Innovation & Creativity: Selectively Drawing Upon Best Practices for a unified, disciplined...

Innovation & Creativity:Selectively Drawing Upon Best Practices for a unified, disciplined approach

September 2013

Joseph S. O’HanniganDirector, Learning Solutions, 4:11 Business AssociatesSenior Associate Director, Custom & International Programs, Stayer Center for Executive Education, Mendoza College of Business, University of Notre Dame

Objectives & Outcomes

Provide a powerful new framework See the world differently Lead innovation & change more effectively Leverage your native ability to be creative

Integrate powerful tools & techniques Create a dynamic new network

with other leaders

Review & Look Ahead

• Creativity & Innovation: It is within YOUo What do we mean by “creativity?” By “innovation?”o Why are some people and organizations so good at this?o Exploding some myths about innovation

• Do NOT focus on your products and serviceso Really. Everyone focuses here. Don’t.o Broaden your view to see all TEN areas to innovate

(Products & Services are just 2)

• Some of the best: creating a unified, disciplined approach to innovation

o There are hundreds of tools and models and stories• Start with the Ten Types• Then on to effective approaches

Levels of Innovation

Common Business definitions

Extension of product/service

New model, finish, design

New to Company New to World

Lean Design definitions

Extension

Incremental

Breakthrough

Disruptive

Multiple types, even with small innovations, can produce Breakthrough and Disruptive results!

What areas might YOU Innovate?

Recall: Lean Thinking

• Focus on differentiating VALUE from WASTE (Everyone is a “Waste Detective”)

“Doing More and More with Less and Less, While Coming Closer and Closer to Giving the Customer Exactly What is Wanted”(Toyota Production System)

A Lean Innovation Approach

• Using similar “Lean” thinking, we apply tools and concepts to the “fuzzy front end” of the Product Development Process to:

Identify & Differentiate Value from Waste

Give the customers exactly what they want

Reduce the time to market

Provide innovation focus

Apply Lean Innovation Tools

*derived from 40 years of innovation tools and models*organized by Bart Huthwaite’s Institute for Lean Design

• Bart Huthwaite, Lean Design Coach• Founder, Institute for Lean Design

The “Mountain Model”

1. End In View – “What, Why & When”

2. Obstacles – Boundaries & Hurdles

3. Strategy – Ten Types – Value Creation & Waste Prevention

4. Metrics – Measurement System & Baselines

5. Tactics – Innovative Tools6. Action Plan – 90-day “What,

Who & When”

Action Plan

Tactics

Metrics

Strategy

Hurdles

End In View

Special thanks to Bart Huthwaite, Sr. and the Institute for Lean Design

Begin with the End in View

Why?– First step in bridging the gap

from where you are to where you want to go.

– Makes sure everyone is climbing the same mountain.

– Builds “common ground.”

Boundaries vs. Hurdles

No painter begins with an unlimited canvas…

…This allows us to identify the limits of the task at hand.

Boundaries are fixed and cannot be changed.

Hurdles are challenges that can be overcome if the correct resources are brought to bear

Deliver Optimum Value, Prevent Lifecycle Waste

-ilities, or Value Brothers

Wasteful -ings or Gremlins

The LEAN DESIGN EQUATION…“Optimize Strategic -ilities, Minimize Evil -ings”

All Customers Crave Eight Primary Values…

Customer Primary Values

What It Means

Performability Will the product perform functionally the way I expect?

Affordability Will it be within my cost expectation?

Featureability Will it have the features that enhance its functions to provide me added benefits?

Deliverability Will it be ready for me when I want it?

Usability Can I quickly and easily install it, learn how to use it?

Maintainability How easy will it be for me to keep in service?

Durability Is it robust enough to withstand the abuse myself, and others give it?

Imageability Will it convey the image of quality and prestige I desire?

Eight Primary Values Every Company Seeks…

Company Value What It Means

Profitability Will the product deliver profits quickly & at a level acceptable to our company?

Investability Will it require investment in people & equipment beyond expectations?

Riskability Will it expose our company, either today or tomorrow, to excessive risk?

Produceability Do we have, or can we acquire, the skills, experience, and equipment to build the product?

