tom Gorman, innovation is creating a novelty based on an idea. However, simply coming up with the idea does not sufﬁce to create an innovator. An innovator must effect change in the real world. Thus, rather than remaining potential, an innovation – a new „product, service or process“ – must solve a real- world problem.

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WHAT IS INNOVATION? 15 According to Tom Gorman, innovation is creating a novelty based on an idea. However, simply coming up with the idea does not sufﬁce to create an innovator. An innovator must effect change in the real world. Thus, rather than remaining potential, an innovation – a new „product, service or process“ – must solve a real- world problem.

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WHAT IS INNOVATION? 16 According to Tom Gorman, innovation is creating a novelty based on an idea. However, simply coming up with the idea does not sufﬁce to create an innovator. An innovator must effect change in the real world. Thus, rather than remaining potential, an innovation – a new „product, service or process“ – must solve a real- world problem.

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APPLE 17 The company is a prime example of an innovator, which change the perception for a personal computer from a cumbersome machine into an elegant accessory. Apple did not invent the computer. Other people did. Moreover, businesses had been already using computers before Apple entered the market for computers. However, Apple revolutionized this market by „[popularizing] the microcomputer.“ Apple succeeded because the large mainframe computers of the time were hard to use. IBM dominated the mainframe market, but it did not lead the way to smaller computers. DEC developed a minicomputer – but even DEC „didn’t develop and popularize the microcomputer – Apple did.“ It took an existing product, shrunk it, redesigned it and made it simpler to use.

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APPLE 18 The company is a prime example of an innovator, which change the perception for a personal computer from a cumbersome machine into an elegant accessory. Apple did not invent the computer. Other people did. Moreover, businesses had been already using computers before Apple entered the market for computers. However, Apple revolutionized this market by „[popularizing] the microcomputer.“ Apple succeeded because the large mainframe computers of the time were hard to use. IBM dominated the mainframe market, but it did not lead the way to smaller computers. DEC developed a minicomputer – but even DEC „didn’t develop and popularize the microcomputer – Apple did.“ It took an existing product, shrunk it, redesigned it and made it simpler to use.

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APPLE 19 The company is a prime example of an innovator, which change the perception for a personal computer from a cumbersome machine into an elegant accessory. Apple did not invent the computer. Other people did. Moreover, businesses had been already using computers before Apple entered the market for computers. However, Apple revolutionized this market by „[popularizing] the microcomputer.“ Apple succeeded because the large mainframe computers of the time were hard to use. IBM dominated the mainframe market, but it did not lead the way to smaller computers. DEC developed a minicomputer – but even DEC „didn’t develop and popularize the microcomputer – Apple did.“ It took an existing product, shrunk it, redesigned it and made it simpler to use.

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WHAT HAPPENS IF A COMPANY IS NOT INNOVATIVE? 20 Most businesses are built to be efficient and profitable, but not necessarily innovative. By definition, innovation disturbs sameness. It dismantles routines. It invites unpredictability. However, innovation should not be taken for granted. Launching great innovation is often incompatible with the organizational rigidity of modern companies. Therefore, most companies need restructuring which would be conducive to innovation.

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WHAT HAPPENS IF A COMPANY IS NOT INNOVATIVE? 21 Most businesses are built to be efficient and profitable, but not necessarily innovative. By definition, innovation disturbs sameness. It dismantles routines. It invites unpredictability. However, innovation should not be taken for granted. Launching great innovation is often incompatible with the organizational rigidity of modern companies. Therefore, most companies need restructuring which would be conducive to innovation.

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WHAT HAPPENS IF A COMPANY IS NOT INNOVATIVE? 22 Most businesses are built to be efficient and profitable, but not necessarily innovative. By definition, innovation disturbs sameness. It dismantles routines. It invites unpredictability. However, innovation should not be taken for granted. Launching great innovation is often incompatible with the organizational rigidity of modern companies. Therefore, most companies need restructuring which would be conducive to innovation.

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SONY 23 Not long ago, the Walkman was as ubiquitous as the iPod is today, and Sony dominated the market for TVs, cameras, video recorders, and many other consumer electronics. But as Sony became a huge conglomerate with ﬁlm and music divisions, it lost leadership in many of its core product lines. What tripped up Sony and some of its competitors was the move from hardware to software, which put the emphasis on the brains of the device rather than the circuitry. As a result, faster-moving competitors like LG, Samsung, Vizio, Apple, and the various makers of cell phones—which of course come with cameras these days—have outpaced this old-school innovator.

