Many people only view Lean as a methodology to reduce waste and improve flow. It has been a driver of internal processes. Many of us have even hijacked the term customer and created “internal customers” and lose sight of the true customer and the marketplace. These companies do not recognize Lean as a business process that strengthens and grows a company through collaborative learning. It is this model in conjunction with the concept of “Pull” that are the fundamental concepts of Lean that provides so much value to Innovation . 
The ever increasing platforms of co-producing, open-innovation, co-creation is moving innovation from an exclusive internal platform to a more external platform. As our Voice of Customer tools get more sophisticated we are not reacting and thinking of the next step needed to delight our customers, we are allowing them to show us the way. True innovation is not happening inside the 4 walls of an organization but out in the customers’ playground. Organizations may lead in "design" but in use it is the customer and in use is where the value is derived (Service Dominant Logic Thinking Vargo and Lusch,2006).
Many would argue the Lean is about incremental improvement. It does not allow for breakthrough thinking. I agree that SDCA and PDCA with a continuous mindset may not deliver breakthrough thinking. However, like most things you start one step at a time. The culture of Innovation starts with culture of continuous improvement. To start with breakthrough thinking is very difficult and typically not successful. So starting with PDCA and a continuous improvement is the only successful way, to create this "i (little i) culture. Now, to ramp it up and truly do breakthrough thinking, the big 'I" is when you must engage and understand your customer/market extremely well.
This could be a description of the culture a Lean company from a Scott Anthony FastCompany Post on innovation:
A classic example of this is how a calligraphy class inspired Apple legend Steve Jobs’s emphasis on typography on early computers. The professors then detail what they call the "Innovator’s DNA," four time-tested approaches successful innovators follow to gather stimuli that spur these connections:
- Questioning: Asking probing questions that impose or remove constraints. Example: What if we were legally prohibited from selling to our current customer?
- Networking: Interacting with people from different backgrounds who provide access to new ways of thinking.
- Observing: Watching the world around them for surprising stimuli.
- Experimenting: Consciously complicating their lives by trying new things or going to new places.
I like to use the term EDCA learned from Graham Hill to designate the Explore aspect of Lean. I view it as more of Design Type thinking content that allows for that collaborative learning cycles with a customer. This is a link to my blog post on the tools of SDCA, PDCA, EDCA: http://business901.com/?p=8490.
Design and Innovation takes place outside the four walls and Lean is the methodology of choice. It is the driver of both the Little i and the Big I. Why Lean? The first and foremost reason is that it allows the 1st step for innovation. Without it, you never start!
My upcoming Podcast with Dan Jones dives into this type of Lean Thinking. Review these past post to provide some additional background, Thinking Back from the Customer –Lean Summit 2011 and The Challenge of Lean with Dan Jones.
Related Information:
Applying Cellular Concepts to Marketing Segments
The End of Best in Market
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