Marketability Will we be able to sell it easily using our existing distribution channels?

Growthability Does the market for the product offer significant growth and/or market share expansion?

Leveragability Will it enable us to enter new growth markets?

Respectability Will it convey the image of quality and prestige we desire?

Measuring the -ilities and -ings :

•Market Opportunities

•What Your Products/Services Lack

•Opportunities to Reduce Cost

•Where You Differentiate

Performability

Affordability

Deliverability

Useabiilty

Durability

Featureability

Maintainability

Imageability

Scoring the -Ilities

Rating -Ility Value Level9-10 Extremely high value. Sets the

standard for the industry

7-8 High value. Superior to that of most competitors

5-6 Acceptable. Meets expectations most of the time

3-4 Low value. Frequently does not meet expectations

1-2 Extremely low value. Well below that of all competitors

Identify Opportunities

0123456789

10Performability

Affordability

Featureability

Deliverability

Integrateability

Repairability

Durability

Imageability

Maintain Differentiation…

10Performability

Affordability

Featurability

Deliverability

Useability

Maintainability

Durability

Imageability

Product 1 Product 2

Customizing the –ilities Makes Strategy a Part of the Language

Company #1• Imageability• Knowledgeability• Dell-ability• Innovatability• Credibility• Breadth-ability• Sensible Indulgence• Easy Integrated Solution

Company #2• Install-ability• McDonald’s-ability• Flexibility• Trust-ability• Target-ability• Dependability

Products & Services are becoming obsolete the minute they are introduced…

The Three Sharks ofMarketplaceTechnologyCompetition

are eating the value in our products, services & organizations…

Three Sharks Exercise to “See the Future”

Step - Now(months/years )

Stretch - Tomorrow( months/years )

Leap - Future(months /years )

Marketplace

Technology

Competition Would a merger of competitors endanger your market position? Are overseas producers a threat?

Are there any new competitors who may try to enter your market space by offering a “simplified” solution compared to yours?

How competitive are you today? What are your differentiators?

Are there any “disruptive” technologies emerging in the distant future that could obsolete your entire business?

What new technologies do you anticipate emerging?Do you have the capability to develop these internally?

Does your design take advantage of all existing technology? Are you pushing the technology too far?

Are there any “disruptive” marketplace changes on the horizon?

What are the top 5-7 changes you anticipate in your customer’s Eight Primary Values?

Does your design strategy address all the Eight Primary Values? Are you delivering too much? Too little?

7 Design Flaws that Add Cost & Reduce Reliability

Seven Evils Description

Complexity Many different processes required to deliver the product’s value both on factory floor and for the customer’s use.

Precision Solution requiring precision at the outer limits of manufacturer’s ability to produce the product or customer’s ability to use it.

Variability Specification of difficult to control processes on the factory floor or in the customer’s domain

Sensitivity Solution easily flawed during factory operations or in the customer’s domain

Immaturity Use of solution not previously validated for a specific application

Danger Solutions with potential dangerous impact on humans or environment

High Skill Solutions requiring high degree of training and experience

Scoring the -ings

Rating -Ing Waste Level

9-10 Intolerable. Highest waste in the industry.

7-8 Excessive. Worse than most competitors.

5-6 Tolerable. High, but controllable.

3-4 Low. Minimum impact on cost & quality.

1-2 Extremely low. Well below that of all competitors

Measure the Evil –ings like the -ilities

Using the Cube to Brainstorm

- Complex- Precise- Variable- Sensitive- Immature- Dangerous- High Skill

The Three Sharks-Marketplace-Technology-Competition

Optimize Strategic Ilities,Minimize Evil Ings

- Sacrifice- Shrink- Switch- Divide- Unify- Recycle- Off-the-Shelf- Plus Up

- Fix Up- Incremental- Extension- Breakthrough- Disruptive

- Functions- Parts- Materials- Processes- People

Innovation Levels Opportunity Targets

- Performability- Affordability- Featureability- Deliverability- Usability- Maintainability- Durability- Imageability

Company Ilities - Profitability- Investability- Riskability- Produceability- Marketability- Growthability- Leveragability- Respectability

- Customer Use- Design- Supply Chain- Operations

Lifecycle Domains

Evil Ings

Copyright by Bart Huthwaite, Sr. and the Institute of Lean Design 2005

From “The Lean Design Solution: A Practical Guide to Streamlining Product Design and Development”

Customer Ilities

Lean Innovation Tactics

For Any/ All of the Ten Areas to Innovate,

There Are Generally Five “Opportunity Targets”

Functions

Materials

Processes

People

Apply Lean Design Tactics to the Targets

Functions

Materials

Processes

People

Sacrifice?Shrink?

