opportunities in tough times
TRANSCRIPT
www.GEN3.com
G3:ID ProActive: Opportunities in Tough Times
=+APPLIED DISCIPLINE
GLOBAL KNOWLEDGE
PREDICTABLE IMPACT
Feb. 25, 2009
Len Malinin
© 2008 GEN3 Partners, Inc. Confidential 2
“Don’t think of R&D, new product development, and
capital expenditures as fixed costs. They are
investments — places to set priorities. Don’t delay: By
the time your new products are ready, and your new
facilities are in place, they will be sources of competitive
advantage.”— Strategy + Business 12/16/08
© 2008 GEN3 Partners, Inc. Confidential 3
Introduction
Severe economic times are causing your competitors to become protective and reactive, a posture that your business can benefit from by getting ahead now.
GEN3 offers G3:ID ProActive, a smart and lean package of services aimed at empowering your business to proactively respond to economic challenges while gaining new strengths
G3:ID ProActive includes:
─ Cost Reduction
─ Productivity Boost
─ Product Improvement
─ IP Enhancement
─ MPV Analysis
─ Portfolio Assessment
© 2008 GEN3 Partners, Inc. Confidential 4
=+APPLIED DISCIPLINE
GLOBAL KNOWLEDGE
PREDICTABLE IMPACT
GEN3 is the Open Innovation Services Provider – combining a systematic methodology and a global knowledge network of thousand of scientists and engineers, producing real innovation impact.
Speed-to-Market
Predictable Results
IP Ownership by the Client
© 2008 GEN3 Partners, Inc. Confidential 5
Who Are Using G3:ID ProActive?
http://www.businessweek.com/technology/content/dec2008/tc20081223_490913.htm
© 2008 GEN3 Partners, Inc. Confidential 6
GEN3’s Unique Perspective
Use a scientific problem solving approach; don’t rely solely on inspiration
Innovate against the right product, not every product
Improve only features the customer will pay for, not all features
Address key problems, not initial problems
Focus on functions, not design components
Resolve contradictions, don’t compromise
Select evolutionary winners, not losers
Utilize global knowledge to complement client expertise
Adapt existing solutions, don’t always invent
© 2008 GEN3 Partners, Inc. Confidential 77
The Evolution of the Science
TRIZ
ITD
TRIZplus
G3:ID
Evolution of the Innovation Discipline
Val
ue to
Clie
nt
© 2008 GEN3 Partners, Inc. Confidential 88
The Evolution of the Science
TRIZ
Did I solve the problem
right?
Did I solve the right
problem?
Did I find a practical
solution to the right problem?
Did I deliver significant
movement along product MPV?
ITD TRIZplus G3:ID
© 2008 GEN3 Partners, Inc. Confidential 99
What Methodology Advancements have there been?
TRIZ
Did I solve the problem
right?
Did I solve the right
problem?
Did I find a practical
solution to the right problem?
Did I deliver significant
movement along product MPV?
ITD TRIZplus G3:ID
• ResolvingContradiction
• ARIZ• TESE
• Standard Solution
• Functional Modeling• Trimming
• Feature Transfer• CEC
• FOS/GKN• S-Curve
• Substantiation Tools• IP Evaluation
• Parallel Evolutionary Lines
• MPV Analysis• Innovation Roadmapping
• Business Impact Justification
• MT/TESE• Synergy Index
1960 1980 2000 Today
© 2008 GEN3 Partners, Inc. Confidential 1111
Innovation Defined
Significant movement along the main parameters of
customer value.
© 2008 GEN3 Partners, Inc. Confidential 12
G3:ID ProActive Cost Reduction
G3:ID ProActive Cost Reduction – reduce cost while improving products and processes to increase their competitive strength, including:
─ Reduce Materials – G3:ID is the most powerful tool to analyze and reduce material while improving cost and functionality. G3:ID focuses on functions, not on components, identifying harmful, wasteful, or excessive functions and algorithmically trimming them.
─ Example: A switch with two different plastic halves which required separate tooling and excessive material use was functionally analyzed and redesigned to be construed with two identical halves, saving the client, one of the largest companies in the world, millions of dollars
Original Switch Redesign New Switch
© 2008 GEN3 Partners, Inc. Confidential 13
G3:ID ProActive Cost Reduction
Reduce Energy – the power of G3:ID to identify redundancy, contradictions, or useless process stages has helped dozens of businesses reduce their energy costs.
