Innovation
A Driver for Value Creation
by QMD
Innovation and Value Creation Technical Committee
http://www.asq-qm.org/innovation-and-value-creation
Innovation Creates Value
• Innovation is Profitable…IBM
– Companies with fastest profit growth
• Innovation must be Radical…Morgan Stanley
– Create ten times more shareholder value
• Innovation needs Speed…Accenture
– Commercialize patents fast and outperform by 1000%
Quality Management Division
Innovation and Value Creation Technical Committee
What Is Innovation?
• In – nova – tion means
…..doing things…..
• In - a new – way
So, how can we define innovation? >>>
Quality Management Division
Innovation and Value Creation Technical Committee
What Is a Definition of Innovation?
Innovation is
the successful conversion of
new concepts and knowledge into
products and processes that
deliver new customer value
in the marketplace
So, why is this important? >>>
Quality Management Division
Innovation and Value Creation Technical Committee
We Need Innovation Because…
• The World is Changing – for example
– In the Market Place, Asia is growing
– Our population is Aging
– Technology is becoming Digital
– The environment is warming
Quality Management Division
Innovation and Value Creation Technical Committee
We Need Innovation Because…
• The World is Changing – for example
– In the Market Place, Asia is growing
– Our population is Aging
– Technology is becoming Digital
– The environment is warming
It is not the strongest of the species that survive,
nor the most intelligent, but ….
the one most responsive to change.- Charles Darwin
So, how do we respond to change ? >>>
Innovation Must be Radical
• Photographic Film >>>> Digital Photography
• Notebook Computers >>>> BlackBerry
• Electricity Companies >>>> Fuel Cells
• Open Surgery >>>> Arthroscopic Surgery
So, is there a process for radical change?
Quality Management Division
Innovation and Value Creation Technical Committee
What Is the Innovation Process?
• The Innovation process is
• The conversion of
New Knowledge into
New Products and Services to enable
New Ways of doing things
What does the process look like?
Quality Management Division
Innovation and Value Creation Technical Committee
The Innovation Process Flow Is:
• 1) Find the Opportunity and then
• 2) Connect to Conceptual Solutions
Quality Management Division
Innovation and Value Creation Technical Committee
The Innovation Process Flow Is:
• 1) Find the Opportunity and then
• 2) Connect to Conceptual Solutions
Select the preferred Solution and then
• 3) Make the solution User Friendly
• 4) and then get it Get to Market
Showing this as a model >>>
Quality Management Division
Innovation and Value Creation Technical Committee
The Innovation Process
Quality Management Division
Innovation and Value Creation Technical Committee
Finding the „Opportunity‟
•
•
•
•
The World is changing
Know where your customers feel pain
Change Product not Customer
Find „Green Field‟ Market Space
Necessity is the mother of Invention - Plato
Quality Management Division
Innovation and Value Creation Technical Committee
Connect to the Solution
• Connect to a new environment…Henry Ford
• No sudden epiphany… Archimedes
• Find many solutions – Linus Pauling
• Sacrifice the sacred
If I had an hour to save the world
I would spend 55 minutes defining the problem and
5 minutes finding the solution. - Einstein
Quality Management Division
Innovation and Value Creation Technical Committee
The Tipping Point
•
•
•
•
Need data and information for decisions
Set strategy….time, skills, $
Narrow focus
Change mode from „loose‟ to „tight‟
If you see a bandwagon, its too late – James Goldsmith
Quality Management Division
Innovation and Value Creation Technical Committee
Innovation – Executing the Solution
Creating Knowledge
Executing the Solution
Quality Management Division
Innovation and Value Creation Technical Committee
Development
• Make it “user friendly”
• Be fast and not secretive
• Involve the customer
Genius is 1% inspiration and 99% perspiration
– Thomas Edison
Quality Management Division
Innovation and Value Creation Technical Committee
Executing the Solution
• Best ideas don‟t always make it
• Create a simple „Value Proposition‟
• Work with a Market Partner
• Move with speed…
– Remember Alexander Graham Bell and Elisha Gray
The best way to predict the Future is to create it
– Peter Drucker
Quality Management Division
Innovation and Value Creation Technical Committee
Innovation Needs Different Types
Creating Knowledge
needs
Creators and Connectors
Executing the Solution
needs
Developers and Doers
Quality Management Division
Innovation and Value Creation Technical Committee
What Is Your Best Role in This Process?
• Are you good at
– Creating opportunities?
– Linking opportunities to solutions?
– Making solutions practical?
– Getting solutions out there?
You can find out from a simple assessment
Quality Management Division
Innovation and Value Creation Technical Committee
What Type of Innovator Are You?
The Innovation Committee has provided a
simple self assessment find what type of an
innovator you are
The assessment looks like this >>>
Quality Management Division
Innovation and Value Creation Technical Committee
Creator, Connector, Developer or Doer?
