Part 4 of 5 of the Semiconductor Strategic Inflection Point - Rise of the Asian Black Swans -07302018

Author:
Richard Platt
THE SEMICONDUCTOR OEM
STRATEGIC INFLECTION POINT
THE STORY OF THE RISE OF
THE ASIAN BLACK SWANS
Property of the Strategy + Innovation Group
“He Who Dares to Disrupt, Wins”
Contributors:
Joe Ficalora
Dr. Sergei Ikovenko
Hyo June Kim
Dr. Darrell Mann

THE SEMICONDUCTOR, HIGH-
TECH AND ELECTRONICS
OEM STRATEGIC
INFLECTION POINT OF 2017
Part 1: The Semiconductor Strategic
Inflection Point – Intel vs. Samsung
Part 2: The Story of Intel using Systematic
Innovation Methods (TRIZ)
Part 3: The Story of Samsung attacking Intel
using Systematic Innovation Methods (TRIZ)
applied on Moore’s Law
Part 4: The Story of the Rise of the Asian
Black Swans
Part 5: Impact and effect on Global Industry

AUTHOR: PRACTITIONER,
RESEARCHER & SERIAL INNOVATOR
Richard (Rich) Platt, previously worked as a Program Manager and Senior Instructor of Innovation Methods at Intel
Corporation, as a part of a corporate global innovation initiative training 850+ engineers, PM’s and scientists, as well
as recruiting and training a core cadre of 12 Intel instructors from the US, Europe, Asia and the Middle East in
systematic innovation methods, delivering $212.5M in ROI. Rich and the team were awarded the Intel Manufacturing
Excellence Award – the highest award that one can receive at Intel, as well as personally receiving 5 different
divisional recognition awards for his work.
Working at Intel for 10 years in manufacturing, operations, R&D, technology development, and IT, specific roles were;
Mfg. Engr., Technology Development PM, NPI Manager, Program Manager, Project Manager, and Projects Leader
(leading other engineers on key projects).
He holds two US patents, and multiple defensive publications.
He has achieved certifications as a Level 3 TRIZ Expert, DFSS / LSS Greenbelts and the title of Intel’s last “Innovation
Master”.
Since 2006 he’s led the Strategy + Innovation Group LLC (S+IG) focusing on assisting OEMs and SMEs build
innovative core competences with special emphasis on Advanced Complex Problem solving, developing IP
Management Strategies, Innovation Management frameworks, and creating and leading custom Innovation Training.
His specialty, in the TRIZ community, is corporate strategy and the use of innovation management tactics, corporate
integration of systematic innovation methods and combining different continuous improvement methods for raising the
top and bottom line performance of companies, and individuals.
Rich holds a BS in Industrial and Manufacturing Engineering, and hopes to get a PhD in Engineering Management of
Technology. Currently he’s working on publishing a book on corporate strategy and innovation tactics practically
applied in the corporate environment.
Property of The Strategy + Innovation Group

“Idleness is fatal only to the
mediocre.”
― Albert Camus

MADE USING TRIZ
Image Source: Valeri Souchkov (TRIZ Master – the Netherlands)

What is TRIZ?
A Systematic Innovation methodology, a tool set, a knowledge base, and
a model-based approach for generating innovative ideas and solutions for
problem solving
TRIZ expands approaches developed in systems engineering and
provides tools and systemic and systematic methods for use in:
• Problem formulation | System analysis | Failure analysis | Patterns of system
evolution (both 'as-is' and 'could be’)
TRIZ, in contrast to techniques like brainstorming (which is based on
random idea generation), is an algorithmic approach to the invention of new
systems, refining old systems, with the goal of creating additional value -
PRIMARILY BY BREAKING CONTRADICTIONS
Source: http://www.wikipedia.org/
* TRIZ is the Russian acronym for the Theory of Inventive Problem Solving, pronounced as trees

SETTING THE STAGE
Model of the problem Tool Model of the
solution
How to get to Denver? Road atlas Interstate 25
Alphabetizing names The alphabet A,B,C,D,E,F,G…
5 x 10 Multiplication chart 50
HCl + NaOH Laws of chemistry NaCl + H20
Engineering
contradictions
Altshuller’s matrix Inventive principles
In order for any discipline to be
considered a real science it must
contain; Predictive, Descriptive and
Diagnostic tools. TRIZ has all of these

