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Systematic Corporate Innovation Methods Overview


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Systematic Corporate Innovation Methods Overview

  1. 1. "In my view, the word innovation has become overused, clichéd, and meaningless. I detest the mechanism that spits [such fads] up because they are so much easier to talk about than to do." -- Andy Grove (Former Intel CEO) Businessweek May 8, 2007 1 All Rights Reserved | The Strategy + Innovation Group LLC
  2. 2. Analysis of a Corporate Innovation Strategy: Samsung Researcher / Investigator / Author: Richard Platt Former Intel Corporate Innovation Program Manager 2 All Rights Reserved | The Strategy + Innovation Group LLC
  3. 3. Metrics: Patents Issued and Applications Samsung Electronics Co Ltd Patents Issued & Applied For Patent Metrics: Submissions are 3000 a leading ~2X Jump in indicator of innovativeness. 2500 2 years Patents are a lagging indicator 2000 ~2x jump # of Patents 1500 1000 500 ~600% Jump in 6 years Patent Applications 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Patents Issued Year 3 Key Question: What did Samsung do in ‘97 and ‘01 to increase patent submissions? All Rights Reserved | The Strategy + Innovation Group LLC
  4. 4. Brand Value Increase and Design Awards Samsung Brand Strength Brand Value 16.16 18 14.95 - Now considered a Premium Brand 16 12.55 14 (source: Businessweek / Interbrand) 12 10 8 6 4 2 0 2004 2005 2006 Year 6 new Design Centers London, Los Angeles, San Francisco, Shanghai, Tokyo and Milan. Won 80 Industrial Design awards in 2006 alone Industrial Designers Society of America honored 3 products with its Industrial Design Excellence Award (IDEA), making Samsung the most frequent IDEA winner during the past five years. Won 24 iF Product Design Awards from International Forum Design Hanover during ’06, and 7 iF Communication Design Awards for software. Received 24 prizes at Japan’s Good Design Awards, including the 1st Gold Prize for a Korean company as well as a Special Prize of the Chairman of the Jury. Also won the Design for Asia Grand Prize, in recognition for outstanding contributions to 4 lifestyle improvement in the region. All Rights Reserved | The Strategy + Innovation Group LLC
  5. 5. What Samsung says about its Innovation Strategy: Samsung Display Division (SDI) Samsung 6 Sigma Samsung SDI is the LCD display division Strategy is also implemented across SEC and is tied directly to Innovation. − Taught by Global Training Center (Samsung Advanced Institute of Technology) Benefits of Strategy in SDI resulted in… >US$300M for 2002 Source: Samsung Sustainability Report for 2003 5 Key Question: What is Samsung’s 6 Sigma Strategy and How is it used? All Rights Reserved | The Strategy + Innovation Group LLC
  6. 6. 6 All Rights Reserved | The Strategy + Innovation Group LLC
  7. 7. Key Message: TRIZ is also known as Systematic Innovation 7 All Rights Reserved | The Strategy + Innovation Group LLC
  8. 8. What Else was found…. The Samsung process closes on Strategy, Concept Engineering and Technology Development using Samsung Standard Design For Six Sigma (SS DFSS) Samsung Six Sigma Method Drives Innovation leading with TRIZ and other tools Key Message: Samsung increased speed of product development. e. g. Cell phone product development went from 16 to 5 months 8 All Rights Reserved | The Strategy + Innovation Group LLC Source:
  9. 9. What is TRIZ? * TRIZ is the Russian acronym for the Theory of Inventive Problem Solving, pronounced as trees A Systematic Innovation methodology, a tool set, a knowledge base, and a model-based approach for generating innovative ideas and solutions for problem solving. TRIZ expands approaches developed in systems engineering and provides tools and systemic methods for use in: Problem formulation System analysis Failure analysis Patterns of system evolution (both 'as-is' and 'could be'). TRIZ, in contrast to techniques such as brainstorming (which is based on random idea generation), is an algorithmic approach to the invention of new systems, and the refinement of old systems, with the goal of creating additional value. 9 Source: All Rights Reserved | The Strategy + Innovation Group LLC
  10. 10. TRIZ - Background Genrich Altshuller Key Discoveries Are Mined 1. Common Solution patterns repeat on for… Problems across industries & 200,0 sciences 40 Inventive Principles 00 * for solving Problems 2. Technical evolution follows predictable trend (it obeys “laws”) Global Technology Trends: laws to evolve Patents a technical system to the next gen. 40,00 0 3. Scientific effects jumped from one field to others Scientific Effects used in one field can solve problems in others Are Analyzed for Innovation TRIZ is a family of tools providing potential solution paths to technical problems. Key Message: There is a world of technological solutions, invented in other industries, waiting to be applied to technical challenges 10 * Almost 3,000,000 patents have been investigated making the All Rights Reserved | The Strategy + Innovation Group LLC TRIZ methodology statistically significant.
