High-tech tools alone cannot increase productivity

We are surrounded by advanced tools for creating and testing products. They not only change the economy of innovation and workflow, but also expand the scope of the possible.

Planes and cars can be created, simulated and simulated using computer programs even before testing the first prototypes. Sophisticated architectural structures undergo virtual verification of bearing capacity before the first concrete is poured. Engineers can walk in virtual factories before the development of workflows is complete. The CRISPR tool allows you to disable genes or change their functions by replacing letters in the DNA code. In a recent article, we co-wrote about achievements in the field of running controlled business experiments using sophisticated analytical tools.
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And although such progress is very inspiring, the tools - no matter how cool they are - do not automatically bring benefits to the organization. They must be integrated into existing processes and procedures. They are embedded both in organizations and in the work of the people who manage them. Being incorrectly integrated, they can even slow down the process of work.

In my research, I discovered several traps into which organizations embedding such tools can fall into.

Do not use new tools as a mechanical replacement for old ones. When new modeling and simulation tools appear, their supporters usually argue that replacing virtual prototypes with physical ones will save millions. In fact, money is saved - but at the same time companies do not pay attention to the great opportunities that these tools provide. For example, a complete reorganization of workflows associated with product development. One of the managers explained this with the example of morning road traffic. Even on Ferrari, you will not be able to get from work to home faster if you do not find a new path that will take into account the advantages of the new car - speed and acceleration. Likewise, companies cannot unlock the full potential of new tools unless they find new ways to work with them.

When I worked with a company that develops analog chips, I talked to top managers and engineers in search of innovative approaches to using detailed data on the operation of their equipment and the chips they produce. We used the data to develop complex statistical models that reflected their production capabilities, and embedded them into tools that simulated development. These tools were then used by managers. Before that, engineers had to develop circuits with large tolerances, which were supposed to guarantee the possibility of creating microcircuits, but at the same time they reduced the speed and increased the cost of production. After incorporation into the data development tools for production capabilities, these tolerances were significantly reduced. As a result, the speed increased, the cost dropped.

But for this it was necessary to develop new ways to combine design and production. Production required to collect and frequently update data. It was necessary to believe that the models introduced into the development tools did not disagree with reality and would not lead to a decrease in returns. Production had to quickly track and report all necessary changes and adjustments.

Build a system of trust. The speed of technology development often exceeds the rate at which people change their habits. If a company's knowledge base depends on the use of certain materials and tools, engineers will not be able to easily part with their knowledge or change their working methods overnight.

In that company with chips, the manufacturers didn’t want to admit that reducing tolerances would not affect product quality. It was difficult to calculate the overall effect, but the general wanted to get rid of several experiments anyway. If they worked, the technology would give them a competitive advantage. Moreover, many competitors did not have their own production, and therefore access to detailed production data. Production workers were convinced of the effectiveness of the system only after seeing impressive results.

In the same way, people were not in a hurry to accept the test results obtained on computer simulations, because they had been working with physical prototypes for years. In one company, the introduction of tools for computer simulations led to an increase in the cost of product development — because people didn’t trust computers, they started building more prototypes, just to test the truth of simulations. In some cases, virtual tests really badly replace real ones - but often managers are simply unable to build trust.

Look for new ways to create value. New tools provide new opportunities for interaction with partners. By giving users access to analytical tools, Google changed the advertising market. Apple's application development tools have turned users into developers and created a large market from which Apple has its profits. You can create value by finding new ways in which users and customers can play a more active role in innovation and workflow. To do this, the tools need to invest the company's know-how and enable customers to develop and "produce" solutions for themselves.

Credit Suisse has created a platform on which customers can create their own financial products. By automating security checks and giving development work to customers, the company reduced development costs by 95%, increased profitability, and freed up resources for innovation. Every day, hundreds of unique products are created, and the value of the platform has increased.

Changing the idea of ​​how you can become more valuable for customers, the bank with its customers create solutions that did not exist before.

Advanced tools can change the way you create innovations and workflows. But this potential is revealed by the way you handle these tools and the people who work with them.