BASICS
TYPICAL SOLUTION SPACE WHEN PROBLEM SOLVING
SOLUTION
PSYCHOLOGICA
L INERTIA
VECTOR
(Forcing compromise)
PROBLEM

▪ Only a small share
of most inventions
are of an inventive
character.
▪ Solutions of similar
types problems
can be employed
across all
industries and
scientific fields.
INNOVATION
▪ The innovation has
to overcome its
own endogenous
contradiction.
▪ This contradiction
is often based on
contradictory
demands of the
market.
▪ To make a solution
innovative, this
contradiction has to
be solved (instead
of minimizing it with
efficiency
methods).
CONTRADICTION
▪ The development
of technical
systems follows a
repetitive pattern.
▪ The development
of technical
systems is, to a
certain degree,
predictable.
▪ These repetitive
laws and trends
can be profitably
applied and
implemented.
PATTERN
▪ TRIZ tools offer a
methodology to
systematically
create innovative
solutions.
▪ Solutions for
complex problems
which have not
been considered
yet are the
quintessence of
the problem-
solving process.
SOLUTION
TRIZ BASICS
Systematic Innovation Analysis
THE GOAL AND THE SOLUTION IS THAT INNOVATION IS NOT RANDOM
BUT A SYSTEMATIC PROCESS.

BASICS
SOLUTION SPACE WHEN TRIZ METHODS ARE APPLIED
Variants
Variants
Variants
Variants
Variants
Variants
ChemistryPhysics
Biology
Concept 1
Concept 2
Concept 3
Concept 4
Concept 5
Concept n
SOLUTIO
N
PROBLEM

▪ The same
problems and
solutions occur
again and again
across different
industry sectors
and professions
SOLUTIONS
REPEAT
▪ The strongest
solutions identify
and eliminate
conflicts
(contradictions)
STRONG
SOLUTIONS
▪ The strongest
solutions turn
threats into useful
resources
AVAILABLE
RESOURCES
▪ Market and
technology trends
are highly
predictable
PREDICTABLE
TRIZ BACKGROUND
AFTER 1500 PERSON YEARS RESEARCH - 4 KEY DISCOVERIES

APPROACH
WHY IT WORKS BETTER THAN CONVENTIONAL PROBLEM SOLVING
THINKING
BARRIER
Identification
Trial and Error
Ideas
Analogy / Metaphor
SPECIFIC SOLUTION
GENERAL SOLUTION
SPECIFIC
PROBLEM
GENERAL PROBLEM
Analysis
Abstraction
TRIZ AXIOM: “TRIZ DOESN’T GUARANTEE ANY PROBLEM WILL BE SOLVED, BUT IT DOES GUARANTEE
THAT THERE CAN BE SYSTEM IMPROVEMENT”

TRIZ BASIC IDEA
INNOVATION METHODOLOGY
▪ TRIZ is A Systematic Innovation
methodology, a tool set, a knowledge
base, and a model-based approach for
generating innovative ideas and
solutions for problem solving.
▪ TRIZ expands approaches developed in
systems engineering and provides tools
that are systemic and systematic
methods in their use:
• Problem formulation | System analysis |
Failure analysis | Patterns of system
evolution (both 'as-is' and 'could be').
▪ TRIZ, in contrast to techniques such as brainstorming (which is based on random idea
generation), is an algorithmic approach to the invention of new systems, and the refinement
of old systems, with the goal of creating additional value.

▪ IDEAL FINAL RESULT
▪ ALTSHULLER'S MATRIX
− 39 PARAMETERS
− 40 INVENTIVE PRINCIPLES
▪ ARIZ
− INVENTIVE ALGORITHM
▪ FUNCTIONAL MODELING
▪ LAW OF INCREASING IDEALITY
− ALL SYSTEMS EVOLVE TOWARDS GREATER BENEFIT,
LESS COST AND LESS HARM
▪ 76 INVENTIVE STANDARDS
Generalized
parameters
Inventive
Principles
that are most
likely to solve
a strength vs.
weight
contradiction
“Altshuller's Contradiction Matrix”
COMMON TRIZ TOOLS

