INTRODUCTION

TO
INNOVATION
 Types of Innovation

• Process Innovation involves the

implementation of a new or
significantly improved production or
delivery method.
 Types of Innovation

• Product Innovation,
Innovation involves the introduction of
a new good or service that is new or substantially
improved. This might include improvements in
functional characteristics, technical abilities, ease
of use, or any other dimension.

• Service Innovation,
Innovation is similar to product
innovation except that the innovation relates to
services rather than to products
Process Map
 ICOR (inputs, outputs, controls and resources) is an
internationally accepted process analysis methodology for
process mapping. It allows processes to be broken down into
simple, manageable and more easily understandable units.
 The maps define the inputs, outputs, controls and resources for
both the high level process and the sub-processes
Tools and techniques
The tools and techniques most commonly used in process improvement are:

 • Problem solving methodology, such as DRIVE

 • Force field analysis
 • Cause & effect diagrams
 • Cause and Effect Diagram with the Addition of Cards
 • Brainstorming
 • Lateral Thinking
 • Six Thinking Hat
 • SWOT
 • Heterogeneous Groups
 • Bench Marking
 • Financial Intensive
 • Architecture and Physical Layout
 • Reversal Approach
 “DRIVE” APPROACH
 Define the scope of the problem the criteria by which success will be
measured and agree the deliverables and success factors

 Review the current situation, understand the background, identify and

collect information, including performance, identify problem areas,
improvements and “quick wins”

 Identify improvements or solutions to the problem, required changes to

enable and sustain the improvements

 Verify check that the improvements will bring about benefits that meet
the defined success criteria, priorities and pilot the improvements

 Execute plan the implementation of the solutions and improvements,

agree and implement them, plan a review, gather feedback and review
 Force Field Analysis
 Force Field Analysis is a technique for identifying forces which
may help or hinder achieving a change or improvement. By
assessing the forces that prevent making the change, plans can
be developed to overcome them. It is also important to identify
those forces that will help with the change. Once these forces
have been identified and analyzed, it is possible to determine if a
proposed change is viable.
Fishbone Diagram
Fishbone or Ishikawa Diagram
 It is also a useful technique for opening up thinking in
problem solving.
 The effect or problem being investigated is shown at
the end of a horizontal arrow;
 Potential causes are then shown as labeled arrows
entering the main cause arrow
 Each arrow may have other arrows entering it as the
principal causes or factors are reduced to their sub-
causes;
 Brainstorming can be effectively used to generate
the causes and sub-causes
PRACTICAL FISHBONE
Cause and Effect Diagram with the
Addition of Cards
 SWOT Analysis
SWOT analysis is a powerful tool for understanding your
Strengths and Weaknesses and for looking at the Opportunities
and Threats you face.

It helps you to uncover opportunities that you are well placed to

take advantage of. By uncovering the weaknesses of your
business, you can manage and eliminate threats that would
otherwise catch you unaware.

More than this, by looking at yourself and your competitors

using the SWOT framework, you can start to craft a strategy that
helps you to distinguish yourself from your competitors, so that
you can compete successfully in your market

The SWOT analysis helps the business to focus on its strengths,

minimize threats and take the greatest possible advantage of
opportunities available to your business.
 S = STRENGTH
 Strengths in your company means the
resources that the company has and
these include the physical assets like
plants and machinery, raw materials,
funds and the human resources, the size
of the market; and the intangible
resources like the skills, capabilities,
knowledge and experience of the people
in the organization
 W = WEAKNESS

 Weaknesses refer to what the

organization does not have but they are
needed for the successful operation of
the business.
 O = OPPORTUNITY

 Opportunities refer to the markets

available in other places, the
technological changes that your
organization would like to have and the
availability of sources for the supply of
inputs.
 T = THREATHS

 Threatsrelate very much to the

competitors, new entrants and substitute
producers in the external environment
and they compete with your company for
the same market.
 Heterogeneous Groups
 Forming heterogeneous groups can enhance creativity
because a diverse group brings various viewpoints to
the problem at hand. Key diversity factors include
professional discipline, job experiences and a variety
of demographic factors. Diverse groups encourage
diverse thinking, which is the essence of creativity. A
culturally diverse group can be effective at developing
creative marketing ideas to appeal to a particular
cultural group.
 Financial Incentives

 In work settings, financial incentives are

likely to spur imaginative thinking. Such
incentives might include paying
employees for useful suggestions,
paying scientists royalties for patents
that become commercially useful.

The 5 S’s
Architecture and Physical Layout

 Many companies restructure space to fire up

creativity, harness energy and enhance the
flow of knowledge and ideas. Any
configuration of the physical environment that
decreases barriers to divergence, incubation
and convergence is likely to stimulate the flow
of creative thinking. The reasoning is that
creative thinking is more likely to be enhanced
by cubicles rather than corner offices, by
elevators rather than escalators and by
 Four basic layout types

Cell layout buffet

Fixed-position layout
service restaurant

Line
layout
Dessert

Starter
buffet
buffet
cafeteria
Main course
buffet Service line
Preparation

Oven
Functional layout kitchen
Cool room
Grill
Freezer Vegetable preparation
 The 5 S’s

Sort (Seiri) = Eliminate what is not needed and keep what

is needed.

Straighten (Seiton) = Position things in such a way that they

can be
easily reached whenever they are needed.

Shine (Seiso) = Keep things clean and tidy; no refuse or dirt in the
work area.

Standardize (Seiketsu) = Maintain cleanliness and order –

perpetual neatness.

Sustain (Shitsuke) = Develop a commitment and pride in keeping

to standards.
 Reversal Approach

 Ask the opposite of the question you want to ask and apply lthe
results.
For example, if you want to improve the response of a service
centre. You normally could ask “How to increase the satisfaction
of customers? but this time ask the reverse or opposite question:
“How to reduce the satisfaction of customers?”

Your possible answers would be:

 Not answering the phone when customers call.
 Not returning phone calls.
 have people with no product knowledge answering the phone.
 Use rude staff.
 give the wrong advice.