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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?
© 2013 Doblin; Deloitte Consulting LLP
6
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)
7
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
8
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
9
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
10
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.”
11
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
12
Deliver Optimum Value, Prevent Lifecycle Waste
-ilities, or Value Brothers
Wasteful -ings or Gremlins
The LEAN DESIGN EQUATION…“Optimize Strategic -ilities, Minimize Evil -ings”
13
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?
14
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?
15
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
16
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
17
Identify Opportunities
0123456789
10Performability
Affordability
Featureability
Deliverability
Integrateability
Repairability
Durability
Imageability
18
Maintain Differentiation…
01
23
45
6
7
8
9
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
20
Products & Services are becoming obsolete the minute they are introduced…
The Three Sharks ofMarketplaceTechnologyCompetition
are eating the value in our products, services & organizations…
21
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?
22
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
23
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
24
Measure the Evil –ings like the -ilities
25
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
26
Using the Cube to Brainstorm
For Any/ All of the Ten Areas to Innovate,
© 2013 Doblin; Deloitte Consulting LLP
28
There Are Generally Five “Opportunity Targets”
Functions
Materials
Parts
Processes
People
29
Apply Lean Design Tactics to the Targets
Functions
Materials
Parts
Processes
People
Sacrifice?Shrink?
Switch?
Divide?
Unify?
Re-Cycle?
Off-the-Shelf?
Plus Up?
30
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
31
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
32
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…
33
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)
Rank
35
Three Sharks ExerciseStep - 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?
36
Step - Now( )
Stretch - Tomorrow( )
Leap - Future( )
Marketplace
Technology
Competition
37
Setting Our Objectives…
What we are trying to accomplishWhy we want to accomplish itWhen (by what date) we have to implement
the plan
“If we don’t know where we’re going any road will take us there…”
38
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”.
39
What?
Why?
When?
40
Boundaries & 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
41
Boundaries Hurdles
42
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?
43
Customer DomainPrimary Values
Rating(1-10) Reasons Why
Performability
Affordability
Featureability
Deliverability
Usability
Maintainability
Durability
Imageability
44
Scoring the -ilitiesRating -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
45
…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 the 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?
46
Customer DomainPrimary Values
Rating(1-10) Reasons Why
Profitability
Investability
Riskability
Produceability
Marketability
Growthability
Leverageability
Respectability
47
Scoring the -ilitiesRating -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
48
Current State Mapping…
Customer I lities Performability
Affordability
Featureability
Deliverability
Integrateability
Repairability
Durability
Imageability
Current
Competitor
49
Customer DomainPrimary Values
Rating(1-10) Reasons Why
Performability
Affordability
Featureability
Deliverability
Usability
Maintainability
Durability
Imageability
50
Scoring the -ilitiesRating -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
51
Current State Mapping…
Customer I lities Performability
Affordability
Featureability
Deliverability
Integrateability
Repairability
Durability
Imageability
Current
Competitor
52
Does the Consumer Agree?Up until now, we have used our INTERNAL
assessments of the company and competition to generate our scores.
We must market-test these opinions to see if we are connected to reality.
Market SurveysTalking with the Customer and the Consumer“Communities of Interest”
53
Scoring the Evil –Ings…
• You don’t need to be in the design field to address the evil –Ings.
• Use the evil –Ings scoring system to let your product designers know where there are opportunities to fix current problems
• The evil –Ings spider chart becomes a way to communicate issues between manufacturing and design
54
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
55
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
56
The Seven Evils
Rating Why
Complexity
Precision
Variability
Sensitivity
Immaturity
Danger
High Skill
57
Evil - I ngs
0123456789
10Complexity
Precision
Variability
SensitivityImmaturity
Danger
High Skill
Current
Future
58
Future State Mapping…
Based on the information we now have, including the end-in-view, boundaries & hurdles, and three sharks, what does our future state look like?
In your groups, come to consensus about what one or two Customer –ilities you want to move and what single –ing you want to address.
59
Future State Mapping…
Customer I lities Performability
Affordability
Featureability
Deliverability
Integrateability
Repairability
Durability
Imageability
Current
Competitor
60
Future State MappingEvil - I ngs
0123456789
10Complexity
Precision
Variability
SensitivityImmaturity
Danger
High Skill
Current
Future
61
Targets and Tactics…
• These two or three items are now the Strategy input to our focused brainstorming
• Ask yourself – “What can I do to improve my –ility (or –ing) score from X to Y?”
• Use the 8 x 5 Matrix to drive your brainstorming
62
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
63
Functions Parts Materials Processes People
Sacrifice Solutions
Shrinkage Solutions
Switch Solutions
Division Solutions
Unity Solutions
Re-Cycle Solutions
Off-The-ShelfSolutions
Plus Up Solutions
64
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
65
Project Description 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FIX UP
Level of Innovation
Distant Future of 2014
LINE EXT. Incremental
NEW - WORLD (Disruptive)
NEW - ORG (Breakthrough)
LEAPIN' INTO 2013STEP UP 2011 STRETCH'D TO 2012
NEW MODEL FINISH/DESIGN
(Extension)
Rank
66
What Do I Do Next?
1. Market test your concepts2. Add your current design projects to the map3. Target “Step”, “Stretch” & “Leap” projects
for concurrent development4. Assess Resource Availability
Questions & Answers
4:11 Business Associates
On the way of wisdom I direct you,I lead you on straight paths.When you walk your step will not be impeded,And should you run, you will not stumble.Hold fast to instruction, never let it go;Keep it, for it is your life.Proverbs 4: 11- 13