On 7th January 2016 Crafitti was invited to deliver a talk on Dr. Reddy's Labs Innovation day on "ALVIS for Innovation and Decision making" The talk was well received and these slides were used.
5. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
• One discipline only /
Not outside our
specialty / Looking for
Solutions where we
feel comfortable
• Result of life
experiences / Cultural
Backgrounds
• “This is the way we’ve
always done it”
syndrome
The main “Innovation Killer” –
Psychological Inertia
Main sources of Psychological Inertia:
6. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
Industrial "Success" Curve
0
1
2
3
4
0 1 2 3 4 5 6 7 8
Stage of NPD process
Log10ofNumberofIdeas
3000 Raw Ideas (unwritten)
300 Ideas Submitted
125 Small Projects
9 Significant Developments
4 Major Developments
1.7 Launches I Success
Stevens and Burley –
Research and Technology
Management May 1997.
How many IDEAS are needed?
In 1997 - 3000 Raw
Ideas = 1 Successful
Product!
TODAY (2016)
We need more –many more
- ideas? Non-Obvious Ideas!
7. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
How to get NON-OBVIOUS IDEAS – System
of Innovation instead of “Trial and Error”
How to Get Non-Obvious
Ideas?
•Perseverance, Patience, Burning
your hands – sometimes burning
yourself as well (Trial and Error,
Randomness, Serendipitous,
(Archimedes “Eureka” Moments),
Edison’s search for “needle in the
haystack” – one hay fiber a time !
In 1997 - 3000 Raw
Ideas = 1 Successful
Product!
TODAY (2016)
We need more –many more
- ideas? Non-Obvious Ideas!
OR …. Create a System of
Innovation
•Systematically search for ways of
overcoming barriers – by getting
relevant knowledge, getting the
mind to relevant psychological
state, Exploring systematic
“needed” change, Integrative
thinking
9. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
INVENTION and “Method of INVENTING”
9
• New and Non-obvious Technical
Solution to a Problem (Patent Law)
– New (Novel) in the whole world?
– Non-obvious (there is an
inventive step)
– Technical solution (“techne”,
Greek for "art, skill, cunning of
hand“)
– Problem (usually a conflict,
contradiction or change)
• Our method of Inventing
TRIAL and ERROR
• INEFFICIENT PROCESS
• TIME CONSUMING
• RANDOM
• LEAVING IT TO
SERENDIPITOUS INSIGHT IN
THE MIND – ARCHIMEDES
EUREKA MOMENTS
• IDEAS COME TO PREPARED
MINDS
10. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
An Integrated Approach – ALVIS THINKING
ALVIS
Value Thinking
(Minimize Waste –
Maximize Value)
Inventive
Thinking
(Ideality – Functions
– Resources)
Systems
Thinking
(Holistic Approach
– Exploring
Complexity)
February 9, 201610
Analytical
Thinking (Divide
complexity into
multiple solvable
problems )
Logical
Thinking
(Informal and
Formal Reasoning)
11. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
IDEATE
EMPOWER
EXPLORE
CRAFTING
NEW
CHOICES
SEE
OBSERVE
UNDERSTAND
LIVE
REACH TO
THE SOUL OF
THE SYSTEM
ANALYTICAL LOGICAL
VALUE INVENTIVE
SYSTEMS
INTEGRATED
FIVE
DIMENSIONAL
THINKING
CRAFT THE CHANGE
Communicate Relate Allow
Follow-
Up
Turn -
Around
Crafitti’s Framework for
Innovation
12. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
Value Thinking
“Customer Value : 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”
Source: Fundamentals of Customer value – Prof Mohanbir Sawhney Kellog School of Management
A Need to craft a
Framework for
Defining and
Measuring Customer
Value
14. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
TRIZ – Inventive Problem Solving by
Altshuller
Teoriya Resheniya Izobreatatelskikh Zadatch• 1946 Patent
Officer in Russian
Navy
• Discovered
patterns in
patents,
published paper.
Sent to Gulag
• 1954 released,
analysed
2,500,000 patents
• Identified what
makes a
successful patent
• 1956-1985 TRIZ
formulated
• Same Problems and Solutions appear repeatedly in different
industries (Myth: My field is Unique )
• There are a series of recognizable evolution paths for all technical
systems (Myth: Evolution is Completely Random)
• Innovative solutions used theories outside their own area/industry
(Myth: Innovation happens through Deeper Knowledge)
• The most powerful solutions uncover and eliminate contradictions
(Myth: Optimization is the Focus)
TRIZ itself does not solve problems.
Problems are solved by
people. TRIZ is a theory for
solving problems based on
empirical analysis
Inventive Thinking
15. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
TRIZ - 5 Levels of Invention
15
Increasing
Strength
Strong
Inventions –
Level 3 to
Level 5
16. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
SYSTEM AND FUNCTION
16
• System - from fundamental principles point of view
– set of elements working together to achieve an
objective or perform a function.
