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Idea Management: Master key to innovate and capture profit.

4/7/2021

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​Idea Management is an important and integral part of Innovation Management. There are two schools of thought about idea generation and its management. First, out-of-the box thinking and second, inside-the-box thinking.  
Innovation management master key to innovate and capture profits
Innovation Management (www.DrShrutiBhat.com)
Out-of-the-box thinking as the name suggests is seamless creativity. While inside-the-box thinking means there is a boundary within which ideas are generated and managed. Wider the boundary, deeper gets the creativity.

And if more ideas have to grow from being on paper to becoming a commercialized product, inside-the-box thinking is the way to go.

​Because, for a business there is a budget to follow, expenses to limit, ROI to gain and investors to take care of. Every penny spent on innovation is accounted for i.e. where profits aren’t earned, the R&D expenditure gets written-off. And the objective is always to get the most out of the buck.

Inside-the-box thinking essentially means, innovation is done with a target product profile in mind. The aim is to generate large number of ideas to maximize number of potential ideas-to-product pathways. The picture above depicts innovation management via inside-the-box idea generation.
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Once an idea qualifies for becoming a new product candidate, it must successfully pass through the various stages of product development thru obtaining market approval and subsequent launch, to find its crown in the marketplace.
As you will note from the above picture, not all ideas gain ‘new product candidate’ status. So, what happens to the ideas, that do not get selected. Do they get dumped permanently? The answer is No.
​
Let's analyze the ideas further- Usually, ideas get rejected because of three main reasons-

a. Technically idea commercialization is not possible.
b. Profit wise the ideas are not feasible.
c. The company is not keen to go for such a new product at this point of time.
​
​Hence, let's first segregate the rejected ideas into three buckets as per the above classification and then review them one-by-one.

A. ​Technically idea commercialization is not possible.

​Ideas that are not technically feasible now can become great candidates later.

​A classic example of this is Sildenafil citrate tablet. This drug candidate was first evaluated as a treatment for chest-pain. Later, the company found an alternate use of the drug candidate and channeled this molecule thru the development pipeline to launch as Viagra- rest is history!

B. ​Profit wise the ideas are not feasible

​The second lot comprises of those ideas that seem not feasible in terms of profitability. Meaning technically, they may be good, but cannot be commercialized because of high cost.

​One of the classic example for this is- the Microwave oven.

Microwave oven was first invented in the 1940s, around world war II era. The first commercialized microwave oven was huge, weighing 750 pounds and costed $2000 USD. Obviously, it did not sell well.

The company worked on the technical aspects and the first domestic microwave was introduced in 1955. And that did not sell too. After many design changes, microwave oven gained access to our homes in 1967 and by 1975, they were in full demand.

A point to note here is that microwave oven invention was both accidental and EVOP (Evolutionary Operation) product development. Also, note the development timeline, from 1940 to 1955 to 1967 to 1975. i.e. 27 to 35 years from being an 'idea' to 'profitable' commercialization!

It is well-known that EVOP drains money. To avoid such bleed, concept of Innovation Management took shape. I shall be writing more about innovation management in a separate blogpost. For now let us visit the third lot of rejected ideas.

C. ​Company is not keen to go for such a new product at this point of time:

Idea vault management
Idea Vault Management (www.DrShrutiBhat.com)
Now, let us consider the third lot of ideas- those ideas which the company is not keen to go for at this point of time.

​
Such ideas must be worked upon in the lab to develop a small prototype. While prototyping, ensure that you build-in anti-counterfeit measures in your product. Then file a provisional patent application to stake claim to your idea and simultaneously block competition.
​
After filing a provisional patent application, you have 12 months to file final PCT patent specification. Additionally, you get thirty months (from date of priority filing) to enter national phase i.e. do national phase patent applications in the PCT countries of your choice.

Hence, the company gets close to 30 months to scout for buyers who would be interested to license your product. Since a prototype as well as the patent is available (for the invention), you stand to gain better licensing fees at the negotiation table.

Also, resources need not be pumped-in immediately, as product development, process validation, scale-up and other related activities can take place over 12 to 30 months timeframe. This has dual advantages- first, R&D budget can be better managed, and second, R&D infrastructure can be better utilized.

Moreover, provisional and/or final PCT patents being intellectual property can be mortgaged on a short-term basis to banks or other financial institutions, to secure funds which in turn may be pumped-in to conduct research work or use it for other areas of the business.
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The philosophy of Innovation Management is to ensure, every penny spent on R&D must bring-in good return on investment (ROI) both in terms of profits and company reputation.
The goal of Innovation Management is to turn ideas into profit, block competition and stop counterfeits.
​
There are multiple pathways for conducting idea and innovation management successfully. The content presented above is one such pathway.

