Managing Creativity, Design & Innovation
INTRODUCTION
In recent years, innovation, creativity and design are the common words used in business because these areas are widely to be connected with business success. Innovation, design and creativity do together with curiosity, an experiment and the desire to do continuously improve things. According to Olsen et al. (1995) they are four different level of innovation:
* New-to-the world products where products are new both to the company developing them and to the marketplace.
* Line extensions where products are new to the market place but not to the company.
* Me-too-products where products are new to the company but not to the market place.
* Product modifications where existing products that have been simply modified for instance they are new to neither to the company nor to the marketplace.
Innovation is the process of making new connection without changing thing for change’s sake. In terms of creativity, lateral thinking and brainstorming are techniques that supporting creativity where it occurs through the application of procedures from one area to another (Henry, 1991). Therefore, innovation and thought as well as analysis, implementation and action are needed in the creative process. While design involve the conscious decision-making process by which information as an idea is transformed into an outcome, be it tangible or intangible (Von Stamm, 2003). Design is more about doing things consciously in exploring, experimenting and comparing alternatives to select the best possible solution.
TOYOTA BACKGROUND
Toyota Motor Corporation (TMC) is Japan’s largest car manufacturer and was founded by Kichiro Toyoda in 1937 as a spinoff for his father, Sokichi Toyoda to create automobiles. It produce cars, minivans, pickups, full-sized pickup trucks and SUV’s like Solara, Prado, Lexus, Corolla, Camry and Qualls. Toyota has big financial strength, huge capitalization, high cost cutting strategy and high technology. The company manufactured in Aichi, Toyota and Bunkyo Toyota in Japan and presence in more than 170 countries. It has Daihatsu, Scion, Hino and Lexus sub brand under its ownership. In 2008, it has manufactured around 9 million vehicles including the sub brands. In addition, Toyota is very active in creating new technologies and it is proven by produce its hybrid vehicle the Prius (eco-friendly gasoline-electric car).
TOYOTA HYBRID CARS
The car manufacturers have struggled to create more environmentally friendly cars in order to reduce the global warming and greenhouse effect. It is because the traditional petrol or diesel cars emit gases directly contribute to the greenhouse effect. Therefore the car manufacturers take initiative and have explored new forms of engines – LPG, electric, hydrogen and battery which is hybrid cars. The energy of hybrid car could be developed from two different sources for instance current models of the hybrid cars combine electricity with thermal engines (petrol or diesel). Hybrid car can be separated into four categories.
1. Micro Hybrid – A micro hybrid is a car with a thermal engine, but some of its functions are powered by battery for example, starting the vehicle.
2. Mild Hybrid – Mild Hybrids offer the same functions as the micro hybrid, but they recover and store some of the kinetic energy generated when braking. Therefore, the car can deploy more power during acceleration, without increasing fuel consumption.
3. Parallel Hybrid – Parallel hybrid cars, like the Toyota Prius, use a thermal engine as well as an electric engine, making it possible for the car to swap to its electric engine at low speed or even to combine the two engines to maximise energy efficiency during acceleration. It much like the mild hybrid and the car recovers the kinetic energy created in braking to provide energy for the batteries.
4. Hybrid Series – Hybrid Series cars are provided with a generator which runs on petrol. The generator makes energy for the electric motor which is used to move forward the vehicle. The electric motor is also link to batteries which are recharged during braking and it also can be charged through electric outlet, making possible for the vehicle to be all-electric. In addition, the last two types of hybrid car can be recharged via a normal electric supply for instance spending over night in your garage.
There are many advantages using the hybrid cars. Hybrid cars can make huge savings on petrol or diesel as they consume significantly less. The reduction in the consumption will have a different between 10 – 50% depending on the vehicle use. A hybrid car could easily save many hundreds a year as the fuel prices have increased over recent years. In addition, it will reduce as the effect of global warming and harmful greenhouse gases. The hybrid cars that run on electric at low speed for instance if it was drive in a big city so it makes it possible to improve the air quality. There are many incentives in place to encourage the purchase of hybrid cars like reduced taxes etc. There is also a huge reduction in vehicle noise which in itself is a big improvement on traditional cars. There are some the latest innovation of Toyota hybrid car that are manufactured by the Toyota Motor Corporation (TMC).
The third-generation 2010 Toyota Prius went on sales in April 2009 and its bigger and more powerful than the second-generation in 2003. It has 1.8 liter engine and the horsepower is bigger from 110 to 134. Therefore it reduce zero to 60 time by a full second. It also offer 50 miles per gallon which is combine in city and highway driving.
Toyota Camry Hybrid has been the Americas’ top selling passenger car for eight years since nine years ago. The new 2010 Camry Hybrid model could moves from 0 to 60 in 8.9 seconds which is almost a second faster than the Toyota Prius. It could send gas prices US$4 per gallon. In addition, it gives many choices to the consumer in saving cost on fuel expenditure by choosing variety of Camry’s four-cylinder that combined highway and city mpg rating. For The new Camry Hybrid, it has added new exterior and interior features include LED tail lamps, hybrid badges, a tire-pressure monitoring system which is very helpful in optimize fuel economy.
