Why Six Sigma Fails Detroit

April 30, 2008 · Posted in economics, innovation 
Kano Model

Kano Model

Michigan desperately needs innovation to be competitive. When Japan started using Statistical Process Control (SPC) now known as Six Sigma, it was a competitive differentiator. In other words Japanese auto makers used quality and lean process as an innovation. Detroit has been feverishly implementing Six Sigma but they are still losing ground to the Japanese and now the Koreans and soon to be China. Why?

Six Sigma is a great thing but doing it as a “me-too”? only creates commoditization. Worse yet, the entire process of Six Sigma is about doing the same thing cheaper and cheaper. That leaves you in a death spiral to the lowest priced product, and little or no profits. Does that sound familiar?

Detroit, Michigan and the USA in general need innovation. Everyone knows that but almost no one is really doing it. The main reason is they don’t know how. What if innovation could be as predictable and systematic as Six Sigma? What if a company could create practical, profitable innovations on demand? Does that sound fantastic? Impossible?!? It is fantastic and it’s absolutely possible.

Predictive Innovation makes innovation:

  1. Efficient
  2. Low-Risk
  3. Controllable
  4. Repeatable
  5. Competitive
  6. Reliable
  7. Just-In-Time

Rather than looking at innovation as a magical creative activity it uses the very well defined study of System Theory and new breakthroughs in Information Theory to create a step-by-step process for innovation. How systematic is it? How about knowing there are 7 specific elements to innovate in any product or service and there are 15 types of alternatives for each element? When you realize that, you are guaranteed 105 innovations targeted precisely to your business needs and your customer’s desires.

When you use Predictive Innovation you can create an innovation strategy that causes your profit margins to increase overtime, risks to decrease and eliminate the threat of any competition.

Predictive Innovation has been used to create entire families of products, increase the value of investments, and solve seemingly impossible problems. It’s been applied to manufacturing, software, medicine, marketing, security, business strategy, politics, and entertainment.