Also, the choice of idea and innovation management pathways depend on various factors such as- industry vertical, product mix, operating markets, corporate goals and more. Therefore, selecting the best pathway which will yield faster ROI with a first-mover advantage is crucial. 

Your choice of idea and innovation management pathway and its flawless execution will determine your business's very existence, growth and resilience.

An important question to introspect is- Are you building an idea and innovation management strategy which is the best for your organization?

​To know more about how idea-innovation management can help your company expand its product offerings, increase profit and earnings per share for investors, reach out to Shruti.
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Related Reading:

  • ​Disaggregate between being lucky and being good in business: Portfolio Management and Continuous Improvement are the two winning tools in the new normal …
  • 8 Steps to becoming a Customer- centric organization
  • Dos and Don’ts Of Rapid Innovation

#innovationmanagement #patent #ideamanagement #stopcounterfeits  #blockcompetition
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New Age Product Development to Reduce Supply Chain Costs

2/26/2021

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In this blogpost I shall touch upon R&D process improvement in order to reduce procurement, supply chain logistics cost. If this intrigues you, read on …

Reducing procurement, supply chain logistics is an omnipresent to-do issue for business leaders, pandemic or otherwise, but more so in today’s times because of transport disruptions due to the pandemic.

I would say there are broadly two ways to handle any issue- proactive and reactive. Improving R&D processes via Design Thinking & Kaizen is a proven proactive way of making sure that external environment will have minimal to negligible effect on your supply chain function. Further, this is true for all companies in the manufacturing as well as the service sectors.

So, I come to my favorite questions-
  • Did you know that improving your R&D business processes can have immediate direct savings of 35 to 40% of your sourcing and supply chain costs?
  • Did you know that R&D process improvement can ensure that your supply chain is productive and functions at an all -time-good level regardless of disturbances in the external environment?

Want to know more? Check out the video below-
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Related reading:

  • How to cut costs strategically using KaizenCulture of Kaizen
  • How does Kaizen Enhances Employee Engagement?
  • Quality-by-Design (QbD) approach means Design for Manufacturing (DFM)​​
Keywords and Tags:
#SupplyChainProcessImprovement #QbD #QualityByDesign #Kaizen #Agile #DesignSpace #WideDesignSpace #Pandemic #SupplyChainDisruption  #ProductDevelopment  #ProcessImprovement 
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Convert business deficiency to efficiency with Spaghetti Models

2/16/2021

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convert business deficiency to efficiency with spaghetti models
Wait-times, hold-ups, bottlenecks, slowdowns, delays are common deficiencies at workplace. Want to get rid of them? Use Spaghetti models.

Spaghetti model is a method of viewing data to visualize processes in order to identify redundancies in workflows and increase business efficiency.
​
Spaghetti models are also known as Spaghetti diagram, Spaghetti charts or Spaghetti plots.

How do Spaghetti model work?

Spaghetti model maps the total path of a process and tracks movement of product, paper and people. This helps to identify areas of ‘waste’ and opportunities of process improvement. When an underlying process get streamlined, business efficiency increases immediately.

Since delays and deferral type of deficiencies are omnipresent, Spaghetti model may be used to improve all types of workplaces be it a manufacturing set-up, service sector, government office, educational institute, non-profit organization etc.
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However, Spaghetti models are popularly used on production shop floors of manufacturing companies, healthcare, aviation, weather bureaus, meteorology, pharmaceuticals, supply chain logistic companies, retail, hospitality, financial institutions etc.

Examples of Spaghetti model in various sectors:

There are numerous examples of Spaghetti model implementations in manufacturing and service organizations. I have enumerated only few examples here.

Manufacturing sector-
In manufacturing sector, Spaghetti models are used to track routing of man- material movement at the shop floor. Say for example- calculating distance travelled by a forklift with the objective of improving speed with which materials are transported. 

Spaghetti models can be used in all types of manufacturing companies regardless of its size, vertical or product range. 
Process improvements resulting after Spaghetti model implementation in the manufacturing sector have resulted in a decrease of 30 to 35% overhead cost. Also, as much as 85% set-up time has been reduced.
Further, Spaghetti models are extremely beneficial in improving R&D efficiency too. For example- Spaghetti model plays a pivotal role in shortening drug product development timelines and bringing new products fast- to- market. 

Spaghetti models used in drug discovery and drug product development research speed-up phases 1,2 and 3 of new product development pathway. They also play a pivotal role in identifying drug interactions. Identification of differences in plasma-half lives of drugs in different population groups in a clinical trial can effectively be done using Spaghetti models.
 
