systematic corporate innovation methods overview

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1 All Rights Reserved | The Strategy + Innovation Group LLC "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

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Page 1: Systematic Corporate Innovation Methods Overview

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"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

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Analysis of a Corporate Innovation

Strategy: Samsung

Researcher / Investigator / Author: Richard PlattFormer Intel Corporate Innovation Program Manager

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# of Patents

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004Year

Samsung Electronics Co Ltd Patents Issued & Applied For

Patent ApplicationsPatents Issued

Metrics: Patents Issued and Applications

Key Question: What did Samsung do in ‘97 and ‘01 to increase patent submissions?

~2x jump

~2X Jump in 2 years

Patent Metrics:Submissions are a leading indicator of innovativeness. Patents are a lagging indicator

~600% Jump in 6 years

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Brand Value Increase and Design AwardsBrand Value

- Now considered a Premium Brand(source: Businessweek / Interbrand)

6 new Design Centers London, Los Angeles, San Francisco, Shanghai, Tokyo and Milan.

Won 80 Industrial Design awards in 2006 aloneIndustrial 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 lifestyle improvement in the region.

12.5514.95

16.16

02468

1012141618

2004 2005 2006

Year

Samsung Brand Strength

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What Samsung says about its Innovation Strategy: Samsung Display Division (SDI) Samsung 6 Sigma 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

Key Question: What is Samsung’s 6 Sigma Strategy and How is it used?

Source: Samsung Sustainability Report for 2003

Samsung SDI is the LCD display division

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Key Message: TRIZ is also known as Systematic Innovation

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What Else was found….The Samsung process closes on Strategy, Concept Engineering and

Technology Development using Samsung Standard Design For Six Sigma (SS DFSS)

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

Samsung Six Sigma Method Drives Innovation leading with TRIZ and other toolsKey Message:

Samsung increased speed of product development.

e. g. Cell phone product development went from 16 to 5 months

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What is TRIZ?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 formulationSystem analysisFailure analysisPatterns 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.

Source: http://www.wikipedia.org/

* TRIZ is the Russian acronym for the Theory of Inventive Problem Solving, pronounced as trees

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200,000 *

40,000

Global Patents

* Almost 3,000,000 patents have been investigated making the TRIZ methodology statistically significant.

Key Discoveries1. Common Solution patterns repeat on

Problems across industries & sciences 40 Inventive Principles for solving Problems

2. Technical evolution follows predictable trend (it obeys “laws”)

Technology Trends: laws to evolve a technical system to the next gen.

3. Scientific effects jumped from one field to others Scientific Effects used in one field can solve problems in others

TRIZ is a family of tools providing potential solution paths to technical problems.

Are Analyzed for Innovation

Are Mined for…

TRIZ - BackgroundGenrich Altshuller

Key Message: There is a world of technological solutions, invented in other industries, waiting to be applied to technical challenges

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Motivation to Use TRIZTRIZ 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 classcompanies

Companies using TRIZ or its variations:

All brands, logos and trademarks remain the sole property of their respective owners

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Other Corporate TRIZ / Systematic Innovation Users

Automotive

Aerospace

Consumer Goods

Microelectronics

Medical Technology

Petroleum

Optics/Electronics

Chemical

All brands, logos and trademarks remain the sole property of their respective owners

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How TRIZ Basically Works

The specific The specific problemproblem

TRIZ Generalsolutions

TRIZ General problem

Specific solutions for current problem

Problem StatementRaised to

higher level of abstraction

Solutions suggested on how similar problems resolved in other industries, sciences

& technologies“Focusing the

Creativity” down known solution

pathsGenerates

multiple solution pathsGeneral Flow of

how TRIZ helps to resolve problems

and focus engineers thinking

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 the problem solver.

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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).

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Technical Contradictions and The Contradiction Matrix•

Problem is restated as a contradiction of generalized 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

Problems can often be represented as multiple technical contradictions.

Solutions can come from a single inventive principle, or from combinations of principles.

Generalized parameters

Inventive Principles that are most likely to solve a strength vs. weight contradiction

“Ashtuller’s Contradiction Matrix”

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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?

And so on…

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Benefits and Savings: Annual Cost Savings: $200K USD3 PatentsDecreased 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

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

Samsung TRIZ Results: 8mm Camcorder

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Samsung TRIZ Results: DVD PlayerThis project resulted in ~$100M USD in cost reductions

Source: 4th Japanese IMC User’s Conference. Held Sept 10th 2003.www.osaka-gu.ac.jp/php/nakagawa/TRIZ/eTRIZ/epapers/e2004Papers/eHJKim0406/DVDPickup040609.pdf

– 9 patents– Reduction in components from 8 to 5– Increased reliability

8 5

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Samsung TRIZ Results: Laser Diode for Next Gen DVD

Problem: Aspect ratio window cannot support both electrical and optical performance needs in GaN laser diode.

Solution: “Ridge corner shape” - New design extended metal on p-type electrode.

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

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

Too Deep

Too Shallow

Problem

Solution

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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

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

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.

