innovation – a conversation 27-apr-20111 innovation a conversation on concepts terminology...

Innovation – A conversation

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Innovation a conversation on Concepts Terminology Management

Vijay SankaranExecutive Director IT, Global Application Development ServicesFord Motor Company


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“Innovate or Adapt? The Challenge of the New Decade"

Agenda Today

Innovate or Adapt?

Innovate or Die?

Innovate and Thrive!


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“The five essential entrepreneurial skills for success are concentration, discrimination, organization, innovation and communication.”

– Michael Faraday

Physicist (1791 – 1867)

Innovation – it’s Essential!


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• Invention:Creation of a new idea, mechanism, or process. Tacky, non-permanent glue was an invention.

• Innovation:Putting inventions into practice, translating capability into successful use. Creating change and creating value.“Post-it Notes” was an innovation.Innovation changes “a job to be done”

for someone.

Innovation and invention are synonymous

Misconceptions about Innovation


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• Invention:Creation of a new idea, mechanism, or process. Means to generate a concentrated beam of coherent light – the laser – was an invention.

• Innovation:Putting inventions into practice, translating capability into successful use. Creating change and creating value.“Laser eye surgery” was an innovation.

Innovation and invention are synonymous


Innovation creates whole new techniques, new ways of doing things.


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• 1947 – Scientists at Bell Laboratories (AT&T) invent the transistor -- patented, but the organization not able to promptly apply

• 1952 – AT&T licenses the invention -- for US$25,000 Texas Instruments (TI), Sony and IBM buy in too!

• 1954 – TI innovates: designs/manufactures first transistor radio• 1958 – TI innovates: integrated circuit (7400 series to follow!)• 1967 – TI innovates: hand-held calculator• 1973 – TI innovates: microprocessor

Innovation creates the change, change creates/alters the value stream.

Invention is the value generator



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Product performance innovation(features, efficiency, etc.) is just one of 10 possibilities!

There is only one type of Innovation



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Let us consider important innovations to be those that most changed peoples' lives.

Larry Keeleycofounder of Doblin Group

Types of Innovation

1. Weapons

2. Mathematics & the number zero

3. Money

4. Printing

5. Free markets and capital markets

6. Domesticated animals & agriculture

7. Property ownership

8. Limited liability

9. Participatory democracy

10. Anesthetics and surgery

11. Vaccines and antibiotics

12. Semiconductors

13. The Internet

14. Genetic sequencing

15. Containerized shipping

2. Mathematics & the number zero 7. Property ownership15. Containerized shipping


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InnovationThinking Outside the Box

“My team is having trouble thinking outside the box. We can’t agree on the size of the box, what materials the box should be constructed from, a reasonable budget for the box, or our first choice of box vendors.”

"We can't solve problems by using the same kind of thinking we used when we created them.“

– Albert Einstein


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InnovationThinking Outside the Box – Revisited

Sometimes thinking outside the box means innovating inside the box!


1. Ford invented the assembly line

2. Ford invented the automotive assembly line

3. Ford invented interchangeable parts

4. Ford invented division of labor

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Innovation requires a new invention


First automotive assembly installed by Olds Motor Company 1901

Increased production from 425 cars in 1901 to 2,500 in 1902!

12 years before Ford

Portsmouth Block Mills – 1800’s In 1802 used patented machinery to

manufacture interchangeable blocks for sailing ships.

Division of labor helped manufacturing transition from small craft shops to

early factories.

Efficiency gains lead to the rise of furniture and clothing manufacture

and other industries in the late 1800's.


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What did Ford do?


Ford combined three key elements:1. Moving assembly line2. Division of labor3. Interchangeable parts

Ford combined all these earlier innovations to create a new, innovative, effective means of

automotive mass production!Ford was a man, and a team.


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Just a history lesson?

Combinatorial Innovation

Ford combined three key elements:

1. Moving assembly line

2. Division of labor

3. Interchangeable parts

Combinatorial Innovation.

“Mashups”

Huge innovation opportunity for IT!

Cloud Computing

SOA, Services

Standards, APIs, Protocols, Service Bus


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“You have to spend as much time directing your innovation and creativity to fostering a culture of creativity and a receptiveness to innovation as you spend on the ideas themselves.”

