Innovation & Creativity:
Selectively Drawing Upon Best Practices
for a unified, disciplined approach
September 2013
Joseph S. O’Hannigan
Director, Learning Solutions, 4:11 Business Associates
Senior Associate Director, Custom & International Programs,
Stayer Center for Executive Education, Mendoza College of Business, University of
Notre Dame
Objectives & Outcomes
 Provide a powerful new framework



See the world differently
Lead innovation & change more effectively
Leverage your native ability to be creative
Integrate powerful tools & techniques
Create a dynamic new network
with other leaders
Review & Look Ahead
• Creativity & Innovation: It is within YOU
o What
do we mean by “creativity?” By “innovation?”
o Why are some people and organizations so good at this?
o Exploding some myths about innovation
• Do NOT focus on your products and services
o Really.
Everyone focuses here. Don’t.
o Broaden your view to see all TEN areas to innovate
(Products & Services are just 2)
• Some of the best: creating a unified, disciplined
approach to innovation
o There
are hundreds of tools and models and stories
• Start with the Ten Types
• Then on to effective approaches
Levels of Innovation
Common Business definitions
Lean Design definitions
Extension of product/service
Extension
New model, finish, design
Incremental
New to Company
Breakthrough
New to World
Disruptive
Multiple types, even with small innovations, can
produce Breakthrough and Disruptive results!
What areas might YOU Innovate?
© 2013 Doblin; Deloitte Consulting LLP
Recall: Lean Thinking
• Focus on differentiating VALUE from WASTE
(Everyone is a “Waste Detective”)

“Doing More and More with Less and Less,
While Coming Closer and Closer to Giving the
Customer Exactly What is Wanted”
(Toyota Production System)
6
A Lean Innovation Approach
• Using similar “Lean” thinking, we apply
tools and concepts to the “fuzzy front end”
of the Product Development Process to:
Identify & Differentiate Value from Waste
Give the customers exactly what they
want
Reduce the time to market
Provide innovation focus
7
Apply Lean Innovation Tools
*derived from 40 years of innovation tools and models
*organized by Bart Huthwaite’s Institute for Lean Design
• Bart Huthwaite, Lean Design Coach
• Founder, Institute for Lean Design
8
The “Mountain Model”
1.
End In View – “What, Why &
When”
2.
Obstacles – Boundaries &
Hurdles
3.
Strategy – Ten Types
End In View
Hurdles
– Value Creation &
Waste Prevention
4.
Strategy
Metrics – Measurement
System & Baselines
5.
6.
Metrics
Tactics – Innovative Tools
Action Plan – 90-day “What,
Who & When”
Tactics
Action Plan
Special thanks to Bart Huthwaite, Sr. and the Institute for Lean Design
9
Begin with the End in View
Why?
– First step in bridging the gap
from where you are to where
you want to go.
– Makes sure everyone is
climbing the same mountain.
– Builds “common ground.”
10
Boundaries vs. Hurdles
No painter begins with an
unlimited canvas…
…This allows us to identify the
limits of the task at hand.
Boundaries are fixed and cannot
be changed.
Hurdles are challenges that can
be overcome if the correct
resources are brought to bear
11
Deliver Optimum Value, Prevent Lifecycle Waste
-ilities, or Value
Brothers
Wasteful -ings
or Gremlins
The LEAN DESIGN EQUATION…
“Optimize Strategic -ilities, Minimize Evil -ings”
12
All Customers Crave Eight Primary Values…
Customer Primary
Values
Performability
Affordability
What It Means
Will the product perform functionally the way I
expect?
Will it be within my cost expectation?
Featureability
Will it have the features that enhance its functions to
provide me added benefits?
Deliverability
Will it be ready for me when I want it?
Usability
Maintainability
Durability
Imageability
Can I quickly and easily install it, learn how to use it?
How easy will it be for me to keep in service?
Is it robust enough to withstand the abuse myself,
and others give it?
