Consortium for Corporate Entrepreneurship

Transcription

1 Consortium for Corporate Entrepreneurship Peter A. Koen, Ph.D. Associate Professor Wesley J. Howe School of Technology Management Phone: Fax: January 20, 2002

2 Dilbert Getting a good idea 2

3 Dilbert Getting a Good Idea 3

4 Dilbert Getting a Good Idea 4

5 Dilbert Large vs. Small Company 5

6 Dilbert Large vs. Small Company 6

7 Dilbert Large vs. Small Company 7

8 Agenda Consortium (What is it?) Mission Focus (Front End of Innovation) Idea Generation Insights from highly profitable products How did they come about? What were the impediments? Market Attack Teams Knowledge Flow and Knowledge Creation Definitions Customer Knowledge Knowledge Flow Knowledge Creation Framework Inventors Community of Practice ( The Pioneers ) 8

9 Mission To significantly increase highly profitable products through focused research in the fuzzy front end of the innovation process 9

10 What is the Front End of Innovation? Front End of Innovation is defined by: Activities that come before the formal and well structured New Product Development (NPD) Portion Front End of Innovation FEI activities are less structured and less predictable New Product Development New Product Portion includes BOTH product and process Structured with a formalized and prescribed set of activities and questions Commercialization We do NOT use the term Fuzzy Front End since it implies that the FEI is mysterious, uncontrollable and cannot be managed. 10

11 Why Focus on the Front End? Differences Work Commercialization Date Funding Revenue Expectation Activity Measure of Progress Front End Innovation Experimental, often chaotic. Eureka moments. Can schedule work but not invention Unpredictable Depends. In the beginning stages many projects may be bootlegged Often uncertain with a great deal of speculation Individual or team emphasis in areas to minimize risk Strengthened Concept New Product Development Portion Disciplined and goal oriented with a project plan High degree of certainty Budgeted Believable with increasing certainty as the release date gets closer Multi-function product/process development team Milestone Achievement 11

12 Agenda Consortium (What is it?) Mission Focus (Front End of Innovation) Idea Generation Insights from highly profitable products How did they come about? What were the impediments? Market Attack Teams Knowledge Flow and Knowledge Creation Definitions Customer Knowledge Knowledge Flow Knowledge Creation Framework Inventors Community of Practice ( The Pioneers ) 12

13 Idea Generation Case Study Objective: To ground understanding of front end in real examples 13

14 Case Studies ExxonMobil - 2 breakthrough (both successes) Best Food - 2 platform project (Both successes) DuPont - 1 incremental (Success) and 2 platform (One Success and One Failure) Mobil - 1 incremental and 1 platform (Both successes) Corning (1 platform and 1 breakthrough) Total = 11 Case Studies 14

15 Case Studies of Highly Profitable Products Idea Generation is dependent on a 3-dimensional landscape Well known methodologies that "good" companies practice with high proficiency Marketing Novelty Knowledge Flow Technical Novelty Knowledge flow issues begin to hamper development time Solutions are fortuitous Long time to pay off Knowledge flow to scientist is critical Superb scientists 15

16 Idea Generation Insights Highly Profitable Projects: Require a trigger to get started Constancy of Purpose Require both product and executive champions Get started based on customer and technology trend analysis Aggressive Goals Utilize early field trials Utlize early partnering outside their area of core competence Have SUPERB inventors combined with an element of fortuitous discovery 16

17 Trigger Highly Profitable Projects typically get started with a Trigger Examples New Competitor Movement Fire in Plant CEO initiatives (ex: innovation initiative, fire in plant, lower revenue, holy grails, strategic intent, proposal requests) Issue How to create more opportunities for triggers 17

18 Constancy of Purpose Leadership needs to stay the course 18

19 Champions Both Product and Executive Champions are needed Product champions are need to move products across valley of death if adequate bootlegged funds are available Product champions often champion the wrong project Business executive champion needed for almost all projects Valley of Death Idea Concept and Technology Development Markham, unpublished 19

20 Customer and Technology Trends Best Projects started with early customer and technology trend analysis before any specific product concepts are developed 20

21 Aggressive Goals Customer and technology trend analysis led to the identification of aggressive product and process concepts 21

