©2001 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. THE FUTURE OF CORPORATE INNOVATION CENTERS WORLD FUTURE SOCIETY 7/28/01 Jack Hipple,

©2001 JWH Consulting, Inc. and Innovation-TRIZ Inc.

INNOVATION-TRIZ,INC.

THE FUTURE OF THE FUTURE OF CORPORATE INNOVATION CORPORATE INNOVATION

CENTERSCENTERSWORLD FUTURE SOCIETYWORLD FUTURE SOCIETY

7/28/017/28/01Jack Hipple, Innovation-TRIZJack Hipple, Innovation-TRIZ

Tampa, FLTampa, FL

[email protected]@earthlink.net

www.innovation-triz.comwww.innovation-triz.com





OUTLINEOUTLINE

• Why is this topic important?Why is this topic important?

• What has been learned?What has been learned?

• What worksWhat works

• What doesn’t workWhat doesn’t work

• Contradictions and issuesContradictions and issues

• How to do it right--How to do it right--in the in the futurefuture



SOURCES OF INFORMATIONSOURCES OF INFORMATION

• Network of 15 former innovation Network of 15 former innovation managers from major corporations--study managers from major corporations--study sponsored by the Association of Managers sponsored by the Association of Managers of Innovation/Center for Creative of Innovation/Center for Creative Leadership--in the process of being Leadership--in the process of being publishedpublished

• Analysis of experiences in corporations in Analysis of experiences in corporations in a medium size city networka medium size city network

• Personal experience leading major Personal experience leading major corporate innovation programs and corporate innovation programs and projectsprojects

• Consulting experience with clientsConsulting experience with clients

• ““Crisis and Renewal”--David HurstCrisis and Renewal”--David Hurst



I. WHY IS THIS IMPORTANT?I. WHY IS THIS IMPORTANT?• Corporations are constantly looking for Corporations are constantly looking for

inventions, acquisitions, collaborations, and inventions, acquisitions, collaborations, and processes which can allow them to grow at a processes which can allow them to grow at a rate faster than the GDP of the rate faster than the GDP of the country/world--and faster than their country/world--and faster than their competitors!competitors!

• Many unsuccessful attempts have been made Many unsuccessful attempts have been made to sustain internal efforts to support these to sustain internal efforts to support these goals--nearly all have been terminated goals--nearly all have been terminated (sometimes restarted years later!)(sometimes restarted years later!)

• These efforts have spent HUNDREDS of These efforts have spent HUNDREDS of millions of dollars!millions of dollars!

• Perception that there are untapped ideas Perception that there are untapped ideas within the organizationwithin the organization

• Even perceived “successes” have seen Even perceived “successes” have seen downsizings eventuallydownsizings eventually

• What/where are the learnings?What/where are the learnings?



WHY IS THIS IMPORTANT?WHY IS THIS IMPORTANT?

• Previous leaders of these Previous leaders of these programs, for the most part, programs, for the most part, are in successful consulting are in successful consulting businesses or start-up businesses or start-up companies--major companies--major corporations have lost them--corporations have lost them--probably foreverprobably forever

• Their clients usually always Their clients usually always include ex-employers!include ex-employers!

• Learnings?Learnings?



II. WHAT’S BEEN TRIED?II. WHAT’S BEEN TRIED?

• A specially funded “enterprise”, usually under the A specially funded “enterprise”, usually under the umbrella of the R&D organizationumbrella of the R&D organization

• Funding usually (but not always) outside the Funding usually (but not always) outside the control of existing business units and sometimes control of existing business units and sometimes at at the expensethe expense of these existing businesses of these existing businesses

• Sometimes combined with other corporate Sometimes combined with other corporate initiatives in acquisitionsinitiatives in acquisitions

• Sometimes minimally funded for support staff Sometimes minimally funded for support staff only--”can’t fund and can’t say no”---primary only--”can’t fund and can’t say no”---primary responsibility was encouragement and moral responsibility was encouragement and moral supportsupport

