1 presentation for covidien zion bar-el; ceo ideation international july 15, 2008

© 2005-2008 Ideation International Inc.


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Presentation for CovidienZion Bar-El; CEO

Ideation International

July 15, 2008



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Presentation Outline

1. Introduction

2. Who are we?

3. Where are we?

4. Creativity, innovation, inventions

5. TRIZ and I-TRIZ: applications, processes and tools

6. Covidien’s Journey. Implementation and execution

7. Q&A and closing remarks



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1. Introduction



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Presentation Objectives

Provide clear understanding on:

Ideation Methodology, applications, process and tools

Ideation differentiation and value proposition

How to institutionalize the methodology within an organization and expected R.O.I.

How Ideation can help Covidien grow organically to ensure technological and market leadership



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2. Who Are We?



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Ideation Brief History

Established in November 1992, Delaware corporation Provider of TRIZ-based services and products Acquired Kishinev School (Leading TRIZ School in Russia) Headquarters in Farmington Hills, MI The world largest group of TRIZ masters and certified TRIZ

specialists Installed customer base of over 5000 enterprises worldwide Active in 40 countries and 60 universities Trained over 250,000 people worldwide Completed over 200 projects Conducts continuous research and advancement of the

TRIZ methodology



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What is Ideation’s Business?

Inventive Problem Solving

FailureAnalysi

s

FailurePredictionA

nti

cipato

ryFa

ilure

Dete

rmin

ati

on

Education Software PublicationsAnalyticalServices

BooksPapers

BookPapers

60 yrs

30 yrs

30 yrs

20 yrsDirected

Evolution®Book

PapersUsed internally

Provider of

I-TRIZ:

Age of Application

Enhancement of Intellectual

property

Used internally 5 yrsPapers



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Ideation’s Business Philosophy

QualityCaring Commitment

Integrity

Respect

Trust

Winning

Excellence

CustomerSatisfaction

QualityQuality InnovationInnovation

CustomerCustomer

Building On ValuesBuilding On Values



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Ideation’s Vision Enablersi

MarketLeader

TechnologyLeader

Leadership

Assets

Organizational Value

Knowledge Based

Human Resources

Instruments



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Selected Successes-To-Date:Medical and Healthcare Industries

Johnson & Johnson Advanced Cardiovascular Medtronic Merck

New design, inventing around blocking patents, cost reduction, failure prediction, enhancing intellectual property, increasing market share, technology management, training

Medical instrumentation Sanitary products Packaging of pills

Pfizer Eli Lily ADT



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Selected Successes-To-Date:Universities, Hospitals and Healthcare Agencies

Colombia University Creighton University University of

Pennsylvania University of Nebraska

New design, enhancing intellectual property, increasing market share, licensing technologies, start-ups

Endoscopic surgical tool Machine-Brain interface Assisted delivery forceps Medical devices

Pandemic flu Obesity Hospital logistics Artificial retina

University of Western Ontario

Aurora Hospitals Public healthcare Iowa Health system



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3. Where Are We?



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A Characteristic of Today’s Business World

Ever-increasing diversification of products in the market today due to:

– Rapidly accelerating technological innovation

– Shortened product life-cycles

– Diversification of customer needs

New technology spawns new markets



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Trends in the Global Marketplace

1950s and 60s

American industries dominated markets American industries originated most of the world’s

technologies Consumers preferred “Made in USA” labels; USA meant

quality

1970s and 80s

Worldwide global competition Other nations capture markets Innovation is no guarantee of product success Ineffective U.S. response to market trends

1990s

and 00s

Success requires understanding customer needs and expectations

Success requires meeting market needs promptly Success requires providing value to all customers Success requires innovative products Success can be attained through Systematic Innovation

using the I-TRIZ Methodology



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Business Challenges

Expanding Breadth of Business Opportunities Matching of Technological Solutions to Market Needs

– Managing Technology, Society, and Market Increasing Probability of Success

– Rapidly Overcoming Technological Problems Shrinking Time to Market

– Development and Implementation of Products and Processes Reducing Cycle Time While Maximizing Quality &

Reliability– Integration of Innovation and Six Sigma

Maximizing Return on Capital Investment– Cost of Development, Capital Equipment, Facilities– Life Expectancy of Capital Investment

Controlling growth and profitability

I-TRIZ provides value by supporting a

variety of business needs



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Pro-activeReactiveOccasionalN/AMarket

