The document discusses the importance of ideas and innovation for organizations to survive in a competitive market. It emphasizes that organizations that do not constantly innovate will perish. While big ideas can build a competitive edge, small ideas that are low cost and easy to implement occur more frequently and have a high success rate. Research shows that in manufacturing, small ideas implemented by employees have a much greater impact on savings and profits than large ideas. The document provides examples of small ideas that have led to big impacts. It also offers tips on developing skills to generate ideas, common reasons why ideas fail, and how to build a culture of innovation in organizations.

1. 1
Power of small Ideas

2. 2
Ideas & Innovation
Idea: A thoughtor suggestionas to a possible
course of action.
Organizations who do not innovate constantlywill perish in
this ever changingcompetitiveworld
Innovation:Changethatcreates a newdimension
of performance

3. 3
To survive in the
competitive
market
To reduce costs
for improving
profitability
Necessity
of ideas
To meet
customer / stake
holder
requirements
To improve
Quality
To achieve more
with lesser
resources

4. 4
Necessity:Survival in Market
21
20
8
51
F’12 Share
Samsung
Nokia
Apple
Others
31
18
51
F'13 Share
Samsung
Apple
Others

5. 5
Necessity: Survival inMarket
43%
2%
Samsung Micromax
F'12 Smartphone market share
in India
26% 24%
Samsung Micromax
F’13 smart phone market share in
India

6. 6
Chinese phones have captured large market share in Q4
of2016

7. 7
Necessity Of New Ideas : Reduce Costs
 To reduce cost
(Manufacturing cost/Rework cost)
 To increase the profitability
Seller determined price = cost + desired profit
Desired profit = Customer determined price - cost

8. 8
Necessity Of New Ideas : More outputwithless input
Achieve more with fewer resources
 Optimize the resources
 For checkingthe avenue of recycling of used
resources
To create flexibility

9. 9
Necessity of New Ideas:Quality Improvement
 For eliminationof customer complaints
 For eliminationof penalties
To provide customer satisfaction
 For improving brand Image
 Good working Environment
Design Quality Supplier Quality
Mfg. Quality Service Quality
Customer Quality

10. 10
Necessity of New Ideas
Customer: Best in terms of Q C D
Organization: Profitability & growth
Employee Satisfaction: Best place to work
Supplier Satisfaction: Pleasure to do business
Community needs: ESOPS
Environmental Protection: Going Green
Other stake holder needs: Share holders, investors…

11. 11
INCOME
EXPENSES
No Profit /
No Loss
Profit
Loss
Big Ideas:
• Capital intensive
• Time consuming
• Difficult to implement
• Low success rate
• High risk
• Happen once in a while
When Successful build
competitive edge
Small Ideas:
• Low cost
• Short implementation time
• Easy to implement
• High success rate
• Low risk
• Frequency is high
When Successful maintain
competitive edge
BOTH ARE REQUIRED FOR ORGANIZATIONS TO GROW AND PROSPER

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 Many managers wait for one big idea to change the
game. They believe big ideas score in a big way over
small ideas
 Many managers believe workmen and first line
supervisors are not capable of generating and
implementing ideas

13. 13
 In manufacturing operations, small ideas score over
big ideas. Researchers validated and proved the
same.
Many managers wait for one big idea to change
the game. They believe big ideas score in a big
way over small ideas
Comparative Idea Data from Japan & USA for 1989
Japan USA
Nature of Ideas Small Big
Number of ideas per employee 37.4 0.12
Participation rate 77.60% 9%
Adoption rate 87.30% 32%
Average net savings per adoption $126 $6,114
Net savings per 100 employees $411393 $23478
Average reward per adopted idea $2.83 $602
17 times more powerful

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Small Ideas
 SmallIdeas are not takingroots in many organizations
 Many are waitingfor one big Ideas to change thegame; they believe
big ideas score in a big way over small Ideas
Many also believe thatworkmen and first line supervisors are not
capable of generating& implementingideas

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Smallidea : Big impact
P Oneoperatoreliminated
Workcontentreducedby 0.5min/veh
Q Chassisdamageseliminated
Reworkeliminated
C Manpowercostsaved(Rs.1,30,000/year)
Sparecosteliminated(Rs.28,800/year)
D Quickadjustmentfor15UVmodels
Nowaitingtimefornextstage
S Nodangerofslingscut-off
Nodangerofimproperslingsplacement
M Nooperatorconfusionfor15models
Nofatigue
Before
Conventional chassis lifting with slings
After
Single point chassis lifting device
Unsafe

