1. Sources of innovation (Cases) 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 Engineering POSTECH

2. Contents 1Unexpected occurrence 2Incongruities 3Process Needs 4Industry & Market Change 5Demographic Changes 6Changes in Perception 7New Knowledge

3. 3 Unexpected occurrence (1/2) ■3M Post-It –Failed glue which is super weak instead of super strong  Glue which can be lifted off without damaging the papers

4. 4 Unexpected occurrence (2/2) ■Oil shock in 1970s  Rapid growth of solar industry to reduce energy consumption Oil Shock Solar Collector

5. 5 Incongruities ■French Door Refrigerator –Refrigerator applying the principle of air circulation (Hot air rises and cool air goes down) : Inconvenience caused by more frequent use of refrigerator than freezer  Bottom freezer refrigerator

6. 6 Process Needs (1/2) ■FINEX Process –Lack of Raw Material & Fuel with High Quality –Strict Environmental Regulation –Increase of Investment & Operating cost Needs to use fine material without sinter & coke process

7. 7 Process Needs (2/2) ■Steam Iron –Spraying water separately to protect the cloth while ironing  Equipping a steam spraying function in the iron

8. 8 Industry & Market Change (2/2) ■Hybrid Vehicle –Vehicle that combines an internal combustion engine and one or more electric motors –Era of High Oil Price, Culture that concerns environment  Increasing purchase of hybrid vehicles despite of their high price and poor efficiency

9. 9 Industry & Market Change (2/2) ■Personal Printer –Introduce of digital camera  Decreasing use of film  Using personal printers, rather than using photo studios to print photos Photo studio Film Camera Digital Camera Personal Printer

10. 10 Demographic Changes (1/2) ■Adult Diaper by Unicharm (Japan) –Expanded silver industry as entering to an aging society Most adult diaper products which are difficult to be changed by the wearer alone Launching a diaper product for the elderly, “Lifree Rehabili-Pants ( ライフリーリハビリパンツ )”  Replaceable diaper without taking the outer pants off by the wearer alone

11. 11 Demographic Changes (2/2) ■Increase of Industrial Robots –Decrease of laborer & Increase of the intellectual class  Avoiding sticky floor (“3D Jobs” – Difficult, Dangerous, Dirty)  Using industrial robots for the difficult and repetitive tasks

12. 12 Changes in Perception ■Smart TV (Connected TV/Hybrid TV) –Technology convergence between computers and television sets –Increasing use of smartphone : People accustomed to using applications and integrated technologies  Television where applications can be installed and which can be used with other equipment

13. 13 New Knowledge ■Wingless Fan –Principle of jet engine: Sucking air to the lower side using built-in fans and electric motors –Bernoulli’s Principle: Pushing air to the inside wall of the ring  String air flow Wing Motor Air Suction