Innovation By Design -- Organize

introduction
context
attitude
methods
organize

Friday, February 19, 2010

innovation is an
inherently
organization problem


organization fails to
innovate not because
of lack of good ideas


most organizations are
designed not to
innovate, but to
produce


innovations are seen as
activities


by selected few


for a short period of time


product evolution


juggling three balls

People Business Technology
(culture & (structure & (products &
behaviors) strategy) services)

bouncing separately

keep them in sync


a story of IDEO


Sony Case


what was the symptom
of the problem


why could not Sony
build “walkman” iPod?


strong product
organizations


ﬁefdoms


language


mental model


innovation processes


Sony is not alone in this
struggle


the problem of
organization becoming


creates new
competitive space with
new customers and
competitors


personal personal
computer calculator

potential

new
market
through

expansion
of
meanings
of
computers


fundamental questions
that all leading companies are asking


who’s your customer?


what do you sell?


who are you?


the history of the phone


what are you designing
now?


NOT just product
design problems


organization
design problems


NTT DoCoMo


the 2nd largest
company in Japan


mobile phone services


phone needs to be
more than a phone


phone that gives “joy”


i-mode


phone as a wallet


phone as an e-mail


phone 67%
e-mail 100%
web 67%


most popular
application

JR time table


DoCoMo a bank?


is a mobile phone a
phone?


life style
infrastructure


perfect incompleteness


heterogeneity


7:3


2 questions


identity


innovation is a
question of identity


is Nike a computer
company?


is Apple a shoe
company?


or does it matter?


the story of Erco Light


1st generation: light
bulbs


2nd generation: lighting
solutions


3rd generation: tune
the lights


radical restructuring


from 2200 processes


2 processes


launching a project
managing a project


new digital
infrastructure


change of culture and
people


thing-focused people


verb-focused people


3 years
12 million euro


1 year payback
18-20% productivity
gain


structure


how are you going to
organize yourself?


about 42 people

about 6 people


who you are is what
you design


designing of
continuing innovation

a gallery of structures


innovations require both
specialized expertise and
integrations of knowledge


ideally,
Functional
focus

Product/Customer focus

Geographic
focus


in reality,
Functional
focus


Geographic
focus


leadership should
focus their energy on
Functional
focus


Geographic
focus


“What happened was, the designers came
up with this really great idea. Then they
take it to the engineers, and the engineers
go, ‘Nah, we can’t do that. That’s
impossible.’ And so it gets a lot worse.
Then they take it to the manufacturing
people, and they go, ‘We can’t build that!’
And it gets a lot worse.”


“What happened was, the designers came
up with this really great idea. Then they
take it to the engineers, and the engineers
go, ‘Nah, we can’t do that. That’s
impossible.’ And so it gets a lot worse.
Then they take it to the manufacturing
people, and they go, ‘We can’t build that!’
And it gets a lot worse.”

Steve Jobs, Oct 14, 2005


Apple’s

solution


deep collaboration


cross pollination


concurrent engineering


design engineering manufacturing


design

engineering manufacturing


not all project teams
are created equal
Functional structure Lightweight team

Market
Concept

Heavyweight team Autonomous, “tiger” team

Market
Concept

Market
Concept

Source:
Kim
Clark
and
Steven
Wheelwright

Revolutionizing
New
Product
Development


Functional
“Light
weight”
teams
focus
“Heavy
weight”
teams

“Tiger”
teams

Product/
Customer
focus


other
alternatives
Matrices:
Functional
Everyone
has
“two
bosses”:
both
functions
and
products/
focus customers
have
line
authority

Centers
of
excellence:
Different
parts
of
the
Mirm
are
organized
in
different
ways:
line
authority
is
split

Geographic Product
focus
focus


IBM

OneIBM with global
matrix


matrix organization

Function 1

Function 2

Function 3


NASA

OneNASA with
centers of excellence


centers
of
excellence

Function 1

Function 2

Function 3


HP

Front
and
Back


consumer
Computers
market

enterprise
non-computing
market


importance of aligning
incentive and power


there is no silver bullet


23 practical suggestions


1. put design as a part
of every strategic
discussion


2. have designers in
every project and let
them visualize what you
think


3. encourage people to
draw their ideas


4. ban bullet point
presentations and let
them tell the stories


5. prototype, prototype,
prototype


6. invite top designers
from different ﬁeld and
have a company-wide
talk


7. create design award


8. create the position of
Chief Design Ofﬁcer


9. keep a design
notebook


10. develop internal
Flickr to share photos
of everyday
experiences


11. develop a design
wiki


12. set up design cops
and remove all the ugly
ones (anything)


13. insist multiple
models


14. search for verbs --
replace your nouns
with verbs


15. share the ﬁsh
moment


16. reward the most
obnoxious customers


17. reward rebels


18. reward spectacular
failure and punish
mediocre success
-- Tom Peters


19. training design
principles and design
methods -- to everyone
starting from the top


20. keep reinventing
the wheel


21. give your
employees
unforgettable
experiences


22. let employees
design their own space


23. keep it fun


conclusion


world-makers


artiﬁcial world


clumsy place


tinkering with it


re-invent it


drawing on “unhappy
consciousness”


ability to think what is
NOT there


thinking plausible future


to leave the world as a
better place to live than
we found it


moral responsibility


what is possible


what is desirable


youngjin.yoo@temple.edu


Innovation By Design -- Organize

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