FREE TRIZ APPS TO TRY OUT

“WHY DON’T I HEAR MORE ABOUT TRIZ?”
Strictly speaking, companies once they actually figure out how to effectively
implement TRIZ methods into their engineering practices, clearly understand that
it is in the best interests to keep it quiet and not discuss it’s value – Why? –
Competitive Advantage for them
To wit, I can now tell you, that as Intel’s former Systematic Innovation Program
Manager as well as the Senior Instructor, and seemingly the last Innovation
Master ®, was that I was expressly forbidden to speak or write about TRIZ and
what it is that I did at Intel, again competitive advantage to Intel could potentially
be compromised was the reasoning I was given.
So 10 years has passed since my leaving Intel, and it’s no longer a secret that
Intel has used TRIZ.
If you don’t know what TRIZ is, see the Wikipedia link here, it has a decent
overview on what it is, or you can go to the triz-journal.com which we also
recommend.
- Richard Platt
(former) Intel Global Innovation Program Manager for Systematic Innovation & Senior Instructor

SYSTEMATIC INNOVATION TOOLBOX: MANY DIFFERENT WAYS TO INNOVATING
Source: Darrell Mann of systematic-innovation.com

THE SYSTEMATIC INNOVATION TOOLBOX
Source: Darrell Mann of systematic-innovation.com
TRIZ tools are spread across the toolbox

Generalized
parameters
Inventive
Principles
that are most
likely to
solve a
strength vs.
weight
contradictio
n
“Altshuller's Contradiction Matrix”
CLASSICAL TRIZ TOOLS
IDEAL FINAL RESULT
ALTSHULLER'S MATRIX
• 39 PARAMETERS
• 40 INVENTIVE PRINCIPLES
76 INVENTIVE STANDARDS
ARIZ
• INVENTIVE ALGORITHM
FUNCTIONAL MODELING
TRENDS OF ENGINEERING SYSTEM
EVOLUTION

BENEFITS / VALUE OF TRIZ
INVENTIVELY SOLVING EXISTING PROBLEMS
• INCREASING COMPLEXITY REQUIRES INNOVATION TO ENSURE HIGH LEVELS OF
FUNCTIONALITY, QUALITY AND PERFORMANCE
• INNOVATION IS RISKY AND EXPENSIVE (RANDOM TRIAL & ERROR), SO YOU NEED A
BETTER WAY TO DO INNOVATION - TRIZ HELPS YOU TO DO THAT, SAVE TIME, $$ AND
REDUCING THE RISK ALL ALONG THE WAY, BECAUSE YOU AREN’T SOLVING THE WRONG
PROBLEMS IN THE DESIGN OR THE PROCESS
WORKS ON MANY COMPLEX PROBLEMS
• NEW PRODUCTS, PROCESSES, FAILURE PREDICTION, SYSTEMS ANALYSIS
• TRIZ HELPS YOU TO OBJECTIVELY EVALUATE THE WINNING POTENTIAL OF THE
DIFFERENT SOLUTIONS BEING CONSIDERED.
PREDICTS THE EVOLUTION OF TECHNOLOGY
MORE INVENTIONS AND PATENTS THAN LSS, TOC COMBINED
• OUT-OF-THE-BOX AND PATENTABLE INVENTIONS - BETTER / MORE INNOVATIVE
SOLUTIONS
SHORTENING TIME TO SOLUTIONS AND AT LOWER COST

Source: “What makes Korea so enthusiastic about TRIZ? Jeongho Shin of the Korean Academic TRIZ Academy presenting at the 9th Japanese TRIZ Symposium
All 3rd Party trademarks and copyrights are the property of their respective owners

vs
• Samsung and Toshiba were competing in the same market space of washing machines
• Samsung, using TRIZ, figured out that they could get more water out of the clothes by
dehydrating them whilst still in the wash tub of the machine.
• Samsung Engineers created 2 patents; one that had a lateral shape built into the wash tub,
and another leveraging centrifugal force, see above images.
• Samsung Engineers stated that the key part to their solution finding was seeing the
mechanism and logic behind the problem to begin with, Six Sigma methods didn’t show
them
• This and other competitive projects got the CEO fully engaged with the deployment of TRIZ
across Samsung
Source: 4th Japanese IMC User’s Conference. Held Sept 10th 2003. www.osaka-gu.ac.jp/php/nakagawa/TRIZ/eTRIZ/epapers/e2004Papers/eHJKim0406/DVDPickup040609.pdf
When TRIZ was in it’s Early Days at Samsung ~2001

Problem: Aspect ratio window cannot support both
electrical and optical performance needs in GaN laser
diode.
Solution: “Ridge corner shape” - New design extended
metal on p-type electrode.
Result:
4,166% improvement in life expectancy
• 60 → 2500 hours (world’s 3rd best)
• Lower / more uniform current demand
• Improved optical properties due to better heat removal
LASER DIODE FOR NEXT GEN DVD
Source: http://dm.nikkeibp.co.jp/free/nmc/kiji/triz/kiji/kiji1.html
Too Deep
Too Shallow
Problem
Solution

