Incremental Innovation versus Destructive Innovation

Design–>Measure–> Analyse–> Improve–> Control

•Define business problem

•Measure process (Y) performance

•Analyze the root causes (X’s) of the problem

•Improve, implement new solution

•Deliver Y performance over time

This system helps to REDUCE Costs, REDUCE ERRORS; FIRST TIME RIGHT METHOD

Innovation Pyramid

Incremental Innovation——>Micro level—> Continuous improvement at process level over cost, time and quality

Differential Innovation——-> Mini Level —> Continuous Product Development through unique USP, product features.

Breakthrough Innovation—-> Mega Level—> Business Process Innovation through a game changing patent-able concept, blue ocean strategy

Incremental innovation is promoted through the above mentioned DMAIC Approach done on a continuous basis.

More performance driven than innovation driven

For companies to focus on profitability and productivity, Six Sigma elements are viable. To sustain the profitability, focus shift has to happen in the area of growth and innovation through disruptive change

Even Companies like GE, Motorola (pioneers of Six Sigma) have resorted to the BLUE SKY APPROACH to innovate into a white space for sustained development.

GE: Imagination At Work

Co creating to save the world

Co-creation/ Crowd sourcing has become the buzz world in recent times. P&G’s Connect & Develop program which was initiated to reduce the company’s r&D expenditure. In this program, P&G outsources its ideas and solutions from scientists and ideators around the world. And P&G focuses on what it does best: to market and sell the ideas effectively?

Like the Android platform has been created on the sole model of crowd creation where people from all over the world come together to share and contribute.

Even Software Giant: Microsoft used the crowd sourcing model for getting inputs for the Windows 8.0 operating system. Google also works on the crowd sourcing model, by using the user search profile to continuously update its search engine efficiency and accountability.

As Thomas Friedman has quoted” the new era of globalization has arrived: Globalization 3.0 The Age of the Individuals ” This era will have the power of individuals reigning on….He continues to quote “End of information age leads to humanization”. This fact is evident by the rise of entrepreneurial talent from all corners of the world. The advent of Facebook, Twitter is the step in that direction.

Another example of co-creation is that of LEGO-MATTEL: where the company gets the users to develop products through usage and the best ideas are then productionized.

But co-creation should not be confused with Customization.

Customization is the creation of individual specific designs as per each one’s interest. It is the opposite of co-creation. Co Creation requires the individuals inputs’ to develop a product while customization is developing a product on the basis of individuals’ inputs.

There is a very fine line of difference

Developing a non standard car by CUSTOM WHEELS or DILIP CHABRIA Designs is Customization while

Using the customer inputs/needs to develop a low cost affordable car like TATA Nano is that of Co creation.

Such is the power of individuals to save the face of the planet!