• Programs sometimes focused around a unique Programs sometimes focused around a unique physical facilityphysical facility

• Leadership of program frequently in the hands of Leadership of program frequently in the hands of one key senior leaderone key senior leader



III. WHAT WORKEDIII. WHAT WORKED

• Ideas Ideas were were stimulatedstimulated

• R&D personnel were allowed to R&D personnel were allowed to explore outside their normal focus explore outside their normal focus areaarea

• Special meetings, demonstrations, Special meetings, demonstrations, exercises highlighted the exercises highlighted the importance of the activity and importance of the activity and demonstrated supportdemonstrated support

• New products and businesses New products and businesses were startedwere started



IV. WHAT DIDN’T WORKIV. WHAT DIDN’T WORK

• Ideas were not integrated with corporate Ideas were not integrated with corporate business structure and environmentbusiness structure and environment

• Ignorance of the amount of effort and Ignorance of the amount of effort and investment required to change the investment required to change the corporate climate and/or businesscorporate climate and/or business

• Business/commercial involvement after the Business/commercial involvement after the fact caused priority conflicts and fact caused priority conflicts and resentmentresentment

• Little or no involvement of the Little or no involvement of the sales/marketing organizationsales/marketing organization

• Time horizons and impact poorly estimatedTime horizons and impact poorly estimated

• Narrow and individual sponsorshipNarrow and individual sponsorship



CONSEQUENCESCONSEQUENCES

• Subtle forms of sabotageSubtle forms of sabotage

• Corruption of funding Corruption of funding processprocess

• Lack of staying power Lack of staying power during economic during economic downturnsdownturns

• Program “died” with the Program “died” with the loss of sponsorloss of sponsor



SABOTAGE AND CORRUPTIONSABOTAGE AND CORRUPTION

• Funding of “normal” Funding of “normal” business projects under the business projects under the innovation umbrellainnovation umbrella

•““Perceived” innovation Perceived” innovation funding greater than actualfunding greater than actual

• Credibility of program Credibility of program suffers over time--suffers over time--deliverables vs. spendingdeliverables vs. spending

• Simple competition for $$Simple competition for $$



CONCEPTS PROVED INVALIDCONCEPTS PROVED INVALID

• A single location A single location (“creativity centers”) in an (“creativity centers”) in an organization can facilitate organization can facilitate broad organizational broad organizational innovationinnovation

• The R&D function can do it The R&D function can do it alone, or in spite of other alone, or in spite of other functionsfunctions



CONCEPTS PROVED VALIDCONCEPTS PROVED VALID

•People within an People within an organization DO have organization DO have unique ideasunique ideas

•There ARE new business There ARE new business opportunities which will opportunities which will not be discovered by not be discovered by normal business visions normal business visions and processesand processes



RECENT BUSINESS TRENDSRECENT BUSINESS TRENDS

• Customer driven vs. technology driven Customer driven vs. technology driven ---the balance has shifted---the balance has shifted

• Core competencies being used to Core competencies being used to identify focus areas and sometimes identify focus areas and sometimes used as shadow organization used as shadow organization structuresstructures

• Alliances and strategic partnerships Alliances and strategic partnerships that are not necessarily permanentthat are not necessarily permanent

• New problem solving toolsNew problem solving tools

• ““Business” teams and organizations Business” teams and organizations vs. functional leadership of activitiesvs. functional leadership of activities



RECENT PERSONNEL TRENDSRECENT PERSONNEL TRENDS

• Dramatic decline in loyalty, Dramatic decline in loyalty, downsizingsdownsizings

• Increased specializationIncreased specialization

• ““Temporary” assignments and Temporary” assignments and more rapid turnovermore rapid turnover

ImpactImpact

Capturing and broadening of Capturing and broadening of intellectual property (not just intellectual property (not just patents, but “know how”) much patents, but “know how”) much more important AND difficultmore important AND difficult



