crafting innovation together



                                                 Transforming Inventors into
             ...
The first decade of 20th Century…
                                                                                  crafti...
The first decade of 21st Century…
                                                                                        ...
What are These?
                                                                                   crafting innovation tog...
More is Different – Scale is the New Frontier - I
                                                                        ...
More is Different – Scale is the New Frontier - II
                                                                       ...
More is Different – Scale is the New Frontier - III
                                                                      ...
More is Different – Scale is the New Frontier - IV
                                                                       ...
A Weakening of Hierarchies
                                                                         crafting innovation to...
Competitive Advantage- Over Ages
                                                                                         ...
IDEAS…. The new world of
                                                       Ideas
                                    ...
crafting innovation together
crafting innovation together




                               Confidential                 ...
crafting innovation together
crafting innovation together




                               Confidential   © Crafitti Con...
Industrial "Success" Curve
                                                                4

                            ...
The main “Innovation Killer” –
                                            Psychological Inertia
                         ...
crafting innovation together
crafting innovation together




                               Confidential   © Crafitti Con...
crafting innovation together
crafting innovation together




                               Confidential   © Crafitti Con...
Reality
                                                                     crafting innovation together

               ...
Black Swan – The impact of
                                      the highly improbable
                                   ...
PASSION ….. Is the new Skill for the
                                        New World …
                                 ...
In 2005, Survey of 86000 employees working
      for large and medium-sized companies in 16
                      countrie...
Innovation is not about
                                     Automation Alone!
                                           ...
Artful Making
                                                      crafting innovation together
crafting innovation toget...
crafting innovation together
crafting innovation together




                               Confidential
Failures/Mistakes/Errors
                                                              crafting innovation together
      ...
Emergence can not be pre-
                                                     conceived    crafting innovation together
c...
Albert Einstein Says
                                                        crafting innovation together
crafting innovat...
Artful Making - Again
                                               crafting innovation together
crafting innovation toge...
Discovery Vs Making
                                                         crafting innovation together



   “Discovery...
HOW TO THINK
                                                       crafting innovation together




   When Einstein was
...
What are the Assumptions?
                                                     crafting innovation together




          ...
crafting innovation together
crafting innovation together




                               Confidential
crafting innovation together



                               •   The brain is a complex adaptive system.
               ...
3 Conditions for Learning
                                                                                       Low Threa...
• Chaotic Dumbness (High Threat, Low Challenge)v a t i o n
                                         crafting inno         ...
Killer Phrases Are Not Used During Idea Generation*
                                                                      ...
crafting innovation together




                                          From Chaotic Dumbness to Relaxed Alertness


 F...
crafting innovation together




                                                 CONCEPTUAL SOLUTION:
                   ...
crafting innovation together
                               Three types of people create Idea Tipping Points

            ...
Social Scientists Classification of Social Networks
                                                                      ...
Social Network Archetypes
                                                                                    crafting inn...
Taxonomy of Network Centric Warfare
                                                          Architectures
              ...
Combining these three classifications – we
                                    propose following 5 type of social networks...
Key Differences between Organizational Forms
                                   Organization Form    Hierarchical       A...
Social Networks and Organization Form
                                                                                    ...
Mapping Social Networks to Org Forms using
                                       Analytic Hierarchy Process (AHP)
       ...
crafting innovation together
                                                                                             ...
The ORGANIZATIONAL SWEET SPOT –
                                                  Frequently Heard Comments
              ...
The Other Side - Non-Sensible
                                                   crafting innovation together


   There a...
crafting innovation together

                                                       Junior Jail
                         ...
crafting innovation together




                                              International Patent Application No.
      ...
crafting innovation together



                               Patent No. US4233942. A device for
                        ...
crafting innovation together




                                              UK Patent Application No.
                 ...
crafting innovation together
crafting innovation together




                               Confidential   © Crafitti Con...
crafting innovation together
crafting innovation together




                               Confidential   © Crafitti Con...
crafting innovation together
crafting innovation together




                               Confidential   © Crafitti Con...
LIST – INVENTIVE THINKING
                                                               crafting innovation together


  ...
A Brief History of TRIZ

                                          TRIZ – Inventive Problem Solving by Altshuller
        ...
5 Levels of Inventions
                                                                                   crafting innovat...
Questions that TRIZ asks you…
                                                                             crafting innova...
Case Study: Technological Alternatives
                                              Study on EP0922744
                  ...
Innovation Crafting
                                                                          crafting innovation together...
Convergence in Design…How Toyota does it…
                                                                             cra...
History and Future

