Research shows that most CEOs, regardless of industry, consider innovation critical to success. It also shows that in the end, companies that excel at “breakthrough” innovations in products or processes outperform competitors that focus on incremental improvements. Yet over the past 15 years, the importance of innovation for both top-and bottom-line performance of many companies has decreased. The focus of most projects has shifted dramatically from breakthrough-type innovations to incremental improvements and the share of new products growth in total company sales has dropped.
U.S. companies know they must find new ways to grow the business. The challenge today for many U.S. companies is to be innovative, but at the same time, continue to apply lean to eliminate non-value wastes, so they are using their time, resources and money wisely. Companies must avoid developing products or processes that either have no market or may have too much competition to be viable. Using the Lean principles, companies can eliminate wastes in developing their innovations, listen to the voice of the customer (VOC) and create speed to the market.
Lean will remain a constant business practice, but U.S. companies must stay keenly aware that they cannot cost reduce their way to success, they must continue to re-invent themselves through product or process innovations that the market values. Companies must be serious about creating growth through innovations, and also serious about using lean methods that effectively utilize the company's resources to a maximum benefit, to significantly reduce time to market. Below are three Lean methods for identifying new innovations and exploit new business opportunities:
Step 1: Involve customers in your ideation. Form a customer idea advisory board. This will ensure the Voice of The Customer is valued.
Step 2: Involve customers in new ways. Use methods such as the Lean/Kaizen 3-P Process to understand the customer in non-traditional ways.
Step 3: Benchmark ideation techniques to determine the best ones. Teach the Lean principles of identifying the 7 Wastes to establish methods that encourage continuous improvements in ways to bring future innovation needs to market faster.
The Connecticut SBIR Office, an initiative of the Connecticut Center for Advanced Technology, Inc. (CCAT), plans to award 40 idea assessment reports to the best and most innovative technology ideas that have commercialization potential, to Connecticut entrepreneurs, small high-tech businesses and innovative small manufacturers. Winners of the assessments will be announced at the June 20-21 SBIR/NALI conference, “The Future of Manufacturing is INNOVATION”.
Leanovations, LLC is a proud sponsor of the June 20-21 SBIR/NALI conference, “The Future of Manufacturing is INNOVATION” at the Pratt & Whitney Air Museum.
Leanovations is a consulting group with extensive international experience, who train and coach companies to compete worldwide with lean manufacturing techniques and to win profitable growth through innovations. We focus on developing a partnership with our clients and tailor our approach to meet their specific cultural, organizational and performance needs.
To learn more about Leanovations go to http://www.leanovations.com/
Thursday, June 21, 2007
Lean Leadership Criteria
A Lean Leader is business savvy and understands how to make money and grow a business. They understand the strengths and weaknesses of their business’s activities. Lean leaders teach simple techniques to solve problems and identify opportunities, how to sort out the complexities and variables in the business to achieve results. Lean Leaders are outstanding teachers, who:
1. Challenges The Status Quo
2. Creates A Compelling Vision
3. Establishes Shared Values
4. Enables Others To Act
5. Models The Way
6. Encourages Through Praise
Lean Leaders do these six things constantly in large and small ways. Cumulatively, these actions change attitudes, responses and methodologies within the organization. Lean Leaders are visionaries. They want to transform, not merely maintain. Lean Leaders challenge status quo, and see opportunity everywhere and believe that sacred cows make the best hamburger. They revive failing companies, develop new products and revolutionize processes.
Lean Leaders have a Vision about what could be and should be, and envisions an uplifting future. They appeal to values, interests, hopes and dreams. A Lean Leaders vision is simple and they never lose an opportunity to share it. They bring it to life with metaphors, stories, symbols, slogans and examples.
Lean Leaders share values to build strong teams. Lean Leaders verbalize organizational and personal values that bind together the organization and develop a culture for change.
Lean Leaders give away power and enable others to act. The Lean Leader reduces perceived risk by focusing on success rather than failure and they rarely will second-guess. They provide necessary support and resources. Lean Leaders develop competence through teaching and training and understand that competency leads to pride and pride leads to superior performance.
Lean Leaders demonstrate their vision through action, they go out and “Just Do It”. They act as a snowplow and clear a path for others to succeed.
Lean Leaders do not assume individuals, teams or their organization knows when they have done well. Lean Leaders understand the need for encouragement through praise. Praise can be as simple as a handshake, a "Job Well Done", or to make the praise formal in a public recognition.
At Leanovations, LLC we believe developing solid Lean Leadership is the most important factor in a successful Lean transformation.
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Leanovations is a consulting group with extensive international experience, who train and coach companies to compete worldwide with lean manufacturing techniques and to win profitable growth through innovations. We focus on developing a partnership with our clients and tailor our approach to meet their specific cultural, organizational and performance needs.
To Learn more about Leanovations go to http://www.leanovations.com/
1. Challenges The Status Quo
2. Creates A Compelling Vision
3. Establishes Shared Values
4. Enables Others To Act
5. Models The Way
6. Encourages Through Praise
Lean Leaders do these six things constantly in large and small ways. Cumulatively, these actions change attitudes, responses and methodologies within the organization. Lean Leaders are visionaries. They want to transform, not merely maintain. Lean Leaders challenge status quo, and see opportunity everywhere and believe that sacred cows make the best hamburger. They revive failing companies, develop new products and revolutionize processes.
