An introduction to the Design for Innovation (D4I) Strategic Business Development Framework by Iain Sanders at www.designforinnovation.com

1. Design for Innovation
Design for Innovation Embedding best practice discipline in business
The Design for Innovation
(D4I) Framework
Sustainable Value
Creation, Management
and Innovation
We help companies achieve better
results by making better decisions
Design for Innovation Ltd, 2009 1

2. Success story
US$500 billion
GE Market
Capitalization
US$13 billion
1981 2000
Jack Welch appointed Jack Welch steps
as CEO of GE down as CEO of GE
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3. Design for Innovation
Design for Innovation Embedding best practice discipline in business
Success
Story Jack Welch said:
“We have only two sources of
competitive advantage:
1. The ability to learn more about our
customers faster than the competition.
2. The ability to turn that learning into
action faster than the competition.”
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4. What you don’t know about your
customers and your business may
be costing you millions!
For example: For example:
Your business The best
model is now
customer
obsolete,
limiting your solutions to
effectiveness
maximize your
and ability to
achieve a customers’
sustainable
profitability
competitive
advantage
For example:
technology,
product &
service
value-creation
urgent needs
Design for Innovation Ltd, 2009 4

5. Design for Innovation
Design for Innovation Embedding best practice discipline in business
We see Innovation as THE Driver of Competitive Advantage
Systemic Approach to Innovation
BUSINESS ORGANIZATIONAL
innovation innovation
PRODUCT STRATEGY PROCESS
innovation innovation innovation
MARKETING TECHNOLOGY
innovation innovation
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6. D4I Framework Summary
 Where [are our stakeholders going]?
 Target key stakeholders’ unmet wants and needs.
 What [do they need to get there]?
 Identify problems to solve and opportunities to realize, that
leverage existing resources and capabilities.
 How [will they get there]?
 Generate solutions with inventive problem-solving, product
ideation and innovation tools.
 How Well [can they get there]?
 Evaluate feasibility and value of alternative solutions from
multiple perspectives.
 When [will they get there]?
 Develop and execute an effective action plan for
implementing solutions and monitoring progress.
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7.  Where [are our stakeholders going]?
[5] [1]
STAKEHOLDER STAKEHOLDER
CONTRIBUTIONS WANTS & NEEDS
TO SUSTAIN FOR PROVIDING
CAPABILITIES CONTRIBUTIONS
Target key
stakeholders’
unmet wants
[4]
CAPABILITES
and needs [2]
STRATEGIES TO
TO OPERATE SATISFY KEY
& ENHANCE STAKEHOLDER
PROCESSES WANTS & NEEDS
[3]
CRITICAL
PROCESSES
TO EXECUTE
STRATEGIES
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8. 2. What [do they need to get there]?
 Identify problems to solve and opportunities to realize, that
leverage existing resources and capabilities.
Identifying Problems and Opportunities with your
Stakeholders… including Business Patterns
1. Unexpected 1. High-Growth
Successes Areas
2. Unexpected 2. Converging
Failures Technologies
3. Unexpected 3. Demographic
External Events Changes
4. Process 4. Perception
Weaknesses Changes
5. Industry / Market 5. New
Structure Changes Knowledge
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9. Stakeholder Partnerships for Stakeholder-driven Innovation:
Involve Your Stakeholders as Co-innovators
Leadership Board
R&D Marketing
Stakeholders
Finance Sales
Operations Purchasing
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10. 3. How [will they get there]?
 Generate solutions with inventive problem-solving, product
ideation and innovation tools.
7.
Technology Enablers
6.
Delivery Processes
Business Focus: 5. Business Focus:
Efficiency – Solution-driven Products Effectiveness –
Business Business
Responsiveness 4. Proactivity
Solution-driven Services
3.
Customer Solution Optimization
2.
Business Model Optimization
1.
10
Business Model Ideation

