Sustaining vs Disruptive Innovation
According to a McKinsey Global survey, as many as 84% of executives feel innovation is very important to a company's growth strategy. Understanding the various types of innovation can help identify strategies that suit your business, conceptualize business positioning, and recognize competitors' innovation strategies.
There are two types of innovation in business, namely sustaining and disruptive innovation. Both are very important in creating a business strategy. Therefore, it is important for you to know both and their differentiating factors.
What is sustaining innovation?
When companies innovate by creating products that are better than before, it is called sustaining innovation. These products will be more accepted by consumers, and attract higher profits. Both are also driving factors for sustaining innovation. Usually this strategy is used by companies that are already successful in their business industry.
An example of this strategy is the introduction of laptops in the computing industry. Laptops are a form of sustaining innovation that originates from PCs. Looking at developments or trends, laptops offer flexibility for their users. Users can take the laptop wherever they are. With innovations like this, laptop consumers' willingness to pay will be higher.
Relying on sustaining innovation seems to be a good strategy. Moreover, you will get a higher profit margin. However, just by sustaining innovation, several large companies failed to maintain their success.
What is disruptive innovation?
The second type of innovation is disruptive innovation. This innovation occurs when companies with few resources move up and compete with existing businesses. There are two types of disruptive innovation:
- Low-end disruption occurs when a company uses a low-cost business model to enter an existing market, and claim a segment.
- New-market disruption occurs when a company creates and claims a new segment in the market by serving an underserved consumer base.
Both can occur because the market is ignored by old companies. Because they are used to improving products and services, old companies will focus on audiences that have high demand and profits, so they pay less attention to other audiences. This opens up opportunities for disruptive innovation to provide “good enough” products to lower class audiences.
Just like the example of the computing industry, the introduction of smartphones is disruptive innovation, especially in new markets. Without realizing it, smartphones have created a new market. Audiences who use the internet, but don't need sophisticated specs on a PC or laptop, will choose to use smartphones. Gradually, this increase in quality will cause consumers to abandon PCs and laptops.
The main differences between sustaining and disruptive innovation
Innovation in business is very commonplace in a short period of time. This can impact the company both positively and negatively. However, it is a good idea to pay attention to several main factors that differentiate types of innovation in order to determine the right action plan for developing your business.
1. Product quality and performance
The main difference between sustaining and disruptive innovation is the performance of existing products on the market. Sustaining innovation seeks to create products that are high quality and work better than existing ones. On the other hand, disruptive innovation aims to create products that are “good enough.”
2. Target audience
Closely related to product quality and performance, another major difference is the target audience. While sustaining innovation targets consumers who are willing to pay higher prices, disruptive innovation is aimed at audiences who are looking for fair prices.
This means that the target audience for disruptive innovation does not require sophisticated and expensive features. For them, quality that is "good enough" is what they need. Usually this innovation is sought by the lower class and new market segments.
3. Business model
The final differentiator is the business model. Disruptive innovation relies on a low-cost business model with low profits. In contrast, sustaining innovation depends on a business model with high profits.
This difference is important, because if disruptive innovation produces higher margins, incumbent businesses will be motivated to capture the market.
Knowing the type and way each innovation plays a role in the market is the first step to preparing and developing a business strategy. To know more about the strategies and the differences between the two consider keeping up to date with the latest developments.
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A Scrum Master is a professional who plays a key role in the implementation of the Scrum framework, a methodology in Agile project management.
They are responsible for facilitating and ensuring the effectiveness of the team in implementing the Scrum principles.
This article will discuss the definition of a Scrum Master in more depth, explain the roles they play, and outline the essential skills needed to become a Scrum Master.
What is a Scrum Master?
A Scrum Master is a job position or role in the world of software development, especially one that implements the Scrum methodology.
A Scrum Master has a specific role on a development team that is responsible for facilitating and ensuring the effective implementation of the Scrum methodology.
A Scrum Master typically works closely with the development team to help them implement the Scrum process consistently.
They also interact with other stakeholders to ensure transparency and good communication throughout the development process.
It is important to note that while Scrum Masters have the responsibility to manage the Scrum process, they do not act as project managers who control budgets or resources.
Their primary focus is to ensure that the team can work efficiently and adaptively towards the project goals by leveraging Agile and Scrum principles.
To make it easier to understand, imagine a team building a new mobile app. The Scrum Master will do the following:
- Make sure everyone on the team knows what they are supposed to work on.
