Design for Innovation Ltd, 2009  1 Design for Innovation Design for Innovation Embedding best practice discipline in busin...
Success story Design for Innovation Ltd, 2009   2 US$500 billion GE Market Capitalization US$13 billion 2000 Jack Welch st...
Jack Welch said: <ul><li>The ability to learn more about our customers faster than the competition. </li></ul><ul><li>The ...
What you don’t know about your customers and your business may be costing you millions!  Design for Innovation Ltd, 2009  ...
Design for Innovation Ltd, 2009   5 Design for Innovation Design for Innovation Embedding best practice discipline in busi...
D4I Framework Summary <ul><li>Where  [are our stakeholders going]? </li></ul><ul><ul><li>Target key stakeholders’ unmet wa...
Design for Innovation Ltd, 2009  7 <ul><li>Where  [are our stakeholders going]? </li></ul>[1] STAKEHOLDER WANTS & NEEDS FO...
<ul><li>2. What  [do they need to get there]? </li></ul><ul><ul><li>Identify problems to solve and opportunities to realiz...
Design for Innovation Ltd, 2009  9 Stakeholder Partnerships for Stakeholder-driven Innovation: Involve Your Stakeholders a...
<ul><li>3. How  [will they get there]? </li></ul><ul><ul><li>Generate solutions with inventive problem-solving, product id...
<ul><li>4. How Well  [can they get there]? </li></ul><ul><ul><li>Evaluate feasibility and value of alternative solutions f...
Design for Innovation Ltd, 2009  12 Design for Innovation provides a simple yet deeply insightful frame of reference for m...
<ul><li>5. When  [will they get there]? </li></ul><ul><ul><li>Develop and execute an effective action plan for implementin...
The D4I Framework Facilitates Value Creation, Management and Innovation  Design for Innovation Ltd, 2009  14 Where are we ...
Primary Focus: Performance Improvement Primary Focus: Customer Solutions Primary Focus: Ideation & Innovation Primary Focu...
D4I Framework Tools & Resources <ul><li>Where  [are our stakeholders going]? </li></ul><ul><ul><li>Performance improvement...
17
D4I Framework for  Technology Innovation Management <ul><li>Where  [is the need]? </li></ul><ul><ul><li>What is the next w...
D4I Tools for Technology Innovation Management <ul><li>Problem analysis, definition & development audit : </li></ul><ul><u...
Companies we have worked with <ul><li>* Industrial Research Limited </li></ul><ul><li>* National Institute of Water & Atmo...
For further information contact: Dr. Iain Sanders Mobile: +64 (027) 356-6401 Skype: iain.designforinnovation.com Email:  [...
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Design for Innovation (D4I) Framework for Strategic Business Development

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An introduction to the Design for Innovation (D4I) Strategic Business Development Framework by Iain Sanders at www.designforinnovation.com

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  • Corporate Leadership: the Jack Welch Way Jack Welch has been with the General Electric Company (GE) since 1960. Having taken GE with a market capitalization of about $13 billion, Jack Welch turned it into one of the largest and most admired companies in the world, with a market value of about $500 billion, when he stepped down as its CEO 20 years later, in 2000. Although Jack Welch is &amp;quot;the celebrated leader of a global manufacturer often noted for its technological prowess, he has utilized a very human process to drive change through GE&apos;s vast organization. Having respect for the individual as a pivotal force in organizational change, Welch created a model of exceptional performance every corporate leader can learn from. The Role of the Leader in the New Economy As Jack Welch wrote in a letter to shareholders: &amp;quot;In the old culture, managers got their power from secret knowledge: profit margins, market share, and all that... In the new culture, the role of the leader is to express a vision, get buy-in, and implement it. That calls for open, caring relations with every employee, and face-to-face communication. People who can&apos;t convincingly articulate a vision won&apos;t be successful. But those who can will become even more open – because success breeds self-confidence.