1
I ‘Connect the
Dots’
1
I get things done
4
I like Possibilities
2
I bring things
‘down to earth’
3
2
I need to
understand
2
I make things work
3
Everything has a
good and bad side
4
There has to be a
right answer
1
3
Don’t tell me what
to do
4
Give me facts not
theory
2
I create choices
3
I like to analyze
data
1
4
A Concept must
be sound
2
I like ‘energy’
1
Don’t fuss with
details
4
I like precision
3
5
I think things
through
3
I take risks
2
I like to hear about
problems
1
I focus
4
6
I like the big
picture
2
I find a way that
works
3
I want to own the
problem
1
I am thorough
4
7
I like to define the
problem
2
I push for
acceptance
1
I find out the facts
3
I Plan
4
TOTAL
CONNECTOR
16
TOTAL
DOER
16
TOTAL
CREATOR
18
TOTAL
DEVELOPER
20
Self Assessment
For the e-version of the self assessment go to
www.petermerrill.com/self-assessment
You can download a pdf which explains each type
of innovator
Have your team members assess themselves to
better understand each other
Quality Management Division
Innovation and Value Creation Technical Committee
Your Next Step?
• Go to the website
( http://www.asq-qm.org/innovation-and-value-creation )
• Contact the QMD Innovation Committee
(Chair; Jane Keathley [email protected]
• Assess yourself
(go to www.petermerrill.com/self-assessment )
Quality Management Division
Innovation and Value Creation Technical Committee
Backup Slides
I&VC Committee Mission
• Turning Good Ideas into Great Results
• Mission Statement:
To extend strategic development and problem-solving
methodologies into creative design practices to satisfy
increasingly sophisticated customers and marketplace
environments with innovative solutions; to promote an
environment where innovative ideas are actively
planned, executed, and rewarded, and teach others to
do the same.
I&VC Committee Charter
• Responsible for developing high-level content,
in the form of articles, books, conference
publications, courses, web-based media, and
other products, that:
– Educate executive, business, and quality professionals in
the development of business strategies that include
innovation, as well as the technologies, methodologies and
tools needed for effective innovation management.
– Provide business leaders with necessary perspective to
support innovation and value creation as part of quality
management.
– Maintain relevant content for the CMQ/QE certification and
other Bodies of Knowledge.
Innovation System Framework
• Organizations that evolve a
framework for long-term innovation
react faster to threats or surprises,
are more likely to take effective
action, and are better at sustaining
the momentum of change. As such,
they are more likely to succeed.
BS 7000-1 DMS. Guide to managing
innovation
Innovation System Framework
• Changes in the organizations
environment could require innovation in
order to meet the needs and
expectations of interested parties. The
organization should:
– Identify the need for innovation
– Establish and maintain an effective
and efficient innovation process
ISO 9004:2009, Sect 9.3.1
Innovation System Framework
• Innovation can be applied to issues at all
levels, through changes in
– The organizations management
system
• To ensure that competitive advantage is
maintained and new opportunities are
utilized, when there are emerging
changes in the organizations environment
ISO 9004:2009, Sect 9.3.2
Web Resources
ASQ Quality Management I&VC
http://www.asq-qm.org/innovation-and-value-creation
ASQ Discussion Board - Innovation Network
http://www.asq.org/discussionBoards/forum.jspa?forumID=64
Front End of Innovation (FEI) - LinkedIn Group
http://www.linkedin.com/groups?gid=41615&trk=myg_ugrp_ovr
Standards
• ISO 9004:2009: Managing for the
sustained success of an organization – A
quality management approach
• Section 9 – Improvement, Innovation
and Learning
• BS 7000-1: 2008, Design Management
Systems. Guide to managing innovation
Some noteworthy articles:
The Contribution Revolution: Letting Volunteers Build Your
Business
Scott Cook Harvard Business Review (HBR) Oct 2008
Is It Real? Can We Win? Is It Worth Doing?
Managing Risk and Reward in an Innovation Portfolio
George S. Day HBR Dec 2008
The Customer-Centered Innovation Map
Lance A. Bettencourt, Anthony W. Ulwick HBR May 2008
Tapping the World's Innovation Hot Spots
John Kao HBR May 2009
Buyer's Guide to the Innovation Bazaar
Satish Nambisan, Mohanbir Sawhney HBR June 2007
Some noteworthy books:
Blue Ocean Strategy: How to Create Uncontested
Market Space and Make Competition Irrelevant
W. Chan Kim
ISBN-13: 978-1591396192
Harvard Business School Press; 1st edition (February
3, 2005)
Innovation Generation: Creating an Innovation
Process and an Innovative Culture
Peter Merrill
ISBN-13: 978-0873897341
Publisher: ASQ Quality Press (May 7, 2008)
Some noteworthy books:
Crowdsourcing: Why the Power of the Crowd Is
Driving the Future of Business
Jeff Howe
ISBN-13: 978-0-307-39620-4
Publisher: Crown Business; 1 edition (August 26, 2008)
The Innovator's Toolkit: 50+ Techniques for
Predictable and Sustainable Organic Growth
David Silverstein, Philip Samuel, Neil DeCarlo
ISBN-13: 978-0-470-34535-1
Publisher: Wiley (October 27, 2008)
Some noteworthy books:
The Innovator’s Solution: Creating and Sustaining
Successful Growth
by Clayton Christensen, Michael Raynor
ISBN-13: 978-1-57851-852-4
Publisher: Harvard Business School Publishing; (2003)
Open Innovation: The New Imperative for Creating
and Profiting from Technology
Henry Chesbrough
ISBN-13: 978-1-4221-0283-1
Publisher: Harvard Business School Publishing;
(2006)