The Corporate Innovator - Samsung

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CORPORATE STRATEGIC INNOVATION HOW ITS DONE Author: Richard Platt: Senior Managing Partner Contributing Authors: Joseph Ficalora: Managing Partner Herbert Roberts: Principal Engineer Advanced Materials - GE Aviation Property of the Strategy + Innovation Group

description

How Samsung does innovation systematically and systemically, repeatably and reliably.

Transcript of The Corporate Innovator - Samsung

Page 1: The Corporate Innovator - Samsung

CORPORATE STRATEGIC INNOVATIONHOW IT’S DONE

Author: Richard Platt: Senior Managing PartnerContributing Authors: Joseph Ficalora: Managing PartnerHerbert Roberts: Principal Engineer Advanced Materials - GE Aviation

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FEW COMPANIES ACTUALLY KNOW HOW TO INNOVATE SYSTEMATICALLY AND SYSTEMICALLY BUT THOSE THAT DO, DRIVE THEIR STRATEGIES ACCORDINGLY

THEY USE METHODS, POLICIES, TRAINING AND RULES TO GUIDE ORGANIZATIONAL BEHAVIOR AND ACTIONS (THE CULTURE)

THEY SEEK TO WIN AGAINST COMPETITORS AND SOME ARE VERY AGGRESSIVE

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THE CORPORATE INNOVATOR

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FINANCIALS

Property of the Strategy + Innovation Group4Source Asymco

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MARKETPLACE PERFORMANCE

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Source: Forbes

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CAPEX

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Source Asymco

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Key Question: “How is Samsung able to CONSISTENTLY do this?”

SAMSUNG STOCK PERFORMANCE

1053% Increase

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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

Source: www.uspto.gov 8Property of the Strategy + Innovation Group

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EARLY SAMSUNG WAS CONSIDERED A “COPY CAT” WHO MADE MARGINAL PRODUCTS, CERTAINLY NOT AS AN INNOVATOR OR RECOGNIZABLE AS A QUALITY BRAND

“WAKEUP” CALL CAME IN 1995 WHEN THE VP OF THE SAMSUNG CELL PHONE DIVISION WAS SO ASHAMED OF THE ABYSMALLY POOR CELL PHONES THAT HE’D GIVEN AWAY TO FRIENDS, THEY HELD A BONFIRE BURNING ALL CELL PHONES IN INVENTORY, THEN BULLDOZED THE ASHES

SAMSUNG COMMITTED THEMSELVES TO IMPROVING THE QUALITY OF THEIR PRODUCTS, THUS BEGAN THEIR JOURNEY

BONFIRE IN THE PARKING LOT

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IN-DEPTH ARTICLES ON SAMSUNG’S RISE

“How Samsung Became the World's No. 1 Smartphone Maker”(http://www.businessweek.com/printer/articles/105080-how-samsung-became-the-worlds-no-dot-1-smartphone-maker)

“Behind Samsung's push to rule the world”(http://www.cnet.com/news/behind-samsungs-push-to-rule-the-world/)

“Lessons From Samsung's Chairman Lee: Sometimes It Takes A Match” (http://readwrite.com/2013/03/28/lessons-from-samsungs-chairman-lee#awesm=~oCb5LqfTnCXSHj)

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MOST COMPANIES

MISUNDERSTAND THAT QUALITY

UNDERPINS INNOVATION

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WHY IS THIS IMPORTANT? COST INEFFICIENCIES OF QUALITY ARE MEASURED BY THE

COST OF NOT CREATING A HIGH-QUALITY PRODUCT OR SERVICE.

WHEN A COMPANY MISSES THE HIGH-QUALITY MARK, THERE ARE CASCADES OF RESULTS THAT CAN BE MISSED EASILY IF NO ONE IS FOCUSING IN ON, OR AWARE OF, THE AREAS WHERE THE EFFECTS WILL BE FELT MOST.

PERFECTED QUALITY SUPPORTS A HEALTHY PROFIT, AND DOES NOT HAVE UNINTENDED COSTS ATTACHED - WHILE FALLING SHORT OF QUALITY CAN SET A CASCADE OF EXPENSES INTO MOTION.