                      What you know is
                                                          craft...
History and Future
                                                          crafting innovation together


              ...
Define Global Trends and Scenarios


                                              crafting innovation together
crafting i...
Red Ocean Versus Blue Ocean Startegy


                                                                                   ...
Future Directed Patent Strategy Elements

                                                                            craf...
Connect and Develop

                                                                                                     ...
P&G Connect and Develop
                                                                      The Complete Picture
       ...
Open Innovation Processes                                 Six
                                                            ...
crafting innovation together




                                                LEAN INVENTIVE SYSTEMS
                  ...
FINAL POINTS
                                                                 crafting innovation together



            ...
crafting innovation together




                                                     Crafitti Consulting
                ...
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  1. 1. crafting innovation together Transforming Inventors into Innovators – The Keys the R&D Organizations are Completely Missing Out! crafting innovation together Navneet Bhushan (navneet.bhushan@crafitti.com) Crafitti Consulting (www.crafitti.com) Bangalore, January 30, 2010 Confidential
  2. 2. The first decade of 20th Century… crafting innovation together • In 1890, Average company in US had - FOUR employees (4) • By 1901, US Steel became world’s first 1 Billion $ company • Ford Motor Company, founded in 1903, was producing half a million crafting innovation together cars a by 1913 Confidential © Crafitti Consulting Private Ltd. February 16, 2010 2
  3. 3. The first decade of 21st Century… crafting innovation together crafting innovation together Confidential © Crafitti Consulting Private Ltd. February 16, 2010 3
  4. 4. What are These? crafting innovation together A social network, in this case of sexual contacts, redrawn from the HIV data of Potterat et al.. SOCIAL NETWORK crafting innovation together A visualization of the network structure of the Internet at the level of “autonomous systems”—local groups of computers each representing A food web of predator-prey hundreds or thousands of machines. interactions between species Picture by Hal Burch and Bill in a freshwater lake FOOD Cheswick, courtesy of Lumeta Corporation. INTERNET WEB Who Designed these systems? Confidential © CRAFITTI CONSULTING
  5. 5. More is Different – Scale is the New Frontier - I crafting innovation together Google’s Custom Built Server Farms Current estimates put Google's server farm at around 450,000 machines - and they're still custom built, commodity- class x86 PCs, just like they were in 1999 crafting innovation together We Are Building Bigger and Bigger Systems Confidential © Crafitti Consulting Private Ltd. February 16, 2010 5
  6. 6. More is Different – Scale is the New Frontier - II crafting innovation together The Internet Inter-disciplinary Capillary network collaborations crafting innovation together Complex system design diagram High School Friendships Systems are Evolving into Bigger Systems Confidential © Crafitti Consulting Private Ltd. February 16, 2010 6
  7. 7. More is Different – Scale is the New Frontier - III crafting innovation together “The ability to reduce everything to simple fundamental laws does not imply the ability to start from those laws and reconstruct the universe” Anderson, P.W., More is Different, Science, Vol. 177, No. 4047, Aug. 4, 1972, pp. 393-396. crafting innovation together Scale Changes Everything! Confidential © Crafitti Consulting Private Ltd. February 16, 2010 7
  8. 8. More is Different – Scale is the New Frontier - IV crafting innovation together “The older is not always a reliable model for the newer, the smaller for the larger, or the simpler for the more complex…Making something greater than any existing thing necessarily involves going beyond experience.” Henry Petroski, Pushing the Limits: New Adventures in Engineering crafting innovation together Scale is not a linear extrapolation! Confidential © Crafitti Consulting Private Ltd. February 16, 2010 8
  9. 9. A Weakening of Hierarchies crafting innovation together • Information abundance permits INDIVIDUALS to by- pass hierarchies that have – deliberately or inadvertently – controlled or limited information • Alternative human organization forms – based mainly on the Network have proved more effective and efficient for transacting information than crafting innovation together hierarchies. In Information intensive enterprises, hierarchical organizations may not be competitive with networks. IN ATHENA’s CAMP – Preparing for conflict in the Information Age, (Ed) Arquilla J. and Ronfeldt D, RAND, 1997 Confidential © CRAFITTI CONSULTING
