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Innovation for Manufacturing Excellence:An Integrated Framework

N. ViswanadhamCenter for Global Logistics and Manufacturing Strategies

Indian School of Business Hyderabad 500032, India

July 25, 2008

MANMAN’’EXE 2008EXE 20085th Leadership Series on Manufacturing Excellence5th Leadership Series on Manufacturing Excellence-

The Winning Edge through InnovationHotel Taj Krishna : Hyderabad

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A Framework for InnovationA Framework for Innovation

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What is Successful Innovation?What is Successful Innovation?Creativity is typically seen as the basis for innovation. Innovation involves acting on the creative ideas to make some specific and tangible difference in the domain in which the innovation occurs. Individuals may be source for Creativity, but innovation occurs in the Organizational or Societal context

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There were several innovations in recent times that have revolutionized the way we live, the way we communicate, the way we work and the we way spend our leisure time.Here we present an integrated framework for Here we present an integrated framework for successful innovations .successful innovations .You know the stake holders involved and the decision needed for the innovation to succeed and accordingly make plans

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Components of Successful InnovationsComponents of Successful Innovations

Product and Value Chain Innovation Economic Innovations through Government RegulationsResources and Resource ManagementCConnecting Technologies: Logistics and IT We call this the PERC framework for Excellence in Innovation

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The Biggest Innovation of Recent Times:The Biggest Innovation of Recent Times:Cell PhoneCell Phone

How many of us have imagined ten years ago that you can communicate in real time at affordable rates and do business while traveling on the road or rail or airplane?

How is this made possible?Convergence of Several Innovations

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PProduct and Value Chain Innovationroduct and Value Chain Innovation

Create quality product at affordable cost with features for voice, text, picture, games and other video communicationsProduct Design and Global Manufacturing Outsourcing innovations to bring down the costHighly sought after Exotic Products

Raise of Contract ManufacturingContract ManufacturingMarketing innovations Marketing innovations such as such as Prepaid, Missed calls,Prepaid, Missed calls,

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Economic Innovations through conomic Innovations through Government RegulationsGovernment Regulations

Deregulation of telecomSpectrum allocationSpecial Economic Zones to attract Nokia, Flextronics,Allowing foreign players as manufacturing and service providers.

Booming industry and FDIBooming industry and FDI

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Resources and Resource Managementesources and Resource Management

Human Resources for manufacturing of phones and telecom equipment and for service providers( MRO, Billing)Management expertsFinancing the venturesTraining the workforce (Universities, IIITs)

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CConnecting Technologies: onnecting Technologies: Logistics & IT Logistics & IT

Communications network & Service providersOutsourcing: Value Chain Redesign Innovation (Bharti)Business Model Innovation: Estimate your market right (Reliance)

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nce The cell phone revolution is

the result of several PERC innovations which converged into a massive manufacturing

& service industryThis happened in India by

accident or design?

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Resource ShortageResource Shortage

Talent for Governance of Globally dispersed & independently controlled manufacturing

& service chains