CreativeScientificEngineeringNothing special R&D

Non bureaucraticBureaucraticBureaucraticNon bureaucraticPrinciple

EntrepreneurialDiscipline+

InitiativeDisciplinePersonal relationsGeneral

Network MatrixHierarchicalLinearStructure

Integrated on the base of Hi-Tech, networking and

TRIZ

Complex Sophisticated PrimitiveResearch

Trial & Error of a large team (Brainstorming)

Trial & Error of a talented person

Creativity

ComputerPaperPaperInformation

Culture:

Organization:

Tools for:

Generation 4Generation 3

Generation 2

Generation 1

Trends of R&D Evolution



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Evolutionary Positioning:S-Curve Analysis

Sys

t em

Cha

ract

eris

t ic

Time

1

2

3

0

4

5

Stage 0 - a system does not yet exist but important conditions for its emergence are developing

Stage 1 - a new system appears due to a high-level invention and begins developing slowly

Stage 2 - begins when society recognizes the value of the new system

Stage 3 - begins when the resources on which the original system is based are mostly exhausted

Stage 4 - begins when a new system (or the next generation of the current system) emerges to replace the existing one

Stage 5 - begins if the new system does not completely replace the existing system, which still has limited application



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Managing the Strategic Challenge of Change

Levels of Change

Events Strategy

Leading

Anticipating

Reacting

•Create new technologies and products

•Launch new markets•Raise industry standards•Redefine customer expectations•Increase pace of industry product

cycles

•Globalization of markets•Creation of new customer segments•Emergence of conflicting technologies

•Competitor’s product moves•New government policies•Unexpected customer demands

•Force other firms to follow

•Line up resources (e.g. venture partners, cross-cultural employees, currency trading skills) early

•Develop corresponding marketing channels

•Create technical options

•Release better products•Create services that exploit

change•Repackage existing products



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4. Creativity, innovation, inventions



2020

Creative activity of humans starts with the human history: ~1500 BC – myths about Dedalus – the first human-inventor Beginning of AD – descriptions of group search for solutions applied

by Scythian and German tribes – Brainstorming predecessors. 4th century of AD – attempts to create a science of invention

(heuristics) by Papp from Alexandria. 13th century – Great Art by R. Lullius (St. Lullius) published in 1480

– a technique for systematic exploration of possibilities – predecessor of morphological charts.

19th century – evolutionary theories by Lamarck and Darwin (biology), Comte and Marks (sociology). Attempts of techno- and socio-Darwinism by Spencer.

End of 19th – beginning of the 20th century - beginning of psychological research in creativity. Creative Imagination by T. Ribot, works of Freud, etc.

Middle of the 20th century - System approach by Bertalanffy, Brainstorming by A. Osborn; control questions for inventors by Osborn, Thring, Laithwait, etc.

History of Creativity



2121

Adults' Thinking Children's Thinking "TRIZ" ThinkingFear of contradictions, aspiration to avoid them

Non sensitiveness to contradictions, absence of aspiration to avoid them in their arguments

Love for contradictions, search for contradictions in problems. Understanding that revealing and formulation of an obvious contradiction is a step toward to its resolution

Metaphysical approach, consideration the objects, processes and phenomena separately, non systematically

Syncretism, aspiration to connect "everything with everything"

Systematic approach, aspiration to reveal the connections between remote objects, processes and phenomena, that often look as though they are not connected at all

Unorganized combination of various types of deductions, that are often applied erroneously

Traduction - type of deduction, erroneous from the classical logic viewpoint, were the deductions are made from the one specific fact to another specific one

Deductions by analogue, transition of deductions, ideas, solutions between various systems, with various levels of generality (an organized combination of induction, deduction, and traduction)

Combination of logic thinking and natural intuition

Natural, inborn ability to produce an intuitive deduction

Combination of logic thinking with purposely formed intuition

"Laws obedience" - use of intuitively known or verbalized laws

"Creation of laws " -spontaneous search and development of intuitive and verbalized laws

Purposeful search and development of laws; verbalization of the intuitive laws

Attempts to brain storm the difficult problem from one shot, retreat and giving the solving up in the case of failure

Substitution of the problem. If a child is not able to solve a problem, he will purposely modify the conditions and the rules and than will solve the problem, that is possible for him to solve

Substitution of the problem by another one, that can be solved by certain rules.

