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UC Irvine Institute for Innovation I N F O L O G I C The logical approach to harness innovation Presented by: Has Patel Infologic, Inc. [email protected] (888) 325 0500 Ext. 100 INFOLOGIC, INC. 25 Palatine # 212 Irvine, CA 92612 www.infologic.com National Manufacturing Day October 2, 2015 Manufacturing Innovation Model

Has Patel-Lunch & Learn October 2, 2015

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UC Irvine Institute for Innovation

I N F O L O G I CThe logical approach to harness innovation

Presented by:

Has Patel

Infologic, [email protected]

(888) 325 0500 Ext. 100

INFOLOGIC, INC.

25 Palatine # 212

Irvine, CA 92612

www.infologic.com

National Manufacturing DayOctober 2, 2015

Manufacturing Innovation Model

1

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Global Innovation Snapshot (Source : Battelle Corporation/R&D Magazine)

2

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Why Manufacturing & Innovation ?( Source : NIST )

3

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

National Manufacturing Strategy

Advanced manufacturing is …

a family of activities that (a) depend on the use andcoordination of information, automation,computation, software, sensing, and networking,and/or (b) make use of cutting-edge materials andemerging capabilities enabled by the physical andbiological sciences, for example nanotechnology,chemistry, and biology. This involves both new waysto manufacture existing products, and especially themanufacture of new products emerging from newadvanced technologies.

The final AMP report makes three key pillarsthat support American manufacturing ….

1) enabling innovation, 2) securing the talentpipeline, & 3) improving the business climate.

UC Irvine Workshop 9/2012 – A Major Player in defining Strategy

4

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Federal Government Initiatives : Manufacturing(source : manufacturing.gov)

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Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Manufacturing and U.S. Innovation System

“ …..The acceleration ofinnovation for advancedmanufacturing requiresbridging a number of gaps inthe present U.S. innovationsystem, particularly……

the gap between research anddevelopment (R&D) activitiesand the deployment oftechnological innovations indomestic production ofgoods……. “

6

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Valley of Death ?

Disconnect between SUPPLY side and DEMAND side

R&D Portfolio

•Federal & Academic Labs, including NNMI

•OEM Labs

• IP-based small and emerging companies

• International R&D

Technology Needs:

Manufacturing Enterprises

Wasted R&D EffortsImmature technologies

Unmet End user technology needsDeterioration of US Innovation Superiority

SUPPLY DEMAND

7

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

“DEMAND”-side Valley of Death: Why?

R&D Portfolio

Technology Needs:

Manufacturing Enterprises

Reasons : Lack of …1. Resources to research & utilize external R&D and national

manufacturing initiatives;2. Strategies to create Innovation culture, and link it to the

Lean initiatives; and3. Processes to seek, assess and transit R&D into

manufacturing.

Outcome : loss of potential markets, profitability and future viability of these enterprises.

Propose: A Manufacturing Innovation Model

8

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Research Interest : Innovation Management

Published Papers & Presentations

1. “Successfully Transitioning R&D and Technologies to Commercial Products“ – Aerospace & Defense Forum, OC Chapter, November 2014

2. “Innovation Model for DoD S&T Program” – NDIA/U S Navy SPAWAR Executive Forum, May 2014

3. “The Creative Destruction of Defense S&T Program” - 14th NDIA Science and Engineering Technologies Conference, April 2013

4. “Reinventing Defense Innovation Ecosystem: S&T Program to Innovation Program” - 15th NDIA Systems Engineering Conference, 2012

5. “Competitive R&D Processes, Metrics and Practices” - Institute of Management Consultants, Southern California Technology SIG Meeting, Oct 2010

6. “S&T Portfolio and Performance Maturity” - 12th Annual National Defense Industrial Association (NDIA) Systems Engineering Conference, Oct 2009

7. “Open Innovation and Technology Maturity Analysis” - 2nd DOD Technology Maturity Conference, September 2007.

8. “Assessing Technology Readiness and Maturity” – A Step-by-Step Process” - Management Roundtable Seminar, March 2007.

9. “Technology Evaluation Cycles and Technology Maturity” - 1st DOD Technology Maturity Conference, May 2006.