&amp;quot; Welch urged all GE leaders to stretch their business strategy, &amp;quot;Don&apos;t ever settle for mediocrity. They key to stretch is to reach for more than you think is possible. Don&apos;t sell yourself short by thinking that you&apos;ll fail.&amp;quot; Do the best possible - and then reach beyond. Stretch &amp;quot;essentially means using dreams to set business targets - with no real idea of how to get there. If you do know how to get there - it&apos;s not a stretch target.“ Employee Empowerment Under Welch&apos;s leadership, managers had wide latitude in building their GE units in entrepreneurial fashion. Determined to harness the collective power of GE employees, Jack Welch redefined also relationships between boss and subordinates. He wrote: &amp;quot;The individual is the fountainhead of creativity and innovation, and we are struggling to get all of our people to accept the countercultural truth that often the best way to manage people is just to get out of their way. Only by releasing the energy and fire of our employees can we achieve the decisive, continuous productivity advantages that will give us the freedom to compete and win in any business anywhere on the globe.&amp;quot;
  • Corporate Leadership: the Jack Welch Way Jack Welch has been with the General Electric Company (GE) since 1960. Having taken GE with a market capitalization of about $13 billion, Jack Welch turned it into one of the largest and most admired companies in the world, with a market value of about $500 billion, when he stepped down as its CEO 20 years later, in 2000. Although Jack Welch is &amp;quot;the celebrated leader of a global manufacturer often noted for its technological prowess, he has utilized a very human process to drive change through GE&apos;s vast organization. Having respect for the individual as a pivotal force in organizational change, Welch created a model of exceptional performance every corporate leader can learn from. The Role of the Leader in the New Economy As Jack Welch wrote in a letter to shareholders: &amp;quot;In the old culture, managers got their power from secret knowledge: profit margins, market share, and all that... In the new culture, the role of the leader is to express a vision, get buy-in, and implement it. That calls for open, caring relations with every employee, and face-to-face communication. People who can&apos;t convincingly articulate a vision won&apos;t be successful. But those who can will become even more open – because success breeds self-confidence.&amp;quot; Welch urged all GE leaders to stretch their business strategy, &amp;quot;Don&apos;t ever settle for mediocrity. They key to stretch is to reach for more than you think is possible. Don&apos;t sell yourself short by thinking that you&apos;ll fail.&amp;quot; Do the best possible - and then reach beyond. Stretch &amp;quot;essentially means using dreams to set business targets - with no real idea of how to get there. If you do know how to get there - it&apos;s not a stretch target.“ Employee Empowerment Under Welch&apos;s leadership, managers had wide latitude in building their GE units in entrepreneurial fashion. Determined to harness the collective power of GE employees, Jack Welch redefined also relationships between boss and subordinates. He wrote: &amp;quot;The individual is the fountainhead of creativity and innovation, and we are struggling to get all of our people to accept the countercultural truth that often the best way to manage people is just to get out of their way. Only by releasing the energy and fire of our employees can we achieve the decisive, continuous productivity advantages that will give us the freedom to compete and win in any business anywhere on the globe.&amp;quot;
  • This presentation provides EGNRET members with an update on APEC-CPI project development. Iain Sanders would like to express his apologies for not being able to attend this meeting due to other commitments. He extends his best wishes and sincerest thanks to all EGNRET members for their support in helping to get this project endorsed and funded by APEC.
