A Century Of Systematic Innovation From Edison To Lafley

A century of systematic innovation: From Edison to Lafley

1947 -1847 - 1931

Vinay Dabholkar, Ph.D.

Catalign Innovation Consulting

vinay@catalign.com

04-Mar-2010

Let’s get on the same page• What is innovation?• Why innovate?

A working definition of innovation

Idea Implementation

Definition-1: I2P (I-squared-P)

Profit

Definition-2: I2P (I-squared-P)

IdeaImplementation in a System

Performance improvement

System can be organization, village, society, college

Performance can be revenue, wealth, health, education, harmony

Why innovate?

Future-proofing Make work interesting

Innovate

Produce &Sell

Our Focus

Can we become more innovative systematically?

Without any assumptions regarding:

• Size – 1 to 1 Lakh

• Sector – Low tech to high-tech

• Culture – Google to Government

• Leadership – With/without Steve Jobs/Ratan Tata

Has anything of this sort happened before?

Dr. Joseph Juran, Architect of Quality 1904 - 2008

Can we do to innovation, what TQM did to Quality?

- Gary Hamel, Innovation to the Core, 2007

We are all set on our “systematic innovation” journey

1847 - 1931

Let’s start with Thomas Edison

What did Edison nickname his first 2 kids?

“Dot” and “Dash”

What would he nickname them today?

“Dot-com” and “Dash-board”

Edison’s dashboard

Hit a maiden century in 1882

A bad patch

Second inning

No of patents

Total score: 1093 over 61 years Batting avg: 1 patent / 20 days

Light bulb

Phonograph

Movie camera

Where is innovation here? I2P

Anything that won't sell, I don't want to invent.

Edison was an innovator

Edison’s business empire

Automobile Edison General Electric Cement

Film studio Storage battery Phonograph

Edison’s business legacy

Edison General Electric National Phonograph

Thomas A Edison Inc

18921985

McGraw-Edison1957

What was Edison’s greatest innovation?

Method of innovation

“Invention Factory” at Menlo Park (1876)

Method of innovation: Electricity story

• Edison watched miners drilling for ore manually

• Prof. Barker said – sub-divide light like gas system

• Saw a generator system – with 8 lamps in series

• Stops phonograph work, re-starts electricity work

• Edison & co study established coal gas system

• Establish price goals to match the gas system

• Report injuries and deaths due to gas

Arch lamps of 1870sIllumination: 2000 candle power

Top 2 goals (Totally 8 goals)

1. The lamp must give moderate illumination

2. Each lamp can be lighted separately

1878 1879

• Assigns filament experiments to Upton & Batchelor

• Upton & Batchelor perform several thousand experiments

• Successful filament experiment with carbon (Oct 1879)

• Upton & Batchelor get stocks and portion of royalty

“gang” members

1878 1879

Demo at Menlo ParkDec 31, 1879

We will make electricity so cheap that

only rich will burn candle

1878 1879

• Commercial production begins

• Cost of each bulb: $1.10 and price $0.40

• Sale: Approx 20K to 30K bulbs

1878 1879 1880 1882

• More experiments

• Cost down to: $0.50 and price $0.40

• Loses more money than all previous years

1878 1879 1880 1882

• More experiments

• Starts making profit

1878 1879 1880 1882

• Introduces automation in production

• Makes tons of money

• Sells his business (GE formed)

1883 1892

What is Edison’s method of innovation?

Commercialization MarketOpportunity Identification

SystematicExperimentation

CEO model

Idea FunnelManagement

Idea Funnel: CEO model

CEO model: Edison Method

Need (miners)1

Risk (8 lamps)2

Know the known (gas system study)4

Establish goals & use-cases (8 goals)5

6 Experiment 7 Demo

Manage portfolio(drops phonograph)

8 Sell

Edison’s method: 3 principles (UPX)

Establish use-cases

Edison Principle #1

1. Letter writing, dictation

2. Books – speaking to blind

3. Teaching of elocution

4. Reproduction of music

5. Family record – last words

6. Music boxes and toys

7. Clocks announcing time

8. Language preservation

9. Explanations by teachers

10. Connect with telephone

- Phonograph use-cases written in 1878 before suspending work

Manage a portfolio

Magnetic ore separation Electric railway

Secondary batteries Telegraph & telephones

Edison patents during 1880-1885

To have a great idea, have a lot of them.

As soon as I find that something I am investigating

does not lead to practical results, I drop it.

Edison Principle #2

Experiment systematically: Fail early, fail often

I have not failed. I've just found 10,000 ways that won't work.

Edison Principle #3

Great ideas originate in the muscles

Organize for rapid experimentation

To invent, you need a good imagination and a pile of junk.

eight thousand kinds of chemicals, every kind of screw made, every size of needle, every kind of cord or wire, hair of humans, horses, hogs, cows, rabbits, goats, minx, camels ...silk in every texture, cocoons, various kinds of hoofs, shark's teeth, deer horns, tortoise shell ...cork, resin, varnish and oil, ostrich feathers, a peacock's tail, jet, amber, rubber, all ores ...

-“a pile of junk” in Edison’s laboratory

Edison Method

Know the known4

Establish goals & use-cases5

6 Experiment 7 Demo

3 Manage portfolio

8 Sell

StopStart Demo

Innovation is more like a marathonwith two experimentation loops

Idea-to-demo loop Demo-to-cash loop

1947 -

Let’s fast forward to 21st century

A. G. Lafley, ex-CEO of P&G

Why is AG interesting?