Services sector-
In services sector and office areas, the administration departments benefit the most by implementing Spaghetti models.
Productivity rise of 35 to 40% has been noted in various service-based companies after Spaghetti model led process improvements.
In financial institutions, Spaghetti model can be used to improve customer service by decreasing wait-times to approve a mortgage loan.

Restaurant kitchen use Spaghetti models to improve chef’s efficiency to deliver on orders taken.

Package delivery and logistics companies use Spaghetti models to improve on-time delivery of letters and parcels.

Weather bureaus use Spaghetti models to study positions and intensities of pressure systems to forecast rainfall or snowstorm warnings.

Also, Spaghetti models are useful to study fish, animal and bird distribution and migration patterns.

Traditionally Spaghetti models are drawn using color pens on paper. However, now they can be done via digital means too. 

​Further, Spaghetti models are an integral component of business transformation and continuous improvement campaigns done via process stapling and Gemba walks. 
Because of its versatility of use and fast returns on implementation, Spaghetti model is amongst the top 25 important continuous improvement tools.

5 Signs your organizations must use Spaghetti model-

Here are five signs that indicate your organization needs to use Spaghetti model-
  1. Shorten scale-up time or the time taken to transfer technology know-how from R&D bench to commercial manufacturing.
  2. Reduce backorders.
  3. Planning a new layout or renovating your manufacturing facility or office premises.
  4. Improve your supply chain processes.
  5. Increase your business’s operating efficiency.

​The success of a Spaghetti model led process improvement is confirmed when the new process does not look like ‘spaghetti’ and the total distance of process path as well as operational time are reduced drastically.

Hence, make sure to include Spaghetti model at the time of strategy planning to achieve assured returns on your business transformation or continuous improvement projects. 
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Related reading:

  • Streamline processes and workflows with Gemba Walk
  • ​How to cut costs strategically using Kaizen
  • ​​Continuous Improvement- 30 Proven Tools to Drive Profitability, Quality and Operational Effectiveness in Manufacturing & Service Industry by Dr. Shruti Bhat
#spaghettimodel #spaghettidiagram #spaghettichart #spaghettiplot #continuousimprovement #businessturnaroud
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Dos and Don’ts of Gemba Walk

2/3/2021

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Gemba Walk is a process of making personal observation of jobs and workflows where it happens (i.e. Gemba) with those who actually do it as against discussing about the solving the problem in a meeting room.
​
However, Gemba Walk must be done correctly for it to give desired results. The video below presents important Dos and Don’ts of Gemba Walk. Watch on …
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#GembaKaizen  #GembaWallk  #ContinuousImprovement #BusinessProcessImprovement   #ProcessMethodology
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Accelerate business growth with Agile Part 2: Top 10 Frequently Asked Questions on Agile.

2/1/2021

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In the first part of this article, I touched upon what is Agile methodology, which industry sectors use it and some dos and don’ts for Agile.
Accelerate business growth with Agile part 2_ top 10 frequently asked questions on Agile
​In this part I shall discuss top 10 frequently asked questions around Agile. By the way, these questions have been taken from my blog reader’s feedback which I regularly receive as direct messages or queries. If you too have questions, please hit the ‘Get-in-touch’ button at the bottom of this blogpost and send me your thoughts …
 
So, let’s begin with top 10 frequently asked questions on Agile business improvement methodology.

FAQ 1: Is Agile good for Startups?

​Agile business process improvement methodology is a proven concept to transform or turnaround businesses. Its ability to unlock value has been pressure-tested in different industry sectors belonging to manufacturing as well as service-based setups. Agile is extensively beneficial to startups. A startup could be a new company or a new function or department within an existing company.

FAQ 2: Is Agile only for IT department?

​Agile concept emphasizes team collaboration and flexible reassessment of plans based on customer feedback. Agile can be applied to all departments. Agile was first used in the software development and is popular within the IT sector. But since Agile offers fast return on investment, it is gaining popularity in other sectors as well.

FAQ 3: Can we introduce Agile in our organization?

​The correct answer to that question is- May be. Because, although Agile can be applied in any industry, it must not be applied blindly. Agile must be applied only after a due diligence around how it would be applied, what benefits it shall bring-in for the organization etc is done. Further, there are several Agile methodologies. One must take cognizance of this and choose the Agile methodology most suitable for your workplace.

FAQ 4: Is there a difference between Agile and other process improvement techniques such as Lean, ISO, Kaizen etc.? 