- Have a short meeting every day to discuss progress and issues.
- Help resolve issues that hinder the team’s work.
- Teach new ways to work more efficiently.
- Protect the team from outside distractions that could hinder the work.
The Scrum Master does not dictate what the team should do or how to do it. The Scrum Master focuses more on how the team can work together well.
The Role of the Scrum Master
The Scrum Master is a facilitator and leader who ensures the software development team is implementing the Scrum methodology effectively.
Their primary duties include organizing and facilitating Scrum meetings, removing impediments that hinder the team’s progress, and ensuring that the Scrum principles are followed.
Here are the main tasks of a Scrum Master:
1. Helping the Scrum Team:
- Teaching team members to work independently and help each other.
- Helping the team produce high-quality, standardized product parts.
- Eliminating things that hinder the team's progress.
- Ensuring that all important meetings such as daily standups and sprint planning run smoothly and on schedule.
2. Helping the Product Owner:
- Help the Product Owner create clear product goals and manage the list of tasks that need to be completed.
- Helping the team understand the tasks that need to be done clearly.
- Helping the Product Owner plan product development based on data and experience.
- Helping the Product Owner communicate and collaborate with other parties involved in the project.
3. Supporting the Organization:
- Training employees and stakeholders in using Scrum.
- Helping people in the organization understand the importance of using data and real evidence in their work.
- Removing communication barriers between the Scrum team and stakeholders.
Skills Required by a Scrum Master
A Scrum Master is someone who is responsible for ensuring the team works effectively and efficiently in achieving project goals.
To become a successful Scrum Master, a specific set of skills is required that combines aspects of leadership, communication, and problem solving.
Here are the important skills that a Scrum Master must have:
1. Leadership Skills
A Scrum Master must be able to lead a team, but not in the sense of a boss who likes to order around.
However, more like a friend who helps the team work well together. For example, by helping the team, facilitating the team, and supporting each member to develop.
With this leadership style, it will create a positive work environment and encourage creativity and innovation in the team.
2. Good at Communicating
The ability to communicate clearly and transparently is very important for a Scrum Master.
They must be able to convey information about project status, goals, and obstacles to all team members and stakeholders.
3. Empathy
A Scrum Master needs to have high empathy to understand the challenges faced by the team.
You must be able to provide emotional support and motivation, especially when the team is facing difficulties.
If you have this ability, of course it will help build trust and strong relationships within the team.
4. Problem Solving Skills
When the team faces difficulties, the Scrum Master must be able to help find a way out.
Therefore, you must have good problem-solving skills.
Starting from identifying the root of the problem, analyzing the situation, and finding effective solutions to keep the team productive.
5. Adaptability
The Scrum Master must be flexible and able to adapt quickly to changes in team and project needs.
For example, if there is a new way of working, you must learn quickly and not be rigid.
6. Facilitation Skills
The Scrum Master is responsible for facilitating various meetings, such as daily stand-ups, sprint planning, and retrospectives.
They must ensure that these meetings run smoothly, are focused, and produce the desired outcomes.
7. Coaching and Mentoring
One of the main roles of the Scrum Master is to be a coach and mentor for team members.
They must be able to guide the team to continuously improve performance and understand Agile values better.
8. Technical Knowledge
While not mandatory, having a technical background can be very beneficial for a Scrum Master, especially when working with a development team.
Technical understanding helps you better understand the challenges your team faces and can communicate more effectively with technical team members.
9. Time Management
A Scrum Master must have good time management skills to ensure the team stays on track and achieves sprint goals.
Starting from helping the team in time estimation, prioritizing tasks, and managing the product backlog.
By mastering these skills, a Scrum Master can effectively lead their team.
However, it is important to remember that becoming a reliable Scrum Master is a continuous learning process.
Continuing to hone these skills and staying up-to-date with the latest developments in Agile methodology will help the Scrum Master to continue to grow.
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Fishbone diagrams are visual analysis tools that can break down complex problems into more manageable components, identify root causes, and ultimately find the right solution.
This article will discuss fishbone diagrams in depth, starting from the definition, structure, when to use them appropriately, to the detailed steps in creating them.
Definition of Fishbone Diagram
A fishbone diagram is a tool used to identify, analyze, and visualize the potential causes of a particular problem or effect.
The name "Fishbone" comes from the shape of the diagram which resembles a fish skeleton.
This diagram helps the team to systematically outline the various factors that may be causing the problem. This makes it easier to identify the root cause and the right solution.