  • Customer Partnership Defined Customer partnership is a shared journey to create a future for both parties that is better than either could have developed alone. Customer partnership is more than &amp;quot;putting customers first&amp;quot;, or  finding mutually satisfactory solutions to shared problems, or  a dedication to excellence in every sale or service encounter. It also requires commitment to forging long-term relationships that create synergies of knowledge, security, and adaptability for both parties. Why Customer Partnership? The customer influences every aspect of your business and is the foundation of your organization&apos;s success. In today&apos;s turbulent times of rapid and chaotic change, no force is more grounding and stabilizing than a partnership with customers. 1 Fierce competition today forces companies to become much more creative and flexible in their dealings with customers to give them exactly what they want – faster. Partnering with customers represents your firm&apos;s capacity to anticipate what customers need even before they know they need it. 2 Case in Point: Nike When Nike partnered with their running customers, they discovered that, apart from running shoes and apparel, they also needed sport watches, MP3 players, and heart monitors. Nike developed these offerings and their equipment business boasted sales in excess of US$400 million within few years. Case in Point: BMW In partnership with its customers and external innovators, BMW is constantly seeking to discover new technologies and design features to put into future cars. To harvest the insights of creative minds outside the BMW Group, the firm&apos;s Virtual Innovation Agency (VIA) is the point of contact for all external innovators who do not as yet have contacts within the firm. VIA makes it easy for car fans to communicate their ideas through its web-site, with additional online discussions that solicit ideas from enthusiasts around the world. References: 1. &amp;quot;Leading on the Edge of Chaos&amp;quot;, Emmett C. Murphy and Mark A. Murphy, 2003 2. &amp;quot;Results-Based Leadership&amp;quot;, Dave Ulrich, Jack Zenger, and Norm Smallwood, 1999
  • Design for Innovation (D4I) Framework for Strategic Business Development

    1. 1. Design for Innovation Ltd, 2009 1 Design for Innovation Design for Innovation Embedding best practice discipline in business
    2. 2. Success story Design for Innovation Ltd, 2009 2 US$500 billion GE Market Capitalization US$13 billion 2000 Jack Welch steps down as CEO of GE 198 1 Jack Welch appointed as CEO of GE
    3. 3. Jack Welch said: <ul><li>The ability to learn more about our customers faster than the competition. </li></ul><ul><li>The ability to turn that learning into action faster than the competition.” </li></ul>“ We have only two sources of competitive advantage: Success Story Design for Innovation Ltd, 2009 3 Design for Innovation Design for Innovation Embedding best practice discipline in business
    4. 4. What you don’t know about your customers and your business may be costing you millions! Design for Innovation Ltd, 2009 4 For example : technology, product & service value-creation urgent needs For example : The best customer solutions to maximize your customers’ profitability For example : Your business model is now obsolete, limiting your effectiveness and ability to achieve a sustainable competitive advantage
    5. 5. Design for Innovation Ltd, 2009 5 Design for Innovation Design for Innovation Embedding best practice discipline in business We see Innovation as THE Driver of Competitive Advantage Systemic Approach to Innovation BUSINESS innovation ORGANIZATIONAL innovation PRODUCT innovation PROCESS innovation MARKETING innovation TECHNOLOGY innovation STRATEGY innovation
