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INSTITUTIONALISING INNOVATION
INTRODUCTION:
Necessity is the mother of all inventions was the mantra in the
research and scholarly world in 1800s
which led to the industrial revolution and almost fulfilled all
the human necessities, since then world haschanged and now we can
comprehend No Innovation No existenceand now innovation is the
necessity
to survive.
For most firms competing in the global economy, the urgent
message in our time is to innovate and
adapt or face the prospect of extinction. To respond to this
challenge, their management is called upon
to evaluate the quality of each firm's innovation process. This
can be measured by the amount of new
revenues and profits it generates, by the speed of introducing
new innovations to the marketplace and by
well-planned initiatives to reduce their ecological footprint.
In recent years we have witnessed a dramatic
decline in a business firm's expected lifetime. A dramatic drop
from 4045 years in 1990 to 18 years in
2008 has been attributed to the continually increasing rate of
change in the business environment. Morerecently, the significant
pressures for firms to adapt have been reinforced by the impact of
the 2008
2009 global economic crisis causing even role model firms such
as General Motors, Sony and Toyota to
sustain huge financial losses. In this new setting with on-going
shifts in customer preferences in
developed and developing economies, innovation has been
replacing quality as the main source of
competitive advantage. The needed adaptation to a changing
business landscape can occur only through
successful innovations for new products or processes,
innovations for more effective business models
and innovations for new leadership styles and organisational
structures. Despite a widespread
acceptance of innovation's importance by the leadership of most
companies, as recorded in recent
executive surveys, there is a general dissatisfaction with the
results realised from their innovation
investments. Managing the quality of the innovation process for
survival and excellence in adaptationrequires a systemic view of
the innovation process, using a balanced set of innovation metrics
which
inform and enable managers to make desirable interventions on
the stages of the innovation value-chain.
APPROACH
The information is accelerating the innovation that has rapidly
become a distinguishing factor to maintain
the leadership position and financial performance of a
corporation. The big question unanswered is how
much change can be called as disruptive or innovation, How to
institutionalise the innovation and how to
measure the innovation.
The corporates across the globe follow different models to
institutionalise innovation and TRIZ is one
model adopted by most global players in 2000.
ABOUT TRIZ MODEL:
To institutionalise the Innovation first, we need to understand
that how innovation evolves or it is just a
spontaneous ideas.
TRIZ is "a problem-solving, analysis and forecasting tool
derived from the study of patterns of invention in
the global patent literature. It was developed by the Soviet
inventor and science fiction authorGenrich
Altshuller and his colleagues, beginning in 1946. In English the
name is typically rendered as "the theoryof inventive problem
solving, and occasionally goes by the English acronym TIPS.
Altshuller screened patents in order to find out what kind of
contradictions were resolved or dissolved by
the invention and the way this had been achieved. From this, he
developed a set of 40 inventive
http://en.wikipedia.org/wiki/Genrich_Altshullerhttp://en.wikipedia.org/wiki/Genrich_Altshullerhttp://en.wikipedia.org/wiki/Genrich_Altshullerhttp://en.wikipedia.org/wiki/Genrich_Altshuller
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principles and later a matrix of contradictions. Rows of the
matrix indicate the 39 system features that
one typically wants to improve, such as speed, weight, accuracy
of measurement and so on. Columns
refer to typical undesired results. Each matrix cell points to
principles that have been most frequently
used in patents in order to resolve the contradiction.
TRIZ PROCESS FOR CREATIVE PROBLEM SOLVING
Apart from TRIZ model many organizations have derived their own
approach like,
SIT (systematic inventive thinking),ASIT (advanced systematic
inventive thinking)
USIT (unified structured inventive thinking),JUSIT (Japanese
version of unified systematic inventive
thinking)
TRIZICS (A methodology for the systematic application of
TRIZ),TrizIT (Triz modified for information
technology).
CASE: INSTITUTIONALISNG THE INNOVATION THROUGH TRIZ MODEL BY
SAMSUNG
An innovation method that Samsung adopted from 2000 onwards but
which only reached American
companies from the mid-2000s onwards (Intel is a user).Samsung
had early successes with TRIZ, saving
over $100 million in its first few projects. It was also
adopting Six Sigma at the time. But it was TRIZ that
became the bedrock of innovation at Samsung. And it was
introduced at Samsung by Russian engineers
whom Samsung had hired into its Seoul Labs in the early
2000s.
