tech innovation s2_invention to innovation
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Learn the fundamental of innovation concepts and foundation for value creation.Learn Concurrent, reverse, value engineering concept and tools to facilitate successful innovation.TRANSCRIPT
ATOA Scientific Technologies Engineering Simulation For Innovation
Technology and Innovation Management: S2 Managing Creativity and Innovation Dr Raj C Thiagarajan
To
SIBM SIII MBA Students
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
TIM –S2: Managing Creativity and innovation
2
• Why
• Invention/Innovation
• Types of innovation
• Innovation process
• What and How
• Product/ Process innovation
• Managing for innovation
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
History of Industrial Drivers
• Past:
• Manufacturing – Mass production- e.g, Ford
• Marketing - Good selling – e.g., FMCG
• Quality – Six sigma – e.g., GE
• Present :
• Services, Knowledge economy – GE and Tech companies
• Future:
• Creative Economy
Breakthrough Innovation are must for leadership 3
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Inspiration from Nature
4
• Nature perfected the art of innovation.
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
WHY
• Advancing technology
• Changing environment.
• Changing industrial structures and strategies
• Evolving society, customer desires
• Competitors improve their products, processes and services.
• Customers stop buying your old products and services so you need to replace them and add new products and services
• Life cycle of product
• Company profit/revenue increase – Business Growth Drivers Volume and Price
– Increase Volume
– Increase Price: Prize premium only by innovative products…
Introduction
Growth
Maturity
Time A
do
pti
on
Rat
e
Innovation
5
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Why
• Balance sheet hardly reflect any intangible assets.
• Move towards quantifying intangible assets
• Value creation- increasing value of intangible assets*
Market Value
Equity financial Capital
Intellectual Capital
Organizational Capital
Process Capital
Culture
Innovation Capital
Customer Capital
Customer base
Relationship
Human Capital
Base Value
Relationship
Elements of Intellectual Capital
* Mike Tansey, Bob Stembridge, The challenge of sustaining
the research and innovation process, World Patent Information, 27, pp 212–226, 2005.
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©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Invention/Innovation
• Thinking and doing.
• Proposing and executing
• Appropriate - useful and actionable.
• Influence the business product.
• Customer experience creation.
• Invention: All about IDEA
• Innovate: Make it work
7
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Innovation process
8
• Idea Generation
• Idea Evaluation
• Idea implementation
• Commercialization
Idea Generation Idea Evaluation Idea
implementation Commercialization
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
What
Invention
Innovation
Awareness
Incubation
Illumination
Verification
Marketing and Selling
Implementation
After, Creativity and the Innovation Process, White rose center for enterprise
Customer value
creation
Idea
9
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Staged Innovation development process
Consumer problem & needs exploration
Idea generation
Concept developments
Business Analysis
Prototype development
Plant scale up
Market testing
Commercialization
Post –Launch checkup
25-30
15-20
8-10
6-8
4
2
Feasibility
Pre NPI
NPI
10
Idea
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
How
Innovation is Hard work Teamwork and No HIGHWAY Some data:
Only 10 % of inventions made into products Only 10% of products succeeded in the market Failure rate of innovation is high To get around this problem fail fast, Or Have more of them.
Three ways to Innovate Solve your current problems creatively. Think weird, Infuse new ideas. Access and absorb external research discoveries
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©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Adopted from Creativity and the Innovation Process, White rose center for enterprise
Individual Creativity • “Isolation breeds diversity”
Most life is considered to have come from a
common root.
However at some point in time, the insect
eye and the vertebrate eye diverged on
their evolutionary pathways.
As a result, 2 quite different types of eye
have evolved. Each of which fulfils their
requirements.
This divergence also occurs in the creative
process when working in isolation.
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
How for Manager
13
• Mindset / Opportunity
• Physical Environment
• Freedom
• Project Boundaries
• Uncertainty
• Feedback
– Like
– Concerns
– Suggestion
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Collective Creativity • “Two heads are better than one”
• While the American Indian
was undoubtedly a more
skillful horseman than the US
cavalryman, the group
working of the cavalry
overcame the skills of the
individual Indians.
• “The whole is greater than the sum of the parts.”
Adopted from Creativity and the Innovation Process, White rose center for enterprise
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Innovative Idea @ work
• Expertise
• Creative thinking skills
• Motivation
• Intrinsic
• Internal desire
• Personal sense of challenge
• Extrinsic
• Outside a person
• Carrot or a stick
Least important
Most important
Motivational Factors
Source: “ Winning new product and service Practices, Kuczmarski & Associates Inc.