DRIVING COST REDUCTIONS & NEW
PRODUCT DEVELOPMENT BENCHMARKS
Flat-panel computer monitor w/ Folding Screen
This 17-inch Sync Master LCD monitor can be folded up to
be hung on a wall. The screen and the stand come with
hinges so users can adjust the monitor's height and angle
with a gentle push. As it can lie flat, it fits in a much smaller
box, helping to cut shipping costs in 1/2.
CLP-500 color printer
Samsung's 1st color laser printer, introduced in 2004 after
nearly seven months of brainstorming by a cross-functional
team at the VIP center. Samsung says the printer, built at the
same cost as a black-and-white model, is the quietest in the
industry.
SC-DC164 camcorder
To differentiate, Samsung adopted an optical zoom lens that
magnifies an object 33 times. It also has a slot that can
access four different types of memory cards, and can store
video data on a disk compatible with any DVD player.
Source: http://images.businessweek.com/ss/06/06/samsung/source/2.htm
EXAMPLES:

Project resulted in ~$100M USD in cost reductions
DVD PLAYER
Source: 4th Japanese IMC User’s Conference. Held Sept 10th 2003.
www.osaka-gu.ac.jp/php/nakagawa/TRIZ/eTRIZ/epapers/e2004Papers/eHJKim0406/DVDPickup040609.pdf
• 9 patents
• Reduction in components from 8 to 5
• Increased reliability

Benefits and Savings:
Annual Cost Savings: $200K USD
• 3 Patents
• Decreased process TPT by 50% (50 sec TPT → 25 sec TPT)
• Resolved design defect from 15% yield hit → 5%
• Reduced Material costs of $150K
• Redesign from 8 parts to 4
• 38% material cost reduction from $0.32 to $0.20
8MM CAMCORDER
Source: TRIZ Journal. www.triz-
journal.com/archives/2004/06/02.pdf

TRIZ / SYSTEMATIC INNOVATION
BENEFITS PUBLICLY CLAIMED
Year Savings – Quoted by Samsung
2001 US$91.2M* on 40 TRIZ projects.
2002 ~US$100M This # was claimed on one project alone
using TRIZ methods.
2003 ~US$180M Ŧ 35 patents were achieved on 63 R&D
projects applying TRIZ.
~US$1B (cumulatively) Ŧ
*Source: Reported in TRIZ journal www.triz-journal.com/archives/2002/05/a/
 Source: Reported by www.xtriz.com/Training/technology.htm
Ŧ Source: Speaking at the 4th Japanese Invention Machine User Group Meeting Mr. HJ Kim of SAIT,
www.osaka-gu.ac.jp/php/nakagawa/TRIZ/eTRIZ/elinksref/eNews2003/eJapanIM-UGM031209.html
Ŧ Key Message from Samsung: “The economic benefit after applying TRIZ ideas is impossible
to count. Over the last 3 years, the Samsung TRIZ team successfully conducted project
consulting and training and built a systematic infrastructure for training TRIZ”
-- HJ Kim speaking at 4th Japanese IMC User’s Conference
(Summary of notes by a attendee on Mr. Kim’s presentation)

PUBLICLY STATED REASONS ON WHY SAMSUNG USES
SYSTEMATIC INNOVATION METHODS LIKE TRIZ ARE:
1. TO GAIN AND MAINTAIN MARKET DOMINANCE
• Company needs good solutions to remain competitive
• Company and individuals need creativity in their jobs
• Creative solutions are valued, and TRIZ as a creative inspiration tool has
significantly helped Samsung
• Engineers need to focus on creative solutions to interrupt mundane thinking
2. IF YOU FORMULATE A CONTRADICTION, YOU’LL FIND THE ELEMENT
HINDERING THE SYSTEM’S PERFORMANCE
• A system is improved by resolving the contradictions within the design
• By resolving contradictions we get ground breaking solutions
Source: Speaking at the 4th Japanese Invention Machine User Group Meeting Mr. HJ Kim of SAIT,
www.osaka-gu.ac.jp/php/nakagawa/TRIZ/eTRIZ/elinksref/eNews2003/eJapanIM-UGM031209.html