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When do Ideas comefrom?
Whenyou thinkwith open-mind
 Become a good observer
 Criticalneed: Necessity is the mother of invention
 Team Work: Group discussions/Brainstorming

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How to develop skillof generating Ideas?
1.Thinkcreative and search alternatives:
Always askhow to Improve situation ina
creative way
2 Piggyback off others
Listen to the people around you and use their ideas
to stimulate ideas of your own.
3. Remember that the more ideas you generate, the
more probable it is that one of them will be the
ideal solution.

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How to develop skillof generating Ideas?
4. Find out simplest ways to solve the
problems.
5. Keepa notebook of ideas.
Be sure to keep a small notebook handy at all
times in which to record ideas so thatyou don't
forget them.
6. Take risks.
Have the courage to take risksby adopting new
ideas and following new courses of action.
7. Be curious.

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How to develop skillof generating Ideas?
8. Ask 5W (Who, why, what, where, when)/ 1H
(How) type Questions
9. Seek expert help, if in doubt
No body is perfect
Improve your knowledge, develop your skill
with help of experts
11. Learn from others
10. Wash off- pre existinghabits (Elephant’s
story)

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Big Ideas: How they happened
Who invented Frappuccino: (frozen coffee)?: A Starbucks employee in Southern California trying to beat the
heat without giving up the caffeine boost
Who invented ipod’s circular dial? An Apple employee playing with a number lock at home
Who invented furniture in a box? An Ikea employee who could not reload the furniture back into the truck after
a photo shoot
Who invented masking tape? A 3M employee who saw car painters struggling to mask parts and how much
effort it took to paint in straight lines
Who invented the world’s most popular news aggregator? A Google employee who was interested in global
news after the September 11 attacks
Who invented pointy nose Bullet Train? An automotive engineer fishing at a local pond who saw a Kingfisher
diving to catch a fish without making a splash
Are You
Listening to your employees and capturing their ideas
Do you have a system for generating and capturing ideas by your employees
Do you celebrate employees ideas and encourage as well as recognize them
Companies like 3M, Apple, Google, Pixar, P&G, Ritz-Carlton, Starbucks, Toyota,
Wholefood built vast empires by empowering their employees , WE CAN DO THE
SAME

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Why Ideas Fail?
 Not looking at Root cause
Half hearted problem analysis
Takingcontainment action
 Generating Idea in office, not on Gemba
Problems cannot befully understood and appreciated in
office.
Real-time data/Analysis / development of probable solution
can be only done effectively in Gemba
 Neglecting effect of new Idea on existing system
Resistancealways comes to New idea if it affects
existingsystem / people

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No involvement or concurrence
of workmen
Workmen know their place best
( Soap case story)
No Idea, about how to execute?
Poor Knowledge about how to develop.
Fear in Mindthat it willnot work
Great starter, poor finisher
High level of Enthusiasmat beginning
As problems crop up /resistances are encountered
and difficulties are encountered, confidence levels
go down and earlier determination / enthusiasm
levels start going down
Why Ideas Fail?

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How to builda cultureof Innovationin Organizations.
• People
• Equipment
• Technology
• Finance
Measurable Outputs
Measurable Activities
Measurable Inputs
Customer
CSI/CustomerSurvey
TGW/TGR
Marketshare
BrandCreation
Financial
Top& bottomlines
Contribution/veh.
ROI/ROCE
%income fromnewproducts
Business Planning
Time toMarket
Internalquality
Operationalcost
Learning & Growth
Culture
Attritionrates
ESS
Noofpatents/papers
IDEAGeneration
Idea screening andfiltration
Concept Development
Funding
Experimentation
Idea conversion

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Identify the required organizational interventions from the group discussions,
one to one discussions with key people andcapture actions to be taken
Action plan
Put time bound plans in place for the interventions, decide on key result
matrix andmeasure periodically.
At regular intervals re-measure and redo group discussions with the results
achieved so far. Modify plans where ever required

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Thankyou