– set of elements (Energy-matter organized in space-time) working together
(exchanging energy and information) to achieve an objective or perform a
function (Create Change - in Matter, Energy and Information in Space-
time).
• When the system is achieved by thought and
consciousness we make systems artificial – A
TECHNICAL SYSTEM
System
17. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
SYSTEMS EVOLVES TOWARDS IDEALITY
17
• Altshuller was the first to realize that the direction of progress,
or technical evolution, is defined by increasing the ideality
level
• An Ideal system does not exist, but all of its functions are
fulfilled at the right time and at the right place — without
energy, substance, or other resources, and without any ill
effects.
Ideality provides an overall starting
point for thinking – rather than
searching in the current “mess”
Searching for a needle
in a Haystack!
18. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
TRIZ LAWS OF SYSTEM EVOLUTION
18
Paths to IDEALITY
1. Law of Increasing
Degree of Ideality -
Increasing Ratio ->
Benefits/Harm (cost)
2. Law of Non-uniform
evolution of subsystems ->
Leads to System Conflicts
Trial and Error
• Technical
Contradictions
• Physical
Contradictions
• Administrative
Contradictions
• Inventive Principles
• Separation
Principles
3. Law of
Transition to
a higher
Level system
-> from
simple to
more
complex
4. Law of
Increasing
dynamism
(flexibility)
-> More
adaptable to
change
5. Law of Transition to
micro-level
-> Increasing
fragmentation
6. Law of Completeness
-> Gradual Elimination
of Human Component
7. Law of Shortening of
Energy Flow Path ->
Reduction in
Energy/Info
transformation stages
8. Law of Increasing
controllability ->
Evolution of controlled
interactions of system
elements
9. Law of Harmonization of rhythms -> Synchronization of
natural frequencies of elements
29. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
IDEATION PROCESS …
• GENERATES 100’s of RAW IDEAS
• THESE RAW IDEAS ARE CLUSTERED INTO CONCEPTS
February 9, 201629
Number of Ideas required to create a concept on an average is about 7 with the estimated standard
deviation to be 7. However, this is after eliminating 30% generic ideas. Also if we generate about 27
ideas on an average we have found we can have a new concept. Also when we combine this information
with the 1997 paper – 3000 raw ideas are needed to create a successful product – we need about 100
concepts to create a successful product.
Maximum 27 Raw Ideas will ensure a Concept
30. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
Analytic Hierarchy Process
Similar to Decision Matrix
approach but allows a
wider range of values in
comparison of alternatives
Developed by T.L. Saaty
(1980)
Bhushan N. and Rai K.,
Strategic Decision
Making – Applying the
Analytic Hierarchy
Process, Springer, 2004
Google Scholar
359 International Citations of the
book – Defence, Medical,
Pharma, Software, Quality,
Manufacturing, Governance
35. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
INVENT STRONG - FRAMEWORK
35
• Changes in the System
Hierarchy –
New/alternative
operating principles of
the system
• Laws of System Evolution
– Resolving System
Contradiction (physical
contradiction)
– Moving along the laws of
system evolution
Paths to IDEALITY – 9
Laws of System
Evolution
36. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
INVENT STRONG - FRAMEWORK
36
• Changes in the System Hierarchy
– New/alternative operating
principles of the system
37. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
INVENT STRONG CASE STUDY 1
• Fluid Catalytic Cracking of Crude Oil
– Used in an oil refinery for the conversion of crude oils to
lighter products like gasoline, diesel, LPG, olefins etc.
– Earlier “function” of “cracking” was performed by
pyrolysis
– the technical difficulties due to high temperature,
catalytic cracking .
• What is the “Inventive Problem”
– function required is to break the strong bonds of large
hydrocarbon molecules.
– Typically it is done by heat – increasing the temperature.
– Catalysts have been particularly effective to enable
reduction of temperature in cracking.
37
38. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
PATENT TRENDS INFERENCES
• Patent Search on Inventions in FCC
– most of the important sub-systems
such as catalysts, equipment and
processes for LPG and light olefin
production are in the mature phase of
evolution and the new inventions
mostly involve only slight modifications
in the existing system, such as
increasing performance and reliability,
therefore not resulting in significant
improvement in the ultimate function
to be achieved which is, increasing the
yield of LPG.
• Key Patents describe inventions
– all of the new inventions are at TRIZ
Level 1/Level2
– Last two decades NO major invention
that has changed FCC
38
39. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
SATURATION OF INVENTIVENESS
• Saturation of inventiveness
– Inventors have not been looking at changing the operating principle of the
system for hydrocarbon cracking.
– From super-system lens we need to ask - achieving the function of
hydrocarbon cracking without FCC and without heating?
