1. Innovation & Creativity:
Selectively Drawing Upon Best Practices
for a unified, disciplined approach
September 2013
Joseph S. O’Hannigan
Director, Learning Solutions, 4:11 Business Associates
Senior Associate Director, Custom & International Programs,
Stayer Center for Executive Education, Mendoza College of Business, University of Notre Dame

2. Provide a powerful new framework
Objectives & Outcomes
Provide a powerful new framework
See the world differently
Lead innovation & change more effectively
Leverage your native ability to be creative
Integrate powerful tools & techniques
Create a dynamic new network
with other leaders
Accessing the ‘cast
Image
Volume
Two-way communication
Participating in the dialogue
Strategically placed queries
Verbal interruptions
Etiquette
Jumping in
Name; to whom directing question or comment

3. Creativity & Innovation: It is within YOU
Review & Look Ahead
Creativity & Innovation: It is within YOU
o What do we mean by “creativity?” By “innovation?”
o Why are some people and organizations so good at this?
o Exploding some myths about innovation
Do NOT focus on your products and services
o Really. Everyone focuses here. Don’t.
o Broaden your view to see all TEN areas to innovate
(Products & Services are just 2)
Some of the best: creating a unified, disciplined approach to innovation
o There are hundreds of tools and models and stories
Start with the Ten Types
Then on to effective approaches

4. Levels of Innovation
Common Business definitions
Extension of product/service
New model, finish, design
New to Company
New to World
Lean Design definitions
Extension
Incremental
Breakthrough
Disruptive
Continuous feedback loops
We will actively solicit your feedback, immediately after program pieces
Need your constructive feedback in order to practice continuous improvement for subsequent portions of this program, and for future deliveries
Proactively reach-out to Notre Dame Exec Ed administrators to voice questions and concerns
Exec Ed faculty are usually going to provide you with their contact info, and will generally encourage you to communicate with them outside of class
Leverage this!
Please copy Exec Ed, so we can gage volume of correspondence
Don’t abuse it, or they will charge for consulting =)
Recognize that major program elements (content and faculty and timing) are difficult, if not impossible to change during program delivery
Multiple types, even with small innovations, can produce Breakthrough and Disruptive results!

5. What areas might YOU Innovate?
© 2013 Doblin; Deloitte Consulting LLP

6. Focus on differentiating VALUE from WASTE
Recall: Lean Thinking
Focus on differentiating VALUE from WASTE
(Everyone is a “Waste Detective”)
“Doing More and More with Less and Less, While Coming Closer and Closer to Giving the Customer Exactly What is Wanted”
(Toyota Production System)

7. A Lean Innovation Approach
Using similar “Lean” thinking, we apply tools and concepts to the “fuzzy front end” of the Product Development Process to:
Identify & Differentiate Value from Waste
Give the customers exactly what they want
Reduce the time to market
Provide innovation focus

8. Apply Lean Innovation Tools
Apply Lean Innovation Tools *derived from 40 years of innovation tools and models *organized by Bart Huthwaite’s Institute for Lean Design
Bart Huthwaite, Lean Design Coach
Founder, Institute for Lean Design

9. The “Mountain Model” End In View – “What, Why & When”
Action Plan
Tactics
Metrics
Strategy
Hurdles
End In View
End In View – “What, Why & When”
Obstacles – Boundaries & Hurdles
Strategy – Ten Types
– Value Creation & Waste Prevention
Metrics – Measurement
System & Baselines
Tactics – Innovative Tools
Action Plan – 90-day “What, Who & When”
Special thanks to Bart Huthwaite, Sr. and the Institute for Lean Design

10. Begin with the End in View
Why?
First step in bridging the gap from where you are to where you want to go.
Makes sure everyone is climbing the same mountain.
Builds “common ground.”