  10. 10. Competitive Advantage- Over Ages crafting innovation together 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 Confidential Time
  11. 11. IDEAS…. The new world of Ideas crafting innovation together crafting innovation together Confidential
  12. 12. crafting innovation together crafting innovation together Confidential 22 Dec 2005
  13. 13. crafting innovation together crafting innovation together Confidential © Crafitti Consulting Private Ltd. February 16, 2010 13
  14. 14. Industrial "Success" Curve 4 crafting innovation together 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 Confidential
  15. 15. The main “Innovation Killer” – Psychological Inertia crafting innovation together Main sources of Psychological Inertia: ► One discipline only / Not outside your specialty / Looking for Solutions where we feel comfortable ► Result of life experiences / Cultural Backgrounds crafting innovation together ►“This is the way we’ve always done it” syndrome Confidential
  16. 16. crafting innovation together crafting innovation together Confidential © Crafitti Consulting Private Ltd. February 16, 2010 16
  17. 17. crafting innovation together crafting innovation together Confidential © Crafitti Consulting Private Ltd. February 16, 2010 17
  18. 18. Reality crafting innovation together The only reason the adhesive was still around in 1978 was because of the persistence of its inventor, Spencer Silver. In 1968, when he invented the glue, Silver was a member of a polymers research team in 3M's Central Research Laboratories. His glue did not fit into the research brief of his team, which was to come up with crafting innovation together stronger not weaker adhesives. From 1968 through to 1973, Silver persisted in trying to convince the company that products could be developed that exploited the qualities of a less aggressive glue. But, 3M was "trapped by the metaphor that insists tha the ultimate adhesive was one that forms an unbreakable bond" (Nayak and Ketteringham, p. Confidential 368). Silver even Private Ltd.trouble convincing the company © Crafitti Consulting had February 16, 2010 18
  19. 19. Black Swan – The impact of the highly improbable crafting innovation together • “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 Confidential
  20. 20. PASSION ….. Is the new Skill for the New World … crafting innovation together crafting innovation together Confidential
  21. 21. In 2005, Survey of 86000 employees working for large and medium-sized companies in 16 countries crafting innovation together crafting innovation together Confidential
  22. 22. Innovation is not about Automation Alone! crafting innovation together crafting innovation together Confidential
  23. 23. Artful Making crafting innovation together crafting innovation together Confidential
  24. 24. crafting innovation together crafting innovation together Confidential
  25. 25. Failures/Mistakes/Errors crafting innovation together Burning your hand is a small price to pay for a good idea. PLEASE LET YOUR EMPLOYEES FAIL! crafting innovation together Confidential
  26. 26. Emergence can not be pre- conceived crafting innovation together 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 Confidential thing tried
  27. 27. Albert Einstein Says crafting innovation together crafting innovation together Sometimes one pays the most for the things one gets for nothing The whole of science is nothing more than the refinement of everyday THINKING Confidential
  28. 28. Artful Making - Again crafting innovation together crafting innovation together Confidential
  29. 29. Discovery Vs Making crafting innovation together “Discovery” suggests there is a right choice waiting to be found crafting innovation together Confidential
  30. 30. HOW TO THINK crafting innovation together When Einstein was asked what was most helpful to him in developing the theory of relativity, he crafting innovation together replied, “Figuring out how to think Confidential about the problem.”
  31. 31. What are the Assumptions? crafting innovation together • Care about the Premises more than the Theory crafting innovation together Confidential
  32. 32. crafting innovation together crafting innovation together Confidential
  33. 33. crafting innovation together • 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 Confidential
  34. 34. 3 Conditions for Learning Low Threat and crafting innovation together High Challenge Relaxed Alertness Orchestrated Immersion Active Processing crafting innovation together Experiences processed as In Multiple, the basis of Complex, Meaning Authentic Experiences Confidential
  35. 35. • Chaotic Dumbness (High Threat, Low Challenge)v a t i o n crafting inno together – 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 Confidential
  36. 36. Killer Phrases Are Not Used During Idea Generation* crafting innovation together 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 Confidential
  37. 37. crafting innovation together From Chaotic Dumbness to Relaxed Alertness From Automated Disjointedness to Orchestrated Immersion crafting innovation together From Passive Analysis to Active Processing Confidential
