Innovation and Technology Managementjjs-sbw/static_files/2002/INCOSE02_ITM_Slides.pdf · Innovation and Technology Management Constraints - External Environment Functional Analysis,

Innovation and Technology Management

Joseph J. SimpsonJuly 31, 2002

© 2002 Joseph J. Simpson

2


Present a systematic approach to innovation and technology management using a generic systems engineering process.

Discuss differences between incremental and disruptive technologies.

Evaluate open source software technology as a disruptive technology.

Goals


3


Define Terms

Outline FRAT Process

Discuss:

Organization Research & Development Function

Product System Innovation

Environment System Innovation

New Technology Development and Innovation

Summary and Conclusions:The product and the product production process should be combined for evaluation -from both an innovation and a management perspective.

Overview


4


Define Terms


5


Technology:

“… the skill, knowledge, experience, body of scientific knowledge, tools, machines, computers, and equipment that are used in the design, production, and distribution of goods and services.”

Innovation:

“… the application of technological change to products and organizations.”

Define Terms


6


Constraints - External Environment

Functional Analysis,Requirements

Alternatives, Solution

Verification, Validation

Define problemWhat is the problem?Who needs to have it fixed?Why does it need to be fixed?

Determine WHAT is needed to fix problem What has to be done?How well does it have to be done?

Decide HOW to fix the problemWhat are various ways to do it?What way will you use to fix the problem, why?When done, is the original problem fixed?Has the best way been used to fix the problem?

Solve problem; provide solution to customer

A Problem Solving Meta Process

INPUTINPUTINPUT

WHATWHATWHAT

HOWHOWHOW

OUTPUTOUTPUTOUTPUT


7


Problem Statement

WHAT

TradableDerived

Requirements

HOW

INPUTConstraints

From ExternalEnvironment

OUTPUTSolutions /

SystemComplete

TestValidate/Verify

FunctionalAnalysis

AlternativesSolution /

Architecture

Meta Process in SE Notional Format


8


Architecture

A1 A2 A3

Architecture View

Requirement

R1 R2 R3

Requirement View

Test

T1 T2 T3

Test View

Function

F1 F2 F3

Function View

Any system must be expressed in four views

FRAT - System Views*

* Mar & Morais


9


Outline FRAT

Process


10

Innovation and Technology ManagementThe FRAT

Process Engine*

Constraints

DefineMission Needs

Define FunctionsThat Meet Needs

DefineRequirements

DevelopAlternatives

Regulators

CustomerReviews& Audits

Customer

Developer

Developer Goals &Objectives

Customer &Stakeholders

Customer &Developer

System Description generated for this level forms the Mission for the next level

SelectSolution

V & V

Developer

Developer

DevelopDecisionCriteria

* “FRAT – A Basic Framework for Systems Engineering,” Mar & Morais


11

Innovation and Technology ManagementFRAT Concepts

EnvironmentSystem

ProductSystem Organizational

Process System

Architecture

A1 A2 A3

Architecture View

Requirement

R1 R2 R3

Requirement View

Test

T1 T2 T3

Test View

Function

F1 F2 F3

Function View

FRAT System Views


Architecture

A1 A2 A3

Architecture View

Requirement

R1 R2 R3

Requirement View

Test

T1 T2 T3

Test View

Function

F1 F2 F3

Function View

FRAT System Views


Architecture

A1 A2 A3

Architecture View

Requirement

R1 R2 R3

Requirement View

Test

T1 T2 T3

Test View

Function

F1 F2 F3

Function View

FRAT System Views



12

Innovation and Technology ManagementValue Network

EnterpriseSystem

EnvironmentSystem

Enterprise A

Enterprise F

Enterprise B

Enterprise D

Enterprise E

Enterprise C

Consumes ResourcesProvides Product

Product System Process System

Constraints

DefineMission Needs


DefineRequirements

DevelopAlternatives

Goals &Objectives

SelectSolution

V & V


Constraints

DefineMission Needs


DefineRequirements

DevelopAlternatives

Goals &Objectives

SelectSolution

V & V


Constraints

DefineMission Needs


DefineRequirements

DevelopAlternatives

Goals &Objectives

SelectSolution

V & V


Constraints

DefineMission Needs


DefineRequirements

DevelopAlternatives

Goals &Objectives

SelectSolution

V & V


Constraints

DefineMission Needs


DefineRequirements

DevelopAlternatives

Goals &Objectives

SelectSolution

V & V


Constraints

DefineMission Needs


DefineRequirements

DevelopAlternatives

Goals &Objectives

SelectSolution

V & V


Generic Enterprise is Composed of


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Innovation and Technology ManagementProduct Architecture

