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Philips 1
- 1. Presented By: Mersha Aftab School of Design, Northumbria University, Newcastle Upon Tyne. Under the Supervision of: Prof. Robert Young, Elizabeth MacLarty.
- 2. RESEARCH QUESTION 1 How can Design be established as a leading functional discipline at a strategic level in a multinational industry to drive a successful innovation?
- 3. HYPOTHESIS 2 Design can be established as a leading functional discipline at a strategic level in a multinational industry to drive a successful innovation if it engages all its competencies of ‘Creativity’, ‘making connection’ and ‘exploration’ and enables strong ideas to be debated and become valuable business propositions of the future supported by an explicitly defined process.
- 4. METHOD 3 Phase 1 Case Study @ Philips Design Alignment with the literature Phase 2 Triangulation with an expert Interviewing other companies Phase 3 Triangulation with an expert Phase 4 Feeding it back to Philips Design
- 5. EXPLORATION 4 Daimler, Airbus, Nokia, Ericsson, Danisco, Xerox, IBM, Novo Nordisk A/S, Arla foods, Presalit, Strategos. Daimle Airbus Nokia Design has a Design work culture r Design is involved in consumer research minimal role and is is very close to since the beginning. complete contrast to Philips. Their Design Their consumer Philips. Balances two process has not research process different cycles of been successful and matches with Philips Innovation within the has gone through a Design Scoping strategy lot of changes. framework. successfully. Very innovative ways of leading an idea to success.
- 6. INNOVATION SCENARIO 5 New to the world Peak of inflated expectation Horizon 3 PRODUCT LIFECYCLE New to the company Breakthrough Plateau of Productivity New to the segment Horizon 2 Adjacent Improved product Horizon 1 Trough of Incrementa l disillusionment Technology trigger INNOVATION 4/4 Matrix against Gartner’s hype cycle (Source: Alchemy of growth and Philips Design)
- 7. DESIGN SCENARIO 5 New to the world Horizon 3 PRODUCT LIFECYCLE New to the company Breakthrough Individuals as ‘Exploration’ experts New to the segment Horizon 2 Adjacent Individuals as ‘Connection’ makers Improved product Horizon 1 Incrementa l Traditional Designers/engineers/marketers etc INNOVATION 4/4 Matrix against Gartner’s hype cycle (Source: Alchemy of growth and Philips Design)
- 8. Peak of inflated expectation VISIBILITY PROBLEM 6 Plateau of Productivity Peak of inflated expectation Trough of disillusionment H3 Plateau of Productivity Technology trigger H2 Trough of disillusionment H1 Technology trigger TIME = new ideas
- 9. VISIBILITY PROBLEM 7 A new H3 is developed for 2033 - 2053 H3 2025 - 2045 A new H3 is developed for 2040 - 2060 H2 for 2023-2033 H2 H2 for 2030- 2015 - 2025 2040 H1 H1 H1 2013 - 2018 - 2028 - 2015 2020 2030 TIME
- 10. CROSS INDUSTRIAL DIFFICULTIES 8 New to the world Horizon 3 PRODUCT LIFECYCLE New to the company New to the segment Horizon 2 Improved product Horizon 1 INNOVATION
- 11. CROSS INDUSTRIAL DIFFICULTIES 9 Discussion Hub BREAKTHROUGH ADJACENT Strategic innovation process INCREMENTAL Business development process Product development process/marketing process
- 12. CONCLUSION 10 FUNCTIONAL LEADERSHIP In a multinational industry. • An explicitly defined innovation process with well defined communication channels. • Incorporation of Designers and non-Designers into the roles of Design as ‘creators’, ‘connectors’, ‘explorers’. • Design directly relates to brand equity. • Competency development across all horizons of growth and the role of the leader to incorporate competency identification.
- 13. DEFINED PROCESS AT PHILIPS DESIGN 11 Review & plan VC development Value contribution development (Process at RD&I level) DESIGN VALUE FUTURE PERSPECTIVE THEME RESEARCH CONTRIBUTION RD&I Transfer Operational Plan & Communicate SERVICE & COMPETENCE AND COMPETENCY DESIGN VALUE OUTLOOK KNOWLEDGE DEPLOYMENT DEVELOPMENT CONTRIBUTION APPLICATION PROBE EXPERIMENTS External Sectors Sources BUSNINESS CULTURAL DEVELOPMENT Incubators PROGRAM BOARD Sectors
- 14. DEFINED PROCESS AT PHILIPS DESIGN 12 PRESENTLY Linear Innovation strategy PROPOSED Process People Culture Circular Innovation Strategy
- 15. PROPOSED PROCESS 13 Theme Research 1 - OUTLOOK 2 - PROBE 3 4 Design Value Contribution 3 - COMPETENCE AND KNOWLEDGE Future Perspective DEVELOPMENT 4 - APPLICATION 2 5 EXPERIMENTS 5 - DESIGN VALUE CONTRIBUTION 1 6 6 - DESIGN VALUE COMMUNICATION 7 – REFLECTION & 7 DEPLOYEMENT Reflection and modification
- 16. PROPOSED PROCESS14 CONTEXUAL INSIGHTS FROM SCANNING AND FORESIGHT OUTSIDE IN IDEAS 1 - OUTLOOK IDEAS GENERATED WITHIN THE TEAM Discussion Hub 2 - PROBE PHILIPS INNOVATION BOARD BUSINESS UNITS SECTORS WEAK SIGNALS
- 17. SUMMARY 15 DESIGN THINKING EMERGING & BUSINESS DESIGN RESEARCH BRIDGE CORE BUSINESS BRIDGE: - New strategies for Spin offs. - Other Innovation Types. - New ways of working. BUSINESS MODEL DESIGN - Managing people. - Social innovation. PROCESS Resources Knowledge Competencies (Past research, IP, Skills and practices)
- 18. Thank You!
