Value Innovation for Engineers Thamirabarani college of engineering

Value Innovation for Engineers

ByDr. Kabaly P Subramanian

Department of Business Studies

Arab Open University

Sultanate of Oman

Why do you need to sit through this presentation?

World of relentless change and ferocious competition

Need for Sustainable Development Inclusive growth Triple bottom-line Innovation helps you to grow and sustain

Structure of this presentation

Understanding Innovation Innovation Landscape Innovation vs. Value Innovation Value Innovation tools Discussion

Understanding Innovation

Creative solutions for existing and perceived problems

Profitable implementation of strategic creativity

Wipro’s CEO “we plan to recruit people who can think and execute. Those who can provide solutions to the problems”

Innovation Landscape

Designated function Everyone’s responsibility Open to the stakeholders Open to the world

Types of Innovation

Business Innovation Social Innovation

Scope of Business Innovation

Product Innovation (iPad,Nylon,..) Process Innovation (Assembly line,

Amazon..) Management Innovation (JIT,ESOP,.) Business Model Innovation (Dell)

Scope of Social Innovation

Health ( Aravind Eye care system) Energy ( Bio-gas,wind,solar,…) Infrastructure creation (Roads using plastic

wastes..) Education Employment generation Water availability and access Environmental replenishment

Is Innovation always valuable?

Case : Iridium

Value Innovation

Existing Product 1

Existing Product 2

Innovation Canvas ( As is )

hi

offe

ring

leve

l

loPrice

Factor 6 Factor 8 Factor 4

Factor 5Factor 7 Factor 3

Factor 2

© Kim & Mauborgne 2006

Four Actions framework

Which factors should be reduced well below the industry standard

Which of the factors that the industry taken for granted should be eliminated?

Which factors should be raised well above the industry’s standard?

Which factors should be created that the industry has never offered

A new value

ERRC Grid

Eliminate Raise

Reduce Create

Existing Product 2

Existing Product 1

Innovation Canvas ( To be )

hi

offe

ring

leve

l

loPrice

Factor 5 Factor 7Factor 3

Factor 4Factor 6Factor 2

Factor 1

Factor 8

Factor 9

Factor 10

Factor 11

New product

© Kim & Mauborgne 2006

Personal Finance Software

The Pencil

Personal Finance Software Industry

hi

offe

ring

leve

l

lo

Price Speed AccuracyOptional FeaturesEase of Use

Quicken

© Kim & Mauborgne 2006

Ingenious Innovation

Frugal Innovation Finding good enough solutions New approach to innovation Mansukh Prajapati : Mitticool ( Clay fridge) Dr.Sathya Jeganathan : Incubator Illac Diaz : A litre of Light (Solar Bottle bulb)

Solar Bottle Bulb

Solar Bottle Bulb

Clay Fridge

Incubator

Incubator

Useful tips

Look beyond your industry Observation and reflection Field visits Engaging the stakeholders

Reference

Blue Ocean Strategy

W.Chan Kim and Renee Mauborgne

Harvard Business School Press (2005) world wide web

Reference

Blue Ocean Strategy

W.Chan Kim and Renee Mauborgne world wide web

kabaly@aou.edu.com