22 Field Trials Early Field Trials identified unanticipated problems 22

23 Partnering Early Partnering Outside the Companies area of Core Competence 23

24 Superb Inventors SUPERB highly inventive individuals with consistent track record of invention identified solution no one else saw Technology solutions were often fortuitous Fortuitous that they had the correct core competence for the solution to the problem Inventors effectively used local scientific network Best practices would have been to pursue alternate scientific approaches 24

25 Superb Inventors Invention is an individual sport NOT a team sport vs. Analysis of 1,000 Honeywell patents indicated that 10 people were responsible for over 85% of the patents (Smith, Herbien and Morris, R-T Journal, 1999) 25

26 Superb Inventors Inadequate Knowledge Flow is a SIGNIFICANT impendent to increasing the speed of breakthrough product development Data/Information/ Knowledge Information/ Knowledge Flow Electronic Data Bases People Superb Inventor(s) Paper 26

27 Market Attack Teams Perform Case Studies on Market Attack Teams New Organizational/Team structure appears to emerging (Ex: GM, Kodak, Armstrong, P&G, 3M) 3M Example Dedicated Teams Utilizing a 4 phase lead user process to identify breakthrough products Scope & Goals Select markets & needs Select concepts to focus on Select best concepts 27

28 Agenda Consortium (What is it?) Mission Focus (Front End of Innovation) Idea Generation Insights from highly profitable products How did they come about? What were the impediments? Market Attack Teams Knowledge Flow and Knowledge Creation Definitions Customer Knowledge Knowledge Flow Knowledge Creation Framework Inventors Community of Practice ( The Pioneers ) 28

29 Definitions Data Collection of Facts Information Collection of organized data May inspire vision, but can t bring the vision into reality Knowledge Information combined experience, context and reflections that may be used to make decisions and take actions Is a human act (i.e. a residue of thinking) Created in the present Belongs and circulates between people Breakthrough knowledge occurs at the boundaries of the old 29

30 Knowledge Flow Customer Knowledge Technology Knowledge 30

31 Explicit Knowledge Can be put on paper, formulated in sentences and captured in drawings Explicit knowledge may be transferred through language (word, graphics, etc.) 31

32 Tacit Knowledge Individual perception, rules of thumb, intuition Examples Learning to ride a bike Putting together a high precision watch Making sense of a seismic readout for identifying a new oil field Language is NOT the primary mechanism for sharing of Tacit knowledge 32

33 Tacit Knowledge Tacit knowledge is transferred by socialization Direct Observation Imitation Experimentation Joint Execution 33

34 Customer Knowledge Ethnography Approaches Lead User Methodology Customer Archetypes Identifying Customer Needs for Real Breakthroughs 34

35 Ethnography Observing Story-Telling Outside the Fish-Bowl Inside the Fish-Bowl 35

36 Ethnography An Example A new hunting boot 36

37 Lead User Lead User Tool Box supplied by Company 37

38 Lead User An Example New methods for controlling sterility and developing new surgical drape products Lead users in underdeveloped countries Analog lead users Veterinary Surgeon Make-up Artist 38

39 Customer Archetypes Dr. G. Coltaire Rapaille President of Archetype Discoveries 39

40 Customer Archetypes Chrysler s PT Cruiser I m told that this (i.e.. PT Cruiser) is as hot a seller as we ve had since 1984 when minivans came out sales manager for Mullane Chrysler 40

41 Customer Archetypes* Dr. G. Coltaire Rapaille President of Archetype Discoveries Archetype research identifies the unstated reptilian hot button, the instinctive part of the brain *Archetype: An inherited idea or mode of thought that is derived from the the experience of the race and is present in the unconscious of the individual 41

42 Customer Archetypes Code for the PT-Cruiser Exterior People wanted an SUV They were saying It s a jungle out there. People want to kill you. It s terrible. You don t know who s going to attack you. You need to be tough. I feel safe in a big thing. Same reptilian code for people who purchase fourwheel drive and big SUV s like Expeditions and Excursions 42

43 Customer Archetypes Code for the PT-Cruiser Interior People wanted plush interior Inside people wanted the Ritz Carlton People want soft and smooth and nice leather, wood and good style 43

44 Agenda Consortium (What is it?) Mission Focus (Front End of Innovation) Idea Generation Insights from highly profitable products How did they come about? What were the impediments? Market Attack Teams Knowledge Flow and Knowledge Creation Definitions Customer Knowledge Knowledge Flow Knowledge Creation Framework Inventors Community of Practice ( The Pioneers ) 44