Will it convey the image of quality and prestige I
desire?
13
Eight Primary Values Every Company Seeks…
Company Value
What It Means
Profitability
Will the product deliver profits quickly & at a level
acceptable to our company?
Investability
Will it require investment in people & equipment
beyond expectations?
Riskability
Will it expose our company, either today or tomorrow,
to excessive risk?
Produceability
Do we have, or can we acquire, the skills, experience,
and equipment to build the product?
Marketability
Will we be able to sell it easily using our existing
distribution channels?
Growthability
Does the market for the product offer significant
growth and/or market share expansion?
Leveragability
Will it enable us to enter new growth markets?
Respectability
Will it convey the image of quality and prestige we
desire?
14
Measuring the -ilities and -ings :
•Market Opportunities
Performability
Imageability
•What Your Products/Services Lack
Affordability
•Opportunities to Reduce Cost
•Where You Differentiate
Featureability
Durability
Deliverability
Maintainability
Useabiilty
15
Scoring the -Ilities
Rating
9-10
7-8
5-6
3-4
1-2
-Ility Value Level
Extremely high value. Sets the
standard for the industry
High value. Superior to that of most
competitors
Acceptable. Meets expectations most
of the time
Low value. Frequently does not meet
expectations
Extremely low value. Well below that of
all competitors
16
Identify Opportunities
Imageability
Durability
Performability
10
9
8
7
6
5
4
3
2
1
0
Repairability
Affordability
Featureability
Deliverability
Integrateability
17
Maintain Differentiation…
Performability
10
9
8
Imageability
Affordability
7
6
5
4
3
2
1
Durability
0
Featurability
Maintainability
Deliverability
Useability
Product 1
Product 2
18
Customizing the –ilities
Makes Strategy a Part of the Language
Company #1
Company #2
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Imageability
Knowledgeability
Dell-ability
Innovatability
Credibility
Breadth-ability
Sensible Indulgence
Easy Integrated Solution
Install-ability
McDonald’s-ability
Flexibility
Trust-ability
Target-ability
Dependability
Products & Services are becoming obsolete the
minute they are introduced…
The Three Sharks of
Marketplace
Technology
Competition
are eating the value in our
products, services &
organizations…
20
Three Sharks Exercise to “See the Future”
Step - Now
(months/years )
Stretch - Tomorrow
( months/years )
Marketplace
Does your design
strategy address all
the Eight Primary
Values? Are you
delivering too much?
Too little?
What are the top 57 changes you
anticipate in your
customer’s Eight
Primary Values?
Technology
Does your design take
advantage of all
existing technology?
Are you pushing the
technology too far?
What new technologies
do you anticipate
emerging?
Do you have the
capability to develop
these internally?
Competition
How competitive
are you today?
What are your
differentiators?
Are there any new
competitors who may try to
enter your market space by
offering a “simplified”
solution compared to
yours?
Leap - Future
(months /years )
Are there any
“disruptive”
marketplace
changes on the
horizon?
Are there any “disruptive”
technologies emerging in
the distant future that
could obsolete your entire
business?
Would a merger of
competitors endanger
your market position?
Are overseas
producers a threat?
21
7 Design Flaws that Add Cost & Reduce Reliability
Seven Evils
Complexity
Description
Many different processes required to deliver the product’s
value both on factory floor and for the customer’s use.
Precision
Solution requiring precision at the outer limits of
manufacturer’s ability to produce the product or customer’s
ability to use it.
Variability
Specification of difficult to control processes on the factory
floor or in the customer’s domain
Sensitivity
Solution easily flawed during factory operations or in the
customer’s domain
Immaturity
Use of solution not previously validated for a specific
application
Danger
Solutions with potential dangerous impact on humans or
environment
High Skill
Solutions requiring high degree of training and experience
22
Scoring the -ings
-Ing Waste Level
Rating
9-10
Intolerable. Highest waste in the industry.
7-8
Excessive. Worse than most competitors.