    6. 6. D4I Framework Summary <ul><li>Where [are our stakeholders going]? </li></ul><ul><ul><li>Target key stakeholders’ unmet wants and needs. </li></ul></ul><ul><li>What [do they need to get there]? </li></ul><ul><ul><li>Identify problems to solve and opportunities to realize, that leverage existing resources and capabilities. </li></ul></ul><ul><li>How [will they get there]? </li></ul><ul><ul><li>Generate solutions with inventive problem-solving, product ideation and innovation tools. </li></ul></ul><ul><li>How Well [can they get there]? </li></ul><ul><ul><li>Evaluate feasibility and value of alternative solutions from multiple perspectives. </li></ul></ul><ul><li>When [will they get there]? </li></ul><ul><ul><li>Develop and execute an effective action plan for implementing solutions and monitoring progress. </li></ul></ul>Design for Innovation Ltd, 2009 6
    7. 7. Design for Innovation Ltd, 2009 7 <ul><li>Where [are our stakeholders going]? </li></ul>[1] STAKEHOLDER WANTS & NEEDS FOR PROVIDING CONTRIBUTIONS [2] STRATEGIES TO SATISFY KEY STAKEHOLDER WANTS & NEEDS [3] CRITICAL PROCESSES TO EXECUTE STRATEGIES [4] CAPABILITES TO OPERATE & ENHANCE PROCESSES [5] STAKEHOLDER CONTRIBUTIONS TO SUSTAIN CAPABILITIES Target key stakeholders’ unmet wants and needs
    8. 8. <ul><li>2. What [do they need to get there]? </li></ul><ul><ul><li>Identify problems to solve and opportunities to realize, that leverage existing resources and capabilities. </li></ul></ul>Identifying Problems and Opportunities with your Stakeholders… including Business Patterns Design for Innovation Ltd, 2009 8 <ul><li>Unexpected Successes </li></ul><ul><li>Unexpected Failures </li></ul><ul><li>Unexpected External Events </li></ul><ul><li>Process Weaknesses </li></ul><ul><li>Industry / Market Structure Changes </li></ul><ul><li>High-Growth Areas </li></ul><ul><li>Converging Technologies </li></ul><ul><li>Demographic Changes </li></ul><ul><li>Perception Changes </li></ul><ul><li>New Knowledge </li></ul>
    9. 9. Design for Innovation Ltd, 2009 9 Stakeholder Partnerships for Stakeholder-driven Innovation: Involve Your Stakeholders as Co-innovators Board Marketing Leadership R&D Finance Operations Stakeholders Sales Purchasing
    10. 10. <ul><li>3. How [will they get there]? </li></ul><ul><ul><li>Generate solutions with inventive problem-solving, product ideation and innovation tools. </li></ul></ul>10 Business Focus : Effectiveness – Business Proactivity Business Focus : Efficiency – Business Responsiveness
    11. 11. <ul><li>4. How Well [can they get there]? </li></ul><ul><ul><li>Evaluate feasibility and value of alternative solutions from multiple perspectives. </li></ul></ul>Examine the Critical Factors: Design for Innovation Ltd, 2009 11 <ul><li>Technical Factors </li></ul><ul><li>Timing Factors </li></ul><ul><li>Stability Factors </li></ul><ul><li>Position Factors </li></ul><ul><li>Growth Factors </li></ul><ul><li>Marketability Factors </li></ul><ul><li>Production Factors </li></ul><ul><li>Financial Factors </li></ul><ul><li>Protection Factors </li></ul><ul><li>Stakeholder Factors </li></ul>
    12. 12. Design for Innovation Ltd, 2009 12 Design for Innovation provides a simple yet deeply insightful frame of reference for making better decisions and achieving better results by design, on a continuous basis <ul><li>Stakeholder Perspectives Examined: </li></ul><ul><li>Investors </li></ul><ul><li>Customers </li></ul><ul><li>Intermediaries </li></ul><ul><li>Employees </li></ul><ul><li>Suppliers </li></ul><ul><li>Regulators </li></ul><ul><li>Communities </li></ul><ul><li>Pressure Groups </li></ul><ul><li>Alliance Partners </li></ul><ul><li>Other Stakeholders </li></ul>Design for Innovation Design for Innovation Embedding best practice discipline in business
    13. 13. <ul><li>5. When [will they get there]? </li></ul><ul><ul><li>Develop and execute an effective action plan for implementing solutions and monitoring progress. </li></ul></ul>Stage- / Phase-Gate Project Management for Any Process (e.g.) Design for Innovation Ltd, 2009 13 <ul><li>Operating Processes: </li></ul><ul><ul><li>Develop Vision & Strategy </li></ul></ul><ul><ul><li>Design & Develop Products & Services </li></ul></ul><ul><ul><li>Market & Sell Products & Services </li></ul></ul><ul><ul><li>Deliver Products & Services </li></ul></ul><ul><ul><li>Manage Customer Service </li></ul></ul><ul><li>Management & Support Processes: </li></ul><ul><ul><li>Develop & Manage Human Capital </li></ul></ul><ul><ul><li>Manage IT & Knowledge </li></ul></ul><ul><ul><li>Manage Financial Resources </li></ul></ul><ul><ul><li>Manage Environmental Health & Safety </li></ul></ul><ul><ul><li>Manage External Relationships </li></ul></ul><ul><ul><li>Change Management </li></ul></ul>
