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Going beyond Jugaad:Building a Systematic Innovation Capability

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Build a pipeline

3 ImproveBatting Avg

2 Improve idea velocity

Theme 1: Build a Pipeline

1. Lay the Foundation2. Create a Challenge Book3. Build Participation

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LAY THE FOUNDATION

STEP 14

8 Steps to Innovation Excellence

Build a Pipeline

1. Lay the Foundation Create Innovation Programme

E.g. Jeff Immelt “Imagination Breakthroughs” - $1B potential

E.g. Cognizant “Managed Innovation Programme” 3 Key Processes

Idea Management Buzz Creation Training & Development

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Idea Box

source scope stages

technology selection funding

Idea Management6

Year No of Suggestions Participation Adoption

suggestions per person Rate(%) Rate(%)

1951 789 0.1 8 23

1971 88,607 2.2 67 72

1986 2.6million 48 95 96

40 years, 20 million ideas

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The Power of Small Ideas

“There is no genius in our company. We just do whatever we believe is right, trying every day to improve every little bit and piece. But when 70 years of very small improvements accumulate, they become a revolution”

From Interview with Katsuaki Watanabe in HBR, July-Aug 2007

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Year Ideas Ideas/person/

year

% participation

% implementatio

n

FY08 327 0.01 2 NAFY09 5,551 0.07 3 NAFY10 20,848 0.20 9 14FY11 78,354 0.60 21 13FY12 1,34,2

420.90 37 14

Source: Kumar Sachidanandam et. al “Is managed innovation an oxymoron?”, Jan 7, 2013http://www.mixprize.org/story/managed-innovation-oxymoron

Small Ideas Matter:Cognizant’s Innovation

Programme9

Buzz Creation (creative campaigns)

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Titan: The 3M of India?11

Some Titan Innovation Campaigns 2004: “What is new?”

Identification and implementation of 5 new ideas by every supervisor on the shopfloor

2006: HOD Fund Every head of department authorised to

spend upto Rs. 1 lakh on an idea without any approvals

2008: “Simplify & Automate” Most successful theme at Titan

2009: “Innovation School of Management” Making every employee an innovator

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Training & Development13

Training & Development

Titan Innovation School of Management “Everybody an innovator by 2015”

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Focus area TechniquesDesign thinking Immersive research, rapid

prototyping, brainstormingSystems thinking TRIZ

Systems archetypesTheory of constraints (TOC)

Lateral thinking Edward de Bono’s six thinking hats

CREATE A CHALLENGE BOOK

STEP 215

8 Steps to Innovation Excellence

Build a Pipeline

2. Create a Challenge Book

Feel the Pain

Sense the Wave

See the Waste

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Why was the Bajaj Pulsar successful?

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Why was the Bajaj Pulsar successful? Pain: New generation

of bike riders wantedmore than transportation:power & style at areasonable cost

Wave: Young, maleemployees withdisposable income faraway from home

Waste: Powerful bikes consumed too much fuel (solved by DTSi technology)

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Vigyanlabs Nasscom Innovation Award 201319

Vigyanlabs – inspired by pain, wave, waste Nasscom Innovation Award 2013

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Pain Wave

Waste

7 Themes Digital consumers Emerging economies Sustainable tomorrow Smarter organizations New commerce Pervasive computing Healthcare economy

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http://jugaadtoinnovation.blogspot.in/2012/04/infosys-innovation-to-build-tomorrows.html

BUILD PARTICIPATION

STEP 322

8 Steps to Innovation Excellence

How to build participation…

Role model

Community of practice

Innovation catalyst

Rewards & recognition

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Theme 2: Improve the Idea Velocity

4. Experiment with Low Cost at High Speed

5. Go Fast from Prototyping to Incubation

6. Iterate on the Business Model

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EXPERIMENT WITH LOW COST AT HIGH SPEED

STEP 425

8 Steps to Innovation Excellence

Improve the Idea Velocity

4. Experiment with Low Cost at High Speed

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itchidea

demoimpact

Feasibility Loop Viability Loop

2 months

Sep2003

Nov2003

Feb 2004

3 months 2 months

Apr 2004

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Creating a Climate for Experimentation

Failure plays a critical role in innovation Post-It Notes & failed adhesives

Create infrastructure, give resources for expts

Have a high trial rate: fail fast, learn fast

Can you do the “last” experiment first?

