Ic In Large Global Organizations


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Ic In Large Global Organizations

  1. 1. INNOVATION CRAFTING IN GLOBAL ENTERPRISES – Blueprint for a New Organization for the New World crafting innovation together 17th March 2010, Bangalore Navneet Bhushan, navneet.bhushan@crafitti.com +91 9902766961 © CRAFITTI CONSULTING
  2. 2. THANK YOU ….. crafting innovation together Crafitti Consulting Crafting innovation together . . . www.crafitti.com Navneet Bhushan (navneet.bhushan@crafitti.com) © Crafitti Consulting Private Limited 2
  3. 3. We Are All Born Creative…. BUT It is “Taught OUT of US” crafting innovation together A child’s Creativity How Many of Decreases 90% from 5 to us Are 40? age 7? At 40 it is mere 2% of what we had!!!!!!! Copyright Navneet Bhushan
  4. 4. The Magical Number Seven, Plus or Minus Two: Some Limits on our Capacity for Processing Information George A. Miller (1956) Harvard University First published in Psychological Review, 63, 81-97. [1] This paper was first read as an Invited Address before the Eastern Psychological Association in Philadelphia on April 15, 1955. The point seems to be that, as we add more variables to the display, we increase the total capacity, but we crafting innovation together decrease the accuracy for any particular variable. In other words, we can make relatively crude judgments of several things simultaneously. Copyright Navneet Bhushan 2007
  5. 5. crafting innovation together 5 © Crafitti Consulting Private Ltd.
  6. 6. Killer Phrases Are Not Used During Idea Generation* 1. "Yes, but. . . " 21. "The boss will never go for it." 2. "We tried that before." 22. "It's too far ahead of the times." 3. "That's irrelevant." 23. . . . laughter. . . 4. "We haven't got the manpower." 24. . . . suppressed laughter. . . 5. "Obviously, you misread my request." 25. . . . condescending grin. . . 6. "Don't rock the boat!" 26. . . . dirty looks. . . 7. "The boss (or competition) will eat you alive." 27. "Don't fight city hall!" 8. "Don't waste time thinking." 28. "I'm the one who gets paid to think." 9. "Great idea, but not for us." 29. "What will people say?" 10. "It'll never fly." 30. "Get a committee to look into that." crafting innovation together 11. "Don't be ridiculous." 31. "If it ain't broke, don't fix it." 12. "People don't want change." 32. "You have got to be kidding." 13. "It's not in the budget." 33. "No!" 14. "Put it in writing." 34. "We've always done it this way." 15. "It will be more trouble than it's worth." 35. "It's all right in theory. . . but. . ." 16. "It isn't your responsibility." 36. "Be practical!" 17. "That's not in your job description." 37. "Do you realize the paperwork it will create?" 18. "You can't teach an old dog new tricks." 38. "Because I said so." * Reference: “What A Great 19. "Let's stick with what works."C 39. "I'll get back to you." Idea” by Charles “Chick” Thompson, 1992, 20. "We've done all right so far." 40. . . . silence. . . HarperCollins Publishers
  7. 7. While the defining measurement of (old world) was weight – … – the defining measurement of the globalization system is speed – speed of commerce, travel, communication and innovation Thomas L. Friedman, “The Lexus and Olive Tree” Flattening crafting innovation together World … And we don’t even realize it …
  8. 8. Complexity in a Flattening World Rapid Explosion Human Processing Limits of Complexity (The Magic Number 7 ± 2) Framing Limits Confidence  Connections create Value and Dependencies Number of alternatives crafting innovation together create complexity Time pressure  Future is approaching us Faster than History is Need for analysis leaving us! Information de-coherence  Increasing distance between user requirements Connections of what they really need versus what they want. Networks  With every choice we make today we Kill many possible futures
  9. 9. Competitive Advantage- Over Ages How Fast Co-Create Extent of Connectedness How Fast Innovate How much Actionable How much Knowledge crafting innovation together and Quickly can be How much Informed How much of Agricultural can be In the Connected Age – produced land and Co-Creators will thrive Natural Resources Time
  10. 10. Product Development going Global 2006 Businessweek “… most manufacturers understand what Global Product Development (GPD) is and why it is important but few really understand how to make it successful”. The commercial Teams around the globe work value proposition together to conceive, design and develop new products. • Leverage the Globe • Time to market (24x7 crafting innovation together Enterprise) • Cost, • Innovation • Quality/ Robustness Copyright Navneet Bhushan 2007
  11. 11. … Product Development going Global FROM TO Co-located teams Globally dispersed Cross-functional Culturally un-adjusted interactions, Non-e-mail Informal collaborations communication minimized crafting innovation together High bandwidth communications (face to Physically unaware face discussions) teams “Fuzzy front end” of New Product Spread over thousands Development amplified in Global of miles to collaborate Product Development Scenarios on new product development Copyright Navneet Bhushan 2007
  12. 12. New world needs new ways … Old World  centralized control  centralized management Winners in the New World  how to assign work  how to align  Lean Thinking -Toyota –  how to control Lean Product Development  Inventive Thinking/ Design crafting innovation together Thinking using TRIZ The realization that so called managerial  Systems Thinking/ Holistic control is a myth in a self-organizing and Thinking continuously evolving enterprise has not yet  Artful Making sunk in most of the enterprises.  Learning Organizations  Open Innovation Copyright Navneet Bhushan 2007
  13. 13. crafting innovation together is Nature Fractal!