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SONY 24 Not long ago, the Walkman was as ubiquitous as the iPod is today, and Sony dominated the market for TVs, cameras, video recorders, and many other consumer electronics. But as Sony became a huge conglomerate with ﬁlm and music divisions, it lost leadership in many of its core product lines. What tripped up Sony and some of its competitors was the move from hardware to software, which put the emphasis on the brains of the device rather than the circuitry. As a result, faster-moving competitors like LG, Samsung, Vizio, Apple, and the various makers of cell phones—which of course come with cameras these days—have outpaced this old-school innovator.

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SONY 25 Not long ago, the Walkman was as ubiquitous as the iPod is today, and Sony dominated the market for TVs, cameras, video recorders, and many other consumer electronics. But as Sony became a huge conglomerate with ﬁlm and music divisions, it lost leadership in many of its core product lines. What tripped up Sony and some of its competitors was the move from hardware to software, which put the emphasis on the brains of the device rather than the circuitry. As a result, faster-moving competitors like LG, Samsung, Vizio, Apple, and the various makers of cell phones—which of course come with cameras these days—have outpaced this old-school innovator.

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FORMER BRITISH PRIME MINISTER HAROLD WILSON »The only human institution which rejects change is the cemetery.« 26

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27 SUCCESSFUL CHANGE PROCESS ACCORDING TO GREEN: Morale and competence Time

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27 SUCCESSFUL CHANGE PROCESS ACCORDING TO GREEN: Transition Integration Mobilization Organization Orientation Implementation Morale and competence Time

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AGENDA INTEGRATION & RENOVATION 28

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29 MANAGING DIRECTOR

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29 DIRECTOR CONSULTANCE DIRECTOR INFORMATION TECHNOLOGY DIRECTOR DESIGN DIRECTOR EDITORS DIRECTOR SALES DIRECTOR PROJECT MANAGEMENT MANAGING DIRECTOR

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29 SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE DIRECTOR CONSULTANCE DIRECTOR INFORMATION TECHNOLOGY DIRECTOR DESIGN DIRECTOR EDITORS DIRECTOR SALES DIRECTOR PROJECT MANAGEMENT MANAGING DIRECTOR

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30 MANAGING DIRECTOR MANAGING DIRECTOR DIRECTOR CONSULTANCE DIRECTOR INFORMATION TECHNOLOGY DIRECTOR DESIGN DIRECTOR EDITORS DIRECTOR SALES DIRECTOR PROJECT MANAGEMENT DIRECTOR CONSULTANCE DIRECTOR INFORMATION TECHNOLOGY DIRECTOR DESIGN DIRECTOR EDITORS DIRECTOR SALES DIRECTOR PROJECT MANAGEMENT SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE GENERAL MANAGING DIRECTOR

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MANAGING DIRECTOR MANAGING DIRECTOR DIRECTOR CONSULTANCE DIRECTOR INFORMATION TECHNOLOGY DIRECTOR DESIGN DIRECTOR EDITORS DIRECTOR SALES DIRECTOR PROJECT MANAGEMENT DIRECTOR CONSULTANCE DIRECTOR INFORMATION TECHNOLOGY DIRECTOR DESIGN DIRECTOR EDITORS DIRECTOR SALES DIRECTOR PROJECT MANAGEMENT SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE SENIOR REGULAR JUNIOR TRAINEE GENERAL MANAGING DIRECTOR DIRECTOR INNOVATION MANAGEMENT 31

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32 Many organizations set up innovation incubators or labs but, because of their loose integration into the company, many promising ideas fail to be promoted and adopted.

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33 Innovations can happen most easily in nimble environments, which should not necessarily be limited to the walls of a lab.

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34 First Goal: Adding value to the brand Pixelpark itself, not a sub label or sub brand.

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35 Second Goal: Adding value to the already existing structure and getting employees more engaged on innovative processes.

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36 Besides collecting ideas from employees through Ideation events we wanted to make sure that everyone at the different locations had the opportunity to contribute and to exchange ideas between different people.