STUDIES AND STUDIES AND INSTRUMENTS FOR INSTRUMENTS FOR

ASSESSMENTASSESSMENT



INPUT FROM AMI STUDYINPUT FROM AMI STUDY



ASSOCIATION OF MANAGERS OF ASSOCIATION OF MANAGERS OF INNOVATIONINNOVATION

• An informal group of 30-40 An informal group of 30-40 innovators, most of whom have innovators, most of whom have (had) responsibility for innovation (had) responsibility for innovation programs within large companies, programs within large companies, government agencies, or non-profitsgovernment agencies, or non-profits

• Meets twice yearly with outside Meets twice yearly with outside stimulus speaker and shares stimulus speaker and shares experiencesexperiences

• Active since 1986 and still going Active since 1986 and still going

• Sponsored by Stan Gryskiewiecz at Sponsored by Stan Gryskiewiecz at the Center for Creative Leadershipthe Center for Creative Leadership



AN OBSERVATION WAS MADE…..AN OBSERVATION WAS MADE…..

• A large percentage of corporate A large percentage of corporate innovation managers had become innovation managers had become consultants through downsizings consultants through downsizings and early retirementsand early retirements

• These were usually associated with These were usually associated with termination of the functiontermination of the function

• With further passage of time, the With further passage of time, the percentage rose more, with 15 percentage rose more, with 15 people identifiedpeople identified



AMI DECIDED TO…..AMI DECIDED TO…..

• Survey and study this Survey and study this phenomenonphenomenon

• See if there were any See if there were any learnings that could be learnings that could be sharedshared

• Publish if possiblePublish if possible



RESULTSRESULTS

• Study completed in late Study completed in late 20002000

• Draft of publication in Draft of publication in progressprogress

• Results can be shared Results can be shared anonymouslyanonymously

• Findings significantFindings significant



LEARNINGS FROM STUDYLEARNINGS FROM STUDY

• Significant differences Significant differences between “styles” of between “styles” of innovation champions and innovation champions and “norm” around them“norm” around them

• KAI and Meyers Briggs KAI and Meyers Briggs analyses can help assessanalyses can help assess



THE MEYERS BRIGGS THE MEYERS BRIGGS (MBTI) INSTRUMENT(MBTI) INSTRUMENT



MEYERS-BRIGGSMEYERS-BRIGGS

• A tool which measures our A tool which measures our “style” of social “style” of social interactioninteraction

•Extraverted/introverted (E/I)Extraverted/introverted (E/I)•Sensing/intuition (S/N)Sensing/intuition (S/N)•Thinking/feeling (T/F)Thinking/feeling (T/F)•Perceiving/judging (P/J)Perceiving/judging (P/J)



MEYERS BRIGGSMEYERS BRIGGS

• 85% of innovation champs 85% of innovation champs were “NT’s”were “NT’s”

• Only 1% of the population Only 1% of the population are “NT’s”are “NT’s”

• >80% of corporate senior >80% of corporate senior managers are “ST’s”managers are “ST’s”

• This sets up major This sets up major potential conflictpotential conflict



IMPACT OF MBTI DELTASIMPACT OF MBTI DELTAS

• Change always seems Change always seems bigger to an “ST” than an bigger to an “ST” than an “NT”“NT”

• ““NT’s” are more NT’s” are more comfortable with change in comfortable with change in generalgeneral

• If desired change is not If desired change is not defined clearly, conflicts defined clearly, conflicts will resultwill result



EXAMPLES….EXAMPLES….

• ““We need to do different We need to do different things in this company…”things in this company…”

•Does this mean get into an Does this mean get into an entirely new business, make entirely new business, make an acquisition?an acquisition?

•Does this mean we need to Does this mean we need to process existing orders more process existing orders more efficiently?efficiently?



