Systematic Corporate Innovation Methods Overview

"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

Analysis of a
Corporate Innovation
Strategy:
Samsung

Researcher / Investigator / Author: Richard Platt
Former Intel Corporate Innovation Program Manager
2


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

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.

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?

6


Key Message: TRIZ is
also known as Systematic
Innovation
7


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

Source: www.osaka-gu.ac.jp/php/nakagawa/TRIZ/eTRIZ/elinksref/eNews2003/eJapanIM-UGM031209.html

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: http://www.wikipedia.org/

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

TRIZ methodology statistically significant.

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


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

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

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


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.

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…

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


Source: TRIZ Journal. www.triz-journal.com/archives/2004/06/02.pdf

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
www.osaka-gu.ac.jp/php/nakagawa/TRIZ/eTRIZ/epapers/e2004Papers/eHJKim0406/DVDPickup040609.pdf

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


Source: http://dm.nikkeibp.co.jp/free/nmc/kiji/triz/kiji/kiji1.html

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
www.iee.org/OnComms/sector/management/PN_Article.cfm?objectID=71C08614-5EA0-4A92-8646785621F535C9&method=download

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: http://shpackovsky.narod.ru/consulting_en.html
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
skill

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:
www.osaka-gu.ac.jp/php/nakagawa/TRIZ/ eTRIZ/epapers/e2004Papers/eHJKim0406/eHJKimCase040609.html

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
In 2001 introduced and began integrating the TRIZ program

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.

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


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.

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.

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


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


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

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


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


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.

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

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

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


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
Competency in Systematic Innovation Methods is the Core Competency for Innovation

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: rplatt_inov8@yahoo.com

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


Systematic Corporate Innovation Methods Overview

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