11. No painter begins with an unlimited canvas…
Boundaries vs. Hurdles
No painter begins with an unlimited canvas…
…This allows us to identify the limits of the task at hand.
Boundaries are fixed and cannot be changed.
Hurdles are challenges that can be overcome if the correct resources are brought to bear

12. Deliver Optimum Value, Prevent Lifecycle Waste
-ilities, or Value Brothers
Wasteful -ings or Gremlins
The LEAN DESIGN EQUATION…
“Optimize Strategic -ilities, Minimize Evil -ings”

13. All Customers Crave Eight Primary Values…
Customer Primary Values
What It Means
Performability
Will the product perform functionally the way I expect?
Affordability
Will it be within my cost expectation?
Featureability
Will it have the features that enhance its functions to provide me added benefits?
Deliverability
Will it be ready for me when I want it?
Usability
Can I quickly and easily install it, learn how to use it?
Maintainability
How easy will it be for me to keep in service?
Durability
Is it robust enough to withstand the abuse myself, and others give it?
Imageability
Will it convey the image of quality and prestige I desire?

14. Eight Primary Values Every Company Seeks…
Company Value
What It Means
Profitability
Will the product deliver profits quickly & at a level acceptable to our company?
Investability
Will it require investment in people & equipment beyond expectations?
Riskability
Will it expose our company, either today or tomorrow, to excessive risk?
Produceability
Do we have, or can we acquire, the skills, experience, and equipment to build the product?
Marketability
Will we be able to sell it easily using our existing distribution channels?
Growthability
Does the market for the product offer significant growth and/or market share expansion?
Leveragability
Will it enable us to enter new growth markets?
Respectability
Will it convey the image of quality and prestige we desire?

15. Measuring the -ilities and -ings :
Market Opportunities
What Your Products/Services Lack
Opportunities to Reduce Cost
Where You Differentiate
Performability
Affordability
Deliverability
Useabiilty
Durability
Featureability
Maintainability
Imageability

16. Scoring the -Ilities
Rating
-Ility Value Level
9-10
Extremely high value. Sets the standard for the industry
7-8
High value. Superior to that of most competitors
5-6
Acceptable. Meets expectations most of the time
3-4
Low value. Frequently does not meet expectations
1-2
Extremely low value. Well below that of all competitors

17. Identify Opportunities

18. Maintain Differentiation…
Performability 10 9 8
Imageability 7
Affordability 6 5 4 3 2 1
Durability
Featurability
Maintainability
Deliverability
Useability
Product 1
Product 2

19. Customizing the –ilities Makes Strategy a Part of the Language
Company #1
Imageability
Knowledgeability
Dell-ability
Innovatability
Credibility
Breadth-ability
Sensible Indulgence
Easy Integrated Solution
Company #2
Install-ability
McDonald’s-ability
Flexibility
Trust-ability
Target-ability
Dependability

20. Products & Services are becoming obsolete the minute they are introduced…
The Three Sharks of
Marketplace
Technology
Competition
are eating the value in our products, services & organizations…

21. Three Sharks Exercise to “See the Future”
Step - Now
(months/years )
Stretch - Tomorrow
( months/years )
Leap - Future
(months /years )
Marketplace
Technology
Competition
Does your design strategy address all the Eight Primary Values? Are you delivering too much? Too little?
What are the top 5-7 changes you anticipate in your customer’s Eight Primary Values?
Are there any “disruptive” marketplace changes on the horizon?
Does your design take advantage of all existing technology? Are you pushing the technology too far?
What new technologies do you anticipate emerging?
Do you have the capability to develop these internally?
Are there any “disruptive” technologies emerging in the distant future that could obsolete your entire business?
Are there any new competitors who may try to enter your market space by offering a “simplified” solution compared to yours?
Would a merger of competitors endanger your market position?
Are overseas producers a threat?
How competitive are you today? What are your differentiators?

22. 7 Design Flaws that Add Cost & Reduce Reliability
Seven Evils
Description
Complexity
Many different processes required to deliver the product’s value both on factory floor and for the customer’s use.
Precision
Solution requiring precision at the outer limits of manufacturer’s ability to produce the product or customer’s ability to use it.
Variability
Specification of difficult to control processes on the factory floor or in the customer’s domain
Sensitivity
Solution easily flawed during factory operations or in the customer’s domain
Immaturity
Use of solution not previously validated for a specific application
Danger
Solutions with potential dangerous impact on humans or environment
High Skill
Solutions requiring high degree of training and experience

23. Scoring the -ings Rating -Ing Waste Level 9-10 7-8 5-6 3-4 1-2
Intolerable. Highest waste in the industry.
7-8
Excessive. Worse than most competitors.
5-6
Tolerable. High, but controllable.
3-4
Low. Minimum impact on cost & quality.
1-2
Extremely low. Well below that of all competitors