– Experts/scientists in the field who are deep into FCC, want to increase the
light olefins and LPG production only through FCC as they are trained to
do so
– typical problem that we call psychological inertia of core competence.
• Invent Strong using Super-system lens
– inference from the trends of patent filings
– find new ways of cracking the crude oil without increasing the
temperature and without using the catalysts.
– This key formulation of the inventive problem led us to search for
operating mechanisms that can break large molecules.
39
40. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
NEW OPERATING PRINCIPLE
• Search for new operating principle for
cracking
– TRIZ lens led to US Patent number
8192591 B2, which describes a new
operating principle for cracking that
doesn’t require catalysis and in fact can be
done at room temperature.
– TRIZ advocates the strong inventions will
come from outside the field.
• A new method using radiation beams on
the crude for self-sustaining cracking of
hydrocarbons.
– This is a new “operating principle” to
achieve cracking without using the
existing method of cracking.
– It involves breaking the hydrocarbon
chains by bombarding the crude with
radiation beams.
– This changes the game.
– This is closer to a level 4 invention. This
should start a new technology for
hydrocarbon cracking.
40
From the Abstract of US 8192591B2
“The present disclosure provides a simple and
efficient method for the self-sustaining
radiation cracking of hydrocarbons. The
method disclosed provides for the deep
destructive processing of hydrocarbon chains
utilizing hydrocarbon chain decomposition
utilizing self-sustaining radiation cracking of
hydrocarbon chains under a wide variety of
irradiation conditions and temperature ranges
(from room temperature to 400.degree. C.).
41. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
INVENT STRONG CASE STUDY 2
Bloating and Digestion of Bovine Cattle
• We looked at a problem of feeding bovine
cattle in large controlled cattle farms.
• Food for the cattle is given one time of the
day and there is no control on how much
each animal eats during the day.
• Feed is more than the capacity of eating/
digesting and there is no time for the
cattle to drink water as it keeps on eating
continuously.
• Inefficient daily distribution of food
ingestion by animals and low amount of
water drunk by animals leads to digestive
disorders such as acidosis or bloating.
• This can lead to even the death of the
cattle.
41
SYSTEM HIERARCHY
42. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
Mapping the key problems to system Hierarchy
42
Key Contradiction or
System Conflict
Cattle should be given food
but it should eat only that
much that they can digest in
a specific time period.
The problem, however is,
that cattle do not have a
mechanism to give
themselves an indication of
fulfilment of the food
intake.
The physical
contradiction can be
stated that “Cattle
should eat but also not
eat”
43. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
Directed Search from problem formulation
• From the definition of the problem,
– can the subsystem (feedstock), system (cattle) or the
super-system (delivery of the feeding process) give the
cattle an indication of enough food being taken and
asking them to stop and also drink water?
– One option is that we include something to the feed
that actually gives an indication to cattle that they
should take a break from eating.
• Armed with this conceptual solution, we did a
patent search, and interestingly, found a patent
application US 20100330187A1.
43
44. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
INVENT STRONG CASE STUDY 2
Patent application US 20100330187A1.
Capsicum Food Additive and Uses Thereof
– The invention relates to a food additive that
includes, relative to the total weight thereof:
about 3.5 wt % of capsicum oleoresin
containing 6 wt % of a capsaicine and
dihydrocapsaicine mixture; about 5.5 wt % of
cinnamaldehyde; about 9.5 wt % of eugenol;
the balance up to 100% consisting of
hydrogenated vegetable oils.
– The invention also relates to the uses of said
additive for improving the daily distribution of
food ingestion by animals, for increasing the
amount of water drunk by animals, or for
preparing a food product intended for the
preventive or therapeutic treatment of animal
digestive disorders, such as acidosis or
bloating.
– This food additive is particularly adapted for
ruminants such as bovine cattle.
44
Impact and Benefits of the Invention
on system hierarchy
45. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
“Strong Choices” – Strategic Bubble Chart
February 9, 2016
The Strategic Bubble Chart gives us a plot of all 7 concepts on Novelty-Feasibility
Plane. The size of Bubble indicates the relative business potential. The Strategic
Bubble Chart gives us a clear direction and road map for each concept.
47. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
THE BLUEPRINT FOR NEW …. Technology
Innovation Enterprise
February 9, 2016
FORESIGHT
SYSTEMS,
INVENTIONS
AND DECISIONS
DELIVERY
INNOVATION
TECHNOLOGY
•INVENTIONS
AND PATENTS
BUSINESS
•VALUE
NETWORK
CUSTOMER
•CUSTOMER
VALUE
FRAMEWORK
SYSTEM of SYSTEMS for
Algorithmic Solutions to Problems/
Multi-Objective, Multi-Criteria,
Multi-Expert Network of Decisions
EVOLUTION
• SET-BASED
CONCURRENT
ENGINEERING
DESIGN
•ANALYTICAL/
LOGICAL/ VALUE/
INVENTIVE/
SYSTEMS THINKING
IMPROVEMENT
• KAIZEN BLITZ
INVENTING
INNOVATIVE
ENTERPRISE
48. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
February 9, 201648
WHO IS AN INNOVATION CO-CRAFTER
An Innovation Co-Crafter is a
Simpleton, Scientist and Saint -
who starts along with people in a
system (experienced domain
experts) to reach to the SOUL of the
system. He starts every time as a
simpleton - then he becomes a
scientist and finally achieves
sainthood - reaching and delivering
a wisdom of the system to effect
change that is needed - making the
system as close to Ideal as is
possible. In this journey - he creates
systemic change along with people
in the system.
49. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
February 9, 201649
WHO IS AN INNOVATION CO-CRAFTER
Every time the co-crafter starts as a
simpleton who has multiple lenses to
view reality and many times creates
new lenses to look at reality - during
these adventures in wonderland he
behaves like a scientist –
experimenting, exploring,
understanding through the steps of
SOUL - See, Observe, Understand and
Live - after the simpleton has reached
to the SOUL of the system, he starts
the change process needed - a change
that impacts all around him. Slowly
the wisdom gleaned from these
becomes the new change that the
system needed and experts start
developing their expertise in the new
change!
50. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
February 9, 201650
WHO IS AN INNOVATION CO-CRAFTER
A co-crafter is a simpleton who becomes a scientist and then
achieves sainthood by working with a system and the people
in the system to make the system as close to an ideal system
as is possible - He has to be humble, has to accept that he
doesn’t know and actually need to reach the SOUL of the
system by learning to See, Observe, Understand and Live
(SOUL) the system. Achieving Sainthood from being a
simpleton every time is a learning process!
A co-crafter takes the organization that he works with to the
Simplicity on the other side of complexity - one has to go
through complexity. This side of simplicity will keep us
simpletons - I hope you can connect with being Simpleton as
this side of complexity - being a Saint is on other side of
complexity and exploring complexity is being a scientist!
The co-crafter takes the system through a journey of
simplicity from this side of complexity to the other side of
complexity, breaking and many times shattering the
mountains of complexity!
53. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
Contents
February 9, 2016
CRAFITTI: Your Global Innovation and IP Think Tank
Crafitti offers active collaboration to craft ideas
in multiple innovation contexts.
55. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
WHAT YOU TOLD US…
February 9, 201655
• WE DON’T KNOW WHAT’S NEXT
• WE DON’T HAVE IDEAS
• WE HAVE LOTS OF IDEAS BUT DON’T KNOW WHAT TO DO
WITH THEM
• CAN YOU HELP US INVENT
• WE HAVE LOTS OF INVENTIONS BUT WE DON’T KNOW IF
THEY CAN BE PATENTED
• WE HAVE PATENTS BUT WE DON’T KNOW HOW STRONG
THEY ARE
• WE HAVE PATENTS BUT WE DON’T KNOW THEIR VALUE
• WE HAVE PRODUCT BUT WE DON’T KNOW THE MARKET
• WE HAVE PRODUCT BUT WE DON’T KNOW TO
COMMUNICATE ITS VALUE
• WE DON’T NEED INNOVATION BUT CAN YOU BRING US
CLIENTS
WE SAID
WE ALSO DON’T
KNOW
BUT TOGETHER
WE CAN FIND
OUT
AND TOGETHER
WE CREATED
ANSWERS
Crafting
Innovation
Together
56. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
Crafitti Consulting Private Limited
February 9, 201656
Crafting INNOVATION Together
• We co-craft end-customer value
with every mind working with us by
– Enabling Emergence of NEW
– Maximizing the LIFE of EACH
IDEA
– Empowering IDEAS
– Making Innovation Happen
– Future-proofing by creating
Future insights and forecasts
58. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
Crafitti Consulting: Background
58
• INNOVATION RESEARCH AND
CONSULTING in business, science and
technology contexts
• Started in June 2008 and was incubated
at the NSR Centre for Entrepreneurial
Learning at IIM Bangalore
• Crafitti’s frameworks provide potent
platforms to innovate in crafting
strategies, breakthrough products, new
services, technological alternatives,
patent portfolios, process design and
embedding successful change in
organizations.
62. Confidential
craftinginnovationtogether
c r a f t i n g i n n o v a t i o n t o g e t h e r
February 9, 201662
Thank You!
Navneet Bhushan
Navneet.bhushan@crafitti.com
+91 9902766961
Dr. Poongothai Ramaswamy
poongothai.ar@crafitti.com (based in
Hyderabad)
+91 9963055517
Amit Kumar Mishra
amit.mishra@crafitti.com
+91 8050152702
ALVIS– INNOVATION
AND DECISIONS IN
GLOBALIZING WORLD