  14. 14. Black Swan – The impact of the highly improbable • “I cannot accept a pretense of science. I much prefer a sophisticated craft, focused on tricks, to a failed science looking for certainties” Nassim Nicholas Taleb crafting innovation together
  15. 15. PASSION ….. Is the new Skill for the New World … crafting innovation together
  16. 16. In 2005, Survey of 86000 employees working for large and medium-sized companies in 16 countries crafting innovation together
  17. 17. crafting innovation together 17 ©
  18. 18. CREATING WEALTH …….. • The Ongoing Wealth Revolution • Explosion of Prosuming – The unpaid work all of us do • Wealth System – Money economy enmeshed with Prosumer economy crafting innovation together • The Ancient Wisdom – wealth beyond barest self- sufficiency is UN-NATURAL (Aristotle)
  19. 19. Industrial "Success" Curve 4 3000 Raw Ideas (unwritten) Log 10 of Number of Ideas Stevens and Burley – Research and 3 Technology Management May 1997 . 300 Ideas Submitted 2 125 Small Projects crafting innovation together 9 Significant Developments 1 4 Major Developments 1.7 Launches I Success 0 0 1 2 3 4 5 6 7 8 Stage of NPD process
  20. 20. crafting innovation together 20April 8, 2010 © Crafitti Consulting
  21. 21. Failures/Mistakes/Errors Burning your hand is a small price to pay for a good idea. PLEASE LET YOUR EMPLOYEES FAIL! crafting innovation together
  22. 22. crafting innovation together 22 © Crafitti Consulting Private
  23. 23. crafting innovation together 23 ©
  24. 24. crafting innovation together
  25. 25. 3 Conditions for Learning Low Threat and High Challenge Relaxed Alertness Orchestrated Immersion Active Processing crafting innovation together Experiences processed as In Multiple, the basis of Complex, Meaning Authentic Experiences
  26. 26. crafting innovation together © Crafitti Consulting Private Limited 26
  27. 27. Molecules Neurons crafting innovation together Networks System Outcome of the interaction between Emergent the brain and the environment Behavior 27 ©
  28. 28. • The brain is a complex adaptive system. • The brain is a social brain. • The search for meaning is innate. • The search for meaning occurs through patterning. • Emotions are critical to patterning. • Every brain simultaneously perceives and creates parts and wholes. • Learning involves both focused attention and peripheral attention. crafting innovation together • Learning always involves conscious and unconscious processes. • We have at least two ways of organizing memory. • Learning is developmental. • Complex learning is enhanced by challenge and inhibited by threat. • Every brain is uniquely organized http://www.brainconnection.com/topics/?main=fa/brain-based3
  29. 29. • Chaotic Dumbness (High Threat, Low Challenge) – Comply with this or else… – Constant use of “Killer Phrases” to destroy new ideas • Automated Disjointedness (Delegation, Hands Off) – Follow the process, don’t worry about anything – Processes above people – Right processes Mandated will create results crafting innovation together – “Skill Set” based work assignment • Passive Analysis (Data Collection, Historical Data Analysis) – Give me all the data that has been accumulated – I will analyze and give you Insights – Quantify – if you cant quantify you don’t really know? – We will do a Quarterly Analysis to provide you results
  30. 30. From Chaotic Dumbness to Relaxed Alertness From Automated Disjointedness to Orchestrated Immersion crafting innovation together From Passive Analysis to Active Processing
  31. 31. crafting innovation together © Crafitti Consulting Private Limited 31
  32. 32. Innovation is not about Automation Alone! crafting innovation together
  33. 33. crafting innovation together Artful Making
  34. 34. crafting innovation together
  35. 35. Emergence can not be pre- conceived crafting innovation together Re-conceiving everything in response to what team sees as newly possible with each passing movement of rehearsal, as a result of each new thing tried
  36. 36. crafting innovation together Artful Making - Again
  37. 37. Discovery Vs Making “Discovery” suggests there is a right choice waiting to be found crafting innovation together
  38. 38. crafting innovation together © Crafitti Consulting Private Limited 38
  39. 39. The ORGANIZATIONAL SWEET SPOT – Frequently Heard Comments • You Must. • Can you think of other options? • That’s not my Job. • Am I on the right track? • You have no choice. • Lets take another look at that deadline. • Have you forgotten the deadline? • Thanks for taking the initiative. • We need to talk. • How often should we meet? • It’s the bottom line that counts. • We’re in it together. • This is for your own good. • What’s your gut feeling on this? • Get off my back. • How can I help? crafting innovation together • I don’t care how you feel. • Is this mutually beneficial? • You had better pay attention to • How does this support our overall company policy. activities? • Don’t you understand? • Please take a real critical look at my • Is it time to go home yet? proposal. • How time flies. Controlled-Access Context Shared-Access Context 39 © Crafitti Consulting Private Ltd.
