TTMG 5103 Session 5 Techniques and Tools for Refining Innovation Opportunities

1. TTMG 5103 Session 5 Techniques and Tools for Refining Innovation Opportunities Amisu Salam-Alada SCE, Carleton University

2. Agenda • Managerial challenges & Objective • Resource Optimization • Make sure you use all available resources • Functional Analysis • Scrutinize your system for innovation • Trend Prediction • Learn from evolution’s genetic code • Creative Challenge • Sacrifice the sacred cows • Lessons learned • Conclusions

3. Managerial Challenges • Innovation is all about capitalizing on opportunity to fulfill customer expectation not yet met or in a superior ways, however • Finding a superior way is very difficult • At the core of most opportunities lies a difficult problem that does not need just to be ‘addressed’ but really solved one way or another • Solving the problem may require new, unknown yet, ways of doing things

4. Objective • What will be learned • How to generate substantive ideas for closing customer-expectation gaps or innovation opportunities • How to refine these opportunities using different techniques with specifically designed tools

5. Objective • What can be done with the knowledge • Use the techniques to leverage latent brainpower beyond what resides in the immediate consciousness of an individual • Solve innovation problems and add more value to existing solutions

6. Agenda • Managerial challenges & Objective • Resource Optimization • Make sure you use all available resources • Functional Analysis • Scrutinize your system for innovation • Trend Prediction • Learn from evolution’s genetic code • Creative Challenge • Sacrifice the sacred cows

7. Resource Optimization • Using existing resources to solve innovation problems and increase the value of a solution relative to existing options • Used when there is need to come up with solution ideas that provide higher value than existing ones • Key components • list available resources within and outside • use idea-generation techniques to figure out how available resources can be applied to the innovation problem

8. Resource optimization – Background • Resource optimization is hardly considered in most places where creative ideas are highly needed • People prefer fire-brigade approach • i.e. solve problem through additive approaches rather than using elegant solutions that make use of available resources • Resources that could optimized could be machines, people, equipment, money, gravity, air, vacuums, waste • Examples: • heat from car engine  keeping warm • gravity gives centripetal force to keep satellite in orbit • Resources available in the past & future can be considered as well

9. Six types of resources for solving innovation problems

10. Types of resources for solving innovation problems - I • Material resources • Waste, raw materials, modified materials and inexpensive materials • Time resources • Parallel operations, pre and post-function work • Information resources • Data usage, computer networks, public data and information

11. Types of resources for solving innovation problems - II • Field resources • Energy in system (thermal, mechanical) • Energy in environment (gravity, light, wave, wind) • Space resources • Empty space, nesting components • Function resources • Harmful function converted to good one or enhancing the secondary effects of functions

12. Steps for Resources Optimization (RO)

13. RO: Step 1 Formulate the problem • Problem to be optimized can be formulated by asking the following questions: • What job/problem or task creates focus for your innovation effort? • What are the associated customer and provider outcome expectations? • Any job statement created? • Scenarios case - Titanic • Job to be done is to save 2223 people with 1178 lifeboat seats available • Rescue ship arrives in 4 hours, ship sinks in 2 hours

14. RO: Step 2 Compose a list of resources • Make inventory of resources available • List internal resources to the system first, then those that are by-products of your internal and external resources

15. RO: Step 3 Analyze the resource list • The key point here is • Narrow the resource lists to only those that have the most leverage potential to change the system in a way that solves the inventive problem • Do not create unwanted side effects of drawbacks • Find an equation to better utilize certain resources as a pathway to innovation: Y=f(X) • To achieve the expected outcome Y, the X resource must perform the function without added complications, cost or undesired effects

16. Six options for working with Resources Optimization

17. Options for working with RO - I • Resource utilization • Convert existing resources to new ones through the application of inventive field (e.g. burn fuel to generate heat) • Resource Accumulation • Make use of device to increase the amount of a resource and then release it • e.g dam to accumulate water for other purpose • Resource combination • Add one resource to another (salt to water to affect buoyancy)