​There are several differences. But the most striking difference is that Agile cannot/ must not be applied in the same way across the entire organization. Different sections of an organization benefit from Agile in varying ways. The benefits can be optimized or increased based on the results of blueprinting i.e. identifying the value streams and investigating how each section of the value stream can benefit from Agile, provides valuable input in Agile- based business transformation.

FAQ 5: Are Agile and Scrum same?

​Agile is not same as Scrum. Agile is a wide concept, Scrum is a type of Agile method.  Scrum is one of the many dynamic Agile methods and emphasizes team collaboration and flexible reassessment of plans for bringing about business transformation.

FAQ 6:  Agile scale-up is costly and requires large teams.

​Scaling-up Agile has similar challenges as scaling-up any other process improvement methodology. Simply having more teams or conducting more dry runs are not enough. Further, expenses towards Agile scale-up must be factored in the budget before embarking on Agile. My best recommendation is to never begin any process improvement campaign without first doing a cost-benefit analysis.

FAQ 7: How is Agile project management different from traditional Waterfall technique during product development?

​There are several differences, but I shall highlight only two main differences here. Since Agile was initiated in software business, let me explain this question using software development as an example.
 
The first main difference is that- When Agile is used in product development, in this example a software, features of the software are delivered frequently, and the testing is done in parallel to development. As a result, testing time is shortened because only small features are need be tested at a time. On the contrary, in the Waterfall methodology, testing take place at the end of the development. As a result, testing time gets lengthy as the entire product must be tested.
 
The second difference is that- Waterfall methodology is a closed process where all stakeholders are not involved in the development activity. In Agile methodology, active participation of all stakeholders as well as customers is a must.
 
Although Agile is traditionally being used in software development, it can be applied for any product development be it- toys, food, chemicals, devices, cosmetics, apparel, electronics, services etc.
 
Agile is especially beneficial for product development where frequent changes in the product come up on a regular basis.

​FAQ 8: Can Agile increase productivity?

​Speed and flexibility are two key advantages of Agile methodology. This aspect improves employee engagement, collaboration between teams internal and external to the organization which then boosts output. Agile implementations increase productivity as well as ‘value creation’. In fact, Agile’s strength is in 'value creation' rather than fixing crawling productivity. Therefore, if you are looking to create value, go for Agile. If addressing productivity issues is the sole aim, then go for Lean or Kaizen.

FAQ 9: Why is Agile so popular?

There are multiple advantages of utilizing Agile in organizations. Versatility and speed are two of its key benefits. Further, when applied to R&D business processes, Agile accelerates product development; companies can then achieve first-mover advantage. Also, Agile maximizes value throughout the development process and significantly reduces the overall risk of a project. 

FAQ 10: What are the limitations or disadvantages of Agile methodology?

Agile must be applied after due diligence.
 
First important limitation of Agile implementation is that- Agile is rapid at small scale; but scaling up takes time. A company-wide full-scale Agile implementation takes 1 to 3 years depending upon the nature and size of business. Therefore, Agile is not for weak-hearted setups.
 
Secondly, Agile is unpredictable with regards to effort planning.  Hence, Agile project planning must be done with caution.
 
Thirdly, Agile is all about being fast- to- market with a product designed as per customer demand. Hence, the mechanism of collecting voice of customer and its interpretation must be flawless. However, combining Hoshin Kanrii with Agile helps to circumvent this issue in a big way.
 
Lastly, Agile methodology has minimal documentation. No elaborate reports etc. Usually, simple burn up and burn down charts are used for documentation purposes. Burn up and burn down charts are visual diagrams which measure a project and show its progress, schedule, status and any outstanding work. If creating and distributing bulky reports is part of an organization’s work culture, then it needs to adapt to a major change if hoping to work with Agile. This must be factored-in while designing change strategy before proceeding with Agile.

In the next part of this article, I shall discuss on how to use Agile to improve business resilience.
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Related reading-

  • Business Turnaround and Continuous Improvement Tips & Tricks Part 3 of 6- Agile in Nutshell for Improving Sales & Marketing of Products and Services
  • Improving business process effectiveness and efficiency for the new normal.
  • ​What is the difference between business process improvement and business process redesign?​
​#Agile  #AgileProductDevelopment  #BusinessTransformation #AgileFAQ #Scrum #ProjectManagement #WaterfallProjectManagement #AgileProjectManagement #ResearchandDevelopment  #AgileForProcessImprovement  #StrategyBuilding  #ImplementingAgileFramework  #ChangeManagement
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Accelerate business growth with Agile- Part 1

1/29/2021

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​Agile is a management methodology proven to speed-up business growth. 
Accelerate business growth with Agile_ Part 1
Agile involves extensive collaborative working between different functions and stakeholders associated with the project, continuous improvement, and iterations at each stage of Agile implementation based on in-flow of customer feedback.
 