ComputerSystem

Motherboard CPUCase

ProcessingUnit

PowerSupply I/O Cards Disk

Drives

Software Peripherals


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Innovation and Technology ManagementOrganizational Architecture

Prod

uct T

eam

Man

ager

s

Engineering Sales &Marketing

ProductDesign

Research &Development Manufacturing

FunctionalManagers

ProductTeam A

ProductTeam B

ProductTeam C

ProductTeam D

CEO

Two-boss employee Product Teams

Adapted from Contemporary Management, GR Jones, JM George, CWL Hill, 2000


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A. Organizational System -

Research and Development

Approach

ProductArchitecture

Organizational Architecture

ComputerSystem

Motherboard CPUCase

ProcessingUnit


Drives



ProductDesign

Research &Development

Manu-facturing

FunctionalManagers

ProductTeam A

ProductTeam B

ProductTeam C

ProductTeam D

CEO

Two-boss employee Product TeamsPr

oduc

t Tea

mM

anag

ers

Generic Enterprise Architecture

The Smart Organization, creating value through strategic R&D, by Matheson, David and

Matheson, Jim addresses


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1. Maintain a value creation culture2. Develop decision alternatives3. Commitment to continual

learning4. Embrace uncertainty5. Maintain an outside-in

perspective6. Use systems thinking7. Ensure open information flow8. Achieve alignment and

empowerment9. Institute disciplined decision-

making

Organizational Principles for R&D

The Process Flowfor Each Level

Constraints

DefineMission Needs


DefineRequirements

DevelopAlternatives

Regulators


Customer

Developer



Customer &Developer



SelectSolution

V & V

Developer

Developer


Organizational System Functions & Reqts

The principles cluster aroundthe functions and

requirements areaswithin the process flow


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Innovation and Technology ManagementDecisionQuality*

50100

Creative, Doable

Alternative

Meaningful, Reliable Information

Clear Valuesand Trade-Offs

Logically Correct

Reasoning

Commitmentto Action

Appropriate Frame

Decision ADecision B

0

* The Smart Organization, creating value through strategic R&D, Matheson and Matheson


20



Constraints

DefineMission Needs


DefineRequirements

DevelopAlternatives

Regulators


Customer

Developer



Customer &Developer



SelectSolution

V & V

Developer

Developer


Organizational Decision Quality

The decisions cluster aroundthe goals, objectives and

decision criteria withinthe process flow

These decision quality metrics are applied primarily to the research and development function of the enterprise


19

Innovation and Technology ManagementDecisionQuality*

50100

Creative, Doable

Alternative

Meaningful, Reliable Information

Clear Valuesand Trade-Offs

Logically Correct

Reasoning

Commitmentto Action

Appropriate Frame

Decision ADecision B

0

* The Smart Organization, creating value through strategic R&D, Matheson and Matheson


21


B. Product System

Innovation Management

ProductArchitecture

Organizational Architecture

ComputerSystem

Motherboard CPUCase

ProcessingUnit


Drives



ProductDesign

Research &Development

Manu-facturing

FunctionalManagers

ProductTeam A

ProductTeam B

ProductTeam C

ProductTeam D

CEO

Two-boss employee Product TeamsPr

oduc

t Tea

mM

anag

ers

Generic Enterprise Architecture

The Innovators Dilemma by Clayton M. Christensen addresses


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Established companies lead in the incorporation of incremental technology into their products, almost 100 percent of the time.

Disruptive technology is not often successfully deployed by market leading firms.

Example Product Systems That Incorporated Both Types• Steel Milling and Production• Mechanical Excavator• Disk Drive• Motorcycle

Open Source Software is offered as a recent example of a disruptive technology

Two Technology Types: Incremental / Disruptive*

* The Innovators Dilemma by Clayton M. Christensen


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The innovation enables less-skilled or less-wealthy customers to do for themselves things that only the wealthy or skilled intermediaries could previously do

The innovation targets customers at the low end of a market who don’t need all of the functionality of current products; the business model enables the disruptive innovator to earn attractive returns at discount pricesunattractive to the incumbents

Disruptive Technology Characteristics


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• Free distribution of source code