  11. 11. All brands, logos and trademarks remain the sole property of their respective owners Motivation to Use TRIZ TRIZ improves an engineer’s ability to get to the fundamental root cause of problems along with suggesting potential innovative solutions. More motivating to engineers than fire fighting Compelling evidence that TRIZ has been used to help solve technical problems and enhance the innovativeness of world class companies Companies using TRIZ or its variations: 11 All Rights Reserved | The Strategy + Innovation Group LLC
  12. 12. Other Corporate TRIZ / Systematic Innovation Users All brands, logos and trademarks remain the sole property of their respective owners Automotive Medical Technology Aerospace Petroleum Consumer Goods Optics/Electronics Microelectronics Chemical 12
  13. 13. How TRIZ Basically Works Solutions suggested on how TRIZ General similar problems resolved in TRIZ General problem other industries, sciences solutions & technologies “Focusing the Creativity” down known solution paths Problem Statement Generates Raised to multiple solution General Flow of higher level paths how TRIZ helps of abstraction to resolve problems and focus The specific engineers thinking Specific solutions problem for current problem TRIZ Software platforms don’t do the thinking, it only automates the process, providing a portal to the methods and tools and document solution paths. Decision making about what works/doesn’t work is still the responsibility of 13 the problem solver. All Rights Reserved | The Strategy + Innovation Group LLC
  14. 14. Contradictions • Contradictions are the trade-offs present in all engineering systems. − For example, we want cars that get good gas mileage but have high horsepower. However, to get more of one, you necessarily get less of the other. • Types of Contradictions: − Administrative: high level contradictions, can always be broken down into technical or physical contradictions • Example: Minimize cost while maximizing productivity (need to find out what parameters are controlling cost and productivity to change this into a more meaningful contradiction). − Technical: An improvement in one characteristic of the system that results in a degradation of another characteristic • Characteristics of systems are broken down into 39 generic parameters • Example: Minimizing weight degrades strength − Physical: Conflicting values of one parameter required • Example: We want transistor gate lengths to be both long (for high yield) and short (for speed). 14 All Rights Reserved | The Strategy + Innovation Group LLC
  15. 15. Technical Contradictions and The Contradiction Matrix • Problem is restated as a contradiction of generalized Generalized parameters. parameters • Statistical Analysis of patent databases shows that there are often a subset of the inventive principles used to solve this type of contradiction. The contradiction matrix is the result of this analysis Inventive Principles that • Problems can often be are most represented as multiple likely to solve technical contradictions. a strength vs. weight contradiction • Solutions can come from a single inventive principle, or “Ashtuller’s Contradiction Matrix” from combinations of 15 principles. All Rights Reserved | The Strategy + Innovation Group LLC
  16. 16. Technical Contradiction Example: Airbag Inflation • Problem Description (Contradiction): − As inflation speed of an airbag is decreased, injury rates to small occupants decrease, but overall injury rates in high speed accidents increase. • Technical Contradiction: − Duration of Action of a Moving Object (air bag inflation time) vs. Object Generated Harmful Factors (injuries) − Contradiction Matrix suggests looking at the following Inventive Principles (just a few examples): • Skipping (Conduct a process , or certain stages (e.g. destructible, harmful or hazardous operations) at high speed). • We could inflate the bag so fast that it is fully inflated before a small occupants comes in contact with it. • Inert Atmosphere (Add neutral parts, or inert additives to an object. Replace an active environment with inert ones) • The harmful / active environment here is the expanding airbag – could it be replaced with a collapsing outer layer? A softer outer layer? 16 • And so on… All Rights Reserved | The Strategy + Innovation Group LLC
  17. 17. Samsung TRIZ Results: 8mm Camcorder Benefits and Savings: Annual Cost Savings: $200K USD 3 Patents Decreased TPT by 50% (50 sec TPT 25 sec TPT) Resolved design defect from 15% yield hit 5% Reduced Material costs of $150K • Redesign from 8 parts to 4 • 38% material cost reduction from $0.32 to $0.20 17 All Rights Reserved | The Strategy + Innovation Group LLC Source: TRIZ Journal.