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Designed inQuality

Problems70-80%

ManufacturingDefects 20-30%

MANY RECOGNIZE COSTS SURGE WHEN A COMPANY HAS TO MOVE TO RECTIFY DELIVERY OF POOR QUALITY TO THEM FROM SUPPLIERS OR EVEN FROM THEMSELVES TO THEIR CUSTOMERS

MOST PROBLEMS ARE DESIGNED IN

Confidential | The Strategy + Innovation Group

Relative Cost and/or Difficulty to Correct a Problem

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COST OF “NOT GETTING IT RIGHT” TO THE MARKET

NOT DELIVERING A PRODUCT TO MARKET THAT FITS ACTUAL WANTS AND NEEDS IS TYPICALLY UNRECOGNIZED AS A “COST OF POOR QUALITY” IN DESIGN COSTS OF LABOR TO AMEND THE PROBLEM (NEXT GEN REDESIGN COSTS AND RECALL COSTS)

COSTS OF ADDITIONAL MATERIALS NEEDED (MORE MATERIAL EXPENDITURE THAN ORIGINALLY BUDGETED)

COSTS OF ADDITIONAL UTILITIES USED (TO BUILD ANOTHER PRODUCT THAT ISN’T WHAT THE MARKET WANTS / NEEDS)

COSTS OF LOST OPPORTUNITIES (LOSE CUSTOMERS BECAUSE YOUR COMPANY IS VIEWED AS INCOMPETENT / INCAPABLE – SEE BLACKBERRY)

LOSS OF SALES/REVENUE (PROFIT MARGIN DECREASE)

POTENTIAL LOSSES OF MARKET SHARES (ANALYSTS POV AND FORECASTS AREN’T HIT)

LOWERED SERVICE LEVELS TO CUSTOMERS (DISAPPOINTMENT BY CUSTOMERS ONLY PUSHES THEM TO ANOTHER PROVIDER)

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PROCESS APPROACH TOINNOVATION STRATEGY AT

PRODUCT & TECHNOLOGY LEVELS

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

SAMSUNG ADDRESSES GAPS FOUND IN R&D ACTIVITIES EFFECTIVENESS AND IMPLEMENTED WHAT THEY CALL A “3T” APPROACH - USING WHAT GE HAD DONE WITH SIX SIGMA AND ANALYZED IT FOR GAPS APPLYING IT 1ST IN R&D

GOAL: TO USE A STANDARDIZED AND RIGOROUS PROCESS TO GET “TECHNOLOGY BREAKTHROUGHS”, CONTINUOUSLY AND REPEATEDLY

T1 -TECHNOLOGY ROADMAPS: – Process establishing an integrated strategy

T2 - TECHNOLOGY TREE: Process establishing the Action Plan to the individual contributor level

T3 - TRIZ: Process and methodology to generate conceptual solutions.

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

WHY IS IT NECESSARY?

“The typical engineering approach is to compromise, but that approach does not lead to an invention, an invention overcomes that contradiction”

WHY USE TRIZPRONOUNCED TREEEZ, IS A SYSTEMATIC INVENTION METHOD SEE LINK ABOVE FOR MORE DETAIL

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

WHY PUT TRIZ INTO 6-SIGMA?

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

BUILT THEIR OWN 2nd GEN 6 SIGMA

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SAMSUNG STANDARD DESIGN FOR SIX SIGMA (SS DFSS) PROCESS TIGHTLY COUPLES STRATEGY, CONCEPT ENGINEERING AND TECHNOLOGY DEVELOPMENT

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

SS DFSS IS A 2ND GENERATION 6 SIGMA METHODOLOGY

ABLE TO INCREASE SPEED OF PRODUCT DEVELOPMENT. – SPECIFICALLY CELL PHONE NPD CYCLE WENT FROM 16 TO 5 MONTHS

SS DFSS IS BASED OFF OF GE DFSS + TECHNOLOGY ROADMAP + TRIZ + SYSTEMATIC TECHNOLOGY MANAGEMENT TOOL (TECHNOLOGY TREE)

STANDARD DFSS DETAILS

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Source: www.osaka-gu.ac.jp/php/nakagawa/TRIZ/eTRIZ/elinksref/eNews2003/eJapanIM-UGM031209.html*Note: conversation with Samsung Engineer at innovation conference in 2006

SAMSUNG IS ABLE TO LEAP UP AND ACROSS THE S-CURVE OF PRODUCT DESIGN AND PROCESS PERFORMANCE BY USING TRIZ TO GET BREAKTHROUGHS AND IMPROVEMENTS

SAMSUNG REQUIRES ALL PATENT FILINGS BY ENGINEERS TO RESOLVE A MINIMUM OF 2 CONTRADICTIONS IN A DESIGN PER PATENT SUBMISSION*