Components of Creative Thinking



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1950s Brainstorming by A. Osborn Morphological analysis by F. Zwicky Value Engineering Analysis by L.

Miles Taghuchi methods Fishbone diagram by Ishikawa, etc.

1960s Synectics by Gordon – professional

Brainstorming with the utilization of analogies

Revealing and resolving contradictions by J. Page

Control of though in creative work by E. Matchett

Systemic design – PERT and PATTERN

Technological forecasting

1970s Innovative design by J. Jones Evolution of technology by D.

Sahal Quality Function Deployment

(QFD) Psychological activation by

DeBono 1980s

Third Wave by A. Toffler Six Sigma HAZOP and FMEA DFMA

1990s Innovative design by J. Jones Concurrent engineering TOC by Goldratt Reengineering by M. Hammer DFSS

Innovation Techniques besides TRIZ



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Russian acronym for the Theory of Inventive Problem Solving

Systematic, structured way of thinking supported by numerous tools

Science based on patterns of invention and evolution

What is TRIZ?



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History of evolution in different areas of technology and science, social systems, business, management, art, languages, etc.

Practical experience of thousands of scientists, inventors, engineers, managers, businessmen, etc.

Feedback from solving with TRIZ thousands of problems

Over 60 Years of Development initiated and led by G. Altshuller and involving hundreds of

scientists and inventors

More than 3.000.000 worldwide patents



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The next step in TRIZ evolution developed in the USA by Ideation International Inc.

Advanced, westernized and software supported version of TRIZ

Version of TRIZ in which Problem Solving includes:– Revealing the problem– Formulating the problem– Developing the solution– Evaluating the solution– Implementing the solution

What is I-TRIZ?



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“Osborn’s Direction”Decreasing of psychological inertia, activation of human motivation, organization of effective teamwork

“Miles’ Direction”Re-structuring of existing knowledge for effective

application of the creative process

Computerization

Computerization and use of new information

technologies

Ideation TRIZCombination of all

effective approaches to creative problem

solving and control of technological

evolution

Hybridization of different approaches to creativity

“Altshuller’s Direction”Utilization of evolution patterns and methods of idea generation based on evolution patterns

Ideation TRIZ Development



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Robust Design

Ideation TRIZ

DFMA

QFD

Theory of Constraints

FMA, HAZOP

Value E

nginee

ring

TQM

Technological Forecasting

Concurrent Engineering Brainstorming

Lateral Thinking Morphological Method

And more…

Ideation TRIZ: Collaboration with Other Methods

http://members.arttoday.com/Left/category/tree/Main/close-up/Tmpl/index-noright.tmpl?a=c&b=k&c=&mclass=A&f_b=b&qclass=A&f_c=c&f_g=g&f_j=j&cols=4&q=sun&eQ=sun&f_w=w&o=657392

http://members.arttoday.com/Left/category/tree/Main/close-up/Tmpl/index-noright.tmpl?a=c&b=k&c=&mclass=A&f_b=b&qclass=A&f_c=c&f_g=g&f_j=j&cols=4&q=sun&eQ=sun&f_w=w&o=657392



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Ideation Operating System for Innovation

Inven

tive P

rob

lem

S

olv

ing

An

ticip

ato

ry F

ailu

re

Dete

rmin

ati

on

Directed Evolution®A systematic procedure for strategically evolving

future generations of technological systems

A systematic procedure for resolving tough technological problems, enhancing system parameters, improving quality, reducing cost, etc. for current generations of products and technologies.

Failure AnalysisA systematic procedure for

identifying the root causes of a failure or other undesired

phenomenon in a system, and for making corrections in

a timely manner.

Failure Prediction

A systematic procedure for identifying beforehand, and

then preventing, all dangerous or harmful

events that might be associated with a system.

Control of Intellectual

PropertyA systematic procedure for increasing IP value

and providing protection from infringement and

circumvention.

IPS

DE

AFD®

CIP



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5. TRIZ and I-TRIZ: Applications, processes and tools



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6. Covidien Journey. Implementation & Execution



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Based on Future Thinking

Vision

Values

Objectives

Strategies

Goals

Initiatives

Milestones

Mission

What we want to be

What we believe in

What we are going to do

What we are going to win

How we are going to win

How we want to be measured

Tasks to convert strategies into reality

Measurement of progress

Leadership

Teams



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Based on Market Knowledge and Market Vision of the Future

Intelligence analysis Prioritize market

segmentation Segment, profiles &

trends (market lifecycles)– Value sets, buyer

criteria, price elasticity– Trends – emerging

and declining value attributes

Competitive analysis and trends

Market share tracking Market forecasting Customer readiness

assessments Strategic planning Intellectual property

planning and licensing – technology, patent fences

Readiness assessments: organizational competencies



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Put Emphasis on...

