University of Portland - Innovation Systems and Controls Class - Spring 2013

17/8/2012

INNOVATION: SYSTEMS AND CONTROLS

UNIVERSITY OF PORTLANDSPRING 2013

The Strategy + Innovation Group | All Rights Reserved - Copyright (c) 2

PRESENTER BIOCurrently:

Managing Partner for the Strategy + Innovation Group

Previously: Intel Corp:

Senior Instructor for Innovation Methods & Innovation Program Manager Recruited and trained 13 instructors, trained +850 engineers,

PM’s, Technology developers, and R&D personnel Quality and Reliability Engineer Technology Development Program Manager Manufacturing Engineer Customer Program Manager

Education: BS in Industrial Manufacturing Engineering TRIZ Expert (Level 3), 240 hours of training and education,

Innovation Master, Six Sigma, Lean & DFSS Greenbelt

7/8/2012


CORP USERS OF SYSTEMATIC INNOVATION METHODS

All brands, logos and trademarks remain the sole property of their respective owners

…improves an engineer’s/problem solvers ability to get to fundamental root cause, along with suggesting innovative solutions to solving problems 1/3 of Top 25 Most Innovative Companies (BusinessWeek)

use Systematic Innovation Methods, and ½ of the Top 10 of those

Compelling results show these have been used to help tough solve technical problems enhancing innovativeness of world class companies

Companies Now using Systematic Innovation Methods:

http://images.google.com/imgres?imgurl=http://www.gizmodo.com/images/SamsungLogo_01_300.gif&imgrefurl=http://www.gizmodo.com/gadgets/pcs/index.php&h=225&w=300&sz=3&tbnid=2XzwzBk-DjQJ:&tbnh=83&tbnw=111&hl=en&start=2&prev=/images?q=samsung+logo&svnum=10&hl=en&lr=&rls=GGLG,GGLG:2005-36,GGLG:en&sa=N

http://images.google.com/imgres?imgurl=http://www.elszo.hu/whirlpool-logo.jpg&imgrefurl=http://www.elszo.hu/akciok.htm&h=163&w=300&sz=10&tbnid=smP4kF4xs38J:&tbnh=60&tbnw=111&hl=en&start=2&prev=/images?q=whirlpool+logo&svnum=10&hl=en&lr=&rls=GGLG,GGLG:2005-36,GGLG:en&sa=N

http://images.google.com/imgres?imgurl=http://uploads.2tm.it/uploads/1/20/allegato/pf.siemens.20050111.jpg&imgrefurl=http://www.2tm.it/portfolio_all.aspx&h=180&w=300&sz=8&tbnid=JpJg1wq6Y98J:&tbnh=66&tbnw=111&hl=en&start=3&prev=/images?q=siemens+logo&svnum=10&hl=en&lr=&rls=GGLG,GGLG:2005-36,GGLG:en

http://www.company.ferrari.com/cgi-bin/test.dll/ferrari/scripts/home.jsp?language=ENGLISH

http://images.google.com/imgres?imgurl=http://www.cs.northwestern.edu/~watsonb/support/pgcom_logo_top.jpg&imgrefurl=http://www.cs.northwestern.edu/~watsonb/support.shtml&h=61&w=123&sz=8&tbnid=pULj0RiVsb4J:&tbnh=41&tbnw=84&hl=en&start=8&prev=/images?q=proctor+and+gamble+logo&svnum=10&hl=en&lr=&rls=GGLG,GGLG:2005-36,GGLG:en

http://images.google.com/imgres?imgurl=http://www.seattleu.edu/scieng/engpc/stdntprj/ME051/Boeing_logo_r.gif&imgrefurl=http://www.seattleu.edu/scieng/engpc/stdntprj/ME051/&h=148&w=200&sz=4&tbnid=zQPbyxsTqCoJ:&tbnh=73&tbnw=99&hl=en&start=3&prev=/images?q=boeing+logo&svnum=10&hl=en&lr=&rls=GGLG,GGLG:2005-36,GGLG:en

http://images.google.com/imgres?imgurl=http://www.mtech.edu/career/images/Shell_logo.gif&imgrefurl=http://www.mtech.edu/career/Corporate%20Supporters.htm&h=227&w=262&sz=4&tbnid=iPQnnI4oLs4J:&tbnh=92&tbnw=107&hl=en&start=3&prev=/images?q=shell+logo&svnum=10&hl=en&lr=&rls=GGLG,GGLG:2005-36,GGLG:en


