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Design for Innovation Design for Innovation Embedding best practice discipline in business The D esign forInnovation (D4I)Fram ework Sustainable Value Creation, Management and Innovation We help companies achieve better results by making better decisions Design for Innovation Ltd, 2009 1

Design for Innovation (D4I) Framework for Strategic Business Development

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Page 1: Design for Innovation (D4I) Framework for Strategic Business Development

Design for InnovationDesign for Innovation Embedding best practice discipline in business

The Design for Innovation (D4I) Framework

Sustainable Value Creation, Management

and I nnovation

We help companies achieve better results by making better decisions

Design for Innovation Ltd, 2009 1

Page 2: Design for Innovation (D4I) Framework for Strategic Business Development

US$500 billionUS$500 billion

GE Market Capitalization

US$13 billionUS$13 billion

20002000

Jack Welch steps down as CEO of GE

19819811

Jack Welch appointedas CEO of GE

Success story

Design for Innovation Ltd, 2009 2

Page 3: Design for Innovation (D4I) Framework for Strategic Business Development

Design for InnovationDesign for Innovation Embedding best practice discipline in business

1.1. The ability to learn more about our The ability to learn more about our customers faster than the competition.customers faster than the competition.

2.2. The ability to turn that learning into The ability to turn that learning into action faster than the competition.”action faster than the competition.”

“We have only two sources of competitive advantage:

SuccessStory Jack Welch said:

Design for Innovation Ltd, 2009 3

Page 4: Design for Innovation (D4I) Framework for Strategic Business Development

What you don’t know about your customers and your business may

be costing you millions!

For example:

technology,

product &

service

value-creation

urgent needs

For example:

The best

customer

solutions to

maximize your

customers’

profitability

For example:

Your business model is now obsolete, limiting your effectiveness and ability to achieve a sustainable competitive advantage

Design for Innovation Ltd, 2009 4

Page 5: Design for Innovation (D4I) Framework for Strategic Business Development

Design for InnovationDesign for Innovation Embedding best practice discipline in business

Design for Innovation Ltd, 2009 5

We see Innovation as THE Driver of Competitive AdvantageSystemic Approach to Innovation

BUSINESSinnovation

ORGANIZATIONALinnovation

PRODUCTinnovation

PROCESSinnovation

MARKETINGinnovation

TECHNOLOGYinnovation

STRATEGYinnovation

Page 6: Design for Innovation (D4I) Framework for Strategic Business Development

D4I Framework Summary

Design for Innovation Ltd, 2009 6

1. Where [are our stakeholders going]? Target key stakeholders’ unmet wants and needs.

2. What [do they need to get there]? Identify problems to solve and opportunities to realize, that leverage existing

resources and capabilities.

3. How [will they get there]? Generate solutions with inventive problem-solving, product ideation and innovation

tools.

4. How Well [can they get there]? Evaluate feasibility and value of alternative solutions from multiple perspectives.

5. When [will they get there]? Develop and execute an effective action plan for implementing solutions and

monitoring progress.

Page 7: Design for Innovation (D4I) Framework for Strategic Business Development

[1]STAKEHOLDER

WANTS & NEEDSFOR PROVIDINGCONTRIBUTIONS

[2]STRATEGIES TO

SATISFY KEYSTAKEHOLDER

WANTS & NEEDS

[3]CRITICAL

PROCESSESTO EXECUTESTRATEGIES

[4]CAPABILITES TO OPERATE & ENHANCEPROCESSES

[5]STAKEHOLDER

CONTRIBUTIONSTO SUSTAIN

CAPABILITIES

Target key stakeholders’ unmet wants

and needs

Design for Innovation Ltd, 2009 7

1. Where [are our stakeholders going]?

Page 8: Design for Innovation (D4I) Framework for Strategic Business Development

Design for Innovation Ltd, 2009 8

2. What [do they need to get there]? Identify problems to solve and opportunities to realize, that

leverage existing resources and capabilities.

