'Kaizen' Versus Discontinuous Innovation

Published 02 March 06 11:38 AM | Ivan Joseph 

Returned last Saturday after two days in Tokyo. It was obviously very busy with a bunch of meetings but it was fun just trying to understand the nuances of doing business there.

I was told by Fujibayashi-san one of my colleagues in Japan about 'Kaizen' or continuous improvement and how it is an important part of Japanese culture. Having read and heard about Toyota's famous manufacturing practices I immediately recognized and understood what he was saying.

If you think about it it's appeal lies in its simplicity - as you keep doing things you get better and better (learning curve effects) and you are able to make continuous improvements till it is refined to a degree approaching perfection. It is also comforting since it is not disruptive.

On the other hand the proponents of disruptive innovation (now called perhaps euphemistically discontinuous innovation) say that the big break throughs are disruptive. What does that really mean - is it something that changes lifestyles and habits? Perhaps - the internet was discontinuous, so was the internal combustion engine which put the horse carriage out of business. This of course is at an industry level. Would one classify category creators or category killers as being discontinuous? The Walkman for one certainly created a new category 'mobile music' - so in that sense it was discontinuous and then incremental innovation took place via continuous improvement. However that didn't prevent Apple from coming in and taking over the category with the iPOD - if you think about it, it really is Walkman V 100 so Sony had no business to lose it's preeminence in a category that it had created. Some might view the iPOD as being discontinuous but really to me it is an incremental improvement over the original Walkman.

Going back to Japan, this year Toyota is likely to emerge as the biggest car company in the world. It's already more profitable than the big 3 combined (helped no doubt by GM's losses) Isn't that a fascinating story and a vindication of the 'Kaizen' approach. Did they do anything that was discontinuous in their history - is the Prius discontinuous - I don't think so.

I guess a useful academic research paper would be to measure the impact of continuous vs discontinuous innovation in economic growth - what creates more jobs, income gains and so on.

Given that Sony, another top Japanese company came out with a new category, you can say that innovation - discontinuous or otherwise is not the preserve of any culture. Gaming is another business where one of Nintendo/ Sony/ Sega (who?) created a new category.

Therefore it is hard to conclude that any national culture would lead to more of one or the other - perhaps it is company culture, perhaps it's the leadership's outlook towards what is more economically efficient, perhaps it's the patent regime - did more innovations take place before patent law was enacted in the US or after- I'd be interested in knowing.

Does IP protection for 17 years (why 17 years) help or hinder?   

   

Comments

# mep50 said on March 2, 2006 4:03 PM:
Interesting blog; I am very familiar with Kaizen having worked in the semiconductor industry for years but have never heard of discontinuous innovation sounds like a fancy term for invention.

I don’t think you can say Kaizen vs. Discontinuous Innovation because you cannot have one without the other.  First something is invented and then in order for it to last continuous improvement needs to occur with the users.  This almost always is in the form of quality improvements to the original invention.  So you need the idea first then implement and improve on it.


Interesting though, the United States was the first to come up with the (Discontinuous Innovation) of continuous improvement long before the Japanese culture.  U.S. manufacturing did not embrace the concept and take it seriously but Japan implemented it brilliantly which is why as you listed they are the biggest car company in the world.  It comes down to quality.

Now if we could just model it in the same way for the software industry regarding quality. ^_^

Mark
# Ivan Joseph said on March 2, 2006 5:41 PM:
Interesting thoughts mep50.

I'm sure we've become better and better at continuous improvement since we've now been doing it for so long. So there is a gold standard of 'learning by doing' which could be part of Microsoft and needs to be institutionalized. Other s/w companies also must have developed a 'Kaizen' like approach- anything else would be wasteful.

You could say discontinuous innovation is in fact invention - the electric bulb, steam engine etc being classic examples. Is Post-It an invention - I guess it is and wouldn't one  categorize the Walkman too as an invention?  The reason they are discontinuous is that on the product development curve this wasn't treated as another step in the continuum of incremental product improvement. It came out of nowhere - in other words it created a new curve and in that sense was discontinuous.

Does that make sense?  
# mep50 said on March 2, 2006 7:47 PM:
Yes that makes sense.

I agree the U.S. has gotten better, kind of late in the game though not until the late 80’s.  I remember in the early 80’s my parents had a Pontiac Phoenix I think was the model name and sometimes when you honked the horn the windshield wipers would work.  We have come a long way since then for sure.

Software seems different though especially by industry or engineering disciplines.  For instance in a software engineering class that I took it was brought up that software can be made to have very high quality built in.  The reason that software struggles in this area is that for the most part there is no liability associated with the software if it breaks so the need is not there.

So say an air traffic control system or the brake system in your car the software is very robust and redundant etc.  Software in the gaming industry does not necessarily follow this convention.  I think having processes and standards is part of the issue as well.  If we could somehow take what we can do in say auto manufacturing and model this in software manufacturing.  

So why do you think quality is so esoteric regarding software?
# Ivan Joseph said on March 3, 2006 4:49 PM:
Is the software quality esoteric? I'm not sure. Is it variable? I think the answer is yes.

This has IMHO got something to do with the following:
1. Writing code has some degree of creativity to it. Not all programmers are the same and they approach the process of writing code differently.

2.Since this industry has grown very rapidly, not enough time has been devoted to process improvement- once you've shipped it's on to the next big thing.
3.Shipping as the primary goal: Most product teams are focused on shipping the product (and with very good reasons) and breathe a collective sigh of relief once shipping is done. Often they also re-org and join other teams. The unintended consequence of this is that if what has been shipped is not perfect/ is broken the people who've built it might have moved on and so they aren't held accountable.
4. Too many features, unclear business value: Often the product/ features are built and then we try to develop a value proposition instead of starting first and foremost with designing the value proposition. So there could be a disconnect b/w what is built and what is required. We just have to look at the no of features that are part of any major s/w product and ask the question about business value of each of these features. Did the Product Planners analyze these features for business impact before handing over to Engineering? Was Product Planning involved at all? Is there a Product Planning function prevalent across all s/w companies/ all divisions within a company?

I know that a lot of great work is being done in Microsoft to align the Engineering and Marketing disciplines and by all accounts significant progress is being made. But there is scope for improvement and here 'Kaizen' is particularly useful.

Perhaps we should 'Kaizen'ise s/w development:-)
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