5-6
Tolerable. High, but controllable.
3-4
Low. Minimum impact on cost & quality.
1-2
Extremely low. Well below that of all
competitors
23
Measure the Evil –ings like the -ilities
24
Using the Cube to Brainstorm
Company Ilities
Customer Ilities
- Performability
- Affordability
- Featureability
- Deliverability
- Usability
- Maintainability
- Durability
- Imageability
- Profitability
- Investability
- Riskability
- Produceability
- Marketability
- Growthability
- Leveragability
- Respectability
Lean Innovation Tactics
- Sacrifice
- Shrink
- Switch
- Divide
- Unify
- Recycle
- Off-the-Shelf
- Plus Up
Innovation Levels
-
Fix Up
Incremental
Extension
Breakthrough
Disruptive
Opportunity Targets
- Functions
- Parts
- Materials
- Processes
- People
From “The Lean Design Solution:
A Practical Guide to Streamlining
Product Design and Development”
Copyright by Bart Huthwaite, Sr. and
the Institute of Lean Design 2005
Lifecycle Domains
- Customer Use
- Design
- Supply Chain
- Operations
Evil Ings
The Three Sharks
-Marketplace
-Technology
-Competition
-
Complex
Precise
Variable
Sensitive
Immature
Dangerous
High Skill
Optimize Strategic
Ilities,
Minimize Evil Ings
25
Using the Cube to Brainstorm
26
For Any/ All of the Ten Areas to Innovate,
© 2013 Doblin; Deloitte Consulting LLP
There Are Generally Five “Opportunity Targets”
Functions
28
Apply Lean Design Tactics to the Targets
Sacrifice?
Plus Up?
Shrink?
Functions
Parts
People
Switch?
Off-the-Shelf?
Processes
Divide?
Materials
Re-Cycle?
Unify?
29
Functions
Parts
Materials
Processes
People
Sacrifice
Solutions
•Eliminate finish
•Eliminate metal parts in
waterway
•Eliminate plating
•Eliminate Brazing,bright
dip, plating, & buffing
•Outsource design or
manufacture
Shrinkage
Solutions
•Reduce spout travel
•Reduce # of nuts
•Wall thicknesses
•Tube length
•Assembly parts using
tubes
•Reduce assembly
complexity
•Switch diverter & side
spray with flexible spout
•Non-metallic
waterways
•Threaded instead of
brazed
•Substitute Injection
Molding for machining
brazing, buffing &
coating
•Cross-train
employees
Switch
Solutions
•Switch sprayer w/
other side functions
Division
Solutions
•Sell side spray
separately
•Separate faucet from
baseplate
•Separate veggie sprayer
from faucet
•Separate water
contact & structural
materials
•Sell side spray & faucet
separately
•Dedicate team project
time
•Style development by
channel
Unity Solutions
•One hole and 8”
spread
•Combine valve body &
cartridge
•One piece body
•One piece valve
•Combine models into
one
•One piece flow for
machining
•Platform partnerships
Re-Cycle
Solutions
•Directional sprayer
•2-function sprayer
•Use Chrome appearance
and PEX supplies
•Diamond valve
•Use stainless for
plated look
•Machine plastic rod
with screw machines
•Capture peoples’
ideas
•Partner with others
Off-The-Shelf
Solutions
Plus Up
Solutions
•Flow aerator
•Integrated new
functions
•Quick connects
•Top-down mounting
•New valve cartridge
•Purchase existing
vendor model
•Use sister product
components
•Extend spout length
•New handles
•Purchase spout &
cartridge
•Robotic buffing
•Induction brazing
•Outsource design,
market research, etc.
•Training & Skills
30
Next Steps…
• Classify new ideas from the 8x5 Matrix
into “Step, Stretch, & Leap”
timeframes
• Rank projects within the four levels of
innovation by potential marketplace
acceptance
• New to world? New to Organization?
Incremental?
