The document discusses innovation strategies and systematic innovation. It outlines an approach involving defining problems from the voice of the customer and solutions from the voice of the system. Trends are identified and potential conflicts analyzed to develop breakthrough ideas. Strategies involve domains of problems, solutions, constraints and resources to deliver breakthroughs on demand by solving contradictions.

1. Darrell Mann Innovate Or Die? Systematic Innovation and Business Strategy

4. An Accelerating World “ Almost every single major innovation has run counter to the prevailing common sense” Lewis Wolpert Limited Competition Regional Competition Global Competition ‘ continuous improvement’ ‘ stability’ ‘ continuous innovation ’

5. Evolution in Asia OEM O D M O B M

6. 一个新的碳粉盒 避开专利设计 , 方便性能不降低 , 结构价廉 用户有多种选择 市场需要 , 突破专利 , 获得利润 方便 , 有专利困扰 价廉 Original Problem Broader Problem Narrower Problem Why do I want to solve this problem? Why else? What’s stopping me solving this problem? What else? What Is The Problem? US6163665 碳粉盒中感光鼓的纵向定位 不依赖碳粉盒的表面 和打印机的调节件接触

7. Remove Water from glass Without touching the glass

8. Knowledge from all fields How many ways do you know to move a liquid ? Absorption Acoustic Cavitation Acoustic Vibrations Archimedes’ Principle Bernoulli’s Theorem Boiling Brush Constructions Capillary Condensation Capillary Evaporation Capillary Pressure Coanda Effect Condensation Coulomb’s Law Deformation Electrocapillary Effect Electroosmosis Electrophoresis Electrostatic Induction Ellipse Evaporation Ferromagnetism Forced Oscillations Funnel Effect Gravity Inertia Ionic Exchange Jet Flow Lorentz Force Magnetostriction Mechanocaloric Effect Osmosis Pascal Law Resonance Shock Wave Spiral Super Thermal Conductivity Superfluidity Surface Tension Thermal Expansion Thermocapillary Effect Thermomechanical Effect Ultrasonic Capillary Effect Ultrasonic Vibrations Use of foam Wetting

9. Other Means of Delivering The ‘Move Air’ Function www.systematic-innovation.com

10. Defining Breakthrough

11. * over 80% of innovations fail before they reach the market * over 80% of those innovations that do reach the market will also fail (FMCG~95%) * Over 90% of innovations are delivered late, over-budget or to a lower quality than was originally planned * Over 90% of collaborative innovations fail Some Innovation Statistics

12. What is a solution? W O W Anti-Common-Sense When It First Appears?

13. Why Do Some Things Succeed And Others Fail?

14. Ford Edsel Henry Ford’s ‘last great advance’ for the company millions invested; negligible sales; national joke

15. Segway (‘Re-Inventing The Wheel’) Dean Kamen’s attempt to re-define ‘ personal transport’ Projected US market size: 25 million units Anticipated production rate: 10,000 per week Actual sales; <5000 units in 2 years

16. Sinclair C5 – Electric ‘Car’ Clive Sinclair’s attempt to re-invent ‘transport’ ‘ Environmentally friendly’ electric power 12 km range 30km top speed = product withdrawn after 4 months, <300 sold

17. UK launch ends in disaster after 6 weeks when it is discovered that water contains excessive bromate. Then – even worse – that the water comes from Sidcup

18. 97% of Patents Never Pay Back The Cost of Filing

19. Invention versus Innovation INNOVATIVE INVENTIVE 97% of patents will never pay back the cost of filing the patent

20. Marks & Spencer, UK…. Falling high street sales, Fashion strategy disasters (‘grey range’) Migration from the ‘middle’ And then….

