Innovation Blueprint for the New World

INNOVATION CRAFTING IN
GLOBAL ENTERPRISES –
Blueprint for a New Organization for the
New World
crafting innovation together

17th March 2010, Bangalore

Navneet Bhushan, navneet.bhushan@crafitti.com
+91 9902766961
© CRAFITTI CONSULTING

THANK
YOU …..

Crafitti Consulting
Crafting innovation together . . .
www.crafitti.com

Navneet Bhushan (navneet.bhushan@crafitti.com)

© Crafitti Consulting Private Limited 2

We Are All Born Creative….
BUT
It is “Taught OUT of US”

A child’s Creativity
How Many of
Decreases 90% from 5 to
us Are 40?
age 7? At 40 it is mere
2% of what we had!!!!!!!
Copyright Navneet Bhushan

The Magical Number Seven, Plus or Minus Two:
Some Limits on our Capacity for Processing Information
George A. Miller (1956)
Harvard University
First published in Psychological Review, 63, 81-97.

[1] This paper was first read as an Invited Address before the Eastern Psychological Association in Philadelphia on April 15, 1955.

The point seems to be that,
as we add more variables to
the display, we increase the
total capacity, but we

decrease the accuracy for
any particular variable. In
other words, we can make
relatively crude judgments of
several things simultaneously.

Copyright Navneet Bhushan 2007


5 © Crafitti Consulting Private Ltd.

Killer Phrases Are Not Used During Idea
Generation*
1. "Yes, but. . . " 21. "The boss will never go for it."
2. "We tried that before." 22. "It's too far ahead of the times."
3. "That's irrelevant." 23. . . . laughter. . .
4. "We haven't got the manpower." 24. . . . suppressed laughter. . .
5. "Obviously, you misread my request." 25. . . . condescending grin. . .
6. "Don't rock the boat!" 26. . . . dirty looks. . .
7. "The boss (or competition) will eat you alive." 27. "Don't fight city hall!"
8. "Don't waste time thinking." 28. "I'm the one who gets paid to think."
9. "Great idea, but not for us." 29. "What will people say?"
10. "It'll never fly." 30. "Get a committee to look into that."

11. "Don't be ridiculous." 31. "If it ain't broke, don't fix it."
12. "People don't want change." 32. "You have got to be kidding."
13. "It's not in the budget." 33. "No!"
14. "Put it in writing." 34. "We've always done it this way."
15. "It will be more trouble than it's worth." 35. "It's all right in theory. . . but. . ."
16. "It isn't your responsibility." 36. "Be practical!"
17. "That's not in your job description." 37. "Do you realize the paperwork it will create?"
18. "You can't teach an old dog new tricks." 38. "Because I said so." * Reference: “What A Great
19. "Let's stick with what works."C 39. "I'll get back to you." Idea” by Charles “Chick”
Thompson, 1992,
20. "We've done all right so far." 40. . . . silence. . . HarperCollins Publishers

While the defining measurement of
(old world) was weight – … – the
defining measurement of the
globalization system is speed – speed
of commerce, travel, communication
and innovation
Thomas L. Friedman, “The Lexus and Olive Tree”

Flattening

World

… And we don’t even realize it …

Complexity in a
Flattening World
Rapid Explosion Human Processing Limits
of Complexity (The Magic Number 7 ± 2)
Framing Limits
Confidence

 Connections create Value and Dependencies
Number of alternatives

create complexity
Time pressure  Future is approaching us Faster than History is
Need for analysis leaving us!
Information de-coherence  Increasing distance between user requirements
Connections of what they really need versus what they want.
Networks  With every choice we make today we Kill
many possible futures

Competitive Advantage- Over Ages

How Fast
Co-Create
Extent of Connectedness

How Fast
Innovate
How much
Actionable
How much Knowledge

and Quickly
can be
How much Informed
How much of
Agricultural
can be In the Connected Age –
produced
land and Co-Creators will thrive
Natural
Resources
Time

Product Development going Global
2006 Businessweek “… most manufacturers understand what
Global Product Development (GPD) is and why it is important but
few really understand how to make it successful”.

