1st Edition

The Innovative Lean Enterprise Using the Principles of Lean to Create and Deliver Innovation to Customers

By Anthony Sgroi, Jr. Copyright 2014
    315 Pages 139 B/W Illustrations
    by Productivity Press

    Explaining how to use Lean principles to drive innovation and strategic portfolio planning, The Innovative Lean Enterprise: Using the Principles of Lean to Create and Deliver Innovation to Customers outlines simple, yet powerful, visual Lean tools that can enhance idea generation and product development. It starts with a discussion of Lean principles and then identifies the applicable portions of Lean that can drive customer value.

    The book discusses customer value in the form of the benefits your customers desire. It walks you through the processes of using Lean techniques to effectively evaluate the quality of any prospective marketing opportunity and includes examples from a variety of industries, including healthcare.

    The text discusses value creation, reduction of waste, entrepreneurial system designer, set-based concurrent engineering, and Lean project management. It also includes numerous examples of visual management tools as they apply to innovation to help you develop the understanding required to achieve a competitive advantage for your brand, division, or company through Lean.

    Visual Strategy
    The First Parameter of Strategy
         Utility
         Emotion
    The Second Parameter of Strategy
    The Third Parameter of Strategy
    The Fourth Parameter of Strategy
    The Strategy Icon
    Conclusion
    Chapter Overviews
         Chapter 2: Understanding the Current State
         Chapter 3: Opportunity Identification
         Chapter 4: Idea Generation
         Chapter 5: Delivering Profitable Innovation to Targeted Customers
         Chapter 6: Barriers to Imitation
         Chapter 7: Applications of Graphical Strategy Tools
         Chapter 8: Ranking Offerings
         Chapter 9: The Strategy Transformation Process
         Chapter 10: Strategy Transformation Example
         Chapter 11: Alignment and Position Statements

    Understanding the Current State
    The 2-D Perceptual Map
    The 2-D Map
    The Utility Knife Industry
         First Innovation: The Retractable Utility Knife
         Second Innovation: Quick Blade Change
         Third Innovation: Folding Utility Knives
         The Switchback Knife
         Product Features: Lock-Back-Style Folding Utility Knives
         Product Features: Folding Retractable Utility Knife with Blade Storage
         Product Features: Fast-Open Gravity Utility Knife
    Conclusion

    Opportunity Identification
    Must-Be Requirements
    One-Dimensional Requirements
    Attractive Requirements
    Top Portion of Product Fulfillment Map
         Acquisition
         Product Use
         Barriers to Use
         Product Robustness
         End of Life
    Left-Side Portion of Product Fulfillment Map
         Utility: Product Function Category
         Risk: Category in Which Customers Seek Risk Avoidance
         Simplicity or Convenience
         Emotional Well-Being or Social Well-Being
         Supports the Green Movement
         Financial
    Product Fulfillment Map Example
    Opportunity Scores
    Conclusion

    Idea Generation
    Internal Perspective Techniques
         Surveys
         Focus Groups
         One-on-One Interview
         Intercepts
         Product User Testing
         Customer Feedback and Complaints
         Ethnographic Research
         Idea Generation
         The Problem Solution Statement
         Job Mapping
    Internal Ideation Methods
         Brain Writing
         Brain Walking
         Worst Idea
         Patent Prompts
         Picture Prompts
         White Board Technique
    External Perspective Techniques
         Looking to Alternative Industries
         Looking to Alternate Strategic Groups
         Looking at Different Buyer Groups
         Looking to Complementary Product and Service Offerings
         Adding or Removing Functional or Emotional Characteristics
         Identifying New Trends
    Conclusion

    Delivering Profitable Innovation to Targeted Customers
    Utility
    Emotion
    Conclusion

    Barriers to Imitation
    Brand Power
    Firm’s Knowledge
    Customer Relationships
    Supplier Relationships
    High-Efficiency Operations
    Skill of People
    Processes
    Technology and Money
    Regulatory Pioneering
    Economies of Scale
    Switching Cost of the Consumer
    Intellectual Property
         Patents
         Types of Patents
         Patent Claims
         The Power of Patent Pending (a defensive tool)
         Trademarks
         Trade Dress as an IP Tool
         Copyrights as an IP Tool
         Trade Secrets as an IP Tool
    Conclusion

    Applications of Graphical Strategy Tools
    SWOT Analysis
         Strength
         Weakness
         Opportunities
         Threats
    Balanced Scorecard Approach
         The Learning and Growth Perspective
         The Business Process Perspective
         The Customer Perspective
         The Financial Perspective
    Disruptive Innovation
         New Market Disruptions
         Low-End Disruptions
    Conclusion

    Ranking Offerings
    Conclusion

    The Strategy Transformation Process

    Strategy Transformation Example
    Conclusion

    Alignment and Position Statements
    Conclusion

    Epilogue

    Bibliography

    Appendix 1
    Appendix 2
    Appendix 3

    Notes
    Index

    Biography

    Anthony Sgroi Jr. is a broadly experienced innovative thinker with a rare combination and proven track record in the disciplines related to customer fulfillment. Mr. Sgroi is highly experienced in the fields of engineering, manufacturing, and law, with a strong understanding of marketing and business strategy. He has considerable experience in defining value-added customer offerings utilizing the principles of Lean product development.

