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Innovation Dominante pour la création de valeur

Jeudi 16 mai 2013

Le podcast du débat :

Avec

Jay Lee, directeur de l’Institut de technologie industrielle avancée Jiao Tong University, Shanghai

Pour l’industrie d’aujourd’hui, l’innovation est tout sauf facultative. L’impact économique et social ainsi que la complexité technologique croissants de la conception des produits et des entreprises se sont accompagnés d’une augmentation des exigences en matière de gestion innovante des processus pour le développement de produits et de services. Les entreprises soucieuses de faire face à la concurrence mondiale doivent apprendre à employer une méthode systématique dans le développement d’une innovation et d’un modèle d’affaires centrés sur le client et permettant de dégager de la valeur ajoutée.

Jay Lee a utilisé son concept d’Innovation Dominante (L’Innovation Dominante est une idée originale du professeur Jay Lee (www.dominantinnovatio.com). Elle se compose de la matrice innovation qu’il a mise au point et des outils de cartographie application client/décalage pour une conception intégrée des systèmes d’innovation produits et services) afin de présenter des stratégies de gestion des connaissances au service du développement de l’innovation produit et entreprise.

Des exemples tirés de sociétés de calibre international ont servi à illustrer la manière dont se formulent les décalages entre le produit et les besoins invisibles des clients au moyen d’outils d’Innovation Dominante, parmi lesquels la carte relationnelle, la matrice innovation, la cartographie application/décalage et la méthode QFD. En outre, des exemples sont venus éclairer la façon dont des entreprises de calibre international et d’autres de petite et moyenne taille peuvent utiliser l’Innovation Dominante pour devenir des sociétés spécialisées dans la productivité innovante et les services intelligents.

DOMINANT INNOVATION FOR VALUE CREATION

Jay Lee, University of Cincinnati

Introduction
Innovation is no longer an option for today’s manufacturing industry due to the impact of globalization and the transformation of the world’s economy. Traditionally, manufacturing was defined as a process that converts raw materials into a physical or a functional product. To be competitive, companies focused on quality, costs and productivity. Recent products such as the iPhone or the iPad have changed the definition of manufacturing. They focus on innovation that allows customer-driven value creation, based on a collaborative innovation platform that allows users to develop boundary-free service needs. Such products are now redefining manufacturing as a process of making things happen – converting previously invisible needs to visible value.
In that context, the approach of dominant innovation involves a system and a set of tools designed to help create new products and services that can succeed in a changing competitive global market. It helps formulate gaps between a product and a customer’s invisible needs, using an innovation matrix and space mapping tools. It could help both major international companies and SMEs to transform themselves into innovative market leaders.

Apple’s Portable Media Dominant Innovation Strategy
The mobility business is concerned with portable mobility or customer-on-demand mobility. When I am in a particular area, I am looking for a restaurant in that area ; I am not interested in restaurants in other areas. I also want to know about restaurants now, and not later. On demand is therefore a key term here. It refers to where customers find themselves at a given point in time. Based on the outer sensors I am able to locate, analyse and go to the App Store. Developers are therefore developing apps through the Apple Store, and eventually delivering those apps to your phone. For every dollar transaction, Apple retains 30% and the developer obtains 70%. I have three students developing various apps today, and this is a very interesting area for innovation. However, it is not Apple that is doing the innovation in mobility ; that is what the developers are doing and there are over 500,000 apps in the Apple Store.

Nintendo Wii versus Microsoft Xbox Kinect
I imagine that many of you play Wii. Wii came out of the Gameboy concept and moved into a team-playing concept. It eventually developed into a smart entertainment system. In 2004 the Japanese government began being concerned about the country’s ageing society. Today, 25% of the Japanese population is above 65 years of age. In addition, Japanese homes are quite small with little room for exercise. The aim was therefore to create a family sports experience using a television as a virtual sports area. In order to have people move their arms, it was necessary to have something to hold.

Nintendo therefore designed a virtual sports platform that was connected to a television. The motion sensors used were developed by MEMS manufacturing companies such as ST Microelectronics. The original idea of creating such a function was extremely clever. However, creating a fun element meant going beyond sport. Wii focused on the motional arm which they patented. They did not, however, focus on other areas such as smart software customisation or on demand value.

In 2010, the Microsoft Xbox 360 Kinect was released, and it was no longer necessary to rely on arm movements ; the entire body could be used instead. This did not breach any Wii patents and, in 10 days, 1 million units were sold. This demonstrates that simply developing a product is not sufficient. It is necessary to have endless games that drive people’s excitement.
Wision Furniture, China

In China, the founder of a furniture company learnt a very important lesson. He developed a software tool for the design of furniture (chairs, tables, sofas, etc.). For seven years, his business was a failure. Four years ago, however, he started again. I saw him last week and his business has already exceeded revenues of $200 million in less than 5 years. He originally started by selling software to furniture designers. However, the furniture designers told him there was no need : they simply copied designs of other companies when they came out. His software was therefore of no use in China.

I asked him what his customers wanted. You may be aware that before 2000 most people in China lived in the apt complex or housing provided by either government or organizations. In the past 15 years, people have started to buy their own homes and they want to have a different feeling for those homes. They are not interested in furniture per se. What they are looking for is a living design, an experience. When you go to Ikea, you look at the displays, you check the details, and then you buy the item. You have no choice in designing your own space.