24. Measure the Evil –ings like the -ilities

25. Using the Cube to Brainstorm
Company Ilities
Profitability
Investability
Riskability
Produceability
Marketability
Growthability
Leveragability
Respectability
Customer Ilities
- Performability
- Affordability
- Featureability
- Deliverability
- Usability
- Maintainability
- Durability
- Imageability
Ilities
From “The Lean Design Solution: A Practical Guide to Streamlining Product Design and Development”
Copyright by Bart Huthwaite, Sr. and the Institute of Lean Design 2005
Lean Innovation Tactics
Innovation Levels
Opportunity Targets
Lifecycle Domains
- Sacrifice
- Shrink
- Switch
- Divide
- Unify
- Recycle
- Off-the-Shelf
- Plus Up
- Fix Up
- Incremental
- Extension
- Breakthrough
- Disruptive
- Functions
- Parts
- Materials
- Processes
- People
- Customer Use
- Design
- Supply Chain
- Operations
Evil Ings
- Complex
- Precise
- Variable
- Sensitive
- Immature
- Dangerous
- High Skill
The Three Sharks
Marketplace
Technology
Competition
Optimize Strategic
Ilities,
Minimize Evil Ings

26. Using the Cube to Brainstorm

27. For Any/ All of the Ten Areas to Innovate,
© 2013 Doblin; Deloitte Consulting LLP

28. There Are Generally Five “Opportunity Targets”
Functions
Materials
Parts
Processes
People

29. Apply Lean Design Tactics to the Targets
Sacrifice?
Shrink?
Plus Up?
Functions
Switch?
Parts
People
Off-the-Shelf?
Processes
Divide?
Materials
Re-Cycle?
Unify?

30. Integrated new functions
Parts
Materials
Processes
People
Sacrifice Solutions
Eliminate finish
Eliminate metal parts in waterway
Eliminate plating
Eliminate Brazing,bright dip, plating, & buffing
Outsource design or manufacture
Shrinkage Solutions
Reduce spout travel
Reduce # of nuts
Wall thicknesses
Tube length
Assembly parts using tubes
Reduce assembly complexity
Switch Solutions
Switch sprayer w/ other side functions
Switch diverter & side spray with flexible spout
Non-metallic waterways
Threaded instead of brazed
Substitute Injection Molding for machining brazing, buffing & coating
Cross-train employees
Division Solutions
Sell side spray separately
Separate faucet from baseplate
Separate veggie sprayer from faucet
Separate water contact & structural materials
Sell side spray & faucet separately
Dedicate team project time
Style development by channel
Unity Solutions
One hole and 8” spread
Combine valve body & cartridge
One piece body
One piece valve
Combine models into one
One piece flow for machining
Platform partnerships
Re-Cycle Solutions
Directional sprayer
2-function sprayer
Use Chrome appearance and PEX supplies
Diamond valve
Use stainless for plated look
Machine plastic rod with screw machines
Capture peoples’ ideas
Partner with others
Off-The-Shelf
Solutions
Flow aerator
Quick connects
Purchase existing vendor model
Use sister product components
Purchase spout & cartridge
Outsource design, market research, etc.
Plus Up Solutions
Integrated new functions
Top-down mounting
New valve cartridge
Extend spout length
New handles
Robotic buffing
Induction brazing
Training & Skills

31. Next Steps…
Classify new ideas from the 8x5 Matrix into “Step, Stretch, & Leap” timeframes
Rank projects within the four levels of innovation by potential marketplace acceptance
New to world? New to Organization? Incremental?
Use marketplace feedback & internal team rankings

32. Developing the Product Road Map
Conduct Gap Analysis
Look for holes in the Road Map
Conduct more focused brainstorming
to address these
Identify “stretch” & “leap” concepts that require immediate resources
The result can be visual…

33. The Product Road Map

34. Worksheets & Application Tips

35. Three Sharks Exercise Marketplace Technology Competition Step - Now
(months/years )
Stretch - Tomorrow
( months/years )
Leap - Future
(months /years )
Marketplace
Technology
Competition
Does your design strategy address all the Eight Primary Values? Are you delivering too much? Too little?
What are the top 5-7 changes you anticipate in your customer’s Eight Primary Values?
Are there any “disruptive” marketplace changes on the horizon?
Does your design take advantage of all existing technology? Are you pushing the technology too far?
What new technologies do you anticipate emerging?
Do you have the capability to develop these internally?
Are there any “disruptive” technologies emerging in the distant future that could obsolete your entire business?
Are there any new competitors who may try to enter your market space by offering a “simplified” solution compared to yours?
Would a merger of competitors endanger your market position?
Are overseas producers a threat?
How competitive are you today? What are your differentiators?

