Download - ICIM2015 Keynote - Prof Ahmad Rahman Songip
Break the Pattern - The Science of Value Creations
By
Ahmad Rahman Songip Professor in Innovation Management
& Consultant in Breaking Pattern Universiti Teknologi Malaysia
Kuala Lumpur [email protected]
Malaysia 13th ICIM 2016
Finland ICIM 2014
China ICIM 2010,
2015
Brazil ICIM 2009,
2013
Japan ICIM 2007,
2011 Netherlands ICIM 2008,
2012
UTM Kuala Lumpur, 60 km from KL International Airport
UTM Kuala Lumpur
UTM Kuala Lumpur, 5 km from
Petronas Twin Towers
Dow Jones (USA)
Nikkei (Japan)
US was losing its supremacy as the world’s technology &
economy superpower
How do you explain this phenomena?
Breaking of Patterns
Dow Jones
Nikkei
US was losing its supremacy as the world’s
technology & economy superpower
US has regained its supremacy as the world’s technology &
economy superpower
Why Management of Technology & Innovation?
What was the secret?
Dow Jones Industrial Average vs. Nikkei
Dow Jones
Nikkei
US was losing its supremacy as the world’s technology & economy
superpower
Universities in the US started to teach Management of Technology and Innovation
during late 1980s and early 90s (Burgelman, Christensen & Wheelwright, 2009)
Why Management of Technology & Innovation? US has regained its supremacy
as the world’s technology & economy superpower
Nobel winner sued bosses because he got only ¥20,000 (US$ 180) bonus for his invention Published: 8 October 2014
Japanese-born US citizen Shuji Nakamura holds a blue LED light at a news conference after winning the 2014 Nobel Prize for Physics, at the University of California Santa Barbara in Isla Vista, California. An American and two Japanese scientists won the 2014 Nobel Prize for Physics on Tuesday for inventing a new energy-efficient and environment-friendly light source, leading to the creation of modern LED light bulbs. – Reuters pic, October 8, 2014.
Consequences for not properly Managing Technology & Innovation…
Q: Who is supposed to manage Technology &
Innovation?
He sued for US$180 million, but got only
US$ 8 million
A = R x S A R
S =
Law of Value Creation
V = I x R
A = Attitude ! Cause R = Resistance ! Internal S = Success ! Outcomes
A = ATTITUDE
I find out what the world needs. When I have finally decided that a result is worth getting, I go ahead and try to invent it and make trial
after trial until it comes. ― Thomas A. Edison
There's a way to do it better - find it.
― Thomas A. Edison
R = RESISTANCE Our greatest weakness lies in
giving up. The most certain way to succeed is always to try just
one more time. ― Thomas A. Edison
I have not failed. I've just found 10,000 ways that won't work.
― Thomas A. Edison
Skills for Success
Imagination is more important than knowledge...
― A. Einstein
To invent, you need a good imagination and a pile of junk.
― Thomas A. Edison
Imagination & Thinking Skills: • System Thinking • Scenario Planning • Mind mapping • Brainstorming • Random Association • Analogy • TRIZ • BOS
5% of the people think;
10% of the people think they think; and 85% would rather die than think.
― Thomas A. Edison
The most necessary task of civilization is to teach people how
to think. It should be the primary purpose of our public schools.
― Thomas A. Edison
Henry Ford
“Thinking is the hardest work there is, which is the probable reason why so few engaged in it”
Henry Ford
What is Creativity & Innovation?
Creativity is the generation of new ideas
Innovation is the process to transform the resources of an enterprise through the creativity of people into new resources and wealth Paul Schumann
Data on Global Innovation, Creativity & Happiness Indices
[1] Global Innovation Index 2014. Retrieved July 13, 2014 from http://www.globalinnovationindex.org/content.aspx?page=gii-full-report-2013; [2] Global Creativity Index, Jan 2011. Retrieved July 13, 2014 from http://martinprosperity.org/2011/10/01/creativity-and-prosperity-the-global-creativity-index/; [3] World Happiness Record 2013. Retrieved July 13, 2014 from http://unsdsn.org/wp-content/uploads/2014/02/WorldHappinessReport2013_online.pdf
Nether-lands USA Finland Japan Malaysia China Brazil
Innovation Index [1] 61.14 60.31 59.51 52.23 46.92 44.66 36.33
Creativity Index [2] 0.854 0.902 0.894 0.541 0.439 0.327 0.455
Happiness Index [3] 7.51 7.08 7.39 6.06 5.76 4.98 6.85
y = 33.844x + 30.254 R² = 0.77501
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00
0 0.2 0.4 0.6 0.8 1 Creativity Index
Japan
USA
Netherlands
Finland
Malaysia
Brazil
China
Creativity Vs. Innovation Levels In
nova
tion
Inde
x
NASDAQ
S&P
NIKKEI KLSE
DOW JONES
The Market Performances are Correlated to Creativity and Innovation Levels
y = 33.844x + 30.254 R² = 0.77501
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
0 0.2 0.4 0.6 0.8 1
Inno
vatio
n In
dex
Creativity Index
Japan
USA
Netherlands
Finland
Malaysia
Brazil
China
Innovation = (m x Creativity) + Constant since Innovation = 0, as Creativity = 0, then Innovation = m x Creativity where m = Transformation Effort
I = CTE
Innovation = Creativity x Transformation Effort
Nether-lands USA Finland Japan Malaysia China Brazil
Innovation Index 61.14 60.31 59.51 52.23 46.92 44.66 36.33
Creativity Index 0.854 0.902 0.894 0.541 0.439 0.327 0.455
Transformation Effort 71.59 66.86 66.57 96.54 106.88 136.57 79.85
Innovation = Creativity x Transformation Effort
“Genius is… 1% inspiration, 99% perspiration.” ― Thomas A. Edison
y = -‐90.779x + 146.48 R² = 0.73948
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
0 0.2 0.4 0.6 0.8 1
Tran
sforma:
on Effo
rt
Crea:vity Index
USA
Japan
Malaysia Netherlands
Finland
Brazil
China I = CTE
Innovation = Creativity x Transformation Effort
y = 3.3266x + 4.4224 R² = 0.74936
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
0 0.2 0.4 0.6 0.8 1
Happ
iness Ind
ex
Crea:vity Index
Who are Happier?
