Creativity & Innovation - Weeblypedrocoelhoso.weebly.com/.../3/1/8/5/3185261/innovation.pdf ·...
Transcript of Creativity & Innovation - Weeblypedrocoelhoso.weebly.com/.../3/1/8/5/3185261/innovation.pdf ·...
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Creativity & Innovation
Building capability and a path to GrowthGrowth
Anand Subramaniam
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“Imagination is more important than knowledge."
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knowledge."
- Albert Einstein
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Highlights
� Creativity & Innovation
� Innovation
� Innovation – Model, Programs & Roadmap
� Innovation - Data Sources / Relationships
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� Innovation - Data Sources / Relationships
� Innovation - Using DMAIC
� Innovation Framework
� Metrics & Measures
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Creativity & InnovationCreativity & Innovation
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Creativity & Innovation
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Creativity
Generative novel
ideas….
Innovation
the process of
converting novel
ideas into
something of value
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Ideas
Internal
Research
Technical
Publications
External
Research
Trade
Suppliers
TechnologyCompetitors
Creativity
Voice of the
customer
Market
Research
Market
Trade
Publications
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IDEAS
Quality
FunctionOperations
Function
Other
All Staff /
Employees
Merchandisers /
Distributors
Trade
ShowsCreativity
Events
Lead
User
Days
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InnovationInnovation
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Why Innovate
� The enterprise that doesn’t innovate inevitably ages and declines
� New products & innovativeness usually increase company value
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� Companies that are doing well today invariably have an enviable stable of new products
� New products represent an increasing % of companies’ sales revenues & profits
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Critical Success Factors
� Innovation culture within the organisation and led by CEO
� Develop unique products that solves and meets customers’ needs better than competitive products
� Define the new products strategy along with the process which has acceptance from all stakeholders
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which has acceptance from all stakeholders
� Follow a disciplined and systematic Innovation process
� Define program and project structure including stage gate reviews
� Do your homework with regard to technical, financial and market assessment
� Use an “Outside In” customer focused perspective
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Perspective
� Innovation is a strategic imperative
� Requires innovation functions as a core competency within an organisation
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� Incremental or radical innovation
� New Products Innovation Process is a key business process
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Challenges
� Change management implication
� Process ambiguity
� Visualisation of vision, goals and progress
� Internal and external stakeholder
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� Internal and external stakeholder communication
� Collaboration and communication between cross functional teams
� Learning curve
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Minimise Risk Exposure
� Base innovative efforts on your experience.
� Focus on products or services that have been largely overlooked.
� Be sure there is a market for the product or service you are hoping to create.
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service you are hoping to create.
� Pursue innovation that customers will perceive as adding value to their lives.
� Focus on new ideas that will lead to more than one product or service.
� Raise sufficient capital to launch the new product or service.
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Innovation – Model, Programs & Innovation – Model, Programs & Roadmap
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Innovation Model
Current Practices – Today Future Growth
Direction Generate innovation
Sustainable growth
Change competition landscape
� Leadership� Vision � Governance� Focus
Creativity
� Operational performance
� Technology
� Resource capabilities and
� Outcomes� ROI� IRR / NPV
� Client assessments
� Competition
� Scenario planning / Game theory
� Extrapolated trends
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� Creativity capabilities and competencies
� Industry partnership
� Resource forecast and allocation
� Surveys
assessments
� Intellectual property
� Corporate viability
� Industry association
trends
� Market consequences
� Alliances –partner and third party
� National association –Thought leader
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Innovation Program
Focus Strategies
Environment Scan
(“Know Why”)
� Understand the markets, customer, competitors, industry trends, legal & fiscal requirements along with the drivers
� Segment the market and identify target in the attractive segments� Determine new customer and their purchasing reasons� Develop a marketing communication strategy
Product / Services
(“Know What”)
� Translate current and future customer needs and preferences (unsatisfied / unstated needs) into product performance requirements
� Decide how to differentiate our offerings
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(“Know What”) � Decide how to differentiate our offerings � Set multi-year (3 ~ 5 years) targets and plan for product / R&D evolution
Process (“know how”)
� Align resources for product performance � Define capabilities and competencies for differentiation and the value
proposition along with investments� Identify and capture potential disruptive strategies including technologies� Align demand and supply chain to fill the gaps
Resources competency(“know who”)
� Understand and integrate process, procedures, systems and people required to deliver the products and services
Time Lines(“know when”)
� Define time lines and get acceptance from the senior management along with the business case, blue print and governance
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Innovation Roadmap
Area Inputs Outputs
Market Roadmap
� Customer needs� Competitive threats� Emerging markets and trend analysis
� Prioritised customer needs� Opportunities and risks� Key growth area and opportunities to have “first mover advantage”
Product / Services
� Window of opportunity� Prioritised customer needs
� Product / service evolution plans� Desired attributes – products & services
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needs � Existing capabilities
services� Fix the gaps
Technology / process
� Process evolution plans� Existing capabilities� Benchmarking
� Process / resources / technology development plans
� Scorecards � Gaps� Risks and mitigation
Program office
� Program process, transformation change, governance and outcomes
� Project process, transition, product outputs and business case management
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Innovation - Data Sources / Innovation - Data Sources / Relationships
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Innovation Data Sources
Scope Data Customer Connection
Research
� Trend analysis
� Competitive intelligence
� Purchasing
� Customer database & CRM
� Benchmarking� Sales Data
� Customer immersion techniques
� Personal contacts
� Quantitative and qualitative research
� Ad-hoc
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� Purchasing scenarios
� Sales Data contacts� Observation and shadowing
� Ad-hoc research
Use (Six Sigma / Lean / TQM) – PDCA or DMAIC
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Innovation Relationship
System Example 1 = transportation
Example 2 = Health care
Example 3 = Healthy Society
Sub System EngineBrakesSeats Paint
Equipment Doctor Nurse Records
HospitalsHealthcareDrug companiesDoctors
Current System Car Doctor’s surgery Healthcare
Super System Transportation Healthcare Healthy Society
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Super System Transportation Healthcare Healthy Society
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Innovation - Using DMAICInnovation - Using DMAIC
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For Idea Generation..