  18. 18. Samsung TRIZ Results: DVD Player This project resulted in ~$100M USD in cost reductions – 9 patents – Reduction in components from 8 to 5 – Increased reliability 8 5 18 Source: 4th Japanese IMC User’s Conference. HeldThe Strategy +2003. All Rights Reserved | Sept 10th Innovation Group LLC
  19. 19. Samsung TRIZ Results: Laser Diode for Next Gen DVD Problem: Aspect ratio window cannot support Problem Too Deep both electrical and optical performance needs in GaN laser diode. Solution: “Ridge corner shape” - New design extended metal on p-type electrode. Too Shallow Result: • 4,166% improvement in life expectancy − 60 2500 hours (world’s 3rd best). − Lower / more uniform current demand − Improved optical properties due to better heat removal Solution 19 All Rights Reserved | The Strategy + Innovation Group LLC Source:
  20. 20. Samsung’s Strategy for Disruptive Technology uses TRIZ Early Warning Technique: “TRIZ has an important role in the organization and management of SAIT’s R&D.”… “SAIT uses it (TRIZ) to keep track of areas in which patent portfolios are building up.” “If we focus on sustainable technologies alone our company may fail “ It is SAIT’s job to identify and explore the potentially disruptive technologies – “biotechnology and nanotechnology are strong candidates.” − Dr. Rim Kwan. (former) President of Samsung Advanced Institute of Technology Key Takeaway: Focusing on Disruptive technology is a part of the innovation strategy and using TRIZ methods / tools to help develop those technologies to be competitive. 20 Source: Interview with the President of SAIT, Dr. Rim, Kwan. Oct 2001 All Rights Reserved | The Strategy + Innovation Group LLC
  21. 21. Samsung’s Resources Deployed Samsung Advanced Institute of Technology (SAIT) 50 Full-Time TRIZ experts (Russian & Korean) − 6 full-time Russian TRIZ experts − est. 6-8 Korean TRIZ instructors tutored by the Russians in SAIT − Unknown # of support personnel Group of TRIZ specialists of Samsung and CEO of SAIT Mr. Wook Sun Source: Key Messages: TRIZ* Brought in Russian TRIZ (Starting experts to build expertise, in 2000) training & infrastructure to deploy TRIZ TRIZ now part of "Basic Technology training“ -- 21 considered essential engineering All Rights Reserved | The Strategy + Innovation Group LLC skill
  22. 22. Samsung Implementing TRIZ Training Samsung realized that software training, lectures and seminars were not enough to realize results – Reason given why they developed on-line TRIZ course to complement instructor led training TRIZ is a 2 ½ year Master’s course of study in France and Russia 8 different TRIZ classes, expertise grows with each additional class, 116 hours total Available to all employees Required for core technical employees and selected engineers. Note: External facing Web Based Training site was taken down 3 years providing training: > 1000 engineers / researchers trained > 55 Innovation Masters Key Messages: Samsung is considered “Best-in-Class” in corporate TRIZ. No other company is known to have established a TRIZ training or support organization on par with Samsung 22 Sources: All Rights Reserved | The Strategy + Innovation Group LLC eTRIZ/epapers/e2004Papers/eHJKim0406/eHJKimCase040609.html
  23. 23. Key Questions Answered Samsung Electronics Co Ltd Patents Issued & Applied For ~2X Jump in 2 years 3000 Innovation Tools Intro 2500 ~2x jump 2000 6-Sigma Intro # of Patents 1500 1000 500 Patent Applications 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Patents Issued Year Key Question Answers: 23 In 1997 Samsung introduced Six Sigma All Rights Reserved | The Strategy + Innovation Group LLC In 2001 introduced and began integrating the TRIZ program
  24. 24. A Legend Returns…2002 After 18 year hiatus… Now Kicking everyone’s Butt Ferrari – Blows the competition away… 2x lead in Points Dream Race – A “One / Two” finish Ferrari Rubens Barrichello and Michael Schumacher took a one-two finish to wrap up the Constructors' FIA Formula One World Championship™ for the team. Ferrari won four consecutive constructors' races Won 85% of last 13 Races! Eleven wins, including five one-two finishes, out of thirteen races contested is a record for Ferrari. All Rights Reserved | The Strategy + Innovation Group LLC