Fishbone diagrams are widely used in manufacturing, industrial services, product development, and much more.
Fishbone diagrams have several advantages:
- Enables systematic and structured analysis.
- Encourages creative thinking and brainstorming.
- Visualize the relationship between various causes.
- Helps identify areas that require further data collection.
- Increase the team's understanding of the complexity of the problem.
Fishbone Diagram Structure
Fishbone diagrams are a very useful visual tool for analyzing the root causes of a problem.
The structure of this diagram is similar to a fish skeleton, which consists of two main parts:
1. Fish Head: The Main Problem
The head of the fish is a place to write down the main problem or consequences that are being analyzed.
Here, you can briefly explain what the problem occurred, when it occurred, and other relevant details.
For example, "Decreased sales of product X by 30% in the last 3 months."
2. Fishbones: Causal Factors
The bones of the fish that support the body and the fins of the fish represent various causal factors that contribute to the main problem.
Generally, there are six main categories used or known as the "6Ms":
a. Method: Relating to company operations, including production, marketing and distribution processes.
b. Manpower (Human Resources): Factors related to employees, such as skills, number of workers, or performance problems.
c. Materials: Covers issues related to raw materials, both in terms of quality, quantity and storage.
d. Machine (Machine): Includes problems related to equipment and machines used in the production process or operations.
e. Measurement: Concerned with aspects of measurement and calculation, such as data input errors or problems in the performance measurement system.
f. Mother Nature (Environment): External factors that are difficult to control, such as weather conditions, natural disasters, or pandemic situations.
What is the Right Time to Use Fishbone Diagrams
Fishbone diagrams are very useful in the following situations:
1. Identify the Cause of the Problem
You can use a fishbone diagram when you have a complex problem and want to know the main cause.
The reason is, fishbone diagrams can help break down problems into smaller parts so they are easier to analyze.
2. Helps with the Brainstorming Process
This diagram is helpful when you and your team are conducting a brainstorming session to find various possible causes of a problem.
These diagrams provide structure, so that ideas can be categorized neatly.
3. Prevent Stagnant Thinking
When your team tends to get stuck in the same thought patterns or the same solutions over and over again, this diagram will help.
This diagram encourages looking at the problem from different angles and considering factors that may have been overlooked.
4. Organizing Complex Information
When you have a lot of information about a problem and need to organize it in a logical and systematic way.
Fishbone diagrams help group causes into clear categories.
5. Improve product or process quality
When you want to improve product quality and need to identify the factors that influence the final result.
This diagram is often used in quality management to find and resolve the causes of defects or non-conformities.
6. Analyze Data
When you have data indicating that there is a problem, but you are not sure what is causing it.
This diagram helps relate data to potential causes.
Steps to Make a Fishbone Diagram
Creating a fishbone diagram involves several structured steps.Quoting Coursera, here is a step-by-step guide to creating an effective fishbone diagram:
Formulate a Problem Statement
The first and most crucial step is to clearly define the problem.
This problem statement will be the "fish head" in the diagram. Place this statement on the right side with an arrow pointing to it.
It is important to ensure that the entire team agrees on this problem definition, as it will be the focus of the entire analysis.
Determining the Main Cause Category
Next, identify the main cause categories that will form the main "bones" of the diagram.
These categories vary depending on the industry and problem at hand.
For example, in the manufacturing industry, general categories might include:
- Human Resources
- Equipment and Machinery
- Processes and Procedures
- Raw material
- Environmental factor
- Measurement Procedure
Conduct a brainstorming session with the team to determine the categories most relevant to your problem.
Brainstorming Causes
Once the main categories are determined, brainstorm to identify as many potential causes as possible.
Encourage the team to think broadly and deeply, without limiting the ideas that emerge.
Categorizing Causes
Once the list of causes has been collected, group them into appropriate categories on the diagram.
These causes will be the “little bones” that connect the categories to the “backbone” of the diagram.
Digging into Sub-causes
For each identified cause, dig deeper by asking effective questions such as "Why is this happening?"
This process will produce additional layers of branches or "bones" in the diagram. This helps the team to understand the root of the problem more comprehensively.
Identifying Root Causes
The final and most important step is to identify the root cause of the stated problem.
Note the causes that appear most frequently and those that appear in more than one category.
These causes are most likely the root of the problem being analyzed.
Fishbone diagrams are a very effective tool in analyzing problems and making decisions in various industries.
By understanding the structure and how it is used, you can improve your team's ability to identify the root causes of problems and develop appropriate solutions.