Skills / ResourcesStrategyProduct

CompensationMarket IP

Technology IPPrioritize & Selection

Company Mission Knowledge

If new “S” curve – reuse, rebuild, replace“the house”

Build Bottom-up – IP Building Blocks & Architecture



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The Ideal: Where You Want to Be

Controllable creative process

Enhanced probability of

success of options

Management Selected

Ideal Future Position

Enhanced

Decision-Making

AbilityOpportunity

Roadmap into th

e future

E

BC

D

FG

HI

J

A

Leverage Point(if we could be here we would

have a significant

competitive advantage)



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Mapping the Future Using DE

Potential long-term problems need to be understood and taken into account.

Time

Options



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Phase 0Phase 0 Phase IPhase I Phase IIPhase II Phase IIIPhase III Phase IVPhase IV

ConceptConcept Planning & Spec.Planning & Spec. DevelopmentDevelopment Test/PrototypeTest/Prototype Scale-upScale-up

Phase 0 Phase 0 ReviewReview

Phase I Phase I ReviewReview

Phase II Phase II ReviewReview

Phase III Phase III ReviewReview

Phase IVPhase IVReviewReview

Robust DesignRobust Design

QFDQFD

TRIZTRIZ

FMEAFMEA

DF(X)DF(X)

Integrated Tools



373737

Structured Innovation

ENGINE

OpportunityIdentification

OpportunityAnalysis

Idea Generation

& Enrichment

IdeaSelection

Concept Definition

To NPP

To TSG

Gate 2 Gate 3 Gate 6

Assess

Develop Com

Gate 1

Gate n

New Concept DevelopmentTechnology Stage Gate (TSG)



383838

$

Structured Innovation OutputNumber & GP Value of Business Concepts

Delivered to Gate 3

31 2 4 5 6Commercialize

G1DevelopAssessBuild

G2 G3 G6

•Technology “fusion” from internal/ external search coupled with Rapid Screening•Cycle Time Compression -- frees resources



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Integration within Business

Controlled Growth

Sales Growth

Earnings Growth

Financial Perspective

Business Dynamics

Market Change

Industry Change

Organizational Change

Social Change

Technological Change

Business Environment

Competitive Intelligence

Regulatory Awareness

Directing the Evolution of

Technological Systems

Technology Awareness

Business Intelligence

KnowledgeApplication

Supplemental I-TRIZ Based Research of Historic and

Inherited Ideas

Business Core Competencies, Investments &

Assets

Business Core Competencies, Investments &

Assets



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Importance of Controlling theInnovation Cycle

To TP

Tb TfCas

h flo

w

Tr

Ts BET Te

Time

NetProfitPeriod

Innovation cycle time

To Opportunity occurs

TP Opportunity is perceived

Tb Project activity beginsTf Product definition and plans freeze

Tr Product is released to production

Ts First customers are satisfied

BET Break-even timeTe Project becomes extinct

From Accelerated Innovation by Marvin Patterson



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Management of Technology



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Covidien’s Journey

IPS workshop with the project – July 28

AFD Failure Prediction with a project – August

AFD Failure Analysis with a project – September

LCD technological problem – July

What to Expect?



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7. Q&A and Closing Remarks



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“Using Invention on Demand and Directed Evolution, Ideation’s I-TRIZ staff helped us turn one patented surgical device into a core of products that we used to start a company. Our company has received its second round of venture-backed funding and will be selling its first products in the next few months. Without Ideation’s help we would have licensed our technology and would be waiting for a royalty stream for a very long time. For medical devices, I-TRIZ has proven to be the best way to attack a future market, solve design problems and to get the most out of the intellectual property we have.”

Lee I. Fenicle, DirectorIntellectual Resources ManagementCreighton University

1 presentation for covidien zion bar-el; ceo ideation international july 15, 2008

Documents

triz methodology slide

introduction slide

market leadership slide

yrs papers

ideation methodology

market share

certified triz specialists

tools ideation differentiation