THE KAI INSTRUMENTTHE KAI INSTRUMENT



WHAT KAI MEASURESWHAT KAI MEASURES

• Meyers Briggs measures Meyers Briggs measures how people relate to each how people relate to each otherother

• KAI measures how people KAI measures how people relate to problems--their relate to problems--their problem solving styleproblem solving style

• Instrument measures Instrument measures originality, rule/group originality, rule/group conformity, and efficiencyconformity, and efficiency



THE INSTRUMENTTHE INSTRUMENT

• A 32 question assessment with a A 32 question assessment with a range of responsesrange of responses

• Range of score, 32-160 Range of score, 32-160 (32 questions X (1-5) response(32 questions X (1-5) response• 15-20 minutes to complete15-20 minutes to complete• Highly validated across many areas Highly validated across many areas

and cultures globallyand cultures globally• Dr. Michael Kirton, Occupational Dr. Michael Kirton, Occupational

Research Centre, Hatfield Research Centre, Hatfield Polytechnic Institute, EnglandPolytechnic Institute, England

• Indiana State University, Terre Indiana State University, Terre Haute, INHaute, IN




• Measures how we relate to Measures how we relate to “problems” and the problem “problems” and the problem solving environment vs. how solving environment vs. how we relate to peoplewe relate to people

• ““Norm” of population is Norm” of population is around 90 with the majority around 90 with the majority of people in the 70-120 of people in the 70-120 range (highly adaptive to range (highly adaptive to highly innovative)highly innovative)




• Composed of 3 sub-scales, Composed of 3 sub-scales, which, when added, which, when added, produce the total “score”produce the total “score”

•OriginalityOriginality•Rule/group conformityRule/group conformity•EfficiencyEfficiency

• Sub-scales also important Sub-scales also important in themselvesin themselves



KAI DIFFERENCESKAI DIFFERENCES

• Managerial “norm” is Managerial “norm” is around 95-100around 95-100

• Average of innovation Average of innovation champs was 135champs was 135

• Friction visible with Friction visible with differentials of 10-15differentials of 10-15



KAI DISTRIBUTIONKAI DISTRIBUTION

00.5

11.5

22.5

33.5

44.5

5

95 +/- 5 105 +/-5

115 +/-5

125 +/-5

135 +/-5

145 +/-5

155 +/-5

Number

NORM



IMPACT OF KAI DELTAS…..IMPACT OF KAI DELTAS…..

• Replacing vs. improvingReplacing vs. improving

• Reaction to internal vs. Reaction to internal vs. external threatsexternal threats

• Appreciation for detailAppreciation for detail

• ““Right” vs. riskRight” vs. risk



PERSONAL FEEDBACK PERSONAL FEEDBACK FROM THE AMI STUDYFROM THE AMI STUDY



PERSONAL LEARNINGSPERSONAL LEARNINGS

• Broader support and involvement beyond one executive (especially Broader support and involvement beyond one executive (especially one near retirement age!)--don’t depend on the energy and drive of one near retirement age!)--don’t depend on the energy and drive of one personone person

• Top level supportTop level support

• Understand political and business cultures, recognize you may be a Understand political and business cultures, recognize you may be a threat to someonethreat to someone

• More education on role of innovationMore education on role of innovation

• Succession planningSuccession planning

• Treat as a business processTreat as a business process

• Use the “coin of the realm” in discussions and planningUse the “coin of the realm” in discussions and planning

• Corporate, not a research processCorporate, not a research process

• Marketing/commercial involvement and supportMarketing/commercial involvement and support• Share successes AND failuresShare successes AND failures

• Share process successesShare process successes



CONTRADICTIONS OF CONTRADICTIONS OF INNOVATION PROGRAMS--INNOVATION PROGRAMS--MAJOR CITY CORPORATE MAJOR CITY CORPORATE

INPUTINPUT



THE PARADOXES OF INNOVATIONTHE PARADOXES OF INNOVATION

• Somebody’s job vs. everybody’s jobSomebody’s job vs. everybody’s job

• Must be everyone’s job at some timeMust be everyone’s job at some time• Simulation exercisesSimulation exercises

• ““Inside” business structure vs. “outside” Inside” business structure vs. “outside” business structure focusbusiness structure focus

• Set up separate structure if necessarySet up separate structure if necessary• Chaos vs. disciplineChaos vs. discipline

• Separate in time/upon conditionSeparate in time/upon condition• Passion vs. objectivityPassion vs. objectivity

• Separate in time/upon conditionSeparate in time/upon condition• Risk vs. job securityRisk vs. job security

• People learn quickly--protect risk takers or you soon People learn quickly--protect risk takers or you soon won’t have any!won’t have any!