• Use marketplace feedback & internal team
rankings
31
Developing the Product Road Map
• Conduct Gap Analysis
– Look for holes in the Road Map
– Conduct more focused brainstorming
to address these
• Identify “stretch” & “leap” concepts that
require immediate resources
The result can be visual…
32
The Product Road Map
Level of
Innovation
FIX UP
LINE EXT.
(Incremental)
STEP UP 2001
Rank
9
12
13
15
25
30
2
3
4
5
6
7
8
14
20
22
24
26
27
Project Description
1Q
SKU Rationalization
Reduce lead times
Consolidate brands
Rep Training (memory stick)
Add barcodes to all trays
Direct mail advertising
Product 1 retail
Product 2 dual-part
Product 2 dual fix
Product 2 stop
Add new component to Product 2
Product 3 dual-part
Product 3 dual fix
Contractor packs
Add tear strip to sleeve
Decorative add-on
Consumer kits
Designer options
Expand Special Finishes
28
Company "kits"
1
10
11
1b
18
19
21
Add components to Product 2
New feature #1
New feature #2
New feature #3
New feature #4
Repairable Product 3
Repairable Product 2
2Q
3Q
STRETCH' D TO 2002
4Q
1Q
2Q
3Q
4Q
LEAPIN' INTO 2003
1Q
2Q
3Q
Distan
4Q
NEW MODEL
FINISH/DESIGN
(Extension)
NEW - ORG
NEW - WORLD
(Disruptive)
33
1Q
2
Worksheets & Application Tips
johannig@nd.edu
34
Three Sharks Exercise
Step - Now
(months/years )
Stretch - Tomorrow
( months/years )
Marketplace
Does your design
strategy address all the
Eight Primary Values?
Are you delivering too
much? Too little?
What are the top 5-7
changes you anticipate
in your customer’s Eight
Primary Values?
Technology
Does your design take
advantage of all existing
technology? Are you
pushing the technology
too far?
What new technologies do
you anticipate emerging?
Do you have the capability
to develop these
internally?
How competitive are
you today? What are
your differentiators?
Are there any new
competitors who may try to
enter your market space by
offering a “simplified”
solution compared to yours?
Competition
Leap - Future
(months /years )
Are there any
“disruptive” marketplace
changes on the horizon?
Are there any “disruptive”
technologies emerging in
the distant future that could
obsolete your entire
business?
Would a merger of
competitors endanger
your market position?
Are overseas producers
a threat?
35
Step - Now
(
)
Stretch - Tomorrow
(
)
Leap - Future
(
)
Marketplace
Technology
Competition
36
Setting Our Objectives…
 What we are trying to accomplish
 Why we want to accomplish it
 When (by what date) we have to implement the
plan
“If we don’t know where we’re going
any road will take us there…”
37
Begin with the End in View
Why?
– First step in bridging the gap
from where you are to where
you want to go.
– Makes sure everyone is
climbing the same mountain.
– Builds “common ground”.
38
What?
Why?
When?
39
Boundaries & Hurdles
No painter begins with an
unlimited canvas…
– This allows us to identify the
limits of the task at hand.
Boundaries are fixed and cannot be
changed.
Hurdles are challenges that can be
overcome if the correct resources are
brought to bear
40
Boundaries
Hurdles
41
All Customers Crave Eight Primary Values…
Customer Primary
Values
Performability
Affordability
What It Means
Will the product perform functionally the way I
expect?
Will it be within my cost expectation?
Featureability
Will it have the features that enhance its functions to
provide me added benefits?
Deliverability
Will it be ready for me when I want it?
Usability
Maintainability
Durability
Imageability
Can I quickly and easily install it, learn how to use it?
How easy will it be for me to keep in service?
Is it robust enough to withstand the abuse myself,
and others give it?
Will it convey the image of quality and prestige I
desire?
