Chapter 8 Introduction to Innovation-edit

8/8/2019 Chapter 8 Introduction to Innovation-edit

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INTRODUCTIONTO

INNOVATION


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Types of InnovationTypes of Innovation

Process InnovationProcess Innovation involves the

implementation of a new or

significantly improved production or

delivery method.


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Types of InnovationTypes of Innovation

Product InnovationProduct Innovation, involves the introduction of

a new good or service that is new or substantially

improved. This might include improvements infunctional characteristics, technical abilities, ease

of use, or any other dimension.

Service InnovationService Innovation, is similar to product

innovation except that the innovation relates to

services rather than to products


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Tools and techniques

The tools and techniques most commonly used in process improvement are:

Problem solving methodology, such as DRIVE Force field analysis Cause & effect diagrams Cause and Effect Diagram with the Addition of Cards

Brainstorming Lateral Thinking Six Thinking Hat SWOT Heterogeneous Groups Bench Marking Financial Intensive Provocation Architecture and Physical Layout Provocation


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DRIVE APPROACH

Definethe scope of the problem the criteria by which success will bemeasured and agree the deliverables and success factors

Review the current situation, understand the background, identify andcollect information, including performance, identify problem areas,

improvements and quick wins

Identifyimprovements or solutions to the problem, required changes toenable and sustain the improvements

Verify check that the improvements will bring about benefits that meet

the defined success criteria, priorities and pilot the improvements

Execute plan the implementation of the solutions and improvements,agree and implement them, plan a review, gather feedback and review


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Force Field Analysis

Force Field Analysis is a technique for identifying forces whichmay help or hinder achieving a change or improvement. Byassessing the forces that prevent making the change, plans canbe developed to overcome them. It is also important to identifythose forces that will help with the change.

Example the need to install POS system in food beverage


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Fishbone Diagram


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Fishbone orIshikawa Diagram

It is also a useful technique for opening up thinking inproblem solving.

The effect or problem being investigated is shown atthe end of a horizontal arrow;

Potential causes are then shown as labeled arrowsentering the main cause arrow

Each arrow may have other arrows entering it as the

principal causes or factors are reduced to their sub-

causes; Brainstorming can be effectively used to generate

the causes and sub-causes


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PRACTICAL FISHBONE


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Cause and Effect Diagram with the

Addition of Cards


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SWOT Analysis

SWOT analysis is a powerful tool for understanding yourStrengths and Weaknesses and for looking at the Opportunitiesand Threats you face.

It helps you to uncover opportunities that you are well placed totake advantage of. By uncovering the weaknesses of yourbusiness, you can manage and eliminate threats that wouldotherwise catch you unaware.

More than this, by looking at yourself and your competitorsusing the SWOT framework, you can start to craft a strategy thathelps you to distinguish yourself from your competitors, so that

you can compete successfully in your market

The SWOT analysis helps the business to focus on its strengths,minimize threats and take the greatest possible advantage ofopportunities available to your business.


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S = STRENGTH

Strengths in your company means theresources that the company has andthese include the physical assets like

plants and machinery, raw materials,funds and the human resources, the sizeof the market; and the intangibleresources like the skills, capabilities,

knowledge and experience of the peoplein the organization


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W = WEAKNESS

Weaknesses refer to what the

organization does not have but they are

needed for the successful operation of

the business.


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O = OPPORTUNITY

Opportunities refer to the markets

available in other places, the

technological changes that your

organization would like to have and theavailability of sources for the supply of

inputs.


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T = THREATHS

Threats relate very much to the

competitors, new entrants and substitute

producers in the external environment

and they compete with your company forthe same market.


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Heterogeneous Groups

Forming heterogeneous groups can enhance creativitybecause a diverse group brings various viewpoints tothe problem at hand. Key diversity factors includeprofessional discipline, job experiences and a variety

of demographic factors. Diverse groups encouragediverse thinking, which is the essence of creativity. Aculturally diverse group can be effective at developingcreative marketing ideas to appeal to a particularcultural group.


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Financial Incentives

In work settings, financial incentives are

likely to spur imaginative thinking. Such

incentives might include paying

employees for useful suggestions,paying scientists royalties for patents

that become commercially useful.

The 5 Ss


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Architecture and Physical Layout

Many companies restructure space to fire up

creativity, harness energy and enhance the

flow of knowledge and ideas. Any

configuration of the physical environment thatdecreases barriers to divergence, incubation

and convergence is likely to stimulate the flow

of creative thinking. The reasoning is that

creative thinking is more likely to be enhancedby cubicles rather than corner offices, by

elevators rather than escalators and by


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Four basic layout types

Fixed-position layoutservice restaurant

Cell layout buffet

Line

layoutcafeteria

Cool room

Freezer Vegetable preparationGrill

Preparation

Oven

Functional layout kitchen

Main coursebuffet

Starter

buffet

Desser

t

buffet

Service line


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The 5 Ss

Sort (Seiri) = Eliminate what is not needed and keep whatis needed.

Straighten (Seiton) = Position things in such a way that theycan be

easily reached whenever they are needed.

Shine (Seiso) = Keep things clean and tidy; no refuse or dirt in thework area.

Standardize (Seiketsu) = Maintain cleanliness and order

perpetual neatness.

Sustain (Shitsuke) = Develop a commitment and pride in keepingto standards.


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Provocation is an important lateral thinking technique that helps

to generate original starting points for creative thinking.

To use provocation, make a deliberately stupid comment relating

to the problem you are thinking about.

Then suspend judgment, and use the statement as the starting

point for generating ideas.

Often this approach will help you to generate completely new

concepts.

Provocation


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Provocation

Example:

The owner of a video-hire shop is looking at new ideas for

business to compete with the Internet. She starts with the

provocation 'Customers should not pay to borrow videos'.

The shop would need other revenue. Perhaps the owner couldsell advertising in the shop, or sell popcorn, sweets, bottles ofwine or pizzas to people borrowing films. This would make hershop a one-stop 'Night at home' shop. Perhaps it would only lendvideos to people who had absorbed a 30-second commercial, orcompleted a market research questionnaire.

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Chapter 8 Introduction to Innovation-edit

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