36. Marketplace Technology Competition Step - Now ( ) Stretch - Tomorrow
( )
Stretch - Tomorrow
Leap - Future
( )
Marketplace
Technology
Competition

37. Setting Our Objectives…
What we are trying to accomplish
Why we want to accomplish it
When (by what date) we have to implement the plan
“If we don’t know where we’re going any road will take us there…”

38. Begin with the End in View
Why?
First step in bridging the gap from where you are to where you want to go.
Makes sure everyone is climbing the same mountain.
Builds “common ground”.

39. What?
Why?
When?

40. Boundaries & Hurdles No painter begins with an unlimited canvas…
This allows us to identify the limits of the task at hand.
Boundaries are fixed and cannot be changed.
Hurdles are challenges that can be overcome if the correct resources are brought to bear

41. Boundaries
Hurdles

42. All Customers Crave Eight Primary Values…
Customer Primary Values
What It Means
Performability
Will the product perform functionally the way I expect?
Affordability
Will it be within my cost expectation?
Featureability
Will it have the features that enhance its functions to provide me added benefits?
Deliverability
Will it be ready for me when I want it?
Usability
Can I quickly and easily install it, learn how to use it?
Maintainability
How easy will it be for me to keep in service?
Durability
Is it robust enough to withstand the abuse myself, and others give it?
Imageability
Will it convey the image of quality and prestige I desire?

43. Performability Affordability Featureability Deliverability Usability
Customer Domain
Primary Values
Rating
(1-10)
Reasons Why
Performability
Affordability
Featureability
Deliverability
Usability
Maintainability
Durability
Imageability

44. Scoring the -ilities Rating -Ility Value Level 9-10
Extremely high value. Sets the standard for the industry
7-8
High value. Superior to that of most competitors
5-6
Acceptable. Meets expectations most of the time
3-4
Low value. Frequently does not meet expectations
1-2
Extremely low value. Well below that of all competitors

45. …Eight Primary Values Every Company Seeks…
Company Value
What It Means
Profitability
Will the product deliver profits quickly & at a level acceptable to our company?
Investability
Will it require investment in people & equipment beyond expectations?
Riskability
Will the it expose our company, either today or tomorrow, to excessive risk?
Produceability
Do we have, or can we acquire, the skills, experience, and equipment to build the product?
Marketability
Will we be able to sell it easily using our existing distribution channels?
Growthability
Does the market for the product offer significant growth and/or market share expansion?
Leveragability
Will it enable us to enter new growth markets?
Respectability
Will it convey the image of quality and prestige we desire?

46. Profitability Investability Riskability Produceability Marketability
Customer Domain
Primary Values
Rating
(1-10)
Reasons Why
Profitability
Investability
Riskability
Produceability
Marketability
Growthability
Leverageability
Respectability

47. Scoring the -ilities Rating -Ility Value Level 9-10
Extremely high value. Sets the standard for the industry
7-8
High value. Superior to that of most competitors
5-6
Acceptable. Meets expectations most of the time
3-4
Low value. Frequently does not meet expectations
1-2
Extremely low value. Well below that of all competitors

48. Current State Mapping…

49. Performability Affordability Featureability Deliverability Usability
Customer Domain
Primary Values
Rating
(1-10)
Reasons Why
Performability
Affordability
Featureability
Deliverability
Usability
Maintainability
Durability
Imageability

50. Scoring the -ilities Rating -Ility Value Level 9-10
Extremely high value. Sets the standard for the industry
7-8
High value. Superior to that of most competitors
5-6
Acceptable. Meets expectations most of the time
3-4
Low value. Frequently does not meet expectations
1-2
Extremely low value. Well below that of all competitors

