(Research, Design, Production, and Marketing)

Subagyo http://subagyo.staff.ugm.ac.id

Managing Innovation

Iegmubetter

______________________________ Creative-Productive-Efficient

Overview

Iegmubetter

______________________________ Creative-Productive-Efficient

7 Habits of Highly Effective People

(by Stephen R. Covey) from http://www.chimaeraconsulting.com/covey.htm

Sharpen the saw- This powerful idea can really only be described by Covey's word-picture: Suppose you were to come upon someone in the woods working feverishly to saw down a tree. "What are you doing?" you ask. "Can't you see?" comes the impatient reply. "I'm sawing down this tree." "You look exhausted!" you exclaim. "How long have you been at it?" "Over five hours," he returns, "and I'm beat! This is hard work." "Well why don't you take a break for a few minutes and sharpen that saw?" you inquire. "I'm sure it would go a lot faster." "I don't have time to sharpen the saw," the man says emphatically. "I'm too busy sawing!
______________________________ Creative-Productive-Efficient

Iegmubetter

Why technology and innovation Management?

Iegmubetter

Technology and innovation are seen as important source of competitive advantage for individual firms and stimuli to economic growth

industrial R&D expenditures have been steadily increasing during the past decades 3-15% of sales is invested in R&D in technology intensive sectors (in some sectors even more) technology-intensive industries account for a lions share of sales growth
______________________________ Creative-Productive-Efficient

Innovation Dilemma
Most innovations fail. Companies that dont innovate die.

Iegmubetter

______________________________ Creative-Productive-Efficient

Indicators Used to Assess R&D Competence

Iegmubetter

INPUT R&D Expenditure R&D

Researchers Scientists Engineers
______________________________ Creative-Productive-Efficient

OUTPUT Papers

Patents

Scientific Knowledge, Technologies, and Products

Products PVC polymer sheet PVC molded parts

Iegmubetter

Technologies

Continuous sheet extrusion of thermoplastics

Formulation of PVC resins

Extrusion of thermoplastics

Engineering and scientific knowledge

Free radical chemistry Polymer rheology Vinylchloride chemistry

______________________________ Creative-Productive-Efficient

Technology

Iegmubetter

Infoware Technoware

______________________________ Creative-Productive-Efficient

Tacitness

Technology vs. Innovation Management

Iegmubetter

Innovation management Technology management

Basic research

Product commercialization

______________________________ Creative-Productive-Efficient

Established Product and Invading Product

Iegmubetter

Technical Performance

Improvement in established technology

Invading Product

Established product

t1

t2 t 3
Accumulated Investment, Time

______________________________ Creative-Productive-Efficient

10

R&D Strategy and Efficiency

Iegmubetter

Design easy-to-manufacture products

Reduce numbers of parts per unit. Reduce assembly time. Closely coordinate R&D and production activities. Innovations create competitive advantage through gains in process efficiencies.

Pioneer process innovations

______________________________ Creative-Productive-Efficient

11

Innovation Management Competencies

Iegmubetter

Manage innovation process

Product develop process, Interface with other functional activities e.g.

Marketing, Engineering, Production, and Executive management)

______________________________ Creative-Productive-Efficient

12

Innovation Management Competencies

Iegmubetter

Perform research

Contributing to identifying requirements for research, Undertaking surveys, Seeking new knowledge, Identify prospective commercial applications, and Identifying and communicating results of research

______________________________ Creative-Productive-Efficient

13

Innovation Management Competencies

Iegmubetter

Identify and seek allocation of resources for development of research outcomes

Contributing to defining ultimate user needs, Preparing proposals for seeking resources for development, and Preparing cost estimates for development, design, production or construction, and operation

______________________________ Creative-Productive-Efficient

14

Innovation Management Competencies

Iegmubetter

Perform market research on research outcomes

Gathering information and making recommendations for determining product pricing, Making recommendations regarding distribution of product, and for promoting the product

______________________________ Creative-Productive-Efficient

15

Innovation Management Competencies

Iegmubetter

Commercialise research outcomes

Contributing to economic evaluation of outcomes, Selecting likely mechanisms for market research, Preparing demonstration models for proving technical and commercial viability, and Developing pilot schemes

______________________________ Creative-Productive-Efficient

16

Innovation Management Competencies

Iegmubetter

Develop and manage intellectual property

Creation, Protection, Valuing, and Enhancing

______________________________ Creative-Productive-Efficient

17

Achieving Superior Innovation

Causes

Iegmubetter

of the high failure rate of innovation:

Uncertainty
Quantum innovation Incremental innovation

Poor commercialization Poor positioning strategy Technological myopia Slowness in marketing

______________________________ Creative-Productive-Efficient

18

Sequential and Partly Parallel Development Processes

Iegmubetter

______________________________ Creative-Productive-Efficient

19

The Development Funnel

Gate 1 Gate 2

Iegmubetter

______________________________ Creative-Productive-Efficient

20

Production and Efficiency

Iegmubetter

Economies of scale

Lower unit costs due to large scale production volumes. Cost reductions due to learning by doing. Systematic unit-cost reductions that are the result of accumulated output.
______________________________ Creative-Productive-Efficient

Learning effects

The experience curve

21

Production and Efficiency: Economies of Scale

Iegmubetter

A typical long-run unit-cost curve:

______________________________ Creative-Productive-Efficient

22

Production and Efficiency: Learning Effects

Economies of scale and learning effects:

Iegmubetter

______________________________ Creative-Productive-Efficient

23

Production and Efficiency: The Experience Curve

Iegmubetter

A typical experience curve:

______________________________ Creative-Productive-Efficient

24

Production and Efficiency: The Experience Curve

Iegmubetter

Unit production costs in an integrated steel mill and a minimill. Creative-Productive-Efficient

______________________________

25

Production and Efficiency: Manufacturing and Mass Customization

Iegmubetter

Flexible manufacturing technology (lean production)

Reduced setup times Increased machine utilization Improved quality control Lower inventory levels
Low cost and product customization

Mass customization

Flexible machine cells

Increased variety of operations

______________________________ Creative-Productive-Efficient

26

Production and Efficiency: Flexible Manufacturing

Iegmubetter

The tradeoff between costs and product variety Creative-Productive-Efficient

______________________________

27

Marketing and Efficiency

Iegmubetter

Marketing strategy:

Product design Advertising Promotion Pricing Distribution

______________________________ Creative-Productive-Efficient

28

The Relationship between Average Unit Costs and Customer Defection Rates
Iegmubetter

______________________________ Creative-Productive-Efficient

29

The Relationship Between Customer Loyalty and Profit per Customer

Iegmubetter

______________________________ Creative-Productive-Efficient

30

Infrastructure and Efficiency

Iegmubetter

Achieving superior efficiency requires a company-wide commitment built through top management leadership in:

Articulating the vision. Facilitating cross-functional cooperation.

______________________________ Creative-Productive-Efficient

31

Implementing TQM

Iegmubetter

Build organizational commitment to quality Focus on the customer Find ways to measure quality Set goals and create incentives Solicit input from employees Identify defects and trace them to source Improve supplier relations Design for ease of manufacture Break down barriers between functions
______________________________ Creative-Productive-Efficient

32

Question?

Iegmubetter

______________________________ Creative-Productive-Efficient

33