  38. 38. crafting innovation together CONCEPTUAL SOLUTION: GLOBAL ENTERPRISE AS A SOCIAL SYSTEM The Tipping Point that refers to the moment when crafting innovation together something unusual becomes common. The book seeks to explain "social epidemics", or sudden and often chaotic changes from one state to another. (Wikipedia) Confidential ©
  39. 39. crafting innovation together Three types of people create Idea Tipping Points Connectors are those with wide social circles. Mavens are knowledgeable people. Salesmen are charismatic people with powerful negotiation skills. They exert "soft" influence rather than forceful power. The PROCESS of TIPPING POINTS crafting innovation together The Law of the Few: Find out Connectors, Mavens and Salesmen – a few of these is what one idea needs to become an epidemic Stickiness: Ideas or products found attractive or interesting by others will grow exponentially for some time. The Power of Context: Human behavior is strongly influenced by external variables of context. Confidential © CRAFITTI CONSULTING
  40. 40. Social Scientists Classification of Social Networks crafting innovation together Ego-Centric Networks Socio-Centric Networks Open-System Networks Networks that are Boundaries of the Boundaries are not connected with a single network are clear; necessarily clear node or individual Networks in a Box Example, My good Example, students in a Example, network of friends, All companies class, employees of an elite class, connections crafting innovation together doing business with ABC organization between corporations Lists alone are Most studied in terms of Most interesting and insufficient – info about fine points of network most difficult to study connections also is structure required Confidential 40 ©
  41. 41. Social Network Archetypes crafting innovation together Type Customized Response Modular Response Routine Response Problems and Ambiguous Known components – Well-defined and Solutions but combination or predictable sequence not known Value Quickly framing and solving Delivering a unique Efficient and consistent a problem in an innovative response depending response to a set of way upon the constellation established problems of expertise required crafting innovation together by the problem Types New product dev, Surgical teams, Law Call centers, insurance investment banks, Strategy firms, B2B sales claims processes consulting Confidential 41 ©
  42. 42. Taxonomy of Network Centric Warfare Architectures crafting innovation together Architecture Characteristics A. Centralized One central high value Hub – other low value nodes networked and controlled by Hub B. Hub-Request “Type E” Request based plus one or more central high value hubs C. Hub-Swarm “Type G” Swarming plus one of more central high value hubs D. Joint Mixture of other six types (Type A, Type B, Type C, Type E, Type F and Type G) E. Request-Based Nodes of same value, but with different specialized capabilities. Request for service between nodes of different kinds F. Mixed Mixture of “Request-Based” and “Swarming” F1: Limited Types Small number of node types (includes the case of separate sensor, crafting innovation together engagement, and C2 grids” F2: Commonality Nodes are different, but have significant commonality G. Swarming Nodes identical or nearly so G1: Emergent Swarming Nodes follow simple rules, like insects G2: Situationally Aware Nodes share information to build up Situational Awareness Swarming picture G2(a): Orchestrated One node is a temporary “leader” G2(b): Hierarchical Nodes are arranged in a Hierarchy G2(c): Distributed No Leader or Hierarchy Confidential 42 ©
  43. 43. Combining these three classifications – we propose following 5 type of social networks crafting innovation together • Customized Response Open Swarms (CROSs) Networks • Modular Response Socio-Centric Request-Based (MRSR) Networks • Routine Response Ego-Centric Centralized (RECC) Networks crafting innovation together • Customized Response Socio-Centric Hub-Swarm (CuSHuS) Networks • Customized Response Open Request-Based (CROR) Networks Organizational Forms and Social Network Types – A Framework for Analysis Navneet Bhushan and Karthikeyan Iyer Confidential 43 © Crafitti Consulting Private Limited
  44. 44. Key Differences between Organizational Forms Organization Form  Hierarchical Ambidextrous Collaborative g i n n oLearning t o g e t h e r Emergent craftin vation Key function Efficient allocation Balance growth and Information flow, Continuous Evolution of resources efficiency 1+1 > 2 improvement Flow Uni-directional, Conditional Multi-directional, Cyclic, Directed Natural, not top-down peer-to-peer towards ideality consciously directed Evolution Standard Tree The banyan tree Cross-Pollination Continuous Living system hierarchy model improvement, pursuit principles of perfection Knowledge Assumed to be Some knowledge Potential to be Knowledge to be Created as needed codified, known codified, some to be maximized through improved and obtained sharing increased continuously crafting innovation together Interdependence Clear, closed Modular Fuzzy boundaries Clear but open Boundary-less boundaries architecture, Clear, boundaries closed boundaries Detection of and Central detection Multiple antennae Fuzzy, democratic Clear yet Decentralized, Response to change and intelligence, ready for feedback, response, some decentralized adaptive response command-control, multiple intelligence change absorbed, detection and crisp response, centres, crisp some adapted, response, response detection and response detection and strategic response slow for response slow but large org., fast for holistic small org. Confidential 44 ©