42
Customer Domain
Primary Values
Rating
(1-10)
Reasons Why
Performability
Affordability
Featureability
Deliverability
Usability
Maintainability
Durability
Imageability
43
Scoring the -ilities
Rating
9-10
7-8
5-6
3-4
1-2
-Ility Value Level
Extremely high value. Sets the
standard for the industry
High value. Superior to that of most
competitors
Acceptable. Meets expectations most
of the time
Low value. Frequently does not meet
expectations
Extremely low value. Well below that of
all competitors
44
…Eight Primary Values Every Company Seeks…
Company Value
What It Means
Profitability
Will the product deliver profits quickly & at a level
acceptable to our company?
Investability
Will it require investment in people & equipment
beyond expectations?
Riskability
Produceability
Will the it expose our company, either today or
tomorrow, to excessive risk?
Do we have, or can we acquire, the skills, experience,
and equipment to build the product?
Marketability
Will we be able to sell it easily using our existing
distribution channels?
Growthability
Does the market for the product offer significant
growth and/or market share expansion?
Leveragability
Will it enable us to enter new growth markets?
Respectability
Will it convey the image of quality and prestige we
desire?
45
Customer Domain
Primary Values
Rating
(1-10)
Reasons Why
Profitability
Investability
Riskability
Produceability
Marketability
Growthability
Leverageability
Respectability
46
Scoring the -ilities
Rating
9-10
7-8
5-6
3-4
1-2
-Ility Value Level
Extremely high value. Sets the
standard for the industry
High value. Superior to that of most
competitors
Acceptable. Meets expectations most
of the time
Low value. Frequently does not meet
expectations
Extremely low value. Well below that of
all competitors
47
Current State Mapping…
Customer Ilities
Performability
Imageability
Affordability
Durability
Featureability
Current
Competitor
Repairability
Deliverability
Integrateability
48
Customer Domain
Primary Values
Rating
(1-10)
Reasons Why
Performability
Affordability
Featureability
Deliverability
Usability
Maintainability
Durability
Imageability
49
Scoring the -ilities
Rating
9-10
7-8
5-6
3-4
1-2
-Ility Value Level
Extremely high value. Sets the
standard for the industry
High value. Superior to that of most
competitors
Acceptable. Meets expectations most
of the time
Low value. Frequently does not meet
expectations
Extremely low value. Well below that of
all competitors
50
Current State Mapping…
Customer Ilities
Performability
Imageability
Affordability
Durability
Featureability
Current
Competitor
Repairability
Deliverability
Integrateability
51
Does the Consumer Agree?
Up until now, we have used our INTERNAL
assessments of the company and competition to
generate our scores.
We must market-test these opinions to see if we are
connected to reality.
 Market Surveys
 Talking with the Customer and the Consumer
 “Communities of Interest”
52
Scoring the Evil –Ings…
• You don’t need to be in the design field to
address the evil –Ings.
• Use the evil –Ings scoring system to let your
product designers know where there are
opportunities to fix current problems
• The evil –Ings spider chart becomes a way to
communicate issues between manufacturing and
design
53
7 Design Flaws that Add Cost, Reduce Reliability
Seven Evils
Complexity
Description
Many different processes required to deliver the product’s
value both on factory floor and for the customer’s use.
Precision
Solution requiring precision at the outer limits of
manufacturer’s ability to produce the product or customer’s
ability to use it.
Variability
Specification of difficult to control processes on the factory
floor or in the customer’s domain
Sensitivity
Solution easily flawed during factory operations or in the
customer’s domain
Immaturity
Use of solution not previously validated for a specific
application
Danger
Solutions with potential dangerous impact on humans or
environment
High Skill
Solutions requiring high degree of training and experience
54
Scoring the -Ings
-Ing Waste Level
Rating
9-10
Intolerable. Highest waste in the industry.
7-8
Excessive. Worse than most competitors.
5-6
Tolerable. High, but controllable.
3-4
Low. Minimum impact on cost & quality.
