NASSCOM Engineering Summit 2014: Master class LEADING INNOVATION: Strategy to sustain beyond 2020: Ripi Singh

Ripi Singh, +1 (860) 816-4420, [email protected] 10/3/2014

Copyright 2014 – Plus4Pi LLC Page 1 of 6 .

Leading InnovationStrategy to sustain beyond 2020

Workshop at Engineering Summit NASSCOM, Pune. Oct 2014

Dr. Ripi SinghPresident and Innovator

Plus4Pi LLC, USA

www.plus4pi.com +1 (860) 816-4420 [email protected]

10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 1

Robust Innovation Requires Synergy & Alignment

Purpose of a business is to make profit, By adding value for a client, Through product/service offering, requiring a certain level of potential.

It is possible and appropriate to be Innovative at all elements of this value stream


Focus

Potential

Offerings

Clients

Financial

Market

CI

Focus – Alignment Model


VisionStrategy

Road MapAnnual Plan

Clients

KPIs$ # %

Offering(s)

Employees: Objectives & Performance; Development & Behavior

Mission

Values

Knowledge & Assets

White space

R&D (IP)

Focus – Possible Competitive Strategies

Low Price Offerings

◦ Innovative Process

Generally internal

◦ Focus on Cost to market

◦ Need diverse supply chain

◦ Benchmark Offering

Process, Suppliers,

Excellence in Offerings

◦ Innovative offerings

Generally deliverable

◦ Focus on Speed to Market

◦ Need barriers to entry

◦ Benchmark Potential

Talent, Knowledge,

410/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India.

90

95

100

105

110

115

KP

I-1

KP

I-2

KP

I-3

KP

I-4

KP

I-5

KP

I-6

% R

ela

tive t

o

Ind

ustr

y S

td in

YY

Benchmarking Canvas

Comp-1

Comp-2

Comp-3

New Target

Focus – Possible Competitor Strategies


Data Processing: Review pieces,

FilterIntegrated picture

And Validation

Market demands and

Client feedback

Supplier Offerings and

resistances

M&A

Universities

Industry Committees

Published Materials

Possible Offerings

Offering – Innovation Dashboard

Item # Aim Min Max Q1 Q2 Q3 EOY

Fin

ance 2 yr Av ROI Av $, %,

R&D Invest $, %GM

Cli

ent Sponsored R&D $

Feedback Comments

Off

erin

gs Ideas # Accepted

IP # Patents

Po

ten

tial

Talent Gap Heads

Knowledge Gap Months

Facilities Gap $


http://www.plus4pi.com/

mailto:[email protected]



Focus – Robust Roadmap Development


Data Processing: Opportunities,

Options,Scenarios,

Integrated pictureROI

Prioritization

Tops DOWNCorporate Strategy

Bottoms UPEmployee ideas

COPQ Lessons

Competitive Intel

Market Trends

Benchmarking

Roadmap

Focus – Innovation Traps and Pitfalls

Innovation Deficiency Disorder (IDD)

◦ No Client(s), No Money

◦ Yes Client(s), No Time

8

Focus: Poor Peripheral vision/hearing

Potential: IP lost while outsourcing

Offering: Waiting for perfect solution

Client: Production trumps Innovation

Financial: Lack of sustained funding

10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India.

Potential – Maps and Gaps (risks)