• Ability to modify code and redistribute

• Ability for anyone to participate

• Product freely available on internet

• Provide basis for new business models

• Encourages rapid code improvement

• Serves the needs of many customers

Open Source Disruptors

Product System Values & Distribution Rights


Constraints

DefineMission Needs


DefineRequirements

DevelopAlternatives

Regulators


Customer

Developer



Customer &Developer



SelectSolution

V & V

Developer

Developer


The disruptors cluster around the goals, objectives,

decision values &criteria within the

process flow


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C. Environment

System Innovation

Management


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Innovation and Technology ManagementThe System Boundary

Constraints

DefineMission Needs


DefineRequirements

DevelopAlternatives

Regulators


Customer

Developer



Customer &Developer


SelectSolution

V & V

Developer

Developer


* “FRAT – A Basic Framework for Systems Engineering,” Mar & Morais


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Innovation and Technology ManagementDisruptive Network: No Common Customers

EnterpriseSystem

EnvironmentSystem

Enterprise A

Enterprise F

Enterprise B

Enterprise D

Enterprise E

Enterprise C


Enterprise 1

Enterprise 2


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Innovation and Technology ManagementDisruptive Network: Some Common Customers

EnterpriseSystem

EnvironmentSystem

Enterprise A

Enterprise F

Enterprise B

Enterprise D

Enterprise E

Enterprise C


Enterprise 1

Enterprise 2


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EnterpriseSystem

EnvironmentSystem

Enterprise A

Enterprise F

Enterprise B

Enterprise D

Enterprise E

Enterprise C


Enterprise 1

Enterprise 2


31


EnterpriseSystem

EnvironmentSystem

Enterprise A

Enterprise F

Enterprise B

Enterprise D

Enterprise E

Enterprise C


Enterprise 1

Enterprise 2


32

Innovation and Technology ManagementDisruptive Network: All Disruptive Customers

EnterpriseSystem

EnvironmentSystem

Enterprise A

Enterprise F

Enterprise B

Enterprise D

Enterprise E

Enterprise C


Enterprise 1

Enterprise 2


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New Technology Development and

Innovation Management


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Research by Sampathkumar, Clausing, Schultz and Fricke clearly separated technology development from product development

Three independent concurrent activities frame innovation• Incremental development of new technology• Incremental development of new applications• Incremental development of new products

Radical technology innovation is introduced in the technology stream and can either be used (1) to continue technology development, or (2) to create a radically new application area. The new application area can generate radically new products.

Role of New Technology Developmentin New Product Development


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Innovation and Technology ManagementThe Flow of Innovation*

Technology Stream

Application Stream

Product Stream

t

Product(System)

Incremental(sustaining)


Fundamentallynew (radical)New

Technology

Fundamentallynew (radical)

Application

Alternatively Alternatively

* Adapted from Sampathkumar, et.al.


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Measures for Technology “Newness”• Functional structure and logic• Physics used to implement new function

Measures for Technology Application “Newness”• Unanticipated benefits• Required amount of learning

If the main product function uses a new technology, and the performance characteristics are different, then this is deemed aradically new technology application.

“Newness” and Radically New Application

* Sampathkumar, et.al.


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Open Source Software Technology Evaluation• Function and logic are the same as closed source technology• Physics are the same as closed source technology• Anticipated benefits are great• Required amount of learning and operational change is small.

Given this “product evaluation,” open source software may not be a radical new disruptive technology. When the process system thatdevelops the software is evaluated, then the disruptive nature of open source technology can be clearly determined.

Both the product system and the process system innovation activities associated with open source software need to be evaluated to completely understand the disruptive nature of these products

Open Source Software


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Open Source Software (IBM)Technology

StreamApplication

StreamProduct Stream

t

Product(System)




Technology


Application


Services

Hardware

Software

Services

Hardware

Software

Services

Hardware

Software


39


Open Source Software (Sun)Technology

StreamApplication


t

Product(System)




Technology


Application


Hardware

SoftwareHardware

SoftwareHardware

Software


40


Open Source Software (MS)Technology

StreamApplication


t

Product(System)




Technology


Application


SoftwareSoftwareSoftware


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Summary and

Conclusions


42


Innovation and technology management requires a combined coherent focus on both the product and the process that develops the product.

Systems engineering processes and principles provide a logical framework for evaluation and management of innovation and technology of all types.

The product and the product production process should be combined - from both an innovation and a management perspective. Process innovation is as important as product innovation in the open source software domain.

Summary and Conclusions

Disruptive technologies provide great advantages to an enterprise.

Documents

Innovation and Technology Managementjjs-sbw/static_files/2002/INCOSE02_ITM_Slides.pdf · Innovation and Technology Management Constraints - External Environment Functional Analysis,