  41. 41. What is Value? • Customer defined • Opaque • Contextual • Multidimensional • Tradeoff • Relative • It is a Mindset crafting innovation together “The perceived worth of the set of benefits received by a customer in exchange for the total cost of the offering, taking into consideration available competitive offerings and pricings” Prof Mohanbir Sahney
  42. 42. crafting innovation together What is Value Mindset?
  43. 43. Suppliers Know Customer Needs Unknown 2 4 Customer Value-Net Intimacy Deep Dive 3 crafting innovation together 1 Known Orchestrated Delivery Customer Efficiency Learning Known Unknown Customers Know their Needs
  44. 44. Customers Competitors Company Complementors crafting innovation together Suppliers LEVERAGING THE VALUE NET Leverage our Customer’s Value net
  45. 45. crafting innovation together © Crafitti Consulting Private Limited 45
  46. 46. What is Lean? – A Global Optimizer Muda (Waste) Mura Muri • Lean enables Problem Solving (Variability) (Overburden) • A grassroots productivity Planning Aware Value multiplier • Focus: NVA elimination & Value Maximization crafting innovation together • Difficult to imitate – As it Embeds in Pull Value Flow Stream Value 46
  47. 47. Convergence in Design…How Toyota does it… How to converge from an initial set of conceptual ideas to one idea that will become the final Design? Early Convergence Strategy - Toyota’s Slow Convergence – Point-Based CE Set-Based CE Large Design Spaces – Design Critical Integration of Sets Chose Space n Analysis crafting innovation together Design Modificati “ELIMINATE on “DESIGN WEAKEST CHURNING” ALTERNATIVES” 47
  48. 48. Principles that Stick 7 Principles that Stick Plan your Project and Project your Plan Collaboration is the key and it has two parts Cooperation and Elaboration Identify and Exploit Concurrency where ever you can Wait Times are Waste Times crafting innovation together Crisis Avoidance is an order of magnitude more profitable than Crisis Management Best time to detect and respond to an error/defect/bug/mistake is while it is being created Decisions made in the value stream and Handoffs in value stream are main stream decelerators
  49. 49. Embedding Lean in your Company • Facilitated Kaizen Blitz’s will help the project teams to see the benefits – 5-10 Kaizen Blitz • 5-10 Lean Projects – Each project is of 6-8 weeks duration – Some projects will fail – Take the learning forward crafting innovation together • Set-up the Lean organization to research , experiment and explore – Lean Success will Spread – More PMs will start looking for Lean – PLEASE DO NOT MANDATE! Then Surely Lean Will Fail
  50. 50. crafting innovation together © Crafitti Consulting Private Limited 50
  51. 51. LEAN INVENTIVE SYSTEMS THINKING (LIST) CLASSICAL THE LIST REDUCTIONISM crafting innovation together Learning, Discovery, Design, Analysis, Determinism, Evolutionary, Experimental, Dualism, Correspondence Integrative, Holistic, Non- theory of knowledge, linear, Natural Rationality, Artificial 51 © Crafitti Consulting Private Ltd.