Example: The production process at a paper manufacturer was analyzed and redesigned to utilize 99% less water and, as a result, 30% less energy for drying.
Water-deposition
Technology
Air-deposition
Technology
Mechanical
Functions Water Air
Physical and
Chemical
FunctionsWater Binder
Proposed
Technology
Air
Water
© 2008 GEN3 Partners, Inc. Confidential 14
Proposed Technology: Functional Comparison
G3:ID ProActive Cost Reduction
Low Moisture Paper Manufacturing
Low Moisture Paper Manufacturing
© 2008 GEN3 Partners, Inc. Confidential 15
G3:ID ProActive Cost Reduction.
Low Moisture Paper Manufacturing
© 2008 GEN3 Partners, Inc. Confidential 16
G3:ID ProActive Productivity Boost
G3:ID ProActive Productivity Boost – Thanks to its ability to identify unsuspected problem areas and offer straightforward solutions, G3:ID is highly effective at achieving immediate productivity increases without the need for long development cycles, substantial capital expenditures, or additional resources.
Example 1: A low-fat peanut butter production process was developed for one of the largest consumer products companies in the world, increasing production speed by a factor of 3.
Example 2: A toner filling device was developed for one of the most prominent printer manufacturers, improving its toner filling capacity by a factor 8.
Original device: clogging issues New device: vibration prevents clogs
© 2008 GEN3 Partners, Inc. Confidential 17
G3:ID ProActive Productivity Boost
Example 3: Make production of automotive spaceframe more flexible, suitable for various models produced in low volume (8/12 cylinders, 2/4 seater, …)
© 2008 GEN3 Partners, Inc. Confidential 18
Corvette Z06 Space Frame
G3:ID ProActive Productivity Boost. Flexible Design of a Spaceframe
Castings
Extrusions
© 2008 GEN3 Partners, Inc. Confidential 19
Key Problem
The spaceframe should be assembled using many small parts to ensure flexibility; at the same time, it should be assembled using a minimum number of large parts, to reduce assembly cost
Concept Idea
To manufacture the Spaceframe from one or several bent extruded beams
Advantage
—Fewer:
• Component parts, including cast components
• Steps for assembly
• Joints
G3:ID ProActive Productivity Boost. Flexible Design of a Spaceframe
© 2008 GEN3 Partners, Inc. Confidential 20
Origami - Sequence of Bending
G3:ID ProActive Productivity Boost. Flexible Design of a Spaceframe
Patent pending
© 2008 GEN3 Partners, Inc. Confidential 21
Origami Front Module
G3:ID ProActive Productivity Boost. Flexible Design of a Spaceframe
Patent pending
© 2008 GEN3 Partners, Inc. Confidential 22
Origami Front Module (with castings)
G3:ID ProActive Productivity Boost. Flexible Design of a Spaceframe
Patent pending
© 2008 GEN3 Partners, Inc. Confidential 23
Corvette Z06 Origami Space Frame – Round Tube
G3:ID ProActive Productivity Boost. Flexible Design of a Spaceframe
Patent pending
© 2008 GEN3 Partners, Inc. Confidential 24
G3:ID ProActive Product Improvement
G3:ID ProActive Product Improvement – G3:ID identifies the technical parameters that drive sales and determines which parameter(s) to improve to achieve immediate and noticeable superiority compared to the nearest competitor. Noticeable superiority fuels increased sales and facilitates word-of-mouth and other viral marketing mechanisms that allow for leaner marketing budgets.
Example 1: New parameters for teeth-whitening, developed by GEN3, were such a significant improvement over the nearest competing product that P&G had a record-selling launch year and captured the market hands-down with White Strips.
Original method: tray with whitening substance New method: strips
© 2008 GEN3 Partners, Inc. Confidential 25
Next Generation PICC (Peripherally Inserted Central Catheter)
tip
body
Example 2: Develop design for Peripherally Inserted Central Catheter which has higher strength under high pressure. The scope includes design and materials.