11. 4. How Well [can they get there]?
 Evaluate feasibility and value of alternative solutions from
multiple perspectives.
Examine the Critical Factors:
1. Technical Factors 1. Marketability Factors
2. Timing Factors 2. Production Factors
3. Stability Factors 3. Financial Factors
4. Position Factors 4. Protection Factors
5. Growth Factors 5. Stakeholder Factors
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12. Design for Innovation
Design for Innovation Embedding best practice discipline in business
Design for Innovation provides a simple yet deeply insightful frame of reference for
making better decisions and achieving better results by design, on a continuous basis
Stakeholder Perspectives Examined:
• Investors
• Customers
• Intermediaries
• Employees
• Suppliers
• Regulators
• Communities
• Pressure Groups
• Alliance Partners
• Other Stakeholders
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13. 5. When [will they get there]?
 Develop and execute an effective action plan for
implementing solutions and monitoring progress.
Stage- / Phase-Gate Project
Management for Any Process (e.g.)
• Operating Processes: • Management & Support
Processes:
– Develop Vision & Strategy – Develop & Manage Human
– Design & Develop Products Capital
& Services – Manage IT & Knowledge
– Market & Sell Products & – Manage Financial Resources
Services – Manage Environmental Health
– Deliver Products & & Safety
Services – Manage External Relationships
– Manage Customer Service – Change Management
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14. Design for Innovation
Design for Innovation Embedding best practice discipline in business
The D4I Framework Facilitates Value
Creation, Management and Innovation
Planning
Where are What can we Create new Evaluate Action and
Value we going? use now? possibilities and select monitor
Creation
Value
Impacts
Value
Outcomes
Value
Outputs
Value
Drivers
Value
Builders
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15. Design for Innovation
Design for Innovation Embedding best practice discipline in business
D4I Framework Core Competencies
Primary Focus:
Performance Improvement
Primary Focus:
Customer Solutions
Primary Focus:
Ideation & Innovation
Primary Focus:
Project Management
Where are our What do they How will How well When will
stakeholders need to get they get can they they get
going? there? there? get there? there?
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16. D4I Framework Tools & Resources
 Where [are our stakeholders going]?
 Performance improvement audits & roadmaps
 Strategic planning workshops & seminars
 What [do they need to get there]?
 Tools for maximizing existing & potential lifetime value of customers & prospects
 Customer-product interaction discovery workshops
 Business-Market-Customer opportunity discovery workshops
 Business-Market-Customer problem solving workshops
 How [will they get there]?
 Inventive problem solving workshops & seminars
 Product ideation & innovation workshops
 Product-process-service innovation audits
 How Well [can they get there]?
 Better decision making guides and tools
 Collaborative innovation capture, assessment & optimization
 When [will they get there]?
 Process mapping and workflow optimization
 Stage-gate project management; and stage-gate product ideation & development
 Lean six sigma & design for six sigma tools & resources
 Tools & resources for facilitating collaboration & change management
 Market research and technology R&D
 Techno-economic analysis & modelling for business investments
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17. 17

18. D4I Framework for Technology Innovation Management
 Where [is the need]?
 What is the next winning technology to satisfy the potential
or perceived market need?
 What [is the problem definition]?
 Transform the need into a clearly defined problem, or a set
of problems accompanied by a list of various constraints.
 How [will the problem be addressed]?
 Generate conceptual solutions to the problem(s) with TRIZ.
 How Well [do the alternative solutions work]?
 Evaluate the concepts generated against various criteria, &
select the most promising ones for designing a prototype.
 When [will the best solution be ready]?
 Develop the detailed design, determine the dimensions of
all the components, specify material requirements etc.
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19. D4I Tools for Technology Innovation
Management
• Problem analysis, definition & • 100s of Patterns of Invention (Operators) to:
development audit: – Eliminate, reduce or prevent harmful effects
– Level 1: Routine design problems – Provide alternative ways to obtain useful
– Level 2: Minor improvements effects
– Level 3: Fundamental improvements – Resolve physical & other technical and non-
– Level 4: Next generation technologies technical contradictions
– Level 5: Pioneering discovery / invention • 1,000s of scientific effects for supporting
• Algorithm for Inventive Problem Solving Substance-Field Analysis, and discovering /
(ARIZ) enhancing ready-to-use, derived & insufficient
resources:
• Laws of technological system evolution: – Fields: absorbing, accumulating, detecting,
– Tools for development of conceptual preventing, producing other fields & resources
designs – Substances: accumulating, combining, detect-
– Tools for identification & development of ing, eliminating, forming, moving, changing
next-generation technologies phase, preserving, producing & separating
• 76 Standard Solutions for fundamental other substances & resources
improvements to existing systems with – Parameters: changing, decreasing, increasing,
Substance-Field Analysis: measuring, stabilizing other parameters &
resources
– Improving the system with no or little
change • Access to and searching of US patents &
– Improving the system by changing the patent applications, EP documents, Japan-
system ese abstracts, and WIPO (PCT) documents
– System transitions • Access to and searching of 7,000+ detailed
– Detection and measurement scientific & engineering encyclopedia topics
– Strategies for simplification & improvement • 100s of searchable technical guidebooks
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20. Design for Innovation
Design for Innovation Embedding best practice discipline in business
Companies we have worked with
* Industrial Research Limited
* National Institute of Water & Atmospheric Research
* Meridian Energy
* Orion Networks
* IAG Insurance
* MainPower
* Coca Cola Amatil
* Eastland Networks
* General Cable New Zealand
* Asia Pacific Economic Cooperation (APEC)
* Canterbury Development Corporation
* Ravensdown Fertiliser Cooperative
* Canterprise, University of Canterbury
* New Zealand Trade and Enterprise
* Business Mentors New Zealand
* Rocky Mountain Institute, USA
* Ideation International, USA
* PD-Trak Solutions, USA
* Broken Hill Proprietary, Australia
* Centre for Exploitation of Science & Technology, UK
* Department of Trade & Industry (DTI), UK
* The Design Council, UK
* The European Commission (Belgium, Luxembourg)
* Mitsubishi Research Institute, Japan
* Tokyo Electric Power Company, Japan
* McMer Corporation, Philippines
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21. Design for Innovation
Design for Innovation Embedding best practice discipline in business
For further information contact:
Dr. Iain Sanders
Mobile: +64 (027) 356-6401
Skype: iain.designforinnovation.com
Email: iain@designforinnovation.com
Web: http://www.designforinnovation.com
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