10.“TechIP: A Methodology for the Emerging Technology Insertion and Integration” - 24th Army Science Conference, November 2004

9

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Manufacturing Innovation Model

• Learn an emerging & broader Innovation Management model which also seeks innovations into Services, Process and Execution strategies.

• Balance Innovation & Lean.

Develop Innovation

Culture

• Learn to leverage Government initiatives

• Scale Government, Academia and Enterprise R&D and Technology Management tools.

• Utilize a four-step process to develop the plan

Innovation and

Technology Plan

• Learn to successfully transit Emerging Technologies and R&D into Commercial Products

• Conduct a CMMI™ based Maturity Analysis

• Integrate IT with OT

Implement

10

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Manufacturing Innovation Model

• Learn an emerging & broader Innovation Management model which also seeks innovations into Services, Process and Execution strategies.

• Balance Innovation & Lean.

Develop Innovation

Culture

• Learn to leverage Government initiatives

• Scale Government, Academia and Enterprise R&D and Technology Management tools.

• Utilize a four-step process to develop the plan

Innovation and

Technology Plan

• Learn to successfully transit Emerging Technologies and R&D into Commercial Products

• Conduct a CMMI™ based Maturity Analysis

• Integrate IT with OT

Implement

11

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Innovation : A Broader Notion

What is Innovation ?

“Innovation is exploiting and translating R&D and Emergingtechnologies into Products (materials and non-materials),Processes & Execution models that incorporate Enterprisestrategy platforms and Analytics”

Product

ExecutionProcess

12

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

“Service systems are dynamic configurations ofpeople, technologies, organizations and sharedinformation that create and deliver value tocustomers, providers and other stakeholders”.

Fact Check: Service Science

“The importance of service has not led toincreased investment in service research anddevelopment”.

America Competes Act (S.761 section 1106)“ ….. would also express a sense of Congressthat the federal government should betterunderstand and respond strategically to theemerging management and learning disciplineknown as “service science.” ……”

13

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Fact Check: Corporate Innovation Directions

• 2006: “I can’t sustain a significant research activity at IBM if our research is not relevant to more than half of the company’s revenues going forward” Dr. Paul Horn, Senior VP of Research at IBM

• 2014: IBM Services Innovation Laboratories : 1/3 of R&D Budget ($6 Billion; 3,000 Scientists) for Services & Analytic R&D

IBM

•“Rather than growing by simply bringing innovative new hardware to the market, Apple transformed its business model…. This enabled Apple and its partners to extract ongoing value from the use of Apple hardware and software.” MIT Sloane Management Review

• “It’s technology married with liberal arts, married with humanities, that yields us the results that make our heart sing. Steve Jobs reminded us ..” CIO Magazine

Apple

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Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Fact Check: Academic Innovation Directions

• National Academies Multi-Disciplinary Innovation : “Team Science” - $40 Million R&D initiative for collaboration between Physical Sciences, Humanities and Social Scientists.

• NSF Service Science Grants : Seeks basic research into (a) Service Enterprise Systems , and (b) Partnerships for Innovation – Develop platforms for Smart Services.

National Academies

&

National Science

Foundation

• "Innovation: The Classic Traps” professor Rosabeth Moss Kanter of the Harvard Business School quotes …

• “ the most common mistake companies make is to apply traditional corporate processes to new projects. “

Harvard Business School

15

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Fact Check : National Academy of Engineering “Making Value for America”

Technological developments, reengineeredoperations, and economic forces arechanging the way products and services areconceived, designed, made, distributed,and supported.

Manufacturing or “making things” can nolonger be considered separate from thevalue chain, the system of research anddevelopment, product design, softwaredevelopment and integration, and lifecycleservice activities performed to deliver avaluable product or service to market.

Embracing the Future of Manufacturing, Technology and Work

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Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Several approaches shape our thinking aswe attack the need for breakthroughcapabilities for national security:

1) Game-changing new systemstechnologies.

2) Layered, multi-technology war fightingconcepts

3) Adaptable systems and solutions.

4) Innovation to invert the cost equation.

“ … Today we seek to use innovation toradically invert the cost dynamic. How canwe impose more cost on our adversaries andless on ourselves, thereby increasing ourdeterrent?