  25. 25. Ferrari – What they say…. “The chassis-engine-tire package was dominant from start to finish…stable mechanical domination” The Real Reason for Ferrari Winning Ramp.. They solved engineering contradictions with a revolutionary problem solving Methodology and tools .. TRIZ! ** 1. Improve Car Speed Gearbox + Transmission + Clutch Clutch is problem causing lost time “Ideal Final Result” = No Clutch! 2. Improve Car Speed Pneumatic Valves allowing 18,000 RPM, 3. Improve Car Speed Braking system Innovation 4. Improve Car Speed Airflow Optimizations in straightaway **not published – obtained from interview of factory design engineers, 2002 All Rights Reserved | The Strategy + Innovation Group LLC
  26. 26. FERRARI Brakes (Contradictions solved ) The car has just been wheeled off the track and a Technical talk at the beginning of the season focused closely on the mechanic is just about to cover the wheel hub with a new front braking system that had cloth or towel to hide it. There is a very small brake been developed by Ferrari. From duct, and close inspection of the wheel hub itself Malaysia onwards, Ferrari seemed reveals that it is much bulkier than the previous very keen to cover their wheel version, and has a metal fairing just behind the brake uprights from prying eyes in the pit disc. It was first suggested that there may be an lane once the wheels had been impeller (i.e. a rotating fan) that draws air into the removed. Close inspection of the wheel hub to cool the brake discs during the race, but Ferrari (see picture (1) below, this looks not to be the case. The new wheel hub is compared to 2001 McLaren) shows a designed to fill the whole space inside the wheel rim, very small brake duct compared to and the rotation of the wheel rim at speed is said to the larger one found on the McLaren. produce the suction effect that draws air towards the The brakes take a huge amount of brake discs and pads. Ferrari also use slightly punishment during the race different brake materials to many teams, and these may especially, and without major require less cooling than the conventional materials. cooling provisions the brakes would The Ferrari team also uses slightly different brake overheat and explode (like discs to other teams, using oval shaped cooling holes Frentzen's Williams in Australia, around the outside of the disc compared to circular 1997), so how are Ferrari cooling ones used previously. The new system seems to draw the brakes? Take a look at picture brake dust out of the hub and deposits it down the (2) below. The picture on the left side pod during the race, the pattern of the flow shows the conventional brake set-up clearly visible by the finish of the race in as seen in practice in Australia Australia. this year. You can see the wheel hub (with the wheel speed sensor electronics for the pit speed limiter also visible) and a large carbon-fibre brake duct towards the right hand side of the photo. 26 Compare this with the right hand photo, taken at Sepang. All Rights Reserved | The Strategy + Innovation Group LLC
  27. 27. The advantages of the Ferrari system is that the… brake ducts are very aerodynamically inefficient and can interfere with the airflow entering the side pods. Removing these or making them as small as possible makes the car more aerodynamically efficient, critical at high speeds. The relationship between the brake duct and the airflow coming off the front wing is also critical, so the smaller ducts that Ferrari use may slightly increase the down force produced from the front wing. The drawing below what the brakes look like head-on, and the small brake duct can be seen just protruding from the wheel hub on the left hand side: The Ferrari system has been copied since, with Arrows, Jordan and Sauber all introducing a similar system in Canada. Jordan still used large brake ducts with their system whereas 27 Sauber managed to run with very aerodynamically efficient ducts much like Ferrari's. All Rights Reserved | The Strategy + Innovation Group LLC
  28. 28. Quick Exercise w/ Answers Problem Statement: Design an automobile tire that cannot go flat. 1. What is the ideal final result? 2. What is preventing you from achieving the ideal final result? 3. Can you state what is preventing you from achieving the ideal final result as a technical contradiction? 4. What solutions does the contradiction matrix suggest? 28 All Rights Reserved | The Strategy + Innovation Group LLC