New DesignNew Materials
G3:ID ProActive Product Improvement
Patent pending. Patent applications US 20070135751, 20080097350, 20080097316, 20080086096.
© 2008 GEN3 Partners, Inc. Confidential 26
Next Generation PICC. Requirements to Venous Catheter
Third Stage: Next generation (very high
pressure, option to reduce diameter)
First Stage: Better quality
Second Stage: Higher pressure/ flow rate
Short Term
Middle Term
Long Term
100
300
P, psi
Project GoalsAdditional Desired
OutcomesBeyond Expectations
Time
0
500
60 psi
300
psi
G3:ID ProActive Product Improvement
Patent pending. Patent applications US 20070135751, 20080097350, 20080097316, 20080086096.
© 2008 GEN3 Partners, Inc. Confidential 27
The Method of Why
HAMLET Will you play upon this pipe?GUILDENSTERN My lord, I cannot.…
HAMLET Do you think I am easier to be played on than a pipe?
G3:ID ProActive Product Improvement.Next Generation PICC
Socrates
© 2008 GEN3 Partners, Inc. Confidential 28
GEN3 What properties are needed in the catheter?
CLIENT It needs to be white, so it looks nice.
Needs be radiopaque, so we can see it on X-Ray.
Needs to be alcohol-resistant, since we disinfect the skin.
We try to find the best material which meets all requirements.
GEN3 How do you make it radiopaque?
CLIENT We add BaSO4 to the polymer. But it makes it less alcohol resistant and reduces strength under pressure.
G3:ID ProActive Product Improvement.Next Generation PICC Next Generation PICC
Distal end
Proximal end
Dialog with Client
Patent pending. Patent applications US 20070135751, 20080097350, 20080097316, 20080086096.
© 2008 GEN3 Partners, Inc. Confidential 29
GEN3 Does the catheter have to be white inside?
CLIENT No, only on the outer diameter.
GEN3 Does it have to be radiopague over the whole length?
CLIENT No, only on the distal end.
GEN3 Does it have to be alcohol-resistant over the whole length?
CLIENT No, only at the proximal end.
GEN3 So the requirements to the different parts of the catheter are different?
CLIENT Yes.Distal end
Proximal end
G3:ID ProActive Product Improvement.Next Generation PICC Next Generation PICC
Dialog with Client
Patent pending. Patent applications US 20070135751, 20080097350, 20080097316, 20080086096.
© 2008 GEN3 Partners, Inc. Confidential 30
Contradictions:
BaSO4 is needed for radiopacity, but at the same time BaSO4 is not needed, since it deteriorates strength of the catheter.
…
Resolution: Separation in Space: Make the catheter non-uniform
Contradiction Solution
Contradiction
Contradiction
Solution
Solution
Dialog with Client
Cause-Effect Chains
G3:ID ProActive Product Improvement.Next Generation PICC Next Generation PICC
Patent pending. Patent applications US 20070135751, 20080097350, 20080097316, 20080086096.
© 2008 GEN3 Partners, Inc. Confidential 31
Different Requirements to the catheter (in Space)
0 — Not important; 2 — Important
02Flex test
0212Burst Strength
22Kink Resistance
1020Visibility
2222Chemical compatibility
201 1White color
2
0
Distal
2
0
ID
2
2
OD
2Tensile Strength
2Alcohol resistance
Proximal
TBD
TBD
ID – inner diameter, OD – outer diameter
G3:ID ProActive Product Improvement.Next Generation PICC Next Generation PICC
Patent pending. Patent applications US 20070135751, 20080097350, 20080097316, 20080086096.
© 2008 GEN3 Partners, Inc. Confidential 32
Contradictory Requirements for the Elastic Properties Leads to Synthesis of New Material
Linearity at high elongations
0
500
1000
1500
2000
2500
3000
3500
0.00 50.00 100.00 150.00 200.00 250.00
Elongation, %
Str
es
s,
psi Burst
0
50
100
150
200
250
300
0.00 5.00 10.00 15.00 20.00
Elongation, %
Str
ess,
psi
High elasticity at low elongations (up to 10–15%)
For kink and flex
0 100 200 300 400 500 600 700
Str
ess
, psi
For kink and flex
For burst
Test data 4-parameter material model (Ogden) Desired curve (qualitatively)
750
4500
1500
2250
3000
3750
Elongation, %
Existing material
G3:ID ProActive Product Improvement.Next Generation PICC Next Generation PICC
Patent pending. Patent applications US 20070135751, 20080097350, 20080097316, 20080086096.