SYSTEMATIC TECHNOLOGY MANAGEMENT TOOL THEY CALL TECHNOLOGY TREE IS USED TO INCREASE INTERNAL PROCESS DEVELOPMENT SPEED

STANDARD DFSS DETAILS

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

WEAK R&D PROCESSES

…deployed quality systems as a part of R&D and integrated TRIZ to offset identified weak areas of 6 Sigma in design and R&D processes*

SAMSUNG IDENTIFIED WEAKNESSES IN APPLICATION OF 6 SIGMA FOR R&D: SPECIFICALLY STRATEGY AND CONCEPT ENGINEERING

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4TH GENERATION R&D: “TRIZ IS A REVOLUTIONARY CONCEPT THAT EMPHASIZES THE DEVELOPMENT OF VALUE-INNOVATED MARKET-DOMINANT PRODUCTS. THE MAIN FOCUS IS TO IDENTIFY THE POTENTIAL CUSTOMER NEEDS AND THEN EVALUATE THE R&D FROM THE BUSINESS DEVELOPMENT POINT OF VIEW. THE SAIT FOCUSES ON ESTABLISHING 4G RESEARCH AND INNOVATION SYSTEMS BY (IMPLEMENTING) CONDUCTING R&BD (RESEARCH & BUSINESS DEVELOPMENT) FOR BOTH TECHNOLOGICAL INNOVATION AND VALUE INNOVATION.”

SIX SIGMA FOR RESEARCH IN INNOVATION: “COMMITTED TO DOING THE RIGHT THINGS THE RIGHT WAY, SAIT INTEGRATES SS DFSS WITH RESEARCH. WHILE SIX SIGMA IS COMMONLY KNOWN AS A METHODOLOGY FOR IMPROVED EFFICIENCY IN MANUFACTURING INDUSTRIES, SAIT APPLIES SIX SIGMA INNOVATION TO R&D TO ENHANCE RESEARCH PRODUCTIVITY AND CREATE CUSTOMER VALUE WITH RIGHT R&D”

Source:4th Japanese IMC Users Conference. 9-10-03 www.osaka-gu.ac.jp/php/nakagawa/TRIZ/eTRIZ/elinksref/eNews2003/eJapanIM-UGM031209.htmlSource: (SAIT website) www.sait.samsung.co.kr/sait/src/saitEnIndex.html

R&D AND QUALITY STRATEGY

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RESOURCES DEPLOYED

SAIT (Samsung Advanced Institute of Technology) 2003 50 Full-Time TRIZ experts (Russian & Korean)

6 full-time Russian TRIZ experts knownSource: Fortune article on Samsung Value Improvement Program

Key Messages: Brought in TRIZ experts to build expertise, training & infrastructure to deploy TRIZ TRIZ now part of "Basic Technology training“ - considered essential engineering skill

Samsung Group of TRIZ specialists and SAIT CEO

Mr. Wook Sun – 2002 Source: http://shpackovsky.narod.ru/consulting_en.html

TRIZ* (Starting in 2000)

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REQUIREMENTS FOR SAMSUNG’S CREATIVE ELITE

Source: Haydn Shaughnessy – Forbes Magazine - “Creating Elastic Digital Architectures “ 24

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EARLY WARNING TECHNIQUE: “TRIZ has an important role in the organization and management of SAIT’s (Samsung Advanced Institute of Technology) R&D.”…

“SAIT uses it (TRIZ) to keep track of areas in which patent portfolios are building up.”

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

DISRUPTIVE STRATEGIES FOR SAIT

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GAP IDENTIFIED IN NEW TECHNOLOGY DEPLOYMENT PLANNING:

DURING PLANNING MARKET RESEARCH / BIZ PLAN DIDN’T INCLUDE OR UNDERSTAND SPECIFIC TECHNOLOGY STRATEGY OR ISSUES FOR HVM AND R&D, NOR THE OPPORTUNITY THAT NEW TECHNOLOGY THAT CAN ACTUALLY DRIVE THE MARKET (KNOWN AS TECHNOLOGY HISTORY), ALL OF WHICH CAN IMPACT PLANS AND OUTCOMES.