21. ‘ A New Experience Every Week’ Tchibo – Most Sustainably Successful German Retailer 60% of all German coffee sales

22. Lush…. … Takes over from Body Shop As leading bath and Body products retailer

23. In just 10 years, Curves International has become the largest fitness franchise in the world, with some 8,400 locations across the U.S., Canada, Europe, South America, the Caribbean, Mexico, Australia, and New Zealand. affordable, one-stop strength training and weight-loss centers catering exclusively to women

24. less than 20% of rural populations have a bank account, against a total of over 600,000 villages there are barely 30,000 bank branches Over one-third of the world’s chronically poor live in India. India accounts for 23% of world child death, 20% of maternal death, 30% of tuberculosis cases and 40% of undernourished children Around 34% of the country’s population is illiterate About 25% of the total rural population do not have access to safe drinking water, 55% of them do not have electricity in their homes and 40 % of the villages in rural India are not connected by metal roads INDIA

25. Women in the poorest families save by curbing unproductive household expenses like alcohol and tobacco or high interest to the moneylender. They deposit their savings into a group fund. The group manages the fund and allows its members to borrow for many purposes. Women gain self-confidence from managing their new asset - their savings - in a productive way. Once groups are strong, they can then leverage group savings with loans from banks. Average loan repayment rate: 99.5% SHG

26. Most successful German ‘food’ product launch 2004. 5cents/gherkin 2Euros/gherkin!! Get One!

27. iPod Mania….. Breakthrough product design turns into global phenomenon and… … now re-invents communication media

28. Samsung ‘Silver Nano’ Samsung has invested US$10 million in the development of the Silver Nano Health System ™. Since ancient times, silver has been used to prevent and treat diseases and infections. As a result of years of research experiment, Samsung has successfully electrolyzed pure silver into nano-sized silver ions (a particle 75,000 times smaller than the width of a human hair) to safely and effectively kill disease-causing germs, molds, and up to 650 types of bacteria, and prevents them from growing in places. Samsung Silver Nano home electronic appliances including washing machine, refrigerator, air-conditioner, air-purifier and vacuum cleaner are all equipped with comprehensive features that kill bacteria, molds and even harmful influenza viruses during the filtering process.

29. SANYO Introduces the Worlds First Zero-Detergent Electrolyzed Water Cleaning Powered Washing Machine Allows the option of &quot;Detergent Course&quot; or &quot;Non-Detergent Course&quot; according to the extent and type of dirt SANYO has now succeeded in implementing its Electrolyzed Water technology cultivated in SANYO's Water purifying bacteria-removing device into the Fully-Automatic &quot;Wash with Ultrasonic Waves and Electrolysis&quot; washing machine. By combining Electrolyzed Water's dirt dissolving and bacteria-removing properties with the cleansing power of Ultrasonic Wave technology SANYO has brought to realization the World's first &quot;Zero-Detergent course&quot; washing machine.

30. versus ‘ Equal’ – Wheel-Balancing ‘Particles’

31. www.activglass.com

32. Michelin ‘Tweel’

35. Breakthrough DNA

36. Patents Science ‘ Creative Minds’ Business Distillation of best practices extracted from all fields of human endeavour ‘ Breakthrough’ Database

38. MILLIONS of systems HUNDREDS of different problems TENS of successful solutions What we have been doing since 1996 is analysing as many sources of knowledge as we can about what makes something successful or not. This is what we find after having studied close to 3 million successful innovations:

40. CUSTOMER SUPPLIER IFR Profit Better than the competition Sooner than the competition IFR Free Perfect (for me) Now Who’s Ideal Final Result?

42. Trade-Off versus Breakthrough Thinking High Quality or Low Cost Affordable or Customized First Cost or Life Cycle Cost Flexible or Rigid Big or Small Adaptor or Innovator A or B High Quality and Low Cost Affordable and Customized First Cost and Life Cycle Cost Flexible and Rigid Big and Small Adaptor and Innovator A and B

43. ‘ Remove a part of the system’ ‘ Remove an attribute of the system’ ‘ Remove a function from the system’

44. ‘ Merge two or more different systems’ ‘ Merge two different attributes or add a new one’ ‘ Merge two or more functions or add a new one’

45. ‘ Change an attribute’ ‘ Change shape’ ‘ Change consistency’ ‘ Change size’ ‘ Change temperature, pressure, format, etc)

46. ‘ Turn something around the other way’ ‘ Turn something upside-down’ ‘ Fix a movable thing; move a fixed thing’ ‘ Reverse a sequence’