The Toyota 2010 Highlander Hybrid has 208 horsepower with 3.3 liter gasoline V6 engine. It has restrains the engine’s ability to function at its full potential. It has a better city rating than a highway rating because Toyota Highlander Hybrid use more frequent of its electric propulsion when travelling in lower speed.
CORPORATE CULTURE
Culture is a way of living which is accepted by a group of people. In an organization, the corporate culture plays a major role in achieving the business goals with minimum cost and maximum profit as well as how organization solve its problems of external adaptation and internal integration, and teaching new members to perceive, think and feel in relation to the problem correctly (Schein, 1999) . Therefore the corporate leader is responsible to deal conflicting needs in a harmonize way to make a strong growth environment. Hampden-Turner (1990) in his book, “Corporate Culture – From Vicious to Virtuous Circles”, enlisted some of the characteristics of a corporate culture. What he said was that culture is important in an organization as this determine the way the individuals react and be treated by the organization. According to Schein (1985), culture is a pattern of basic assumption created or developed by a group as it learns to deal with its problems of external and internal integration that worked well to be considered valid and to be taught to other people as a current way to perceive, think and feel in relation to the problems.
TOYOTA BUSINESS CULTURE
Toyota management had adapted a culture where executive managers go to the source and investigate the facts and listens to the employees. They also implemented a system based on Toyota’s Production system, where the question ‘why’ is asked five times to find out the source as well as finding remedial steps. All of these information are gathered and then are delivered to the executive management, where any decisions are made.
Toyota has a very strong relationship between the management and their work force. This relationship is based on trust and respect between these two parties. They manage to achieve this by applying four basic principles:
(1) creating a trusting workplace environment
(2) promoting constant and voluntary initiatives in continuing improvements
(3) committed and thorough human resource development
(4) promoting teamwork that support individuals and optimization of the team
In order to keep well-established business culture, Toyota also provide on-the-job training and educational programmes which divided by position to create and strengthen the awareness of being a Toyota employee.
How does an organization implement one million new creative ideas each year? And become a perennial top ten profitable companies of the world. And achieve market leadership while relentlessly pursuing perfection and delivering some of the best new innovations the world has ever seen.
Welcome to Toyota’s Innovation Factory. The world knows Toyota as the car maker that produces such great brands as Camry, Lexus, Prius, Scion, Rav4 and more. For example, the introduction of the Hybrid car back in 1997 when other car makers had not even put together a design for a hybrid car, much less a concept car.
Foundation of Elegance and Innovation
Toyota was founded by Sakichi Toyoda as a handloom company. In 1898, Toyoda created Japan’s first steam-powered loom. Toyota Motors began as Toyota Automatic Loom Works, a company whose looms were of the “highest quality, lowest cost, and easiest to use.” Sound familiar. Hence the term “Elegant Solution” which according to May is about “finding the aha solution to a problem with the greatest parsimony of effort and expense.” And May argues that at Toyota, you get elegance from creativity, simplicity, intelligence, subtlety, economy, and quality. Further, May lays the groundwork for the term Innovation, which according to David Neeleman, founder and CEO of JetBlue means: “Innovation is trying to figure out a way to do something better than it’s ever been done before.” Indeed. This has become one of the guiding principles at Toyota.
Guiding Principles for Driving Innovation
Three guiding principles drive Innovation and create elegant solutions at Toyota, which were originated and finessed by Toyoda:
1. The Art of Ingenuity
May asserts that in order to succeed in an ever complex business world with competing pressures to innovate amidst competitive pressures and yet manage risks and uncertainty, an individual has to be both an artist and a scientist. Ingenuity creates images of cleverness, resourcefulness, initiative, originality, inventiveness, creativity, skill and even cunning – resulting in innovation. Sound contradictory. The key is to continually ask the question: “Is there a better way?”
This is possible if the individual fully leverages their domain knowledge and expertise, continuously pursues every possible way to innovate and perfect, challenges opposition tactfully, does not accept the status quo, and uses organizational efficiencies to drive new ideas and methods. Toyota has made ingenious vehicles such as Camry, RAV4, 4-Runner, RX which have become perpetual favorites in the market place.
2. The (relentless) Pursuit of Perfection
May argues that for a business to succeed at innovation, it has to rigorously search for an optimal solution – one that yields low-cost, low-risk, high-impact breakthrough. Innovation happens at Toyota through systematic pursuit of perfection at every level, every department, in everything Toyota does. Perfection equates to excellence, precision, flawlessness at Toyota. And it is this chase for perfection that creates better processes, products and services for tomorrow, today. It takes many small steps (Collins – Built to Last) to create sustainable innovation. For example, the Lexus cars made by Toyota epitomize perfection in the form of car design, function, performance, service and total satisfaction.