T1 NEW CAPABILITY: COMPREHENSIVE INTEGRATED BUSINESS AND TECHNOLOGY DEVELOPMENT STRATEGY

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

ASKED THE QUESTION OF HOW TO REINFORCE

STRATEGY

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

TECHNOLOGY ROADMAP: T1

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INNOVATION PROCESS ACTION PLAN

TECHNOLOGY TREE COMBINES WITH QFD (QUALITY FUNCTION DEPLOYMENT)

SAMSUNG RECOGNIZES THAT ENGINEERS MAY NOT KNOW EVERYTHING THEY NEED TO BE SUCCESSFUL

• CTQ (CRITICAL TO QUALITY CHARACTERISTICS) FUNNELS INFORMATION ON CUSTOMER NEEDS AND TECHNOLOGY SPECS BETWEEN MARKETING, RESEARCH AND HVM ENGINEERS

T2 TECHNOLOGY TREE: PROCESS TO ESTABLISH THE ACTION PLAN: HIERARCHY OF INFORMATION AND BREAKOUT OF TASKS BETWEEN THE MARKETING, R&D, TD AND HVM DOWN TO THE INDIVIDUAL LEVEL

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

Key Message: Result is a concrete action plan between the different disciplines & groups

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INNOVATION STRUCTURE: T2

Source: www.osaka-gu.ac.jp/php/nakagawa/TRIZ/eTRIZ/elinksref/eNews2003/eJapanIM-UGM031209.html 29Property of the Strategy + Innovation Group

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SAMSUNG RECOGNIZED NEED FOR IDEA / CONCEPT GENERATION METHODS AND FOR COMPOSING PARTIAL CONCEPTS INTO SOLUTIONS.• EXISTING METHODS: BRAINSTORMING, SIX THINKING HATS TRIGGER IDEA

SHARING & DISCUSSION, BUT INSUFFICIENT FOR CONCEPT GENERATION.

TRIZ IS A METHODOLOGY WITH TOOLSETS FOR CONCEPT GENERATION; PUGH CONCEPT METHOD IS USED TO SELECT CONCEPTS AND COMBINE PARTIAL CONCEPTS

T3 TRIZ: Process and methodology to generate conceptual solutions.

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

Key Message: Concept generation incorporated into Quality for R&D process and strategy

CLOSING THE USUAL WEAK POINTS OF DFSS

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

INNOVATION STRUCTURE: T3

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SAMSUNG’S USE OF TRIZ ACROSS THE CHEABOL

Source: http://www.koreatrizcon.kr/files/O-5%28Full%29.pdf32

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EXAMPLE OF SUSTAINABLE INNOVATION

IN A BUSINESS UNIT33

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DISPLAY DIVISION (SMD) 7/2/12: SAMSUNG CONSOLIDATED THEIR DISPLAY MANUFACTURING BUSINESS BY

COMBINING THE ENTITY ONCE KNOWN AS SAMSUNG MOBILE DISPLAY (SMD) WITH THE COMPANY’S S-LCD UNIT TO CREATE THE SINGULAR ENTITY SAMSUNG DISPLAY.

THE MERGER MAKES SAMSUNG DISPLAY THE LARGEST MANUFACTURER OF DISPLAY GLASS IN THE WORLD WITH 39,000 EMPLOYEES AND 7 FACTORIES NOW SET TO FOCUS ON LCD AND OLED PRODUCTION

Source: http://phandroid.com/2012/07/02/samsung-display-born-of-samsungs-mobile-display-and-s-lcd-units/http://www.asymco.com/2012/12/03/samsung-electronics-product-line-revenues-and-operating-income-in-context/ 34

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TECHNOLOGY PREDICTIONBASED ON “TREND OF EVOLUTION” LINES

SYSTEMS PROGRESS ON S-CURVE OF KEY PARAMETERS

SYSTEM COMPONENTS & THE INTERACTIONS BETWEEN THEM EVOLVE ALONG CERTAIN LINES

EVOLUTION ALSO OCCURS BETWEEN SYSTEM AND SUPER-SYSTEM COMPONENTS

EVOLUTION ANALYSIS HELPS PREDICT “FUTURE STAGES”

Coor

dina

tion

of E

S wi

th S

uper

-Sys

tem

TS0

MAIN PARAMETER

TIMEEVOLUTION OF TS (TECHNICAL SYSTEM)

TSn

TS1

TS2

TS3

Key Takeaway: Understanding these trends is key to faster time to market as you look at the necessary technologies providing functionality you need

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[email protected] Shpakovsky, PhD.

TREND OF TECHNOLOGY EVOLUTIONTHESE TRENDS REFLECT THE GENERAL DIRECTION OF DEVELOPMENT OF TECHNICAL

SYSTEM’S PARTS IN ACCORDANCE WITH LAWS OF TECHNOLOGY EVOLUTION

INCREASING DEGREE OF SEGMENTATION OF OBJECTS, ACTION, SURFACE, SPACE ETC.

1

2

3

INCREASING THE DEGREE OF DYNAMIZATION OF OBJECTS, ACTION, SURFACE, SPACE, ETC.

