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Innovating today for better tomorrow

Innovating by building capability using TRIZ
Prashant Y. Joglekar
joglekarprashant@gmail.com
http://innovationnukkad.blgspot.com
www.twitter.com/ideabound
On Facebook & Twitter Find Me
“Prashant Yeshwant Joglekar”
Presentation Flow

• Innovation Imperative

• Innovation Tiers, Types and Territory
• Introduction to Systematic Innovation
• Proposed Next Steps for Organization

1/30/2014

2
Presentation Flow

• Innovation Imperative

• Innovation Tiers, Types and Territory
• Introduction to Systematic Innovation
• Proposed Next Steps for Organisation

1/30/2014

3
Every Business Likes Arnold Schwarzenegger

Strong Healthy Top Line
( Revenue)
Controlled Waste Line
( Cost )

Strong Healthy Profit Foundation
( Profit)

1/30/2014

:

4
Balanced Score Card – Looking at Business Holistically

1/30/2014

Source : SAS, Balance Score Card

5
Innovation – Shortest Definition

INNOVATION = Successful Step Change = Positive ROI & Profit

1/30/2014

6
System Hits The Limit

1/30/2014

:

7
We are Doing Fine – Why We Need to Innovate ( Litmus Test )

Internal environment

External Environment

Parameters of
Measurement

More Demanding Innovation
Environment
( + 5 Points)

Neutral
( 0 Points)

Less Demanding innovation
environment
( - 5 points)

Industry
Maturity

Highly mature market showing
signs of communization

Market beginning to show
signs of maturity

Nascent market with unclear
business models

Competitive
Dynamics

Fast-moving industry and /or
industry with short product life
cycles

Moderately changing industry
( e.g. Automobiles)

Slow-moving industry where
change rarely occurs
( e.g. steel)

Asset
Intensity

Very High; innovation requires
major capital equipment
( e.g. pharmaceuticals)

Moderate; innovation possible
with less capable equipment
( e.g. Consumer Goods)

Low; innovation possible with
little to no investment
(e.g. media)

Scope of
Innovation
Activities

Innovation possible only with
close coordination across
business units, functions and
regions

Innovation able to be isolated
within a single business unit
with coordination across
functions

Innovation possible in
separate pockets of the
organization with minimal
coordination

Innovation
culture

Company in ‘operational’
mode, with innovation viewed
largely as distraction

Innovation understood to be
important, but not something
that is everyone’s
responsibility

Entrepreneurial culture, where
innovation is a core part of the
company DNA

Breadth of
Talent

< 10 % of employees capable
of delivering legitimately
disruptive ideas

10-30 % of employees capable
of developing legitimately
disruptive ideas

> 30 % of employees capable
of developing legitimately
disruptive ideas

1/30/2014

Source : Innovator’s Guide To Growth , SCOT ANTHONY , Harvard Business Press

8
Assessing Innovation Environment of a Commodity Business

Internal environment

External Environment

Parameters of
Measurement

More Demanding Innovation
Environment
( + 5 Points)

Neutral
( 0 Points)

Less Demanding innovation
environment
( - 5 points)

Industry
Maturity

Highly mature market showing
signs of commoditization

Market beginning to show
signs of maturity

Nascent market with unclear
business models

Competitive
Dynamics

Fast-moving industry and /or
industry with short product life
cycles

Moderately changing industry
( e.g. Automobiles)

Slow-moving industry where
change rarely occurs
( e.g. steel)

Asset
Intensity

Very High; innovation requires
major capital equipment
( e.g. pharmaceuticals)

Moderate; innovation possible
with less capable equipment
( e.g. Consumer Goods)

Low; innovation possible with
little to no investment
(e.g. media)

Scope of
Innovation
Activities

Innovation possible only with
close coordination across
business units, functions and
regions

Innovation able to be isolated
within a single business unit
with coordination across
functions

Innovation possible in
separate pockets of the
organization with minimal
coordination

Innovation
culture

Company in ‘operational’
mode, with innovation viewed
largely as distraction

Innovation understood to be
important, but not something
that is everyone’s
responsibility

Entrepreneurial culture, where
innovation is a core part of the
company DNA

Breadth of
Talent

< 10 % of employees capable
of delivering legitimately
disruptive ideas

10-30 % of employees capable
of developing legitimately
disruptive ideas

> 30 % of employees capable
of developing legitimately
disruptive ideas

1/30/2014

Source : Innovator’s Guide To Growth , SCOT ANTHONY , Harvard Business Press
:

9
Organization's Approach to Innovation based on assessment

Scoring

Organization’s Approach

20 to 30

Very Demanding Innovation Environment : In these settings, there is likely need for greater
resource allocation, more structured approaches to innovation, more significant senior
management guidance and overall organizational autonomy for selected innovation units

10 to 15

Moderately demanding innovation environment : In these contexts, circumstances suggest
focusing on one or two key aspects of company’s environment. Significant hands-on
management may be required to overcome internal challenges, and /or well-defined structure and
process may be needed to foster rapid innovation while effectively managing potential risks

-15 to 5

Less Demanding Innovation Environment : Here, focused innovation efforts can be carried out
with limited need for direction from senior leaders and minimal investment. Market conditions
and the personnel in the organization likely enable a more flexible and slower paced approach to
Innovation.

-30 to -20

Naturally innovative environment : Innovation in these settings tends to be inherent in the core
culture. Innovation efforts can be thus be well integrated with the main lines of business and can
occur as a natural part of doing business. In these environments, it is important not to over direct
or stifle innovation through excessive structure.