  29. 29. Formulate the Problem Statement / Contradictions What is the ideal final result? − A tire that insulates the vehicle from bumps, but does not go flat What is the difference (or the gap) between current systems and the ideal final result? − Solid rubber tires cannot go flat, but transmit bumps to the vehicle − Inflated tires insulate bumps, but can go flat − Tires lose air over time or can be punctured and lose air Possible contradictions: − As we improve resistance to flats (stability of an object’s composition), the transmission of bumps (a measure of “strength”, or the ability of the object to change in resistance to force) gets worse 29 All Rights Reserved | The Strategy + Innovation Group LLC
  30. 30. Likely Inventive Principles / Solutions Ideal Solution: − Design a “dynamic tire” that absorbs bumps by interactions of multiple parts of the tire (dynamics), but wont go flat. Stability of an object’s composition vs. strength, Contradiction Matrix suggests using: − 9. Preliminary Anti-Action − 15. Dynamics − 17. Another Dimension • #15 Dynamics Principle: A. Allow (or design) the characteristics of an object, external environment, or process to change to be optimal or to find an optimal operating condition. • Adjustable steering wheel (or seat, or back support, or mirror position...) B. Divide an object into parts capable of movement relative to each other. • The "butterfly" computer keyboard, (also demonstrates Principle 7, "Nested doll".) C. If an object (or process) is rigid or inflexible, make it movable or adaptive. • The flexible boroscope for examining engines New Michelin TWEEL 30 • The flexible sigmoidoscope, for medical examination All Rights Reserved | The Strategy + Innovation Group LLC
  31. 31. Same Tire Using Other Principles 1. Segmentation A. Divide a system into separate parts or sections 7. Nested Doll A. Put one object or system inside of another B. Put several objects or systems inside another 28. Mechanical Substitution C. Change from static to movable, fixed to variable &/or unstructured to structured 30 Flexible Shells and Thin Films B. Isolate an object or system from potentially harmful environment using flexible shells and thin films 40. Composite Materials A. Change from uniform to composite (multiple) materials, where each material is optimized to a specific functional requirement 31 All Rights Reserved | The Strategy + Innovation Group LLC
  32. 32. TRIZ Use at Michelin Tires (USA) • As reported by one Michelin team leader... “Partly as a result of TRIZ training, my team produced greater than 30% of all the invention records submitted by our research site over the course of 2003, whereas we only represent 7% of the population that usually submit such records” Key Messages: TRIZ does not replace human creativity. TRIZ restructures the thinking process of a designer and provides rapid access to new knowledge, it does not solve problems independently of the designer. TRIZ provides systematic access to the previous experience of multiple generations of inventors. This experience is generalized and presented in a form of inventive design rules and guidelines. 32 All Rights Reserved | The Strategy + Innovation Group LLC
  33. 33. Case Studies of Other Companies Using TRIZ Daimler-Chrysler uses TRIZ preparing their Technology portfolio as a part of the IP management and overall technology development process TRIZ Makes Its Mark Source: June 2003 issue of Business 2.0 Companies that have successfully put the matrix to work. COMPANY: Ford Motor PROBLEM: When airbags were first installed in the mid-1990s, the Escort's steering wheel shook excessively during engine idle. TRIZ PRINCIPLE: Make one component perform multiple functions. SOLUTION: Engineers used the airbag itself to dampen vibrations. COMPANY: Hewlett-Packard PROBLEM: With limited testing time, engineers needed to predict how the DeskJet 990C's output mechanism would fail. TRIZ PRINCIPLE: Replace rigid constructions with flexible membranes. SOLUTION: HP adjusted the algorithm that governs the pushing mechanism to better handle flimsy paper. COMPANY: Dow Chemical 33 PROBLEM: Delays in converting factories for new production. TRIZ PRINCIPLE: Perform changes to an object in advance. 3 SOLUTION: Dow worked to get early regulatory approvals+that allowed LLC All Rights Reserved | The Strategy Innovation Group several phases to proceed in parallel, helping to reduce conversion time by 35 percent.
