Break the pattern

Break the Pattern - The Science of Value Creations

By

Ahmad Rahman Songip, Dr. Eng Professor of Innovation Management

& Consultant in Breaking Pattern Universiti Teknologi Malaysia

Kuala Lumpur [email protected]

[email protected]

13th International Conference on Innovation & Management 2016

Kuala Lumpur, 28-30 Nov 2016

www.icim2016.org

Global Collaboration for Sustainable Innovation

Malaysia 13th ICIM 2016

Finland ICIM 2014

China ICIM 2010,

2015

Brazil ICIM 2009,

2013

Japan ICIM 2007,

2011 Netherlands ICIM 2008,

2012

UTM Kuala Lumpur, 50 km from KL International Airport

UTM Kuala Lumpur

UTM Kuala Lumpur, 5 km from

Petronas Twin Towers

how to break a pattern?

Framework

A = R x S A R

S =

Law of Value Creation

V = I x R

A = Attitude ! Cause R = Resistance ! Internal S = Skills ! Outcomes

A = ATTITUDE

I find out what the world needs. When I have finally decided that a result is worth getting, I go ahead and try to invent it and make trial

after trial until it comes. ― Thomas A. Edison

There's a way to do it better - find it.

― Thomas A. Edison

R = RESISTANCE Our greatest weakness lies in

giving up. The most certain way to succeed is always to try just

one more time. ― Thomas A. Edison

I have not failed. I've just found 10,000 ways that won't work.


Skills for Success

Imagination is more important than knowledge...

― A. Einstein

To invent, you need a good imagination and a pile of junk.


Imagination & Thinking Skills: •  Blue Ocean Strategy •  System Thinking •  Scenario Planning •  Mind mapping •  Brainstorming •  Random Association •  Analogy •  TRIZ

5% of the people think;

10% of the people think they think; and 85% would rather die than think.


The most necessary task of civilization is to teach people how

to think. It should be the primary purpose of our public schools.


examples of broken

patterns

Dow Jones (USA)

Nikkei (Japan)

US was losing its supremacy as the world’s technology &

economy superpower

How do you explain this phenomena?

Breaking of Patterns

Dow Jones

Nikkei

US was losing its supremacy as the world’s

technology & economy superpower

US has regained its supremacy as the world’s technology &

economy superpower

Why Management of Technology & Innovation?

What was the secret?

Dow Jones Industrial Average vs. Nikkei

Dow Jones

Nikkei

US was losing its supremacy as the world’s technology & economy

superpower

Universities in the US started to teach Management of Technology and Innovation

during late 1980s and early 90s (Burgelman, Christensen & Wheelwright, 2009)

Why Management of Technology & Innovation? US has regained its supremacy

as the world’s technology & economy superpower

Nobel winner sued bosses because he got only ¥20,000 (US$ 180) bonus for his invention Published: 8 October 2014

Japanese-born US citizen Shuji Nakamura holds a blue LED light at a news conference after winning the 2014 Nobel Prize for Physics, at the University of California Santa Barbara in Isla Vista, California. An American and two Japanese scientists won the 2014 Nobel Prize for Physics on Tuesday for inventing a new energy-efficient and environment-friendly light source, leading to the creation of modern LED light bulbs. – Reuters pic, October 8, 2014.

Consequences for not properly Managing Technology & Innovation…

Q: Who is supposed to manage Technology &

Innovation?

He sued for US$180 million, but got only

US$ 8 million

Henry Ford

“Thinking is the hardest work there is, which is the probable reason why so few engaged in it”

Henry Ford

2001  US$ 0.25 2004 US$ 1.0 B

ROI?

Mumbai Dabbawala


A = R x S A R

S =

What is Creativity & Innovation?

What is Creativity & Innovation?

Creativity is the generation of new ideas

Innovation is the process to transform the resources of an enterprise through the creativity of people into new resources and wealth Paul Schumann

NASDAQ

S&P

NIKKEI KLSE

DOW JONES

Any Relationship between Creativity & Innovation and Market Value?

Data on Global Innovation, Creativity & Happiness Indices

[1] Global Innovation Index 2014. Retrieved July 13, 2014 from http://www.globalinnovationindex.org/content.aspx?page=gii-full-report-2013; [2] Global Creativity Index, Jan 2011. Retrieved July 13, 2014 from http://martinprosperity.org/2011/10/01/creativity-and-prosperity-the-global-creativity-index/; [3] World Happiness Record 2013. Retrieved July 13, 2014 from http://unsdsn.org/wp-content/uploads/2014/02/WorldHappinessReport2013_online.pdf

Fin-land

Nether-lands USA Japan China Malay-

sia Turkey Brazil

Innovation Index [1] 60.67 60.59 60.09 52.41 46.57 45.6 38.2 36.29

Creativity Index [2] 0.894 0.854 0.902 0.541 0.327 0.439 0.272 0.455

Happiness Index [3] 7.39 7.51 7.08 6.06 4.98 5.76 5.345 6.85

Japan

USA

Netherlands

Finland

Brazil

China

Creativity Vs. Innovation Levels

y = 34.335x + 29.949 R² = 0.80593

0

10

20

30

40

50

60

70

0 0.2 0.4 0.6 0.8 1

Malaysia

Turkey

Creativity Index

Inno

vatio

n In

dex

NASDAQ

S&P

NIKKEI KLSE

DOW JONES

The Market Performances are Correlated to Creativity and Innovation Levels

Innovation = (m x Creativity) + Constant since Innovation = 0, as Creativity = 0, then Innovation = m x Creativity where m = Transformation Effort