    14. 14. The D4I Framework Facilitates Value Creation, Management and Innovation Design for Innovation Ltd, 2009 14 Where are we going? What can we use now? Create new possibilities Evaluate and select Action and monitor Design for Innovation Design for Innovation Embedding best practice discipline in business Value Impacts Value Outcomes Value Outputs Value Drivers Value Builders Planning Value Creation
    15. 15. Primary Focus: Performance Improvement Primary Focus: Customer Solutions Primary Focus: Ideation & Innovation Primary Focus: Project Management Design for Innovation Ltd, 2009 15 D4I Framework Core Competencies Design for Innovation Design for Innovation Embedding best practice discipline in business
    16. 16. D4I Framework Tools & Resources <ul><li>Where [are our stakeholders going]? </li></ul><ul><ul><li>Performance improvement audits & roadmaps </li></ul></ul><ul><ul><li>Strategic planning workshops & seminars </li></ul></ul><ul><li>What [do they need to get there]? </li></ul><ul><ul><li>Tools for maximizing existing & potential lifetime value of customers & prospects </li></ul></ul><ul><ul><li>Customer-product interaction discovery workshops </li></ul></ul><ul><ul><li>Business-Market-Customer opportunity discovery workshops </li></ul></ul><ul><ul><li>Business-Market-Customer problem solving workshops </li></ul></ul><ul><li>How [will they get there]? </li></ul><ul><ul><li>Inventive problem solving workshops & seminars </li></ul></ul><ul><ul><li>Product ideation & innovation workshops </li></ul></ul><ul><ul><li>Product-process-service innovation audits </li></ul></ul><ul><li>How Well [can they get there]? </li></ul><ul><ul><li>Better decision making guides and tools </li></ul></ul><ul><ul><li>Collaborative innovation capture, assessment & optimization </li></ul></ul><ul><li>When [will they get there]? </li></ul><ul><ul><li>Process mapping and workflow optimization </li></ul></ul><ul><ul><li>Stage-gate project management; and stage-gate product ideation & development </li></ul></ul><ul><ul><li>Lean six sigma & design for six sigma tools & resources </li></ul></ul><ul><ul><li>Tools & resources for facilitating collaboration & change management </li></ul></ul><ul><ul><li>Market research and technology R&D </li></ul></ul><ul><ul><li>Techno-economic analysis & modelling for business investments </li></ul></ul>Design for Innovation Ltd, 2009 16
    17. 17. 17
    18. 18. D4I Framework for Technology Innovation Management <ul><li>Where [is the need]? </li></ul><ul><ul><li>What is the next winning technology to satisfy the potential or perceived market need? </li></ul></ul><ul><li>What [is the problem definition]? </li></ul><ul><ul><li>Transform the need into a clearly defined problem, or a set of problems accompanied by a list of various constraints. </li></ul></ul><ul><li>How [will the problem be addressed]? </li></ul><ul><ul><li>Generate conceptual solutions to the problem(s) with TRIZ. </li></ul></ul><ul><li>How Well [do the alternative solutions work]? </li></ul><ul><ul><li>Evaluate the concepts generated against various criteria, & select the most promising ones for designing a prototype. </li></ul></ul><ul><li>When [will the best solution be ready]? </li></ul><ul><ul><li>Develop the detailed design, determine the dimensions of all the components, specify material requirements etc. </li></ul></ul>Design for Innovation Ltd, 2009 18