COST OF INFORMATION

TIME

GENERATING

DISSEMINATING

Source: Jim Palmer, P&G

ANOTHER DRAMATIC CHANGE….ANOTHER DRAMATIC CHANGE….



COST OF INFORMATION…..COST OF INFORMATION…..

• GenerationGeneration

• Must be right in the first placeMust be right in the first place• Must be focused on the right problemMust be focused on the right problem• Problem definition more critical than Problem definition more critical than

everever• Must be protected and provide valueMust be protected and provide value

• DisseminationDissemination

• RetrievalRetrieval• AccessAccess





LONG TERM BUSINESS TRENDS (NOT CYCLES)LONG TERM BUSINESS TRENDS (NOT CYCLES)

Emergent ActionEmergent Action Rational Action Rational Action Constrained Constrained actionaction

CRISISCHOICE

Conservation

Confusion

Strategic Management

Charismatic LeadershipCreative Network

Entrepreneurial action Source: Crisis and Renewal,

David Hurst, Harvard Business School Press, 1995



REGARDLESS OF WHERE REGARDLESS OF WHERE YOU ARE IN THE CYCLE….YOU ARE IN THE CYCLE….

Innovation is ALWAYS Innovation is ALWAYS NEEDED!NEEDED!



IN THE ENTREPENEURIAL PHASE...IN THE ENTREPENEURIAL PHASE...

• Intellectual property Intellectual property protection may be most protection may be most importantimportant

• Freedom and lack of Freedom and lack of control is stimulativecontrol is stimulative



IN THE RATIONAL ACTION PHASEIN THE RATIONAL ACTION PHASE

• Decisions must be madeDecisions must be made

• Prototypes and manufacturing Prototypes and manufacturing plants must be builtplants must be built

• The nature of innovation The nature of innovation requirements changerequirements change

• Delivery and marketing are Delivery and marketing are important, and they too important, and they too require innovation and require innovation and creativitycreativity



PREVENTING THE CRISIS/CONFUSION PHASEPREVENTING THE CRISIS/CONFUSION PHASE

• ALWAYS have someone figuring ALWAYS have someone figuring out what could replace you and out what could replace you and your businessyour business

• Listening only to your current Listening only to your current customers can be a big mistake!customers can be a big mistake!

• Innovation in manufacturing is no Innovation in manufacturing is no less important than in new science less important than in new science and productsand products

• New techniques such as TRIZ can New techniques such as TRIZ can really help this analysisreally help this analysis



HOW TO DO IT RIGHTHOW TO DO IT RIGHT



HOW TO DO IT HOW TO DO IT RIGHTRIGHT

• Functional integrationFunctional integration

• Identification Identification andand assessment assessment

• ““hunters” and “gatherers”hunters” and “gatherers”• Identification of long-term trends in Identification of long-term trends in

addition to input from current addition to input from current customer basecustomer base

• Change the “program” vs. cycle, but Change the “program” vs. cycle, but support must be CONSISTENTsupport must be CONSISTENT

• Extension/broadening of intellectual Extension/broadening of intellectual property work to make whatever is property work to make whatever is done more valuabledone more valuable



FUNCTIONAL INTEGRATIONFUNCTIONAL INTEGRATION

• AllAll innovation efforts and innovation efforts and initiatives must include or initiatives must include or have a mechanism to trigger have a mechanism to trigger inclusion of the commercial inclusion of the commercial and manufacturing base of and manufacturing base of the organizationthe organization

•who is going to buy?who is going to buy?•how are we going to make?how are we going to make?•do we have the required do we have the required

competencies?competencies?