18. Options for working with RO - II • Resource concentration • Use a field to concentrate a resource to an effective level (e.g microwave oven, laser for eye surgery) • Resource evolution • Envision the evolution of a system- what resources might evolve and how (using plant to generate oxygen) • Resource scaling • Change the scale or magnitude of a resource property (concentrated vaccine dilutes after injection)

19. Example (Titanic) • Several resources could have been used to save lives • Team of people could have been organized to perform functions such as • blocking the hole in the ship with clothes, mattresses to delay flooding rate • transport people from ship to the iceberg to stay warm until rescue ship arrives • use lifeboats to shuttle people back and forth to the nearby iceberg • use empty suitcases and wooden furniture as mini lifeboats

20. General Electric’s Jenbacher engines • Produces power for greenhouses, businesses and homes using patented technologies • Though run on natural gases but can also run on gases from coal mines, sewage and landfill • Designed to harness these available resources that might otherwise be wasted

21. Moment of truth related to RO • Discussion time • Examples • Titanic • Harnessing Solar/Wind energy to generate power • Rural community • Internet and VoIP • Power generation by the national grid not enough/regular

22. Agenda • Managerial challenges & Objective • Resource Optimization • Make sure you use all available resources • Functional Analysis • Scrutinize your system for innovation • Trend Prediction • Learn from evolution’s genetic code • Creative Challenge • Sacrifice the sacred cows

23. Functional Analysis • Functional Analysis is a process for accessing and improving system value focusing on: • retaining or increasing all useful functions • mitigating or eliminating all harmful ones • improving inadequate functions • E.g. health care provider • Functional analysis upstream can be used in ideation efforts to identify opportunities for improving the value quotient of future solution

24. Functional Analysis - Background • Systems are composed of many interfacing elements; • changes in a subsystem can trigger set of chain reaction either positively or negatively • Good knowledge of how causal linkages affect each other is essential, otherwise, any changes made could lead to unintended consequences • Work and value of functional analysis revolves around an information-rich function diagram.

25. Advantages of Functional Analysis Diagram • A complete function diagram gives the following advantages • Easier to clarify functions of an existing or proposed system which feeds directly into solution ideation and development • Easier to figure out where available resources can be employed to improve a system or solve a problem using resource optimization • Easier to pinpoint and eliminate any physical or technical contradictions • Easier to flag any unneeded elements or functions through trimming thereby reducing cost and moving system closer to an ideal innovation

26. Steps involved in Functional Analysis • Scenario: Real-estate transaction system How can this become more value-oriented, increasing desired outcomes and/or decreasing undesired outcomes?

27. FA - Step 1: Gather Information and Define the Problem • Before creating function diagram and doing functional analysis, it is good to gather enough information about system and problem • Questions like these could help • What is the primary useful function (design intent) of the system/main job to be done • How do the elements of the system interact with each other? • What resources are available to solve the problem • What solutions have been attempted in the past and to what degree were they successful or not; if not, why not? • What constraints are on the system

28. FA - Step 2:Develop a functional model of the system • What is a function? • Function is defined as a process, activity or condition that operates between two variables, one is input variable, the other is output (dependent) variable • Value transformations stand between these two variables, because function creates a more valuable output with less input. Hence, there is value added • Some functions are desired, some undesired or costly/harmful • Some functions may be sufficient or insufficient in performing their duties

29. FA - Step 2: (Cont)Develop a functional model of the system • Goal is to depict pertinent functions in the system in a cause-and-effect style using Y=f(X) • Key agents in the system input (X) and output (Y), interact (f) to accomplish the system objectives • Identify the primary desired functions of system by asking the following questions which serves as a guide for linking the functions • Does it produce another function? If so, is the result desired/undesired/insufficient? • Is it produced by another function? If so, is the producing function’s impact desired, undesired or insufficient? • Show the scenario function diagram