    19. 19. D4I Tools for Technology Innovation Management <ul><li>Problem analysis, definition & development audit : </li></ul><ul><ul><li>Level 1 : Routine design problems </li></ul></ul><ul><ul><li>Level 2 : Minor improvements </li></ul></ul><ul><ul><li>Level 3 : Fundamental improvements </li></ul></ul><ul><ul><li>Level 4 : Next generation technologies </li></ul></ul><ul><ul><li>Level 5 : Pioneering discovery / invention </li></ul></ul><ul><li>Algorithm for Inventive Problem Solving (ARIZ) </li></ul><ul><li>Laws of technological system evolution : </li></ul><ul><ul><li>Tools for development of conceptual designs </li></ul></ul><ul><ul><li>Tools for identification & development of next-generation technologies </li></ul></ul><ul><li>76 Standard Solutions for fundamental improvements to existing systems with Substance-Field Analysis : </li></ul><ul><ul><li>Improving the system with no or little change </li></ul></ul><ul><ul><li>Improving the system by changing the system </li></ul></ul><ul><ul><li>System transitions </li></ul></ul><ul><ul><li>Detection and measurement </li></ul></ul><ul><ul><li>Strategies for simplification & improvement </li></ul></ul><ul><li>100s of Patterns of Invention (Operators) to : </li></ul><ul><ul><li>Eliminate, reduce or prevent harmful effects </li></ul></ul><ul><ul><li>Provide alternative ways to obtain useful effects </li></ul></ul><ul><ul><li>Resolve physical & other technical and non-technical contradictions </li></ul></ul><ul><li>1,000s of scientific effects for supporting Substance-Field Analysis, and discovering / enhancing ready-to-use, derived & insufficient resources : </li></ul><ul><ul><li>Fields : absorbing, accumulating, detecting, preventing, producing other fields & resources </li></ul></ul><ul><ul><li>Substances : accumulating, combining, detect-ing, eliminating, forming, moving, changing phase, preserving, producing & separating other substances & resources </li></ul></ul><ul><ul><li>Parameters : changing, decreasing, increasing, measuring, stabilizing other parameters & resources </li></ul></ul><ul><li>Access to and searching of US patents & patent applications, EP documents, Japan-ese abstracts, and WIPO (PCT) documents </li></ul><ul><li>Access to and searching of 7,000+ detailed scientific & engineering encyclopedia topics </li></ul><ul><li>100s of searchable technical guidebooks </li></ul>Design for Innovation Ltd, 2009 19
    20. 20. Companies we have worked with <ul><li>* Industrial Research Limited </li></ul><ul><li>* National Institute of Water & Atmospheric Research </li></ul><ul><li>* Meridian Energy </li></ul><ul><li>* Orion Networks </li></ul><ul><li>* IAG Insurance </li></ul><ul><li>* MainPower </li></ul><ul><li>* Coca Cola Amatil </li></ul><ul><li>* Eastland Networks </li></ul><ul><li>* General Cable New Zealand </li></ul><ul><li>* Asia Pacific Economic Cooperation (APEC) </li></ul><ul><li>* Canterbury Development Corporation </li></ul><ul><li>* Ravensdown Fertiliser Cooperative </li></ul><ul><li>* Canterprise, University of Canterbury </li></ul><ul><li>* New Zealand Trade and Enterprise </li></ul><ul><li>* Business Mentors New Zealand </li></ul><ul><li>* Rocky Mountain Institute, USA </li></ul><ul><li>* Ideation International, USA </li></ul><ul><li>* PD-Trak Solutions, USA </li></ul><ul><li>* Broken Hill Proprietary, Australia </li></ul><ul><li>* Centre for Exploitation of Science & Technology, UK </li></ul><ul><li>* Department of Trade & Industry (DTI), UK </li></ul><ul><li>* The Design Council, UK </li></ul><ul><li>* The European Commission (Belgium, Luxembourg) </li></ul><ul><li>* Mitsubishi Research Institute, Japan </li></ul><ul><li>* Tokyo Electric Power Company, Japan </li></ul><ul><li>* McMer Corporation, Philippines </li></ul>Design for Innovation Ltd, 2009 20 Design for Innovation Design for Innovation Embedding best practice discipline in business
    21. 21. For further information contact: Dr. Iain Sanders Mobile: +64 (027) 356-6401 Skype: iain.designforinnovation.com Email: [email_address] Web: http://www.designforinnovation.com Design for Innovation Ltd, 2009 21 Design for Innovation Design for Innovation Embedding best practice discipline in business
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