COMPLICATING THE GEOMETRICAL SHAPE OF SYSTEMS AND OBJECTS

INCREASING CONTROLLABILITY OF PARTS OF SYSTEM

COORDINATING THE SHAPES, SIZES, MATERIALS AND LOCATIONS OF OBJECTS AND SYSTEMS

RHYTHM AND ACTION HARMONIZATION

4

5

6

7

INTRODUCING NEW OBJECT AND SUBSTANCE INTO THE SYSTEM AND REMOVING THEM

The 1st Russian TRIZ Master who worked for Samsung and set up it’s initial processes on how to use TRIZ effectively. Samsung has hired multiple TRIZ Master's to seed their knowledge and capabilities - (source author's investigative research)

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TRANSITION PATTERNS

1 ADDITIVES: MODIFY SYSTEM BY ADDING TO THE INTERACTION BETWEEN TWO COMPONENTS

DESCRIPTION OF SEQUENCE OF STEPS TO DEVELOPING OF SYSTEM IN ACCORDANCE WITH TRENDS OF TECHNOLOGY EVOLUTION.

DYNAMIZATION: CHANGE THE ACTION BY MODIFYING THE DEGREES OF FREEDOM BETWEEN THE INTERACTING COMPONENTS

2

Key Message: Understanding these trends helps an organization better prepare for shifts in technology and allocation of resources

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[email protected] Shpakovsky, PhD.

DYNAMIZATION (FROM RIGID DISPLAY TO FLEXIBLE DISPLAY)

Rigid display

Folded display

E-book of SAMSUNG

Scheme

TV, Phone and Computer Display DISPLAY EVOLUTION

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[email protected] Shpakovsky, PhD.

Bendy display of Liquid Crystal Institute

Real sample of “Universal Display”

Scheme

Computer

Display with ability to convolve

DYNAMIZATION (FROM RIGID DISPLAY TO FLEXIBLE DISPLAY)DISPLAY EVOLUTION TV, Phone and Computer Display

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DISPLAY DIVISION IS USING THE TREND OF EVOLUTION OF DISPLAYS

SAMSUNG DISPLAY DIVISION R&D DIRECTION

SEES 4K AS AN INTERMEDIATE STEP TOWARDS 8K RESOLUTION IN THE NEAR FUTURE.

EXPECTS 56 % OF ALL TVS SOLD IN 2018 TO BE LARGER THAN 48”

EXPECTS 25 % OF TVS SOLD IN 2018 TO FEATURE ULTRA HD RESOLUTION.

SAYS THAT THE “ADVANCED R&D” DIVISION IS CURRENTLY RESEARCHING HOLOGRAPHIC DISPLAYS.

Source: http://www.flatpanelshd.com/news.php?subaction=showfull&id=1383821743 40Property of the Strategy + Innovation Group

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FOLDABLE, BENDABLE AND CURVED DISPLAYS

EXECUTION HAS BEEN TOUGH FOR SAMSUNG DISPLAY:

BENDABLE DISPLAYS ARE TARGETED FOR 2014

CURVED SCREENS PROVIDE A HIGHER QUALITY VIEW, BESIDES BEING ABLE TO WRAP AROUND YOUR WRIST IN WEARABLE APPLICATIONS, ALSO TARGETED FOR 2014

FOLDABLE DISPLAYS HAVE BEEN TOUTED SINCE 2011, HOWEVER RECENT REPORTS PUT THOSE ONLY READY FOR MARKET IN 2016

4K (HIGH RESOLUTION IMAGE) PHONES EXPECTED AT THE EARLIEST – 2015

SAMSUNG EXPECTS 40 % OF ALL SMARTPHONES IN 2016 TO FEATURE A FLEXIBLE OLED DISPLAY OF SOME KIND.

SAMSUNG MENTIONS STRETCHABLE DISPLAYS AS THE NEXT STEP AFTER FOLDABLE DISPLAYS

Source: http://www.flatpanelshd.com/news.php?subaction=showfull&id=1383821743 41Property of the Strategy + Innovation Group

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HOW SAMSUNG CLASSIFIES TRIZ PROJECTS

SPECIFICALLY: 40% OF SAMSUNG NEW

PRODUCT DEVELOPMENT USES TRIZ TO GAIN COMPETITIVE ADVANTAGE IN DESIGN

60% USE OF TRIZ ON MANUFACTURING AND DESIGN DEFECTS AND ISSUES

USING TRIZ TO CONSTRUCT PATENT FENCES

USING TRIZ ON MANUFACTURING EQUIPMENT IMPROVEMENTS – MAKING THE COMPETITION PAY ROYALTIES ON THEIR SOLUTIONS

Source: http://www.koreatrizcon.kr/files/O-5%28Full%29.pdf 42Property of the Strategy + Innovation Group

