"Digital Business Delivery" presentation
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MN7030Session9DesignandInnovation.pptxMaster of Business Administration Digital Business Delivery Session 9 : Design and Innovation
Professor Nigel Caldwell
Recap last session: Process design and mapping
Services are not some residual of products
Service is about co production and
Businesses use servitisation
The Experience economy is arguably an extension of the service economy
Todays agenda
Design and Designers – or any function that has a powerful voice and the ability to sway
The Resource Based View in action
What is our organization about – key competencies, playing to strengths
Importance Performance matrix?
Operations Resources
Market Requirements
Operations strategy reconciles the
requirements of the market with the
capabilities of operations resources
Strategic Reconciliation
Operations Strategy
Forecast level of demand
Rapid technology change
The increasing strategic importance of product and service development
Shortened life-cycles
Fragmented markets
Means of building capabilities
Involves all parts of the business
Operations resources
Market requirements
Product and service development
Adapted: Slack and Lewis. (2002) Operations Strategy, p392.
‘design n. & v. n. 1 a a preliminary plan, sketch , or concept, for the making or production of a building, machine, garment, etc. b the art of producing these … 3 a plan, purpose or intention. 4 a an example or a completed version of a sketch, concept, or pattern. b an established version of a product (one of our most popular designs). v.tr. 1 produce a design for (a building, machine, picture, garment, etc.). 2 intend, plan, or purpose …’Concise Oxford Dictionary, 1997 edition)
‘Design is important because if it was not designed, it could not be made.’
(Edward, aged 10)
Design
Redesigning the emergency ambulance
Emergency response
Fast, light
“Scoop and go” – just take to hospital
Design – incremental
Measure: response time
NB Ambulance Trusts run ambulances
Emergency response
Treat – slow, big
Treat at scene – reduce hospital admissions
Design radical
Measure: response time
Hospital Trusts run Hospital Trusts
http://www.qualitywatch.org.uk/indicator/ambulance-response-times
https://www.metropolismag.com/design/ambulance-of-the-future/
Agenda
The role of innovation in creating competitive advantage
Product and service design realities
Enabling effective creativity
Combining product and process design
Barriers to innovation
Exploring “disruptive innovation”
New models of innovation
Why innovate?
‘Firms that get to market faster and more efficiently with products that are well matched to the needs and expectations of target customers create significant competitive leverage’
Wheelwright and Clark (1993) Revolutionizing Product Development.
Creating competitive advantage:
Scarcity
Imperfect mobility
Imperfect imitation
Imperfect substitution
Resource Based View
‘Innovation is a product of the interaction between necessity and chance, order and disorder, continuity and discontinuity.’ Nonaka (1990)
Creativity & Implementation
uncertainty regarding the final design
certainty regarding the final design
time
choice and evaluation "screens"
concept/s
large number of design options
final design
specification
one design
Traditional view of design - variation reduction
Men with a mission
The problem
The client
Richard Seymour & Dick Powell
products:
currently makes “low-end” bathroom suites
bought mainly building contractors and middle-income customers in 30-50 age range
committed to move up-market
typical price £372
company:
Ceramic bathroom manufacturer est. 1939
850 strong workforce
turnover (1997) £40.8m, net profit £1.8m (4.4%)
Main markets: UK, Benelux, Germany, Greece, Singapore, Hong Kong & Middle East
competences:
ceramics; some traditionally made by labour intensive pouring, moulding, drying, glazing and firing, others made by using state of the art pressure casting techniques
competition:
Armitage Shanks, Twyfords, Ideal Standard, Hermitage as well as imports from EU and Middle East. Shires’ markets are relatively volatile
distribution:
via bathroom suite merchants
concept generation
screening
evaluation and improvement
prototyping and final design
preliminary design
design brief
production
pre-design
04 Understanding Capability.mov
Understanding capabilities
The stage gate model
The stages
that appear in
Slack text book
What is the role of the designers?
concept generation
screening
evaluation and improvement
prototyping and final design
preliminary design
design brief
production
pre-design
Engaging designers
What are the objectives of customers, marketing, operations, and the designers?
Are there any conflicts amongst these groups?