© 2008 GEN3 Partners, Inc. Confidential 33
GEN3 Why do you need high pressure?
CLIENT During power injection, we need high flow rate through each lumen. We cannot increase diameter of the catheter in the vein.
GEN3 Can you direct the flow through both lumens?
CLIENT No, the connection system is setup to pump the medicines through each lumen separately.
GEN3 Do you pump through both lumens simultaneously?
CLIENT No Cross-section of catheter
G3:ID ProActive Product Improvement.Next Generation PICC
Contradiction Solution
Contradiction
Contradiction
Solution
Solution
Dialog with Client
Cause-Effect Chains
Dialog with Client
Patent pending. Patent applications US 20070135751, 20080097350, 20080097316, 20080086096.
© 2008 GEN3 Partners, Inc. Confidential 34
Contradiction: The partition is needed to deliver different medicines, but during the power injection, the partition is not needed.
l
pRQ eff
⋅⋅∆⋅⋅
=η
π8
4
Folded partition During power injection
Efficiency of solution: Very high
(Flow rate ~ diameter4)
G3:ID ProActive Product Improvement.Next Generation PICC
Resolution: Separation in Time: Dynamic partition
Patent pending. Patent applications US 20070135751, 20080097350, 20080097316, 20080086096.
© 2008 GEN3 Partners, Inc. Confidential 35
G3:ID ProActive IP Enhancement
G3:ID ProActive IP Enhancement – G3:ID understands the structure of IP like no other analytical tool, solving IP-related problems faster, at less cost, and with greater impact. Whether a client needs to strengthen its IP positioning through targeted product or process improvements or deconstruct a competitor’s patent for circumvention, G3:ID quickly pinpoints strengths and weaknesses and redesigns even the most complex technology with surgical speed and precision.
Example1: A key component of client’s Strategic Sourcing Initiative was an effort to reduce the purchase costs for a primary heat exchanger (PHE) currently supplied to the client by its sole source supplier, who also held the patent for the design of the PHE .
Gen3 was requested to develop a design that would bypass the patent without compromising performance.
© 2008 GEN3 Partners, Inc. Confidential 36
Strategic directions for circumvention of a patent
Strategic directions for the circumvention of a patent
Direction 2:
Employment of design solutions of expired patents (can also be patentable)
Direction 1 :
Replacement of at least one claim element with the obtainment of a new property
Direction 3:
Development of heat exchanger element based on a new principle of operation
Short term Long term
Direction 4:
Invalidation of the patent
G3:ID ProActive IP Enhancement
© 2008 GEN3 Partners, Inc. Confidential 3737
Benchmarking of patents
Solving of adaptation problems
Concept ideas
Identify claims Function analysis
Identify independent claims Flow analysis
Cause-effect chains and disadvantages
Trimming
F-leading
Cause-effect chains of independent elements
Formulation of key contradictions
Feature Transfer Formulation of key
problems
Concept ideas
Patent infringement search
Concept ideas
Identify independent elements of independent claims
Formulation of conceptual directions
Direction 1Direction 2 Direction 3
Patent analysis Analysis of the objectDirection 4:
Invalidation of the patent
G3:ID ProActive IP Enhancement. Logics of patent bypassing
© 2008 GEN3 Partners, Inc. Confidential 38
The logic of work for Direction 1
38
Claims
Dependent claims
Independent claims
Dependent Elements
Independent Elements
&
&
New Claims
G3:ID ProActive IP Enhancement. Logics of patent bypassing
© 2008 GEN3 Partners, Inc. Confidential 39
Direction 1: Replace at least one claim element with obtainment of a new property
Identify claims Identify independent claims
Cause-effect chains of independent elements
Formulation of key contradictions
Formulation of key problems
Patent infringement search
Concept ideas