USA
Japan
Malaysia
Netherlands
Finland Brazil
China
y = -‐0.0355x + 9.686 R² = 0.94978
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00
0.00 50.00 100.00 150.00
Happ
ines In
dex
Transforma:on Effort
USA
Japan
Malaysia
Netherlands Finland
Brazil
China
Who are Happier?
Value Crea)on Accelera)on through Crea)vity & Innova)on Experiences
VACCINE ©
Innovation = Creativity x Transformation Effort
How to Operationalize this?
Facilitating organizations to create sustainable value creation system capabilities through accelerated, realistic &
systemic transformation program
input output
Creativity Value Creation
Transformation Effort
Innovation = Creativity x Transformation Effort
VACCINE Process
Kulim (M) Berhad – additional net profit of RM 30 million (US $ 10 million)
Petronas Methanol Labuan – cost saving of RM 15 million (US$ 5 million)
UMP, 2012 & 2014 " Cost saving of RM 10 mil (US$ 3.3 mil), 2012 " Additional revenue of RM 93mil/yr (US$ 31 mil), 2014
Results of VACCINE
VACCINE in Malaysian Public Work Department, 2014
Outstanding Projects Savings (RM)
1. Implementation of Building Conditions Assessment (BCA) as a Performance Tools for Enhancing Maintenance Management Process
7 Bil/year
2. Managing Loss and Expense due to Extension of Time 5.7 mil/year 3. Energy Audit System in JKR 3.8 mil/year 4. JKR Career Path Development 300K/year 5. Development of Succession Planning System in JKR 130K/year
20 Project Leaders
VACCINE Program Monthly Coaching
VACCINE Framework JKR wants to quantum leap its performance by solving critical issues along the value chain of its services
Middle Managers in the organization that have been identified as the future leaders
Stage 1
Stage 2
Stage 3
Final
24-36 months
Phase I Implementation
Phase II Phase III
Assess
Assessment Phase (3-5 months)
Stage 1
Phase I Phase II Phase III
Assess Stage 2
Stage 3
Final
As Is Strategy Canvas
Deliverables: 1. Gap Analysis 2. Prioritization of
Issues 3. List of Projects
3 Tiers of Noncustomer 6 Path
Framework
123456
ERRC Grid To Be Strategy Canvas
BUM/BEC
Tools to Assess Current Situation and Search for Creative Ideas at Organizational Level
Stage 3: Pilot Project Implementation
Implementation Phase
Phase II
Stage 1
Phase I Phase III
Assess Stage 2
Stage 3
Final
Stage 1: Detail Problem Analysis
Stage 2: Search for Creative Solution at Project Level
3 Tiers of Noncustomer
6 Path Framework
123456
ERRC Grid To Be Strategy Canvas BUM/BEC
Deliverables: • Value Creations • Masters Degree
Development of Innovation Culture
Total Projects = 20 Total Project Leaders = 20 pax Team Members = 5-7 pax/project Total Team Members = 100-140 pax
Stage 1
Phase I Phase III
Assess Stage 2
Stage 3
Final
Implementation
Phase II
Close Interaction between Top and Middle Managers
engagement
empowerment
recommendation
implementation
The Implementation Team
Champion
Champion Council
• Experts • Coaches Project Leaders
Sponsor
VACCINE Team
Program Manager
Transformation Management Office (TMO)
Team Members War Room
Stage 1
Phase I Phase II Phase III
Assess Stage 2
Stage 3
Final
Final Phase • Data Analysis • Final Project Presentation &
Exhibition to Organization-wide • Project Report writing
VACCINE Develops Leaders
Talent Management Program:
VACCINE = Apprentice for Leadership
• Take responsibility • Think outside-the-box • Able to manage projects • Have mental toughness • Make critical decision • Produce results
1. Break the Pattern is fundamental in value creations that is based on • Law of Value Creation, A = R x S or S = A/R • Law of Innovation, I = C x Te
2. Value Creations of countries depend on her Creativity and Innovation levels
3. ICIM member universities shall lead in ensuring an equitable growth of value creations & happiness through Global Collaboration in teaching, research and application of creativity, technology and innovation management
Conclusions
Prof. Dr. Ahmad Rahman Songip Professor in Innovation Management
Management of Technology Dept Malaysia-Japan International Institute of Technology
Universiti Teknologi Malaysia
Author Break the Pattern
The Science of Value Creation for Corporations
Consultant in Breaking Pattern Uni-Technologies Sdn Bhd
Universiti Teknologi Malaysia
Coach in Financial Independent Strong and Healthy (FISH); www.fish4wealth.com
[email protected], [email protected], +6017-6399457
Thank you…