The commercial Teams around the globe work
value proposition together to conceive, design and
develop new products.
• Leverage the Globe
• Time to market (24x7

Enterprise)
• Cost,
• Innovation
• Quality/ Robustness


… Product Development going
Global
FROM TO
Co-located teams Globally dispersed

Cross-functional Culturally un-adjusted
interactions, Non-e-mail
Informal collaborations communication
minimized

High bandwidth
communications (face to Physically unaware
face discussions) teams

“Fuzzy front end” of New Product Spread over thousands
Development amplified in Global of miles to collaborate
Product Development Scenarios on new product
development

New world needs new ways …
Old World
 centralized control
 centralized management Winners in the New World
 how to assign work
 how to align  Lean Thinking -Toyota –
 how to control Lean Product Development
 Inventive Thinking/ Design

Thinking using TRIZ
The realization that so called managerial  Systems Thinking/ Holistic
control is a myth in a self-organizing and Thinking
continuously evolving enterprise has not yet  Artful Making
sunk in most of the enterprises.
 Learning Organizations
 Open Innovation



is
Nature

Fractal!

Black Swan – The impact of
the highly improbable
• “I cannot accept a pretense of
science. I much prefer a
sophisticated craft, focused on
tricks, to a failed science looking
for certainties” Nassim Nicholas
Taleb

PASSION ….. Is the new Skill for the
New World …

In 2005, Survey of 86000 employees working
for large and medium-sized companies in 16
countries


17
©

CREATING WEALTH ……..

• The Ongoing Wealth Revolution
• Explosion of Prosuming – The unpaid work all of us do
• Wealth System – Money economy enmeshed with
Prosumer economy

• The Ancient Wisdom – wealth beyond barest self-
sufficiency is UN-NATURAL (Aristotle)

Industrial "Success" Curve
4

3000 Raw Ideas (unwritten)
Log 10 of Number of Ideas

Stevens and Burley – Research and
3 Technology Management May 1997 .

300 Ideas Submitted

2
125 Small Projects

9 Significant Developments
1

4 Major Developments

1.7 Launches I Success
0
0 1 2 3 4 5 6 7 8

Stage of NPD process


20April 8, 2010 © Crafitti Consulting

Failures/Mistakes/Errors
Burning your hand is a small
price to pay for a good
idea.

PLEASE LET YOUR
EMPLOYEES FAIL!


22 © Crafitti Consulting Private


23
©

3 Conditions for Learning
Low Threat and
High Challenge
Relaxed Alertness

Orchestrated
Immersion Active Processing

Experiences
processed as
In Multiple, the basis of
Complex, Meaning
Authentic
Experiences

Molecules

Neurons

Networks

System

Outcome of the interaction between Emergent
the brain and the environment
Behavior
27 ©

• The brain is a complex adaptive system.
• The brain is a social brain.
• The search for meaning is innate.
• The search for meaning occurs through patterning.
• Emotions are critical to patterning.
• Every brain simultaneously perceives and creates
parts and wholes.
• Learning involves both focused attention and
peripheral attention.

• Learning always involves conscious and unconscious
processes.
• We have at least two ways of organizing memory.
• Learning is developmental.
• Complex learning is enhanced by challenge and
inhibited by threat.
• Every brain is uniquely organized

http://www.brainconnection.com/topics/?main=fa/brain-based3

• Chaotic Dumbness (High Threat, Low Challenge)

– Comply with this or else…
– Constant use of “Killer Phrases” to destroy new ideas

• Automated Disjointedness (Delegation, Hands Off)

– Follow the process, don’t worry about anything
– Processes above people – Right processes Mandated will create
results

– “Skill Set” based work assignment

• Passive Analysis (Data Collection, Historical Data Analysis)

– Give me all the data that has been accumulated – I will analyze
and give you Insights
– Quantify – if you cant quantify you don’t really know?
– We will do a Quarterly Analysis to provide you results

From Chaotic Dumbness to Relaxed Alertness

From Automated Disjointedness to Orchestrated Immersion

From Passive Analysis to Active Processing

Innovation is not about
Automation Alone!