We started from the premise that it is possible to

run an innovation program much the same way we

run a factory.

- AG, Game-Changer, 2008

AG’s Dashboard

Revenue

2000 2009

$40 B $80 B

$B brands 10 23

$0.5B-1 brands 4 18

R&D as %Rev 4.5% 2.7%

Success rate 15% 50%

Pringles Prints

Why was the tech spec sent out ?

For every 2 ideas that reach market,

1 should have a partner outside P&G

Innovation Goal

How does P&G find these needs?

P&G’s baby discovery center

Immersive research

So, what has changed?

1. Scope of innovation

Types of

innovationsProcess

Product /Offering

Business

Innovation is broader than patents & products

Customer

Experience

2. Capacity of innovation

Collaboration increases innovation capacity

3. Efficiency of innovation

Do the last experiment first

Lower your batting average

Finding killer issues early

President’s fail-forward award

Idea Funnel

Scope 1

Capacity2

Efficiency3

Innovation Factory Metric

apacityC

Do we have a “challenge book”?

Toyota: 40 years, 20 million ideas

Year No of Suggestions Participation Adoption

suggestions per person Rate(%) Rate(%)

1951 789 0.1 8 23

1971 88,607 2.2 67 72

1986 2.6million 48 95 96

Idea/person 5 6 4 4 4

Invention Disclosures / Patents per person

Experiments / Prototypes per person

No of idea points per person

Additional capacity metric

fficiencyE

How fast do the ideas move?

Daily, weekly, monthly, yearly?

Rigor and rhythm of innovation review

Efficiency metric

utputO

Savings / idea 35K 24K

Output metric

No of ideas implemented (yr)

% Revenue from new products / brands

Batting average (success rate)

Output metric

Innovation Engine

Opportunity

Identification

Experimentatio

Commercializatio

Use-cases

Portfolio

Experimentation

Invention Factory

Innovation scope

Immersion

Open idea funnel

100 year journey

Innovation Factory

apacityC

fficiencyE

utputO

Innovation Factory Metric

Innovation books

Blog: www.catalign.com

Additional innovation books

1875 1900 1925 1950 1975

Suggestion box

Edison’s Invention Laboratory

Brand innovation

LafleyInnovationFactoryDrucker

Reality show

VC industry

Kaizen

Ev RogersDiffusion of innovations

Gabriel TardeS-curve & ideaadoption

Ford Model-Tcontinuousimprovement

CorporateResearch Lab

Future Demands Dept

Margin of safety

15% Rule

SchumpeterCreative Destruction

Scheinculture change

A brief history of systematic innovation

TalebBlackSwanHeathMade

to stick

vinay@catalign.com

ThomkeExperi-mentationMatters

Thank You

A Century Of Systematic Innovation From Edison To Lafley

Documents

Transcript of A Century Of Systematic Innovation From Edison To Lafley

Edison Ch1

Southern California Edison 2004 Annual Report · 2020. 9. 10. · Southern California Edison 2004 Annual Report. Southern California Edison Company Southern California Edison Company

Edison State Community College 1973 Edison Dr. · Edison State Community College 1973 Edison Dr. ... Edison State Community College’s Quality Checkup site visit. ... branch campus

1201.01 - 2018 Edison Audit Report (Edison Township ...

Edison Crossroads • Route 1 & Prince Street • Edison, NJ · Edison Crossroads • Route 1 & Prince Street • Edison, NJ 7,800 SF - 14,000 SF Available for Lease All information

THOMAS EDISON HIGH SCHOOL · MINNEAPOLIS THOMAS EDISON HIGH SCHOOL (Established 1921) Thomas Edison High School Vision Statement Through innovation and personal empowerment, the Edison

Ontdek Edison in 10 lessen - Edison Programmable Robot · 2019. 4. 20. · Edison is een kleine programmeerbare robot, waar ook LEGO-onderdelen bij gebruikt kunnen worden. Edison

Edison and EdBlocks Activity 1 Programmer’s Namev3.hamiltonbuhl.com/hammanual/Edison-EdBlocks-Lessons-Activites... · Edison and EdBlocks Activity 1 Programmer’s Name Mee Edison

Thomas Alva Edison...Thomas Alva Edison

EDISON INTERNATIONAL AND SOUTHERN CALIFORNIA EDISON ... · edison international and southern california edison company notice of annual meeting and joint proxy statement annual meeting

La vie de Thomas Edison - The Life of Thomas Edison

2019 Township Edison DPW Calendar website copy.pdf · Edison. Recycling & Sanitation Calendar. Township of Edison. DEPARTMENT OF PUBLIC WORKS. 100 MUNICIPAL BOULEVARD EDISON, NJ 08817

Edison International & Southern California Edison 2019 Joint ......Southern California Edison Company 2021 GRC A. 19-08-013 TURN HEARING EXHIBIT TURN-062 Edison International & Southern

The Edison Ballroomedisonballroom.com/downloads/press-kit.pdf · The Edison Ballroom Originally opened in the 1930s as the Grand Ballroom of the adjacent Edison Hotel, The Edison

Edison Ch4

Thomas Edison

THOMAS EDISON 4 TH PERIOD US HISTORY. THOMAS EDISON.

Edison Redux

Edison Language

EDISON SCHOLARS · EDISON SCHOLARS Become an Edison Scholar. Edison International is awarding $40,000 college scholarships to 30 high school seniors to help them follow their dreams