TOYOTA Drive Your Dreams A NUBS An MBA

TOYOTA Drive Your Dreams A NUBS An MBA “Innovations Management” MBA Presentation ( Spring 2010, Lecturer: Spring Rosniwati 2010 Mohd (Rusniwati Nasir ) Toyota by The Faulty Accelerator

TOYOTA Drive Your Dreams • • • Agenda History and Strategy Organisation and Linkages Process Learning Findings Recommendation --------------------------Company background : Bernard Organisation & Linkage : Song Yia Learning : Ali and Arman Process & Strategy : Ruban Findings & Recommendations : TBC

TOYOTA Drive Your Dreams HISTORY

TOYOTA Drive Your Dreams STRATEGY

TOYOTA Drive Your Dreams ORGANISATION

TOYOTA Drive Your Dreams Components of innovative organisation Shared Vision, Leadership, and the will to innovate Appropriate Structure Key Individuals Effective Team Working High Involvement innovation Creative Climate External Focus Source: Tidd and Bessant 2009

Shared Vision, TOYOTA Leadership, and the will to innovate • To enrich society though making things even though it may not bring short term financial returns. • Sakichi Toyoda Appropriate structure • Toyota Production system – Kanban/Kaizen • Learning Organization – PDCA (Plan, Do, Check, Act) Key individuals • No superstar CEOs – Taiichi Ohno, Kiichiro Toyoda Effective Team Working • OBEYA • Simultaneous engineering High-Involvement Innovation • Kaizen (Continuous improvements) by introducing incremental improvements Creative Climate • Challenging Targets • Strong Management support External Focus • Long Term Relationship with Suppliers • Sharing of knowledge Drive Your Dreams

TOYOTA Drive Your Dreams PLAN DO CHECK ACT Hansai, Kanban, Kaizen Toyota Production System To enrich society though making things even though it may not bring short term financial returns Supplier

TOYOTA Drive Your Dreams LINKAGE

TOYOTA Drive Your Dreams PROCESS

TOYOTA Drive Your Dreams How can we find opportunities for innovation? SEARCH

TOYOTA Drive Your Dreams Searching for sources of innovation Emerges as a result of scientific research Knowledge Push Searching Need Pull Emerges by the reason of customers needs, employees and etc

TOYOTA Drive Your Dreams Sources of Innovation • Toyota’s innovation sources that we have identified: Associations researched Internal R&D researches Competitor’s actions Watching others Customers (users as innovators and extreme users) initiatives Employee’s initiatives Regulations Sources of Innovation Future and forecasting

TOYOTA Drive Your Dreams Sources of Innovation • Employee’s initiatives – kaizen ("continuous improvement") – oobeya (ooh-bay-yuh). It's Japanese for "big, open office. " It means a new approach to planning and engineering, one that promotes more innovation, lower costs, higher quality, and fewer last-minute changes • Ex: A small team went out to observe how different kinds of people used trucks in different ways to prepare for the development of the new Tundra is great. • Customers (users as innovators and extreme users) initiatives – Genchi genbutsu ("means go and see what customers want in a car or truck and how any current versions come up short") • Ex: Toyota has launched a new digital campaign website called “Toyota Why Not? ” created by global creative agency Dentsu (America). The site will engage users by allowing them to submit their own innovations in six areas – safety, water, land, air, community, and energy – while learning about Toyota’s efforts in these same areas.

TOYOTA Drive Your Dreams Sources of Innovation • Competitor’s actions. – The Toyota Tundra, a new full-size truck designed to compete against GM and Ford big trucks • Internal R&D researches: – Toyota has 12 own R&D centres around the world • Regulations: – CO 2 restrictions lead to the improvements in the engines – Engine volume restrictions lead to increase of the horsepower from 1 cm 3 • Future and forecasting: – Hybrid technology

TOYOTA Drive Your Dreams Selection Knowledge Push • Research & Development • … Need Pull • Employee Initiates • Customer feedback • … Selected

TOYOTA Drive Your Dreams Selecting: Knowledge Push • Toyota Info. Technology Center Co. Ltd – Established : 12 th January 2001 (In the US, 2 nd April 2001) – Investors: Toyota Motor Corp. , Denso Corp, KDDI Corp. , Toyota Tsusho Corp. , Aisin Seiki Co. Ltd. , KYOCERA Corp. , Toyota Industries Corp. , Toyoda Gosei Co. Ltd. • Vision Challenge to car innovation through IT § ZERONIZE (traffic accidents, traffic congestions and environmental problems) § MAXIMIZE (driving, pleasure, comfort, safety) (Toyota Info. Technology Center Co. Ltd, 2010)

TOYOTA Drive Your Dreams Selecting: Knowledge Push • Mission – To develop technology to for automobiles suited for the IT era of the 21 st century via collaboration of a broad range of technology fields – To be a key player of open innovation to create a better society in the IT era Chief Scientist Tadao Saito, Ph. D Professor Emeritus, The University of Tokyo (Toyota Info. Technology Center Co. Ltd, 2010)