  52. 52. LIST – INVENTIVE THINKING HOW TO INVENT, UNDERSTAND and SOLVE PROBLEMS – How to Innovate TRIZ - Theory of crafting innovation together Inventive Problem Solving
  53. 53. TRIZ was founded in 1946 by a Russian engineer and scientist, Genrich S. Altshuller (Oct.15 1926 - Sept. 24,1998) The development of TRIZ involved thousands of engineers, took more than 50 years and included the analysis of millions patents worldwide. crafting innovation together Altshuller formulated main postulates of TRIZ: The evolution of engineering systems is not a random process, but obeys certain laws; Products/processes evolve towards the increase of perfection (ideality) by elicitation and overcoming technical and physical contradictions.
  54. 54. A Brief History of TRIZ TRIZ – Inventive Problem Solving by Altshuller • 1946 Patent Officer in Russian Navy Teoriya Resheniya Izobreatatelskikh Zadatch • Discovered patterns in patents, World’s best ideas published paper. A situation like mine World in this situation Sent to Gulag (Abstraction) Knowledge Access (Access) • 1954 released, Base analysed 2,500,000 Abstraction Specific patents My specific situation My specific solution • Identified what Evaluate crafting innovation together Me / my company makes a successful patent • 1956-1985 TRIZ formulated • Same Problems and Solutions appear again and again but in different industries • There are a series of recognizable Technological Evolution paths for all industries • Innovative solutions used theories outside their own area/industry • The most powerful solutions uncover and eliminate contradictions
  55. 55. Why TRIZ? Theory of Inventive Problem Solving by Altshuller Main postulates : ► The evolution of engineering systems is • 1946 Patent Officer not a random process, in Russian Navy but obeys certain laws; • Discovered patterns in patents, published ► Products/processes paper. Sent to Gulag evolve towards the crafting innovation together increase of perfection • 1954 released, (ideality) by elicitation analysed 2,500,000 and overcoming patents technical and physical • Identified what contradictions. makes a successful patent • 1956-1985 TRIZ formulated © Crafitti Consulting Private Ltd. 55
  56. 56. Questions that TRIZ asks you… 1. What is my Ideal Final Result – How can I achieve the functionality without A spending any resources or cost B 2. How the problem/situation/system looks in time and space coordinates C 3. Am I using all the existing resources or potential resources to the fullest 4. What is the main useful function I need crafting innovation together Plain Forest Coal to deliver. What are various ways in which I can deliver the function 5. How others have solved the same Tree Seed Timber problem in the past DNA Fruit Pie
  57. 57. Traditional Approach Vs Systems Approach – Fragment the whole – Multiple Solutions for the (problem) into parts same objective – Specialist for each part – Context Specific – Optimal/perfect solution Appropriateness crafting innovation together for each part – “Choice” based on available – Assemble back the parts to information obtain “optimised” solution – Fallibility of the Decision- for the whole (problem) maker Copyright Navneet Bhushan 2007
  58. 58. Systems Thinking • Enables us to discover trends and patterns • How they interact over time • Helps in analysing reality objectively, • Identify the structures that underlie complex situations • Enables us to understand and respond to the dynamics of strategic leverage points crafting innovation together Copyright Navneet Bhushan 2007
  59. 59. Four Tools/Methods/Methodologies TRIZ – Theory of Inventive Problem Solving Algorithm for Ideation/ There are universal principles of invention that are the basis for creative innovations that advance technology which TRIZ has identified and codified Problem Solving through analysis of millions of Patents, these are available for making the process of invention more predictable. http://www.triz-journal.com AHP – Analytic Hierarchy Process Multi Criteria Decision Making A powerful and flexible decision making process to help people set priorities and make the best decision when both qualitative and quantitative aspects of a decision need to be considered. It helps in generating consensus amongst a group crafting innovation together of experts. Saaty TL (1980) The Analytic Hierarchy Process, McGraw-Hill, New York Analyzing DSM – Design Structure Matrix the Dependencies System Analysis and Project management tool http://www.dsmweb.org Six Thinking Hats – Edward de Psychological Bono Method for Copyright Navneet Bhushan 2007 directed Thinking
  60. 60. Idea Crafting Idea Generation Situation Assessment TRIZ Six Hats Idea Clustering – Solutions crafting innovation together Generation DSM AHP Solution Implementation Solution Evaluation Copyright Navneet Bhushan 2007
  61. 61. Innovation Ignition – Lean Inventive Systems Thinking Inventive Thinking (inventive triggers, laws of evolution, scenario building, focus on function) Systems Thinking Lean Thinking (holistic approach, (Value maximization, global optima, experimentation, expanded and learning approach, connected system crafting innovation together elegance) context) LIST (Lean Inventive Systems Thinking) 61 © Crafitti Consulting Private Ltd.
