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RADICAL INNOVATION WITHOUT
COLLOCATION: A CASE STUDY AT BOEING-
ROCKETDYNE
Malhotra,Majchrzak,Carman and LottMIS Quarterly 2001
Aravind Sesagiri RaamkumarKannan VenkataramanujamMuthu Kumaar Thangavelu
AGENDA
• Radical Innovation• Cross Fertilization of Ideas• VC3 team for Rocketdyne’s mission• SLICE TEAM Success Story• Management Practices• Restructuring work with VC3• Implications for practice and research • Key Takeaways
Radical Innovation
In an increasingly complex world, sometimes old questions require new answers !!
Cross Fertilization of Ideas
Hybrid Product
Breed 2Breed 1
Stand alone success rate A
Composition A
Environment A
Knowledge base A
Reactivity AStand alone
success rate B
Composition B
Environment B
Knowledge base B
Reactivity B
Collaborative success rate
>=AxB
Composition AxB
Environment A or B
Knowledge base AxB +
Interaction value add
Reactivity AxB
How about a warm Ice Cream?
• Mapping Market Expectations to Hybrid Element’s attributes• Choosing the best elements for interaction• Forecasting the collaborative value• Choosing the best possible ba• Implementing Process concurrency• Restructuring for a best combination by trial & error method
with prior knowledge on the subject
VC3- Virtual Cross Value Chain, Creative, Collaborative Teamfor BOEING – ROCKETDYNE’s mission
Rocket Engine Design
cost by 100 times Commercialize 10 times
Concept Designer
Combustion Analyst
Manufacturability Engineer
Lead Engineer
Thermal Analyst
CAD Specialist
Stress Analyst
Project Team Leader
Rocketdyne
Raytheon
MacNeal-Schwendler
In terms of complexity VC3 Teams >> Virtual Teams
• Emerging Design & Ever Changing tasks• Consistent need for Shared Understanding• Efficient use of Virtual Interaction Space • Non-rigidity in Role Definitions• Unconventional Communication Protocol
Collaborative platform – A snapshot
SLICE TEAM – SUCCESS STORY“Designed thrust chamber of rocket engine” in 10 months Feature Traditional stats SLICE engineered stats
Parts 1200 6 (200 fold decrease)
Manufacturing Cost 7 mil USD 0.5 mil USD(14 fold decrease)
Predicted Quality Level 6 sigma or 2-4 sigma 9 sigma
First Unit Production Cost 4.5 mil USD 47000 USD
Development Time 6 years 10 months
Data Gathering Tools – Ethnographic Observations, Panel Questionnaire Surveys, Interviews,Group Meetings, Weekly Logs etc
89 virtual meetings and 651 entries in internet notebook and Project Vault
Mgmt Practice 1 – Strategy Setting – Virtual Teaming Umbrella Agreement
Initiated by Senior Managers, Contract Managers and Program Managers of 3 companies well before the SLICE project
Continuous Ordering
AgreementProtection of intellectual
Property and Company’s
Confidential InformationAllocation of
LiabilitySpecification of
level of participation
Best practices sharingRequired Complimentary skills
Trust and consensusNo subdivisions created
Common budgetOpen sharing of ideas SLICE project
kickoff in days instead of
months due to this agreement
Mgmt practice 1
Mgmt Practice 2 - Collaborative technologies are KM technologies
Internet Notebook and Project Vault developed by third party company based on the project requirements
Internet Notebook
Project Vault
Other improvisations
•Secure access from any location•Create, Comment, Reference-link, Sort and hot-linking features
•Electronic whiteboard•Used for all communication and knowledge-sharing needs
•Secure common file storage•Transfer of large and small files•Single version of truth•Document Vault
•Adherence to Coordination Protocol•Face 2 face discussion -> Tech collaborations•Couple written documentation with oral communication
•Incomplete entries for in-depth discussion•Parallel work to complement contribution•Exclusive attention to meetings
Mgmt Practice 3 - Restructure Work without Changing Core Creative Needs
“Adopting to Virtual Collaboration”
Creative Need 1: Create a Shared Understanding
• Enhanced participation meant more productiveness
• Partial decentralization of lead engineer role
• Common language metaphor• Shared artifact- Matrix style
decision enabler tempalte
Creative Need 2: Engage in Frequent interaction
• Guarding against alienation• Virtual interaction with
notebook• Internet notebook became one
stop shop for file sharing, information sharing, proj mgmt plan, status reports, budgets, meeting agendas etc
• Focus on sharing and not completeness
Creative Need3: Rapidly create context-specific knowledge
• 20 designs over 40 weeks - 1 week shelf life
• Synergy by rapid contribution• Sharing of only high context
specific knowledge
Summary of How to Restructure Work with VC3 teams
Successful because work processes were changed to meet its core needs
Clear strategy was needed Lifespan of Strategy,
Technology and Work were different at different times
Implications for Practice
• Shared destiny with other organizations• Importance of global and knowledge
intensive competition• Transitioning from traditional mode of
collocated teams to VC3 teams• Formulation and structuring of inter-
organizational strategy and work process
Early Warning Signs
“Effective Handling of Warning Signals ensure the success of VC3 teams”
Implications for Research
• Conduct research on virtual teams in terms of innovativeness
• Scope for research in building KM systems as a collaborative platform facilitating – Distributed Cognition– Knowledge Capture– Knowledge Fusion– Knowledge Transfer
Effective Virtual Team Working
Takeaways from the Article• VC3 teams are new, exciting and cost-effective work form• Virtual team working is reliant on collaboration between
people• Focus on the need for future research on this type of virtual
teams• Critical Role of Knowledge Management in processes related
to innovation• Importance of careful planning before the start of any
project• The capacity to innovate and make life better is present in
each individual
QUESTIONS?
THANK YOU