Can innovative systems architectures,autonomy, adaptability, and new processesoffer new possibilities? These approachesmay allow us to reinvent development,production, logistics, operations, andmaintenance in ways that radically changethe cost equation…. “

Fact Check: DARPA R&D Strategies & Approaches(Defense Advanced Research Projects Agency)

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Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Innovation Management Model

Technology Transfer Innovation ManagementTraditional Notion A Broader Notion

Voice of the Stakeholders

Integration

VALUE

RadicalInnovation

EvolutionaryInnovation

INCREMENTAL DEVELOPMENT

PRODUCT MODEL

SPIRAL DEVELOPMENT

Voice of the User

Methodologies & Tools

MATURITY VALUE

RadicalInnovation

EvolutionaryInnovation

CMMISTAGES

PROCESS MODEL

MATURITY

Voice of the Knowledge Worker

Lean Culture

VALUE

RadicalInnovation

EvolutionaryInnovation

EnterprisePerformance Management

(EPM)

EXECUTION MODEL

ANALYTICS

ANALYTICS

© Infologic, Inc.

18

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Case Study: Apple iPhone Family

Product

Innovation

• Materials iPhone (User Interface, Design & Interoperability, Evolution – iPhone to 3G, 4 to 5)

• Non-MaterialsiTunes (software maintenance and download; supply chain management; synchronization)

Process

Innovation

• Apps Development environment

• Manufacturing to integration (100% Components Outsourced; Design & iOS Software internal)

Execution

Innovation

• Distribution Agreement with wireless carriers

• Apps Revenue 30%

• Retail Stores as a Knowledge Center

• Genius Bar

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Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Manufacturing Innovation Agenda

• Learn an emerging & broader Innovation Management model which also seeks innovations into Services, Process and Execution strategies.

• Balance Innovation & Lean.

Develop Innovation

Culture

• Learn to leverage Government initiatives

• Scale Government, Academia and Enterprise R&D and Technology Management tools.

• Utilize a four-step process to develop the plan

Innovation and

Technology Plan

• Learn to successfully transit Emerging Technologies and R&D into Commercial Products

• Conduct a CMMI™ based Maturity Analysis

• Integrate IT with OT

Implement

20

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Step Goals Process

1. Develop Strategies Link Corporate strategies to current and future products & technologies

rManagerRequirements Manager

2. Needs Assessments

Develop current and future technology needs and develop a technology plan

sManagerSelection Manager

3. Implement, Mature & Measure

Conduct the planned tasks, mature and measure

mManagerMulti-process Manager

4. Manage Manage and update the plan in an Open Environment

oiManagerOpen Innovation Manager

Steps : Technology & Innovation Plan

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Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Technology & Innovation Plan

sManager

rManager

mManager

eBusiness ServicesInnovation Cash Curve

Cu

sto

me

r

Deve

lop

er

Pro

gra

mm

atic

Te

ch

no

log

y

Ris

k

ICD

Ao

A

TRL/MRL

TD

S

oiManager

sManager Tech. Hype Cycle

22

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Technology Hype Cycle (Source : Gartner Group)

23

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Manufacturing & Technology Readiness(Source : NASA and DoD)

24

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Innovation Cash Curve(Source : Harvard Business School)

25

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Manufacturing Innovation Agenda

• Learn an emerging & broader Innovation Management model which also seeks innovations into Services, Process and Execution strategies.

• Balance Innovation & Lean.

Develop Innovation

Culture

• Learn to leverage Government initiatives

• Scale Government, Academia and Enterprise R&D and Technology Management tools.

• Utilize a four-step process to develop the plan

Innovation and

Technology Plan

• Learn to successfully transit Emerging Technologies and R&D into Commercial Products

• Conduct a CMMI™ based Maturity Analysis

• Integrate IT with OT

Implement

26

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Technology Strategies,

Needs, Threats &Opportunities

Analysis

Internal R&D

Federally Funded R&D(FFRDEC, SBIR)

Academic, Industrial& International R&D

CREs

CriticalResearchElements

fCRE – Long TermCRE to meet futureYears needs

tCRE – Short Term CRE to meet today’s needs

NewProduct A

NewProduct X

ExistingProduct X

TECHNOLOGY

TRINSITION

ExistingProduct A

Manage & Measure

ResearchTransition

Agreements

ResearchTransfer

Agreements

fCRE

tCRE

CTEs

CriticalTechnologyElements

Intellectual Property Management

R&D PortfolioManagement

Product Life CycleManagement

Technology Implementation

© Infologic, Inc.

27

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Innovation Maturity Analysis

LEVEL 1: InitialPoorly performed; Reactive

LEVEL 0: IncompleteNot performed; Partially performed

LEVEL 2: ManagedCharacterized as a Project & Reactive

LEVEL 3: DefinedProactive; Organization wide

LEVEL 4: QuantitativelyManagedMeasured & Controlled

LEVEL 5: OptimizingFocus on ProcessImprovement

Innovation not on the radar screen; No strong awareness of Innovation opportunities

Innovation opportunities recognized; Localized inconsistent Innovation experience

Approaches to Innovation recognized; Applied to Key projects; Usage consistency and collaboration among projects.

A form of Innovation management model implemented; Product, Process and Execution efforts are coordinated

Innovation Management model supported by consistent processes across the organization; Executive Management support; Matrices used.

Full Innovation Management model is implemented; Innovation Management is part of organization strategies; Creating and managing IP is key component of all key initiatives.

“if you can’t Measure; you can’t Manage” - Dr. Peter Drucker

Innovation Management Model CMMI™© Infologic, Inc.

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Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Manufacturing Innovation Agenda

• Learn an emerging & broader Innovation Management model which also seeks innovations into Services, Process and Execution strategies.

• Balance Innovation & Lean.

Develop Innovation

Culture

• Learn to leverage Government initiatives

• Scale Government, Academia and Enterprise R&D and Technology Management tools.

• Utilize a four-step process to develop the plan

Innovation and

Technology Plan

• Learn to successfully transit Emerging Technologies and R&D into Commercial Products

• Conduct a CMMI™ based Maturity Analysis

• Integrate IT with OT

Implement

29

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Proactive Model (Lean)

Adopt Change

Growth Model

(Innovation)

Takeaway : Demand-side (Manufacturers)

Adopt Change by integrating Information Technology (IT)and Manufacturing Operations (OT) Technology.IT include Cloud, Mobile, Big Data and Analytics.

OT include 3D Printing, Robotics and IoT.

Stagnant

Model

30

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Takeaway : Supply-side (Start Up Teams)

• Multi-disciplinary team (CALIt2, Beckman Center, Social Sciences)

• Adopt broad Innovation Model (also innovate Services, Processes)

• Consider Integration model (excellent OEM resources, e.g: Intel, Microsoft, IBM)

• Participate in U.S. Manufacturing Innovation initiatives (e.g. NNMI)

• Employ Best practices (TRL/MRL, Hype Cycle, etc.) analyses to measure R&D/Technology maturity. TRL/MRL Lunch & Learn on December 4

IP and Technology Development

• Position your products to move clients from existing business models (“stagnant” or “proactive”) to ‘Innovation”

• Consider Industrial vertical even if developing consumer products

(e.g; wearable has significant potential for manufacturing application)

• Partner with OEMs to market in Foreign countries• Adopt SaaS/OPEX model• Help manufacturing clients to integrate Information Technology (IT)

and Manufacturing Operations Technology (OT)

Marketing and Commercialization

31

Copyright © 2009 INFOLOGIC Inc. All rights reserved.

Conclusions & Call to Action

OJECTIVE : Maintain and Enhance the

American innovation Superiority

1. SUPPLY : Understand DEMAND-side issues and develop and position offerings accordingly.

2: DEMAND : Migrate from Stagnant or Proactive to Innovation models

3: INNOVATIONSTAKEHOLDRES: Assist SUPPLY and DEMAND enterprises to achieve their goals

I rest my case !

I N F O L O G I CThe logical approach to harness innovation

Presented by:

Has Patel

Infologic, [email protected]

(888) 325 0500 Ext. 100

INFOLOGIC, INC.

25 Palatine # 212

Irvine, CA 92612

www.infologic.com

National Manufacturing DayOctober 2, 2015

Manufacturing Innovation Model I rest my case !