30. Function Diagram for Real Estate Transaction

31. FA - Step 3: Perform the Function Analysis • Analyze the function diagram and modify to make the system more value-added oriented • Think about: • what desired function to increase • undesired function to remove • insufficient function to make sufficient • Using the trimming worksheet can help generate immediate ideas; populate it as shown in the figure based on

32. Functional Analysis and Trimming Worksheet (RETS)

33. FA - Step 3: (cont)Perform the Function Analysis • For all key functions, know what it is and identify both input and output • Indicate if it is desired/undesired/insufficient • Determine if it is necessary, if yes, ‘trim’ by asking two questions: • Could Y do the function by itself and how? • Could some other X or resource performs the function and how? • Trimming questions facilitate reducing complexity of the system through elimination of unnecessary elements • reduces cost and improves values • See function diagram of real-estate after trimming in next figure

34. Function diagram for Real Estate Transaction Innovation

35. Moment of truth related to Functional Analysis • Discussion time • Examples

36. Agenda • Managerial challenges & Objective • Resource Optimization • Make sure you use all available resources • Functional Analysis • Scrutinize your system for innovation • Trend Prediction • Learn from evolution’s genetic code • Creative Challenge • Sacrifice the sacred cows

37. Trend Prediction • Trend prediction is a powerful knowledge-based technique that extrapolates how current systems will evolve in the future; hence easier to plan for innovation • Example • many systems are now moving toward using machines rather than humans

38. Trend Prediction – Background - I • Work of Genrich Altshuller - empirical approaches • Work of Darell Mann - built on Genrich paradigm to refine innovation pattern discovery techniques • Basic idea: The evolution of innovation is not random but follows a certain pattern and stages that can be predicted • Basis for applying trend prediction is to understand concept of S-curves as they operate in time

39. Classic S curve

40. Trend Prediction - Background - II • Solution tends to taper off and decay in value with time • The retirement/decay inflection point is determined by market force generated by a newly developing system that is caused by breakthrough in technology or business model

41. Universal evolutionary trend • Product, services or system can be examined within the context of the 35 universal and generic evolutionary trends • It allows to compare an idea with established patterns • Avoids costly innovation missteps and provides superior customer experience • Determines when it is necessary to shift product strategy to a new technology platform • Understanding this provides unique insights on how to direct product/service development and R&D processes

42. 35 Technology Trends

43. Steps in Trend Prediction

44. Trend Prediction - Step 1 • Become familiar with technology trends • 35 technology trends allow thorough examination of products, services and solutions using the established evolutionary patterns • Each trend progresses along a scale of evolutionary potential, from less evolved state into a more evolved state and from macro to the nano-scale • e.g. early computer systems

45. Trend Prediction - Step 2 • Determine evolutionary potential • Use radar chart to set the stage for ideating better products and services • Radar chart shows a visual way of depicting the state of a system, product , services or solution relative to others. • Each radar chart in the next figure represents evolutionary movement along the S-curve at progressive stages starting from the center point • Darkly shaded area represents the evolutionary potential of a solution that extends the current competitive reality and more toward the ideal innovation

46. Radar Chart

47. Trend Prediction - Step 3 • Close evolutionary gaps • Using Ideation techniques make this step easier • Allows innovator to come up with best and tested idea before spending time and resources developing new solutions

48. Example • Innovative pizza delivery chain • To keep pizza hot during delivery • Task: find evolutionary trend that can solve this challenge • Decided on trends of surface segmentation & geometric evolution of linear constructions • Innovative Solar/Wind Energy power supply • Provide electricity and internet service in rural areas • What evolutionary trend can help?

49. Moment of truth related to Trend Prediction • Discussion time • Examples

50. Agenda • Managerial challenges & Objective • Resource Optimization • Make sure you use all available resources • Functional Analysis • Scrutinize your system for innovation • Trend Prediction • Learn from evolution’s genetic code • Creative Challenge • Sacrifice the sacred cows