In 2003 TRIZ led to 50 new patents for Samsung and in 2004 one
project alone, a DVD pick-up innovation,
saved Samsung over $100 million. TRIZ is now an obligatory skill
set if you want to advance withinSamsung.
What we know from this is how Samsung approaches innovation. It
is not a competitive race, as it seems
to be in Apple, or based on giving engineers more bench time as
it is at Google.
Rather it is based on developing creative elite. The diagram
below explains that. It is taken from this
presentation. The presentation also explains how Samsung used
TRIZ to get to its Super AMOLED
displays.
http://en.wikipedia.org/wiki/Systematic_Inventive_Thinkinghttp://en.wikipedia.org/w/index.php?title=Advanced_systematic_inventive_thinking&action=edit&redlink=1http://en.wikipedia.org/wiki/Unified_Structured_Inventive_Thinkinghttp://en.wikipedia.org/w/index.php?title=Japanese_version_of_unified_systematic_inventive_thinking&action=edit&redlink=1http://en.wikipedia.org/wiki/Trizicshttp://en.wikipedia.org/w/index.php?title=TrizIT&action=edit&redlink=1http://www.koreatrizcon.kr/files/O-5%28Full%29.pdfhttp://www.koreatrizcon.kr/files/O-5%28Full%29.pdfhttp://www.koreatrizcon.kr/files/O-5%28Full%29.pdfhttp://www.koreatrizcon.kr/files/O-5%28Full%29.pdfhttp://en.wikipedia.org/w/index.php?title=TrizIT&action=edit&redlink=1http://en.wikipedia.org/wiki/Trizicshttp://en.wikipedia.org/w/index.php?title=Japanese_version_of_unified_systematic_inventive_thinking&action=edit&redlink=1http://en.wikipedia.org/wiki/Unified_Structured_Inventive_Thinkinghttp://en.wikipedia.org/w/index.php?title=Advanced_systematic_inventive_thinking&action=edit&redlink=1http://en.wikipedia.org/wiki/Systematic_Inventive_Thinkinghttp://en.wikipedia.org/wiki/File:TRIZway.svghttp://en.wikipedia.org/wiki/File:TRIZway.svg
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FRAME WORK:
Prior to the establishment of an innovation cell vertical,
organizations needs to infuse the innovative
culture in the organization.
Organization needs to create room for innovation, if one looks
at typical residential layout which includes
rooms for different activities cooking, living, dining. if one
enters the kitchen he gets idea of food and
cooking and if one gets into study room he gets ideas about
topic in mind, similarly organizations needsto create an
environment to get ideas from the employees, this similar set of
process is followed by
GOOGLE Inc.
Many organizations is of a taught that innovation is invention
and end up in reinventing the wheel,
organizations needs to understand innovation is disruptive idea.
Organizations need to create an
innovative environment through employee engagement initiates and
rewarding the ideas which has
impact on bottom line of the organization.
Innovation needs to be imparted in Business score card by which
innovation can be made accountable in
the business process and planning, and goal settings.
CHALLENGES IN INSTITUTIONALISING THE INNOVATION:
Institutionalising the innovation is not a cake walk for any
organizations it needs lot of taught process and
change management capabilities and strong leadership to
institutionalise the innovation.
The major challenges in the process are.
Idea management:After creating an innovation cell the ideas may
flood into the system whichneeds critical examination and are to be
screened based on economic viability.
Employee concerns: Leadership should create the environment to
synergise the innovativecapabilities of the workforce and never set
targets to its employees then the whole idea get
dissolved and people tend to work in fashion as they were doing
earlier.
CONCLUSION:
In this age of information organizations with legacy also needs
to be focused on various fronts like
customer demand, cost, product differentiation and
competition.
To survive and to sustain in the market every organization must
take an approach and give a proper
framework to innovation management which is the need of the
hour.
AUTHOR: CHETHAN KUMAR M A
COMPANY: TATA MOTORS LTD
E MAIL: [email protected]
Mob: 8603210574