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DISPLAY DIVISION CEO AND MANAGING DIRECTOR USE TRIZ

FUNDAMENTAL UNDERSTANDING OF TRIZ IS REQUIRED BY ALL EMPLOYEES. CEO, DIRECTORS AND ENGINEERS ARE REQUIRED TO UNDERSTAND CLASSICAL TRIZ

TRIZ IS AT THE HEART OF THE DIVISION’S COMPETITIVE STRATEGY, AND THEY ONLY PROMOTE THOSE WHO KNOW HOW TO USE IT

Source: http://www.koreatrizcon.kr/files/O-5%28Full%29.pdf 43Property of the Strategy + Innovation Group

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SAMSUNG BU TRIZ EDUCATION

Source: http://www.koreatrizcon.kr/files/O-5%28Full%29.pdf 44Property of the Strategy + Innovation Group

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MOBILE DISPLAY RESULTS: 2009

Source: http://www.koreatrizcon.kr/files/O-5%28Full%29.pdf

IN ONE YEAR: 48 PROJECTS WITH 50 PATENTS

INTEGRATING USE OF TRIZ ACROSS MULTIPLE ORGANIZATIONS (TYPICALLY SILOES IN OTHER FIRMS)

INCREASED # OF USERS 3.5X AND THEIR COMPETENCY TO LEVEL 2 AND 3 LEVERAGED TRIZ BKM’s (BEST KNOWN METHODS) FROM OTHER SAMSUNG

DIVISIONS

X-POLLINATED SUPPORT TOOLS FROM OTHER SAMSUNG DIVISIONS TO SEED CULTURE OF INNOVATION USING TRIZ METHODS ENABLING GREATER COORDINATION WITH R&D, CAE, AND THE ANALYSIS AND MANUFACTURING TECHNIQUE DIVISION

USED A SAMSUNG A SPECIFICALLY DESIGNED VERSION OF “HOW TO USE” TRIZ METHODOLOGY (BY NIKOLAI SHAPOVSKY ) CALLED OSTM-TRIZ

INTRODUCED TRIZ BASED SOFTWARE FOR ENGINEERS TO USE HELD THEIR 1ST TRIZ FESTIVAL, A COMMON PRACTICE IN OTHER DIVISIONS

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BUILDING A ‘CREATIVE ELITE’ CULTURE

VERY CLEAR ON WHAT THAT IS, AND HOW THEY’RE GOING TO ACHIEVE IT

IN THIS SPECIFIC SAMSUNG BU, SMD, IN A 1 YEAR PERIOD OF THE 38 TRAINED IN TRIZ, 20 ACHIEVED LEVEL 3 TRIZ EXPERT STATUS

Source: http://www.koreatrizcon.kr/files/O-5%28Full%29.pdf

Source: http://www.koreatrizcon.kr/files/O-5%28Full%29.pdf 46Property of the Strategy + Innovation Group

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OPEN INNOVATION PLATFORM

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A CORE COMPETENCY IN INNOVATION

SAMSUNG CONSCIOUSLY DEVELOPED A CORE COMPETENCY IN INNOVATION – ONLY TOOK A FEW YEARS & INVESTMENT TO CREATE• SIGNIFICANT GAINS THAT ARE HARD TO REFUTE OR CHALLENGE

• SKILL SET DEVELOPMENT OF TECHNICAL PERSONNEL AND LEADERSHIP SEEN AS KEY • CONTINUALLY EXPANDING THEIR CORE COMPETENCY IN INVENTION METHODS

SAMSUNG’S CORPORATE INNOVATION CULTURE (A.K.A. THE WAY THEY DO THINGS) WAS CREATED FROM THE GROUND UP WHERE ONE DID NOT EXIST BEFORE• THE INNOVATION CULTURE NOW DRIVES IT’S COMPETENCY IS SUSTAINABLE VIA A

PROCESS WITH INVENTIVE METHODS

SAMSUNG’S PRODUCT LIFE CYCLE OF ~5 MONTHS FOR ELECTRONICS IS A SIGNIFICANT ADVANTAGE OVER COMPETITORS

COMPARATIVELY SPEAKING THEY’RE “BEST IN CLASS” IN COMPARISON TO OTHER CORPORATE INNOVATION PROGRAMS

• SAMSUNG USES TRIZ AS AN “ENABLING PROCESS” INNOVATION TYPE

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VS. OTHER HIGH TECH WHO WOULD LIKELY WIN IN HEAD-TO-HEAD COMPETITION IN THE MARKETPLACE? – IN OUR ESTIMATION SAMSUNG

