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 of Information and Technology Laboratory (POSMIT: http://posmit.postech.ac.kr) Dept. of Industrial & Management Engineering POSTECH

2. Contents 1.Subtraction 2.Multiplication 3.Division 4.Task Unification 5.Attribute Dependency Change 6.Addition 7.Integration 8.Choosing the Right Tool 9.Discussion Questions

3. 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

4. 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 RefrigeratorKimchi Refrigerator Freezer Refrigerator Subtract

5. 5 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

6. 6 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 razorDouble-bladed razor

7. 7 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 reelNew electronic cord extension reel Only one switchMultiple switches

8. 8 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 rugFour Ruglets

9. 9 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 carrierDivisible carrier

10. 10 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

11. 11 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 modular speaker, radio, and tape player  A person can use the individual parts by themselves Divide

12. 12 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

13. 13 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

14. 14 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-sprinklerIndoor Sprinkler

15. 15 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 SummerFour Seasons

16. 16 Patterns of Innovation - Addition (1/2) ■Hiking Backpack + Part for Hiking stick –Adding a part where hikers can hang their hiking sticks OSPREY Backpack

17. 17 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

18. 18 Patterns of Innovation - Integration ■Water Purifier serving Hot & Cold water and Ice –Water Purifier + Refrigerator + Electric Kettle

19. 19 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

20. 20 Discussion Questions (1/2) ■Holes in a Brick –Reducing weight while laying bricks –Saving raw material Subtraction?

21. 21 Discussion Questions (2/2) ■Skin Stapler –Stationery stapler  Skin stapler for medical purposes Attribute Dependency Change?