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AGENDA BOOTCAMPS 40

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42 ROLE OF THE INNOVATION MANAGER IN TERMS OF PRE-SALES SELECTION OF SEGMENTS

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43 ROLE OF THE INNOVATION MANAGER IN TERMS OF PRE-SALES SELECTION OF SEGMENTS ANALYSIS >

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44 ROLE OF THE INNOVATION MANAGER IN TERMS OF PRE-SALES SELECTION OF SEGMENTS ANALYSIS IDEA POOL COMPARSION > >

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45 SELECTION OF SEGMENTS ANALYSIS IDEA POOL COMPARSION COLD CALL, SALES FLIGHT > > > ROLE OF THE INNOVATION MANAGER IN TERMS OF PRE-SALES

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AGENDA ACCELERATION 46

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47 When a company like Pixelpark has existed for 20 years it has well established workflows, which are very efﬁcient when applied to large- scale projects. To achieve fast start-up like results, a large company, such as Pixelpark has to disrupt its established workflows.

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48 When a company like Pixelpark has existed for 20 years it has well established workflows, which are very efﬁcient when applied to large- scale projects. To achieve fast start-up like results, a large company, such as Pixelpark has to disrupt its established workflows.

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DESIGN THINKING 49 A large company, as Pixelpark has to disrupt its workflows. Design thinking is crucial to any innovation effort if a company wants to break out of its current business trajectory. Today‘s management concepts are heavily based on optimization and scale economics. This means that making a better use of a company's resources and market power can contribute to gaining competitive advantage. Indeed, design thinking can help achieve this goal.

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DESIGN THINKING 50 According to IDEO (2010) A large company, as Pixelpark has to disrupt its workflows.

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DESIGN THINKING 50 DEFINE According to IDEO (2010) A large company, as Pixelpark has to disrupt its workflows.

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DESIGN THINKING 50 CREATE DEFINE According to IDEO (2010) A large company, as Pixelpark has to disrupt its workflows.

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DESIGN THINKING 50 CHOOSE CREATE DEFINE According to IDEO (2010) A large company, as Pixelpark has to disrupt its workflows.

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DESIGN THINKING 50 SELECT CHOOSE CREATE DEFINE According to IDEO (2010) A large company, as Pixelpark has to disrupt its workflows.

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DESIGN THINKING 50 REPEAT SELECT CHOOSE CREATE DEFINE According to IDEO (2010) A large company, as Pixelpark has to disrupt its workflows.

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DESIGN THINKING 50 REPEAT SELECT CHOOSE CREATE DEFINE According to IDEO (2010) A large company, as Pixelpark has to disrupt its workflows.

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DESIGN THINKING 51 A large company, as Pixelpark has to disrupt its workflows. There are many different approaches to interpret Design Thinking. My main goal was to develop a methodology that relies on Design Thinking principles and can be easily integrated and executed during a workshop situation.

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DESIGN THINKING 52 A large company, as Pixelpark has to disrupt its workflows. Gamestorming is about an innovation method to create new ideas and strategies for success.

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DESIGN THINKING 53 A large company, as Pixelpark has to disrupt its workflows.

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DESIGN THINKING 53 A large company, as Pixelpark has to disrupt its workflows.

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DESIGN THINKING 53 A large company, as Pixelpark has to disrupt its workflows. Team building

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DESIGN THINKING 53 A large company, as Pixelpark has to disrupt its workflows. Team building Ideation

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DESIGN THINKING 53 A large company, as Pixelpark has to disrupt its workflows. Team building Ideation Reality check

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DESIGN THINKING 53 A large company, as Pixelpark has to disrupt its workflows. Team building Ideation Reality check Business model prototyping

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DESIGN THINKING 53 A large company, as Pixelpark has to disrupt its workflows. Team building Ideation Reality check Business model prototyping Users needs

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DESIGN THINKING 53 A large company, as Pixelpark has to disrupt its workflows. Team building Ideation Reality check Business model prototyping Users needs (Paper) Prototyping

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LARGE GROUP INTERVENTIONS 62 Position of Large Group Internventions in the ﬁeld of approaches for change. Large Scale Interventions (LSI) are an approach for organizing sustainable changes with active involvement of stakeholders throughout the whole system (e.g. organization or community and its environment). LSI is a process in which participants work in small and (really) large groups. Those groups are so called Large Group Interventions and the number of people involved can vary from ﬁve to a thousand.

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LARGE GROUP INTERVENTIONS 63 Position of Large Group Internventions in the ﬁeld of approaches for change.