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©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Barrier to Innovation
• Fear of trying
• Fear of risk
• Fear of change
• Fear of being laughed at
• Fear of making mistakes
• Fear of appearing stupid by proposing something that is not possible
• Fear of showing ignorance
• Fear of showing personal thoughts
• Fear that personal ideas are so easy to copy they can not be shared with colleagues
• Jealousy of colleagues
• Never done before, don't know how to do
• Holding on to past successes
• People feeling indifferent and apathetic about their work
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©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Barrier and Bridge
Hierarchy Bureaucracy Anonymous Clean Experts
Merit Autonomy Familiar Messy Players
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©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Types of Innovation
18
• Incremental
• Evolutionary
• Revolutionary
Tradational Evolutionary Revolutionary
Benefits Incremental Substantial Breakthrough
Idea Idea Spark Idea Flame Idea Explosion
Execution Just Talk Walk the talk Walk the walk
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Product , Process Innovation
19
• Product Innovation
– Mobility
– Communication
– Infrastructure
– Healthcare
– Entertainment
• Process Innovation
– Services
– Manufacturing
– Business method
Inn
ova
tio
n Im
pac
t
Time
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Breakthrough Innovation
• Break through ideas for Revolutionary Innovation – The need of the hour for Breakthrough product /process development.
• Challenge the dogmas and the orthodoxies of the incumbents.
• Spot the trends that are already changing but have gone unnoticed
• Unique Customer experience
Incremental
Substantial
Breakthrough
Profits M
agn
itu
de
of
chan
ge
20
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Breakthrough product examples
• Digital Camera
• Apollo Digital X-ray panel
Adopted from Creativity and the Innovation Process, White rose center for enterprise
+ Innovation
21
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Breakthrough Service examples
• Dell : Distribution model
• Low cost airlines
• Itunes
• Online sales
• Apps
• ….
22
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Growth opportunity
23
• New Markets
• New technology
• New Policy
• Sector
• Size
• Life cycle
• Degree of Novelty
Passive
Reactive
Creative
Ability to change
Need
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Creating a Innovative culture
• Diversity
• Learn from mistakes
• Listen
• Encourage multiple point of views.
• Interdisciplinary
• Encourage risk
• Just Play
24
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Innovator Benchmark
• Thomas Edison
• 14 member team
• 6 years
• 400 patents
• Telegraph, telephone,light bulb..
• Legendary inventors is often a team in disguise
• Edison is in reality a collective noun and means the work of many men.
25
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Solve Tomorrow’s problem
• If you solve yesterday’s problem, you will develop today's technology.
• If you solve Today's problem you will develop Tomorrow’s technology.
• If you solve Tomorrow’s problem then you will develop future technology.
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©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Play innovation ( Innovator)
Three ways to Innovate
Solve your current problems creatively.
Infuse new ideas, Breakthroughs.
Access and absorb external research discoveries
27
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Orgn. Building blocks
1. Innovation vision
2. Strategy
3. Technology and innovation portfolio
4. Design a staged development process
5. Form innovation teams
6. Establish reward systems
7. Measure progress and returns
8. Infuse innovation norms and values
28
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Innovation Growth Options
29
• Technology Vs Market
Core Adjacent New
Core Grow Grow
JV
Adjacent Grow
New Venture
New Venture
New JV New Venture
Acquire
Technology Market
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Measure Innovation
1. Survival rate 2. Success or hit rate 3. R&D innovation effectiveness ratio 4. R&D innovation emphasis ratio 5. Innovation sales ratio 6. Newness investment ratio 7. innovation portfolio mix 8. Process pipeline flow 9. Innovation revenue per employee 10. ROI
Innovation indices
30
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
Theory of inventive problem solving
Principal TRIZ Findings
1) Solutions come from a small number of inventive
principles
2) All technology evolution trends are predictable
3) Major innovations emerge from outside the industry
sector in which they are to be deployed
©ATOA Scientific Technologies Pvt Ltd | SIBM , III Semester MBA| Technology and Innovation Management
TRIZ Evolution Trends • Increasing ‘Ideality’ (‘Value’)
• ‘Trimming’
• Dynamization
• Segmentation
• ‘Mono-Bi-Poly’ Systems
• Rhythm Co-ordination
• Action Co-ordination
• Controllability
• Introduction of Additives
• Geometric Evolution of Linear Structures
• Geometric Evolution of Volume Structures
• Evolution towards micro-scale
• Decreasing Human Involvement