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Samsung’s Resources DeployedSamsung 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

Key Messages:Brought in Russian TRIZ

experts to build expertise, training & infrastructure to deploy TRIZ

TRIZ now part of "Basic Technology training“ --considered essential engineering skill

Group of TRIZ specialists of Samsung and CEO of SAIT

Mr. Wook SunSource: http://shpackovsky.narod.ru/consulting_en.html

TRIZ* (Starting in 2000)

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Samsung Implementing TRIZ Training

Note: External facing Web Based Training site was taken down

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.

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

Sources:www.osaka-gu.ac.jp/php/nakagawa/TRIZ/ eTRIZ/epapers/e2004Papers/eHJKim0406/eHJKimCase040609.htmlwww.osaka-gu.ac.jp/php/nakagawa/TRIZ/eTRIZ/elinksref/eNews2003/eJapanIM-UGM031209.html

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0

500

1000

1500

2000

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# of Patents

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004Year

Samsung Electronics Co Ltd Patents Issued & Applied For

Patent ApplicationsPatents Issued

Key Questions Answered

Key Question Answers:In 1997 Samsung introduced Six Sigma In 2001 introduced and began integrating the TRIZ program

Innovation Tools Intro

~2x jump6-Sigma Intro

~2X Jump in 2 years

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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.

A Legend Returns…2002

Ferrari – Blows the competition away… 2x lead in Points

After 18 year hiatus…Now Kicking everyone’s Butt

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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 Innovation4. Improve Car Speed Airflow Optimizations in straightaway

Ferrari – What they say….“The chassis-engine-tire package was dominant from start to finish…stable mechanical domination”

**not published – obtained from interview of factory design engineers, 2002

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FERRARI Brakes (Contradictions solved )The car has just been wheeled off the track and a mechanic is just about to cover the wheel hub with a cloth or towel to hide it. There is a very small brake duct, and close inspection of the wheel hub itself reveals that it is much bulkier than the previous version, and has a metal fairing just behind the brake disc. It was first suggested that there may be an impeller (i.e. a rotating fan) that draws air into the wheel hub to cool the brake discs during the race, but this looks not to be the case. The new wheel hub is designed to fill the whole space inside the wheel rim, and the rotation of the wheel rim at speed is said to produce the suction effect that draws air towards the brake discs and pads. Ferrari also use slightly different brake materials to many teams, and these may require less cooling than the conventional materials. The Ferrari team also uses slightly different brake discs to other teams, using oval shaped cooling holes around the outside of the disc compared to circular ones used previously. The new system seems to draw brake dust out of the hub and deposits it down the side pod during the race, the pattern of the flow clearly visible by the finish of the race in Australia.

Technical talk at the beginning of the season focused closely on the new front braking system that had been developed by Ferrari. From Malaysia onwards, Ferrari seemed very keen to cover their wheel uprights from prying eyes in the pit lane once the wheels had been removed. Close inspection of the Ferrari (see picture (1) below, compared to 2001 McLaren) shows a very small brake duct compared to the larger one found on the McLaren. The brakes take a huge amount of punishment during the race especially, and without major cooling provisions the brakes would overheat and explode (like Frentzen's Williams in Australia, 1997), so how are Ferrari cooling the brakes? Take a look at picture (2) below. The picture on the left shows the conventional brake set-up as seen in practice in 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. Compare this with the right hand photo, taken at Sepang.

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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 Sauber managed to run with very aerodynamically efficient ducts much like Ferrari's.

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Quick Exercise w/ AnswersProblem 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?

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Formulate the Problem Statement / Contradictions

What is the ideal final result?−A tire that insulates the vehicle from bumps, but does not go

flatWhat 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

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Likely Inventive Principles / SolutionsIdeal 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 •

The flexible sigmoidoscope, for medical examination New Michelin TWEEL

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Same Tire Using Other Principles1. Segmentation

A. Divide a system into separate parts or sections

7. Nested DollA. Put one object or system inside of

another B. Put several objects or systems inside

another

28. Mechanical SubstitutionC. 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 MaterialsA. Change from uniform to composite

(multiple) materials, where each material is optimized to a specific functional requirement

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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.

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Case Studies of Other Companies Using TRIZ

COMPANY: Dow ChemicalPROBLEM: Delays in converting factories for new production. TRIZ PRINCIPLE: Perform changes to an object in advance. SOLUTION: Dow worked to get early regulatory approvals that allowed several phases to proceed in parallel, helping to reduce conversion time by 35 percent.

COMPANY: Hewlett-PackardPROBLEM: 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: Ford MotorPROBLEM: 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.

TRIZ Makes Its MarkCompanies that have successfully put the matrix to work.

Daimler-Chrysler uses TRIZ preparing their Technology portfolio as a part of the IP management and overall technology development process

Source: June 2003 issue of Business 2.0

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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 problemsDramatically 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

TRIZ is a “power” tool adding to an engineer’s toolbox

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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 conceptsRapid and organized acceleration search for inventive and innovative solutions and knowledgeBuilds upon and enhances inherent (already available) knowledge of problem solverNo previous inventor's skills are needed to effectively solve new inventive problems, experience and background in the field of endeavor is necessary

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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

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Final Comments on SamsungSamsung is getting breakthroughs in manufacturing, R&D and product development… this is way more than incremental improvementOther 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 (SCA) without itCompetency in Systematic Innovation Methods is the Core Competency for Innovation

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Final Thoughts on ResultsCan 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

Richard Platt Email: [email protected]

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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