Artful Making

Emergence can not be pre-
conceived

Re-conceiving everything in response
to what team sees as newly possible
with each passing movement of
rehearsal, as a result of each new
thing tried


Artful Making - Again

Discovery Vs Making
“Discovery” suggests there is a
right choice waiting to be found

The ORGANIZATIONAL SWEET SPOT –
Frequently Heard Comments

• You Must. • Can you think of other options?
• That’s not my Job. • Am I on the right track?
• You have no choice. • Lets take another look at that deadline.
• Have you forgotten the deadline? • Thanks for taking the initiative.
• We need to talk. • How often should we meet?
• It’s the bottom line that counts. • We’re in it together.
• This is for your own good. • What’s your gut feeling on this?
• Get off my back. • How can I help?

• I don’t care how you feel. • Is this mutually beneficial?
• You had better pay attention to • How does this support our overall
company policy. activities?
• Don’t you understand? • Please take a real critical look at my
• Is it time to go home yet? proposal.
• How time flies.
Controlled-Access Context Shared-Access Context

QUESTION: WHAT VALUE YOU ARE CREATING
FOR YOUR CUSTOMERS?

QUESTION: DO YOU ALWAYS KNOW UPFRONT

WHAT YOUR CUSTOMER NEEDS?


What is Value?
• Customer defined
• Opaque
• Contextual
• Multidimensional
• Tradeoff
• Relative
• It is a Mindset

“The perceived worth of the set of benefits received by a
customer in exchange for the total cost of the offering,
taking into consideration available competitive offerings and
pricings” Prof Mohanbir Sahney


What is Value Mindset?

Suppliers Know Customer Needs
Unknown 2 4
Customer Value-Net
Intimacy Deep Dive

3

1
Known

Orchestrated
Delivery
Customer
Efficiency
Learning

Known Unknown
Customers Know their Needs

Customers

Competitors Company Complementors

Suppliers

LEVERAGING THE VALUE NET Leverage our Customer’s Value net

What is Lean? – A Global Optimizer

Muda
(Waste)

Mura Muri • Lean enables Problem Solving
(Variability) (Overburden) • A grassroots productivity

Planning
Aware
Value
multiplier
• Focus: NVA elimination & Value
Maximization

• Difficult to imitate – As it Embeds
in
Pull

Value Flow
Stream
Value
46

Convergence in Design…How Toyota does it…
How to converge from an initial set of conceptual ideas to one idea
that will become the final Design?
Early Convergence Strategy - Toyota’s Slow Convergence –
Point-Based CE Set-Based CE
Large Design Spaces –
Design Critical Integration of Sets
Chose
Space n Analysis

Design

Modificati “ELIMINATE
on “DESIGN
WEAKEST
CHURNING”
ALTERNATIVES”
47

Principles that Stick

7 Principles that Stick

Plan your Project and Project your Plan

Collaboration is the key and it has two parts
Cooperation and Elaboration

Identify and Exploit Concurrency where ever you
can

Wait Times are Waste Times

Crisis Avoidance is an order of magnitude more
profitable than Crisis Management

Best time to detect and respond to an
error/defect/bug/mistake is while it is being
created

Decisions made in the value stream and Handoffs in
value stream are main stream decelerators

Embedding Lean in your Company
• Facilitated Kaizen Blitz’s will help the project teams to see the
benefits
– 5-10 Kaizen Blitz
• 5-10 Lean Projects
– Each project is of 6-8 weeks duration
– Some projects will fail
– Take the learning forward

• Set-up the Lean organization to research , experiment and
explore
– Lean Success will Spread
– More PMs will start looking for Lean
– PLEASE DO NOT MANDATE! Then Surely Lean Will Fail

LEAN INVENTIVE SYSTEMS
THINKING (LIST)

CLASSICAL THE LIST
REDUCTIONISM

Learning, Discovery, Design,
Analysis, Determinism, Evolutionary, Experimental,
Dualism, Correspondence Integrative, Holistic, Non-
theory of knowledge, linear, Natural
Rationality, Artificial


LIST – INVENTIVE THINKING

HOW TO INVENT, UNDERSTAND and
SOLVE PROBLEMS – How to Innovate

TRIZ - Theory of

Inventive Problem Solving

TRIZ was founded in 1946 by a Russian engineer and
scientist,
Genrich S. Altshuller
(Oct.15 1926 - Sept. 24,1998)

The development of TRIZ
involved thousands of engineers,
took more than 50 years and
included the analysis of millions
patents worldwide.

