4. Innovation Thinking Innovation Activities New Product New Tech New Biz New Market New. New.. New… What Is Management Innovation ?
5. Based on Webster online dictionary : Management : "Management" is characterizes the process of leading and directing all or part of an organization, often a business one, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible). Innovation : 1. A creation (a new device or process) resulting from study and experimentation. 2. The creation of something in the mind. 3. Specific programmed for the dissemination and optimization of the results of activities in the field of research and technological development, including demonstration What Is Management Innovation ?
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8. Business System Manufacturing Finance Advertisement R&D Supply Produc-tion Logistics Market- ing Sales SVC Product Planning Design Pricing Accept- ance Syndica- tion Place- ment Trading Market- ing Media Purchase Product Planning Sales Make Ad. Air Ad. Monitor Exploit Customer Customer Management Innovation What Is Management Innovation ?
10. Blue Ocean Strategy is about Create New Market Space with no Competition & make Competition Irrelevant LGE Company innovation Logo 2 = Triple double (double profit, revenue, share holder value); BY = By Year; 10 = 2100 through Blue Ocean Strategy Strategy of Innovation 3 Core Strategy New Market Market – Expand No- Competition Non- Customer
11. Blue Ocean Strategy concept is based on Value Innovation. How to make product that have best value for customer, and optimum cost in production Strategy of Innovation Costs Value Innovation Buyer Value
12. Compare point of view between Red Ocean vs. Blue Ocean; in New Market Concept Stuck in the middle Old Market Capture the core of Expanded Market Value Innovators New Market Strategy of Innovation Competition Michael Porter Renee A. Mauborgne W.Chan Kim Cost Leaders Differentiators Cost Leaders Red Ocean Blue Ocean Divergence V Innovation
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14. Value Chain 5 Force model Buyer Utility Map 6 Paths’ Framework / Value Curve Compare point of view between Red Ocean vs. Blue Ocean; in Non Competitor Concept Strategy of Innovation
17. Oops ! I heard that the average depth is 4 meters !!! 6 Sigma is one of Tool for Innovation 6 Sigma is about concept how to reduce “ variation ” 6Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services It’s a way of thinking, a way of decision making. Average is not enough, so we must find the data of variation, don’t be stupid Man in graph Tool of Innovation
18. Tool of Innovation μ USL USL T μ USL USL T Precision but no accuration Shifting to Target & Reduce Variation Shift to Target Reduce Variation USL USL T μ Accuration but no precision The Object of 6 Sigma is Shift to target Reduce Variation
23. Z 6 5 4 3 2 PPM 3.4 233 6,210 66,807 308,537 Process Defects capability opportunity Bulk of Fruit Process characterization and Optimization Lower Fruit 7 Basic Tools of QC (commonly happen in all Factory) Ground Fruit Consist of “No Good” result 6σ Concept (Metric) Sweet Fruits Design for productivity PPM = Part Per Million 3.4 PPM = If Production quantity 1000.000 pieces, only 3.4 pieces in “No Good” condition (that’s mean almost perfect) Tool of Innovation
24. Strategy Tools People Blue Ocean 6 Sigma Intrapreneurship Successful Manage Innovation is come from good synergy of 3 factors:
25. Intrapreneurship : Is about mental and action from someone that work in the company/corporate, that take high responsibility to change their idea to become service or product that have any profit, through encourage action and measurable risk and do Innovation (The American Heritage Dictionary) In The Book of Management Intrapreneurship “The Farmer & Hunter” (Anthony Dio Martin) : Intrapreneurship = Working Situation like Farmer + With Mentality like Hunter
26. All of us MUST LEARNING by DOING Success is ONLY MIND Game It is Not HOW MUCH you know that count, It’s about WHAT YOU DO with what You Know
27. For further reading : Blue Ocean Innovation Strategy , W Chan Kim – Renee Mauborgne; Penerbit Serambi 2006 Management Intrapreneurship. Petani dan Pemburu; Anthony Dio Martin, Penerbit Gramedia Pustaka Utam, 2005 Tool books of Six Sigma, The Art of Innovation etc