1/30/2014

Source : Innovator’s Guide To Growth , SCOT ANTHONY , Harvard Business Press
:

10
Organization's Approach to Innovation based on assessment

Scoring

Innovation Strategy

20 to 30

Very Demanding Innovation Environment : In these settings, there is
likely need for greater resource allocation, more structured approaches
to innovation, more significant senior management guidance and overall
organizational autonomy for selected innovation units

10 to 15

Moderately demanding innovation environment : In these contexts, circumstances suggest
focusing on one or two key aspects of company’s environment. Significant hands-on
management may be required to overcome internal challenges, and /or well-defined structure
and process may be needed to foster rapid innovation while effectively managing potential risks

-15 to 5

Less Demanding Innovation Environment : Here, focused innovation efforts can be carried out
with limited need for direction from senior leaders and minimal investment. Market conditions
and the personnel in the organization likely enable a more flexible and slower paced approach to
Innovation.

-30 to -20

Naturally innovative environment : Innovation in these settings tends to be inherent in the core
culture. Innovation efforts can be thus be well integrated with the main lines of business and can
occur as a natural part of doing business. In these environments, it is important not to over
direct or stifle innovation through excessive structure.

1/30/2014

Source : Innovator’s Guide To Growth , SCOT ANTHONY , Harvard Business Press

:

11
Presentation Flow

• Innovation Imperative

• Innovation Tiers, Types and Territory
• Introduction to Systematic Innovation
• Proposed Next Steps for Organisation

1/30/2014

12
The Innovation Stack

Management Innovation
( ‘Work’ Different for e.g. 3M)

Strategic Innovation
( ‘Sell’ Different, ‘Southwest’)

Product / Service Innovation
(‘make’ different, Apple)

Operational Innovation
(‘make’ better e.g. TOYOTA)

1/30/2014

Source : The Future of Management By GARY HAMEL , Harvard Business Press

13
Innovation Territory – Business Model Landscape
Key Partners

Key Processes

Value Proposition

Customer Relationship

• Strategic
alliance
• Cooperation
between
competitors
• Joint
ventures
• BuyerSupplier
• Customerprovider

• Operating Processes
( Sales and
Marketing,
Production,
Maintenance, R & D,
Logistics etc.)
• Support Processes (
HR, IT,
Administration)

•
•
•
•

• Personal assistance
• Dedicated personal
assistance
• Self-service
• Automated Service
• Communities
• Co-creation

Key Resources

•
•
•
•

Physical
Intellectual
Human
Financial

•
•
•
•
•
•
•

Newness
Performance
Customization
Getting the job
done
Design
Brand/Status
Price
Cost Reduction
Risk reduction
Accessibility
Convenience /
Usability

Customer
Segments
•
•
•
•
•

Mass Market
Niche Market
Segmented
Diversified
Multi-sided
platform

Channels

•
•
•
•
•

Sales Force
Web Sales
Own Stores
Partner Stores
Wholesaler

Cost Structure

Revenue Streams & Pricing Mechanisms

• Cost Driven ( Southwest)
• Value Driven ( Luxury Hotels)

•
•
•
•
•
•
•

Selling Products
Usage Fee
Subscription Fees
Lending / Renting / Leasing
Licensing
Brokerage Fees
Advertising

Source : Business Model Generation, Alexander Osterwalder, WILEY & SONS
1/30/2014

14
Innovation HOT SPOTS – 12 Ways To Innovate
Dimension

Definition

Examples

Business Model
Element

Offerings

Develop innovative new
products or services

• Gillette Mach 3 Turbo, Fusion Razor
• Apple i-pod music player and I Tunes
music service

Value Proposition

Platform

Use common components or
building blocks to create
derivative offerings

• General Motors OnStar telematics
platform
• Disney animated movies

Key Resources +
Offering

Solution

Create integrated and
customized offerings that solve
end-to-end customer problems

• UPS logistic services Supply Chain
Solutions
• DuPont building innovations for
construction

Value Proposition +
Offering

Customers

Discover unmet customer or
identify underserved customer
segments

• Meru Cab
• ACT –II POPCORNS

Customer relationship
+ Value Proposition

Customer
Experience

Redesign customer interactions
across all touch points and all
moments of contact

• BOOK My show ( IPL Tickets, Stadium
View)
• Net-banking

Customer
relationships + Cost
Structure + Value
proposition

Redefine how company gets
paid or create innovative new
revenue streams

• Steel service centers

Customer
relationship+ Revenue
Streams

Redesign core operating
processes to improve efficiency
& effectiveness

• Toyota Production Systems
• GE’s SIX SIGMA Processes

Core processes + Cost
Structure

Value
Capture
Processes

1/30/2014

Source : “12 Ways To Innovate . Mohanbir Sawhney, Kellogg School of Management

15
12 Ways to Innovate
Dimension

Definition

Examples

Business Model
Element

Organization

Change form, function or
activity scope of the firm

• TOYOTA LEXUS Luxury Car

Customer Segments +
Revenue Streams

Supply Chain

Think differently about sourcing
and fulfillment

• ITC e-chaupal

Key Resources +
Partnership + Cost
Structure + Value
Proposition

Presence

Create new distribution
channels or innovative point of
presence, including the places
where offerings can be bought
or used by customers

• Starbucks music CD sales in coffee
stores

Channel

Create network centric
intelligent and integrated
offerings

• OTIS remote elevator monitoring
service

Partners

Leverage a brand into new
domains

• Apple, Janguar

Customer Segment,
Customer Relationship

Networking

Brand

Source : “12 Ways To Innovate . Mohanbir Sawhney, Kellogg School of Management

1/30/2014

16
Presentation Flow

• Innovation Imperative

• Innovation Tiers, Types and Territory
• Introduction to Systematic Innovation
• Proposed Next Steps for Organisation

1/30/2014

17
Challenges to Innovate : External Barriers For Large Firms

1/30/2014

Source : National Knowledge Commission, Govt of India Report 2007

18
Challenges to Innovate : Internal Barriers for Large Firms

1/30/2014

Source : National Knowledge Commission, Govt of India Report 2007
:

19
Solution : Special Skill Building Programs + Structure

1/30/2014

Source : National Knowledge Commission, Govt of India Report 2007

20
Can I be Innovative ???

• But Innovation is Confined to Few Intelligent Men ??
No
• So can I be Innovative ??
Yes
• How can that be possible ?? This was never a subject in my
curriculum
Don’t Loose Hope
• How can I learn to Innovate now? Is there a systematic way of
learning it?
Yes, Yes, Yes ……
1/30/2014

Source :

21
TRIZ alias Systematic Innovation

1/30/2014

Source :

22
Father & Propagator of Systematic Innovation (TRIZ)

1/30/2014

Source :

23
Systematic Innovation – Distilling World’s Best Knowledge

Business

‘psychology’

Science

Because we spent the
last 12 years studying
innovations from the
last 100 years:
~3000 management texts
published per year

Patents
~7500 academic/trade
journals in circulation
~ > 400,000 patents granted

‘Breakthrough’
Database
1/30/2014

Source :

24
TRIZ and It’s Brief History

1. Problems and Solutions were repeated across industries and
Sciences ( Someone Somewhere Has Already Solved a
Problem Similar Like Mine)
2. Patterns of technical evolution were repeated across industries
and sciences
3. Innovations used scientific effects outside the field where they
were developed

1/30/2014

Source :

25
Innovation Levels

Level 1

Routine design problems solved by methods well known within
the specialty. Usually no invention needed. example: use of
‘coal’ for writing

Level 2

Minor improvements to an existing system using methods known
within the industry. example: ‘Graphite Pencil’ (wrapped coal
stick)

Level 3

Fundamental improvement to an existing system using methods
known outside the industry. example: Ink Pen (ink instead of
coal)

Level 4

A new generation of a system that entails a new principle for
performing the system's primary functions. Solutions are found
more often in science than technology. Example Printer (another
whole system for writing)

Level 5

A rare scientific discovery or pioneering invention of an
essentially new system. example: electronic Pen & Paper

1/30/2014

Source :

26
Systematic Innovation Cycle

Generic problem set

Generic solution set

My Problem

My Solution

1/30/2014

Source :

27
Innovation is Solving Problem Recognized / Unrecognized

Problem is nothing but the gap between “What We Want”
and “What We Have”.
-Edward De Bono

“The significant problems we face cannot be solved at the
same level of thinking we were at when we created them”
-Albert Einstein

1/30/2014

Source :

28
Five Pillars of Breakthrough Methodology

1/30/2014

Source :

29
IDEALITY

1/30/2014

Source :

30
Ideality Cone

1/30/2014

Source :

31
IDEAL FINAL RESULT – Deployment Philosophy

1/30/2014

Source :

32
CONTRADICTIONS

1/30/2014

Source :

33
COCA COLA CAN EVOLUTION

Principle 17 : Another
Dimension

1/30/2014

Source :

34
OIL SPILL Problem
Parameter We Are Trying To Improve
STABILITY ( Matrix Parameter 21)
Parameter That Prevents Us from
Improving
Temperature ( Matrix Parameter 22)
Inventive Principles
35 – Parameter Changes
40 – Composite Material
03- Local Quality
01- Segmentation

18 – Mechanical Vibration
24 - Intermediary

1/30/2014 Source : Are you solving the right problem : Dwayne Spradlin, HBR September 2012 :

35
My Problem Is So Unique….

1/30/2014

Source :

36
Someone Somewhere Has Solved Problem Like Yours

1/30/2014

Source :

37
TRENDS of EVOLUTION

1/30/2014

Source :

38
Trends of Evolution

1/30/2014

Source :

39
How to Read The Plots

1/30/2014

Source :

40
Trend List

1/30/2014

Source :

41
PIZZA BOX – System Evolution

Business Implication
= 14 Mn USD

1/30/2014

Source :

42
Application of TRENDS of EVOLUTION

1/30/2014

Source :

43
Business Trend : Customer Experience Trend

Commodity

1/30/2014

Product

Service

Source :

Experience

Transformation

44
DATA - Information - Knowledge - Wisdom

Data

1/30/2014

Knowledge

Information

Source :

WISDOM

45
FUNCTIONALITY

1/30/2014

Source :

46
Remove Water From GLASS

1/30/2014

Source :

47
http://function.creax.com/

1/30/2014

Source :

48
Resources

1/30/2014

Source :

49
Tool Map
Problem Definition

Divergent

Convergent

Ideal Final Result /
Attribute
Function & Attribute
Analysis
Resources
Evoplot Analysis
Why & What’s Stopping
Analysis
Size- Time-Interface-Cost
QFD
Spiral Dynamics

S-Field Analysis
Smart-Little People
S-Curve Analysis
Subversion Analysis
Constraint Mapping
Root Cause Analysis
Root Contradiction
Analysis
Root Contradictions
Contradiction Matrix

Perception Mapping
Omega Life Views
Red Team Analysis
Kepner-Tregoe

1/30/2014

Solution Generation

Divergent

Inventive Standards
Inventive Principles
Trends
Trimming
De-BONO
SCAMPER
Oblique Strategies

Convergent

Multi Criteria Decision
Analysis

Function Data Base
Patent Data Base

Source : Hands On Systematic Innovation , IFR Press, UK

50
1/30/2014

Source :

51
Companions of Process Excellence

Systematic Innovation –
Technical

Breaking Psychological Inertia

1/30/2014

Systematic Innovation –
Business
& Management

Latest Research
On Contradictions

Source :

Systematic Innovation –
Software

trenDNA – Understanding Populations
Better Than They Understand Themselves

52
Presentation Flow

• Innovation Imperative

• Innovation Tiers, Types and Territory
• Introduction to Systematic Innovation
• Proposed Next Steps for an organisation

1/30/2014

Source :

53
TRIZ Propagation at SAMSUNG

1/30/2014

Source :

54
My Value Proposition

1. Systematic Innovation Workshops for Technical / Business / IT
domains
2. Learning deployment by solving problems in hand
3. Specific Business Outcome Driven Innovation Project
4. Product / Process Driven Transformation
5. Mapping innovation landscape for an organization to drive
innovation agenda more inclusively

1/30/2014

Source :

55
Innovation Maturity Journey
Maturity Stage
Journey

SEEDING

What Do We Do Here

CHAMPIONING

MANAGING

STRATEGISING

VENTURING

1/30/2014

Source :

56
Innovation Maturity Journey - Seeding
Maturity Stage
Journey

What Do We Do Here

SEEDING

In this phase it is best to achieve a small scale success as not many would want
to disrupt an organization that seems to be working well. The key is some
success than scale.