IDENTIFICATION AND ASSESSMENTIDENTIFICATION AND ASSESSMENT

• These skills are not usually These skills are not usually present in one individual--must present in one individual--must be paired up earlybe paired up early

• Can be a great mechanism to Can be a great mechanism to involve commercial organizationinvolve commercial organization

• Simple skills can be taught and Simple skills can be taught and learned by everyonelearned by everyone

• What happens if this actually What happens if this actually works as planned?works as planned?



LONG TERM TREND ASSESSMENTSLONG TERM TREND ASSESSMENTS

• What is affecting your What is affecting your customer? Their customer?customer? Their customer?

• What could put both of you What could put both of you out of business?out of business?

• What are the impacts of What are the impacts of broad new trends?broad new trends?

• Lines of evolution from TRIZ Lines of evolution from TRIZ methodologymethodology



PROGRAM VS. CYCLEPROGRAM VS. CYCLE

• In economic declines, focus on In economic declines, focus on new applications and uses as new applications and uses as well as manufacturing cost well as manufacturing cost reductionsreductions

• In times of growth, consider In times of growth, consider replacement manufacturing as replacement manufacturing as well as new core technologieswell as new core technologies

• Consider counter-cyclical Consider counter-cyclical approachapproach



EXTENSION OF INTELLECTUAL PROPERTYEXTENSION OF INTELLECTUAL PROPERTY

• Far more important than in the pastFar more important than in the past

• Cannot be left in the hands of a single Cannot be left in the hands of a single inventor or a single patent attorneyinventor or a single patent attorney

• TRIZ concepts and lines of evolution TRIZ concepts and lines of evolution can be used to broaden claims and can be used to broaden claims and value of intellectual propertyvalue of intellectual property

• Should be considered in parallel with Should be considered in parallel with R&D work as it progressesR&D work as it progresses

• Proactively licensing activitiesProactively licensing activities



USEFUL TECHNIQUESUSEFUL TECHNIQUES

• Simulate emergencies, surprisesSimulate emergencies, surprises

• Deliberate articulated strategiesDeliberate articulated strategies

• Expansion of core competenciesExpansion of core competencies

• Separate thinking from criticism Separate thinking from criticism (Six Hats™ process)(Six Hats™ process)

• Corporate crusadesCorporate crusades

™™APTT and Edward DeBono organizationAPTT and Edward DeBono organization



DEALING WITH THE PEOPLE SIDEDEALING WITH THE PEOPLE SIDE

• People watch what you do, not People watch what you do, not what you say…and they learn what you say…and they learn VERY quicklyVERY quickly

• How are people who try “smartly”, How are people who try “smartly”, but fail, treated?but fail, treated?

• How is risk rewarded?How is risk rewarded?• Determine when help is needed Determine when help is needed

(“hunters vs. gatherers”)(“hunters vs. gatherers”)

• Reporting of “accidental Reporting of “accidental learning” processlearning” process



MANAGEMENT BEHAVIORMANAGEMENT BEHAVIOR

• Where is time spent?Where is time spent?

• How are budgets allocated?How are budgets allocated?

• What kind of questions are What kind of questions are asked? To whom?asked? To whom?

• Are Are ALLALL functions involved? functions involved?

• Innovation tool trainingInnovation tool training

•TRIZ, KAI, Six Hats™TRIZ, KAI, Six Hats™



CONCLUSION: CONCLUSION: CORPORATE INNOVATIION CORPORATE INNOVATIION

CAN BE DONE RIGHTCAN BE DONE RIGHT

Learnings can be Learnings can be applied to any situationapplied to any situation

Documents

©2001 JWH Consulting, Inc. and Innovation-TRIZ Inc. INNOVATION-TRIZ,INC. THE FUTURE OF CORPORATE INNOVATION CENTERS WORLD FUTURE SOCIETY 7/28/01 Jack Hipple,