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Have you ever felt confused when you wanted to solve a user-focused problem? Don't worry, there is an approach that can help you get out of this situation, it's called design thinking!
Design thinking is not just for graphic designers or architects, but can be used by anyone who wants to find creative solutions to any problem.
A study found that companies that consistently apply design thinking have up to 50% higher financial profits compared to their competitors who do not apply this approach.
So, what is design thinking?
Let's thoroughly examine the meaning of design thinking, principles, goals, and steps!
What is Design Thinking?
Design thinking is a way to solve problems creatively and systematically. This process involves five phases, namely empathy (Empathize), definition (Define), ideation (Ideate), prototype (Prototype), and testing (Test).
Interestingly, this method was developed by academics and creative professionals from well-known institutions such as Stanford University, you know.
They realize that to truly solve problems, they cannot rely solely on logic alone. However, emotions and empathy also play an important role.
Research even proves that when you are empathetic, creativity can skyrocket!
Purpose of Design Thinking
Design thinking can bring many benefits to your team or organization, you know! Come on, see the explanation below:
- Better understand what users really need.
- Try new ideas gradually so that the risk of failure is smaller.
- Think creatively and create completely new solutions.
- This method allows you to quickly learn from mistakes so you can make improvements more quickly.
- Design thinking also makes collaboration in teams better.
Steps to Design Thinking
Design thinking is a concept that provides creative and innovative solutions. This method is not just about solving problems, but also about feeling and understanding user needs in a more personal way.
In fact, according to research, teams that apply design thinking are better able to find innovative solutions that satisfy users.
So, what are the steps in design thinking? Here's the explanation!
1. Empathize
The first step in the design thinking process is empathy. That is, you try to understand the problem from the user's perspective.
You must be able to feel what users feel and understand their perspective better. Whether it's through interviews, observation, or research.
Why is this important to do?
Because this way, you can create solutions that suit their needs, rather than just relying on guesswork.
2. Define
The next step is to define (define). After collecting information, it's time for you to analyze it.
Formulate a clear and specific problem based on the data collected. This phase helps you stay focused on finding a solution.
3. Ideate
Ideation is the phase where you are free to imagine and bring out all the ideas that are in your head. There are no limits to ideas.
You can create as many ideas as you like, no matter how strange or brilliant they are. You can also hold brainstorming sessions to generate new and innovative ideas.
4. Prototype
After that, the fourth step is to create a prototype. Take some of your best ideas and create a prototype or initial model of the solution.
This prototype can be a physical model, digital mock-up, or even a simple sketch. The goal is to test the concept in real life and get feedback from users, before you spend a lot of time and resources developing it.
5. Test
Lastly, there is the testing phase step. This is the step where you test the prototype on users to see how effective it is in solving the problem.
By testing, you will get feedback from users. That way, you can use this information to refine and develop your solution further.
Principles of Design Thinking
Now let's discuss the basic principles of design thinking that can help you create creative and useful solutions for users. Some of these principles include:
Care about user experience
In design thinking, the most important thing is to understand user needs and feelings.
You have to listen to what they need and how they experience using your product or service. Remember, it is the user who is at the center of innovation, not the technology.
Cooperate
You also need to work closely with other teams, such as marketing and design teams. By working together, you can get fresh ideas that are useful for creating better solutions.
Generating Ideas and Solutions
Once you understand the problem, it's time to develop creative ideas. Don't be afraid to think outside the box and explore various possible ideas. Remember, the more ideas, the better!
Try and Fix
Design thinking is not only about generating ideas, but also about creating prototypes, testing them, and making improvements based on user feedback. This process may repeat itself until you find the right solution.
Actively Engage
The most important thing is that you must be actively involved in solving the problem. Rather than just speculating about user needs, you should interact directly with users and listen to what they need.
Ready to Face Obstacles
Remember, not everything will go smoothly at first. Failure is part of the process. You have to learn from mistakes and keep trying new things.
Flexible
Good design must be able to adapt to future changes. You must be ready to change your product or service to remain relevant to user needs.
Simple
Successful products are simple and easy to use. You have to eliminate unnecessary things so that the product is easier for users to understand.
So, that's a complete explanation of design thinking! With this approach, you can find creative solutions to various problems you are facing.
If you are interested in learning more about design thinking and developing your skills in creating creative solutions, don't hesitate to join our training program!
We offer classes designed to help you understand design thinking concepts in more depth and apply them in practice.
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