Notes de l'éditeur
- Sneak peek of my methods…After completing the internship I collected literature that supported the study. The most correlating literature was found with ‘Roberto Verganti’ and his theory of Design driven innovation. All related literature was collected and was validated with a 3rd party expert. Next step was taken to explore companies, where I got accepted in 3 industrial conference and I was allowed to take data from them as well as interview the selected presenters individually. After exploring companies I triangulated it again with an expert for validation and insight. I analysed data through complex manual coding. As you can see every step fed into the case study and the work done at Philips Design has gone through a number of exciting dissection since then.
- I would like to give a summary of the companies that I was able to interview and study through mini case studies. The three important ones with most valid data for the research chosen were Daimler, Airbus and Nokia.Daimler because of its involvement with Design in consumer research since the beginning. Their consumer research process matches with Philips Design Scoping framework and Very innovative ways of leading an idea to success. Airbus because of using design at a minimal and balancing 2 parallel innovation processes.Nokia for being very similar to Philips Design and Philips and because of their failure in respect to its competitors and its future strategies.
- Here is the scenario I saw at Philips Design in 2009. We are all aware of the 4/4 matrix, and how the three horizons coincide with each other and have well defined boundaries, and all product innovation works along these boundaries. If we place the gartner’s hype cycle over the matrix, we can clearly see that horizon 1 provides technological triggers, Horizon 2 goes through a phase of disillusionment and the business ventures and spinoffs, open innovation strategy, new ways of working, ventures, incubation etc help it gain and achieve plataeu of productivity in horizon 3 where it evolves as emerging business.
- Now lest keep an eye on the design scenario, in Horizon 1, incremental innovation there are traditional designers, merketeers working to defend the core businesses through the product innovation process. In horizon two we have individuals with the skills and competencies of connecting different scenarios and enabling a technology, product or idea to gain value and become worthy of a market. In horizon three, breakthrough innovation, individuals are ‘exploration’ experts who look into future scenarios and give valuable options for maintaining the plateau of growth and find emerging growth for the future.
- 1 of the main problems in the present scenario is that we forget that ideas can come from any of the three horizons, It is wrong to put Gartner's hype cycle assuming that the technological trigger will happen only at the incremental innovation or at horizon 1. Predominantly in horizon three, ideas are generated for the future and there might also be technological trigger for new products, hence making another loop of the hype cycle.
- Another problem is related to shifting of ideas in terms of time and visibility within the horizons. Individuals working in horizon 1 are involved in product innovation from present to 2 years from now. Horizon 2 is from 2 – 10 years gap and Horizon 3 has ideas for the future approximately 10 – 20 years from now. As we move in time Horizon 1 products either remain in horizon one or disappear due to decline in market or change in market needs, Horizon 2 products move to horizon 1, and horizon 3 products move to horizon 2 giving rise to a new horizon 3. This cycle continues in a companies life cycle. Another question how do you place the competencies and individual skills contained with the shifting horizons?Another question is how the breakthroughs from competitors would affect the horizon change within a corporation?
- The above problems are not yours alone. All industries are struggling with it. The consensus that I reached on exploring the options and through literature was to connect the three horizons, and enable ideas move through the horizons. Instead of a strategy that allows ideas to move up and become a success and reach plateau of productivity or a strategy that trickles down ideas from horizon three to channels below why not enable a strategy that collects ideas and distributes it according to criterion defined by the business channels? I would like to highlight here that Ericsson is involved in a process where they collect ideas across there business units, sectors in an internal forum and innovation managers annually select ideas and collate them to form new business ventures. They have pre defined themes to stream line ideas, and it’s a global venture supported by their CEO.Daimler has a way to push ideas generated in their research center into the business sector and into production through 4 channels. These channels are not rules to get ideas in, but are rules to keep redundant ideas out leading to a clean process of enriching the products and insights along with the other teams before real production.
- The difficulty across industry is ‘how’ do we connect all three horizons together. ‘WHY’ is it necessary? And when should horizons take charge? In simpler terms how can the tacit knowledge generated in these horizons in shape of delicate ideas can be pushed into the real business. The real business push comes in horizon 2 with its rules on business expansion, new market acquirement, new segment development, spin offs, incubation etc. I propose a discussion hub in order to channel the ideas. Now lets c how the research has benefitted Philips Design process.
