Eidgenössische Technische Hochschule Zürich Will Technology Save the Swiss Economy ? Zurich, Sept....

EidgenössischeTechnische HochschuleZürich

Will Technology Save the Swiss Economy ?

Zurich, Sept. 27, 2008

Prof. Dr. Fritz Fahrni

EidgenössischeTechnische HochschuleZürich

Job Positions in Switzerland 1991 - 2005

Quelle: Bundesamt für Statistik

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1991 1993 1995 1997 1999 2001 2003 2005

Secondary Sector: -19,4%

Tertiary Sector: +13,5%

Primary Sector: -8,3%

Total: +2.6%Total: +2.6%

Nu

mb

er o

f Jo

bs

in T

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usa

nd

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EidgenössischeTechnische HochschuleZürich

Job Positions in Switzerland 2006

Tertiary

Sector: 72% Secondary Sector: 24%

Primary Sector: 4%

Employed Persons: 3‘974‘000

Unemployed: 125‘000 (3.1%)Quelle: Bundesamt für Statistik

EidgenössischeTechnische HochschuleZürich

Job Positions in Switzerland 2006

Tertiary

Sector: 72%

Secondary Sector: 24%Primary Sector: 4%

0 100 200 300 400

Rest

Textilgewerbe

Druckgewerbe

Lebensmittel

Chemie/ Pharma

Baubranche

Metall-Maschinen-Elektro

Quelle: Bundesamt für Statistik

Jobs in 1000‘s

EidgenössischeTechnische HochschuleZürich

Headlines in the „Old Economy“

Slow Growth

Low Tech

Du

st covered

Salary dumping

Restructuring

Mergers

Transfers abroad

non-attractive

Closing down

EidgenössischeTechnische HochschuleZürich

Headlines in the „New Economy“

12191e

Goggle

Inte

rnet

Microsoft

B to V

Skype

Com·

AOLNetscape

Nano

dynamic

Growth

Bio

Gen

omic

s

EidgenössischeTechnische HochschuleZürich

„Old Economy“:Markets for Basic Human Needs (Maslow)

12197-e

Communication Mobility Energy ...

Food Clothing Housing Health Safetyphysiological

spiritual/philosophical

Self-fullfilment

Leasure timePleasure Recognition...

...Adventure

EidgenössischeTechnische HochschuleZürich

„New Economy“

Linked to „New Tech“ / „High Tech“:• Information Technology• Communication Technology• Nano Technology• Bio Technology

Linked to the Future / Expectations• High Growth• High Valuation• Volatility / Bubble• Fear / Anxiety

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Characteristics

The „Old Economy“ The „New Economy“

• Satisfies BasicHuman Needs= Sustainable Markets

• Makes Use of Old and New Technologies

• Makes Use of New Technologies

• Creates New Needs = Growth Markets

• Replaces Estabished Products &Processes

• Rejuvenates Established Products, Systems &Processes

EidgenössischeTechnische HochschuleZürich

Will Technology save the Swiss Economy?

„Healthy (alive) Economy“:

„Continuous Storms destructing existing Structures

through (disruptive) Innovations"(Schumpeter,1911)

„Traditional Industrial Job Positions“ will continue to decrease

EidgenössischeTechnische HochschuleZürich

The Role of Enterprises

Profitable Enterprises

are

THE

Creators of Jobs

EidgenössischeTechnische HochschuleZürich

Effectivity = “to do the right things”

VisionObjectives

VisionObjectives

Effectivitythrough close

customer relations

EidgenössischeTechnische HochschuleZürich

Effectivity(2a): Where to find the „Right Things“

12108e

Sources: Daimler-Chrysler und 3M

Comfort-Trendin Cars

Memory Seat

Market-Pull

Source: DaimlerChrysler

Glue Technology

Post-It

Technology-Push

Source: 3M

EidgenössischeTechnische HochschuleZürich

-Market Pull

Effectivity(2b): Where to find the „Right Things“

Wireless phone

Cable hinderscomfort

14006

-TechnologyPush

unused capacity

SMS

I love you,Darling

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Exciting Quality

Performance Quality Basic Quality

Degree of customersatisfaction

Fulfillment of requirements

Effectivity (1): to find the „Right Things“

Excited Customers

EidgenössischeTechnische HochschuleZürich

Effectivity (3) = to do the Right Things

12129a-e

To recognize

Customer‘sNeeds

Success

=

To putto use

Technology

x

Market x Technology = Success

EidgenössischeTechnische HochschuleZürich

Efficiency = “to do things right”

VisionObjectives

VisionObjectives

Efficiency Effectivity

= Closecustomer relations

EidgenössischeTechnische HochschuleZürich

Efficiency: Drive for Operational Excellence

„old“ working places disappear

„new“ working places are created

„Healthy Economy“

EidgenössischeTechnische HochschuleZürich

Efficiency = „to do things right“

more percise / faster / cheaper / nicer /…..

„better use of ressources“

Efficency is the Survival Mode (Necessity)

for Enterprises

EidgenössischeTechnische HochschuleZürich

Innovation = “to realize dreams”

VisionObjectives

VisionObjectives

Efficiency Effectivity

= Closecustomer relations

Innovations

EidgenössischeTechnische HochschuleZürich

Economy: to innovate / grow or to die

EidgenössischeTechnische HochschuleZürich

10589e

-50,0%

+50,0%

-50,0%

+50,0%

Annual Change in R&D intensity (92-97)

Annual Change in Market Value(Standardized, 95-99)

Source: Mercer

How much may R&D cost?(a true but may-be not quite scientific study)

EidgenössischeTechnische HochschuleZürich

?

14605

Economy: to innovate / grow or to die

EidgenössischeTechnische HochschuleZürich14005

Technologies change the World, the Enterprises & Us

EidgenössischeTechnische HochschuleZürich

Swiss Venture with worldwide recognition

EidgenössischeTechnische HochschuleZürich

Wellenkraftwerk 1

EidgenössischeTechnische HochschuleZürich

EidgenössischeTechnische HochschuleZürich

Time

Min

iatu

riza

tio

n a

nd

co

st

red

uc

tio

n

(2) PCs

(3) Mobiles

(4) Smart Things

(1) Mainframe

Innovation: ICT - Tomorrow‘s World

EidgenössischeTechnische HochschuleZürich

Corporate Culture = “to set the context”

VisionObjectives

VisionObjectivesCorporate Culture

Efficiency Effectivity

= Closecustomer relations

Innovations

Profitable Enterprises are the Job Creatiors

EidgenössischeTechnische HochschuleZürich

12133e-3

Leader

vision

intuition

conviction

determination

courage

Do the right things

Manager+

objectives

allocation

knowledge

perseverance

organisation

Do things right

+ Communicator

Make them known

The Entrepreneur

EidgenössischeTechnische HochschuleZürich

Corporate Culture

12041e

Management Styles

C ommand

C ontrol

C orrect

„Under Pressure“

C ontext

C ulture

C ommunication

„Innovative“

C hallenge

S upport

F eedback

“Challenge”

EidgenössischeTechnische HochschuleZürich

Corporate Culture Values and Attitude

12099-2be

innovative

competent

understandable

on-time

with self-confidence

accountablelearning

SuccessfulEnterprise

EidgenössischeTechnische HochschuleZürich

Technology enables / helps

Will Technology save the Swiss Economy?

However, Technology alone will not do!

• To find the „Right Things“ Effectivity

• To do „Things“ right Efficiency

• To realize „Future Possibilities“ Innovation

• To set a „Creative Context“ Corp. Culture