ASQ Innovation Div Keathley wSNasq.org/innovation-group/2015/10/is-it-innovation-or...ASQ Innovation...

transcript

Is it Innovation or Improvement?

Jane KeathleyKeathley and Company

ASQ Innovation Division Conference2015

Objectives

• Explore the integrated roles of continuous improvement and innovation in maintaining high levels of organizational performance

• Identify models for balancing improvement and innovation initiatives within the organization, including risk-based and competitive analyses

Keathley and Company, LLC

Wearable Technology

‘For wearable technology to take off it must:

• Make life more convenient

• Easily fit into everyday life

• Look like something you’d want to be

seen wearing’Hayley Tsukayama, Washington Post, Feb 26 2014

Is it Innovation?

GPS ‘click heels’ shoes

Or Improvement?

…the world’s first fully functional pair of GPS shoes that will guide the wearer to any destination… The design of the shoes take the best of traditional craftsmanship and enhance it with a subtle addition of modern technology in the form of embedded GPS in the heel and mini LED lights within the traditional brogue shoe hole perforations.

You decide….

• GPS technology + shoes

• Concept of ‘wearable’ technology

• Cell phone and LED technology

All came together for a new product:

• First for lost children, then for lost seniors, then for multi-shoe use and

now for ‘destination’ walking

Is it Innovation or Improvement?

Apple Watch

You decide….

• First Pebble Steel models– Traditional appearance with big face

– Basic electronic information

• Email Sender name and subject line

– Supplements cell phone technology

– Expensive; doesn’t support popular social

media sites

• Later models addressed many of these shortcomings

Innovation – Working Definition

The conversion of new knowledge and information into products, processes,

and services that provide new value in

the marketplace

-ASQ Innovation Division

Types of Innovation

• Product and Services

• Process

• Business model

Continuous Improvement (CI)

The ongoing improvement of products, services or processes through incremental and breakthrough improvements.

-ASQ Website Glossary

Improve – to make or become better

-Oxford Dictionary

How are they different?

• People think innovation is…

…radical, disruptive, inventive

• People think improvement is…

…incremental, minor, imitative

• Are these perceptions accurate?

Deming’s Four Prongs of Quality

4. Innovation in Product and Service

3. Innovation in Process

1. Improvement of Existing Processes

2. Improvement of Existing Product

and Service

The Deming Dimension, H Neave, SPC Press 2000

Another way to look at it

Innovation; Science, Technology, + Culture

Kapsar, Jun 13 2011

Overlap

Innovation Both Improvement

Innovation Spectrum

• Breakthrough

– Disruptive innovation

– Breakthrough improvement

• Incremental

– Sustaining innovation

– Continuous improvement

• Improvement

Gray Zones

• First time ever available

– First time, second provider

– First time, second locality• Second time, another competitor

• Second time, another locality

– Nth time, nth provider, nth locality

Is it Innovation? You decide….

• Apple’s iPad– iPad 2

– Competitor tablets

• Android tablets

• Windows tablets

– Later Apple releases

• iPad Mini

– iPad Air

– iPad Mini (new)

• Competitors ‘minis’

Wearable technology

• Pebble

• Samsung and Sony

• Other vendors, including Apple

• Etc

Context of Innovation

• New to world

• New to industry/sector

• New to region/business

• New to organization

The Spectrum

• Recognize the ends of the spectrum (radical innovation and minor improvements) as well as the range of situations in between

• Black and white definitions result in endless debate and may not be useful

• Helpful to have a common conceptual understanding

New Terms?

Incrovation - incremental innovation or improvement

Radovation – entirely new way of doing

something; radical innovation

-Paul Sloane, British Quality Foundation

Managing Across the Spectrum

Need Improvement and Innovation

• Correcting problems and defects

• Preventing future problems

• Bringing in solutions from outside

• Creating new solutions

Finding Balance

• Competitive position

• Key product maturity

• Core competencies

• Improvement system

• Risk Tolerance

Integration into the Organization

• Numerous models

• Establish organization-wide culture

• Align with strategies

Tools to Manage the ‘I’ Spectrum

• Innovation Ambition Matrix

• Decision (Pugh) Matrix

• Value Factor Analyses

Innovation Ambition Matrix

Nagji, Bansi and Geoff Tuff. "Managing Your Innovation Portfolio." Harvard Business Review May

Decision (Pugh) Matrix

• Used to evaluate and prioritize a list of options

• Weighted criteria such as:

– Effectiveness

– Feasibility

– Capability

– Support

Decision matrix example

Value Factor Analyses

• Used to help estimate the customer value of a product or service and compare it to other options

Value Factor = Customer Benefits /

Customer Costs

In The End…

Ultimately, what matters most is finding the best balance of forward-looking initiatives for your organization and managing them effectively.

Pick the names that work best in your environment, use them consistently, and

move your organization ahead.

Innovation or Improvement?

ASQ Innovation Div Keathley wSNasq.org/innovation-group/2015/10/is-it-innovation-or...ASQ Innovation...

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