- This is a graphical representation of the process that I mapped in 2009. I am sure the process must have changed and evolved and it would be interesting to know the changes as well. The problem I saw with the process based on the previous slides and my research was :Retaining of ideas and developing them for the market at the right time.Communicating the value of RD&I process to the wider team within Philips Design and beyond.No Reflective cycle.
- Presently the innovation strategy is mostly linear with excessive debate and focus on processes and tools. And less on engagement of the right people, enriching culture to support the strategy and also the process.My theory is that innovation process has to be cyclical so that it can move in circles across time lines and protect ideas.
- To solve those three problems I provide three solutions.In order to enable a healthy debate there should be a discussion hub in line with the cycle of future perspective. The discussion hub enables all explorations to be discussed with the wider audience. This has been tried before within the process itself but it has not worked out because of communication issues. This discussion hub is a tool that enables for ideas to be visible without being lost in the tedious process, debates and discussions in the after stages. Presently ideas are in the personal files of individuals or within smaller teams. These ideas need to be put out to the RD&I team for enrichment. This circle a process that never stops. Ideas will be generated and debated throughout irrespective of what stage the strategic value proposition process is in. Fr special consultations individuals could be invited from sectors, Business units for a boomerang session.Stage 6 – Design value communication – It is very clear that the value of Design is generated but not communicated to the wider audience within the company. The introduction of value communication as a wider recognized step in the value proposition process will help in generating awareness, and creating importance for the role of Design within the company. This should not be confused for the sub process, ‘Knowledge deployment’. The purpose of this step is merely to make Design value generation a visible phenomenon in the Philips Design community.Stage 7 – Reflection and modification – every process changes and it must. Hence, reflection and modification is an important part of the process. I cannot stress more on the importance on explicit process definition for the purpose of knowing where you are, organizing what steps are to be taken next etc. Instead of fearing the rules the process is to be used as a guide to achieve the goals throughout the cycle and embrace new ways of working as you move forward. The reflection and modification step would enable the team and the program manager to update the process for the new cycle.
- To solve those three problems I provide three solutions.In order to enable a healthy debate there should be a discussion hub in line with the cycle of future perspective. The discussion hub enables all explorations to be discussed with the wider audience. This has been tried before within the process itself but it has not worked out because of communication issues. This discussion hub is a tool that enables for ideas to be visible without being lost in the tedious process, debates and discussions in the after stages. Presently ideas are in the personal files of individuals or within smaller teams. These ideas need to be put out to the RD&I team for enrichment. This circle a process that never stops. Ideas will be generated and debated throughout irrespective of what stage the strategic value proposition process is in. Fr special consultations individuals could be invited from sectors, Business units for a boomerang session.Stage 6 – Design value communication – It is very clear that the value of Design is generated but not communicated to the wider audience within the company. The introduction of value communication as a wider recognized step in the value proposition process will help in generating awareness, and creating importance for the role of Design within the company. This should not be confused for the sub process, ‘Knowledge deployment’. The purpose of this step is merely to make Design value generation a visible phenomenon in the Philips Design community.Stage 7 – Reflection and modification – every process changes and it must. Hence, reflection and modification is an important part of the process. I cannot stress more on the importance on explicit process definition for the purpose of knowing where you are, organizing what steps are to be taken next etc. Instead of fearing the rules the process is to be used as a guide to achieve the goals throughout the cycle and embrace new ways of working as you move forward. The reflection and modification step would enable the team and the program manager to update the process for the new cycle.
- To solve those three problems I provide three solutions.In order to enable a healthy debate there should be a discussion hub in line with the cycle of future perspective. The discussion hub enables all explorations to be discussed with the wider audience. This has been tried before within the process itself but it has not worked out because of communication issues. This discussion hub is a tool that enables for ideas to be visible without being lost in the tedious process, debates and discussions in the after stages. Presently ideas are in the personal files of individuals or within smaller teams. These ideas need to be put out to the RD&I team for enrichment. This circle a process that never stops. Ideas will be generated and debated throughout irrespective of what stage the strategic value proposition process is in. Fr special consultations individuals could be invited from sectors, Business units for a boomerang session.Stage 6 – Design value communication – It is very clear that the value of Design is generated but not communicated to the wider audience within the company. The introduction of value communication as a wider recognized step in the value proposition process will help in generating awareness, and creating importance for the role of Design within the company. This should not be confused for the sub process, ‘Knowledge deployment’. The purpose of this step is merely to make Design value generation a visible phenomenon in the Philips Design community.Stage 7 – Reflection and modification – every process changes and it must. Hence, reflection and modification is an important part of the process. I cannot stress more on the importance on explicit process definition for the purpose of knowing where you are, organizing what steps are to be taken next etc. Instead of fearing the rules the process is to be used as a guide to achieve the goals throughout the cycle and embrace new ways of working as you move forward. The reflection and modification step would enable the team and the program manager to update the process for the new cycle.