47. 40 Inventive (Business) Principles 1. Segmentation 2. Taking Out 3. Local Quality 4. Asymmetry 5. Merging 6. Universality 7. ‘Nested Doll’ 8. Counterweight 9. Prior Counter-Action 10. Prior Action 11. Prior Cushioning 12. Remove Tension 13. ‘The Other Way Round’ 14. Curvature 15. Dynamics 16. Slightly Less/Slightly More 17. Another Dimension 18. Vibration 19. Periodic Action 20. Continuity of Useful Action 21. Hurrying 22. ‘Blessing in Disguise’ 23. Feedback 24. Intermediary 25. Self-Service 26. Copying 27. Cheap/Short Living 28. Another Sense 29. Fluidity 30. Thin & Flexible 31. Holes 32. Colour Changes 33. Homogeneity 34. Discarding and Recovering 35. Parameter Changes 36. Phase Transitions 37. Relative Change 38. Enriched Atmosphere 39. Calmed Atmosphere 40. Composite Structures

49. Voice Of The Customer

50. Consumer Trends – What’s Going On? - ageing population - longer life expectation (active for longer) - greater determination to live life to the full - sharp increase in single-occupancy homes/single parent families - increasing importance of the extended family - increasing property prices – children staying home longer - increasingly sedentary lifestyle (compensated by guilt-trips to gym) - increasing safety/health consciousness - increasing religious/spiritual awareness - ‘chutneys’ – hand-made goods - authenticity - increasing risk aversion - increasing awareness of sustainability/environmental issues - Internet shopping/delivery of consumables - desire for ‘little luxuries’ – affordably expensive rewards - highly aspirational materialistic lifestyles (‘I-want-more’ culture) - increasing desire to simplify a complex world - desire for more convenience in mundane tasks - rising power and influence of female - disappearance of Mr/Mrs ‘Average’ – desire for individuality - desire for ‘cocooning’ (nest-building) - higher expectations as customer/greater inclination to complain - ‘Big Mother’ Every retailer spends time capturing and analysing consumer trend information. Almost invariably, once the information is captured, the future will very quickly deviate from what the trend predicts. Even though, we can look at any individual trend and say to ourselves ‘ yes, I can see that this is a logical trend relevant to my operations’ What is going on here?

51. Trend 1 Trend 2 Here’s What We Have Learned About Consumer Trends: CONFLICT EMERGES CONFLICT RESOLVED Take any consumer trend and it will look logical….. … take any pair, however, and sooner or later one will begin to conflict with the other…. … instead of ignoring the conflict, we need to work to resolve it in order to create the breakthrough business innovation

52. Example Scenario – Grocery Shopping ?? On-line Grocery Shopping Revenues Time

53. CUSTOMERS:- DRIVING FORCES * Increasing ELECTRONIC COMMUNICATION in private life * Increasing GAP between have’s and have-not’s * Increasing NEED FOR DIFFERENTIATION between business customers * Increasing INFORMATION VOLUME * Need for SIMPLICITY * Decreasing HUMAN INVOLVEMENT/INTERNET Shopping * Global AVAILABILITY OF SERVICES * Wish for INDIVIDUAL SOLUTIONS (private customers) * DEMOGRAPHIC TRENDS (aging population, DINKs) * BEING ALIVE (‘making the most of one’s life’) * TIME as a valuable resource Example Scenario – Grocery Shopping

54. COMMUNICATION Have’s/have-not’s DIFFERENTIATION INFORMATION VOLUME * SIMPLICITY HUMAN INVOLVEMENT Global AVAILABILITY INDIVIDUAL SOLUTIONS DEMOGRAPHICS Being Alive TIME COMMUNICATION Have’s/have-not’s DIFFERENTIATION INFORMATION VOLUME SIMPLICITY HUMAN INVOLVEMENT Global AVAILABILITY INDIVIDUAL SOLUTIONS DEMOGRAPHICS Being Alive TIME Trend Conflict Matrix

55. TREND: Internet Shopping Increasing access to convenience of on-line shopping is changing purchasing and bricks and mortar shopping experiences. Everything can be done from everywhere.

