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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 2
Focus
Potential
Offerings
Clients
Financial
Market
CI
Focus – Alignment Model
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 3
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 5
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 $
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 6
Ripi Singh, +1 (860) 816-4420, [email protected] 10/3/2014
Copyright 2014 – Plus4Pi LLC Page 2 of 6 .
Focus – Robust Roadmap Development
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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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 9
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 10
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 11
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 12
Ripi Singh, +1 (860) 816-4420, [email protected] 10/3/2014
Copyright 2014 – Plus4Pi LLC Page 3 of 6 .
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 13
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 14
Potential – Traps and Pitfalls
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 15
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 16
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 17
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 18
Ripi Singh, +1 (860) 816-4420, [email protected] 10/3/2014
Copyright 2014 – Plus4Pi LLC Page 4 of 6 .
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,
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 19
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 20
Offerings – Innovation Robustness Model
Simple, Robust, and Comprehensive
Focus PotentialInnovation Value Chain
OfferingScope,
Spectrum, Client Financial
External Perception
Benchmark
Established
Mature
Emerging
Serendipity
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 21
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 22
Offerings – The Ideation Kitchen
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 23
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 24
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
Ripi Singh, +1 (860) 816-4420, [email protected] 10/3/2014
Copyright 2014 – Plus4Pi LLC Page 5 of 6 .
Level 5
Level 4
Level 3
Level 2
Level 1
Clients – Engagement Levels
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 25
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 26
Clients – Feedback and Closure
Secure feedback from functional to executive levels
Provide closure on comments.
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 27
Focus: Enabling Success
Potential: Working Relationship
Offerings: Innovation piece
Client: Delivery vs. Expectation
Financial: Affordability
Clients – Traps and Pitfalls
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 28
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 29
Financial – Balanced Investment in Innovation
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 30
Portfolio
0%
100%100%
Increased Revenue(Innovative Offering)
Increased Gross Margin(Competitive Pricing)
Bias
Ideal spot
Va
lue
Ripi Singh, +1 (860) 816-4420, [email protected] 10/3/2014
Copyright 2014 – Plus4Pi LLC Page 6 of 6 .
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)
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 31
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 32
Financial – Strawman Business Case
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 33
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 34
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
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 35
Talent Development
Knowledge Development
Offering Development(Innovation)
Client Experience(Aftermarket)
Potential
Wrap up – Do not forget basic Physics
10/3/2014 (c) 2014 Plus4Pi LLC, USA. This copy created for Attendees of Engineering Summit 2014, NASSCOM, India. 36
Momentum – Tend to keep rolling
Energy – Driving parameter
Gravity – Downward pull
Inertia – Large mass, hard to move
Friction – Resist change to a point