12-month deadline (for Paris show)
must be “manufacturable”
target price (for complete suite) around £900-1000
£250,000 for development to include pre-production tooling and marketing costs
feel: “modern classic with a hint of revival”
“a stunning bathroom suite that was going to sell”
The design brief
flushing must be push - button
12-month deadline (for Paris show in March 1998)
investment commitment:
£250,000 for development to include pre-production tooling and marketing costs
target price (for complete suite) around £900-1000
must be “manufacturable”
“a stunning bathroom suite that was going to sell”
feel: “modern classic with a hint of revival”
Charles Kyriacou
customer
marketing
interpretation of
expectations
expectations
product / service
specification
product/service design
product / service
operations
The design loop
The market
The creative bit
Where do ideas come from?
concept generation
screening
evaluation and improvement
prototyping and final design
preliminary design
design brief
production
pre-design
Ideas from:
Internal
Analysis of customer needs
Suggestions from customer contact staff
Ideas from R&D
External
Competitor actions
Customer suggestions
Market surveys
Other
Other products / services
internal sources
marketing
department
analysis of
customer needs
suggestions from customer contact staff
ideas from research and development
market
surveys
suggestions from customers
actions of
competitors
concept generation
external sources
Concept generation
Enabling effective creativity
Define market boundaries
Understand market dynamics
Identify new market trends
Identify new technological trends
Integrated future searches
Learning from others
Involving stakeholders
Involving insiders
Using mistakes and ‘failures’
Communication and connection
‘Search’
‘Select’
‘Implement’
Define market boundaries
-what market are we in?
-are there new markets we can access?
Understand market dynamics
-where’s the market going?
-what factors influence change? (organics market in UK linked to social issues and inversely to economic climate!)
Identify new market trends
-what about markets that don’t exist?
-how can we pick up early signals of emerging markets? (crazy frog in UK)
Identify new technological trends
-how can we identify future technologies? – suppliers, conferences, forums, R&D,
Integrated future searches
-alternative futures / linked to scenario planning
-parallel futures
Learning from others
-benchmarking, reverse engineering (e.g. South west airlines benchmarking against F1 to improve turnaround times for planes)
Involving stakeholders
-using customers for ideas – e.g. Novopen for diabetes
-CIT, panels, surveys
Involving insiders
-the huge value of employees in product, service, and process improvement
-ask…when did you last speak to your internal customers? (Marketing don’t even know who they are!)
Using mistakes and ‘failures’
-viagra, pritt stick, and post-it notes were all a result of mistakes
-failure is an opportunity
Communication and connection
-the value of communication internally and externally. Example of professor at Warwick leaving a fund for donuts and coffee to encourage interaction
The initial concept
What was the concept that was created?
concept generation
screening
evaluation and improvement
prototyping and final design
preliminary design
design brief
production
pre-design
What will Shires make of it?
Ideas from:
Internal
Analysis of customer needs
Suggestions from customer contact staff
Ideas from R&D
External
Competitor actions
Customer suggestions
Market surveys
Other
Other products / services
The client response
What will Shires make of the concept?
Evaluation
concept generation
screening
evaluation and improvement
prototyping and final design
preliminary design
design brief
production
pre-design
What are the screening issues raised by marketing, operations and finance?
Why was time to market
so important?
delay in financial breakeven
delay in time to market
development costs
development costs of delayed project
time
cash
sales revenue
cash flow
delayed sales revenue
delayed cash flow
A challenge
Refining the concept
Benchmarking
Practicalities
What was involved at this stage?
concept generation
screening
evaluation and improvement
prototyping and final design
preliminary design
design brief
pre-design
production
concept generation
screening
evaluation and improvement
prototyping and final design
preliminary design
design brief
production
pre-design
Evaluation and refinement
What were the pressures on the design and the designers at this stage?
Presenting to the board
16 Presenting to the board.mov
Focusing management attention
KNOWLEDGE ACQUISITION
CONCEPT INVESTIGATION
BASIC DESIGN
INITIAL TESTS
PILOT PRODUCTION
MANUFACTURING RAMP-UP
LAUNCH
ABILITY TO INFLUENCE OUTCOME
MANAGEMENT ACTIVITY PROFILE
TIME
70% of a product’s costs determined in the design stage
Let’s summarise the story so far….
Loo design in the