  45. 45. Social Networks and Organization Form crafting innovation together crafting innovation together Organizational Forms and Social Network Types – A Framework for Analysis Navneet Bhushan and Karthikeyan Iyer Confidential 45 © Crafitti Consulting Private Limited
  46. 46. Mapping Social Networks to Org Forms using Analytic Hierarchy Process (AHP) crafting innovation together crafting innovation together Confidential 46 © Crafitti Consulting Private Limited
  47. 47. crafting innovation together Customized Response Open Learning Swarm Customized Response Customized Response Socio-centric Open Hierarchical Hub-Swarm Request-based Routine Response Routine Response Ego-centric Ego-centric Customized Response Centralized Centralized Open Request-based Emergent Modular Response Modular Response Socio-centric Socio-centric Customized Response Customized Response crafting innovation together Request-based Request-based Open Socio-centric Swarm Hub-Swarm Customized Response Socio-centric Hub-Swarm Customized Response Ambidextrous Open Customized Response Socio-centric Swarm Hub-Swarm Customized Response Open Request-based Collaborative Confidential 47 © Crafitti Consulting Private Limited
  48. 48. The ORGANIZATIONAL SWEET SPOT – Frequently Heard Comments crafting innovation together • 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 Confidential © Crafitti Consulting Private Ltd. February 16, 2010 48
  49. 49. The Other Side - Non-Sensible crafting innovation together There are Many Patents Granted by Patent Offices that can only be called absurd crafting innovation together Confidential 49 February 16, 2010 ©
  50. 50. crafting innovation together Junior Jail US Patent 4,205,966* Issued / 1980 Our inventor had probably changed one too many diapers the day this invention came to mind. It's designed to aid in diaper changing and cleaning up the aftermath. Sure little legs and hands can flail and kick and a full body wiggle doesn't make things any easier but putting junior in crafting innovation together restraints seems a bit extreme. To use, simply place baby on his back, secure the torso barrier and strap in those cute little fluttering feet. Now take your time, relax, junior isn't going anywhere. Confidential
  51. 51. crafting innovation together International Patent Application No. WO9939598. Headgear in the form of a portable container (a beer barrel?). It has a spigot 14 for dispensing the contents by gravity or pressure. Or the spigot may have a hose so that the crafting innovation together contents can be dispensed by suction direct to the wearer's mouth. The headgear can also include a cooling system; a heating system; an audio system; and/or a visual system. Confidential
  52. 52. crafting innovation together Patent No. US4233942. A device for protecting the ears of a long-haired dog from becoming soiled by food while it is eating. French Patent Application No. FR2694256. An amphibious horse crafting innovation together drawn light vehicle, with floats 13 associated with the harnessing shafts. A preferred form has tricycle wheels which can be raised and lowered to provide pedal assistance. Optionally there may be paddles on the rear wheels. Confidential
  53. 53. crafting innovation together UK Patent Application No. GB2221607. A glove for courting couples who wish to maintain palm-to-palm contact while holding hands. It has a common palm section, but two separate sets of crafting innovation together fingers. Confidential
  54. 54. crafting innovation together crafting innovation together Confidential © Crafitti Consulting Private Ltd. February 16, 2010 54
  55. 55. crafting innovation together crafting innovation together Confidential © Crafitti Consulting Private Ltd. February 16, 2010 55
  56. 56. crafting innovation together crafting innovation together Confidential © Crafitti Consulting Private Ltd. February 16, 2010 56
  57. 57. LIST – INVENTIVE THINKING crafting innovation together HOW TO INVENT, UNDERSTAND and SOLVE PROBLEMS – How to Innovate TRIZ - Theory of crafting innovation together Inventive Problem Solving Confidential
  58. 58. A Brief History of TRIZ TRIZ – Inventive Problem Solving by Altshuller crafting innovation together • 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 Confidential
