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NASSCOM Engineering Summit 2013: Going Beyond Jugaad: Building a Systematic Innovation Capability -  Prof. Rishikesha T. Krishnan
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NASSCOM Engineering Summit 2013: Going Beyond Jugaad: Building a Systematic Innovation Capability - Prof. Rishikesha T. Krishnan

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Going Beyond Jugaad: Building a Systematic Innovation Capability …

Going Beyond Jugaad: Building a Systematic Innovation Capability

Speaker: Prof. Rishikesha T. Krishnan, Corporate Strategy & Policy, IIM Bangalore

Published in: Technology, Business

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  • 1. 1
  • 2. Going beyond Jugaad: Building a Systematic Innovation Capability 3 Improve Batting Avg 1 Build a pipeline 2 Improve idea velocity
  • 3. Theme 1: Build a Pipeline 3 1. Lay the Foundation 2. Create a Challenge Book 3. Build Participation
  • 4. 8 Steps to Innovation Excellen 4 STEP 1 LAY THE FOUNDATION
  • 5. Build a Pipeline 5 1. Lay the Foundation  Create Innovation Programme Jeff Immelt “Imagination Breakthroughs” - $1B potential  E.g. Cognizant “Managed Innovation Programme”  E.g. 3 Key Processes  Idea Management  Buzz Creation  Training & Development
  • 6. Idea Management 6 source scope technology selection Idea Box stages funding
  • 7. 40 years, 20 million ideas Year Suggestions Participation Adoption suggestions per person Rate(%) Rate(%) 789 0.1 8 23 1971 88,607 2.2 67 72 1986 2.6million 48 95 96 1951 7 No of
  • 8. The Power of Small Ideas 8 “There is no genius in our company. We just do whatever we believe is right, trying every day to improve every little bit and piece. But when 70 years of very small improvements accumulate, they become a revolution” From Interview with Katsuaki Watanabe in HBR, July-Aug 2007
  • 9. Small Ideas Matter: Cognizant’s Innovation Programme 9 Year FY08 FY09 FY10 FY11 FY12 Ideas 327 5,551 20,848 78,354 1,34,24 2 Ideas/ person/ye ar % participation 0.01 0.07 0.20 0.60 0.90 % implementation 2 3 9 21 37 Source: Kumar Sachidanandam et. al “Is managed innovation an oxymoron?”, Jan 7, 2013 http://www.mixprize.org/story/managed-innovation-oxymoron NA NA 14 13 14
  • 10. 10 Buzz Creation (creative campaigns)
  • 11. Titan: The 3M of India? 11
  • 12. 12 Some Titan Innovation Campaigns  2004: “What is new?”  Identification and implementation of 5 new ideas by every supervisor on the shopfloor  2006: HOD Fund  Every head of department authorised to spend upto Rs. 1 lakh on an idea without any approvals  2008: “Simplify & Automate”  Most  successful theme at Titan 2009: “Innovation School of Management”  Making every employee an innovator
  • 13. Training & Development 13
  • 14. Training & Development 14  Titan Innovation School of Management  “Everybody Focus area Design thinking Systems thinking Lateral thinking an innovator by 2015” Techniques Immersive research, rapid prototyping, brainstorming TRIZ Systems archetypes Theory of constraints (TOC) Edward de Bono’s six thinking hats
  • 15. 8 Steps to Innovation Excellen 15 STEP 2 CREATE A CHALLENGE BOOK
  • 16. Build a Pipeline 16 2. Create a Challenge Book  Feel the Pain  Sense  See the Wave the Waste
  • 17. 17 Why was the Bajaj Pulsar successful?
  • 18. 18 Why was the Bajaj Pulsar successful? Pain: New generation of bike riders wanted more than transportation: power & style at a reasonable cost Wave: Young, male employees with disposable income far away from home Waste: Powerful bikes consumed too much fuel (solved by DTSi
  • 19. Vigyanlabs Nasscom Innovation Award 2013 19
  • 20. 20 Vigyanlabs – inspired by pain, wave, waste Nasscom Innovation Award 2013 Pain Wave Waste
  • 21. 21 7 Themes  Digital consumers  Emerging economies  Sustainable tomorrow  Smarter organizations  New commerce  Pervasive computing  Healthcare economy http://jugaadtoinnovation.blogspot.in/2012/04/infosys-innovation-to-build-tomorrows.html