51. Current State Mapping…

52. Does the Consumer Agree?
Up until now, we have used our INTERNAL assessments of the company and competition to generate our scores.
We must market-test these opinions to see if we are connected to reality.
Market Surveys
Talking with the Customer and the Consumer
“Communities of Interest”

53. Scoring the Evil –Ings…
You don’t need to be in the design field to address the evil –Ings.
Use the evil –Ings scoring system to let your product designers know where there are opportunities to fix current problems
The evil –Ings spider chart becomes a way to communicate issues between manufacturing and design

54. 7 Design Flaws that Add Cost, Reduce Reliability
Seven Evils
Description
Complexity
Many different processes required to deliver the product’s value both on factory floor and for the customer’s use.
Precision
Solution requiring precision at the outer limits of manufacturer’s ability to produce the product or customer’s ability to use it.
Variability
Specification of difficult to control processes on the factory floor or in the customer’s domain
Sensitivity
Solution easily flawed during factory operations or in the customer’s domain
Immaturity
Use of solution not previously validated for a specific application
Danger
Solutions with potential dangerous impact on humans or environment
High Skill
Solutions requiring high degree of training and experience

55. Scoring the -Ings Rating -Ing Waste Level 9-10 7-8 5-6 3-4 1-2
Intolerable. Highest waste in the industry.
7-8
Excessive. Worse than most competitors.
5-6
Tolerable. High, but controllable.
3-4
Low. Minimum impact on cost & quality.
1-2
Extremely low. Well below that of all competitors

56. The Seven Evils Why Rating Complexity Precision Variability
Sensitivity
Immaturity
Danger
High Skill

58. Future State Mapping…
Based on the information we now have, including the end-in-view, boundaries & hurdles, and three sharks, what does our future state look like? In your groups, come to consensus about what one or two Customer –ilities you want to move and what single –ing you want to address.

59. Future State Mapping…

60. Future State Mapping

61. Targets and Tactics…
These two or three items are now the Strategy input to our focused brainstorming
Ask yourself – “What can I do to improve my –ility (or –ing) score from X to Y?”
Use the 8 x 5 Matrix to drive your brainstorming

62. Using the Cube to Brainstorm
Company Ilities
Profitability
Investability
Riskability
Produceability
Marketability
Growthability
Leveragability
Respectability
Customer Ilities
- Performability
- Affordability
- Featureability
- Deliverability
- Usability
- Maintainability
- Durability
- Imageability
Ilities
From “The Lean Design Solution: A Practical Guide to Streamlining Product Design and Development”
Copyright by Bart Huthwaite, Sr. and the Institute of Lean Design 2005
Lean Innovation Tactics
Innovation Levels
Opportunity Targets
Lifecycle Domains
- Sacrifice
- Shrink
- Switch
- Divide
- Unify
- Recycle
- Off-the-Shelf
- Plus Up
- Fix Up
- Incremental
- Extension
- Breakthrough
- Disruptive
- Functions
- Parts
- Materials
- Processes
- People
- Customer Use
- Design
- Supply Chain
- Operations
Evil Ings
- Complex
- Precise
- Variable
- Sensitive
- Immature
- Dangerous
- High Skill
The Three Sharks
Marketplace
Technology
Competition
Optimize Strategic
Ilities,
Minimize Evil Ings

63. Functions Parts Materials Processes People
Sacrifice Solutions
Shrinkage Solutions
Switch Solutions
Division Solutions
Unity Solutions
Re-Cycle Solutions
Off-The-Shelf
Solutions
Plus Up Solutions

64. Next Steps…
Classify new ideas from the 8x5 Matrix into “Step, Stretch, & Leap” timeframes
Rank projects within the four levels of innovation by potential marketplace acceptance
New to world? New to organization? Incremental?
Use marketplace feedback & internal team rankings

66. johannig@nd.edu What Do I Do Next? Market test your concepts
Add your current design projects to the map
Target “Step”, “Stretch” & “Leap” projects for concurrent development
Assess Resource Availability

67. Questions & Answers

68. On the way of wisdom I direct you, I lead you on straight paths.
4:11 Business Associates
On the way of wisdom I direct you,
I lead you on straight paths.
When you walk your step will not be impeded,
And should you run, you will not stumble.
Hold fast to instruction, never let it go;
Keep it, for it is your life.
Proverbs 4: