Presentation for Covidien
Zion Bar-El; CEO
Ideation International
July 15, 2008
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© 2005-2008 Ideation International Inc.
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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© 2005-2008 Ideation International Inc.
1. Introduction
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© 2005-2008 Ideation International Inc.
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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© 2005-2008 Ideation International Inc.
2. Who Are We?
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© 2005-2008 Ideation International Inc.
Ideation Brief History
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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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© 2005-2008 Ideation International Inc.
What is Ideation’s Business?
Provider of
I-TRIZ:
Education
Software
Anticipatory
Failure
Determination
Inventive Problem
Solving
Publications
Books
Papers
Failure
Analysis
Analytical
Services
Age of
Application
60 yrs
30 yrs
Book
Papers
Failure
Prediction
30 yrs
Directed
Evolution®
Used internally
Enhancement of
Intellectual property
Used internally
Book
Papers
20 yrs
Papers
5 yrs
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© 2005-2008 Ideation International Inc.
Ideation’s Business Philosophy
Customer
Satisfaction
Quality
Innovation
Excellence
Respect
Winning
Customer
Trust
Caring
Integrity
Quality
Commitment
Building On Values
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© 2005-2008 Ideation International Inc.
Ideation’s Vision Enablers
i
Market
Leader
Technology
Leader
Leadership
Assets
Organizational Value
Knowledge Based
Human Resources
Instruments
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© 2005-2008 Ideation International Inc.
Selected Successes-To-Date:
Medical and Healthcare Industries
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Johnson & Johnson
Advanced Cardiovascular
Medtronic
Merck
 Pfizer
 Eli Lily
 ADT
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
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© 2005-2008 Ideation International Inc.
Selected Successes-To-Date:
Universities, Hospitals and Healthcare Agencies
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Colombia University
Creighton University
University of Pennsylvania
University of Nebraska
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University of Western Ontario
Aurora Hospitals
Public healthcare
Iowa Health system
New design, enhancing intellectual property, increasing market
share, licensing technologies, start-ups
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Endoscopic surgical tool
Machine-Brain interface
Assisted delivery forceps
Medical devices
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Pandemic flu
Obesity
Hospital logistics
Artificial retina
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© 2005-2008 Ideation International Inc.
3. Where Are We?
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© 2005-2008 Ideation International Inc.
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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© 2005-2008 Ideation International Inc.
Trends in the Global Marketplace
1950s
and 60s
1970s
and 80s
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American industries dominated markets
American industries originated most of the world’s technologies
Consumers preferred “Made in USA” labels; USA meant quality
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Worldwide global competition
Other nations capture markets
Innovation is no guarantee of product success
Ineffective U.S. response to market trends
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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
1990s
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and 00s 
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© 2005-2008 Ideation International Inc.
Business Challenges
I-TRIZ provides value by
supporting a variety of
business needs
 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
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© 2005-2008 Ideation International Inc.
Trends of R&D Evolution
Generation 1
Generation 2
Generation 3
Generation 4
Tools for:
Research
Information
Creativity
Primitive
Sophisticated
Complex
Paper
Paper
Computer
Trial & Error of a
talented person
Trial & Error of a large team
(Brainstorming)
Integrated on the
base of Hi-Tech,
networking and
TRIZ
Organization:
Structure
Linear
Hierarchical
Matrix
Network
Principle
Non bureaucratic
Bureaucratic
Bureaucratic
Non bureaucratic
N/A
Occasional
Reactive
General
Personal relations
Discipline
Discipline+
Initiative
Entrepreneurial
R&D
Nothing special
Engineering
Scientific
Creative
Market
Pro-active
Culture:
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Evolutionary Positioning:
S-Curve Analysis
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 highlevel invention and begins developing slowly
3
4
5
Stage 3 - begins when the resources on which
the original system is based are mostly exhausted
2
0
Stage 2 - begins when society recognizes the
value of the new system
Stage 4 - begins when a new system (or the
next generation of the current system) emerges
to replace the existing one
1
Time
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
Leading
Anticipating
Reacting
Events
• 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
Strategy
• 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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© 2005-2008 Ideation International Inc.
4. Creativity, innovation,
inventions
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© 2005-2008 Ideation International Inc.
History of Creativity
Creative activity of humans starts with the human history:
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~1500 BC – myths about Dedalus – the first human-inventor
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Beginning of AD – descriptions of group search for solutions applied by
Scythian and German tribes – Brainstorming predecessors.
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4th century of AD – attempts to create a science of invention (heuristics) by
Papp from Alexandria.
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13th century – Great Art by R. Lullius (St. Lullius) published in 1480 – a
technique for systematic exploration of possibilities – predecessor of
morphological charts.
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19th century – evolutionary theories by Lamarck and Darwin (biology), Comte
and Marks (sociology). Attempts of techno- and socio-Darwinism by Spencer.
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End of 19th – beginning of the 20th century - beginning of psychological
research in creativity. Creative Imagination by T. Ribot, works of Freud, etc.
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Middle of the 20th century - System approach by Bertalanffy, Brainstorming
by A. Osborn; control questions for inventors by Osborn, Thring, Laithwait,
etc.
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© 2005-2008 Ideation International Inc.
Components of Creative Thinking
Adults' Thinking
Children's Thinking
"TRIZ" Thinking
Fear 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.
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© 2005-2008 Ideation International Inc.
Innovation Techniques besides TRIZ
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1950s
1970s
 Brainstorming by A. Osborn
 Innovative design by J. Jones
 Morphological analysis by F. Zwicky
 Evolution of technology by D. Sahal
 Value Engineering Analysis by L. Miles
 Quality Function Deployment (QFD)
 Taghuchi methods
 Psychological activation by DeBono
 Fishbone diagram by Ishikawa, etc.
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 Third Wave by A. Toffler
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
1980s
 Six Sigma
 HAZOP and FMEA
 DFMA
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1990s
 Innovative design by J. Jones
 Concurrent engineering
 Systemic design – PERT and PATTERN
 TOC by Goldratt
 Technological forecasting
 Reengineering by M. Hammer
 DFSS
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© 2005-2008 Ideation International Inc.
What is TRIZ?
 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
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© 2005-2008 Ideation International Inc.
Over 60 Years of Development
initiated and led by G. Altshuller and involving hundreds of
scientists and inventors
Practical experience
of thousands of
scientists, inventors,
engineers, managers,
businessmen, etc.
More than
3.000.000
world- wide
patents
History of evolution in
different areas of
technology and science,
social systems,
business, management,
art, languages, etc.
Feedback from solving
with TRIZ thousands of
problems
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© 2005-2008 Ideation International Inc.
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What is I-TRIZ?
 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
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© 2005-2008 Ideation International Inc.
Ideation TRIZ Development
Ideation TRIZ
Combination of all
effective approaches to
creative problem solving
and control of
technological evolution
Hybridization of different approaches to creativity
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© 2005-2008 Ideation International Inc.
Ideation TRIZ:
Collaboration with Other Methods
FMA, HAZOP
Theory of Constraints
Ideation
TRIZ
Technological
Forecasting
DFMA
And more…
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© 2005-2008 Ideation International Inc.
Ideation Operating System for Innovation
A 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.
DE
AFD®
IPS
CIP
Control of
Intellectual
Property
A systematic procedure
for increasing IP value
and providing protection
from infringement and
circumvention.
Inventive Problem Solving
Failure Analysis
Anticipatory Failure Determination
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.
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© 2005-2008 Ideation International Inc.
5. TRIZ and I-TRIZ:
Applications, processes and tools
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6. Covidien Journey.
Implementation & Execution
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© 2005-2008 Ideation International Inc.
Based on Future Thinking
Leadership
Teams
Vision What we want to be
Values
Mission
Objectives
Strategies
Goals
Initiatives
Milestones
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
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© 2005-2008 Ideation International Inc.
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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© 2005-2008 Ideation International Inc.
Put Emphasis on...
Skills / Resources
Strategy
Product
Compensation
Market IP
Technology IP
Prioritize & Selection
Company Mission Knowledge
If new “S” curve – reuse, rebuild, replace
“the house”
Build Bottom-up – IP Building Blocks & Architecture
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© 2005-2008 Ideation International Inc.
The Ideal: Where You Want to Be
Opportunity
B
Enhanced
probability of
success of
options
D
A
C
E
F
Managemen
t Selected
Ideal Future
Position
G
H
J
Controllable creative process
Leverage Point
I (if we could be
here we would
have a significant
competitive
advantage)
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© 2005-2008 Ideation International Inc.
Mapping the Future Using DE
Potential longterm problems
need to be
understood and
taken into
account.
Time
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© 2005-2008 Ideation International Inc.
Integrated Tools
Phase 0
Phase I
Concept
Planning & Spec.
Phase II
Development
Phase III
Test/Prototype
Phase IV
Scale-up
Robust Design
QFD
TRIZ
FMEA
DF(X)
Phase 0
Review
Phase I
Review
Phase II
Review
Phase III
Review
Phase IV
Review
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© 2005-2008 Ideation International Inc.
Structured Innovation
Idea
Generation
&
Enrichment
Idea
Selection
Opportunity
Analysis
Gate 2
ENGINE
To NPP
Gate 3
Assess
Gate 6
Develop
Com
Concept
Definition
Opportunity
Identification
Gate 1
Gate n
New Concept Development
Technology Stage Gate (TSG)
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Structured Innovation Output
Number & GP Value of Business Concepts
Delivered to Gate 3
Build
G1
Assess
1
G2
2
Develop
G3
3
4
5
$
Commercialize
G6
6
•Technology “fusion” from internal/
external search coupled with Rapid Screening
•Cycle Time Compression
-- frees resources
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Integration within Business
Business Core
Competencies,
Investments &
Assets
Financial Perspective
Sales
Growth
Controlled
Growth
Earnings
Growth
Market
Change
Competitive
Intelligence
Knowledge
Application
Industry
Change
Business
Dynamics
Social
Change
Regulatory
Awareness
Technological
Change
Technology
Awareness
Organizational
Change
Directing the
Evolution of
Technological
Systems
Supplemental
I-TRIZ Based
Research of
Historic and
Inherited
Ideas
Business
Intelligence
Business
Environment
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© 2005-2008 Ideation International Inc.
Importance of Controlling the
Innovation Cycle
Cash flow
Innovation cycle time
Tb
To
Tf
Net
Profit
Period
Tr
Ts
TP
To Opportunity occurs
TP Opportunity is perceived
Tb Project activity begins
Tf Product definition and plans freeze
Tr
Ts
BET
Te
BET
Te
Product is released to production
First customers are satisfied
Break-even time
Project becomes extinct
From Accelerated Innovation by Marvin Patterson
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© 2005-2008 Ideation International Inc.
Management of Technology
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© 2005-2008 Ideation International Inc.
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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© 2005-2008 Ideation International Inc.
7. Q&A and Closing Remarks
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© 2005-2008 Ideation International Inc.
Lee I. Fenicle,
Director
Intellectual Resources
Management
Creighton University
“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.”
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© 2005-2008 Ideation International Inc.