TOYOTA Toyota Info. Technology Center IM vs. Generic IM Drive Your Dreams TOYOTA Info. Technology Center “IM Flow” Innovation Management Exploration Search Research & Planning Select Development & Evaluation Implement Proposal Field Experiments Capture Commercialization (Toyota Info. Technology Center Co. Ltd, 2010)

TOYOTA Toyota’s Info. Technology Center Process Flow: From idea to launch Drive Your Dreams 2 Research & Planning 4 Field Experiments 1 3 Exploration Development & Evaluation Proposal (Toyota Info. Technology Center Co. Ltd, 2010)

TOYOTA Drive Your Dreams Selecting : Knowledge Push • Approach and Selection – Create and present technological scenarios/roadmap – Development/Business Plan (including external partners) • • Details of product or services (Toyota Info. Technology Center Co. Ltd, 2010) Assessment of the market opportunity Identification of target market Barriers to entry and competitor analysis Experience, expertise and commitment of the management team Identification and planning of key risks Financial and other resource requirements Tidd et al, (2009, p. 338)

TOYOTA Drive Your Dreams Selecting : Need Pull • Criteria for selection – – – Eliminating wasted time and resources Building quality into workplace systems Finding low-cost but reliable alternatives to expensive new technology Perfecting business processes Building a learning culture for continuous improvement • Identify what is value added Liker (2004, p. 14) – Value Added • Could be an information transformation, like engineering or accounting or transformation in the customer, ex. Educating the customer – Non- Value Added • Unused information, rework, walkthrough and etc – Non-Value Added but Required • Required under today’s conditions even though it does not add value from customer’s perspective. Ex. Inspections, control systems to check that procedures being followed, documentation and etc Liker (2004, p. 280)

TOYOTA Drive Your Dreams How are we going to make it happen? IMPLEMENTING

TOYOTA Drive Your Dreams Implementing: Knowledge Push • 4 approaches – – Prototyping Preceding development Benchmarking External Technologies Construction and Use of Testbed Environments • Target and Goal – Identify technologies that are truly important for the user and fully evolve them to achieve commercialization (Toyota Info. Technology Center Co. Ltd, 2010)

TOYOTA Drive Your Dreams Implementing: Need Pull • Develop a project plan with what, when and who • Conduct workshop – Can include: Re-layout of work areas to facilitate one-piece flow Workplace organization (5 S and visual displays) Creation of standard work instruction Revision of corporate procedures Redesigns forms and documents Problem-solving activities to uncover root causes of quality problems • Training people in the new process • • • Liker (2004, p. 282)

TOYOTA Drive Your Dreams LEARNING

TOYOTA Drive Your Dreams FINDINGS & RECOMENDATION

TOYOTA Drive Your Dreams Findings & Recommendation learning Average of Before 8, 00 Average of After 7, 00 - Increase customer input 6, 00 5, 00 4, 00 3, 00 organisation linkage 2, 00 1, 00 0, 00 strategy process Innovation Audit

TOYOTA Drive Your Dreams Recommendation • To increase customer input

TOYOTA Drive Your Dreams • • • References Toyota Info. Technology Center Co. , Ltd. Downloaded from http: //www. toyotaitc. com/en/activities/index. html as at 28 th March 2010. Liker, J. K. (2004). ‘The Toyota Way’. 1 st ed. United States of America: Mc. Graw-Hill Tidd, J. and Bessant, J. (2009). Managing Innovation: Integrating Technological, Market and Organizational Change. 4 th Edition. West Sussex: John Wiley & Sohns Ltd. Toyota official site, “Design, R&D” (2010). Downloaded from http: //www 2. toyota. co. jp/en/facilities/rd/ as at 23 th March 2010. Wikipedia, “Kaizen” (2010). Downloaded from http: //en. wikipedia. org/wiki/Kaizen as at 23 th March 2010. Warner, F. (2002) “In a Word, Toyota Drives for Innovation”. Downloaded from http: //www. fastcompany. com/magazine/61/toyota. html as at 23 th March 2010. Basulto, D. (2007) “How Toyota became the most innovative car company in the world”. Downloaded from http: //www. futurelab. net/blogs/marketing-strategyinnovation/2007/02/how_toyota_became_the_most_inn. html as at 23 th March 2010. Digitalbuzz blog (2009) “Toyota Innovations Website – Why Not? Campaign”. Downloaded from http: //www. digitalbuzzblog. com/toyota-innovations-website-why-not-campaign/ as at 23 th March 2010. An interview with Ms. Ryoko Toyama, Professor at Chuo Graduate School of Strategic Management (2008). Downloaded from http: //e 2 af. com/interview/090304. shtml as at 23 th March 2010.