CHAMPIONING

The primary aim during this stage is to achieve a broad acceptance across organization
that innovation is a key business process rather than an ethereal, high-risk enemy. Here
quantifying the improvements is essential.

MANAGING

This phase is little tricky, as due to initial success there are many who wants to jump the
bandwagon. In this phase search needs to be for the people who are passionate and
want to bring about the change. This phase has to be managed delicately, else there will
be more presentations & no work 

STRATEGISING

There is going to be someone with full-time responsibilities for innovation within the
team. This is the stage where the team members need to develop new skills such as
scenario planning, story-telling. People are beginning to see central innovation team as
‘the place to be’ for the best chances of career progression.

VENTURING

Here the organizations venture into different areas of business those are not relevant to
their so called core. Here the organization has self-adapting management structures and
teams.

1/30/2014

Source :

57
Innovation Maturity Journey - Championing
Maturity Stage
Journey

What Do We Do Here

SEEDING

In this phase it is best to achieve a small scale success as not many would want to
disrupt an organization that seems to be working well. The key is some success than
scale.

CHAMPIONING

The primary aim during this stage is to achieve a broad acceptance across
organization that innovation is a key business process rather than an ethereal,
high-risk enemy. Here quantifying the improvements is essential.

MANAGING

This phase is little tricky, as due to initial success there are many who wants to jump the
bandwagon. In this phase search needs to be for the people who are passionate and
want to bring about the change. This phase has to be managed delicately, else there will
be more presentations & no work 

STRATEGISING

There is going to be someone with full-time responsibilities for innovation within the
team. This is the stage where the team members need to develop new skills such as
scenario planning, story-telling. People are beginning to see central innovation team as
‘the place to be’ for the best chances of career progression.

VENTURING

Here the organizations venture into different areas of business those are not relevant to
their so called core. Here the organization has self-adapting management structures and
teams.

1/30/2014

Source :

58
Innovation Maturity Journey - Managing
Maturity Stage
Journey

What Do We Do Here

SEEDING

In this phase it is best to achieve a small scale success as not many would want to
disrupt an organization that seems to be working well. The key is some success than
scale.

CHAMPIONING

The primary aim during this stage is to achieve a broad acceptance across organization
that innovation is a key business process rather than an ethereal, high-risk enemy. Here
quantifying the improvements is essential.

MANAGING

This phase is little tricky, as due to initial success there are many who wants to
jump the bandwagon. In this phase search needs to be for the people who are
passionate and want to bring about the change. This phase has to be managed
delicately, else there will be more presentations & no work 

STRATEGISING

There is going to be someone with full-time responsibilities for innovation within the
team. This is the stage where the team members need to develop new skills such as
scenario planning, story-telling. People are beginning to see central innovation team as
‘the place to be’ for the best chances of career progression.

VENTURING

Here the organizations venture into different areas of business those are not relevant to
their so called core. Here the organization has self-adapting management structures and
teams.

1/30/2014

Source :

59
Innovation Maturity Journey - Strategizing
Maturity Stage
Journey

What Do We Do Here

SEEDING

In this phase it is best to achieve a small scale success as not many would want to
disrupt an organization that seems to be working well. The key is some success than
scale.

CHAMPIONING

The primary aim during this stage is to achieve a broad acceptance across organization
that innovation is a key business process rather than an ethereal, high-risk enemy. Here
quantifying the improvements is essential.

MANAGING

This phase is little tricky, as due to initial success there are many who wants to jump the
bandwagon. In this phase search needs to be for the people who are passionate and
want to bring about the change. This phase has to be managed delicately, else there will
be more presentations & no work 

STRATEGISING

There is going to be someone with full-time responsibilities for innovation within
the team. This is the stage where the team members need to develop new skills
such as scenario planning, story-telling. People are beginning to see central
innovation team as ‘the place to be’ for the best chances of career progression.

VENTURING

Here the organizations venture into different areas of business those are not relevant to
their so called core. Here the organization has self-adapting management structures and
teams.

1/30/2014

Source :

60
Innovation Maturity Journey - Venturing
Maturity Stage
Journey

What Do We Do Here

SEEDING

In this phase it is best to achieve a small scale success as not many would want to
disrupt an organization that seems to be working well. The key is some success than
scale.

CHAMPIONING

The primary aim during this stage is to achieve a broad acceptance across organization
that innovation is a key business process rather than an ethereal, high-risk enemy. Here
quantifying the improvements is essential.

MANAGING

This phase is little tricky, as due to initial success there are many who wants to jump the
bandwagon. In this phase search needs to be for the people who are passionate and
want to bring about the change. This phase has to be managed delicately, else there will
be more presentations & no work 

STRATEGISING

There is going to be someone with full-time responsibilities for innovation within the
team. This is the stage where the team members need to develop new skills such as
scenario planning, story-telling. People are beginning to see central innovation team as
‘the place to be’ for the best chances of career progression.

VENTURING

Here the organizations venture into different areas of business those are not
relevant to their so called core. Here the organization has self-adapting
management structures and teams.