Altshuller formulated main postulates of TRIZ:

The evolution of engineering systems is not a random process, but obeys certain laws;
Products/processes evolve towards the increase of perfection (ideality) by elicitation and
overcoming technical and physical contradictions.

A Brief History of TRIZ

TRIZ – Inventive Problem Solving by Altshuller

• 1946 Patent Officer
in Russian Navy Teoriya Resheniya Izobreatatelskikh Zadatch
• Discovered patterns
in patents,
World’s best ideas
published paper. A situation like mine World
in this situation
Sent to Gulag (Abstraction) Knowledge
Access (Access)
• 1954 released, Base
analysed 2,500,000 Abstraction Specific
patents
My specific situation My specific solution
• Identified what Evaluate

Me / my company
makes a successful
patent
• 1956-1985 TRIZ
formulated

• Same Problems and Solutions appear again and again but in different industries
• There are a series of recognizable Technological Evolution paths for all industries
• Innovative solutions used theories outside their own area/industry
• The most powerful solutions uncover and eliminate contradictions

Why TRIZ?

Theory of Inventive Problem
Solving by Altshuller
Main postulates :
► The evolution of
engineering systems is
• 1946 Patent Officer
not a random process,
in Russian Navy
but obeys certain laws;
• Discovered patterns
in patents, published ► Products/processes
paper. Sent to Gulag evolve towards the

increase of perfection
• 1954 released, (ideality) by elicitation
analysed 2,500,000 and overcoming
patents technical and physical
• Identified what contradictions.
makes a successful
patent
• 1956-1985 TRIZ
formulated

© Crafitti Consulting Private Ltd. 55

Questions that TRIZ asks you…

1. What is my Ideal Final Result – How can
I achieve the functionality without A
spending any resources or cost B
2. How the problem/situation/system looks
in time and space coordinates C
3. Am I using all the existing resources or
potential resources to the fullest
4. What is the main useful function I need

Plain Forest Coal
to deliver. What are various ways in
which I can deliver the function
5. How others have solved the same Tree
Seed Timber
problem in the past

DNA Fruit Pie

Traditional Approach Vs Systems
Approach

– Fragment the whole – Multiple Solutions for the
(problem) into parts same objective
– Specialist for each part – Context Specific
– Optimal/perfect solution Appropriateness

for each part – “Choice” based on available
– Assemble back the parts to information
obtain “optimised” solution – Fallibility of the Decision-
for the whole (problem) maker


Systems Thinking
• Enables us to discover trends and patterns
• How they interact over time
• Helps in analysing reality objectively,
• Identify the structures that underlie complex situations

• Enables us to understand and respond to the dynamics of strategic leverage
points


Four Tools/Methods/Methodologies
TRIZ – Theory of Inventive Problem Solving Algorithm
for Ideation/
There are universal principles of invention that are the basis for creative
innovations that advance technology which TRIZ has identified and codified Problem Solving
through analysis of millions of Patents, these are available for making the
process of invention more predictable. http://www.triz-journal.com

AHP – Analytic Hierarchy Process Multi Criteria
Decision Making
A powerful and flexible decision making process to help people set priorities and
make the best decision when both qualitative and quantitative aspects of a
decision need to be considered. It helps in generating consensus amongst a group

of experts. Saaty TL (1980) The Analytic Hierarchy Process, McGraw-Hill, New York
Analyzing
DSM – Design Structure Matrix the Dependencies
System Analysis and Project management tool http://www.dsmweb.org

Six Thinking Hats – Edward de Psychological
Bono Method for
directed Thinking

Idea Crafting
Idea
Generation

Situation
Assessment TRIZ Six Hats
Idea Clustering –
Solutions

Generation
DSM AHP
Solution
Implementation
Solution
Evaluation

Innovation Ignition –
Lean Inventive Systems Thinking

Inventive Thinking
(inventive triggers,
laws of evolution,
scenario building,
focus on function) Systems Thinking
Lean Thinking
(holistic approach,
(Value maximization,
global optima,
experimentation,
expanded and
learning approach,
connected system

elegance)
context)
LIST
(Lean
Inventive
Systems
Thinking)


