"Cross innovations open up perspectives and expand the scope for new solutions"

In a globalised world, the ability to innovate is becoming increasingly important. Many companies are increasingly recognising the value of cross innovation. Here, sectors that traditionally have little to do with each other combine their knowledge and expertise. But why is this important? How exactly can the parties involved benefit from each other? And: Is this really something for every company? In our interview, Dr Daniel Strecker, innovation researcher at the Fraunhofer Centre for International Management and Knowledge Economy (IMW) in Leipzig, explains the advantages of interdisciplinary collaboration, the benefits of creative professionals for other sectors of the economy and why cross-innovation is particularly worthwhile in times of crisis.

Mr Strecker, what do you mean by cross innovation?

Strecker: There is no one hundred per cent definition. Cross innovation is generally understood to mean the mutual fertilisation across all sectors, industries and technologies. However, the original definition refers to impulses that spill over from the creative industries into the real economy and industry. These can be innovations in company organisation or corporate culture, such as the dress code. But it can also be very specific methods, concepts and products, from design thinking and marketing models to approaches to sustainable business practices.

Where does the principle actually come from ?

Strecker : The term cross innovation was primarily popularised by the IT gurus in the USA, who started to interlink the most diverse branches of technology at the turn of the millennium, e.g. computers with camera technologies and plant engineering. Interestingly, however, such interdisciplinary approaches existed much earlier: Henry Ford had his Model T manufactured on an assembly line. At that time, in 1908, this was only known from the meat industry. Mass production on the assembly line made the Model T the first car that was affordable for the general public. over the years, 15 million T-Fords rolled out of Ford's factories. By 1972, it was the best-selling car in the world. And all because a person took a look at what was happening outside their bubble.

What other examples of success can you think of?

Strecker: Well, just think of the DaVinci surgical robot that is in use at the University Hospital in Jena, for example. Hardly anyone would have thought this possible 20 years ago. Now, thanks to the seamless linking of high-performance sensors, the machines' highly developed fine motor skills and systems that collect and process thousands of pieces of data, this has become part of everyday life. Then there is the iDrive assistance system that BMW installs in its cars. It was inspired by joysticks and controllers from the gaming industry. In 2021, our institute, the Fraunhofer IMW, together with other Fraunhofer institutes, supported a start-up ecoSUP that wanted to produce a more sustainable stand-up paddle board. The result was a special wood foam with a coating that is robust and still manages without harmful chemicals, as is the case with many common SUPs. The best thing about it is that this coating can also be used for many other products and therefore has a cross character.

To what extent can expertise from creative professions be useful in cross-innovation processes? Their measures and successes are often difficult to measure and cannot really be backed up with concrete figures, data and facts ..

Strecker : The creative professions should not be underestimated. I can think of the German designer Luigi Colani, for example, who was known for his biomorphic shapes. Major companies such as Canon, Mazda and Villeroy & Boch commissioned him to design cars, cameras and toilets. Colani even designed aeroplanes and wind turbines - things he never actually had anything to do with. At some point, his work became so well known that it was simply good for a company's image to commission him. But working with less renowned creatives can also bring many advantages. Experts in 3D animation, for example, can create digital twins of planned products. This gives you a very good feel for the look and feel of the product without having to produce a series of expensive prototypes.

Here we are still in the product area, specifically in the area of design and simulation. What other examples are there where the expertise of the creative industries can be put to good use?

Strecker : Another example is creatives from areas such as film, music or literature, who also play an important role. Because they are constantly dealing with emotions in their work and have to consider the viewpoint of viewers, listeners or readers for their art, it is particularly easy for them to change their perspective, which a marketable product needs. After all, it should fulfil the needs of as many customers as possible. And because the creatives are involved in the development process at an early stage and use their experience to consciously and purposefully help shape it, they can - unlike traditional advertising agencies - think about the narrative surrounding the product and the product itself right from the start. This means that errors in the concept and realisation are recognised much earlier and can be rectified in good time. This makes the product better and its marketing more promising. In the end, all of this can be tracked and measured very well, especially in terms of sales.

What advantages do you see compared to traditional innovation approaches?

Strecker : One fundamental advantage is of course the ability to think outside the box: Was there perhaps a similar problem in other industries? How have others tackled it? Could that also be an approach to my problem? If you take a broader mental approach, you also broaden the scope for solutions and possibilities. You are relying on swarm intelligence in the economic sense, so to speak. And if you integrate the preliminary work or expertise of others into your own product, as is perhaps the case with our ecoSUP, you no longer have to develop, test and so on your own material. This can massively accelerate development processes and significantly reduce research and development costs. It is also true that the more industries are involved or have already developed and marketed comparable solutions, the more likely it is that customers will accept them.

What risks do companies have to fear when facing such a process?

Strecker : Some managers are probably worried that too much expertise or in-house knowledge will be channelled towards cooperation partners from the creative industries and that the competition might take advantage of this. There are now numerous ways to safeguard against this, such as closed data rooms or non-disclosure agreements. I believe that the fear of losing control plays a major role in the scepticism towards interdisciplinary collaboration. There are certainly still many decision-makers in companies who do not want to be told by a theatre scientist or a web designer how they can make their business model more successful. I think such concerns are unfounded and even counterproductive. If companies always stick to the same old ideas and methods and don't get any fresh input from outside, they will eventually become blind to their operations and may ultimately no longer produce any innovations. At the end of the day, every company must have an interest in integrating the best minds and solutions.

What role do organisations like Hamburg Kreativ Gesellschaft and the Cross Innovation Hub play in this?

Strecker : A very important function. On the one hand, individual creative professionals often shy away from approaching large companies and offering their services. On the other hand, it is a major challenge for small and medium-sized companies in particular to find exactly the right people for a specific task from the wide range of creative professionals on offer. There is therefore a huge need for someone to mediate, bundle and coordinate processes, bring methodological expertise, experience and concrete examples of success in cross-innovation processes. In fact, it is only through the existence of institutions such as the Cross Innovation Hub that many companies realise that they may also have additional innovation potential to exploit and that impulses from outside can create great added value. There simply needs to be meeting places where innovators can meet, network and exchange ideas, especially in person. This is the only way to explore opportunities. And companies need to have the openness and courage to implement the knowledge they have gathered.

Does this motto also apply in difficult economic times like these?

Strecker: Unfortunately, experience shows that in times of crisis, when innovation would be particularly important, everyone switches to survival mode. Companies then turn inwards, cut costs and slash budgets. However, I am convinced that we need new ideas, new concepts and new business models much more urgently today than we did two or three years ago. Only companies that recognise this, take active countermeasures and open themselves up to external stimuli will be able to hold their own on the market in the long term. The challenges facing our society are not becoming less, but rather more.

Dr Daniel Strecker, 55, was a management consultant at PwC and later commercial director of a solar module manufacturer. in 2020, he moved to the Fraunhofer Centre for International Management and Knowledge Economy IMW in Leipzig, where he has headed the research group for innovative business models since 2022: Business Models: Engineering and Innovation. In this role, he deals with topics such as sustainability, market and trend analyses, decision support and knowledge transfer as well as cross innovation.

author: Laslo Seyda