� A vision for change
� Remove fear of change
� Move thinking towards a venture capitalist
� Incorporate dynamic suggestion scheme
� Introduce lateral thinking
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Introduce lateral thinking
� Give everyone 2 jobs
� Collaborate
� Welcome failure
� Environment for calculated risk taking
� Build prototype
� Be PASSIONATE
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Using DMAIC - Define
� Realise that there is a decision to be made.
� Define the problem statement
� Form the issue as a single sentence. An issue is
the statement about the problem being solved or
the question being answered.
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the question being answered.
� List the stakeholders. The stakeholders include
everyone who will be affected by the decision.
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Using DMAIC - Measure
� Develop multiple alternatives for resolving the
issue.
� Identify necessary and sufficient conditions for
the mode of failure
� Work to generate a set of discriminating criteria
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� Work to generate a set of discriminating criteria
and their targets.
� Identify targets as 1) qualitative, 2) quantitative (<, >,
=)
� Assign the appropriate criteria to the appropriate
stakeholder(s).
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Using DMAIC - Analyse
� Study the system to identify conditions present during failure and eliminate potential causes until mode is verified
� Assign cause and create cause and corrective action
� Evaluate the alternatives relative to the criteria by � level of evidence, � level of certainty
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� level of certainty � rationale.
� Manage and visualise the evaluation uncertainties (using belief maps, for example).
� Fuse the evaluations using a structured method to find � alternative satisfaction � alternative risk
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Using DMAIC - Improve
� Base future activity on a what-to-do-next evaluation.
� understand the cost and benefit of doing more
work to improve the decision.
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Using DMAIC - Control
� Document the decision and the reasoning behind it.
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Innovation FrameworkInnovation Framework
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Need for a Framework
� Framework for cross-functional alignment and integration
� Enables effective decision making in line with the vision
� Align future goals and product plans
� Align R&D spending and product development initiatives
� Aligns product portfolio with corporate and market needs
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Aligns product portfolio with corporate and market needs
� Provides visibility into strategic and program direction
� Integrates data, product plans, and goals
� Identifies gaps in product, technology & capability plans
� Provides direction to project teams
� Shared vision of strategy alignment and execution
� Capture knowledge as the effort progresses
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Framework
Set the Innovation Objectives
Conduct Industry & Market Analysis Assess Internal Resources & Capabilities
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Evaluate & Select targeted Innovation Areas
Identify Development Projects
Identify other Capability building actions
Identify Potential Innovation Development Areas
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Innovation Objectives
� Sales/Profits from new products � By product group
� By market
� By geographic areas
� Percentage of sales/profits from products that
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� Percentage of sales/profits from products that are less that 3/5 years old
� Product strategy objective statements� Gain a presence in a new market
� Exploit new opportunities in an existing market
� Defend market share
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Industry / Market Analysis
� Industry / Market Analysis
� Understand the industry structure
� Market segment, sizes and trends
� Changing customer needs
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� Changing customer needs
� Competitor Analysis
� Outline the market / segment share
� Understand products offered and how they
are differentiated
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Resource Capabilities & Competencies
� Core capabilities & Competencies
� In / Out bound logistics
� Marketing
� Research & Development
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� Research & Development
� Manufacturing
� After Sales
� Finance
� Operations
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Development Areas
� Industry segment / value chain attractiveness
� Changes in customer needs or values & impact on the industry and its key players
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� New opportunities that better meet customer needs and / or capitalise on a changing environment
� Opportunities for new product development options
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Evaluation & Selection
� Business Strength / Market Opportunity Matrix� Business Strength
• Ability to leverage capabilities (Marketing, R&D, Technical, Manufacturing and Customer Relationships)
• Potential for gaining product advantage
� Market Opportunity
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� Market Opportunity
• market attractiveness
• technological possibilities
� Selection� Plot options on strategic map
� Select preferred options
� Priorities, scope, project selection
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Innovation Metrics & MeasuresInnovation Metrics & Measures
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Metrics / Measures
� Macro � Amount of innovation budget
� Ratio of innovation projects sponsored by senior management
� Volume � Number of innovations made
� Number of patent applications filed
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� Number of trademarks obtained
� Number of people involved systematic problem solving
� Number of systematic innovation projects completed
� Speed � Amount of time per innovation
� Research cycle time
� Product development cycle time
� Mean time to solve and implement an innovation solution
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Metric (Contd.)
� Financial Performance � % of Sales from New Products
� % of Profit from New Products
� % of Sales invested in NPD
� Sales Potential of Pipeline
� Project Performance
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� Actual Time Performance vs. plan
� Actual time taken to complete stage
� Actual Cost Performance vs. budget
� Process Performance� Time to Market (by project type)
� Market Launch Hit Rate
� Number of New Product Ideas reviewed
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“Every act of creation is first of all an act of destruction."
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destruction."
- Pablo Picasso
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Good Luckhttp://www.linkedin.com/in/anandsubramaniam
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http://www.linkedin.com/in/anandsubramaniam