Tech innovation s2_invention to innovation

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


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


Inspiration from Nature

4

• Nature perfected the art of innovation.


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


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.

6


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


Innovation process

8

• Idea Generation

• Idea Evaluation

• Idea implementation

• Commercialization

Idea Generation Idea Evaluation Idea

implementation Commercialization


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


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


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

11


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.


How for Manager

13

• Mindset / Opportunity

• Physical Environment

• Freedom

• Project Boundaries

• Uncertainty

• Feedback

– Like

– Concerns

– Suggestion


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.”



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.

15


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

16


Barrier and Bridge

Hierarchy Bureaucracy Anonymous Clean Experts

Merit Autonomy Familiar Messy Players

17


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


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


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


Breakthrough product examples

• Digital Camera

• Apollo Digital X-ray panel

• email


+ Innovation

e-mail

21


Breakthrough Service examples

• Dell : Distribution model

• Low cost airlines

• Itunes

• Online sales

• Apps

• ….

22


Growth opportunity

23

• New Markets

• New technology

• New Policy

• Sector

• Size

• Life cycle

• Degree of Novelty

Passive

Reactive

Creative

Ability to change

Need


Creating a Innovative culture

• Diversity

• Learn from mistakes

• Listen

• Encourage multiple point of views.

• Interdisciplinary

• Encourage risk

• Just Play

24


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


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.

26


Play innovation ( Innovator)

Three ways to Innovate

Solve your current problems creatively.

Infuse new ideas, Breakthroughs.

Access and absorb external research discoveries

27


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


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


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


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


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

Tech innovation s2_invention to innovation

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