Inventors Into Innovators Upload

crafting innovation together

Transforming Inventors into
Innovators –
The Keys the R&D Organizations are
Completely Missing Out!

Navneet Bhushan
(navneet.bhushan@crafitti.com)
Crafitti Consulting (www.crafitti.com)

Bangalore, January 30, 2010

Confidential

The first decade of 20th Century…

• In 1890, Average company in US
had - FOUR employees (4)
• By 1901, US Steel became world’s
first 1 Billion $ company
• Ford Motor Company, founded in
1903, was producing half a million

cars a by 1913

Confidential © Crafitti Consulting Private Ltd. February 16, 2010 2

The first decade of 21st Century…


What are These?

A social network, in this case of sexual contacts, redrawn from
the HIV data of Potterat et al.. SOCIAL NETWORK

A visualization of the network
structure of the Internet at the level of
“autonomous systems”—local groups
of computers each representing A food web of predator-prey
hundreds or thousands of machines. interactions between species
Picture by Hal Burch and Bill in a freshwater lake FOOD
Cheswick, courtesy of Lumeta
Corporation. INTERNET WEB

Who Designed these systems?
Confidential © CRAFITTI CONSULTING

More is Different – Scale is the New Frontier - I

Google’s Custom Built Server
Farms
Current estimates put Google's server
farm at around 450,000 machines - and
they're still custom built, commodity-
class x86 PCs, just like they were in 1999

We Are Building Bigger
and Bigger Systems

More is Different – Scale is the New Frontier - II

The Internet Inter-disciplinary Capillary network
collaborations

Complex system design
diagram
High School
Friendships

Systems are Evolving into Bigger Systems

More is Different – Scale is the New Frontier - III

“The ability to reduce everything to simple fundamental
laws does not imply the ability to start from those laws
and reconstruct the universe” Anderson, P.W., More is Different,
Science, Vol. 177, No. 4047, Aug. 4, 1972, pp. 393-396.

Scale Changes Everything!

More is Different – Scale is the New Frontier - IV

“The older is not always a reliable model for the newer, the
smaller for the larger, or the simpler for the more
complex…Making something greater than any existing thing
necessarily involves going beyond experience.”
Henry Petroski, Pushing the Limits: New Adventures in Engineering

Scale is not a linear extrapolation!

A Weakening of Hierarchies

• Information abundance permits INDIVIDUALS to by-
pass hierarchies that have – deliberately or
inadvertently – controlled or limited information
• Alternative human organization forms – based
mainly on the Network have proved more effective
and efficient for transacting information than

hierarchies. In Information intensive enterprises,
hierarchical organizations may not be competitive
with networks.
IN ATHENA’s CAMP – Preparing for conflict in the Information Age, (Ed)
Arquilla J. and Ronfeldt D, RAND, 1997


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

Confidential
Time

IDEAS…. The new world of
Ideas

Confidential


Confidential 22 Dec 2005

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

Confidential

The main “Innovation Killer” –
Psychological Inertia

Main sources of Psychological Inertia:

► One discipline only / Not outside your specialty /
Looking for Solutions where we feel comfortable
► Result of life experiences / Cultural Backgrounds

►“This is the way we’ve always done it” syndrome

Confidential

Reality

The only reason the adhesive was still
around in 1978 was because of the
persistence of its inventor, Spencer Silver.
In 1968, when he invented the glue, Silver was a
member of a polymers research team in 3M's Central
Research Laboratories. His glue did not fit into the
research brief of his team, which was to come up with

stronger not weaker adhesives. From 1968 through to
1973, Silver persisted in trying to convince the
company that products could be developed that
exploited the qualities of a less aggressive glue. But,
3M was "trapped by the metaphor that insists tha
the ultimate adhesive was one that forms an
unbreakable bond" (Nayak and Ketteringham, p.
Confidential 368). Silver even Private Ltd.trouble convincing the company
© Crafitti Consulting had February 16, 2010 18

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

Confidential

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

Confidential

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

Confidential

Innovation is not about
Automation Alone!

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Artful Making

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

PLEASE LET YOUR
EMPLOYEES FAIL!

