Manufacturing Innovation Model for UCI Workshop

UC Irvine
Institute for
Innovation
I N F O L O G I C
The logical approach to harness innovation
Presented by:
Has Patel
Infologic, Inc.
has.patel@infologic.com
(888) 325 0500 Ext. 100
INFOLOGIC, INC.
25 Palatine # 212
Irvine, CA 92612
www.infologic.com
National Manufacturing Day
October 2, 2015
Manufacturing Innovation Model

1
Copyright © 2009 INFOLOGIC Inc. All rights reserved.
Global Innovation Snapshot
(Source : Battelle Corporation/R&D Magazine)

2
Why Manufacturing & Innovation ?
( Source : NIST )

3
National Manufacturing Strategy
Advanced manufacturing is …
a family of activities that (a) depend on the use and
coordination of information, automation,
computation, software, sensing, and networking,
and/or (b) make use of cutting-edge materials and
emerging capabilities enabled by the physical and
biological sciences, for example nanotechnology,
chemistry, and biology. This involves both new ways
to manufacture existing products, and especially the
manufacture of new products emerging from new
advanced technologies.
The final AMP report makes three key pillars
that support American manufacturing ….
1) enabling innovation, 2) securing the talent
pipeline, & 3) improving the business climate.
UC Irvine Workshop 9/2012 – A Major Player in defining Strategy

4
Federal Government Initiatives : Manufacturing
(source : manufacturing.gov)

5
Manufacturing and U.S. Innovation System
“ …..The acceleration of
innovation for advanced
manufacturing requires
bridging a number of gaps in
the present U.S. innovation
system, particularly……
the gap between research and
development (R&D) activities
and the deployment of
technological innovations in
domestic production of
goods……. “

6
Valley of Death ?
Disconnect between SUPPLY side and DEMAND side
R&D
Portfolio
• Federal &
Academic
Labs,
including
NNMI
• OEM Labs
• IP-based
small and
emerging
companies
• International
R&D
Technology
Needs:
Manufacturing
Enterprises
Wasted R&D Efforts
Immature technologies
Unmet End user technology needs
Deterioration of US Innovation Superiority
SUPPLY DEMAND

7
“DEMAND”-side Valley of Death: Why?
R&D
Portfolio
Technology
Needs:
Manufacturing
Enterprises
Reasons : Lack of …
1. Resources to research & utilize external R&D and national
manufacturing initiatives;
2. Strategies to create Innovation culture, and link it to the
Lean initiatives; and
3. Processes to seek, assess and transit R&D into
manufacturing.
Outcome : loss of potential markets, profitability and future
viability of these enterprises.
Propose: A Manufacturing Innovation Model

8
Research Interest : Innovation Management
Published Papers & Presentations
1. “Successfully Transitioning R&D and Technologies to Commercial
Products“ – Aerospace & Defense Forum, OC Chapter, November 2014
2. “Innovation Model for DoD S&T Program” – NDIA/U S Navy SPAWAR
Executive Forum, May 2014
3. “The Creative Destruction of Defense S&T Program” - 14th NDIA
Science and Engineering Technologies Conference, April 2013
4. “Reinventing Defense Innovation Ecosystem: S&T Program to
Innovation Program” - 15th NDIA Systems Engineering Conference, 2012
5. “Competitive R&D Processes, Metrics and Practices” - Institute of
Management Consultants, Southern California Technology SIG Meeting, Oct
2010
6. “S&T Portfolio and Performance Maturity” - 12th Annual National
Defense Industrial Association (NDIA) Systems Engineering Conference,
Oct 2009
7. “Open Innovation and Technology Maturity Analysis” - 2nd DOD
Technology Maturity Conference, September 2007.
8. “Assessing Technology Readiness and Maturity” – A Step-by-Step
Process” - Management Roundtable Seminar, March 2007.
9. “Technology Evaluation Cycles and Technology Maturity” - 1st DOD
Technology Maturity Conference, May 2006.
10.“TechIP: A Methodology for the Emerging Technology Insertion
and Integration” - 24th Army Science Conference, November 2004

9
• Learn an emerging & broader Innovation
Management model which also seeks innovations
into Services, Process and Execution strategies.
• Balance Innovation & Lean.
Develop
Innovation
Culture
• Learn to leverage Government initiatives
• Scale Government, Academia and Enterprise R&D
and Technology Management tools.
• Utilize a four-step process to develop the plan
Innovation
and
Technology
Plan
• Learn to successfully transit Emerging
Technologies and R&D into Commercial Products
• Conduct a CMMI™ based Maturity Analysis
• Integrate IT with OT
Implement

10
Develop
Innovation
Culture
Innovation
and
Technology
Plan
Implement

11
Innovation : A Broader Notion
What is Innovation ?
“Innovation is exploiting and translating R&D and Emerging
technologies into Products (materials and non-materials),
Processes & Execution models that incorporate Enterprise
strategy platforms and Analytics”
Product
ExecutionProcess

12
 “Service systems are dynamic configurations of
people, technologies, organizations and shared
information that create and deliver value to
customers, providers and other stakeholders”.
Fact Check: Service Science
 “The importance of service has not led to
increased investment in service research and
development”.
 America Competes Act (S.761 section 1106)
“ ….. would also express a sense of Congress
that the federal government should better
understand and respond strategically to the
emerging management and learning discipline
known as “service science.” ……”

13
Fact Check: Corporate Innovation Directions
• 2006: “I can’t sustain a significant research activity at
IBM if our research is not relevant to more than half
of the company’s revenues going forward”
Dr. Paul Horn, Senior VP of Research at IBM
• 2014: IBM Services Innovation Laboratories :
1/3 of R&D Budget ($6 Billion; 3,000 Scientists) for Services
& Analytic R&D
IBM
•“Rather than growing by simply bringing innovative new
hardware to the market, Apple transformed its business
model…. This enabled Apple and its partners to extract
ongoing value from the use of Apple hardware and
software.” MIT Sloane Management Review
• “It’s technology married with liberal arts, married with
humanities, that yields us the results that make our heart sing.
Steve Jobs reminded us ..” CIO Magazine
Apple

14
Fact Check: Academic Innovation Directions
• National Academies Multi-Disciplinary Innovation :
“Team Science” - $40 Million R&D initiative for
collaboration between Physical Sciences, Humanities and
Social Scientists.
• NSF Service Science Grants : Seeks basic research into
(a) Service Enterprise Systems , and (b) Partnerships for
Innovation – Develop platforms for Smart Services.
National
Academies
&
National
Science
Foundation
• "Innovation: The Classic Traps” professor Rosabeth Moss
Kanter of the Harvard Business School quotes …
• “ the most common mistake companies make is to
apply traditional corporate processes to new
projects. “
Harvard
Business
School

15
Fact Check : National Academy of Engineering
“Making Value for America”
Technological developments, reengineered
operations, and economic forces are
changing the way products and services are
conceived, designed, made, distributed,
and supported.
Manufacturing or “making things” can no
longer be considered separate from the
value chain, the system of research and
development, product design, software
development and integration, and lifecycle
service activities performed to deliver a
valuable product or service to market.
Embracing the Future of Manufacturing,
Technology and Work

16
Several approaches shape our thinking as
we attack the need for breakthrough
capabilities for national security:
1) Game-changing new systems
technologies.
2) Layered, multi-technology war fighting
concepts
3) Adaptable systems and solutions.
4) Innovation to invert the cost equation.
“ … Today we seek to use innovation to
radically invert the cost dynamic. How can
we impose more cost on our adversaries and
less on ourselves, thereby increasing our
deterrent?
Can innovative systems architectures,
autonomy, adaptability, and new processes
offer new possibilities? These approaches
may allow us to reinvent development,
production, logistics, operations, and
maintenance in ways that radically change
the cost equation…. “
Fact Check: DARPA R&D Strategies & Approaches
(Defense Advanced Research Projects Agency)

17
Innovation Management Model
Technology Transfer Innovation Management
Traditional Notion A Broader Notion
Voice of the Stakeholders
Integration
VALUE
Radical
Innovation
Evolutionary
Innovation
INCREMENTAL
DEVELOPMENT
PRODUCT
MODEL
SPIRAL
DEVELOPMENT
Voice of the User
Methodologies & Tools
M
A
T
U
R
I
T
Y VALUE
Radical
Innovation
Evolutionary
Innovation
CMMI
STAGES
PROCESS
MODEL
M
A
T
U
R
I
T
Y
Voice of the Knowledge Worker
Lean Culture
VALUE
Radical
Innovation
Evolutionary
Innovation
Enterprise
Performance
Management
(EPM)
EXECUTION
MODEL
A
N
A
L
Y
T
I
C
S
A
N
A
L
Y
T
I
C
S
© Infologic, Inc.

18
Case Study: Apple iPhone Family
Product
Innovation
• Materials
iPhone (User
Interface, Design &
Interoperability,
Evolution – iPhone to
3G, 4 to 5)
• Non-Materials
iTunes (software
maintenance and
download; supply chain
management;
synchronization)
Process
Innovation
• Apps
Development
environment
• Manufacturing to
integration (100%
Components
Outsourced;
Design & iOS
Software internal)
Execution
Innovation
• Distribution
Agreement with
wireless carriers
• Apps Revenue
30%
• Retail Stores as a
Knowledge Center
• Genius Bar

19
Manufacturing Innovation Agenda
Develop
Innovation
Culture
Innovation
and
Technology
Plan
Implement

20
Step Goals Process
1. Develop Strategies Link Corporate
strategies to current
and future products &
technologies
rManager
Requirements Manager
2. Needs
Assessments
Develop current and
future technology
needs and develop a
technology plan
sManager
Selection Manager
3. Implement,
Mature & Measure
Conduct the planned
tasks, mature and
measure
mManager
Multi-process Manager
4. Manage Manage and update the
plan in an Open
Environment
oiManager
Open Innovation
Manager
Steps : Technology & Innovation Plan

21
Technology & Innovation Plan
sManager
rManager
mManager
eBusiness ServicesInnovation Cash
Curve
Customer
Developer
Programmatic
Technology
Risk
ICD
AoA
TRL/MRL
TDS
oiManager
sManager Tech. Hype
Cycle

22
Technology Hype Cycle
(Source : Gartner Group)

23
Manufacturing & Technology Readiness
(Source : NASA and DoD)

24
Innovation Cash Curve
(Source : Harvard Business School)

25
Develop
Innovation
Culture
Innovation
and
Technology
Plan
Implement

26
Technology
Strategies,
Needs, Threats &
Opportunities
Analysis
Internal R&D
Federally Funded R&D
(FFRDEC, SBIR)
Academic, Industrial
& International R&D
CREs
Critical
Research
Elements
fCRE – Long Term
CRE to meet future
Years needs
tCRE – Short Term
CRE to meet
today’s needs
New
Product A
New
Product X
Existing
Product X
T
E
C
H
N
O
L
O
G
Y
T
R
I
N
S
I
T
I
O
N
Existing
Product A
Manage & Measure
Research
Transition
Agreements
Research
Transfer
Agreements
fCRE
tCRE
CTEs
Critical
Technology
Elements
Intellectual Property
Management
R&D Portfolio
Management
Product Life Cycle
Management
Technology Implementation
© Infologic, Inc.

27
Innovation Maturity Analysis
LEVEL 1: Initial
Poorly performed; Reactive
LEVEL 0: Incomplete
Not performed; Partially performed
LEVEL 2: Managed
Characterized as a Project & Reactive
LEVEL 3: Defined
Proactive; Organization wide
LEVEL 4: Quantitatively
Managed
Measured & Controlled
LEVEL 5: Optimizing
Focus on Process
Improvement
Innovation not on the radar screen; No
strong awareness of Innovation
opportunities
Innovation opportunities recognized;
Localized inconsistent Innovation
experience
Approaches to Innovation recognized;
Applied to Key projects; Usage consistency
and collaboration among projects.
A form of Innovation management model
implemented; Product, Process and
Execution efforts are coordinated
Innovation Management model supported by
consistent processes across the organization;
Executive Management support; Matrices used.
Full Innovation Management model is implemented; Innovation
Management is part of organization strategies; Creating and
managing IP is key component of all key initiatives.
“if you can’t Measure; you can’t Manage” - Dr. Peter Drucker
Innovation Management Model CMMI™© Infologic, Inc.

28
Develop
Innovation
Culture
Innovation
and
Technology
Plan
Implement

29
Proactive
Model
(Lean)
Adopt
Change
Growth
Model
(Innovation)
Takeaway : Demand-side (Manufacturers)
Adopt Change by integrating Information Technology (IT)
and Manufacturing Operations (OT) Technology.
IT include Cloud, Mobile, Big Data and Analytics.
OT include 3D Printing, Robotics and IoT.
Stagnant
Model

30
Takeaway : Supply-side (Start Up Teams)
• Multi-disciplinary team (CALIt2, Beckman Center, Social Sciences)
• Adopt broad Innovation Model (also innovate Services, Processes)
• Consider Integration model (excellent OEM resources, e.g: Intel,
Microsoft, IBM)
• Participate in U.S. Manufacturing Innovation initiatives (e.g. NNMI)
• Employ Best practices (TRL/MRL, Hype Cycle, etc.) analyses to
measure R&D/Technology maturity. TRL/MRL Lunch & Learn on
December 4
IP and Technology
Development
• Position your products to move clients from existing business
models (“stagnant” or “proactive”) to ‘Innovation”
• Consider Industrial vertical even if developing consumer products
(e.g; wearable has significant potential for manufacturing
application)
• Partner with OEMs to market in Foreign countries
• Adopt SaaS/OPEX model
• Help manufacturing clients to integrate Information Technology (IT)
and Manufacturing Operations Technology (OT)
Marketing and
Commercialization

31
Conclusions & Call to Action
OJECTIVE :
Maintain and Enhance the
American innovation
Superiority
1. SUPPLY : Understand
DEMAND-side issues and
develop and position
offerings accordingly.
2: DEMAND : Migrate from
Stagnant or Proactive to
Innovation models
3: INNOVATION
STAKEHOLDRES: Assist
SUPPLY and DEMAND
enterprises to achieve their
goals

I rest my case !
I N F O L O G I C
The logical approach to harness innovation
Presented by:
Has Patel
Infologic, Inc.
has.patel@infologic.com
(888) 325 0500 Ext. 100
INFOLOGIC, INC.
25 Palatine # 212
Irvine, CA 92612
www.infologic.com
National Manufacturing Day
October 2, 2015
Manufacturing Innovation Model I rest my case !

Manufacturing Innovation Model for UCI Workshop

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