Innovation a driver for value creation by QMD

Topics: Innovation, Management, Creativity Pages: 13 (1224 words) Published: February 20, 2014
Innovation
A Driver for Value Creation
by QMD
Innovation and Value Creation Technical Committee

http://www.asq-qm.org/innovation-and-value-creation

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
new 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

Innovation is Quality for Tomorrow

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

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 ? >>>
Quality Management Division
Innovation and Value Creation Technical Committee

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
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, it’s too late – James Goldsmith
Quality Management Division
Innovation and Value Creation Technical Committee

It’s Not Just Creativity
Creativity does not guarantee actual innovation.
– Peter Drucker
The trouble with many good ideas is that
people have the notion that their work is done,
that it is up to somebody else to make it
happen. – Ted Levitt, Harvard Business School
Almost anyone can have a good idea.
What is needed for actual innovation are
people who can assemble, coordinate,
and execute the necessary elements....
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