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Avoid the “Failure Fallacy”29

GO FAST FROM PROTOTYPE TO INCUBATION

STEP 530

8 Steps to Innovation Excellence

Improve the Idea Velocity

5. Go Fast from Prototyping to Incubation

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ITERATE ON THE BUSINESS MODEL

STEP 632

8 Steps to Innovation Excellence

Improve the Idea Velocity

6. Iterate on the Business Model33

Theme 3: Increase the Batting Average

7. Build an Innovation Sandbox8. Create a Margin of Safety

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BUILD AN INNOVATION SANDBOX

STEP 735

8 Steps to Innovation Excellence

Increase the Batting Average7. Build an Innovation Sandbox

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The Power of Platforms

7 Themes Digital consumers Emerging economies Sustainable tomorrow Smarter organizations New commerce Pervasive computing Healthcare economy

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WalletEdge

Platform Offering

http://jugaadtoinnovation.blogspot.in/2012/04/infosys-innovation-to-build-tomorrows.html

Open Innovation Procter & Gamble

Works with universities, suppliers and outside inventors

Offers them a share in the rewards

50% of P&G’s new-product ideas originate outside of the firm

Major source of growth

Eureka Forbes Partners with

technology suppliers from across the world

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CREATE AMARGIN OF SAFETY

STEP 839

8 Steps to Innovation Excellence

Increase the Batting Average8. Create a Margin of Safety

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Could a premortem have prevented Dreamliner problems?41

A premortem might havesurfaced important failure

modes such as problems withthe Lithium-ion battery

Where do you Stand?42

Smallideas

Patentableideas

New productideas

New businessideas

IP/person/yr

Patents/yr

Potential biz impact / % of rev

100 ideas, $1 B each

Machine tools: 100 Cr Rev, 2 Cr each idea

Idea/person/yr

TVS Motors: 44

Tata Motors: 22

Cognizant: 1

Measuring Idea Pipeline43

Experiments ReviewsResponseTime

Ideas withchampions

Shell Gamechanger< 48 hr

Toyota < 1month

% of ideas

#of exp

Quarterly

Measuring Idea Velocity44

Success rate Biz impactSandbox PartnershipNetwork

# of activepartners

P&G: 15%->50%Cognizant:$550m/year

Avg responsetime to a challenge

# of sandboxes

# of technologyplatforms3M: 45

Measuring Batting Average

45

Don’t track ideas

Level-1: Ad Hoc(Jugaad)

Idea MgmtBuzz creationL&DInnovationdashboardParticipation10%+

Level-2: Foundation(of 3 key processes)

Prototypes>10%(ideas)Response time<1monthParticipation 30%+Incubation pipeline Review: QuarterlyBiz impact calculator in place

Level-3: Engaged(In Experiments/Reviews)

Idea/person/yr >1Big idea pipeline>10% of revenue# of sandboxes>1

Level-4: BalancedPortfolio

Success rate of implemented ideas>50%% of rev from Innovin last 5 yrs>30%

Level-5: High biz Impact (Excellence)

v6: 23-Aug-2013

Assess your innovation maturityFrom Jugaad (level-1) to Excellence (level-5)

Creative confidence

Incubation effectiveness

My Contacts:

Phone: +91 9845022710 Email: rishi@iimb.ernet.in Blog:

http://jugaadtoinnovation.blogspot.in Web: http://www.iimb.ernet.in/~rishi Book:

http://www.8stepstoinnovation.com

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THANK YOU