{"id":380,"date":"2011-11-09T09:56:50","date_gmt":"2011-11-09T01:56:50","guid":{"rendered":"http:\/\/www.hkkms.hk\/?p=380"},"modified":"2013-04-18T23:47:33","modified_gmt":"2013-04-18T15:47:33","slug":"creating_knowledge","status":"publish","type":"post","link":"http:\/\/www.hkkms.hk\/index.php\/2011\/11\/creating_knowledge\/","title":{"rendered":"Creating valuable knowledge out of ignorance"},"content":{"rendered":"<div>\n<p>At the November meeting, Eric Spain, the Director of Innovation Insight, Hong Kong, followed up September\u2019s \u2018<a title=\"Permalink to Looking behind the curtain: The impact of ignorance in German hospitals\" href=\"..\/index.php\/2011\/08\/looking-behind-the-curtain-the-impact-of-ignorance-in-german-hospitals\/\" target=\"_blank\">Looking behind the curtain: The impact of ignorance in German hospitals<\/a>\u2019 with the way valuable knowledge can be created \u2018between the ears\u2019 using a systematic processes. \u00a0He started with his own innovation: a map, for everyone present, of the story that he was to tell about the why, when, where, who and how of &#8216;The Issue&#8217;.<br \/>\n<a href=\"http:\/\/www.hkkms.hk\/wp-content\/uploads\/2011\/12\/The_map_of_story_of_innovation.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-393\" title=\"The map of story of innovation\" src=\"http:\/\/www.hkkms.hk\/wp-content\/uploads\/2011\/12\/The_map_of_story_of_innovation.png\" alt=\"\" width=\"500\" height=\"391\" \/><\/a><\/p>\n<p>Eric then asked a simple but rather pertinent question: what is innovation?<\/p>\n<p><!--more-->His answer was: \u2018Innovation is any change that produces something new of value\u2019. Simple enough, perhaps, but something to think about. The important words here are \u2018any\u2019, \u2018change\u2019 and the idea of producing something \u2018of value\u2019. We are not here looking for change just for \u2018the sake of change\u2019: it must be something that is perceived as being \u2018of value\u2019. If it does not produce value, it is not an innovation!<\/p>\n<\/div>\n<div>\n<p>Eric emphasised that the notion of \u2018innovation and technology\u2019 is a very big mistake: all sectors of life need to innovate.\u00a0 He agreed with a well-known quote from Peter Drucker: \u2018Innovation is the specific instrument of entrepreneurship \u2026 the act that endows resources with a new capacity to create wealth.\u2019<\/p>\n<\/div>\n<div>\n<p>The most important question in all this becomes, however, how to implement innovation and how to encourage it within an organisation or a company. At the moment, the ability to innovate is poor:<\/p>\n<\/div>\n<ul>\n<li>Over 80 per cent of attempted innovations fail<\/li>\n<li>Over 90 per cent that do reach the market will fail<\/li>\n<li>Over 98 per cent of university-initiated technology innovations fail.<\/li>\n<li>Over 90 per cent of innovations are delivered late, over-budget or to a lower quality than was originally planned<\/li>\n<li>Over 90 per cent of collaborative innovations fail<\/li>\n<\/ul>\n<p>This can only be improved by a systematic approach, he said.\u00a0\u00a0 He is himself an expert in such a system developed many years ago by a Russian engineer, Genrich Altshuller (1926 \u2013 1998).\u00a0 By any reckoning, Altshuller was a fascinating man and his story certainly enthralled those present. He was originally an engineer who worked in the \u2018Inventions Inspection\u2019 department of Caspian Sea Flotilla of the Soviet Navy. He was in charge of looking after \u2018inventiveness\u2019 and had to document what people were doing for the patent office. His years of study lead him to create a system to explain how inventiveness works.<\/p>\n<div>\n<p>He made the mistake of writing to Stalin saying that engineers could do better and was sent to Siberia for a few years until Stalin\u2019s death, after which he was \u2018rehabilitated\u2019. Altshuller\u2019s methodology came to be called TRIZ \u2013 which is the Russian acronym for \u2018The Theory of inventive Problem Solving\u2019. Unknown in the West until the 1980s.<\/p>\n<\/div>\n<div>\n<p>TRIZ is based on a systematic approach and a disciplined methodology that provides clues that provoke thinking to where a solution to a problem has been found by past inventors in any field \u2013 not just your particular specialisation.