3. The Rhythm of Fit
May propounds that great innovation has to fit – fit the innovator, the times and the larger system. How can a great innovation shape and then change the attitudes and behaviors of people, the way they think, they work, they live? A change that fits in the current time and environment. For example, the Toyota Prius car. A hybrid car that provides plenty of room in the inside, shows solid performance on the highway, provides all the safety features, and gives great gas mileage and range. Toyota envisioned the changing environment of higher gas costs and pollution that wanted a car which is economical to drive, is environmentally friendly (green innovation), and does not sacrifice the inherent need for roominess, safety and performance.
The three principles create both the policy and framework at Toyota for driving innovation and creating elegant solutions. How would you find and drive innovation at your organization? Here are six ways to find innovation. If you are a technology company, read about how Intuit creates innovations and achieves market leadership using similar principles. May asserts that these three principles are non-negotiable and must be adhered to by everyone at Toyota.
Blocking Innovation
May also talks about the obstacles that hinder sustainable business innovation which Toyota has tactfully avoided through out its history. He calls these innovation blockers “temptations”, which are about taking short cuts, trying to hit a home run every time, creating products too complex that are top loaded with extra dressing, and without a real understanding of the innate customer need.
Here are the three Innovation blockers (does your organization block creativity and innovation? Here are some tips to unblock creativity and innovation) that Toyota has avoided over the years:
1. Swinging For Fences
High risk. High reward. NOT. When a company only focuses on trying to go all out for home runs every time at bat, you will strike out more often than not. The key is to build a sustainable batting average — lasting innovation, and not just go out swinging every time at bat.
2. Getting Too Clever
Every product manager at one time or the other is guilty of adding all those extra “bells and whistles” that the customer does not care about. This happens when you bow in to competitive pressures, or needs of specific customers that are not indicative of the mass market. The company ends up creating products that customers actually run away from.
3. Solving Problems Frivolously
May calls this the “brainstorm” trap, which is creating something that is out of line with the company’s core values, not serving customer’s true needs, and worse yet, something that is created hastily without rigor and analysis.
Ten Practices for Making Innovation
May showcases the following Ten Practices that Toyota has adopted on its core principles towards making Innovation happen:
1. Let Learning Lead
“Learning and innovation go hand in hand, but learning comes first.” Education and Learning can drive substantial innovation.
2. Learn to See
“Elegant solutions often come from customers — get out more and live in their world.” The key is to unearth the latent needs of the customers, and perceive the emerging needs
3. Design for Today
“Focus on clear and present needs, or your great ideas remain just that.” Innovation that drives business in today’s market is likely to get funded and succeed.
4. Think in Pictures
“Make your intentions visual — you’ll surprise yourself with the image.” In Six ways to find innovation, we talked about the need for visual imagery.
5. Capture the Intangible
“The most compelling solutions are often perceptual and emotional.” This is where the product manager needs intuition and the ability to read their customers’ minds.
6. Leverage the Limits
“Restraining forces rule — resource constraints can spur ingenuity.” It is critical to know what you can deliver, how you can deliver and by when.
7. Master the Tension
“Breakthrough thinking demands something to break through.” In Failures and Stumbles driving innovation, we talked about the five takeaways stimulating innovation. Accept that mistakes will be made.
8. Run the Numbers
“Think for yourself — temper instinct with insight, focus on facts, and do the math.” A sound technical analysis is critical before you begin a new product innovation. This should take into account such factors as risks, probabilities of success, and lessons learned from past projects.
9. Make Kaizen Mandatory
“Pursuing perfection requires great discipline — create a standard, follow it, and find a better way.” A process is a must have. Think Six Sigma. Think Rigor at Intuit.
10. Keep It Lean
“Complexity kills — scale it back, make it simple, and let it flow.” Innovation happens when you can simplify the intended application and make it so easy-to-use that it becomes a no-brainer.
Bottomline:
Toyota has become the dominant car maker today based on large part due to the Innovation Factory. A Factory based on a foundation of creating elegant solutions through three guiding principles, avoiding three “temptations” and driving ten production practices.
“Toyota is becoming a double threat: the world’s finest manufacturer and a truly great innovator . . . that formula, a combination of production prowess and technical innovation, is an unbeatable recipe for success.”
CONTRIBUTION OF CORPORATE CULTURE TO THE TOYOTA INNOVATION
A corporate culture can be described and mapped out using different categories but all cultures are responses to corporate dilemmas (Hampden-Turner, 1990). The culture of organization means appropriate behaviour, individual motivation and asserts solutions where there is ambiguity (Hampden-Turner, 1990). In terms of innovation, Toyota is the first car manufacturer using lean manufacturing and it was known as Toyota Production System which is more efficient, faster process and less waste compared to the queue and traditional batch method of manufacturing. In addition, it also used Just In Time manufacturing (JIT) and smart automation.
CONLUSION
The successful leaders described their influence by using the corporate culture to the company and they help to shape the culture.