Confidential

Emergence can not be pre-
conceived crafting innovation together

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

Albert Einstein Says

Sometimes one pays the
most for the things one
gets for nothing

The whole of science is nothing more than the
refinement of everyday THINKING
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Artful Making - Again

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Discovery Vs Making

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

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HOW TO THINK

When Einstein was
asked what was most
helpful to him in
developing the theory
of relativity, he

replied,
“Figuring out how to think
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about the problem.”

What are the Assumptions?

• Care about the Premises
more than the Theory

Confidential


• 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
Confidential

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
Confidential

• Chaotic Dumbness (High Threat, Low Challenge)v a t i o n
crafting inno together

– 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
Confidential

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

Confidential


From Chaotic Dumbness to Relaxed Alertness

From Automated Disjointedness to Orchestrated Immersion

From Passive Analysis to Active Processing

Confidential


CONCEPTUAL SOLUTION:
GLOBAL ENTERPRISE AS A SOCIAL
SYSTEM
The Tipping Point
that refers to the moment when

something unusual becomes common. The
book seeks to explain "social epidemics",
or sudden and often chaotic changes from
one state to another. (Wikipedia)

Confidential ©

Three types of people create Idea Tipping Points

Connectors are those with wide social circles.
Mavens are knowledgeable people.
Salesmen are charismatic people with powerful
negotiation skills. They exert "soft" influence rather
than forceful power.
The PROCESS of TIPPING POINTS

The Law of the Few: Find out Connectors, Mavens and Salesmen – a
few of these is what one idea needs to become an epidemic

Stickiness: Ideas or products found attractive or interesting by others
will grow exponentially for some time.

The Power of Context: Human behavior is strongly influenced by
external variables of context.

Social Scientists Classification of Social Networks

Ego-Centric Networks Socio-Centric Networks Open-System Networks

Networks that are Boundaries of the Boundaries are not
connected with a single network are clear; necessarily clear
node or individual Networks in a Box

Example, My good Example, students in a Example, network of
friends, All companies class, employees of an elite class, connections

doing business with ABC organization between corporations

Lists alone are Most studied in terms of Most interesting and
insufficient – info about fine points of network most difficult to study
connections also is structure
required

Confidential 40 ©

Social Network Archetypes

Type Customized Response Modular Response Routine Response
Problems and Ambiguous Known components – Well-defined and
Solutions but combination or predictable
sequence not known
Value Quickly framing and solving Delivering a unique Efficient and consistent
a problem in an innovative response depending response to a set of
way upon the constellation established problems
of expertise required

by the problem

Types New product dev, Surgical teams, Law Call centers, insurance
investment banks, Strategy firms, B2B sales claims processes
consulting

Confidential 41 ©

Taxonomy of Network Centric Warfare
Architectures
Architecture Characteristics
A. Centralized One central high value Hub – other low value nodes networked
and controlled by Hub
B. Hub-Request “Type E” Request based plus one or more central high value hubs
C. Hub-Swarm “Type G” Swarming plus one of more central high value hubs
D. Joint Mixture of other six types (Type A, Type B, Type C, Type E, Type F
and Type G)
E. Request-Based Nodes of same value, but with different specialized capabilities.
Request for service between nodes of different kinds
F. Mixed Mixture of “Request-Based” and “Swarming”
F1: Limited Types Small number of node types (includes the case of separate sensor,

engagement, and C2 grids”
F2: Commonality Nodes are different, but have significant commonality
G. Swarming Nodes identical or nearly so
G1: Emergent Swarming Nodes follow simple rules, like insects
G2: Situationally Aware Nodes share information to build up Situational Awareness
Swarming picture
G2(a): Orchestrated One node is a temporary “leader”
G2(b): Hierarchical Nodes are arranged in a Hierarchy
G2(c): Distributed No Leader or Hierarchy

Confidential 42 ©

Combining these three classifications – we
propose following 5 type of social networks

• Customized Response Open Swarms (CROSs)
Networks
• Modular Response Socio-Centric Request-Based
(MRSR) Networks
• Routine Response Ego-Centric Centralized (RECC)
Networks

• Customized Response Socio-Centric Hub-Swarm
(CuSHuS) Networks
• Customized Response Open Request-Based (CROR)
Networks
Organizational Forms and Social Network Types – A Framework for Analysis
Navneet Bhushan and Karthikeyan Iyer
Confidential 43 © Crafitti Consulting Private Limited

Key Differences between Organizational Forms
Organization Form  Hierarchical Ambidextrous Collaborative g i n n oLearning t o g e t h e r Emergent
craftin vation

Key function Efficient allocation Balance growth and Information flow, Continuous Evolution
of resources efficiency 1+1 > 2 improvement
Flow Uni-directional, Conditional Multi-directional, Cyclic, Directed Natural, not
top-down peer-to-peer towards ideality consciously
directed
Evolution Standard Tree The banyan tree Cross-Pollination Continuous Living system
hierarchy model improvement, pursuit principles
of perfection
Knowledge Assumed to be Some knowledge Potential to be Knowledge to be Created as needed
codified, known codified, some to be maximized through improved and
obtained sharing increased
continuously

Interdependence Clear, closed Modular Fuzzy boundaries Clear but open Boundary-less
boundaries architecture, Clear, boundaries
closed boundaries
Detection of and Central detection Multiple antennae Fuzzy, democratic Clear yet Decentralized,
Response to change and intelligence, ready for feedback, response, some decentralized adaptive response
command-control, multiple intelligence change absorbed, detection and
crisp response, centres, crisp some adapted, response, response
detection and response detection and strategic
response slow for response slow but
large org., fast for holistic
small org.

Confidential 44 ©

Social Networks and Organization Form

Organizational Forms and Social Network Types – A Framework for Analysis
Navneet Bhushan and Karthikeyan Iyer


Mapping Social Networks to Org Forms using
Analytic Hierarchy Process (AHP)


Customized Response
Open
Learning Swarm
Customized Response Customized Response
Socio-centric Open
Hierarchical Hub-Swarm Request-based

Routine Response Routine Response
Ego-centric Ego-centric Customized Response
Centralized Centralized Open
Request-based Emergent
Modular Response Modular Response
Socio-centric Socio-centric Customized Response Customized Response

Request-based Request-based Open Socio-centric
Swarm Hub-Swarm
Customized Response
Socio-centric
Hub-Swarm

Customized Response
Ambidextrous Open
Customized Response
Socio-centric Swarm
Hub-Swarm Customized Response
Open
Request-based

Collaborative

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

The Other Side - Non-Sensible

There are Many Patents Granted by Patent Offices that
can only be called absurd

Confidential 49 February 16, 2010 ©


Junior Jail
US Patent 4,205,966* Issued /
1980
Our inventor had probably changed one too many
diapers the day this invention came to mind. It's
designed to aid
in diaper changing and
cleaning up the aftermath. Sure little
legs and hands can flail and kick and a full body wiggle
doesn't make things any easier but putting junior in

restraints seems a bit extreme.
To use, simply place baby on his back, secure the torso
barrier and strap in those cute little fluttering feet. Now
take your time, relax, junior isn't going anywhere.

Confidential


International Patent Application No.
WO9939598. Headgear in the
form of a portable container
(a beer barrel?). It has a spigot
14 for dispensing the contents by
gravity or pressure. Or the spigot
may have a hose so that the

contents can be dispensed by
suction direct to the
wearer's mouth. The headgear
can also include a cooling system; a
heating system; an audio system;
and/or a visual system.
Confidential


Patent No. US4233942. A device for
protecting the ears of a long-haired
dog from becoming soiled by food
while it is eating.

French Patent Application No.
FR2694256. An amphibious horse

drawn light vehicle, with floats 13
associated with the harnessing
shafts. A preferred form has tricycle
wheels which can be raised and lowered
to provide pedal assistance. Optionally
there may be paddles on the rear
wheels.
Confidential


UK Patent Application No.
GB2221607. A glove for courting
couples who wish to maintain
palm-to-palm contact while
holding hands. It has a common
palm section, but two separate sets of

fingers.

