Presentation on theme: "Experimentation, Innovation and Technological Change Advancing Knowledge and the Knowledge Economy Washington, D.C. January 10, 2005 Stefan Thomke Harvard."— Presentation transcript:
Experimentation, Innovation and Technological Change Advancing Knowledge and the Knowledge Economy Washington, D.C. January 10, 2005 Stefan Thomke Harvard Business School
Research Example: Crash Simulation and Modeling in Automotive R&D 1982: Simulation model using CRASHMAS (3,000 finite elements). zRun time nearly three months. zNo real significance in design decisions. 2002: Simulation model of X5 using PAMCRASH (about 700,000 finite elements). zRun time less than 30 hours (at less than $10/hour). zDrives important design decisions. Source: BMW AG.
Unlocking the Potential: Principles for Managing Experimentation zOrganizing for Rapid Iteration. yOrganizing for rapid experimentation. yFail early and often but avoid “mistakes”. yManage projects as experiments. zExperimenting Early and Often. yAnticipate and exploit early information through front-loaded process. yExperiment frequently but do not overload your organization. yIntegrate new and traditional technologies to unlock performance. zShifting the Locus of Experimentation & Innovation (with Eric von Hippel, MIT).
Shifting Experimentation to Customers via Design Toolkits Traditional Model Solution Information (“What is possible?”) Need Information (“What do I want”) Supplier Customers New Model: Reverse Information Flow Solution Information (“What is possible?”) Need Information (“What do I want”) Supplier Customers “User Research” “Innovation Toolkits”
LSI Logic Founded in 1981: A Radical Approach Transforms Chip Design Focus Solution Information (“What is possible?”) Need Information (“What do I want”)
zCustomers design chips that are produced by LSI. zUser-friendly and integrated toolkit (using simulation and CAD technology). zTraditional suppliers were reluctant to make tools available to markets (intellectual property). zFujitsu even refused to share its tools with US division. Source: LSI Logic. Shifting Design Locus: LSI’s Development Toolkit
From Design Toolkits to New Markets: The LSI Model
An Industry Transformation: Creating Value by Shifting the Locus of Design
Learning by Experimentation: Testing of Innovative “What-If” Ideas Department ADepartment B Design (new concepts) Analyze Data (modify understanding) Build Model (prototypes) Run Test (collect data) Learn Iterations Interface(s)
Global Automotive Study at HBS: Actual vs. Expected Engineering Hours Source: Global Automotive Development Study at HBS.
Global Automotive Study at HBS: Actual vs. Expected Development Time Source: Global Automotive Development Study at HBS.
The Pattern is Repeated: The Rise of Field Programmable Technologies
Creating Value with Toolkits: Experiences at GE Plastics z30 years of in-house expertise on website (tools): $5 mill. cost. zPotential customers can solve their own design problems. yHelpline calls dropped >50%. y400 e-seminar for 8,000 potential customers per year. zAbout one million visitors p.a. yAutomatic screening and tracking of potential customers. yOne third of new customers. zSales threshold dropped by more than 60%. Source: GE Plastics.