INNOVATION BARRIERS

Lack of understanding that everyone is innovative

Fear of failure

Fear of criticism

Lack of a conducive environment/motivation (management)

Lack of time

7/8/2012

Lack of understanding of innovation process

Team culture too focused on status quo

Lack of skills/knowledge that drives insights and ideas

Lack of awareness about reuse as a form of innovation

‘Not invented here’ syndrome prevents use

Innovation:a commercially successful

step change advance

(not to be confused with ‘optimization’)

This the typical way most of us approach improving our businesses and technology

The Strategy + Innovation Group | All Rights Reserved - Copyright (c) 67/8/2012

76% of Innovation Initiatives Fail

60% outright fail and another 16% make it to market, but lose

money

Only 24% are successful and

profitable

Source: “Innovator’s Dilemma” (2003)


CurrentReality:

98% Failure

Rate


WHAT DOES A 98% FAILURE RATE IMPLY?

Extremely costly making innovation “bets”, but We cannot call it management or investment

– Results Do Matter

Clearly No Established Process for innovating

Managing the Risk of Innovating is ineffective

Over 90% of innovation attempts fail before they reach the market

Over 90% of those attempts that do reach the market will also fail

Over 90% of innovations are delivered late, over-budget or at a lower quality than was originally planned

Over 90% of collaborative innovations fail

MORE INNOVATION STATISTICS


WHY WE ACTUALLY FAIL AT INNOVATION HAS MULTIPLE SOURCES

10%

18%

44%

20%

28%Coordination

Production

Route to market

More Ideal Solution

Market Demand

Sources of Innovation Initiative Failure: SME's, Startups


A LITTLE DIFFERENT FAILURE RATE AT MNC’S

34%

12%

8%

23%

26% Coordination

Production

Route to market

More Ideal Solution

Market Demand

Sources of Innovation Initiative Failure: MNC's / Large Corporations

THE HEART OF THE PROBLEM

CustomerNeed

Technical Solution(protectable IP)

Ability of an OrganisationTo successfully exploit the IP

Only when all three are in place is there an opportunity for successful commercialisation

VoC VoS

VoBLegend:VoC: Voice of the CustomerVoS: Voice of the SystemVoB: Voice of the Business


Traditional Innovation Risk:The Risk of Decision MakingP

red

icti

on

Learning

% R

isk

Ac

cu

rac

y o

f D

ec

isio

n M

akin

g

Time

Wild Guesses 0%

25%

50%

75%

100%

25%

50%

75%

100%

InformedEstimates

ReliableForecasts


14

Luck isn’t Enough


OPTIMIZATION IS DEFINED BY BOUNDARY CONDITIONS OF THE

SYSTEM

3/12/2013

Optimization occurs at or below the apex of at least

two conflicting parameters

Contradictions define the limits of

performance for all systems

Parameters ‘x’ and ‘y’ limit performance of ‘z’


BIASES ARE ADDRESSED LOOKING FOR CONTRADICTIONS AND USING FUNCTIONAL

ANALYSIS OF THE SYSTEM

3/12/2013

X Innovation occurs above the apex of the paraboloid

Since Contradictions define the limits of all systems, if we purposefully break them we gain performance in the ‘z’ axis

Parameters ‘x’ and ‘y’ limit performance of ‘z’


Systematic Innovation Risk:Reducing the Risk of Decisions

Pre

dic

tio

n

Learning

% R

isk

Ac

cu

rac

y o

f D

ec

isio

n M

akin

g

Time

Wild Guesses

0%

25%

50%

75%

100%

25%

50%

75%

100%

InformedEstimates

ReliableForecasts

Utilizing Systematic Innovation Methods: Breaking Contradictions, Inventive Principles, Functional Modeling, Evolutionary Trends, Laws of Engineering Evolution, Rapid / Virtual prototyping, Ethnographic analysis, etc… Dramatically Reducing Risks of Human Biases and the Issue of Trial & Error drops significantly

18

THE INTEL TRIZ STORY


What is TRIZ?

A Systematic Innovation methodology, a tool set, a knowledge base, and a model-based approach for generating innovative ideas and solutions for problem solving.

TRIZ expands approaches developed in systems engineering and provides tools and systemic methods for use in:

Problem formulation System analysis Failure analysis Patterns of system evolution (both 'as-is' and 'could be')

TRIZ, in contrast to techniques such as brainstorming (which is based on random idea generation), is an algorithmic approach to the invention of new systems, and the refinement of old systems, with the goal of creating additional value.

Source: http://www.wikipedia.org/

TRIZ is the Russian acronym for the Theory of Inventive Problem Solving, pronounced as trees


200,000 *

40,000

Global Patents

* More than 3,000,000 patents have been analyzed making TRIZ statistically significant, repeatable and reliable set of procedures.

Key Discoveries1. Common Solution patterns repeat on

Problems across industries & sciences 40 Inventive Principles for solving Problems

2. Technical evolution follows predictable trend (it obeys “laws”)

Technology Trends: laws to evolve a technical system to the next gen.

3. Scientific effects jumped from one field to others Scientific Effects used in one field can solve problems in others

TRIZ is a family of tools providing potential solution paths to technical problems.

Were Analyzed for Innovation

Were Mined for…

TRIZ - BACKGROUND

Genrich Altshuller

Key Message: There is a world of technological solutions, invented in other industries, that can be applied to technical challenges in your industry


THE BENEFITS OF TRIZ?The primary job of engineers is to solve technical problemsTRIZ adds to the engineer’s tool box by:

Seeing how to come up with breakthrough concepts and solutions

Increasing individual creativity by tapping into other ways to solve problems not otherwise thought of

Multiplying the number of potential solutions that could solve a problem

Helping to zero in on the actual problem area, identifying and focusing on the real problem versus symptoms and effects

Shortening the amount of time in identifying multiple problem definitions

Shortening the time to generate root cause solutions


22

How TRIZ basically Works

The specific problem

TRIZ Generalsolutions

TRIZ General problem

Specific solutions for current problem

Problem StatementRaised to

higher level of abstraction

Solutions suggested on how similar problems resolved in other industries, sciences

& technologies“Focusing the

Creativity” down known solution

paths

Generates multiple solution

pathsGeneral flow of how TRIZ helps

to resolve problems and focus

engineers thinking

TRIZ Software platforms don’t do the thinking, they only automate the process, providing a portal to the methods and tools

Decision making about what works/doesn’t work is still the responsibility of the problem solver.


FAB SORT MFG’S AGE OF PROBLEMS SOLVED

Mfg Process #1 Mfg Process #2 Mfg Process #3 Mfg Process #4


0

0.5

1

1.5

2

2.5

3

3.5

1 2 3 4 5 6 7 8 9 10 11 12 13

Site

Ag

e o

f p

rob

lem

(ye

ars)

COMPONENT MANUFACTURING’S AGE OF PROBLEMS SOLVED

TRIZ proven to provide solutions to long standing problems!

Innovative solutions can be found for problems ≥ 2 years old !!

MY CRSite #1 Site #2

7/8/2012 The Strategy + Innovation Group | All Rights Reserved - Copyright (c) 25

PERFORMANCE METRICS OF INTEL TRIZ PROGRAM

EstimatesProfitability Gains:

$63.5MMProductivity Gains:

$149MM

Total Benefit: $212.5MM USD

Avg. ROI / Person trained in Systematic Innovation Methods:

$250K / person


WHY THE INTEL TRIZ PROGRAM WAS SUCCESSFUL

1. STRATEGIC DIAGNOSIS: WORKED ON PROBLEMS THAT THE ORGANIZATION WANTED ADDRESSED SOLVING COMPLEX PROBLEMS THAT WEREN’T BEING SOLVED OTHERWISE e.g. INTEL MANUFACTURING (TMG) WASN’T LEARNING INNOVATION

METHODS, THEY WERE LEARNING COMPLEX PROBLEM SOLVING

2. BUILT UPON ALREADY INSTITUTIONALIZED PROBLEM SOLVING METHODS INTEL 7 STEP PROBLEM SOLVING INTEL USE OF TQM METHODS (E.G. SPC, ETC..) MANUFACTURING PROCESSES HAD BEEN “LEANED” OUT OVER YEARS

3. LIMITED THE # OF TRIZ TOOLS TRAINED TO JUST WHAT WAS NEEDED REQUIRED USE OF INNOVATION PROBLEM SOLVING TEMPLATES, MAINTAINING

DISCIPLINE IN THE CORRECT USE OF THE METHODS ONLY CANDIDATE INSTRUCTORS WERE EXPOSED TO ALL OF THE TRIZ TOOLS


TRIZ INTEGRATED INTO SPS

Defining the Problem

Developing Solutions


4. DEVELOPED A CADRE OF LOCAL / SITE LEVEL TRAINERS VIA SELF-SELECTION

INSURING THAT WE GOT THE MOST ENTHUSIASTIC AND COMMITTED INDIVIDUALS TO SUPPORT AFTER THE SENIOR INSTRUCTOR DEPARTED THE SITE

PROVIDING A SELF-SUSTAINABILITY FOR THE TRAINED ORGANIZATION

5. REQUIRED REAL PROBLEMS BE BROUGHT TO TRAINING FROM THE FACTORY AND DESIGN COMMUNITIES – TACTICAL AND STRATEGIC

SOMETHING THAT STUDENTS WERE ALREADY RESPONSIBLE FOR SOLVING INSURED LEARNING WAS ONLY APPLIED ON REAL PROBLEMS, NOT AN

ACADEMIC / CASE STUDY ACTIVITY

6. PRESENTING RESULTS TO FACTORY / SENIOR MANAGEMENT INSURING STUDENT ACCOUNTABILITY TO TACTICAL AND STRATEGIC

MANAGEMENT GOALS PROVIDING VISIBILITY TO MANAGEMENT ON RELEVANCE OF THE

PROGRAM TO TACTICAL AND STRATEGIC GOALS AND OBJECTIVES



7. INVOLVED FINANCE @ ALL SITES TO EVALUATE ROI OF PROJECTS FINANCE VALIDATED / SUPPORTED EFFORTS – PROFITABILITY MATTERS DIRECTLY TIED INNOVATION EFFORTS TO WHAT THE COMPANY NEEDED

8. GOT INTEL LEGAL AN ADVOCATE FOR TRIZ PREVIOUS ATTEMPTS AT TRIZ PROLIFERATION, DID NOT EFFECTIVELY

COMMUNICATE OR ALIGN WITH LEGAL WHO OPPOSED ITS EARLIER ADOPTION

9. USED CHANGE AGENCY METHODS, STRATEGIES & TACTICS TIED INTO THE INTEL VALUE DELIVERY MODEL A STEP CHANGE APPROACH TO EMBEDDING CAPABILITY, ONE GROUP AT A

TIME. NOT TRYING TO DO THE WHOLE COMPANY ALL AT THE SAME TIME DISCIPLINED APPLICATION OF CHANGE FORMULA AND MANAGING THE ICEBERG

OF RESISTANCE

DROVE ACCOUNTABILITY UP, DOWN AND ACROSS THE ORGANIZATION




10. HIRED / COACHED BY THE BEST TRIZ MASTERS & EXPERT CONSULTANTS INTEL COULD GET IN THE FIELD

INSURED THAT ORGANIZATION HAD THE BEST AND MOST COMPREHENSIVE TRAINING

11. SMALL WINS, LIMITING DEPLOYMENTS ONLY TO THE NEEDY

BUILDING GRASS ROOTS SUPPORT IN FRONT LINE PERSONNEL

12. BUILT / LEVERAGED A COMMUNITY OF PRACTICE (COP) A COMMUNICATION PORTAL BETWEEN FACTORIES, BUSINESS UNIT

AND R&D PERSONNEL USING THE METHODS AND LANGUAGE OF INNOVATION AND COMPLEX PROBLEM SOLVING


WHIRLPOOL’S PROCESS FOR INNOVATING

3/12/2013

Source: www.mixprize.org



JTBD and

Diagnosis

3/12/2013

Integrating the Innovation Life Cycle into the Product Life

Cycle

Planning ProductionDevelopment

Implementation

(IPA)

ApprovalMeetings:

ShipReleaseApproval(SRA)

DevelopmentInvestmentApproval

(DIA)

ProductDocuments:

ProductRequirements

ProductImplementation

DesignSpecifications

QualificationReports

ProductOverviewProposal

(POP)

ProductDiscontinuance

Approval(PDA)

ExplorationBusiness

RequirementsDocument

(BRD)

Plan

PlanApproval

Strategic Goal

and Limits

Diver

gent

Convergent

AnalysisDiv

ergen

t

Convergent

Problem Definition

Diver

gent

Convergent

Competitive Frameworks

and Innovation

Methods

Diver

gent

Convergent

Solution Finding

Diver

gent

Convergent

Adoption / Rapid

PrototypingImplementation

Diver

gent

Convergent

ExperimentingDesign for Innovation

in Manufacturing

After Action ReviewPLC

ILC

Diver

gent

Convergent


Managing the Interdepartmental

Politics• Managing the differences between tops down and bottom’s

up approach

• Fostering inter-departmental information flows and by fostering a culture of transparency.

• Institutionalizing participative corporate foresight processes

Recommendation: a generic strategic buckets approach to portfolio management that implicitly addresses this problem.

3/12/2013


TYPICAL TOP DOWN PERSPECTIVES

CEO’s Perspective

Grow topline business

Grow Revenues

Launch new products / services

Globalize the business

COO’s Perspective

Execute current priorities

Operational efficiencies

Effective processes

People priorities

CFO’s Perspective

Grow bottom line

Reduce costs

Manage Risks

Compliance

What’s the Next BIG Thing?

What’s Today’s BIG Challenge?

What’s our Next BIG Risk?

3/12/2013

Source: Cognizant’s submission to MIXprize.org


EXAMPLES OF STRATEGIC BUCKETS

Portfolio management splits the overall NPD resources a priori to the formulation of project ideas on different NPD programs as bundles of NPD projects.

Projects compete with like projects instead of with one another across the buckets

3/12/2013

Development of advanced

technologies

Cost Reductions

Process & Product

Improvements

Development of Completely new

products / services


INNOVATION SYSTEM CONTROLS

Focus on problems that need to be solved, customer’s and production processes (needs)

Learn and implement systematic innovation tools across the org (methods and people)

Start simple where there are already issues, (look for contradictions)

Support and enable the products, services, R&D, and process development activities (idea conversion)

Tie projects to revenue, cost savings and productivity benefits (metrics)

3/12/2013


INNOVATION SYSTEM CONTROLS

Connect with others in the organization, get their support, enable their activities and agendas (key initiatives)

Communicate up down and across the organization on the value add (dashboards)

Communities of practice are vital (culture)

Big wins are nice, but look for multiple small wins from all corners of the organization, they accumulate (visibility and rewards)

3/12/2013


Q & A

7/8/2012