Boeing rocketdyne Presentation

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  • 1. RADICAL INNOVATION WITHOUT COLLOCATION: A CASE STUDY AT BOEING-ROCKETDYNEMalhotra,Majchrzak,Carman and Lott MIS Quarterly 2001 Aravind Sesagiri Raamkumar Kannan Venkataramanujam Muthu Kumaar Thangavelu
  • 2. AGENDA• Radical Innovation• Cross Fertilization of Ideas• VC3 team for Rocketdyne’s mission• SLICE TEAM Success Story• Management Practices• Restructuring work with VC3• Implications for practice and research• Key Takeaways
  • 3. Radical InnovationIn an increasingly complex world, sometimes old questions require new answers !!
  • 4. Cross Fertilization of Ideas Reactivity Collaborative AxB success rate >=AxB Knowledge base AxB + Composition AxB Interaction value add Environment A or B Hybrid Product Reactivity B Stand alone Reactivity A Stand alone success rate B success rate A Breed 1 Breed 2Knowledge Knowledge base B Composition B Composition A base A Environment B Environment A
  • 5. How about a warm Ice Cream?• Mapping Market Expectations to Hybrid Element’s attributes• Choosing the best elements for interaction• Forecasting the collaborative value• Choosing the best possible ba• Implementing Process concurrency• Restructuring for a best combination by trial & error method with prior knowledge on the subject
  • 6. VC3- Virtual Cross Value Chain, Creative, Collaborative Teamfor BOEING – ROCKETDYNE’s mission Project Team Leader Stress Concept Analyst Designer Rocket Engine Design Lead cost by 100 times CAD Engineer Commercialize 10 times Specialist Combustion Analyst Thermal Manufacturability Analyst Engineer Rocketdyne Raytheon MacNeal-Schwendler
  • 7. In terms of complexityVC3 Teams >> Virtual Teams• Emerging Design & Ever Changing tasks• Consistent need for Shared Understanding• Efficient use of Virtual Interaction Space• Non-rigidity in Role Definitions• Unconventional Communication Protocol
  • 8. Collaborative platform – A snapshot
  • 9. SLICE TEAM – SUCCESS STORY “Designed thrust chamber of rocket engine” in 10 months Feature Traditional stats SLICE engineered stats Parts 1200 6 (200 fold decrease) Manufacturing Cost 7 mil USD 0.5 mil USD(14 fold decrease) Predicted Quality Level 6 sigma or 2-4 sigma 9 sigma First Unit Production Cost 4.5 mil USD 47000 USD Development Time 6 years 10 monthsData Gathering Tools – Ethnographic Observations, Panel Questionnaire Surveys, InterviewsGroup Meetings, Weekly Logs etc89 virtual meetings and 651 entries in internet notebook and Project Vault
  • 10. Mgmt Practice 1 – Strategy Setting – Virtual Teaming Umbrella AgreementInitiated by Senior Managers, Contract Managers and ProgramManagers of 3 companies well before the SLICE project Continuous Ordering Agreement Protection of intellectual Property and Company’s Confidential Information Best practices sharing Allocation of Liability Required Complimentary skills Specification of level of participation Mgmt practice 1 Trust and consensus No subdivisions created SLICE project kickoff in days instead of months Common budget due to this agreement Open sharing of ideas
  • 11. Mgmt Practice 2 - Collaborativetechnologies are KM technologiesInternet Notebook and Project Vault developed by third partycompany based on the project requirements •Secure access from any location •Create, Comment, Reference-link, Sort and Internet Notebook hot-linking features •Electronic whiteboard •Used for all communication and knowledge- sharing needs •Secure common file storage Project Vault •Transfer of large and small files •Single version of truth •Document Vault •Adherence to Coordination Protocol •Face 2 face discussion -> Tech collaborations Other •Couple written documentation with oral communication improvisations •Incomplete entries for in-depth discussion •Parallel work to complement contribution •Exclusive attention to meetings
  • 12. Mgmt Practice 3 - Restructure Work without Changing Core Creative Needs “Adopting to Virtual Collaboration” Creative Need 1: Create a Creative Need 2: Engage in Shared Understanding Frequent interaction Creative Need3: Rapidly create context-specific knowledge• Enhanced participation meant • Guarding against alienation • 20 designs over 40 weeks - 1 more productiveness • Virtual interaction with week shelf life• Partial decentralization of lead notebook • Synergy by rapid contribution engineer role • Internet notebook became one • Sharing of only high context• Common language metaphor stop shop for file sharing, specific knowledge• Shared artifact- Matrix style information sharing, proj mgmt decision enabler template plan, status reports, budgets, meeting agendas etc • Focus on sharing key points instead of full text
  • 13. Summary of How to Restructure Workwith VC3 teams  Successful because work processes were changed to meet its core needs  Clear strategy was needed  Lifespan of Strategy, Technology and Work were different at different times
  • 14. Implications for Practice• Shared destiny with other organizations• Importance of global and knowledge intensive competition• Transitioning from traditional mode of collocated teams to VC3 teams• Formulation and structuring of inter- organizational strategy and work process
  • 15. Early Warning Signs“Effective Handling of Warning Signals ensure the success of VC3 teams”
  • 16. Implications for Research• Conduct research on virtual teams in terms of innovativeness• Scope for research in building KM systems as a collaborative platform facilitating – Distributed Cognition – Knowledge Capture – Knowledge Fusion – Knowledge Transfer
  • 17. Effective Virtual Team Working
  • 18. Takeaways from the Article• VC3 teams are new, exciting and cost-effective work form• Virtual team working is reliant on collaboration between people• Focus on the need for future research on this type of virtual teams• Critical Role of Knowledge Management in processes related to innovation• Importance of careful planning before the start of any project• The capacity to innovate and make life better is present in each individual
  • 19. QUESTIONS?
  • 20. THANK YOU