Identifying Problems and Opportunities with your Stakeholders… including Business Patterns

1. Unexpected Successes

2. Unexpected Failures3. Unexpected

External Events4. Process

Weaknesses5. Industry / Market

Structure Changes

6. High-Growth Areas

7. Converging Technologies

8. Demographic Changes

9. Perception Changes

10. New Knowledge

Page 9: Design for Innovation (D4I) Framework for Strategic Business Development

Design for Innovation Ltd, 2009 9

Stakeholder Partnerships for Stakeholder-driven Innovation:Involve Your Stakeholders as Co-innovators

Board

Marketing

Leadership

R&D

Finance

Operations

StakeholdersSales

Purchasing

Page 10: Design for Innovation (D4I) Framework for Strategic Business Development

Business FocusBusiness Focus::Effectiveness –Effectiveness –

BusinessBusinessProactivityProactivity

Business FocusBusiness Focus::Efficiency – Efficiency – Business Business ResponsivenessResponsiveness

3. How [will they get there]? Generate solutions with inventive problem-solving, product

ideation and innovation tools.

101. 1.

Business Model IdeationBusiness Model Ideation

2.2.Business Model OptimizationBusiness Model Optimization

3.3.Customer Solution OptimizationCustomer Solution Optimization

4.4.SolutionSolution--driven Services driven Services

5.5.SolutionSolution--driven Productsdriven Products

6.6.Delivery ProcessesDelivery Processes

7.7.Technology EnablersTechnology Enablers

1. 1. Business Model IdeationBusiness Model Ideation

2.2.Business Model OptimizationBusiness Model Optimization

3.3.Customer Solution OptimizationCustomer Solution Optimization

4.4.SolutionSolution--driven Services driven Services

5.5.SolutionSolution--driven Productsdriven Products

6.6.Delivery ProcessesDelivery Processes

7.7.Technology EnablersTechnology Enablers

Page 11: Design for Innovation (D4I) Framework for Strategic Business Development

4. How Well [can they get there]? Evaluate feasibility and value of alternative solutions from

multiple perspectives.

Design for Innovation Ltd, 2009 11

Examine the Critical Factors:

1. Technical Factors2. Timing Factors3. Stability Factors4. Position Factors5. Growth Factors

6. Marketability Factors7. Production Factors8. Financial Factors9. Protection Factors10. Stakeholder Factors

Page 12: Design for Innovation (D4I) Framework for Strategic Business Development

Design for InnovationDesign for Innovation Embedding best practice discipline in business

Design for Innovation Ltd, 2009 12

Design for Innovation provides a simple yet deeply insightful frame of reference formaking better decisions and achieving better results by design, on a continuous basis

Stakeholder Perspectives Examined:

• Investors

• Customers

• Intermediaries

• Employees

• Suppliers

• Regulators

• Communities

• Pressure Groups

• Alliance Partners

• Other Stakeholders

Page 13: Design for Innovation (D4I) Framework for Strategic Business Development

5. When [will they get there]? Develop and execute an effective action plan for

implementing solutions and monitoring progress.

Design for Innovation Ltd, 2009 13

Stage- / Phase-Gate Project Management for Any Process (e.g.)

• Operating Processes:

– Develop Vision & Strategy– Design & Develop Products

& Services– Market & Sell Products &

Services– Deliver Products &

Services– Manage Customer Service

• Management & Support Processes:– Develop & Manage Human

Capital– Manage IT & Knowledge– Manage Financial Resources– Manage Environmental Health

& Safety– Manage External Relationships– Change Management

Page 14: Design for Innovation (D4I) Framework for Strategic Business Development

Design for InnovationDesign for Innovation Embedding best practice discipline in business

Design for Innovation Ltd, 2009 14

The D4I Framework Facilitates Value Creation, Management and Innovation

PlanningValue Creation

Value Impacts

Value Outcomes

Value Outputs

Value Drivers

Value Builders

Where are we going?

What can we use now?

Create new possibilities

Evaluate and select

Action and monitor

Page 15: Design for Innovation (D4I) Framework for Strategic Business Development

Design for InnovationDesign for Innovation Embedding best practice discipline in business

Primary Focus:Performance Improvement

Primary Focus:Customer Solutions

Primary Focus:Ideation & Innovation

Primary Focus:Project Management

Design for Innovation Ltd, 2009 15

D4I Framework Core Competencies

Where are our stakeholders

going?

What do they need to get

there?

How will they get there?

How well can they

get there?

When will they get there?

Page 16: Design for Innovation (D4I) Framework for Strategic Business Development

Design for Innovation Ltd, 2009 16

D4I Framework Tools & Resources1. Where [are our stakeholders going]?