Visual Mapping

Business Needs and Objectives

Visual Design

Potential Assessments

AnalyzeLeadership Agility

Capacity & Capability

Opportunities

Generate Revenue

GapsRisks

DevelopPotential

Current Should Be

Short Term Anxiety Long Term BenefitsNear Term Actions

Potential refers to Talent, Knowledge, IP, and other Assets


Potential – Gaps Matrix

Comparing Desired and Actual Potential Distributions

Required Actual

AnalysisGaps

Surplus

ActionsAccept

AcquireDevelop

Strategic PlansBusiness Needs Market Trends

Design Process

Potential refers to Talent, Knowledge, IP, and other Assets


Potential – Development Processes

Aware of Existing PotentialDEPLOY IT

Unaware of Required PotentialASSUME IT

Unaware of Existing PotentialACCEPT IT

Aware of Required PotentialACQUIRE IT

Awareness

Existence

Strength ReviewsStay InterviewsSearch toolsInventory checks

Risk ReviewsBenchmarkingAdvisory BoardPrototyping

Talent : Hire & TrainKnowledge: R&DAssets: Acquire


Level 5

Level 4

Level 3

Level 2

Level 1

Sustainable Team

◦ CI, Challenges, New hire Assimilation, Peripherally savvy,

High Performing Team

◦ Roles+Resp+Obj aligned; Trust; Learning

Great Team

◦ Single goal, All skills, Norms, Open comm

Good Group

◦ Functioning individuals, Common traits

(Dis-functional) Group

Potential – Team Development




Level 5

Level 4

Level 3

Level 2

Level 1

Network of Excellence

◦ Multiple entities with diverse potential

Center of Excellence

◦ Single entity (a global leader)

Partnership agreements

◦ Work together relationship

Sponsored R&D

◦ Get the job done from an external entity

Leasing Assets

◦ No Ownership, Commodity type

Potential – Leveraging Network Potential


Level 5

Level 4

Level 3

Level 2

Level 1

Strategic advantage for offerings

Search peripheral offerings/clients

Aware of int. peripheral Potential,

Unaware or insufficient resources

Missing Boundaries

Potential – Leveraging Peripheral Potential


Potential – Traps and Pitfalls


Confidence without a Potential map

Training is an expense

Inadequate bench strength

Poor balance of energy and wisdom

Managers are smarter than workers

Offerings – Innovation Scope-Spectrum-Impact

Individual Organization Corporation Market Lifestyle

Impact

Dis

rup

tio

nFundamentals

Products

& Service

Offerings

Tools and

Processes

Personal

EffectivenessWork-life

Top Line

Bottom Line

Humanity

Maintain


Offerings – Returns on Innovation Types

Immediate Far Term Time to Market

Su

cce

ss L

ike

liho

od

Certain

Uncertain

Eco-Adaptive

Evolutionary

Disruptive

Crisis


Innovation Strategy – Rapid Evolution

Smart Forecasting

◦ Separate technology, parameters, expectations, constraints, regulations, …

◦ Extrapolate the trends in each 10-20 years out

◦ Synthesize individual forecasts in future offering

◦ Engage experts to validate the vision

◦ Prepare for leap of faith

Affordable Development Plan

◦ Create the vision for intermediate steps

◦ Rapidly & Incrementally create intermediate offerings




Innovation Strategy – Disruptive Possibility

Effective Disruptive Team

◦ Diverse talents, uninterrupted funding

◦ Unconstrained by process, IP Secured

Affordable Development Plan

◦ Conceive the offering that will shift the paradigm

◦ Separate into breakthrough & conventional parts

Align conventional tech with developing products, track schedule, ROI

Fund the breakthrough portion separately, monitored but unconstrained

◦ Shift the paradigm when you have breakthrough,


Enterprise

Boundary

Converting new knowledge into competitive advantageEnabling Evolutionary, Disruptive, Classified, and Adaptive Innovation

Peripheral

Vision

Client requirements, Market Needs,

Competition

Near term Market Value

Far term Strategic Value

InnovationBusiness Model,

and/or

Product/Service

White space

Vision

Knowledge Augmentation

Talent Leveraging

Offerings – Generic Innovation Value Chain

Collaborative Partnerships


Offerings – Innovation Robustness Model

Simple, Robust, and Comprehensive

Focus PotentialInnovation Value Chain

OfferingScope,

Spectrum, Client Financial

External Perception

Benchmark

Established

Mature

Emerging

Serendipity


Offerings – Impact of Robustness on Returns

Immediate Far Term Time to Market

Su

cce

ss L

ike

liho

od

Certain

Uncertain

Eco-Adaptive

Evolutionary

Disruptive

Crisis

Evolutionary

Disruptive

Crisis

Eco-Adaptive


Offerings – The Ideation Kitchen


Unconventional Ambience

◦ Space, Unconventional artifacts, artistic, multi-function, Nature blended

Catalysts

◦ Facilitator, SME, Stimulators, Stirrers

Some method to madness (Process)

◦ Ideation, filtration, validation, IP,

Toys and tools

◦ Games, Audio-visual, 3D Printer, Analysis, Prototyping, Test beds, ..