45 Knowledge Flow How do we make this process occur faster? Data/Information/ Knowledge Information/ Knowledge Flow Electronic Data Bases People Superb Inventor(s) Paper 45

46 Knowledge Creation Framework Technology Based Communities of Practices All better enabled by the use of IT Tools and Collaborative Environment Project Snapshots Knowledge Mapping Shared Future Vision Importance Gap 46

47 Technology Communities of Practice Diversity Creates new knowledge within the community Connects, acquires, exchanges and builds new knowledge New science occurs through the process of building upon internal and external knowledge communities Breakthrough Knowledge Usually Occurs at the Boundaries of the Old McDermott,

48 Knowledge Mapping Where should Communities of Practice be focused? Technology maps which define the core capabilities, competencies and gaps of the organization Importance Skill Importance Importance Gap Gap Technology Knowledge Strategy should be based on Core Competencies and Capabilities of the Organization Core Competencies and capabilities are more enduring than product and market knowledge 48

49 Shared Future Vision Where will the new products of the future come from? Unmet (i.e. holy grail ) and often unarticulated customer needs Shared Vision of the Future Strategic Arenas Areas of Breakthrough Nothing happens until there is a vision Genuine energy, enthusiasm and preference occurs, even in the face of setbacks, when people understand the vision of the future It is a process of continually focusing and refocusing on what one truly wants.senge, Peter, The Fifth Discipline: The Art & Practice of the Learning Organization, Currency Doubleday, NY,

50 Project Snapshots Collaborative Project Snapshots LiveLink ( NetMeeting ( WebEx ( E-room ( Captures the current and past learning of the projects Approaches, insights and outcomes are captured from experiences of: What is working? Has worked What hasn t? 50

51 IT Tools IT Tools Better Enable Knowledge Creation Focus of November 29, 2001 IT Tools Symposium Inventing Tools TRIZ Tech Optimizer ( Ideation International ( Mind Mapping Mindmanager ( Visualization Tools ClearForest ( Spotfire ( Intellectual Property Aurigin ( MapIt ( Delphion ( Ip Capital ( 51

52 IT Tools IT Tools Better Enable Knowledge Creation Technology Search Engines Semantic search engines Co-Brain ( Ex-Caliber ( Semio ( Co-citation Literature Searching Vx Insight 52

53 Collaborative Environment Collaborative and Playful Environments Better Enable Knowledge Creation 53

54 Agenda Consortium (What is it?) Mission Focus (Front End of Innovation) Idea Generation Insights from highly profitable products How did they come about? What were the impediments? Market Attack Teams Knowledge Flow and Knowledge Creation Definitions Customer Knowledge Knowledge Flow Knowledge Creation Framework Inventors Community of Practice ( The Pioneers ) 54

55 Inventors Communities of Practice Goal: Create a real and virtual environment for continuous learning by and for key inventors to provide them with a broad repertoire of both technical and business management techniques for achieving breakthrough Products and Services The Pioneers Frequent Meetings Highly Interactive Collaborative Website 55

56 Best Practices for Communities Highly interactive and eclectic web site that will emphasize EASE of USE and encourage people to people linkages Highly Interactive Collaborative Website Will contain a site for threaded discussions A virtual place which will allow PC based video meetings Contains articles, meeting notices, web sites, books, stories from inventors, etc. etc. all related to knowledge creation in the Front End of Innovation Streaming video from speakers All of the speaker presentations from all of the presentations will be digitally taped and available on the web site for people to view MUST be ease to use and access with on-line immediate phone contact for help Easy to use software reduces the friction in connecting with the community 56

57 Highly Interactive Collaborative Web Site 57

58 Highly Interactive Collaborative Web Site 58

59 Conclusions Idea Generation Dependent on a 3 dimensional landscape Eight characteristics were found in highly profitable products Focusing current effort on Market Attack Teams Knowledge Creation Ineffective knowledge creation is a SIGNIFICANT impediment to product implementation Framework which describes knowledge creation was identified Creation of a real and virtual environment for continuous learning by and for inventors to provide them with the best repertoire of the BEST technical and management techniques for achieving breakthroughs 59