1/30/2014

Source :

61
Innovation Infrastructure

1/30/2014

Source : European Summit for the Future 2009

62
Elements of Knowledge Management Framework

Different Businesses, Different Context, Common Ideas
Contradiction Matrix & Inventive Solution ( “Matrix +” Suite)
Functional Data Bases (http://function.creax.com/)
Evolutionary Potential for Systems ( Technical, Business,
Software) ( EVOPlot +)
Resource Data Base ( Resource Category wise For e.g. Free /
Low Cost Resources, Human Resources, Smart Resources etc)
Systematic Innovation TOOL KIT

Mapping Knowledge Networks ( www.orgnet.com )

1/30/2014

Source :

63
Thank You
joglekarprashant@gmail.com
http://innovationnukkad.blogspot.com
www.twitter.com/ideabound
Linked In & Facebook : Prashant Yeshwant Joglekar

1/30/2014

Source :

64

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Innovating for a Better Tomorrow

  • 1. Innovating today for better tomorrow Innovating by building capability using TRIZ Prashant Y. Joglekar joglekarprashant@gmail.com http://innovationnukkad.blgspot.com www.twitter.com/ideabound On Facebook & Twitter Find Me “Prashant Yeshwant Joglekar”
  • 2. Presentation Flow • Innovation Imperative • Innovation Tiers, Types and Territory • Introduction to Systematic Innovation • Proposed Next Steps for Organization 1/30/2014 2
  • 3. Presentation Flow • Innovation Imperative • Innovation Tiers, Types and Territory • Introduction to Systematic Innovation • Proposed Next Steps for Organisation 1/30/2014 3
  • 4. Every Business Likes Arnold Schwarzenegger Strong Healthy Top Line ( Revenue) Controlled Waste Line ( Cost ) Strong Healthy Profit Foundation ( Profit) 1/30/2014 : 4
  • 5. Balanced Score Card – Looking at Business Holistically 1/30/2014 Source : SAS, Balance Score Card 5
  • 6. Innovation – Shortest Definition INNOVATION = Successful Step Change = Positive ROI & Profit 1/30/2014 6
  • 7. System Hits The Limit 1/30/2014 : 7
  • 8. We are Doing Fine – Why We Need to Innovate ( Litmus Test ) Internal environment External Environment Parameters of Measurement More Demanding Innovation Environment ( + 5 Points) Neutral ( 0 Points) Less Demanding innovation environment ( - 5 points) Industry Maturity Highly mature market showing signs of communization Market beginning to show signs of maturity Nascent market with unclear business models Competitive Dynamics Fast-moving industry and /or industry with short product life cycles Moderately changing industry ( e.g. Automobiles) Slow-moving industry where change rarely occurs ( e.g. steel) Asset Intensity Very High; innovation requires major capital equipment ( e.g. pharmaceuticals) Moderate; innovation possible with less capable equipment ( e.g. Consumer Goods) Low; innovation possible with little to no investment (e.g. media) Scope of Innovation Activities Innovation possible only with close coordination across business units, functions and regions Innovation able to be isolated within a single business unit with coordination across functions Innovation possible in separate pockets of the organization with minimal coordination Innovation culture Company in ‘operational’ mode, with innovation viewed largely as distraction Innovation understood to be important, but not something that is everyone’s responsibility Entrepreneurial culture, where innovation is a core part of the company DNA Breadth of Talent < 10 % of employees capable of delivering legitimately disruptive ideas 10-30 % of employees capable of developing legitimately disruptive ideas > 30 % of employees capable of developing legitimately disruptive ideas 1/30/2014 Source : Innovator’s Guide To Growth , SCOT ANTHONY , Harvard Business Press 8
  • 9. Assessing Innovation Environment of a Commodity Business Internal environment External Environment Parameters of Measurement More Demanding Innovation Environment ( + 5 Points) Neutral ( 0 Points) Less Demanding innovation environment ( - 5 points) Industry Maturity Highly mature market showing signs of commoditization Market beginning to show signs of maturity Nascent market with unclear business models Competitive Dynamics Fast-moving industry and /or industry with short product life cycles Moderately changing industry ( e.g. Automobiles) Slow-moving industry where change rarely occurs ( e.g. steel) Asset Intensity Very High; innovation requires major capital equipment ( e.g. pharmaceuticals) Moderate; innovation possible with less capable equipment ( e.g. Consumer Goods) Low; innovation possible with little to no investment (e.g. media) Scope of Innovation Activities Innovation possible only with close coordination across business units, functions and regions Innovation able to be isolated within a single business unit with coordination across functions Innovation possible in separate pockets of the organization with minimal coordination Innovation culture Company in ‘operational’ mode, with innovation viewed largely as distraction Innovation understood to be important, but not something that is everyone’s responsibility Entrepreneurial culture, where innovation is a core part of the company DNA Breadth of Talent < 10 % of employees capable of delivering legitimately disruptive ideas 10-30 % of employees capable of developing legitimately disruptive ideas > 30 % of employees capable of developing legitimately disruptive ideas 1/30/2014 Source : Innovator’s Guide To Growth , SCOT ANTHONY , Harvard Business Press : 9
  • 10. Organization's Approach to Innovation based on assessment Scoring Organization’s Approach 20 to 30 Very Demanding Innovation Environment : In these settings, there is likely need for greater resource allocation, more structured approaches to innovation, more significant senior management guidance and overall organizational autonomy for selected innovation units 10 to 15 Moderately demanding innovation environment : In these contexts, circumstances suggest focusing on one or two key aspects of company’s environment. Significant hands-on management may be required to overcome internal challenges, and /or well-defined structure and process may be needed to foster rapid innovation while effectively managing potential risks -15 to 5 Less Demanding Innovation Environment : Here, focused innovation efforts can be carried out with limited need for direction from senior leaders and minimal investment. Market conditions and the personnel in the organization likely enable a more flexible and slower paced approach to Innovation. -30 to -20 Naturally innovative environment : Innovation in these settings tends to be inherent in the core culture. Innovation efforts can be thus be well integrated with the main lines of business and can occur as a natural part of doing business. In these environments, it is important not to over direct or stifle innovation through excessive structure. 1/30/2014 Source : Innovator’s Guide To Growth , SCOT ANTHONY , Harvard Business Press : 10