Clear discomfort with current state

Offerings – Traps and Pitfalls


Yesterday’s offering is good today

Not tracking new Patents

Unaware of peripheral threats

Can’t disrupt your own Offering

Instant ROI trumps Long term ROI



Level 5

Level 4

Level 3

Level 2

Level 1

Clients – Engagement Levels


ClientKnows ProblemKnows Solution

VendorShips Packaged Solution(Compete on Price)

ClientKnows the ProblemKnows the Solution path

ContractorExecutes Solution path & delivers to requirements

ClientKnows the ProblemUnsure of the Solution

PartnerShares his know-how & Helps develop a solution

ClientKnows the ProblemUnaware of the Solution

ConsultantProvides Solution Path(Compete on Excellence)

ClientCannot define Problem

AdvisorHelps define the problemThen guides to solution Level 5

Level 4

Level 3

Level 2

Level 1

Guiding Client(s) Focus

Periodically revise shared vision

General understanding of clients

Remotely studying clients

Unaware of Client(s) Focus

Clients – Shared Vision

Clients Share their Success Stories and their requirements

You Share Possible Offerings and discuss shared vision

Create a Commercial Arrangement


Clients – Feedback and Closure

Secure feedback from functional to executive levels

Provide closure on comments.


Focus: Enabling Success

Potential: Working Relationship

Offerings: Innovation piece

Client: Delivery vs. Expectation

Financial: Affordability

Clients – Traps and Pitfalls


Different perception of engagement

Client Satisfaction is good enough

Self centered questionnaire

Lack of feedback follow through

Unable to adapt to changing needs

Financial – Balanced Portfolio Investment

Continuous Improvement• Constraints slowly addressed• Empowered workforce• Technology Advancement• Talent/Capability Model

Innovation Focus• Dramatic Improvements are feasible• Broad empowerment• Serious Technology Upgrades• Management reorientation

Sustenance• Constrained viewed as real• Limited discretions• Narrow view of responsibility

Crisis Recovery• Dramatic change is a must to survive• Increasing lag within industry• Disruptive change in market condition• Setback recoveries recognized

Typically

Leads to

Incremental Step

Rea

ctiv

eP

ro-A

ctiv

e

Up Until NowGoing Forward


Financial – Balanced Investment in Innovation


Portfolio

0%

100%100%

Increased Revenue(Innovative Offering)

Increased Gross Margin(Competitive Pricing)

Bias

Ideal spot

Va

lue



Financial – R&D Investment Prioritization

Business Dashboard Items Weightage...Options…

Total Score of items that qualify 100%

Focus Is it a strategic fit Qualify (y/n)

FinanceIncreases Revenue 30%

Increases Gross Margin 20%

ClientImproves OT/OB Delivery 20%

Improves client Feedback 10%

OfferingsImproves offering Should show up in revenue

Helps competitive Pricing Should show up in gross margin

PotentialFill talent/knowledge Gaps 20%

EHS Qualify(y/n)


Use Judgment Impact scale of

-9, -3, -1, 0, 1, 3, 9

This matrix should align with Business Dashboard

Financial – Cost Neutral Innovation

Philosophy◦ Investment in Portfolio pays before Project or financial year is

over

◦ Good for evolutionary innovation

◦ Two ways to go about

Phased Investment (Split in time line)◦ Low hanging fruit first

◦ Rapid ROI items next

◦ Then Cost avoidance items

◦ Reinvest returns/savings using balanced investment

Balanced Investment (Split in portfolio)◦ Waste elimination

◦ Process speed up

◦ CI with near term ROI


Financial – Strawman Business Case


Business Canvas

3. Existing Alternative

5. Primary Activities

1. Value Proposition 4. Competitive Differentiator

2. Market Segments

6. Resources 7. Channels

11. Fixed Costs

12. Unit Cost 13. Break even point

10. Revenue 9. Pricing 8. Sales Volume

Financial – Traps and Pitfalls


Spending vs. Investment

Profits vs. Benefits

Cost savings, vs cost avoidance

Labor rate vs labor cost

Too much or too little compliance

Wrap up – Potential-Offerings-Client Value Stream


Talent Development

Knowledge Development

Offering Development(Innovation)

Client Experience(Aftermarket)

Potential

Wrap up – Do not forget basic Physics


Momentum – Tend to keep rolling

Energy – Driving parameter

Gravity – Downward pull

Inertia – Large mass, hard to move

Friction – Resist change to a point

NASSCOM Engineering Summit 2014: Master class LEADING INNOVATION: Strategy to sustain beyond 2020: Ripi Singh

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