patterns of innovation with finding your innovation sweet spot by goldenberg et al. rev: sep, 2012...

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Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management of Information and Technology Laborato (POSMIT: http://posmit.postech.ac.kr) Dept. of Industrial & Management Engineering POSTECH

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Page 1: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg

et al.Rev: Sep, 2012

Euiho (David) Suh, Ph.D.

POSTECH Strategic Management of Information and Technology Laboratory(POSMIT: http://posmit.postech.ac.kr)

Dept. of Industrial & Management EngineeringPOSTECH

Page 2: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

Contents1. Subtraction

2. Multiplication

3. Division

4. Task Unification

5. Attribute Dependency Change

6. Addition

7. Integration

8. Choosing the Right Tool

9. Discussion Questions

Page 3: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

3

Patterns of Innovation – Subtraction (1/3)

■ Philips DVD players – Remove the local display and all the control buttons on its DVD player• One button able to control the most common functions• Buttons for the remaining operations Graphical user interface

– Help counteract feature creep and contribute an elegant ultra-slim design

Philips DVD Players

Page 4: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

4

Patterns of Innovation – Subtraction (2/3)

■ Kimchi Refrigerator– Traditional Refrigerator• Has freezer and refrigerator together for all kind of food

– Kimchi Refrigerator• Has specialized temperature system for Kimchi makes it taste better, and also easy to store

Traditional Refrigerator Kimchi Refrigerator

Freezer

Refrigera-tor

Subtract

Page 5: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation – Subtraction (3/3)

■ Southwest airline– Formed in 1971 to serve inter-city routes in three Texas cities– Operates as a low-cost, no-frills but high customer service airline flying point-to-point,

rather than establishing the hub-and-spoke system common to its larger competitors More profit !

Long distance flight

International flight

Short distant flight

Most airlines

Short distant flight

Southwest airline

Subtract

Page 6: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation – Multiplication (1/2)

■ Gillette double-bladed razor– Add an extra blade set at a slightly different angle,

which raises whiskers so the other blade can cut them cleanly

Multiply

One-bladed razor Double-bladed razor

Page 7: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation – Multiplication (2/2)

■ Electronic cord extension– Traditional electronic cord extension reel• Has one switch only

– Multi Power Switch electronic cord extension reel• Has multiple switches• Turn on/off any cord you want to use or not., so as to save energy and enhance safety

Multiply

Traditional electronic cord extension reel New electronic cord extension reel

Only one switch Multiple switches

Page 8: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation – Division (1/4)

■ Rug– By Caesarea Creation Industry• Is an Israeli-based maker of household rugs• Come up with an unusual new type of rug for children’s room• Took a standard-sized rug and divide it into four “ruglets”

– Four “Ruglets”• Has different color and patterns (can be used separately)• Create one rug large enough for a group of children to play on

Divide

standard-sized rug Four Ruglets

Page 9: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation – Division (2/4)

■ Carrier– Traditional carrier for travel• Has no partitions

– Divisible travel bag• Has separated parts allows you to divide different kinds of stuff separately,

so as to balance the weight and become easier to get the stuff you want

Divide

Traditional carrier Divisible carrier

Page 10: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation – Division (3/4)

■ Laposte– Created in 1576, it was the mail service of France– Decompose their service in two main parts• La Poste

delivers mail and parcels

• La banque Postale Provide to their customers and offer a better service with more service like savings, current account and estate

loan

Divide

Page 11: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation – Division (4/4)

■ Functional division – An old hi-fi with its speaker and radio tape recorder in one body has given way to mod-

ular speaker, radio, and tape player A person can use the individual parts by themselves

Divide

Page 12: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation - Task Unification (1/2)

■ The Smart Card– Traditional Card• Conduct only one function

– The Smart Card• Conduct multiple functions• Save space and make our life more comfortable

Unify

Traditional Card

Smart card

Page 13: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation - Task Unification (2/2)

■ The antenna of car– by assigning a radio antenna to an automobile windshield wiper– a long and ugly antenna, can disappear in a car’s body

Page 14: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation - Attribute Dependency Change (1/2)

■ Indoor Sprinkler– By Elgo, an Israeli maker of garden sprinkler products– Traditional sprinkler• There is no dependency between the distribution channel and the time of year

Because most of Elgo’s products were sold in the summer, when demand for sprinkler is high

– What if you dissolve the dependency and offered sprinklers through year? Indoor sprinkler• Sold in four seasons (existing customer + gardeners who grow plants indoors)

Change

Outside lawn-sprinkler Indoor Sprinkler

Page 15: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation - Attribute Dependency Change (2/2)

■ Ice cream– Traditional ice cream• Sold mainly in summer

– Ice cream cake• Sold all four seasons

Change

Traditional ice cream Ice cream cake

Only Summer Four Seasons

Page 16: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation - Addition (1/2)

■ Hiking Backpack + Part for Hiking stick – Adding a part where hikers can hang their hiking sticks

OSPREY Backpack

Page 17: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation - Addition (2/2)

■ Gear Bicycle– General Bicycle: Speed only depending on the degree of pedaling

Gear Bicycle: Adding function of controlling speed with gear

General Bicycle Gear Bicycle

Page 18: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Patterns of Innovation - Integration

■ Water Purifier serving Hot & Cold water and Ice– Water Purifier + Refrigerator + Electric Kettle

Page 19: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Choosing the Right Tool

■ Highly complex products– Subtraction• Looking for features that may no longer be necessary or may detract from the product’s appeal

for a significant group of users

■ Controlling costs– Task Unification• Encouraging more efficient use of existing resources

– Subtraction• Eliminating costly product components

■ Quantitative improvements– Multiplication• Leading you out of the “more of the same” trap and toward qualitative change

■ Attribute Dependency Change– The most fruitful pattern but the most difficult to apply– Creating a matrix for internal attributes of the products and external ones

Page 20: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Discussion Questions (1/2)

■ Holes in a Brick– Reducing weight while laying bricks– Saving raw material

Subtraction?

Page 21: Patterns of Innovation with Finding Your Innovation Sweet Spot by Goldenberg et al. Rev: Sep, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management

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Discussion Questions (2/2)

■ Skin Stapler– Stationery stapler Skin stapler for medical purposes

Attribute Dependency Change?