© Smart Hammer Innovation

Mark AdkinsFebruary 23rd, 2011

Linking Lean with Innovation™(and more)

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Today’s Focus & Definition

ProductDevelopment

Diversification

MarketPenetration

Market Development

Current Market

New Product

Current Product

New Market

ProductDevelopment

Market Development

Ansoff Product Market Matrix

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Evolution of the Concept

• A 20 Year Journey

• Both as Practitioner and Consultant

• Dozens of Industrial B2B Companies

• Dozens of Thought Leaders and Collaborators

1. 1993 Stage Gate

2. 1998 Wolfpack

3. 2003 Open Innovation

4. 2007 Lean Thinking

5. 2010 Design Thinking

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1990 First Product Launch

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1993 Stage Gate:Phases and Gates Are the Dominant Design

1 2 4 53

Opportunity Identification

Concept Generation

Concept Evaluation

Development Launch

Business Case

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1993 Stage Gate:Phases and Gates Are the Dominant Design

The “Bible”

Process - Not a Collection of Projects

Discovery – Develop – Deliver

Risk Management

Portfolio Management

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1998 WolfpackCincinnati Machine Wins Outstanding Innovator Award

Wolfpack = “Stage Gate on Steroids”

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1998 WolfpackCincinnati Machine Wins Outstanding Innovator Award

Criteria for receiving the PDMA’s OCI Award:

1. Sustained success in the introduction of new products to the market

2. Significant company growth driven by new product success

3. A defined new product development process accessible to others

4. Unique and innovative characteristics of that organization’s process

Multiple Projects

Integral Part of the Operation

Metrics Based System

Process Tools

Portfolio Management

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2003 Open InnovationThe Product Development Pipeline Becomes Permeable

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2003 Open InnovationThe Product Development Pipeline Becomes Permeable

• What is New?

Outsourced R&D, technology collaboratives and licensing

have been around for years.

1. Prominent “search” practitioners

2. Improved product innovation models

3. Internet based networks –technical and market solutions

• More Ways to Get the Great Idea

• More Ways to Compress Time to Market

• More Efficient Cost Structure

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2003 Lean ThinkingHarley Davidson Defines Swirls & Bins

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2007 Lean ThinkingKnowledge Systems are Fundamental

“Stages & Gates are Evil”

Phases Become Learning Cycles

Set Based Design

Advance Knowledge, Don’t Just Test

Gates Become Pull Events

Built Upon integration Points

The Value of Visual Management

Value Stream Mapping and Oobeya

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2007 Lean ThinkingOhio Funds the Partnership for Lean Innovation

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2010 Design ThinkingBrand & Design Join Engineering & Marketing

BRAND STRATEGY

BRAND STRATEGY

PORTFOLIOPORTFOLIO RESOURCESRESOURCES

BUSINESS LEVEL

Brand – Portfolio – Resources

The Iron Triangle at the Business Level

Risk – Cost – Value

The Iron Triangle at the Project Level

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Brand & Design Ignored by Industrial B2B’s– All Acknowledge a Company Culture But Brand

is Just a Brochure

Martin’s Knowledge Funnel– Mystery/Heuristic/Algorithm = Discover/Develop/Deliver

– Domination of Analytics over Intuitive = Weak Discovery

– Validity and Reliability Must Co-exist = Lean Innovation

You Can’t Consistently Develop Great Products

Without Design & Brand

2010 Design ThinkingThe Knowledge Funnel Meets the NPD Pipeline

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BRAND STRATEGY

BRAND STRATEGY

PORTFOLIOPORTFOLIO RESOURCESRESOURCES

IDEA BUSINESS CASE LAUNCH

DISCOVERYDISCOVERY DEVELOPMENTDEVELOPMENTPROJECTLEVEL

BUSINESSLEVEL

2011 Linking Lean with Innovation™

© Smart Hammer Innovation

Poll Questions

Analyze a product development success.

1. How did it succeed?

2. Why did it succeed?

3. What was the economic impact on your

company?

4. What was the non-economic impact on

your company?