The director of Wision Furniture therefore developed software to design the feeling of the living space. He made available a customised feeling rather than customised furniture. How do you feel in the room : the colours, the lighting, the space, etc.? It is then possible to connect to other companies that make carpets, lighting, furniture, etc. He does not make the furniture himself but it is a part of his visualisation system.

In four or five years, his sales have grown to $200 million and he estimates that they will grow by a further 150% in the next three years. He has opened 500 stores in China in four years. All the furniture contained in his concept has a bar code that can be scanned. First, customers measure their homes or rooms (or they can have them measured by the company itself.) It is then possible to change the colours and styles of each room by simply clicking on items. This is therefore a visualisation tool that can be used before the customer buys their furniture. He then works with all the different furniture companies and customers are able to buy what they want through him.
Wision Furniture therefore moved from selling furniture to selling the feel of living. That involved a transformation of the company’s entire business.

Power Sleep Taiwan

The last example I will share with you is that of Power Sleep, a company in Taiwan. We all buy beds and the purpose of a mattress is to allow us to sleep well. It is all about the quality of sleep, and quality of sleep is more than just softness. It is about sleeping reality. The company is able to provide a physical measurement of how soft or hard your padding is. The company does not only sell a mattress ; it sells an entire sleeping experience based on personal parameters : snoring, turning, etc. Specialists then enter the picture to help improve the individual’s sleeping experience. The company therefore sells a sleeping service and not only a mattress.

The model used conceives of sleep quality as a function. This leads to value creation based on a bed that includes sensor materials. During sleep, individuals can generate their own data and analyse that data to determine their sleep quality. The software platform then provides an assessment of how to improve that sleep quality.

Power Sleep is therefore a company that does not just sell mattress design ; it also sells sleep quality and management

Advanced Industrial Technology Research Institute (AITRI), Shanghai
Shanghai Jiao Tong University takes a co-value view of education. It is not just about education or research but it is also about impact on society. As such, the Advanced Industrial Technology Research Institute (AITRI) sits between basic research (by the university) and applied research and development (by industry). The value of a university lies in its ability to make the right things, but also its ability to make mistakes fast. Universities should be able to make mistakes faster than industry. It is our job to explore topics, not to make them perfect. The job of industry is to make them perfect.

AITRI is aimed at creating value. Rather than focusing on individual technologies, it focuses on value creation. For example, LED lighting. It is too late to enter into LED lighting today as so many other companies such as Philips or Siemens have already developed this technology. LED has been developed for lighting, but what is the purpose of lighting ? To create effects – on colour, surfaces, animals, vegetables, etc. LED’s value creation lies in effect management : software can be developed to enable customisation, creating excitement, visibility and attraction. Therefore, if you consider LEDs only from the perspective of energy savings, you are giving them a very limited function.

We are using that to close the market gaps. To date, there is no real market in the area of LED-assisted sales : enhancing the attractiveness of products through lighting. However, once you are in a dominant position, the funding can come from a range of sources : venture capital, government, private sector, etc. Therefore, rather than focus on technologies per se, it is necessary to focus first on value creation. We look at risk reduction by creating value faster. Once that is done, risk will be lowered because value will be higher. At that point, industry can take over. However, that is only possible because universities are able to make mistakes very fast.
There are many other examples of what we are doing at AITRI but I will have to stop there due to lack of time.

Conclusion

The Chinese philosopher Laozi was concerned with the value of the mind. He stated that "the visible is the base of innovation". For example, let us consider the cup. You cannot change the design of the cup. However, what is inside the cup is the value that people can add. The cup is visible but you cannot change it. The inside of the cup is empty but it can be used for many things.
Product innovation today is about "gaps". We can all find the different functions but you should not forget that, from a customer point of view, there are still many gaps that are empty. How to design invisibles remains our responsibility. There are so many examples of this in industry today.
[Video presentation – Corning Glass : glass is a sensor that provides a feeling of interaction. It is a media that transports content through a tough screen.]

Glass can be a visualisation of feeling but that involves many gaps. The gaps can be filled through personalisation, customisation, interactivity and on-demand concepts. If a company like Corning Glass only made glass they would already no longer exist. However, they were able to redesign their business as a media on demand business. By creating smart glass, they were able to create value. Corning Glass is no longer a glass company ; it is an IT value creation company.

Thank you for your time and attention.

Jeudi 16 mai 2013
18h00 - 19h30



Amphithéatre Stourdzé

Ministère de l’Enseignement supérieur et de la Recherche
25 rue de la montagne Sainte Geneviève
75005 Paris

Entrée libre sur réservation :

christelle.tallon@ihest.fr - Tel : 01 55 55 87 66
Jay Lee

Détenteur du titre d’universitaire éminent de l’Ohio, titulaire de la chaire L.W. Scott Alter et professeur émérite
Université de Cincinnati
Jay.lee @ uc.edu

Directeur , Centre de recherche coopérative Industrie/Université de la NSF sur les systèmes de maintenance intelligents (IMS) regroupant plusieurs campus
Université de Cincinnati, Université du Michigan, Université du Missouri de S & T, Université du Texas à Austin
www.imscenter.net1

Président
, Institut avancé de recherche sur la technologie industrielle, Université Jiao Tong de Shanghai.

vendredi 12 avril 2013, par HUCHERY Mélissa