  • 11. Organization's Approach to Innovation based on assessment Scoring Innovation Strategy 20 to 30 Very Demanding Innovation Environment : In these settings, there is likely need for greater resource allocation, more structured approaches to innovation, more significant senior management guidance and overall organizational autonomy for selected innovation units 10 to 15 Moderately demanding innovation environment : In these contexts, circumstances suggest focusing on one or two key aspects of company’s environment. Significant hands-on management may be required to overcome internal challenges, and /or well-defined structure and process may be needed to foster rapid innovation while effectively managing potential risks -15 to 5 Less Demanding Innovation Environment : Here, focused innovation efforts can be carried out with limited need for direction from senior leaders and minimal investment. Market conditions and the personnel in the organization likely enable a more flexible and slower paced approach to Innovation. -30 to -20 Naturally innovative environment : Innovation in these settings tends to be inherent in the core culture. Innovation efforts can be thus be well integrated with the main lines of business and can occur as a natural part of doing business. In these environments, it is important not to over direct or stifle innovation through excessive structure. 1/30/2014 Source : Innovator’s Guide To Growth , SCOT ANTHONY , Harvard Business Press : 11
  • 12. Presentation Flow • Innovation Imperative • Innovation Tiers, Types and Territory • Introduction to Systematic Innovation • Proposed Next Steps for Organisation 1/30/2014 12
  • 13. The Innovation Stack Management Innovation ( ‘Work’ Different for e.g. 3M) Strategic Innovation ( ‘Sell’ Different, ‘Southwest’) Product / Service Innovation (‘make’ different, Apple) Operational Innovation (‘make’ better e.g. TOYOTA) 1/30/2014 Source : The Future of Management By GARY HAMEL , Harvard Business Press 13
  • 14. Innovation Territory – Business Model Landscape Key Partners Key Processes Value Proposition Customer Relationship • Strategic alliance • Cooperation between competitors • Joint ventures • BuyerSupplier • Customerprovider • Operating Processes ( Sales and Marketing, Production, Maintenance, R & D, Logistics etc.) • Support Processes ( HR, IT, Administration) • • • • • Personal assistance • Dedicated personal assistance • Self-service • Automated Service • Communities • Co-creation Key Resources • • • • Physical Intellectual Human Financial • • • • • • • Newness Performance Customization Getting the job done Design Brand/Status Price Cost Reduction Risk reduction Accessibility Convenience / Usability Customer Segments • • • • • Mass Market Niche Market Segmented Diversified Multi-sided platform Channels • • • • • Sales Force Web Sales Own Stores Partner Stores Wholesaler Cost Structure Revenue Streams & Pricing Mechanisms • Cost Driven ( Southwest) • Value Driven ( Luxury Hotels) • • • • • • • Selling Products Usage Fee Subscription Fees Lending / Renting / Leasing Licensing Brokerage Fees Advertising Source : Business Model Generation, Alexander Osterwalder, WILEY & SONS 1/30/2014 14
  • 15. Innovation HOT SPOTS – 12 Ways To Innovate Dimension Definition Examples Business Model Element Offerings Develop innovative new products or services • Gillette Mach 3 Turbo, Fusion Razor • Apple i-pod music player and I Tunes music service Value Proposition Platform Use common components or building blocks to create derivative offerings • General Motors OnStar telematics platform • Disney animated movies Key Resources + Offering Solution Create integrated and customized offerings that solve end-to-end customer problems • UPS logistic services Supply Chain Solutions • DuPont building innovations for construction Value Proposition + Offering Customers Discover unmet customer or identify underserved customer segments • Meru Cab • ACT –II POPCORNS Customer relationship + Value Proposition Customer Experience Redesign customer interactions across all touch points and all moments of contact • BOOK My show ( IPL Tickets, Stadium View) • Net-banking Customer relationships + Cost Structure + Value proposition Redefine how company gets paid or create innovative new revenue streams • Steel service centers Customer relationship+ Revenue Streams Redesign core operating processes to improve efficiency & effectiveness • Toyota Production Systems • GE’s SIX SIGMA Processes Core processes + Cost Structure Value Capture Processes 1/30/2014 Source : “12 Ways To Innovate . Mohanbir Sawhney, Kellogg School of Management 15
  • 16. 12 Ways to Innovate Dimension Definition Examples Business Model Element Organization Change form, function or activity scope of the firm • TOYOTA LEXUS Luxury Car Customer Segments + Revenue Streams Supply Chain Think differently about sourcing and fulfillment • ITC e-chaupal Key Resources + Partnership + Cost Structure + Value Proposition Presence Create new distribution channels or innovative point of presence, including the places where offerings can be bought or used by customers • Starbucks music CD sales in coffee stores Channel Create network centric intelligent and integrated offerings • OTIS remote elevator monitoring service Partners Leverage a brand into new domains • Apple, Janguar Customer Segment, Customer Relationship Networking Brand Source : “12 Ways To Innovate . Mohanbir Sawhney, Kellogg School of Management 1/30/2014 16
  • 17. Presentation Flow • Innovation Imperative • Innovation Tiers, Types and Territory • Introduction to Systematic Innovation • Proposed Next Steps for Organisation 1/30/2014 17
  • 18. Challenges to Innovate : External Barriers For Large Firms 1/30/2014 Source : National Knowledge Commission, Govt of India Report 2007 18
  • 19. Challenges to Innovate : Internal Barriers for Large Firms 1/30/2014 Source : National Knowledge Commission, Govt of India Report 2007 : 19
  • 20. Solution : Special Skill Building Programs + Structure 1/30/2014 Source : National Knowledge Commission, Govt of India Report 2007 20
  • 21. Can I be Innovative ??? • But Innovation is Confined to Few Intelligent Men ?? No • So can I be Innovative ?? Yes • How can that be possible ?? This was never a subject in my curriculum Don’t Loose Hope • How can I learn to Innovate now? Is there a systematic way of learning it? Yes, Yes, Yes …… 1/30/2014 Source : 21
  • 22. TRIZ alias Systematic Innovation 1/30/2014 Source : 22
  • 23. Father & Propagator of Systematic Innovation (TRIZ) 1/30/2014 Source : 23
  • 24. Systematic Innovation – Distilling World’s Best Knowledge Business ‘psychology’ Science Because we spent the last 12 years studying innovations from the last 100 years: ~3000 management texts published per year Patents ~7500 academic/trade journals in circulation ~ > 400,000 patents granted ‘Breakthrough’ Database 1/30/2014 Source : 24
  • 25. TRIZ and It’s Brief History 1. Problems and Solutions were repeated across industries and Sciences ( Someone Somewhere Has Already Solved a Problem Similar Like Mine) 2. Patterns of technical evolution were repeated across industries and sciences 3. Innovations used scientific effects outside the field where they were developed 1/30/2014 Source : 25
  • 26. Innovation Levels Level 1 Routine design problems solved by methods well known within the specialty. Usually no invention needed. example: use of ‘coal’ for writing Level 2 Minor improvements to an existing system using methods known within the industry. example: ‘Graphite Pencil’ (wrapped coal stick) Level 3 Fundamental improvement to an existing system using methods known outside the industry. example: Ink Pen (ink instead of coal) Level 4 A new generation of a system that entails a new principle for performing the system's primary functions. Solutions are found more often in science than technology. Example Printer (another whole system for writing) Level 5 A rare scientific discovery or pioneering invention of an essentially new system. example: electronic Pen & Paper 1/30/2014 Source : 26
  • 27. Systematic Innovation Cycle Generic problem set Generic solution set My Problem My Solution 1/30/2014 Source : 27
  • 28. Innovation is Solving Problem Recognized / Unrecognized Problem is nothing but the gap between “What We Want” and “What We Have”. -Edward De Bono “The significant problems we face cannot be solved at the same level of thinking we were at when we created them” -Albert Einstein 1/30/2014 Source : 28
  • 29. Five Pillars of Breakthrough Methodology 1/30/2014 Source : 29
  • 32. IDEAL FINAL RESULT – Deployment Philosophy 1/30/2014 Source : 32
  • 34. COCA COLA CAN EVOLUTION Principle 17 : Another Dimension 1/30/2014 Source : 34
  • 35. OIL SPILL Problem Parameter We Are Trying To Improve STABILITY ( Matrix Parameter 21) Parameter That Prevents Us from Improving Temperature ( Matrix Parameter 22) Inventive Principles 35 – Parameter Changes 40 – Composite Material 03- Local Quality 01- Segmentation 18 – Mechanical Vibration 24 - Intermediary 1/30/2014 Source : Are you solving the right problem : Dwayne Spradlin, HBR September 2012 : 35
  • 36. My Problem Is So Unique…. 1/30/2014 Source : 36
  • 37. Someone Somewhere Has Solved Problem Like Yours 1/30/2014 Source : 37
  • 40. How to Read The Plots 1/30/2014 Source : 40
  • 42. PIZZA BOX – System Evolution Business Implication = 14 Mn USD 1/30/2014 Source : 42
  • 43. Application of TRENDS of EVOLUTION 1/30/2014 Source : 43
  • 44. Business Trend : Customer Experience Trend Commodity 1/30/2014 Product Service Source : Experience Transformation 44
  • 45. DATA - Information - Knowledge - Wisdom Data 1/30/2014 Knowledge Information Source : WISDOM 45
  • 47. Remove Water From GLASS 1/30/2014 Source : 47
  • 50. Tool Map Problem Definition Divergent Convergent Ideal Final Result / Attribute Function & Attribute Analysis Resources Evoplot Analysis Why & What’s Stopping Analysis Size- Time-Interface-Cost QFD Spiral Dynamics S-Field Analysis Smart-Little People S-Curve Analysis Subversion Analysis Constraint Mapping Root Cause Analysis Root Contradiction Analysis Root Contradictions Contradiction Matrix Perception Mapping Omega Life Views Red Team Analysis Kepner-Tregoe 1/30/2014 Solution Generation Divergent Inventive Standards Inventive Principles Trends Trimming De-BONO SCAMPER Oblique Strategies Convergent Multi Criteria Decision Analysis Function Data Base Patent Data Base Source : Hands On Systematic Innovation , IFR Press, UK 50
  • 52. Companions of Process Excellence Systematic Innovation – Technical Breaking Psychological Inertia 1/30/2014 Systematic Innovation – Business & Management Latest Research On Contradictions Source : Systematic Innovation – Software trenDNA – Understanding Populations Better Than They Understand Themselves 52
  • 53. Presentation Flow • Innovation Imperative • Innovation Tiers, Types and Territory • Introduction to Systematic Innovation • Proposed Next Steps for an organisation 1/30/2014 Source : 53
  • 54. TRIZ Propagation at SAMSUNG 1/30/2014 Source : 54
  • 55. My Value Proposition 1. Systematic Innovation Workshops for Technical / Business / IT domains 2. Learning deployment by solving problems in hand 3. Specific Business Outcome Driven Innovation Project 4. Product / Process Driven Transformation 5. Mapping innovation landscape for an organization to drive innovation agenda more inclusively 1/30/2014 Source : 55
  • 56. Innovation Maturity Journey Maturity Stage Journey SEEDING What Do We Do Here CHAMPIONING MANAGING STRATEGISING VENTURING 1/30/2014 Source : 56
  • 57. Innovation Maturity Journey - Seeding Maturity Stage Journey What Do We Do Here SEEDING In this phase it is best to achieve a small scale success as not many would want to disrupt an organization that seems to be working well. The key is some success than scale. CHAMPIONING The primary aim during this stage is to achieve a broad acceptance across organization that innovation is a key business process rather than an ethereal, high-risk enemy. Here quantifying the improvements is essential. MANAGING This phase is little tricky, as due to initial success there are many who wants to jump the bandwagon. In this phase search needs to be for the people who are passionate and want to bring about the change. This phase has to be managed delicately, else there will be more presentations & no work  STRATEGISING There is going to be someone with full-time responsibilities for innovation within the team. This is the stage where the team members need to develop new skills such as scenario planning, story-telling. People are beginning to see central innovation team as ‘the place to be’ for the best chances of career progression. VENTURING Here the organizations venture into different areas of business those are not relevant to their so called core. Here the organization has self-adapting management structures and teams. 1/30/2014 Source : 57
  • 58. Innovation Maturity Journey - Championing Maturity Stage Journey What Do We Do Here SEEDING In this phase it is best to achieve a small scale success as not many would want to disrupt an organization that seems to be working well. The key is some success than scale. CHAMPIONING The primary aim during this stage is to achieve a broad acceptance across organization that innovation is a key business process rather than an ethereal, high-risk enemy. Here quantifying the improvements is essential. MANAGING This phase is little tricky, as due to initial success there are many who wants to jump the bandwagon. In this phase search needs to be for the people who are passionate and want to bring about the change. This phase has to be managed delicately, else there will be more presentations & no work  STRATEGISING There is going to be someone with full-time responsibilities for innovation within the team. This is the stage where the team members need to develop new skills such as scenario planning, story-telling. People are beginning to see central innovation team as ‘the place to be’ for the best chances of career progression. VENTURING Here the organizations venture into different areas of business those are not relevant to their so called core. Here the organization has self-adapting management structures and teams. 1/30/2014 Source : 58
  • 59. Innovation Maturity Journey - Managing Maturity Stage Journey What Do We Do Here SEEDING In this phase it is best to achieve a small scale success as not many would want to disrupt an organization that seems to be working well. The key is some success than scale. CHAMPIONING The primary aim during this stage is to achieve a broad acceptance across organization that innovation is a key business process rather than an ethereal, high-risk enemy. Here quantifying the improvements is essential. MANAGING This phase is little tricky, as due to initial success there are many who wants to jump the bandwagon. In this phase search needs to be for the people who are passionate and want to bring about the change. This phase has to be managed delicately, else there will be more presentations & no work  STRATEGISING There is going to be someone with full-time responsibilities for innovation within the team. This is the stage where the team members need to develop new skills such as scenario planning, story-telling. People are beginning to see central innovation team as ‘the place to be’ for the best chances of career progression. VENTURING Here the organizations venture into different areas of business those are not relevant to their so called core. Here the organization has self-adapting management structures and teams. 1/30/2014 Source : 59
  • 60. Innovation Maturity Journey - Strategizing Maturity Stage Journey What Do We Do Here SEEDING In this phase it is best to achieve a small scale success as not many would want to disrupt an organization that seems to be working well. The key is some success than scale. CHAMPIONING The primary aim during this stage is to achieve a broad acceptance across organization that innovation is a key business process rather than an ethereal, high-risk enemy. Here quantifying the improvements is essential. MANAGING This phase is little tricky, as due to initial success there are many who wants to jump the bandwagon. In this phase search needs to be for the people who are passionate and want to bring about the change. This phase has to be managed delicately, else there will be more presentations & no work  STRATEGISING There is going to be someone with full-time responsibilities for innovation within the team. This is the stage where the team members need to develop new skills such as scenario planning, story-telling. People are beginning to see central innovation team as ‘the place to be’ for the best chances of career progression. VENTURING Here the organizations venture into different areas of business those are not relevant to their so called core. Here the organization has self-adapting management structures and teams. 1/30/2014 Source : 60
  • 61. Innovation Maturity Journey - Venturing Maturity Stage Journey What Do We Do Here SEEDING In this phase it is best to achieve a small scale success as not many would want to disrupt an organization that seems to be working well. The key is some success than scale. CHAMPIONING The primary aim during this stage is to achieve a broad acceptance across organization that innovation is a key business process rather than an ethereal, high-risk enemy. Here quantifying the improvements is essential. MANAGING This phase is little tricky, as due to initial success there are many who wants to jump the bandwagon. In this phase search needs to be for the people who are passionate and want to bring about the change. This phase has to be managed delicately, else there will be more presentations & no work  STRATEGISING There is going to be someone with full-time responsibilities for innovation within the team. This is the stage where the team members need to develop new skills such as scenario planning, story-telling. People are beginning to see central innovation team as ‘the place to be’ for the best chances of career progression. VENTURING Here the organizations venture into different areas of business those are not relevant to their so called core. Here the organization has self-adapting management structures and teams. 1/30/2014 Source : 61
  • 62. Innovation Infrastructure 1/30/2014 Source : European Summit for the Future 2009 62
  • 63. Elements of Knowledge Management Framework Different Businesses, Different Context, Common Ideas Contradiction Matrix & Inventive Solution ( “Matrix +” Suite) Functional Data Bases (http://function.creax.com/) Evolutionary Potential for Systems ( Technical, Business, Software) ( EVOPlot +) Resource Data Base ( Resource Category wise For e.g. Free / Low Cost Resources, Human Resources, Smart Resources etc) Systematic Innovation TOOL KIT Mapping Knowledge Networks ( www.orgnet.com ) 1/30/2014 Source : 63