5 MONTH PRODUCT LIFE CYCLE

• CAN TURN OUT MORE PRODUCTS (ITERATIONS) THAN OTHER FIRMS, THUS PROVIDING MORE JTBD’s TO CUSTOMERS – THINK HONDA / YAMAHA WAR OF THE 1980’S

USES AN EMBEDDED AND INTEGRATED INNOVATION AND QUALITY PROCESS – MOST HIGH TECH FIRMS ONLY USE A 6- SIGMA AND/OR QUALITY (TQM) APPROACH AT BEST

NO OTHER FIRM'S SEEK TO BREAK CONTRADICTIONS AS A PART OF A CONSISTENT DESIGN STRATEGY

MANY FIRMS, GOOGLE, APPLE, INTEL, SEEK TO ACQUIRE COMPANIES WHO’VE ALREADY DEVELOPED USE CASES BUT DO NOT OWN THE CAPABILITY TO IDENTIFY AND EXPLOIT IN THE MARKET IN THE SAME MANNER THAT SAMSUNG CAN 49

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COMPANIES LEVELS OF TRIZ DEPLOYMENT

Low Level

Unilever

Colgate Palmolive

Philips

Motorola

Medium Level Boeing Kimberly Clark ABB Whirlpool HP Delphi

High Level Samsung Electronics Samsung Electro Mechanics Samsung Adv. Inst. of Tech. Procter & Gamble Siemens LG Cable Christian Dior Dutch State Mines (DSM)

High Level Deployment includes multiple levels of support that assist the integration of the innovation program into an organization’s way of conducting business and streamlining operational effectiveness, efficiency and developing a sustainable competency in innovationSource: GEN3 Partners Inc, 2005

SYSTEMATIC INNOVATON TRAINED COMPANIES DO NOT AUTOMATICALLY BECOME INNOVATIVE - CONSISTENT AND INTENSIVE USE IS A DIFFERNTIATOR

Deployment

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WHO HAS SUCCESSFULLY INTEGRATED (HIGH LEVEL)

Company Integration

Adopted 6-Sigma in ‘99, then DFSS / Lean and TRIZ in ‘01 where innovation was needed to supplement 6-Sigma/DFSS/Lean. Now trains an integrated quality and innovation toolbox since ’07. >>11K projects using 6 Sigma & TRIZ, constantly adapting the methods depending on problem faced and what people need to solve – adapting the methods. see public report

Used Samsung and Intel programs as examples to follow for their own TRIZ proliferation activities – ‘05 created an Innovation Tool Academy that crafted job specific training to support specific jobs & roles, creating 3 different Invention on Demand workshop tracks: Patents on Demand, Solutions on Demand, and Innovation on Demand. These 3 program tracks are further delineated into ‘Basic’, ‘Advanced’ and ‘Professional’ levels of training and materials/tools. – see report

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WHO HAS SUCCESSFULLY INTEGRATED (LOW-LEVEL)

Company IntegrationLocalized use of TRIZ by different BU/divisions, seen as an excellent tool by some, interesting by others and some outright resistance. Organizational mgmt. structure does not force groups to adopt/use TRIZ. Philips mgmt. now funds an internal/externally facing innovation services division that utilizes TRIZ methods.

As of ‘08 have an integrated set of Quality and Innovation training, combining 6-Sigma, DFSS, Lean and TRIZ, deployed across the enterprise, to empowering employees with a structured process for innovating.

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LEVELS OF DEPLOYMENT AT LARGE CORPORATIONS

Corporate: Commitment to make innovation a core business process Broad and active support of management Internal Systematic Innovation consulting team SI / TRIZ seminars for executives and mid-level mgr’sGroup:• Middle - Management commitment Integration into the engineering environments Appointment of SI / TRIZ champions in dept.’s Advance methodology training for champions

Individual: SI / TRIZ awareness Basic methodology training Champion identification

The level of success correlates to the level of deployment

Corporate

Group

Individual

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CONCLUSIONS NEEDING A PROCESS FOR INNOVATION IS AN IMPERATIVE, THE

FAILURE RATES ARE AS HIGH AS 70-98% RANGE FOR MOST COMPANIES

MOST COMPANIES DO HAVE A PROCESS LIFE CYCLE / PRODUCT DEVELOPMENT PROCESS BUT DO NOT HAVE AN INTEGRATED PROCESS FOR INNOVATION