\u00a0\u00a0 Although we cannot give extended details here, the idea is that is not just helter-skelter and somehow utterly disorganised and dependent on special geniuses whose behaviour nobody understands. No, Altshuller discovered that there were certain characteristics of all innovation and systematised that. Eventually, TRIZ has become useful in more areas than just products and patents. Darrel Mann of Systematic Innovation in the UK, has extended TRIZ to include services, management, software, marketing and other areas.<\/p>\n<\/div>\n<div>\n<p>Eric showed a slide of companies such as Samsung, Procter &amp; Gamble, Rolls-Royce and Dow Chemical who have all used the principles of TRIZ to great benefit. (Samsung recorded $92 million of production cost savings and in 2009, the Korean giant were second only to IBM in the number of patents they applied for. Procter &amp; Gamble trained 3,500 people and the rate of new patents has doubled in five years. Rolls-Royce has doubled the inventiveness in two years. Dow Chemical invested $4billion in a new business created with TRIZ. \u00a0However, a small company of six people, using TRIZ, earned royalties of US12M form the design of a better pizza box &#8211; that kept it crisp in transit!<\/p>\n<\/div>\n<div>\n<p>It is also important, Eric said, to realise that money spent on R&amp;D is not as important as many think. A study of 1000 companies by Booze-Allen had shown that there is absolutely no correlation between any business bottom line and the amount spent on R&amp;D.\u00a0 Apple, for example, considered by many to be one of the most innovative companies in the world today, spends far less on R&amp;D than the industry average.\u00a0 R&amp;D is only effective when the company \u2018DNA\u2019 provides the necessary framework (with time and money) for systematic thinking and devlopment.<\/p>\n<\/div>\n<div>\n<p>The progress of so many things in life follows the \u2018Sigmoid Curve\u2019 (\u2018S\u2019Curve) of beginnings, growth and demise. \u00a0 An enterprise focused only on growth and not the challenge of others making breakthrough innovations, will reach the top of the \u2018S\u201d too late. The happy name for this is \u2018Disruptive Technology\u2019!<\/p>\n<\/div>\n<div>\n<p>The general feeling of all those present was that the Eric\u2019s coverage from what is and what is not innovation through to a way of learning how to do it, was something of a revelation and little known in Hong Kong.<\/p>\n<\/div>\n<p>The subject interests all, but it obviously needs a great deal more study. The idea that it could be tied to a proven methodology was intriguing. It is certain that this will not be the end of any talk about Systematic Innovation.\u00a0 It is likely to occupy many minds for a while to come.<\/p>\n<p>A basic view of TRIZ can be read on Wikipedia:<br \/>\n<a href=\"http:\/\/en.wikipedia.org\/wiki\/TRIZ\">http:\/\/en.wikipedia.org\/wiki\/TRIZ<\/a><\/p>\n<p>Innovation Insight<br \/>\n<a href=\"http:\/\/www.innovasight.com\">www.innovasight.com<\/a><\/p>\n<p>Darrell Mann Systematic Innovation.(books and software)<br \/>\n<a href=\"http:\/\/www.systematic-innovation.com\/\">http:\/\/www.systematic-innovation.com\/<\/a><\/p>\n<p>The Altshuller Institute\u00a0 (books):<br \/>\n<a href=\"http:\/\/www.aitriz.org\/\">http:\/\/www.aitriz.org\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>At the November meeting, Eric Spain, the Director of Innovation Insight, Hong Kong, followed up September\u2019s \u2018Looking behind the curtain: The impact of ignorance in German hospitals\u2019 with the way valuable knowledge can be created \u2018between the ears\u2019 using a systematic processes. \u00a0He started with his own innovation: a map, for everyone present, of the <a href='http:\/\/www.hkkms.hk\/index.php\/2011\/11\/creating_knowledge\/' class='excerpt-more'>[&#8230;]<\/a><\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[30,21,44,47],"class_list":["post-380","post","type-post","status-publish","format-standard","hentry","category-commentary","tag-ignorance-management","tag-innovation","tag-systematic-innovation","tag-triz","category-28-id","post-seq-1","post-parity-odd","meta-position-corners","fix"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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