1-2
Extremely low. Well below that of all
competitors
55
The Seven
Evils
Rating
Why
Complexity
Precision
Variability
Sensitivity
Immaturity
Danger
High Skill
56
Evil -Ings
High Skill
Complexity
10
9
8
7
6
5
4
3
2
1
0
Precision
Danger
Variability
Current
Future
Immaturity
Sensitivity
57
Future State Mapping…
Based on the information we now have,
including the end-in-view, boundaries &
hurdles, and three sharks, what does our
future state look like?
In your groups, come to consensus about what
one or two Customer –ilities you want to
move and what single –ing you want to
address.
58
Future State Mapping…
Customer Ilities
Performability
Imageability
Affordability
Durability
Featureability
Current
Competitor
Repairability
Deliverability
Integrateability
59
Future State Mapping
Evil -Ings
High Skill
Complexity
10
9
8
7
6
5
4
3
2
1
0
Precision
Danger
Variability
Current
Future
Immaturity
Sensitivity
60
Targets and Tactics…
• These two or three items are now the Strategy input
to our focused brainstorming
• Ask yourself – “What can I do to improve my –ility (or
–ing) score from X to Y?”
• Use the 8 x 5 Matrix to drive your brainstorming
61
Using the Cube to Brainstorm
Company Ilities
Customer Ilities
- Performability
- Affordability
- Featureability
- Deliverability
- Usability
- Maintainability
- Durability
- Imageability
- Profitability
- Investability
- Riskability
- Produceability
- Marketability
- Growthability
- Leveragability
- Respectability
Lean Innovation Tactics
- Sacrifice
- Shrink
- Switch
- Divide
- Unify
- Recycle
- Off-the-Shelf
- Plus Up
Innovation Levels
-
Fix Up
Incremental
Extension
Breakthrough
Disruptive
Opportunity Targets
- Functions
- Parts
- Materials
- Processes
- People
From “The Lean Design Solution:
A Practical Guide to Streamlining
Product Design and Development”
Copyright by Bart Huthwaite, Sr. and
the Institute of Lean Design 2005
Lifecycle Domains
- Customer Use
- Design
- Supply Chain
- Operations
Evil Ings
The Three Sharks
-Marketplace
-Technology
-Competition
-
Complex
Precise
Variable
Sensitive
Immature
Dangerous
High Skill
Optimize Strategic
Ilities,
Minimize Evil Ings
62
Functions
Parts
Materials
Processes
People
Sacrifice
Solutions
Shrinkage
Solutions
Switch
Solutions
Division
Solutions
Unity
Solutions
Re-Cycle
Solutions
Off-TheShelf
Solutions
Plus Up
Solutions
63
Next Steps…
• Classify new ideas from the 8x5 Matrix
into “Step, Stretch, & Leap”
timeframes
• Rank projects within the four levels of
innovation by potential marketplace
acceptance
• New to world? New to organization?
Incremental?
• Use marketplace feedback & internal team
rankings
64
Level of
Innovation
STEP UP 2011
Rank
Project Description
1Q
2Q
3Q
STRETCH'D TO 2012
4Q
1Q
2Q
3Q
4Q
LEAPIN' INTO 2013
1Q
2Q
3Q
4Q
FIX UP
LINE EXT.
Incremental
NEW MODEL
FINISH/DESIGN
(Extension)
NEW - ORG
(Breakthrough)
NEW - WORLD
(Disruptive)
65
Distan
1Q
What Do I Do Next?
1. Market test your concepts
2. Add your current design projects to the map
3. Target “Step”, “Stretch” & “Leap” projects for
concurrent development
4. Assess Resource Availability
johannig@nd.edu
66
Questions & Answers
johannig@nd.edu
4:11 Business Associates
On the way of wisdom I direct you,
I lead you on straight paths.
When you walk your step will not be impeded,
And should you run, you will not stumble.
Hold fast to instruction, never let it go;
Keep it, for it is your life.
Proverbs 4: 11- 13
johannig@nd.edu