  59. 59. 5 Levels of Inventions crafting innovation together • Pioneering Invention – based on newly discovered phenomenon Level 5 (<0.3%) • Pushing existing technology to a higher level • Revolutionary • New System Developed Level 4 (< 4%) • Interdisciplinary solutions • Replacing old technology with New • Radical change or elimination of one principal system component Level 3 (19%) • One Engineering Discipline • Resolution of a physical contradiction crafting innovation together • Slight Modification of the system Level 2 (45%) • Knowledge from different areas within the industry • Resolution of a technical contradiction • A simple improvement Level 1 (32%) • Knowledge within the trade • No system conflicts are resolved Confidential 59 February 16, 2010 © Crafitti Consulting Private Ltd.
  60. 60. Questions that TRIZ asks you… crafting innovation together 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 Confidential
  61. 61. Case Study: Technological Alternatives Study on EP0922744 crafting innovation together crafting innovation together Confidential Patent Benchmarking Competitor’s Patents to TRIZ Lines of System Evolution
  62. 62. Innovation Crafting crafting innovation together Idea Generation Situation Assessment TRIZ Six Hats Idea Clustering – Solutions crafting innovation together Generation DSM AHP Solution Implementation Solution Evaluation Confidential
  63. 63. Convergence in Design…How Toyota does it… crafting innovation together 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” Confidential ALTERNATIVES”
  64. 64. History and Future What you know is crafting innovation together limited by what you can know today; What you don’t know today is what crafting innovation together you will be forced to know tomorrow; There are always limits to Confidential your Knowledge
  65. 65. History and Future crafting innovation together What you should do is to create as many alternative futures as possible and also keep with you as many histories as possible. Work You don’t know which history around crafting innovation together is connected to which future – but one path is unfolding the limits right now – you need to find out…. to your Confidential Knowledge
  66. 66. Define Global Trends and Scenarios crafting innovation together crafting innovation together Confidential
  67. 67. Red Ocean Versus Blue Ocean Startegy crafting innovation together In the red ocean, differentiation costs because firms compete with the same best-practice principle. Here, the strategic choices for firms are to pursue either differentiation or low cost. In the reconstructionist world, however, the strategic aim is to create new best-practice rules by breaking the existing value-cost trade-off and thereby creating blue ocean. Red Ocean Strategy Blue Ocean Strategy Compete in existing market space. Create uncontested market space. Beat the competition. Make the competition irrelevant. crafting innovation together Exploit existing demand. Create and capture new demand. Make the value-cost trade-off. Break the value-cost trade-off. Align the whole system of a firm’s Align the whole system of a firm’s activities with its strategic choice activities in pursuit of of differentiation or low cost. differentiation and low cost. Confidential
  68. 68. Future Directed Patent Strategy Elements crafting innovation together Define Global Trends and Scenarios crafting innovation together Are we playing in the Red Ocean or are we creating Blue Oceans? How can you create Blue Oceans and Protect these as well. Link business Strategy with IP Strategy through Balanced Score Cards Confidential
  69. 69. Connect and Develop crafting innovation together Practice of Open Innovation (The P&G Case) Source: Larry Huston & Nabil Sakkab, Connect And Develop – Inside Procter & Gamble’s New Model for Innovation, Harvard Business Review, March 2006 crafting innovation together Confidential
  70. 70. P&G Connect and Develop The Complete Picture Source: Larry Huston & Nabil Sakkab, Connect And Develop – Inside Procterg&iGamble’s t i o n t o gfortInnovation, Harvard craftin n n o v a New Model e h e r Business Review, March 2006 $$ What to Search Go To Market How & Where to Search crafting innovation together Confidential Evaluate Ideas
  71. 71. Open Innovation Processes Six TRIZ Thinking • Uncertain AHPr Hats crafting innovation togethe • Wasteful/Inefficient/Non- DSM flowing Innovation • Unpredictable/Stochastic Crafting Open Lean Innovation • Is it possible to craft an open innovation TRIZ Embedded process to be LEAN? Lean Open crafting innovation together Innovation • Is it possible to craft Network an open innovation process to be INNOVATIVE? Idea Hit Ratio Idea Productivity Confidential
  72. 72. crafting innovation together 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, Open Rationality, Artificial, Closed Confidential © Crafitti Consulting Private Ltd. February 16, 2010 72
  73. 73. FINAL POINTS crafting innovation together • Complexity is Increasing, Scale is the New Frontier • Deep Knowledge, Expertise may lead to Inertia and restricted viewpoint • 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 Learning Enterprise • Lean Inventive Systems Thinking LIST – we propose to be the new framework for (R&D) INNOVATION! Confidential © CRAFITTI CONSULTING
  74. 74. crafting innovation together Crafitti Consulting Crafting innovation together . . . www.crafitti.com crafting innovation together Navneet Bhushan (navneet.bhushan@crafitti.com) Confidential 74

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