Identify independent elements of independent claims
Formulation of conceptual directions
Function analysis
G3:ID ProActive IP Enhancement. Logics of patent bypassing
© 2008 GEN3 Partners, Inc. Confidential 40
SS PHE: Based on this analysis, 20 concepts were identified – 4 of which appear interesting
Concept 1.2.3 Concept 1.3.3
Concept 1.3.2
Concept 1.3.1
Concept 1.2.6
Concept 1.2.5
Concept 1.2.4
Concept 1.2.2
Concept 1.2.1
Concept 1.1.5
Concept 1.1.3
Concept 1.1.2
1. Replacement of at least one claim
1.1 Changing the shape of the cross-section of the tube
1.2 Changing the shape of flow
section
1.3 Changing the external shape
Concept 1.3.4Concept 1.1.1
Concept 1.1.4
2. Employment of already expired patents
3. Development of a new principle of action
Concept 2.1
Concept 2.2
Concept 2.3
Concept 3.1
Concept 3.2
Direction 1: Replace at least one claim element with obtainment of a new property
G3:ID ProActive IP Enhancement. Logics of patent bypassing
Patent pending
© 2008 GEN3 Partners, Inc. Confidential 41
G3:ID ProActive Analysis of Main Parameters of Value (MPVs)
G3:ID ProActive Analysis of MPVs – Customers buy products for a variety of reasons, however, a limited number of parameters really influence the customer’s buying behavior. These parameters, which are responsible for the purchase decision, are called the Main Parameters of Value (MPVs). When developing a new product, it is critically important to determine for which characteristics the market will be willing to pay premium price.
Example: A company making metal panels for commercial trucks wants to design a next generation product and determine its characteristics.
© 2008 GEN3 Partners, Inc. Confidential 42
There are several sets of MPVs, for different stakeholders within the value chain
─ MPVs of Structural Component Manufacturer
─ OEMs’ MPVs (Mercedes-Benz, Paccar, Volvo, etc.)
─ Fleets’ MPVs (WalMart, UPS, etc.)
─ End users’ MPVs (Owner/Operator, Contractor, or Fleet-employed truck drivers)
Fleet MPV: Fuel Cost
1. Identify stakeholders in the value chain and the primary stakeholder
G3:ID ProActive Analysis of Main Parameters of Value (MPVs)
© 2008 GEN3 Partners, Inc. Confidential 43
2. Identify MPVs of a product for the primary and other stakeholders
Driver Retention Cost
Maintenance Cost
Fuel Cost
Repair Cost
Legal Compliance Cost
Fleet MPVs
Engine Losses
Aerodynamic Losses
Rolling Friction Losses
Sub MPVsFleets
OEMs
Metal company
End Users
Stakeholders
MPVs of a truck for a fleet include operation cost components, which are an important factor in the decision making process. To derive the fleets’ set of MPVs, we ignore the manufacturing process, which determines the OEMs’ set of MPVs
G3:ID ProActive Analysis of Main Parameters of Value (MPVs)
© 2008 GEN3 Partners, Inc. Confidential 44
Fleet MPV: Fuel Cost
Driver Retention Cost
Maintenance Cost
Fuel Cost
Repair Cost
Legal Compliance Cost
Fleet MPVs
Engine Losses
Aerodynamic Losses
Rolling Friction Losses
Sub MPVsFleets
OEMs
Metal company
End Users
Stakeholders
3. Select a set of MPVs for improvement, based on the client’s core competencies, problem scale, restrictions (can be iterative process).
G3:ID ProActive Analysis of Main Parameters of Value (MPVs)
© 2008 GEN3 Partners, Inc. Confidential 45
4. Determine underlying physical variables responsible for selected MPVs
Fleet MPV: Fuel Cost
Driver Retention Cost
Maintenance Cost
Fuel Cost
Repair Cost
Legal Compliance Cost
Fleet MPVs
Engine Losses
Aerodynamic Losses
Rolling Friction Losses
Sub MPVs
Speed
Air viscosity
Surface energy
Yaw angle
Air temperature
Air density
Drag coefficient (Cd)
Physical variables
Fleets
OEMs
Metal company
End Users
Stakeholders
Use Functional Model or Cause-Effect Chain Approach
G3:ID ProActive Analysis of Main Parameters of Value (MPVs)
© 2008 GEN3 Partners, Inc. Confidential 46
Baseline: V1 = 60 mph, Cd = 0.6.
