Exploration of applying Toyota Kata to product / service innovation

1. Toyota Kata for Innovation
Jason Yip
@jchyip
http://jchyip.blogspot.com
j.c.yip@computer.org, jcyip@thoughtworks.com

2. A story of on-site, rapid innovation

3. Goal: Concrete demo of rapid,
onsite, co-creation innovation
http://nordstrominnovationlab.com/#case_study http://www.marketingweek.co.uk/news/lastminutecom-
customers-co-develop-mobile-apps/4004895.article

4. Goal: Convince the organisation to
adopt this kind of approach

7. Outcome

8. COULD WE HAVE DONE BETTER?

9. This is a Design Thinking process
Not sequential, actually iterative
The real process is messier but the structure helps you deal with it
http://dschool.stanford.edu/dgift/

10. This is a Lean Startup process
The real process is messier but the structure helps you deal with it

11. The real process is messier but the
structure helps you deal with it

12. What is the essence of structure
that helps us deal with a mess?

13. When I ask that question, the first
thought that comes to mind is…

14. WHAT IS TOYOTA KATA?

15. http://www.slideshare.net/mike734/pdca-fast-start

16. The essence of Toyota Kata is
about establishing behavioural
routines for systematic,
scientific problem-solving

17. HOW MIGHT TOYOTA KATA APPLY
TO (PRODUCT/SERVICE)
INNOVATION?

18. INNOVATION KATA

19. What is the perfect
outcome from a
customer perspective?
Understand the customer’s
job so clearly that the
innovation becomes obvious
Observation, facts, and data
OVER survey and opinion
How does the
customer’s job
NEED to work?
Experimenting to make
better now OVER
talking about how to
make perfect later

20. UNDERSTAND THE DIRECTION

21. Direction giver, does not need to be achievable
Improvements are otherwise random

22. What is the perfect outcome from
the perspective of the customer?

23. GRASP THE CURRENT CONDITION

24. Focus on understand the
customer’s job before coming up
with ideas
Focus on the customer jobs, not on
the customers

25. Understand the customer’s job so
clearly that the innovation
becomes obvious
Product-shaped hole

26. The goal is not to identify a
product or service to build but
to better understand the
customer’s job so we can
improve it (by introducing a
product or service)

27. Observations, facts, data
• Direct, in-context
observation
• Asking clarifying
questions in-context
• Video
• Logs, records, etc.
Survey, opinion
• Focus group
• Customer survey
• Out of context interview
• Meeting room discussions
• Workshops
• SME opinion

28. ESTABLISH THE NEXT TARGET
CONDITION

29. Modified from Toyota Kata by Mike Rother

30. “A target is an outcome, and a
target condition is a description of
a process operation in a way – in a
pattern – required to achieve the
desired outcome”
Mike Rother, Toyota Kata

31. Target does not equal Target Condition
• Target: The desired customer outcome
• Target condition: A description of how
the customer will interact with the
product or service to achieve their
desired outcome

32. ITERATE TOWARD THE TARGET
CONDITION

33. Prediction written
before the
experiment
Evidence recorded
after the
experiment
The specific obstacle
to the target condition
we are addressing
The customer’s job

34. If the next step is unclear, then
the answer is almost always,
“Let’s go and see.”

35. What is the perfect
outcome from a
customer perspective?
Understand the customer’s
job so clearly that the
innovation becomes obvious
Observation, facts, and data
OVER interviews and
opinion
How does the
customer’s job
NEED to work?
Experimenting to make
better now OVER
talking about how to
make perfect later

36. INNOVATION COACHING KATA

37. “… the goal is not necessarily to
develop the very best solution
today, but to develop the
capability of the people in the
organization to solve problems.”
Mike Rother, Toyota Kata

38. The goal is not just to develop the
best product today, but to develop
the capability of the people in the
organisation to develop products

39. FO; "P98; "G< ! GO9E KnI ! F! "L H; >F9< E >"
http://www.slideshare.net/mike734/pdca-fast-start

40. AN INNOVATION STORY RE-TOLD

41. How does the story go if we had
applied the Innovation Kata?

42. The perfect job for an urban
grocery shopper
• Don’t have to think too much about what
to get – good options readily apparent
• Don’t have to worry about healthiness of
meal – all options are good
• Minimal walking distance to get
everything I need for the meal – in and
out

43. What is urban shopping currently
like?
• Wander around aimlessly funneled by
planned path through store, not sure
what to get – lots of back and forth
• Designed for related inventory not for
making a meal
• Easier to just grab a packaged meal or
roast chicken

44. What’s the next target condition?
• For a core ingredient, have simple meal
ideas and supporting ingredients readily
nearby

45. What’s the next experiment?
• More core ingredients
• More sophisticated meals

46. QUESTIONS… AS IN MY QUESTIONS
TO YOU

47. Questions
1. Does this proposed approach actually solve
a problem?
2. Is it actually feasible? What would be the
obstacles?
3. What might be the next step if you were to
try this where you are?
4. How quickly might we see what we have
learned from the next step?