Performance improvement audits & roadmaps Strategic planning workshops & seminars

2. What [do they need to get there]? Tools for maximizing existing & potential lifetime value of customers & prospects Customer-product interaction discovery workshops Business-Market-Customer opportunity discovery workshops Business-Market-Customer problem solving workshops

3. How [will they get there]? Inventive problem solving workshops & seminars Product ideation & innovation workshops Product-process-service innovation audits

4. How Well [can they get there]? Better decision making guides and tools Collaborative innovation capture, assessment & optimization

5. When [will they get there]? Process mapping and workflow optimization Stage-gate project management; and stage-gate product ideation & development Lean six sigma & design for six sigma tools & resources Tools & resources for facilitating collaboration & change management Market research and technology R&D Techno-economic analysis & modelling for business investments

Page 17: Design for Innovation (D4I) Framework for Strategic Business Development

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Page 18: Design for Innovation (D4I) Framework for Strategic Business Development

D4I Framework for Technology Innovation Management

Design for Innovation Ltd, 2009 18

1. Where [is the need]? What is the next winning technology to satisfy the potential or perceived market need?

2. What [is the problem definition]? Transform the need into a clearly defined problem, or a set of problems accompanied

by a list of various constraints.

3. How [will the problem be addressed]? Generate conceptual solutions to the problem(s) with TRIZ.

4. How Well [do the alternative solutions work]? Evaluate the concepts generated against various criteria, & select the most promising

ones for designing a prototype.

5. When [will the best solution be ready]? Develop the detailed design, determine the dimensions of all the components, specify

material requirements etc.

Page 19: Design for Innovation (D4I) Framework for Strategic Business Development

D4I Tools for Technology Innovation Management

• Problem analysis, definition & development audit:

– Level 1: Routine design problems – Level 2: Minor improvements– Level 3: Fundamental improvements– Level 4: Next generation technologies– Level 5: Pioneering discovery / invention

• Algorithm for Inventive Problem Solving (ARIZ)

• Laws of technological system evolution:– Tools for development of conceptual

designs– Tools for identification & development of

next-generation technologies• 76 Standard Solutions for fundamental

improvements to existing systems with Substance-Field Analysis:

– Improving the system with no or little change

– Improving the system by changing the system

– System transitions– Detection and measurement– Strategies for simplification & improvement

• 100s of Patterns of Invention (Operators) to:– Eliminate, reduce or prevent harmful effects– Provide alternative ways to obtain useful

effects– Resolve physical & other technical and non-

technical contradictions• 1,000s of scientific effects for supporting

Substance-Field Analysis, and discovering / enhancing ready-to-use, derived & insufficient resources:

– Fields: absorbing, accumulating, detecting, preventing, producing other fields & resources

– Substances: accumulating, combining, detect-ing, eliminating, forming, moving, changing phase, preserving, producing & separating other substances & resources

– Parameters: changing, decreasing, increasing, measuring, stabilizing other parameters & resources

• Access to and searching of US patents & patent applications, EP documents, Japan-ese abstracts, and WIPO (PCT) documents

• Access to and searching of 7,000+ detailed scientific & engineering encyclopedia topics

• 100s of searchable technical guidebooks

Design for Innovation Ltd, 2009 19

Page 20: Design for Innovation (D4I) Framework for Strategic Business Development

Design for InnovationDesign for Innovation Embedding best practice discipline in business

Companies we have worked with * Industrial Research Limited * National Institute of Water & Atmospheric Research * Meridian Energy * Orion Networks * IAG Insurance * MainPower * Coca Cola Amatil * Eastland Networks * General Cable New Zealand * Asia Pacific Economic Cooperation (APEC) * Canterbury Development Corporation * Ravensdown Fertiliser Cooperative * Canterprise, University of Canterbury * New Zealand Trade and Enterprise * Business Mentors New Zealand

* Rocky Mountain Institute, USA * Ideation International, USA * PD-Trak Solutions, USA

* Broken Hill Proprietary, Australia

* Centre for Exploitation of Science & Technology, UK * Department of Trade & Industry (DTI), UK * The Design Council, UK

* The European Commission (Belgium, Luxembourg)

* Mitsubishi Research Institute, Japan * Tokyo Electric Power Company, Japan

* McMer Corporation, Philippines

Design for Innovation Ltd, 2009 20

Page 21: Design for Innovation (D4I) Framework for Strategic Business Development

Design for InnovationDesign for Innovation Embedding best practice discipline in business

Design for Innovation Ltd, 2009 21

For further information contact:

Dr. Iain Sanders

Mobile: +64 (027) 356-6401Skype: iain.designforinnovation.comEmail: [email protected]

Web: http://www.designforinnovation.com