At V1 = 60 mph, 10% change in aerodynamic drag ⇒ 6% change in fuel consumption. ∆V2 = 10%; ∆MPV = 6%.
Z12 = ∆MPV / ∆V2 = 0.6.
Example 2
MPV1 = Fuel consumptionV2 = Drag coefficient
2
112
V
MPVZ
∂∂=
5. Determine Coefficients of SensitivityExample
G3:ID ProActive Analysis of Main Parameters of Value (MPVs)
© 2008 GEN3 Partners, Inc. Confidential 47
Variation of drag coefficient with gap length between tractor and trailer (wind tunnel model)
∆MPV / ∆V2 = 0.6 (Example 2).
At baseline dimensionless gap = 0.2, ∆V3 = 20% ⇒ ∆V2 = = 14.8%,
∆V2 / ∆V3 = 0.74,
Z13 = ∆MPV / ∆V3 = 0.6 * 0.74 = 0.42.
MPV1 = Fuel consumptionV2 = Aerodynamic dragV3 = Tractor-trailer gap
32
113
2
V
V
V
MPVZ
∂∂
∂∂=
Example 35. Determine Coefficients of Sensitivity
G3:ID ProActive Analysis of Main Parameters of Value (MPVs)
Example
© 2008 GEN3 Partners, Inc. Confidential 48
v1 v2 v3 … vm
MPV1 z11 z12 z13 z1m
MPV2 z21 z22 z23 z2m
MPV3 z31 z32 z33 z3m
…
MPVn zn1 zn2 zn3 znm
v3 close to its limits
MPV3 not selected
for improvementzij are low
Selected for Solutions
6. Select the underlying variables that yield maximum MPV improvement
G3:ID ProActive Analysis of Main Parameters of Value (MPVs)
© 2008 GEN3 Partners, Inc. Confidential 49
Gap with VGs Baseline
Example. Vortex generators can be interpreted as “virtual cab extenders” which streamline the airflow around
the tractor-trailer gap at a high speed.
7. Solve the selected problems
Example: Use the incoming airflow to generate the required aerodynamic features only at a high speed.
G3:ID ProActive Analysis of Main Parameters of Value (MPVs)
Patent pending. US patent applications 20070200390, 20070235590
© 2008 GEN3 Partners, Inc. Confidential 50
G3:ID ProActive Portfolio Assessment
G3:ID ProActive Portfolio Assessment – Now more than ever, product focus is essential. Underperforming products in strong markets must be quickly improved; those in weak markets discontinued. Performance is not just a measure of sales; it’s how all your products from all segments compare in terms of objectively measured relative value versus your key competitors. G3:ID’s ability to objectively separate your product portfolio into 4 basic categories — “Don’t Touch,” “Innovate,” “Discontinue,” or “Seek New Market” —is unmatched.
Example: Products from multiple divisions, as diverse as plastic bags to bottle caps to food containers, were assessed and recommendations were made to push the technical parameters of multiple unexpected winners up fast to gain quick advantage.
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Relative Customer Value
Gro
ss P
rofit
Pot
entia
l
Improve product features
to gain greater share of category profits
Improve profit margin
Expand into adjacent markets
Target Domain
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Relative Customer Value
Gro
ss P
rofit
Pot
entia
l
Improve product features
to gain greater share of category profits
Improve product features
to gain greater share of category profits
Improve profit margin
Expand into adjacent markets
Target Domain
© 2008 GEN3 Partners, Inc. Confidential 51
Representative Client Testimonial
=+APPLIED DISCIPLINE
GLOBAL KNOWLEDGE
PREDICTABLE IMPACT
“
”
There are four main reasons we continue to use GEN3
Breadth and depth of technical talent
Effectiveness of the methodology
Speed of project execution, and
The fact that there’s never an issue surrounding IP — we own it
Fortune 50 Consumer Packaged Goods Company
© 2008 GEN3 Partners, Inc. Confidential 52
Len MalininPrincipalGEN3 Partners, Inc.Ten Post Office Square, Ninth FloorBoston, MA 02109(617) [email protected]
www.gen3.com
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