56. TREND: Being Alive Making the most of one’s life; living life to the full. Making every moment count Source/more information: Faith Popcorn

57. COMMUNICATION Have’s/have-not’s DIFFERENTIATION INFORMATION VOLUME * SIMPLICITY HUMAN INVOLVEMENT Global AVAILABILITY INDIVIDUAL SOLUTIONS DEMOGRAPHICS Being Alive TIME COMMUNICATION Have’s/have-not’s DIFFERENTIATION INFORMATION VOLUME SIMPLICITY HUMAN INVOLVEMENT Global AVAILABILITY INDIVIDUAL SOLUTIONS DEMOGRAPHICS Being Alive TIME Trend Conflict Matrix

58. COMMUNICATION Have’s/have-not’s DIFFERENTIATION INFORMATION VOLUME * SIMPLICITY HUMAN INVOLVEMENT Global AVAILABILITY INDIVIDUAL SOLUTIONS DEMOGRAPHICS Being Alive TIME COMMUNICATION Have’s/have-not’s DIFFERENTIATION INFORMATION VOLUME SIMPLICITY HUMAN INVOLVEMENT Global AVAILABILITY INDIVIDUAL SOLUTIONS DEMOGRAPHICS Being Alive TIME Trend Conflict Matrix Groceries Are Delivered But Nobody Is Home

59. Our Database of 3 million conflict eliminations allows us to see how other people have solved this conflict: Groceries Are Delivered But Nobody Is Home Technical Problem Parameter We Want to Improve – Convenience Business Problem

60. Voice Of The System

67. ?

68. Trend : Dynamization Immobile Single Joint Multiple Joint Liquid Gas Field Completely flexible

69. Trend : Dynamization Immobile Single Joint Multiple Joint Liquid Gas Field Completely flexible

70. TIME SPACE INTERFACE Smart Materials Space Segmentation Surface Segmentation Object Segmentation Macro to Nano Scale – Space Webs and Fibres Decreasing Density Asymmetry Boundary Breakdown - Space Geometric Evolution (Lin) Geometric Evolution (Vol) Dynamisation Mono-Bi-Poly (Similar) – Interface Mono-Bi-Poly (Various) – Interface Mono-Bi-Poly (Inc.Diff.) – Interface Damping Sense Interaction Colour Interaction Transparency Customer Purchase Focus Market Evolution Design Point Degrees of Freedom Boundary Breakdown – Interface Trimming Controllability Human Involvement Design Methodology Reducing Energy Conversions Action Co-ordination Rhythm Co-ordination Non-Linearity Mono-Bi-Poly (Sim) – Time Mono-Bi-Poly (Var) – Time Macro to Nano Scale – Time TRIZ Evolution Trends

72. Trend : Geometric Evolution Of Linear Constructions point line 2-D Curve 3-D Curve Trend : Surface Segmentation Smooth surface Rough surface (Surface with protrusions in 3D) Smooth surface (Surface with protrusions in 2D) Rough surface with active elements

73. Business Implications 3 TRIZ people + 3 Market Analysts (‘Hidden Failures’) = $14M royalties

74. Commodity Product Service Experience Transformation Customer Expectation

75. Putting It All Together

76. STRATEGY Domain of PROBLEMS ‘ Voice of the Customer’ Domain of SOLUTIONS ‘ Voice of the System’

77. STRATEGY Domain of PROBLEMS ‘ Voice of the Customer’ Domain of SOLUTIONS ‘ Voice of the System’

78. Domain of CONSTRAINTS STRATEGY Domain of PROBLEMS ‘ Voice of the Customer’ Domain of SOLUTIONS ‘ Voice of the System’ Domain of RESOURCES GENERIC GENERIC SPECIFIC SPECIFIC

80. CURRENT SITUATION Where Do Breakthrough Ideas Come From? ‘ continuous improvement’ ‘ breakthrough’

81. Conception Value Time Birth Infancy/Growth Maturity Retirement Typical Product Life-Cycle S-Curve

82. Value Time Typical Product Life-Cycle S-Curve SUSTAINING BREAKTHROUGH

83. Whack-A-Mole

85. Teoriya Resheniya Izobreatatelskikh Zadatch TRIZ Theory of Inventive Problem Solving

86. Systematic Innovation Evolution 1946 1985 2000 2003 Soviet TRIZ Content Function Analysis AD/DFMA TOC QFD 6Sigma Complex Systems DeBono /Buzan Business

87. Systematic Innovation QFD DFMA FA/VE Taguchi TOC Systematic Innovation - Framework For A Universal Systematic Innovation Methodology TRIZ DeBono 6  Shainin NLP AD