• ACCORDING TO BOOZ-ALLEN’S 2012 ANALYSIS, 75% OF COMPANIES DO NOT HAVE AN EFFECTIVE INTEGRATED IDEA GENERATION AND AN IDEA CONVERSION PROCESS

• TOOLS AND FRAMEWORKS FOR IDEA GENERATION AND IDEA CONVERSION ARE NEEDED TO HELP COMPANIES MANAGE THEIR CURRENT AND FUTURE PROFITABILITY

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EDUCATE YOURSELF THE DAYS OF THE "SILVER BULLET" ARE OVER. EFFECTIVE GROWTH /

INNOVATION, IS ABOUT MANAGING THE PROCESS OF INNOVATING

EFFECTIVE GROWTH / INNOVATION AS A COMPETENCY TAKES TIME TO DEVELOP AND IMPLEMENT, HAS A PROCESS, REQUIRES TRAINING, INFRASTRUCTURE, POLICIES AND INCENTIVES TO INTEGRATE, AND LIKELY REQUIRES REFINEMENT TO FIT YOUR ORGANIZATION

• DON’T BE LULLED INTO SPECIOUS ARGUMENTS OF “THIS HOW WE DID IT IN THIS COMPANY” – THEIR CORPORATE CULTURE IS DIFFERENT THAN YOURS.

• YOU WILL NEED TO CUSTOMIZE YOUR IMPLEMENTATION OF AN INNOVATION PROCESS BASED ON WHAT YOUR NEEDS ARE, NOT WHAT THEY DID AT ANOTHER COMPANY OR INDUSTRY - TALK WITH A KNOWLEDGABLE PERSON TO FIGURE OUT HOW

• KEEP IN MIND THAT OTHER COMPANIES CLEARLY DO USE SYSTEMATIC INVENTION AND INNOVATION MANAGEMENT METHODS THAT GIVE THEM SIGNIFICANT COMPETITIVE ADVANTAGE & RESULTS THAT YOU ARE NOT GETTING TODAY

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IS YOUR COMPANY IN THE TROUGH OF DISILLUSIONMENT? WHAT IS THE SCIENCE OF INNOVATION?

GARTNER'S VIEW: INNOVATION MANAGEMENT

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THE HYPE CYCLE AND FAILURETHE REAL REASON A  LOT OF INNOVATION STRATEGIES FAIL ISN’T BECAUSE OF A DEARTH OF GOOD IDEAS OR TALENT, IT’S BECAUSE OF 5 THINGS INHERENT IN A LOT OF ORGANIZATIONS. IN DESCENDING ORDER OF IMPORTANCE.

5. TURNOVER COUPLED WITH LEADERSHIP VACUUM4. RED TAPE/POLITICS/HIDDEN AGENDAS3. LACK OF BELIEF OR BUY IN FROM LEADERSHIP2. POOR PLANNING AND BAD EXECUTION1. CULTURE (IF IT EATS STRATEGY IT EATS GROWTH & INNOVATION TOO)

Source: http://directmarketingobservations.com/2011/08/05/why-digital-strategies-fail/ 57Property of the Strategy + Innovation Group

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Effects of implementing an ICMM

Managed Process for Innovation

Increase in Customer Loyalty

Increase in Quality

Increase in Predictability

Increase in Profitability

Decrease in Risk

Level -3: Undermining

Level -2: Contemptuous

Level -1: Obstructive

Level 0: Negligent

Level 1: Initial

Level 2: Defined

Level 3: Implemented

Level 4: Managed

Level 5: Adaptive

Risk

Profit

ICMM helps to combat Organizational Bias Prejudice and Dysfunction

INNOVATION CAPABILITY MATURITY MODEL INDEX

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MANAGING INNOVATION INTELLIGENTLY

“Superior results, in most cases, seem to be a function of the quality of an organization’s innovation process — the bets it makes and how it pursues them — rather than the magnitude of its innovation spending”

- Strategy Week

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Level 1: Initial – Hero Stage

Level 2: Repeatable - Project Management

Level 3: Implemented – Engineered Process

Level 4: Managed – Product & Process Quality

Level 5: Adaptive – Innovation Management & Defect Prevention

Project Risk

Productivity and

Quality

Disciplined

Standard, Consistent

Predictable

Continuously Improving

Beginning of a system

Good system

Excellent system

World Class system

Occasional Innovation

Frequent Innovation

Innovation Culture

Permanent Innovation

Time

INNOVATION CAPABILITY MATURITY MODEL INDEX

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CONTACT INFORMATION:Office #: [email protected]

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