Confidential

LIST – INVENTIVE THINKING

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

TRIZ - Theory of

Inventive Problem Solving

Confidential

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
Confidential

5 Levels of Inventions

• Pioneering Invention – based on newly discovered phenomenon

Level 5 (<0.3%) • Pushing existing technology to a higher level
• Revolutionary

• New System Developed

Level 4 (< 4%) • Interdisciplinary solutions
• Replacing old technology with New

• Radical change or elimination of one principal system component

Level 3 (19%) • One Engineering Discipline
• Resolution of a physical contradiction

• Slight Modification of the system

Level 2 (45%) • Knowledge from different areas within the industry
• Resolution of a technical contradiction

• A simple improvement

Level 1 (32%) • Knowledge within the trade
• No system conflicts are resolved

Confidential 59 February 16, 2010 © Crafitti Consulting Private Ltd.

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

Confidential

Case Study: Technological Alternatives
Study on EP0922744

Confidential Patent Benchmarking Competitor’s Patents to TRIZ Lines of System Evolution

Innovation Crafting

Idea
Generation

Situation
Assessment TRIZ Six Hats
Idea Clustering –
Solutions

Generation
DSM AHP
Solution
Implementation
Solution
Evaluation
Confidential

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”
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ALTERNATIVES”

History and Future

What you know is

limited by what you
can know today;

What you don’t
know today is what

you will be forced
to know tomorrow;

There are always limits to
Confidential
your Knowledge

History and Future

What you should do is to
create as many alternative
futures as possible and also
keep with you as many
histories as possible.
Work
You don’t know which history around

is connected to which future
– but one path is unfolding the limits
right now – you need to find
out…. to your
Confidential
Knowledge

Define Global Trends and Scenarios


Confidential

Red Ocean Versus Blue Ocean Startegy


In the red ocean, differentiation costs because firms compete with the same best-practice
principle. Here, the strategic choices for firms are to pursue either differentiation or low cost. In
the reconstructionist world, however, the strategic aim is to create new best-practice rules by
breaking the existing value-cost trade-off and thereby creating blue ocean.

Red Ocean Strategy Blue Ocean Strategy
Compete in existing market space. Create uncontested market space.

Beat the competition. Make the competition irrelevant.

Exploit existing demand. Create and capture new demand.

Make the value-cost trade-off. Break the value-cost trade-off.

Align the whole system of a firm’s Align the whole system of a firm’s
activities with its strategic choice activities in pursuit of
of differentiation or low cost. differentiation and low cost.

Confidential

Future Directed Patent Strategy Elements

Define Global Trends and Scenarios

Are we playing in the Red Ocean or are we creating
Blue Oceans? How can you create Blue Oceans and
Protect these as well.

Link business Strategy with IP Strategy
through Balanced Score Cards
Confidential

Connect and Develop


Practice of Open Innovation
(The P&G Case)

Source: Larry Huston & Nabil Sakkab, Connect And Develop – Inside Procter & Gamble’s New Model for Innovation,
Harvard Business Review, March 2006

Confidential

P&G Connect and Develop
The Complete Picture
Source: Larry Huston & Nabil Sakkab, Connect And Develop –
Inside Procterg&iGamble’s t i o n t o gfortInnovation, Harvard
craftin n n o v a New Model e h e r
Business Review, March 2006

$$
What to Search
Go To Market

How & Where to Search

Confidential Evaluate Ideas

Open Innovation Processes Six
TRIZ Thinking
• Uncertain
AHPr Hats
crafting innovation togethe
• Wasteful/Inefficient/Non-
DSM
flowing
Innovation
• Unpredictable/Stochastic Crafting
Open
Lean Innovation
• Is it possible to craft
an open innovation TRIZ Embedded
process to be LEAN? Lean Open

Innovation
• Is it possible to craft Network
an open innovation
process to be
INNOVATIVE?
Idea Hit Ratio
Idea Productivity
Confidential


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, Open
Rationality, Artificial, Closed


FINAL POINTS

• Complexity is Increasing, Scale is the New Frontier
• Deep Knowledge, Expertise may lead to Inertia and
restricted viewpoint
• 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 Learning Enterprise
• Lean Inventive Systems Thinking LIST
– we propose to be the new
framework for (R&D) INNOVATION!


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

Navneet Bhushan
(navneet.bhushan@crafitti.com)

Confidential 74

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