  • 22. 8 Steps to Innovation Excellen 22 STEP 3 BUILD PARTICIPATION
  • 23. How to build participation… 23  Role model  Community of practice  Innovation catalyst  Rewards & recognition
  • 24. 24 Theme 2: Improve the Idea Velocity 4. Experiment with Low Cost at High Speed 5. Go Fast from Prototyping to Incubation 6. Iterate on the Business Model
  • 25. 8 Steps to Innovation Excellen 25 STEP 4 EXPERIMENT WITH LOW COST AT HIGH SPEED
  • 26. Improve the Idea Velocity 26 4. Experiment with Low Cost at High Speed
  • 27. 27 Feb 2004 Sep 2003 Nov 2003 itch Apr 2004 demo idea Feasibility Loop Viability Loop 2 months 3 months 2 months impact
  • 28. Creating a Climate for Experimentation 28  Failure plays a critical role in innovation  Post-It Notes & failed adhesives  Create infrastructure, give resources for expts  Have a high trial rate: fail fast, learn fast  Can you do the “last” experiment first?
  • 29. Avoid the “Failure Fallacy” 29
  • 30. 8 Steps to Innovation Excellen 30 STEP 5 GO FAST FROM PROTOTYPE TO INCUBATION
  • 31. Improve the Idea Velocity 31 5. Go Fast from Prototyping to Incubation
  • 32. 8 Steps to Innovation Excellen 32 STEP 6 ITERATE ON THE BUSINESS MODEL
  • 33. Improve the Idea Velocity 33 6. Iterate on the Business Model
  • 34. Theme 3: Increase the Batting Average 34 7. Build an Innovation Sandbox 8. Create a Margin of Safety
  • 35. 8 Steps to Innovation Excellen 35 STEP 7 BUILD AN INNOVATION SANDBOX
  • 36. Increase the Batting Average 36 7. Build an Innovation Sandbox
  • 37. The Power of Platforms 37 Platform 7 Themes  Digital consumers  Emerging economies  Sustainable tomorrow  Smarter organizations  New commerce WalletEdge  Pervasive computing  Healthcare economy Offering http://jugaadtoinnovation.blogspot.in/2012/04/infosys-innovation-to-build-tomorrows.html
  • 38. Open Innovation 38  Procter & Gamble  Works with universities, suppliers and outside inventors  Offers them a share in the rewards  50% of P&G’s new-product ideas originate outside of the firm  Major source of growth  Eureka Forbes  Partners with technology suppliers from across the world
  • 39. 8 Steps to Innovation Excellen 39 STEP 8 CREATE A MARGIN OF SAFETY
  • 40. Increase the Batting Average 40 8. Create a Margin of Safety
  • 41. Could a premortem have prevented Dreamliner problems? 41 A premortem might have surfaced important failure modes such as problems with the Lithium-ion battery
  • 42. 42 Where do you Stand?
  • 43. Measuring Idea Pipeline 43 Small ideas Idea/person/yr TVS Motors: 44 Patentable ideas IP/person/yr New product ideas New business ideas Potential biz impact / % of rev Patents/yr 100 ideas, $1 B each Tata Motors: 22 Cognizant: 1 Machine tools: 100 Cr Rev, 2 Cr each idea
  • 44. Measuring Idea Velocity 44 Response Time Experiments Shell Gamechanger % of ideas < 48 hr Toyota < 1month #of exp Reviews Quarterly Ideas with champions
  • 45. Measuring Batting Average 45 Sandbox Partnership Network # of sandboxes # of active partners # of technology platforms 3M: 45 Avg response time to a challenge Success rate P&G: 15%->50% Biz impact Cognizant: $550m/year
  • 46. Assess your innovation maturity From Jugaad (level-1) to Excellence (level-5) Creative confidence Success rate of imple mented ideas>50% % of rev from Innov in last 5 yrs>30% Idea/person/yr >1 Level-5: High biz Big idea pipeline> Impact (Excellence) 10% of revenue # of sandboxes>1 Prototypes>10%(ideas) Response time<1month Participation 30%+ Idea Mgmt Buzz creation Incubation pipeline Level-4: Balanced Review: Quarterly L&D Portfolio Biz impact calculator in Innovation place dashboard Participation Level-3: Engaged (In Experiments/Reviews) 10%+ Don’t track Level-2: Foundation ideas (of 3 key Level-1: processes) Ad Hoc (Jugaad) Incubation effectiveness v6: 23-Aug-2013
  • 47. My Contacts: 47      Phone: Email: Blog: Web: Book: +91 9845022710 rishi@iimb.ernet.in http://jugaadtoinnovation.blogspot.in http://www.iimb.ernet.in/~rishi http://www.8stepstoinnovation.com
  • 48. THANK YOU