Posts Tagged ‘continuos improvement’

Do You Connect the Dots?

Monday, November 9th, 2009

Do you Connect the Dots?
© Roger La Salle 2009

How do you operate?

Have you ever worked in a company where the boss or your manager hordes information? Unfortunately this is not all that uncommon. The old saying goes that “Knowledge is Power”, and those of us that are insecure in our abilities or feel threatened by those around us try to remain in control by hording information.

In fact I know of one company where the Managing Director actually leaves notes lying around with incorrect or inaccurate information. The aim of this of course is to retain power by keeping the troops in the “dark” or better still, confused. Can you believe that?

The question is: what’s your modus operandi?

Many businesses have embraced innovation and opportunity capture as an essential business tool to survive and win in these days of ever increasing information flow, market intelligence, and speed to market. There are many innovation/opportunity models including that of so called “Open Innovation”, and what is best described as internal or “Closed Innovation”.

Closed Innovation

In this case the company has all its innovation endeavours conducted and held tightly within, there is little sharing of knowledge and little interest in eliciting the assistance of outsiders to enhance their innovation initiative. Indeed the managers of these tightly controlled programs use their skills to drive the innovation program. Unfortunately, they may be missing a lot.

Open Innovation

In this case, though the business remains in control of its destiny and direction it enhances its innovation initiative by making connections to a seemingly disparate groups of outsiders and companies all looking to expand their horizons by building on combined know how.

These days, there are so many diverse technologies and specialties that it is simply impossible to have a grasp on what is happening on all fronts, thus the connected model has great merit.

Connecting the Dots

One of the great skills of clever entrepreneurs and innovators is to see the linkages between seemingly unrelated issues. This is where in the open innovation model, broadly skilled technologists and open minded thinkers come to the fore.

For example, suppose I run a lumber business. That is the business of cutting up trees to provide timber for the building industry. What possible connection does that have with mathematics? Perhaps none you may think, or certainly the old fashioned timber manager may have thought. But in fact linear programming, quite an old science these days, when employed in that industry can optimise the way timber is cut to provide massive additional profits. But in the closed model, such knowledge may never be acquired, or if it is, only by word of mouth with other operators who may have long since acquired the technique.
Similarly, the technologies developed in putting man on the moon. How could that possibly connect to the business of pots and pans? Teflon coating is the answer.

• Clocks and cell phones or radio paging, is there a connection? Indeed there is. Imagine having a clock equipped with a radio receiver to receive time signals and thus keep perfect time, and even update for Summer Time changes. Such clocks are now available in Australia.

• The packaging business and home insulation? Of course, use bubble wrap as the ideal insulator, it’s light weight, cheap and easy to install and fire retardant grades are available.

• Optics and home insulation? Of course, use a reflective coating on one side of the bubble wrap to reflect radiated heat.

• Physiotherapy and the reduction of carbon emissions?

• The tooth brush and ceramic crystals?

• Extruded plastic “core flute” sheeting and aluminium extrusions?

The reader can ponder the latter three, but the connection in each of these cases has spawned real businesses.

There is an endless list of these seemingly unrelated disciplines that can be connected with an open innovation approach that encourages a wide search horizon.

Indeed this is why the new paradigm of “Opportunity Capture” is now emerging as the preferred approach to the more narrow discipline of traditional innovation.

What’s the Message

Managers in the open innovation space do not need to be great technologists, as perhaps with the closed model. Instead they need to be great net-workers, able to build bridges between people and companies. This is quite a different skills set to that of the managers operating in the closed model.

Thus, stay open minded, expand your horizons and embrace the art of formal opportunity search, where the reach is unlimited.

**** END ****

Roger La Salle, is the creator of the “Matrix Thinking”™ technique and is widely sought after as an international speaker on Innovation, Opportunity and business development. He is the author of three books, Director and former CEO of the Innovation Centre of Victoria (INNOVIC) as well as a number of companies both in Australian and overseas. He has been responsible for a number of successful technology start-ups and in 2004 was a regular panellist on the ABC New Inventors TV program. In 2005 he was appointed to the “Chair of Innovation” at “The Queens University” in Belfast. Matrix Thinking is now used in more than 26 countries.

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Process Innovation – A key to unharvested wealth?

Thursday, February 14th, 2008

Process innovation can open your business to a complete world of new opportunities if approached from the right perspective!


Process innovation is traditionally viewed as more appropriate to the manufacturing sector, but in fact process innovation applies to everything we do, manufacturing, services and even management processes.. It aims at improving business outcomes by cutting costs. Properly implemented process innovation come with little risk.

Further, a dollar saved in process improvement goes straight to the bottom line as a full dollar, whereas increased revenue targeted from heightened sales activity translates to only some portion as a bottom line increase.

The more common process innovation approaches include, ‘Six Sigma’ with its aim for almost zero defects, ‘Lean Manufacturing’ that focuses on cost down initiatives and waste removal; and ‘Continuous Improvement’ that aims to involve the entire organisation in looking at ways of endless incremental improvement.

Innovate and remove market risk

If we accept that the by far the single biggest risk in business is market risk, that is the risk that nobody will buy the product, then logic would have it that the best way to mitigate this risk is to find something people are already buying and simple improve it. This in fact is what innovation is all about and leads to the ideal definition of innovation as “Change that Adds Value © La Salle 1999

Nokia is one of the world’s greatest innovators with new improved more featured hand phones coming on to the market every six months. They understand this game perfectly.

Car companies are pretty good as well with face lifted models every 12 months and models bearing a new shape, aimed at rendering your present one obsolete, almost every three years.

Why should the message be different for processes?

Create a Paradigm

Have you ever realised that some of the world’s great businesses have grown on the back of nothing more than improved processes!

FedEx, DHL UPS, did nothing more than look at the very successful postal service and innovate it to provide faster deliveries.

So too Dell Computers, Reuters, and even the Ford Motor company.

Henry Ford did not invent the motor car, he simply innovated the way they were made.

The list of such innovated process that spawned new global businesses is almost endless. And in the case of Amazon, they created a business with a negative cycle time, doing nothing more than finding a new way to sell books.

A structured approach to process innovation can identify complete new paradigms, if only conducted in the right mindset.

Remember, there is always a better way.

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