how to make product innovation through processes innovation in the company

1. Products Innovation through Processes Innovation
"Doing Business in times of crisis"
miniCamp at BolognaIN – April 20th, 2009
Claudia Miani

2. My experience
Executive Consultant in Management & Engineering
15 years in multinational corporate’ and small
companies’ R&D, operating on mech engineering,
telecommunications and biomedical markets, been at
last the Development Director of a major international
medical company
Development of a wide range of products: automatic
machines for packaging, plastic components,
telecommunications equipment, medical devices and
equipment
Wise mix of technical/scientific competences and
curiosity, with strong passion for coaching and
growing people. Motivation and long-deep experience.
Technical and managerial Advisor to lead companies
in improving their Innovation and New Product
Development awareness and in adapting their
products’ range to the "new market“ needs
Organization Development (structure and processes)
to improve interaction between R&D and the other
departments
090420 CMiani Copyright© 2009 CM Consulenze Manageriali 2

3. How Innovation is defined
Innovation is a discontinuity in knowledge and know-how that could
generates a significant productivity increase either doing more
things with the same resources (development), or doing the same
things with fewer resources (sustainability). It becomes systemic
when the productivity increase generates sustainable expansion in the
broadest sense: extended (for all) and persistent (over time).
According to the OCSE (Organization for Economic Cooperation and
Development), "Innovation is the ability to manage knowledge in order
to generate competitive advantage through the production of new
goods, processes and organizational systems."
090420 CMiani Copyright© 2009 CM Consulenze Manageriali 3

4. Innovation in business
The company, an End-To-End process to be "innovated" in all its component
Select a process,
define the vision,
implement it,
learn from experience,
extend the concepts
throughout the company!
... With the only one
objective: increasing the
company profitability!
think BIG start small, scale fast
BIG,
090420 CMiani Copyright© 2009 CM Consulenze Manageriali 4

5. Products Innovation with new Design Processes
Make new Products
Medium-long term products strategy with relative RoadMap
Modular Product Architecture (MAP)
Product Variants and use of Product Data Management
Make current products with new Production Systems
Concurrent Engineering for “Product + Process "
Lean Production together with Lean Development
High-tech Manufacturing Engineering, with high automated production
Updating current products with new Services
Customer oriented Sale, Pre & Post Sales
Spare Parts, Maintenance, Repairing
Update the current products with new Costs
Design To Cost
Lean Production and Lean Thinking
090420 CMiani Copyright© 2009 CM Consulenze Manageriali 5

6. Processes Innovation: Human Resource Management
The staff is the biggest "asset" in our companies
The keys to success are: Having the best one and handling it the best
Personnel Selection and Career Path
LinkedIn, Video CV, Virtual Fair
Performance culture and meritocracy
Internal Job Posting and Job Rotation
Resource Management and Training
Lesson learned
E-learning, webinar and funded courses
International training to increase professional and cultural exchange
Innovative and creative Team Building
Compenban
Tools for participation in saving business costs
Campaigns for energy saving and environmental protection
Discount cards and corporate conventions
090420 CMiani Copyright© 2009 CM Consulenze Manageriali 6

7. Processes Innovation: Projects Management
Define the team with clear roles and responsibilities - with innovative
approach
Define the unequivocal design requirements - with innovative processes
Define all the interfaces and verify the correctness
Essentials:
Project Documentation
Registration of all the crucial steps, calculations, decisions, references,
piece of information
Risk Management
To highlight unknown/possible problems, which may arise during the
planned activities
Concurrent Design
Activities of multi-design that take place simultaneously
Lesson learned for continuous improvement (Kaizen)
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8. Avoid projects failure
1. Incomplete / unclear requirements 13.1%
2. Little involvement 12.4%
16% success
3. Lack of Resources 10.6% 31% partial
53% failure
4. No support from management 9.3%
5. Late specification changes 8.7%
6. Lack / insufficient planning 8.1%
7. False expectations from achievement and performance 9.9%
8. Abandoned Project 7.5% s
ure
f ail
e or ons
th f
of ere reas
e
N on w ical
n
ch
Sources: Standish Group te
090420 CMiani Copyright© 2009 CM Consulenze Manageriali 8

9. Processes Innovation: Production Resources Management
Lean Production
Six-sigma
TOC
TRIZ
In fact, the most recent theory of the Improved Production Processes
states that the optimal process is a "wise" mix of Lean, Six Sigma and
Theory of Constraints, which has to identify and capitalize our
company financial levers
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10. Processes Innovation: Products’ Service Management (1)
Pre Sales
Direct contact with customers to understand what they perceive as “value”
and to reposition our products on "that" value
Spare Parts
Replaceable Unit in the design process (to reduce WIP)
Standardized products (to facilitate distribution chains and reuse - WIP)
Manual (is part of the product or service?)
Written in a flexible way (products changes are easily up-to-gradable)
Possibility to be used in a flexible and innovative way
Same language in all contexts (Language Sharing)
Repairing
How many/which components (only high value comps, all or a defined mix?)
What is the “real value” that our customer perceive and for what he’s
available to pay?
090420 CMiani Copyright© 2009 CM Consulenze Manageriali 10

11. Processes Innovation: Products’ Service Management (2)
Maintenance
MTBF evaluation and proper predictive Maintenance
Repeatable and high quality Maintenance processes
"Portable Maintenance book” on multi-media tools
Sales
Customer orientation, demand analysis, consumer needs evaluation
Demand creation, "pulling" the market form the bottom
Logistic/Distribution
Total integration with suppliers and sales/distribution
Transportation "On Time In Full" managed with integrated and innovative SW
Customer Support
Integrated, direct line to the end-user
Multi-media communications
Cases recording and traceability
What is the “real value” that our customer perceive and for what he’s
available to pay?
090420 CMiani Copyright© 2009 CM Consulenze Manageriali 11

12. Processes Innovation : Financial Resources Management
Determine the "Trade-offs”
Model the business structure in order to monitor it effectively and to
make predictions that enable more objective decisions
Always have an indicators dashboard to monitor all processes
Create Baseline Model
Model Expense Model Cost Model Performance Model
Overrun Overrun Shortfall Schedule Delay
Determine Total Profit Impact of Missing Objective
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