Agile was first used in the software development business. But because of the high rate of returns Agile offers, it is gaining popularity in other industry sectors as well.

Which organizations use Agile?

Agile can be used by all types of organizations be it for-profit or non-profit, large companies or startups, those involved with manufacturing, service, education, or government offices.

​However, Agile implementation is the backbone for organizations intending to go for digital transformation.
 
Further, Agile is a necessity and not an option for companies working on product/ process innovations. 

Also, companies aiming to become Smart Factory or Industry 4.0 must include Agile as an inseparable part of their business architecture.

Where can Agile be applied?

Agile can be applied to all areas of an organization- be it Sales, Marketing, R&D, Supply Chain, Advertising, Finance, HR, IT etc.
 
Agile is versatile. It can be successfully used for product development, business process improvement as well as process design. But it has been found to be especially resourceful in product development as compared to process improvement.

Agile as per its name increases speed, that is, it brings-on rapid product development, fast change implementation, fast market launch of a new product, rapid inventory turns at a production site etc.

Agile for project management has been found to assure on-time project deliverables. Implementing Agile for project management is extensively beneficial for handling complex projects such as- Building a new facility, new business development, new product launches, manufacturing site changes etc.
 
An interesting feature of Agile is that it is not just one methodology. Rather it has multiple method components to it such as- methods that focus on practices, those which manage workflows or those which focus on full development cycle etc. There are several effective Agile methods; Scrum and Kanban being the most popular ones.

Dos and Don’ts of Agile:

​Unlike other business process improvement methodologies and product development techniques, working with Agile in the beginning is tough. But once you gain expertise with it, Agile is easy and fun.
 
An important point to note is that the modus of Agile implementation to work conducted by big teams is vastly different from the way it is applied to work happening in small teams.
 
Also, modus of Agile applied to bigger projects is different from the ones applied to small or greenfield projects.
 
Note that there are clearly defined guidelines as to when to use and when not to use Agile. I shall cover this point in detail in subsequent parts of this article.
 
Hence, Agile method must be selected based on the need and type of the project. Agile must not be applied blindly to whole of a product development or process design campaign. Selecting right type of Agile method is critical for its success; one-size-fits-all approach can cause a disaster.
 
In today’s business environment where rate of change is fast as compared to the ones faced in the previous century, Agile supports businesses to improve its agility and meet rapidly changing customer expectations.
 
Agile facilitates businesses to stay relevant.
 
In the next part of this article, I shall touch upon top ten frequently asked questions about Agile methodology and how it can be used to increase business agility.
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Related reading-

  • Business Turnaround and Continuous Improvement Tips & Tricks Part 3 of 6- Agile in Nutshell for Improving Sales & Marketing of Products and Services
  • Improving business process effectiveness and efficiency for the new normal.
  • ​What is the difference between business process improvement and business process redesign?
​Keywords and Tags-
 
#Agile #BusinessAgility  #AgileProjectManagement #AgileFAQ #BusinessProcessImprovement #ProcessDesign  #ProductDevelopment #DigitalTransformation  #BusinessTransformation #Scrum #Kanban #SmartFactory
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Use Strategic QbD to improve Business Resilience

1/27/2021

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Concept wise Quality-by-Design or QbD is not new. The word quality-by-design was introduced by Juran in his work on quality management. And since then organizations have used QbD to introduce quality aspect into products and services.
​
However, in my view QbD is a holistic concept for business improvement and has not been fully explored to its full potential. It can do much more than just build-in quality. In the video below, I have touched upon how QbD can improve business resilience. Watch on…
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Related reading:

  • How to cut costs strategically using Kaizen
  • Quality-by-Design (QbD) approach means Design for Manufacturing (DFM)
  • Business Turnaround and Continuous Improvement Tips & Tricks Part 5 of 6: TQM in a Nutshell
Keywords and Tags:
#Qualitybydesign #Businessresilience #Juran #QualityManagement #AgileKaizen #DesignThinking #DesignSpace #ProductDevelopment #QbD #BusinessTransformation
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    Shruti Bhat
    PhD, MBA
    Certified Lean Six Sigma Black Belt

    ​Shruti is a ​Global Leader in Lean Innovation, Lean Manufacturing, Business Transformation and Continuous Improvement; Best-Selling Author and Speaker.

    Shruti is a Go-To Scientific Expert and Management Leader within Pharmaceutical, Health Care, Device Technology, Bio- Technology, Life Sciences, Retail industry  and affiliated verticals.

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