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Innovating today for better tomorrow
Innovating by building capability using TRIZ
Prashant Y. Joglekar
http://innovationnukkad.blgspot.com
www.twitter.com/ideabound
On Facebook & Twitter Find Me
“Prashant Yeshwant Joglekar”
Presentation Flow
• Innovation Imperative
• Innovation Tiers, Types and Territory
• Introduction to Systematic Innovation
• Proposed Next Steps for Organization
1/30/2014 2
Presentation Flow
• Innovation Imperative
• Innovation Tiers, Types and Territory
• Introduction to Systematic Innovation
• Proposed Next Steps for Organisation
1/30/2014 3
Every Business Likes Arnold Schwarzenegger
Strong Healthy Top Line
( Revenue)
Controlled Waste Line
( Cost )
Strong Healthy Profit Foundation
( Profit)
: 1/30/2014 4
Balanced Score Card – Looking at Business Holistically
Source : SAS, Balance Score Card 1/30/2014 5
Innovation – Shortest Definition
INNOVATION = Successful Step Change = Positive ROI & Profit
1/30/2014 6
System Hits The Limit
: 1/30/2014 7
We are Doing Fine – Why We Need to Innovate ( Litmus Test )
Parameters of
Measurement
More Demanding Innovation
Environment
( + 5 Points)
Neutral
( 0 Points)
Less Demanding innovation
environment
( - 5 points)
Ex
tern
al E
nvir
on
me
nt
Industry
Maturity
Highly mature market showing
signs of communization
Market beginning to show
signs of maturity
Nascent market with unclear
business models
Competitive
Dynamics
Fast-moving industry and /or
industry with short product life
cycles
Moderately changing industry
( e.g. Automobiles)
Slow-moving industry where
change rarely occurs
( e.g. steel)
Asset
Intensity
Very High; innovation requires
major capital equipment
( e.g. pharmaceuticals)
Moderate; innovation possible
with less capable equipment
( e.g. Consumer Goods)
Low; innovation possible with
little to no investment
(e.g. media)
Inte
rna
l e
nvir
on
me
nt
Scope of
Innovation
Activities
Innovation possible only with
close coordination across
business units, functions and
regions
Innovation able to be isolated
within a single business unit
with coordination across
functions
Innovation possible in
separate pockets of the
organization with minimal
coordination
Innovation
culture
Company in ‘operational’
mode, with innovation viewed
largely as distraction
Innovation understood to be
important, but not something
that is everyone’s
responsibility
Entrepreneurial culture, where
innovation is a core part of the
company DNA
Breadth of
Talent
< 10 % of employees capable
of delivering legitimately
disruptive ideas
10-30 % of employees capable
of developing legitimately
disruptive ideas
> 30 % of employees capable
of developing legitimately
disruptive ideas
Source : Innovator’s Guide To Growth , SCOT ANTHONY , Harvard Business Press 1/30/2014 8
Assessing Innovation Environment of a Commodity Business
Parameters of
Measurement
More Demanding Innovation
Environment
( + 5 Points)
Neutral
( 0 Points)
Less Demanding innovation
environment
( - 5 points)
Ex
tern
al E
nvir
on
me
nt
Industry
Maturity
Highly mature market showing
signs of commoditization
Market beginning to show
signs of maturity
Nascent market with unclear
business models
Competitive
Dynamics
Fast-moving industry and /or
industry with short product life
cycles
Moderately changing industry
( e.g. Automobiles)
Slow-moving industry where
change rarely occurs
( e.g. steel)
Asset
Intensity
Very High; innovation requires
major capital equipment
( e.g. pharmaceuticals)
Moderate; innovation possible
with less capable equipment
( e.g. Consumer Goods)
Low; innovation possible with
little to no investment
(e.g. media)
Inte
rna
l e
nvir
on
me
nt
Scope of
Innovation
Activities
Innovation possible only with
close coordination across
business units, functions and
regions
Innovation able to be isolated
within a single business unit
with coordination across
functions
Innovation possible in
separate pockets of the
organization with minimal
coordination
Innovation
culture
Company in ‘operational’
mode, with innovation viewed
largely as distraction
Innovation understood to be
important, but not something
that is everyone’s
responsibility
Entrepreneurial culture, where
innovation is a core part of the
company DNA
Breadth of
Talent
< 10 % of employees capable
of delivering legitimately
disruptive ideas
10-30 % of employees capable
of developing legitimately
disruptive ideas
> 30 % of employees capable
of developing legitimately
disruptive ideas
Source : Innovator’s Guide To Growth , SCOT ANTHONY , Harvard Business Press
: 1/30/2014 9
Organization's Approach to Innovation based on assessment
Scoring Organization’s Approach
20 to 30 Very Demanding Innovation Environment : In these settings, there is likely need for greater
resource allocation, more structured approaches to innovation, more significant senior
management guidance and overall organizational autonomy for selected innovation units
10 to 15 Moderately demanding innovation environment : In these contexts, circumstances suggest
focusing on one or two key aspects of company’s environment. Significant hands-on
management may be required to overcome internal challenges, and /or well-defined structure and
process may be needed to foster rapid innovation while effectively managing potential risks
-15 to 5 Less Demanding Innovation Environment : Here, focused innovation efforts can be carried out
with limited need for direction from senior leaders and minimal investment. Market conditions
and the personnel in the organization likely enable a more flexible and slower paced approach to
Innovation.
-30 to -20 Naturally innovative environment : Innovation in these settings tends to be inherent in the core
culture. Innovation efforts can be thus be well integrated with the main lines of business and can
occur as a natural part of doing business. In these environments, it is important not to over direct
or stifle innovation through excessive structure.
Source : Innovator’s Guide To Growth , SCOT ANTHONY , Harvard Business Press
: 1/30/2014 10
Organization's Approach to Innovation based on assessment
Scoring Innovation Strategy
20 to 30 Very Demanding Innovation Environment : In these settings, there is
likely need for greater resource allocation, more structured approaches
to innovation, more significant senior management guidance and overall
organizational autonomy for selected innovation units
10 to 15 Moderately demanding innovation environment : In these contexts, circumstances suggest
focusing on one or two key aspects of company’s environment. Significant hands-on
management may be required to overcome internal challenges, and /or well-defined structure
and process may be needed to foster rapid innovation while effectively managing potential risks
-15 to 5 Less Demanding Innovation Environment : Here, focused innovation efforts can be carried out
with limited need for direction from senior leaders and minimal investment. Market conditions
and the personnel in the organization likely enable a more flexible and slower paced approach to
Innovation.
-30 to -20 Naturally innovative environment : Innovation in these settings tends to be inherent in the core
culture. Innovation efforts can be thus be well integrated with the main lines of business and can
occur as a natural part of doing business. In these environments, it is important not to over
direct or stifle innovation through excessive structure.
Source : Innovator’s Guide To Growth , SCOT ANTHONY , Harvard Business Press
: 1/30/2014 11
Presentation Flow
• Innovation Imperative
• Innovation Tiers, Types and Territory
• Introduction to Systematic Innovation
• Proposed Next Steps for Organisation
1/30/2014 12
The Innovation Stack
Management Innovation
( ‘Work’ Different for e.g. 3M)
Strategic Innovation
( ‘Sell’ Different, ‘Southwest’)
Product / Service Innovation
(‘make’ different, Apple)
Operational Innovation
(‘make’ better e.g. TOYOTA)
Source : The Future of Management By GARY HAMEL , Harvard Business Press 1/30/2014 13
Innovation Territory – Business Model Landscape
Key Partners
• Strategic
alliance
• Cooperation
between
competitors
• Joint
ventures
• Buyer-
Supplier
• Customer-
provider
Key Processes
• Operating Processes
( Sales and
Marketing,
Production,
Maintenance, R & D,
Logistics etc.)
• Support Processes (
HR, IT,
Administration)
Value Proposition
• Newness
• Performance
• Customization
• Getting the job
done
• Design
• Brand/Status
• Price
• Cost Reduction
• Risk reduction
• Accessibility
• Convenience /
Usability
Customer Relationship
• Personal assistance
• Dedicated personal
assistance
• Self-service
• Automated Service
• Communities
• Co-creation
Customer
Segments
• Mass Market
• Niche Market
• Segmented
• Diversified
• Multi-sided
platform
Key Resources
• Physical
• Intellectual
• Human
• Financial
Channels
• Sales Force
• Web Sales
• Own Stores
• Partner Stores
• Wholesaler
Cost Structure
• Cost Driven ( Southwest)
• Value Driven ( Luxury Hotels)
Revenue Streams & Pricing Mechanisms
• Selling Products
• Usage Fee
• Subscription Fees
• Lending / Renting / Leasing
• Licensing
• Brokerage Fees
• Advertising
Source : Business Model Generation, Alexander Osterwalder, WILEY & SONS 1/30/2014 14
Innovation HOT SPOTS – 12 Ways To Innovate
Dimension Definition Examples Business Model
Element
Offerings Develop innovative new
products or services
• Gillette Mach 3 Turbo, Fusion Razor
• Apple i-pod music player and I Tunes
music service
Value Proposition
Platform Use common components or
building blocks to create
derivative offerings
• General Motors OnStar telematics
platform
• Disney animated movies
Key Resources +
Offering
Solution Create integrated and
customized offerings that solve
end-to-end customer problems
• UPS logistic services Supply Chain
Solutions
• DuPont building innovations for
construction
Value Proposition +
Offering
Customers Discover unmet customer or
identify underserved customer
segments
• Meru Cab
• ACT –II POPCORNS
Customer relationship
+ Value Proposition
Customer
Experience
Redesign customer interactions
across all touch points and all
moments of contact
• BOOK My show ( IPL Tickets, Stadium
View)
• Net-banking
Customer
relationships + Cost
Structure + Value
proposition
Value
Capture
Redefine how company gets
paid or create innovative new
revenue streams
• Steel service centers
Customer
relationship+ Revenue
Streams
Processes Redesign core operating
processes to improve efficiency
& effectiveness
• Toyota Production Systems
• GE’s SIX SIGMA Processes
Core processes + Cost
Structure
Source : “12 Ways To Innovate . Mohanbir Sawhney, Kellogg School of Management 1/30/2014 15
12 Ways to Innovate
Dimension Definition Examples Business Model
Element
Organization Change form, function or
activity scope of the firm
• TOYOTA LEXUS Luxury Car Customer Segments +
Revenue Streams
Supply Chain Think differently about sourcing
and fulfillment
• ITC e-chaupal Key Resources +
Partnership + Cost
Structure + Value
Proposition
Presence Create new distribution
channels or innovative point of
presence, including the places
where offerings can be bought
or used by customers
• Starbucks music CD sales in coffee
stores
Channel
Networking Create network centric
intelligent and integrated
offerings
• OTIS remote elevator monitoring
service
Partners
Brand Leverage a brand into new
domains
• Apple, Janguar Customer Segment,
Customer Relationship
Source : “12 Ways To Innovate . Mohanbir Sawhney, Kellogg School of Management 1/30/2014 16
Presentation Flow
• Innovation Imperative
• Innovation Tiers, Types and Territory
• Introduction to Systematic Innovation
• Proposed Next Steps for Organisation
1/30/2014 17
Challenges to Innovate : External Barriers For Large Firms
1/30/2014 Source : National Knowledge Commission, Govt of India Report 2007 18
Challenges to Innovate : Internal Barriers for Large Firms
1/30/2014 Source : National Knowledge Commission, Govt of India Report 2007
: 19
Solution : Special Skill Building Programs + Structure
1/30/2014 Source : National Knowledge Commission, Govt of India Report 2007
20
Can I be Innovative ???
• But Innovation is Confined to Few Intelligent Men ??
No
• So can I be Innovative ??
Yes
• How can that be possible ?? This was never a subject in my
curriculum
Don’t Loose Hope
• How can I learn to Innovate now? Is there a systematic way of
learning it?
Yes, Yes, Yes ……
1/30/2014 Source : 21
1/30/2014 Source : 22
TRIZ alias Systematic Innovation
Father & Propagator of Systematic Innovation (TRIZ)
1/30/2014 Source : 23
Systematic Innovation – Distilling World’s Best Knowledge
Patents
Science ‘psychology’
Business Because we spent the
last 12 years studying
innovations from the
last 100 years:
~3000 management texts
published per year
~7500 academic/trade
journals in circulation
~ > 400,000 patents granted
‘Breakthrough’
Database
Source : 1/30/2014 24
TRIZ and It’s Brief History
1. Problems and Solutions were repeated across industries and
Sciences ( Someone Somewhere Has Already Solved a
Problem Similar Like Mine)
2. Patterns of technical evolution were repeated across industries
and sciences
3. Innovations used scientific effects outside the field where they
were developed
1/30/2014 Source : 25
Innovation Levels
Level 1 Routine design problems solved by methods well known within
the specialty. Usually no invention needed. example: use of
‘coal’ for writing
Level 2 Minor improvements to an existing system using methods known
within the industry. example: ‘Graphite Pencil’ (wrapped coal
stick)
Level 3 Fundamental improvement to an existing system using methods
known outside the industry. example: Ink Pen (ink instead of
coal)
Level 4 A new generation of a system that entails a new principle for
performing the system's primary functions. Solutions are found
more often in science than technology. Example Printer (another
whole system for writing)
Level 5 A rare scientific discovery or pioneering invention of an
essentially new system. example: electronic Pen & Paper
1/30/2014 Source : 26
Systematic Innovation Cycle
My Problem
Generic problem set Generic solution set
My Solution
Source : 1/30/2014 27
Problem is nothing but the gap between “What We Want”
and “What We Have”.
-Edward De Bono
“The significant problems we face cannot be solved at the
same level of thinking we were at when we created them”
-Albert Einstein
Innovation is Solving Problem Recognized / Unrecognized
Source : 1/30/2014 28
Five Pillars of Breakthrough Methodology
1/30/2014 Source : 29
IDEALITY
1/30/2014 Source : 30
Ideality Cone
1/30/2014 Source : 31
IDEAL FINAL RESULT – Deployment Philosophy
1/30/2014 Source : 32
CONTRADICTIONS
1/30/2014 Source : 33
COCA COLA CAN EVOLUTION
1/30/2014 Source : 34
Principle 17 : Another
Dimension
OIL SPILL Problem
1/30/2014 Source : Are you solving the right problem : Dwayne Spradlin, HBR September 2012 : 35
Parameter We Are Trying To Improve
STABILITY ( Matrix Parameter 21)
Parameter That Prevents Us from
Improving
Temperature ( Matrix Parameter 22)
Inventive Principles
35 – Parameter Changes
40 – Composite Material
03- Local Quality
01- Segmentation
18 – Mechanical Vibration 24 - Intermediary
My Problem Is So Unique….
1/30/2014 Source : 36
Someone Somewhere Has Solved Problem Like Yours
1/30/2014 Source : 37
TRENDS of EVOLUTION
1/30/2014 Source : 38
Trends of Evolution
1/30/2014 Source : 39
How to Read The Plots
1/30/2014 Source : 40
Trend List
1/30/2014 Source : 41
PIZZA BOX – System Evolution
1/30/2014 Source : 42
Business Implication
= 14 Mn USD
Application of TRENDS of EVOLUTION
1/30/2014 Source : 43
Business Trend : Customer Experience Trend
Commodity Product Service Experience Transformation
1/30/2014 Source : 44
DATA - Information - Knowledge - Wisdom
Data Information Knowledge WISDOM
1/30/2014 Source : 45
FUNCTIONALITY
1/30/2014 Source : 46
Remove Water From GLASS
1/30/2014 Source : 47
http://function.creax.com/
1/30/2014 Source : 48
Resources
1/30/2014 Source : 49
Tool Map
Divergent Convergent Divergent Convergent
Ideal Final Result /
Attribute
Function & Attribute
Analysis
Resources
Evoplot Analysis
Why & What’s Stopping
Analysis
Size- Time-Interface-Cost
QFD
Spiral Dynamics
S-Field Analysis
Smart-Little People
S-Curve Analysis
Subversion Analysis
Constraint Mapping
Root Cause Analysis
Root Contradiction
Analysis
Root Contradictions
Contradiction Matrix
Inventive Standards
Inventive Principles
Trends
Trimming
De-BONO
SCAMPER
Oblique Strategies
Multi Criteria Decision
Analysis
Perception Mapping
Omega Life Views
Red Team Analysis
Kepner-Tregoe
Function Data Base
Patent Data Base
Problem Definition Solution Generation
Source : Hands On Systematic Innovation , IFR Press, UK 1/30/2014 50
Source : 1/30/2014 51
Companions of Process Excellence
Systematic Innovation –
Technical
Systematic Innovation –
Business
& Management
Systematic Innovation –
Software
Breaking Psychological Inertia
Latest Research
On Contradictions
trenDNA – Understanding Populations
Better Than They Understand Themselves
Source : 1/30/2014 52
Presentation Flow
• Innovation Imperative
• Innovation Tiers, Types and Territory
• Introduction to Systematic Innovation
• Proposed Next Steps for an organisation
Source : 1/30/2014 53
TRIZ Propagation at SAMSUNG
Source : 1/30/2014 54
My Value Proposition
1/30/2014 Source : 55
1. Systematic Innovation Workshops for Technical / Business / IT
domains
2. Learning deployment by solving problems in hand
3. Specific Business Outcome Driven Innovation Project
4. Product / Process Driven Transformation
5. Mapping innovation landscape for an organization to drive
innovation agenda more inclusively
Innovation Maturity Journey
Maturity Stage
Journey
What Do We Do Here
SEEDING
CHAMPIONING
MANAGING
STRATEGISING
VENTURING
Source : 1/30/2014 56
Innovation Maturity Journey - Seeding
Maturity Stage
Journey
What Do We Do Here
SEEDING In this phase it is best to achieve a small scale success as not many would want
to disrupt an organization that seems to be working well. The key is some
success than scale.
CHAMPIONING The primary aim during this stage is to achieve a broad acceptance across organization
that innovation is a key business process rather than an ethereal, high-risk enemy. Here
quantifying the improvements is essential.
MANAGING This phase is little tricky, as due to initial success there are many who wants to jump the
bandwagon. In this phase search needs to be for the people who are passionate and
want to bring about the change. This phase has to be managed delicately, else there will
be more presentations & no work
STRATEGISING There is going to be someone with full-time responsibilities for innovation within the
team. This is the stage where the team members need to develop new skills such as
scenario planning, story-telling. People are beginning to see central innovation team as
‘the place to be’ for the best chances of career progression.
VENTURING Here the organizations venture into different areas of business those are not relevant to
their so called core. Here the organization has self-adapting management structures and
teams.
Source : 1/30/2014 57
Innovation Maturity Journey - Championing
Maturity Stage
Journey
What Do We Do Here
SEEDING In this phase it is best to achieve a small scale success as not many would want to
disrupt an organization that seems to be working well. The key is some success than
scale.
CHAMPIONING The primary aim during this stage is to achieve a broad acceptance across
organization that innovation is a key business process rather than an ethereal,
high-risk enemy. Here quantifying the improvements is essential.
MANAGING This phase is little tricky, as due to initial success there are many who wants to jump the
bandwagon. In this phase search needs to be for the people who are passionate and
want to bring about the change. This phase has to be managed delicately, else there will
be more presentations & no work
STRATEGISING There is going to be someone with full-time responsibilities for innovation within the
team. This is the stage where the team members need to develop new skills such as
scenario planning, story-telling. People are beginning to see central innovation team as
‘the place to be’ for the best chances of career progression.
VENTURING Here the organizations venture into different areas of business those are not relevant to
their so called core. Here the organization has self-adapting management structures and
teams.
Source : 1/30/2014 58
Innovation Maturity Journey - Managing
Maturity Stage
Journey
What Do We Do Here
SEEDING In this phase it is best to achieve a small scale success as not many would want to
disrupt an organization that seems to be working well. The key is some success than
scale.
CHAMPIONING The primary aim during this stage is to achieve a broad acceptance across organization
that innovation is a key business process rather than an ethereal, high-risk enemy. Here
quantifying the improvements is essential.
MANAGING This phase is little tricky, as due to initial success there are many who wants to
jump the bandwagon. In this phase search needs to be for the people who are
passionate and want to bring about the change. This phase has to be managed
delicately, else there will be more presentations & no work
STRATEGISING There is going to be someone with full-time responsibilities for innovation within the
team. This is the stage where the team members need to develop new skills such as
scenario planning, story-telling. People are beginning to see central innovation team as
‘the place to be’ for the best chances of career progression.
VENTURING Here the organizations venture into different areas of business those are not relevant to
their so called core. Here the organization has self-adapting management structures and
teams.
Source : 1/30/2014 59
Innovation Maturity Journey - Strategizing
Maturity Stage
Journey
What Do We Do Here
SEEDING In this phase it is best to achieve a small scale success as not many would want to
disrupt an organization that seems to be working well. The key is some success than
scale.
CHAMPIONING The primary aim during this stage is to achieve a broad acceptance across organization
that innovation is a key business process rather than an ethereal, high-risk enemy. Here
quantifying the improvements is essential.
MANAGING This phase is little tricky, as due to initial success there are many who wants to jump the
bandwagon. In this phase search needs to be for the people who are passionate and
want to bring about the change. This phase has to be managed delicately, else there will
be more presentations & no work
STRATEGISING There is going to be someone with full-time responsibilities for innovation within
the team. This is the stage where the team members need to develop new skills
such as scenario planning, story-telling. People are beginning to see central
innovation team as ‘the place to be’ for the best chances of career progression.
VENTURING Here the organizations venture into different areas of business those are not relevant to
their so called core. Here the organization has self-adapting management structures and
teams.
Source : 1/30/2014 60
Innovation Maturity Journey - Venturing
Maturity Stage
Journey
What Do We Do Here
SEEDING In this phase it is best to achieve a small scale success as not many would want to
disrupt an organization that seems to be working well. The key is some success than
scale.
CHAMPIONING The primary aim during this stage is to achieve a broad acceptance across organization
that innovation is a key business process rather than an ethereal, high-risk enemy. Here
quantifying the improvements is essential.
MANAGING This phase is little tricky, as due to initial success there are many who wants to jump the
bandwagon. In this phase search needs to be for the people who are passionate and
want to bring about the change. This phase has to be managed delicately, else there will
be more presentations & no work
STRATEGISING There is going to be someone with full-time responsibilities for innovation within the
team. This is the stage where the team members need to develop new skills such as
scenario planning, story-telling. People are beginning to see central innovation team as
‘the place to be’ for the best chances of career progression.
VENTURING Here the organizations venture into different areas of business those are not
relevant to their so called core. Here the organization has self-adapting
management structures and teams.
Source : 1/30/2014 61
Innovation Infrastructure
1/30/2014 Source : European Summit for the Future 2009 62
Elements of Knowledge Management Framework
Different Businesses, Different Context, Common Ideas
Contradiction Matrix & Inventive Solution ( “Matrix +” Suite)
Functional Data Bases (http://function.creax.com/)
Evolutionary Potential for Systems ( Technical, Business,
Software) ( EVOPlot +)
Resource Data Base ( Resource Category wise For e.g. Free /
Low Cost Resources, Human Resources, Smart Resources etc)
Systematic Innovation TOOL KIT
Mapping Knowledge Networks ( www.orgnet.com )
1/30/2014 63 Source :
1/30/2014 Source : 64
Thank You
http://innovationnukkad.blogspot.com
www.twitter.com/ideabound
Linked In & Facebook : Prashant Yeshwant Joglekar