FINAL POINTS

• The World is Not What it Used to Be ….
• We Need New Type of Organizations – Innovative Learning
Enterprises
• New ways of looking at reality are needed
• Artful Making, Lean Thinking, TRIZ, Social Computing, Open
Innovation, Scenario Planning needs to be integrated as a
framework

• We need to design organization as a Innovative Learning
Enterprise
• Lean Inventive Systems Thinking LIST –
we propose to be the new framework for
INNOVATION!
© CRAFITTI CONSULTING

Crafitti Consulting: Background
• Crafitti is an innovation research and consulting firm and facilitates innovation in
business, science and technology contexts

• Crafitti is currently incubated at the NSR centre for Entrepreneurial Learning at IIM
Bangalore

• Navneet Bhushan and Karthikeyan Iyer, the founding directors of the firm, have close
to 30 years of collective industry experience and have been focused on researching

and facilitating innovation in diverse enterprise contexts over the past decade

• Crafitti’s frameworks are a distillation of this experience and provide a potent platform
to accelerate innovation in contexts as diverse as building innovative business
strategies, conceptualizing and designing new breakthrough products and services,
designing technological alternatives, intellectual property portfolio management,
process innovation and embedding innovation DNA in organizations.

64

Key Spheres of Influence

Embedding Innovation
Enabling open DNA , Technology and
innovation, Technology Industry & business strategy,
and business evolution Ecosystem process productivity and
research value generation, IPR
advisory services, Patent
analysis and portfolio
Organization management

Idea generation,
People Problem solving,
Lean Thinking, Decision making
Systems Thinking, Continuous learning
Value Crafting,
Design Thinking,
Inventive Thinking,
Decision Crafting

65

Our areas of Innovation R&D and Application
(an evolving map)

Innovation DNA in Organizations

Robustness Scaling Technological
Structured Alternatives
strategy
problem for patent
definition Efficiency New Solution Co-creation
Mind- Conceptualization
Product IP Valuation
mapping IT Value Consensus
Performance architecture Opportunity
building
Brainstorming Finding
Evolution IP Portfolio
Reliability Business

Scenario trends Management
Ideation Alignment
building
and Process Intellectual
Creativity Decision Value
Problem Property
Innovation Product and Business Engineering
Solving Crafting
Strategy Strategy

Grass-roots
Innovation Body of Innovation
Research Innovation
Knowledge Network
Experience


Crafitti Events: A Sprinkling Invited Speaker: NID Design
Protection workshop @ Bangalore
Lean for Apparel & and Delhi
Paper at SNAC TISS: Fashion Industry: Session
Social Network Types at PSG College
Invited Speaker:
and Organizational SPICON 2010 Chennai Public Workshop:
Public Workshop at
Forms Ideation Workshop Software
Chennai: Patents and
at ICFAI Invited Speaker: 2nd Innovation
Innovation
Paper Presentation International
at Design First – Innovation Course at IBS: Conference on IPR
Ultra Large Scale Idea Crafting
System Design Public Workshop
Public Workshop – Advanced at Hyderabad: Oct 2009 Mar 2010 Technical
Advanced Patent Paper
Patent Analysis using TRIZ
Analysis presentation
Session on IPR:
Public Workshop - Lean @ 7th
Talk at SPIN: Strategy and Business
Inventive Systems Thinking International
Feb 2009 Effective Lean Implications at
TRIZ Session @ Symposium
Management for WeSchool

Talk: TRIZ for GIS Sobha Developers on Fuels and
Software Delivery
at CAIR, DRDO Bangalore Lubricants,
Talk at Subex: Ideas and Triggering Ideas with Delhi
Talk Innovation Talk at Russian
Inventive Principles
Crafting at KCE Culture and TRIZ: Session at
Talk at Philips: WeSchool
Science Centre:
June 2008 Innovation and Advanced Patent
Patents using TRIZ Analysis using TRIZ
Talk at BMA: Lean
Thinking Talk at BarCamp: Vedic Talk at Ranbaxy:
Inventive Principles Innovation Algorithms
Talk at New Horizon Talk at CCSTDS:
College of Management:
Talk: Role of IP in TRIZ in Patent
Lean Thinking
Business Valuation Analysis


Thank You!
We look forward to active collaboration!

68

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