Discuss about the Essential Skills for Software Architects.
Innovation can be defined as the improving of a product or a service to make it more valuable to a consumer.Innovation also occurs when we break down components and find better ways of testing or using them differently so as to come up with something new or better (Degraff, 2014). There are four types if innovation. Product innovation is when an organization comes up with a new product or service or enhances the already existing ones. Product innovation assists a company to get a competitive advantage due to differentiation (Voehl, 2015). It is a necessity for companies to keep innovating. Consumer behavior keeps changing rapidly, and companies must keep up with coming up with new solutions for products or improvement of existing ones so as to drive growth (Cuellar, 2015).
Process Innovation is the process by which an organization adds value to its supply processes hence improving its effectiveness and efficiency. This leads to lower costs within the company (Voehl, 2015).The company can introduce a new sequence to its production line that speeds it up by a huge percentage thereby saving time and money. It requires a longer planning period and high support as it is quite risky. It can create value to both internal and external customers as the company will highly gain from the quality of the product and also levels of service (Rouse, 2015).
Technological Innovation is the adoption of new technology into an organization. It also identifies new trends that are aligned with a business’s goals and also takes a look at where the organization’s technology and industry are heading. A company should get time to survey new technologies and also trends. Successful companies enable employees to have ‘innovation-time’ so as to research on any new areas (Hendricksen, 2014).
Service Innovation occurs in different ways and through different inputs like training of staff, marketing, knowledge and research, and development. They are hard to protect and can be imitated quite easily. There’s a great need for talent in service innovation hence the company must invest heavily in its human resources. It can also be achieved by improving service delivery, locating businesses strategically or innovations on how to handle the sales area (Morrar, 2014).
The process innovations are Lean Manufacturing, Kaizen, and Six Sigma. Six-Sigma is how organizations focus on improving a business process statistically. It focuses on qualitative measures to measure qualitative markers in a process to improve business functions. The company first defines a process that has faults, and this is decided by analyzing the company goals or requirements. The company then measures how the process is currently performing by looking at inputs and benchmarking performance. The next step is isolating each of the inputs and doing tests to determine the root of the problem. The system performance is then improved, and controls are added to the processes so that they do not become ineffective again (Pedersen, 2014).Toyota is a very successful implementer of the Six Sigma methods. This has enabled it to be the world’s top three companies due to its lean manufacturing implementation, which has been replicated worldwide (Sixsigma 2015).
There are two main methodologies within Six-Sigma. The first is ‘DMAIC’, which is used to improve the already existing business processes. These letters stand for Defining the problem and project goals, Measuring aspects of the already existing process, analyzing data so as to find root causes of defects, improving the process and controlling how to do the project in future. Another method is ‘DMADV’, which is used to create new processes or new products and services. These letters stand for Defining goals for the project, Measuring process components and capabilities of the product, Analyzing data and development of designs to choose the best, designing and testing the process and verification of the design through piloting and simulating before handing over to a client (Sixsigma 2015).
Six Sigma also contains management tools. The first tool is ‘Five Whys’ which questions the root causes of an issue. The company should look at the final problem and then ask themselves why it occurred. This process was first implemented at Toyota. Another management tool is ‘CTQ tree,’ which is critical to quality tree diagram. It breaks down what composes a process to come up with a final product that will satisfy customers. The final management tool is root cause analysis. Here, the business attempts to identify a root cause and correct it to the core. All these tools have a purpose of streamlining business processes to come up with the best products and services with the least defects. The fact that many companies around the world have adopted it means it is a huge success (Sixsigma 2015).
The six-sigma concept has achieved many milestones since its invention. There is a concept known as ‘DFSS’, which is design for six sigma. This is a method used to design a new product or to re-design an already existing product so that it can meet customer requirements and also meet the expected six-sigma quality level. DFSS is about getting everything right initially instead of later improvements.
Another milestone has been ‘DFLSS’ which is Design for Lean Six Sigma. In this concept, lean is added to the whole process. This aims at combining tools and techniques and minimizing processes (Sixsigma 2015).
There is also six-sigma certification that has been adopted by many organizations. A belt signifies the experience that someone has in six-sigma. A black belt has skills and knowledge related to ‘DMAIC’, the leadership of teams and implementation of lean methods. They are able to lead any team in executing six-sigma. A green belt expert does not have any experience in statistical tools, but he is trained on ‘DMAIC’ methodology. A yellow belt has expertise in the general lean six sigma tools and concepts. They can act as the project team leaders. Champions are top managers who work with black belts to make sure that any barriers to the project success are removed. A white belt has awareness training and knows basic improvement of processes (Sixsigma 2015).
Organizations that make Six sigma innovation their key focus position themselves to be outstanding and profitable. Six Sigma has led to the success of many organizations. Organizations that adopt Six Sigma have benefited from creativity. An example of such a company is the Kimberely-Clark Corporation. The company had subjected its staff to long shifts which led to the increase in the rate of absenteeism by 10%.The company outsourced its logistics to Unipart, and this enabled the company to spend more on staff development and engagement, resulting in improved efficiency (ManufucturingGlobal,2014).