  62. 62. crafting innovation together © Crafitti Consulting Private Limited 62
  63. 63. FINAL POINTS • The World is Not What it Used to Be …. • We Need New Type of Organizations – Innovative Learning Enterprises • New ways of looking at reality are needed • Artful Making, Lean Thinking, TRIZ, Social Computing, Open Innovation, Scenario Planning needs to be integrated as a framework crafting innovation together • We need to design organization as a Innovative Learning Enterprise • Lean Inventive Systems Thinking LIST – we propose to be the new framework for INNOVATION! © CRAFITTI CONSULTING
  64. 64. Crafitti Consulting: Background • Crafitti is an innovation research and consulting firm and facilitates innovation in business, science and technology contexts • Crafitti is currently incubated at the NSR centre for Entrepreneurial Learning at IIM Bangalore • Navneet Bhushan and Karthikeyan Iyer, the founding directors of the firm, have close to 30 years of collective industry experience and have been focused on researching crafting innovation together and facilitating innovation in diverse enterprise contexts over the past decade • Crafitti’s frameworks are a distillation of this experience and provide a potent platform to accelerate innovation in contexts as diverse as building innovative business strategies, conceptualizing and designing new breakthrough products and services, designing technological alternatives, intellectual property portfolio management, process innovation and embedding innovation DNA in organizations. 64
  65. 65. Key Spheres of Influence Embedding Innovation Enabling open DNA , Technology and innovation, Technology Industry & business strategy, and business evolution Ecosystem process productivity and research value generation, IPR advisory services, Patent analysis and portfolio Organization management crafting innovation together Idea generation, People Problem solving, Lean Thinking, Decision making Systems Thinking, Continuous learning Value Crafting, Design Thinking, Inventive Thinking, Decision Crafting 65
  66. 66. Our areas of Innovation R&D and Application (an evolving map) Innovation DNA in Organizations Robustness Scaling Technological Structured Alternatives strategy problem for patent definition Efficiency New Solution Co-creation Mind- Conceptualization Product IP Valuation mapping IT Value Consensus Performance architecture Opportunity building Brainstorming Finding Evolution IP Portfolio Reliability Business crafting innovation together Scenario trends Management Ideation Alignment building and Process Intellectual Creativity Decision Value Problem Property Innovation Product and Business Engineering Solving Crafting Strategy Strategy Grass-roots Innovation Body of Innovation Research Innovation Knowledge Network Experience 66 © Crafitti Consulting Private Ltd.
  67. 67. Crafitti Events: A Sprinkling Invited Speaker: NID Design Protection workshop @ Bangalore Lean for Apparel & and Delhi Paper at SNAC TISS: Fashion Industry: Session Social Network Types at PSG College Invited Speaker: and Organizational SPICON 2010 Chennai Public Workshop: Public Workshop at Forms Ideation Workshop Software Chennai: Patents and at ICFAI Invited Speaker: 2nd Innovation Innovation Paper Presentation International at Design First – Innovation Course at IBS: Conference on IPR Ultra Large Scale Idea Crafting System Design Public Workshop Public Workshop – Advanced at Hyderabad: Oct 2009 Mar 2010 Technical Advanced Patent Paper Patent Analysis using TRIZ Analysis presentation Session on IPR: Public Workshop - Lean @ 7th Talk at SPIN: Strategy and Business Inventive Systems Thinking International Feb 2009 Effective Lean Implications at TRIZ Session @ Symposium Management for WeSchool crafting innovation together Talk: TRIZ for GIS Sobha Developers on Fuels and Software Delivery at CAIR, DRDO Bangalore Lubricants, Talk at Subex: Ideas and Triggering Ideas with Delhi Talk Innovation Talk at Russian Inventive Principles Crafting at KCE Culture and TRIZ: Session at Talk at Philips: WeSchool Science Centre: June 2008 Innovation and Advanced Patent Patents using TRIZ Analysis using TRIZ Talk at BMA: Lean Thinking Talk at BarCamp: Vedic Talk at Ranbaxy: Inventive Principles Innovation Algorithms Talk at New Horizon Talk at CCSTDS: College of Management: Talk: Role of IP in TRIZ in Patent Lean Thinking Business Valuation Analysis © Crafitti Consulting Private Limited 67
  68. 68. Thank You! We look forward to active collaboration! crafting innovation together 68