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LARGE GROUP INTERVENTIONS 63 Position of Large Group Internventions in the ﬁeld of approaches for change.

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LARGE GROUP INTERVENTIONS 63 Position of Large Group Internventions in the ﬁeld of approaches for change. Tell Sell Test Consult Co-create

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LARGE GROUP INTERVENTIONS 63 Position of Large Group Internventions in the ﬁeld of approaches for change. Approach (scale) Tell Sell Test Consult Co-create

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LARGE GROUP INTERVENTIONS 63 Position of Large Group Internventions in the ﬁeld of approaches for change. Approach (scale) Tell Sell Test Consult Co-create Large Group Interventions Small Group Methods Open Space RTSC Company-Wide Meetings Conventional presentations Circumstances Low Clear Low Little Pre-determined Single High Unclear High High Open Multiple Level of ownership and commitment Issue / desired results / way forward Complexity Uncertainty Outcome Stakeholder groups / agendas

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BY AXEL QUACK I realized there are still »rules« within a company that tend to slow down an organization on progression. So, how can we »hack« this? 64 HACKING SOMETIMES YOU HAVE TO BREAK THE RULES ON

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BENEVOLENT HACKERS Workers subvert established company policies whenever rules and regulations make their jobs harder or less efﬁcient. This revolution takes the form of circumventing or replacing outmoded or silly procedures. It enables workers to be faster and more productive. 66 HACKING HOW CAN I ACTUALLY HACK A COMPANY? ON

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BROKEN BUSINESSES Old business models and processes no longer work. Rigid managers and top-down directives make a company less productive. But hard times demand courage, not timidity. Workers are ﬁghting back. 69 HACKING HOW CAN I ACTUALLY HACK A COMPANY? ON

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CONCLUSION 83 Streamline and design manufacturing processes and driving employees to unfold their full potential to deliver superior performance in innovation.

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CONCLUSION 84 Streamline and design manufacturing processes and driving employees to unfold their full potential to deliver superior performance in innovation. Build and manage strong and diverse teams that have delivered cost-efﬁcient, timely results within set budgets and strict deadlines.

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CONCLUSION 85 Streamline and design manufacturing processes and driving employees to unfold their full potential to deliver superior performance in innovation. Build and manage strong and diverse teams that have delivered cost-efﬁcient, timely results within set budgets and strict deadlines. Increase the efﬁciency of the creative personnel by instilling into them a greater sense of independence and commitment.

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CONCLUSION 86 Streamline and design manufacturing processes and driving employees to unfold their full potential to deliver superior performance in innovation. Build and manage strong and diverse teams that have delivered cost-efficient, timely results within set budgets and strict deadlines. Increase the efficiency of the creative personnel by instilling into them a greater sense of independence and commitment. Protoptype business models for strategic management of the firm‘s infrastructure, customers and finances.

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CONCLUSION 87 Streamline and design manufacturing processes and driving employees to unfold their full potential to deliver superior performance in innovation. Build and manage strong and diverse teams that have delivered cost-efficient, timely results within set budgets and strict deadlines. Increase the efficiency of the creative personnel by instilling into them a greater sense of independence and commitment. Protoptype business models for strategic management of the firm‘s infrastructure, customers and finances. Find new growth opportunities.

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CONCLUSION 88 Streamline and design manufacturing processes and driving employees to unfold their full potential to deliver superior performance in innovation. Build and manage strong and diverse teams that have delivered cost-efficient, timely results within set budgets and strict deadlines. Increase the efficiency of the creative personnel by instilling into them a greater sense of independence and commitment. Protoptype business models for strategic management of the firm‘s infrastructure, customers and finances. Find new growth opportunities. Lead and accelerate innovation strategies by identifying and executing strategic goals.

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CONCLUSION 89 Streamline and design manufacturing processes and driving employees to unfold their full potential to deliver superior performance in innovation. Build and manage strong and diverse teams that have delivered cost-efficient, timely results within set budgets and strict deadlines. Increase the efficiency of the creative personnel by instilling into them a greater sense of independence and commitment. Protoptype business models for strategic management of the firm‘s infrastructure, customers and finances. Find new growth opportunities. Lead and accelerate innovation strategies by identifying and executing strategic goals. Prototyped Innovation by integrating and accelerating change management.