  34. 34. Benefits of Using TRIZ / Systematic Innovation Methods Enhances existing problem solving capabilities − Compliments existing methods − Helps generate innovative ideas: potential inventions as outcome of training − Applicable to real problems: several $M realized − Demonstrated ability to reduce Time-to-Solution: several instances of months to weeks, Viable solutions to long standing problems Dramatically increases engineer's knowledge, creativity, and problem solving skills Revolutionizes the way difficult problems are approached that require breakthrough thinking − Shortening the time to solution − Reducing R&D time and cost − Decreasing product development time-to-market − Achieving technological leadership − Increasing the value of an intellectual property portfolio 34 TRIZ is a “power” tool adding to an engineer’s toolbox All Rights Reserved | The Strategy + Innovation Group LLC
  35. 35. Other Advantages of Using TRIZ / Systematic Innovation Methods Inventive design is a knowledge-intensive process, success of inventive design depends on how fast the needed knowledge can be found TRIZ has the following advantages over traditional innovation methods: Scientifically based approach to forecasting the evolution of technological systems, products and processes. Marked increase in creative productivity of users, and to accelerate new product development processes by quickly generating new solution concepts Rapid and organized acceleration search for inventive and innovative solutions and knowledge Builds upon and enhances inherent (already available) knowledge of problem solver No previous inventor's skills are needed to effectively solve new inventive problems, experience and background in the field of 35 endeavor is necessary All Rights Reserved | The Strategy + Innovation Group LLC
  36. 36. Disadvantages of Using TRIZ / Systematic Innovation Methods TRIZ does not provide exact recommendations on how to formulate contradictions with respect to a particular problem To identify an inventive principle, which has to be used for solving a problem represented as a specific conflict, the conflict has to be reformulated in terms of generalized engineering parameters. Inventive principles, inventive standards and trends do not propose a solution to a given problem. They only refer to a direction, which was used to solve a similar problem before TRIZ operates with vast knowledge domains, to lower the learning curve it is recommended use software programs to support the learning process 36 All Rights Reserved | The Strategy + Innovation Group LLC
  37. 37. Final Comments on Samsung Samsung is getting breakthroughs in manufacturing, R&D and product development… this is way more than incremental improvement Other companies use TRIZ and Systematic Innovation Methods however they DO NOT have the same level of INTEGRATION nor get these type of results CONCLUSION: Not all corporate innovation programs and training are equivalent, nor get the same results Just because your company uses TRIZ doesn’t mean that the company is now on a competitive footing…. KEY TAKEAWAY’s: Integration of Systematic Innovation Methods is the KEY into the company’s operations, finance, R&D, Executive level decision making, Quality standards, etc….Can’t get repeatable, reliable innovation results and achieve Sustainable Competitive Advantage 37 (SCA) without it All Rights Reserved | The Strategy + Innovation Group LLC Competency in Systematic Innovation Methods is the Core Competency for Innovation
  38. 38. Final Thoughts on Results Can you or your competitors afford to NOT invest in learning and deploying a systematic innovation methodology? Your company’s future and your employees livelihoods hang in the balance Choices are the Hinges of Destiny Ignorance and Fear Close Doors For further information / discussion please contact 38 Richard Platt Email: All Rights Reserved | The Strategy + Innovation Group LLC
  39. 39. Some Assumptions about Innovation “The Process for Innovation is chaotic, too expensive and doesn’t get consistent results” Are there Best Known Methods for managing the process of Innovation? − YES – there are many company’s that use similar methods Are there less expensive & less riskier approaches for innovation? − YES – Many companies who use Systematic Innovation methods also use these approaches Is there an actual process for getting consistent results from our Innovation program? − YES – the method is known as Systematic Innovation 39 All Rights Reserved | The Strategy + Innovation Group LLC