Organizations that focus on Six Sigma also benefit from Leadership. Such companies are leaders in process innovations, and other companies follow and try to piggyback on their achievement. An example is Intel, which is the world’s largest computer chip maker. The company now introduces new chips into its factory within 10 days as compared to 14 weeks previously (ManufucturingGlobal,2014).
Organizations that focus on six-sigma process innovation are advantaged as they have experience. This ability to constantly repeat a process sets them a distance apart from other companies. John Deere is an example of such a company. They were the world’s largest manufacturer of agricultural machinery, and they adopted lean manufacturing which totally transformed their engineering mindset.
Organizations that focus on Six-Sigma Methods do not need to over-advertise as their names are already known brands in the industry and customers wait for them to launch new products continually. An example is cosmetics company L’Oreal (FC, 2015). It was established in 1909 and currently has over 30 brands and has grown worldwide. The company manages to stay at the top of its game by ensuring there are active researches and continuous process development. The company also implemented Six Sigma through their ISIS project (L’oreal, 2015).
As companies continue to use six sigma to evolve, so do the processes that will be involved. In the future, it seems that most companies will focus more on Key Performance Indicators (KPI) which is a six sigma component. This is a type of measurement for how a department is performing. Some of the Key performance Indicators that a company can use for process innovation is looking at the percentage of product that has defects. The higher the number of defects, the more the company will have to look at its processes (Jackson, 2015).
3D Printing is a technical development that will have a major impact on the future of six sigma. The technology will ultimately change the whole face of manufacturing. Complex objects will be created within a short period of time without the aid of manpower (Sixsigma 2016).
Another future development in six-sigma is the internet of things (IOT). This is a technology that allows electronic devices to be connected together and they can communicate without human intervention. This will be very useful in manufacturing processes as once there is a defect the machines will communicate with each other and send a notification hence reduced downtimes, less waste and improved quality (Robinson,2015).
Conclusion
Innovation is key for any organization that wants to remain relevant in its respective industry. Companies must, therefore, invest heavily in research and development to continually improve processes. The Six sigma approach has ensured the success of many companies around the world and more organizations are taking it up.
References
Cuellar, J.2015. What Are the Advantages of Risks of Product Innovation-And how Can Digital Innovation Consultant Help?< https://blog.innocellence.com/2015/11/19/what-are-the-advantages-and-risks-of-product-innovation-and-how-can-a-digital-innovation-consultant-help/>. Viewed 2 April 2017.
Degraff,J.2014. What is Innovation? <https://www.inc.com/jeff-degraff/what-is-innovation.html>. Viewed 2 April 2017.
FC,2015.The World’s Most Innovative Companies-IKEA.<https://www.fastcompany.com/company/ikea.> Viewed 2 April 2017.
FC,2015.The World’s Most Innovative Companies-L’OREAL<https://www.fastcompany.com/company/loreal> Viewed 2 April 2017.
https://manufacturing.gppcpa.com/enewsletters/article/reasons_why_your_factory_should_adopt_lean_manufacturing_practices/. Viewed 2 April 2017.
Jackson,T.2015. 18 Key Performance Indicator Examples Designed for Managers. https://www.clearpointstrategy.com/18-key-performance-indicators/ Viewed 2 April 2017.
L’oreal,2015.Our Innovation Model. < https://www.loreal.com/research-and-innovation/our-innovation-model> Viewed 2 April 2017.
Lewis,J.2015.Advantages of Innovation Companies.<https://smallbusiness.chron.com/advantages-innovation-companies-30771.html>. Viewed 2 April 2017.
ManufucturingGlobal,2014. Top 10 Lean-Manufacturing Companies.https://www.manufacturingglobal.com/top10/38/Top-10:-Lean-manufacturing-companies-in-the-world Viewed 4 April 2017
Morrar, R. 2014. Innovation in Services: A Literature Review. Technology Innovation Management Review, 4(4): 6-14.< https://timreview.ca/article/780>. Viewed 2 April 2017.
Mulligan,T.2014.Ideas for Cost-Reduction in Manufacturing. https://smallbusiness.chron.com/ideas-costreduction-manufacturing-59401.html.> Viewed 2 April 2017.
PA N.d. Manufacturing Process Innovation.https://www.paconsulting.com/services/technology-innovation/manufacturing-process-innovation/. Viewed 2 April 2017.
Pedersen,MC.2014.Six-Sigma.What Is It? < https://www.pmi.co.uk/about-six-sigma/>. Viewed 2 April 2017.
Rice, J.2014. How Many Supply Chain Innovations Are Truly Revolutionary? https://www.supplychain247.com/article/how_many_supply_chain_innovations_are_truly_revolutionary.> Viewed 2 April 2017
Rouse,M.2015.Process Innovation.< https://searchcio.techtarget.com/definition/process-innovation>. Viewed 2 April 2017.
Six sigma,2015.The Future of The Six Sigma Method. < https://www.sixsigmaonline.org/six-sigma-training-certification-information/> .Viewed 4 April 2017.
Voehl,F.2015. The Four Types of Innovation. <https://www.strategyassociates.cc/the-four-types-of-innovation/>. Viewed 2 April 2017.
Walters,A.2015.Reasons Why Your Factory Should Adopt Lean Manufacturing Practices. Indiana, Addison-Wesley Professional.
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