    Mr. Sgroi has worked for many well-known companies in the areas of product development. Mr. Sgroi has developed a multitude of products that are currently on the market today. Mr. Sgroi began his career in the areas of product design and procurement. After successfully launching several products, Mr. Sgroi decided to broaden his skill set by studying business, where he acquired a strong interest in marketing and strategy. This understanding allowed him to better contribute across the various disciplines of business. Understanding the level of importance and to further differentiate himself, Mr. Sgroi successfully passed the patent bar, where he is admitted to practice before the U.S. Patent and Trademark Office regarding patent matters. Mr. Sgroi is the holder of 40 patents with more than 30 more pending in the areas of compressed butane lighters, hydrogen generating devices for fuel cells, and various inventions related to cleaning tools.

    Mr. Sgroi has several forms of hands-on experience and multiple degrees. His degrees are in physics, and mechanical engineering, where he graduated magna cum laude. He also has a master’s in business administration.

    Tony Sgroi has developed an innovative approach to making marketing decisions on a lean basis. Everything is done to create value and eliminate waste. He includes an interesting visual system for assessing and communicating the quality of any prospective marketing opportunity.
    —Philip Kotler, S. C. Johnson & Son Distinguished Professor of International Marketing, Kellogg School of Management, Northwestern University

    The Innovative Lean Enterprise is an interesting perspective on the planning process. Its approach is both easy to apply and beneficial. A should-read for anyone in any field of business.
    Chris Mills, President, North America Consumer Products, BIC USA Inc.

    Very rarely does a book get published that can make a huge difference to a Business. The Innovative Lean Enterprise is such a book. The information within this book is a road map to success. Every business reaches a point where they have to innovate or perish. Tony Sgroi has given you the secret to succeed. By implementing each step Tony Sgroi has outlined in each chapter, you will create a building block for success. I really wish I had this book when I was developing my 35 companies.
    —Ken Varga, author of How To Get Customers To Call, Buy & Beg for More!

    The topic of the book from Tony Sgroi is not only for people who are interested in starting a business, but also for any person involved in management of a business or government agency.
    The composition is very clear, and his step-by-step of how-to-do portrayal assists the readers' comprehension. In addition, the numerous diagrams and graphs add to or enhance the meaning and provide a clear and attractive presentation to the reader. In today's economic and global downturn, Tony's view on maximizing value while minimizing waste is essential to business and daily life.
    —Dr. Henry C. Lee, Distinguished Chaired Professor, Forensic Science, The Henry C. Lee Institute of Forensic Science

    Tony Sgroi has made an important contribution to the discipline of strategic planning. By adapting the visual management tools of 'Lean' to both define ‘the now’ … AND envision new and innovative strategic futures. The Innovative Lean Enterprise makes it easy to discover and exploit unique competitive advantage for a brand, a division, or a company!
    Bryan Mattimore, Co-founder of The Growth Engine Company and Author of Idea Stormers: How to Lead and Inspire Creative Breakthroughs

    ... a great resource for business and technical leaders and entrepreneurs! Tony has laid out his thoughtful insight in a manner that brings the full force of his over 20 years experience as an engineer, manager, and patent agent registered to practice before the United States Patent and Trademark Office to bear on the complex topic of developing a winning strategy. As an intellectual property attorney and instructor on business and legal topics, it is my opinion that Tony masterfully melded together these components to help ensure the alignment of the strategies that support your business.
    Ned McMahon, Partner at Ohlandt, Greeley, Ruggiero & Perle, LLP

    I found Tony Sgroi’s book very educational with graphic examples of how to move projects forward. He explains how complicated decisions can be made by breaking them down into basic elements. A must-read for entrepreneurs of every field.
    Don Gringer, Chairman Allway Tools

    The Innovative Lean Enterprise is a vital resource for employees at all levels of your business. It presents a unique strategy framework highlighted with engaging examples to demonstrate successful implementation and execution of your business plan.
    Evan Anderson, President Allway Tools

    After reading Mr. Tony Sgroi’s book The Innovative Lean Enterprise I was struck by the depth of information and knowledge Tony was able to deliver. The book ties together marketing strategy, innovation and lean product development concepts very nicely. The information in the book is powerful and will be important reading for most types of business professionals including General Managers, Brand Marketing Executives, and R&D professionals.  I highly recommend reading The Innovative Lean Enterprise and believe it will be an important addition to the any company training effort focused on delivering customer value and innovation in the marketplace.
    Steve O’Brien , Director, Global Human Resources, Unger Global Companies