Switch?

Divide?

Unify?

Re-Cycle?

Off-the-Shelf?

Plus Up?

Functions Parts Materials Processes PeopleSacrifice Solutions

•Eliminate finish•Eliminate metal parts in waterway

•Eliminate plating•Eliminate Brazing,bright dip, plating, & buffing

•Outsource design or manufacture

Shrinkage Solutions

•Reduce spout travel •Reduce # of nuts•Wall thicknesses•Tube length

•Assembly parts using tubes

•Reduce assembly complexity

Switch Solutions

•Switch sprayer w/ other side functions

•Switch diverter & side spray with flexible spout

•Non-metallic waterways•Threaded instead of brazed

•Substitute Injection Molding for machining brazing, buffing & coating

•Cross-train employees

Division Solutions

•Sell side spray separately

•Separate faucet from baseplate•Separate veggie sprayer from faucet

•Separate water contact & structural materials

•Sell side spray & faucet separately

•Dedicate team project time•Style development by channel

Unity Solutions•One hole and 8” spread

•Combine valve body & cartridge

•One piece body•One piece valve

•Combine models into one•One piece flow for machining

•Platform partnerships

Re-Cycle Solutions

•Directional sprayer•2-function sprayer

•Use Chrome appearance and PEX supplies•Diamond valve

•Use stainless for plated look

•Machine plastic rod with screw machines

•Capture peoples’ ideas•Partner with others

Off-The-Shelf

Solutions•Flow aerator •Quick connects

•Purchase existing vendor model•Use sister product components

•Purchase spout & cartridge

•Outsource design, market research, etc.

Plus Up Solutions

•Integrated new functions

•Top-down mounting•New valve cartridge

•Extend spout length•New handles

•Robotic buffing•Induction brazing

•Training & Skills

Next Steps…

• Classify new ideas from the 8x5 Matrix into “Step, Stretch, & Leap” timeframes

• Rank projects within the four levels of innovation by potential marketplace acceptance• New to world? New to Organization?

Incremental?• Use marketplace feedback & internal team

rankings

Developing the Product Road Map

• Conduct Gap Analysis – Look for holes in the Road Map– Conduct more focused brainstorming

to address these

• Identify “stretch” & “leap” concepts that require immediate resources

The result can be visual…

The Product Road MapProject Description 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

9 SKU Rationalization12 Reduce lead times13 Consolidate brands15 Rep Training (memory stick)

FIX UP 25 Add barcodes to all trays30 Direct mail advertising

2 Product 1 retail3 Product 2 dual-part4 Product 2 dual fix5 Product 2 stop6 Add new component to Product 27 Product 3 dual-part8 Product 3 dual fix14 Contractor packs20 Add tear strip to sleeve22 Decorative add-on24 Consumer kits26 Designer options27 Expand Special Finishes

28 Company "kits"

1 Add components to Product 210 New feature #111 New feature #2

1b New feature #318 New feature #4

19 Repairable Product 3 21 Repairable Product 2

16 Expedite shipping on “A” items

23 New feature #529 New feature #631 Utilize sister co. products

PARKING LOT 32 Combine processes33 Use alternate material to brass

Level of Innovation

Distant Future: 2004

LINE EXT. (Incremental)

NEW - WORLD (Disruptive)

NEW - ORG

LEAPIN' INTO 2003STEP UP 2001 STRETCH'D TO 2002

NEW MODEL FINISH/DESIGN

(Extension)

Worksheets & Application Tips

johannig@nd.edu

Three Sharks ExerciseStep - Now

(months/years )Stretch - Tomorrow

( months/years )Leap - Future

(months /years )