I = CTE

Innovation = Creativity x Transformation Effort

Nether-lands USA Fin-

land Japan Malay-sia China Brazil Turkey

Innovation Index 61.14 60.31 59.51 52.23 46.92 44.66 36.33 38.2

Creativity Index 0.854 0.902 0.894 0.541 0.439 0.327 0.455 0.272

Transforma-tion Effort 71.59 66.86 66.57 96.54 106.88 136.57 79.85 140.44


“Genius is… 1% inspiration, 99% perspiration.” ― Thomas A. Edison


y = -105.09x + 157.63 R² = 0.77525

0

20

40

60

80

100

120

140

160

0 0.2 0.4 0.6 0.8 1

Tran

sfor

mat

ion

Effo

rt

Creativity Index

I = CTE

Japan

Brazil

Malaysia

China

Turkey

USA

Netherlands

Finland

Who are Happier?

y = -0.0299x + 9.242 R² = 0.91972

0

1

2

3

4

5

6

7

8

0 50 100 150

Hap

pine

ss In

dex

Transformation Effort

USA

Japan

Malaysia

Netherlands Finland

Brazil

China

Turkey

Value Crea)on Accelera)on through Crea)vity & Innova)on Experiences

VACCINE ©


How to Operationalize this?

Facilitating organizations to create sustainable value creation system capabilities through accelerated, realistic &

systemic transformation program

input output

Creativity Value Creation

Transformation Effort


VACCINE Process

VACCINE Clients

Kulim (M) Berhad – additional net profit of RM 30 million (US $ 10 million)

Petronas Methanol Labuan – cost saving of RM 15 million (US$ 5 million)

UMP, 2012 & 2014 " Cost saving of RM 10 mil (US$ 3.3 mil), 2012 " Additional revenue of RM 93mil/yr (US$ 31 mil), 2014

Results of VACCINE

VACCINE in Malaysian Public Work Department, 2014

Outstanding Projects Savings (RM)

1. Implementation of Building Conditions Assessment (BCA) as a Performance Tools for Enhancing Maintenance Management Process

7 Bil/year

2. Managing Loss and Expense due to Extension of Time 5.7 mil/year 3. Energy Audit System in JKR 3.8 mil/year 4. JKR Career Path Development 300K/year 5. Development of Succession Planning System in JKR 130K/year

20 Project Leaders

VACCINE Program Monthly Coaching

VACCINE Framework JKR wants to quantum leap its performance by solving critical issues along the value chain of its services

Middle Managers in the organization that have been identified as the future leaders

Stage 1

Stage 2

Stage 3

Final

24-36 months

Phase I Implementation

Phase II Phase III

Assess

Assessment Phase (3-5 months)

Stage 1

Phase I Phase II Phase III

Assess Stage 2

Stage 3

Final

As Is Strategy Canvas

Deliverables: 1.  Gap Analysis 2.  Prioritization of

Issues 3.  List of Projects

3 Tiers of Noncustomer 6 Path

Framework

123456

ERRC Grid To Be Strategy Canvas

BUM/BEC

Tools to Assess Current Situation and Search for Creative Ideas at Organizational Level

Stage 3: Pilot Project Implementation

Implementation Phase

Phase II

Stage 1

Phase I Phase III

Assess Stage 2

Stage 3

Final

Stage 1: Detail Problem Analysis

Stage 2: Search for Creative Solution at Project Level

3 Tiers of Noncustomer

6 Path Framework

123456

ERRC Grid To Be Strategy Canvas BUM/BEC

Deliverables: •  Value Creations •  Masters Degree

Development of Innovation Culture

Total Projects = 20 Total Project Leaders = 20 pax Team Members = 5-7 pax/project Total Team Members = 100-140 pax

Stage 1

Phase I Phase III

Assess Stage 2

Stage 3

Final

Implementation

Phase II

Close Interaction between Top and Middle Managers

engagement

empowerment

recommendation

implementation

The Implementation Team

Champion

Champion Council

•  Experts •  Coaches Project Leaders

Sponsor

VACCINE Team

Program Manager

Transformation Management Office (TMO)

Team Members War Room

Stage 1

Phase I Phase II Phase III

Assess Stage 2

Stage 3

Final

Final Phase •  Data Analysis •  Final Project Presentation &

Exhibition to Organization-wide •  Project Report writing

VACCINE Develops Leaders

Talent Management Program:

VACCINE = Apprentice for Leadership

•  Take responsibility •  Think outside-the-box •  Able to manage projects •  Have mental toughness •  Make critical decision •  Produce results

1.  Break the Pattern is fundamental in value creations that is based on •  Law of Value Creation, A = R x S or S = A/R •  Law of Innovation, I = C x Te

2.  Value Creation Capacity of a country depends on her Creativity and Innovation levels

3.  Universities shall lead in ensuring an equitable

growth of value creations & happiness through Global Collaboration in teaching, research and application of creativity, technology and innovation management

Conclusions

Ahmad Rahman Songip, Dr.Eng Professor of Innovation Management

Management of Technology Dept Malaysia-Japan International Institute of Technology

Universiti Teknologi Malaysia

Author Break the Pattern

The Science of Value Creation for Corporations

Consultant in Breaking Pattern UTM Holdings Sdn Bhd

Universiti Teknologi Malaysia

Coach in Financial Independent Strong and Healthy (FISH); www.fish4wealth.com

[email protected], [email protected], +6017-6399457

Thank you…

Break the pattern

Education

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