Lean Leaders have a Vision about what could be and should be, and envisions an uplifting future. They appeal to values, interests, hopes and dreams. A Lean Leaders vision is simple and they never lose an opportunity to share it. They bring it to life with metaphors, stories, symbols, slogans and examples.
Lean Leaders share values to build strong teams. Lean Leaders verbalize organizational and personal values that bind together the organization and develop a culture for change.
Lean Leaders give away power and enable others to act. The Lean Leader reduces perceived risk by focusing on success rather than failure and they rarely will second-guess. They provide necessary support and resources. Lean Leaders develop competence through teaching and training and understand that competency leads to pride and pride leads to superior performance.
Lean Leaders demonstrate their vision through action, they go out and “Just Do It”. They act as a snowplow and clear a path for others to succeed.
Lean Leaders do not assume individuals, teams or their organization knows when they have done well. Lean Leaders understand the need for encouragement through praise. Praise can be as simple as a handshake, a "Job Well Done", or to make the praise formal in a public recognition.
At Leanovations, LLC we believe developing solid Lean Leadership is the most important factor in a successful Lean transformation.
----------------------------------------------------------------------------
Leanovations is a consulting group with extensive international experience, who train and coach companies to compete worldwide with lean manufacturing techniques and to win profitable growth through innovations. We focus on developing a partnership with our clients and tailor our approach to meet their specific cultural, organizational and performance needs.
To Learn more about Leanovations go to http://www.leanovations.com/
China Surpasses U.S. as Exporter
Recently I read an article on China surpassing the United States as the world’s second-largest exporter last year. As I read this article, I kept thinking about my trips to China and India and how much manufacturing growth I witnessed in both countries. I would like to share some facts on India and China as global competition continues to heat-up, such as; one in three people worldwide lives in either China, the largest communist country, or India, the largest democracy.
Export growth from China grew 27% last year, helping China finish behind only Germany in total exports. At the current growth rates, China will over take Germany as the world’s biggest exporter in 2008. China's emergence as a world economic power follows years of expansion, with growth of 9% or more the norm.
India has also seen dramatic growth, of more than 7% a year, as it is the recipient of large sums of foreign investment. India’s total export mostly manufactured goods, are rising at a 26% annual clip. The manufacturing sector in India is growing at 9.4 % annually. India is going all out to lure foreign manufacturers to its shores. Special economic zones that spearheaded China’s export-led industrialization are now spreading across India.
India’s city of Chennai developed 1,400 acres as a special economic zone and 2,000 more acres are under development. 30 manufacturers have already set up factories to take advantage of tax breaks and efficient infrastructure. Companies like Hyundai, Infosys, BMW and Madras Engineering are in the process of building factories. By 2009, this special economic zone expects to employ over 50,000 people. Chennai because of its growing reputation as a manufacturing hub, is being referred to as the Detroit of India.
General Motors recently announced plans to ramp up production and sales in India, one of the world's fastest-growing auto markets, the company introduced the Chevy Spark - a mini car - to Indian customers. General Motors Corp. is also scaling up procurement of low-cost auto components from India to lower costs at its plants in other parts of the world.
India wants to imitate China's low-cost manufacturing success. Manufacturing is proving to be the next big growth industry for India. I have personally witness this growth first hand in both China and India and know U.S. manufacturing companies must continue to pursue Lean Manufacturing to compete.
Fred Shamburg
President, Leanovations
Contact Leanovations at:
www.leanovations.com
Leanvoations is a consulting group with extensive international experience, who train and coach companies to compete worldwide with lean manufacturing techniques and to win profitable growth through innovations. We focus on developing a partnership with our clients and tailor our approach to meet their specific cultural, organizational and performance needs.
Export growth from China grew 27% last year, helping China finish behind only Germany in total exports. At the current growth rates, China will over take Germany as the world’s biggest exporter in 2008. China's emergence as a world economic power follows years of expansion, with growth of 9% or more the norm.
India has also seen dramatic growth, of more than 7% a year, as it is the recipient of large sums of foreign investment. India’s total export mostly manufactured goods, are rising at a 26% annual clip. The manufacturing sector in India is growing at 9.4 % annually. India is going all out to lure foreign manufacturers to its shores. Special economic zones that spearheaded China’s export-led industrialization are now spreading across India.
India’s city of Chennai developed 1,400 acres as a special economic zone and 2,000 more acres are under development. 30 manufacturers have already set up factories to take advantage of tax breaks and efficient infrastructure. Companies like Hyundai, Infosys, BMW and Madras Engineering are in the process of building factories. By 2009, this special economic zone expects to employ over 50,000 people. Chennai because of its growing reputation as a manufacturing hub, is being referred to as the Detroit of India.
General Motors recently announced plans to ramp up production and sales in India, one of the world's fastest-growing auto markets, the company introduced the Chevy Spark - a mini car - to Indian customers. General Motors Corp. is also scaling up procurement of low-cost auto components from India to lower costs at its plants in other parts of the world.
India wants to imitate China's low-cost manufacturing success. Manufacturing is proving to be the next big growth industry for India. I have personally witness this growth first hand in both China and India and know U.S. manufacturing companies must continue to pursue Lean Manufacturing to compete.
Fred Shamburg
President, Leanovations
Contact Leanovations at:
www.leanovations.com
Leanvoations is a consulting group with extensive international experience, who train and coach companies to compete worldwide with lean manufacturing techniques and to win profitable growth through innovations. We focus on developing a partnership with our clients and tailor our approach to meet their specific cultural, organizational and performance needs.
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