– Bill Buxton Pioneer in the human–computer

interaction field.

Innovation – The time challenge

http://upload.wikimedia.org/wikipedia/commons/b/b0/Bill_Buxton.jpg


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Innovation Innovation!!

Moving from Moving to

Closed Innovation Open Innovation

Local innovation resourcing Global innovation resourcing

Expert-led innovation Lead-user innovation

Dedicated innovation/research teams only Democratized innovation with employeesDemocratized innovation with customersCo-creation, co-design

Sustaining innovation Sustaining +disruptive innovation

Product Feature/performance innovation Multiple dimensions of innovation: business model, distribution channel, financing, process, etc.

Innovations as a competitive advantage Innovation as the competitive advantage


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Evolve to Support Innovation

Innovation is the objective of just dedicated research teams or

individuals

Innovation is a natural element of the global organization’s

day-to-day life

Innovation is the exception to our business model

Innovation is supported through processes, actions and

behaviors

Innovation is focused on technology and tools

Innovation encompasses the entire spectrum of our

capabilities

Innovation is viewed as disruptive

Innovation is valued as disruptive

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Evolving From… Evolving To…


Evolving From…

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Some views of innovation


18Enterprise Technology/EAEFord Motor Company IT

In-Vehicle Computing

In-Vehicle Project #3In-Vehicle Project #2

In-Vehicle Project #1

Initiatives / Process / Portfolio



Innovation ProcessD

eli

ve

rab

les

The e4 process is streamlined to introduce technology in a systematic fashion

Ow

ne

rs

Experiment

• Illumination of new ideas

• Recombination of existing ideas based on business need

Individuals

Informal Research• Sandbox• Position Papers

Evaluate

• Drive use cases around ideas

• Prototype new technology

x-functional team

Formal Research• Technology vision and

strategy alignment• Technology/Business

PoCs• Research Products

Economize

• Ensure core ideas can be created

• Create business cases for core ideas

Production Planning• Business Use Cases• Business Value

Proposition• Eng Project Charter• Tech Architecture

Owner

Production • Pilots • Arch and Patterns• Industry Standards• End Products• Services

Engineer

• Architect Platform

• Define products

• Integrate into environment

Deployment Team



Innovation Portfolio

• 10 ET Workstreams provide focus• ET e4 Process view promotes disciplined innovation• Completion dates drive results• Business Partner Engagement strengthens business focus



Portfolio Detail View



Project and PoC Detail

Innovation – A conversation Training Themes

Subject Matter Expert/Coach• Innovation tools• Innovation methods• Groups & Teams in Organizations• Integrated Product Development

Project• Industrial Design Fundamentals• Design History

Management Focus• Tactics for dealing with the internal politics and resistance to change that can threaten

innovation initiatives and early-stage developments• Get the right mix of people and skills to generate innovative ideas efficiently• Develop the processes required to support these people• Build cultures that encourage innovative behaviors• Decide which ideas are right for investment, and which new business opportunities

are worth pursuing

Generalist Everybody• Breakthrough ideas are a matter of

process, not luck • Tips for launching your new idea • When to refine or when to revise a

new idea• How to organize your team and

processes for developing Big Ideas • How to land on a breakthrough idea

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• Democratize Innovation– Allow everyone to participate – by influence or action. – Encourage more innovation

• Promote an Innovative Environment– By rewarding and recognizing innovation.– Creating a culture of idea sharing.– Giving people an opportunity to make a difference.

• Extract valuable ideas from the enterprise– Learn about the organization– Learn from the organization

Reward & Recognition – Why?

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Good time to be a mammal!

Additionally, it’s a good time to

embrace change.

Source: Gary Larson

“The picture’s pretty bleak, gentlemen. The world’s climates are changing, the

mammals are taking over, and we all have a brain about the size of a walnut.”

“Innovate or Adapt?” – Revisited


END

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Innovation


The future is already here – it's just not evenly distributed.

- William Gibson, 2003

Thought on the Future

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innovation – a conversation 27-apr-20111 innovation a conversation on concepts terminology...

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