TECHNOLOGY PREDICTION
BASED ON “TREND OF EVOLUTION” LINES
• Systems progress on S-Curve of
key parameters
• Components and the
interactions between them
evolve along certain lines
• Evolution also occurs between
system and super-system
• Evolution Analysis help predict
“future stages”
TS0
Main
parameter
Time
E v o l u t I o n o f TS*
TSn
TS1
TS2
TS3
Key Takeaway: Understanding these trends is key to faster time to market as you
look at the necessary technologies providing the functionality you need in the
product or the process

triztrainer@nm.ruNikolay Shpakovsky, PhD.
TREND OF TECHNOLOGY EVOLUTION
THESE TRENDS REFLECT THE GENERAL DIRECTION OF DEVELOPMENT OF TECHNICAL
SYSTEM’S PARTS IN ACCORDANCE WITH LAWS OF TECHNOLOGY EVOLUTION
INCREASING DEGREE OF SEGMENTATION OF OBJECTS, ACTION, SURFACE, SPACE ETC.
1
2
3
INCREASING THE DEGREE OF DYNAMIZATION OF OBJECTS, ACTION, SURFACE, SPACE, ETC.
COMPLICATING THE GEOMETRICAL SHAPE OF SYSTEMS AND OBJECTS
INCREASING CONTROLLABILITY OF PARTS OF SYSTEM
COORDINATING THE SHAPES, SIZES, MATERIALS AND LOCATIONS OF OBJECTS AND SYSTEMS
RHYTHM AND ACTION HARMONIZATION
4
5
6
7
INTRODUCING NEW OBJECT AND SUBSTANCE INTO THE SYSTEM AND REMOVING THEM
The 1st Russian TRIZ Master who worked for Samsung and set up it’s
processes on how to use TRIZ effectively for them, took them 3 years,
and 100’s of people involved

TRANSITION PATTERNS
1 ADDITIVES: MODIFY SYSTEM BY ADDING TO THE INTERACTION BETWEEN TWO COMPONENTS
DESCRIPTION OF SEQUENCE OF STEPS TO DEVELOPING OF SYSTEM IN ACCORDANCE WITH
TRENDS OF TECHNOLOGY EVOLUTION.
DYNAMIZATION: CHANGE THE ACTION BY MODIFYING THE DEGREES OF FREEDOM BETWEEN
THE INTERACTING COMPONENTS
2
Key Message: Understanding these trends helps an organization better prepare
for shifts in technology and allocation of resources, personnel and funding

DYNAMIZATION (FROM RIGID DISPLAY TO FLEXIBLE DISPLAY)
Rigid display
Folded display
E-book of
SAMSUNG
Scheme
TV, Phone and Computer Display
DISPLAY EVOLUTION

Bendy display of
Liquid Crystal Institute
Real sample of “Universal Display”
Scheme
Computer
Display with ability to convolve
DYNAMIZATION (FROM RIGID DISPLAY TO FLEXIBLE DISPLAY)
DISPLAY EVOLUTION TV, Phone and Computer Display

DISPLAY DIVISION IS USING THE TREND OF
EVOLUTION OF DISPLAYS
SAMSUNG DISPLAY DIVISION R&D DIRECTION (2012)
• SEES 4K AS AN INTERMEDIATE STEP TOWARDS 8K RESOLUTION IN
THE NEAR FUTURE.
• EXPECTS 56 % OF ALL TVS SOLD IN 2018 TO BE LARGER THAN 48”
• EXPECTS 25 % OF TVS SOLD IN 2018 TO FEATURE ULTRA HD
RESOLUTION.
• SAYS THAT THE “ADVANCED R&D” DIVISION IS CURRENTLY
RESEARCHING HOLOGRAPHIC DISPLAYS.
Source: http://www.flatpanelshd.com/news.php?subaction=showfull&id=1383821743

FOLDABLE, BENDABLE AND
CURVED DISPLAYS
EXECUTION HAS BEEN TOUGH FOR SAMSUNG DISPLAY:
• BENDABLE DISPLAYS ARE TARGETED FOR 2014
• CURVED SCREENS PROVIDE A HIGHER QUALITY VIEW, BESIDES BEING ABLE TO WRAP
AROUND YOUR WRIST IN WEARABLE APPLICATIONS, ALSO TARGETED FOR 2014
• FOLDABLE DISPLAYS HAVE BEEN TOUTED SINCE 2011, HOWEVER RECENT REPORTS PUT
THOSE ONLY READY FOR MARKET IN 2016
• 4K (HIGH RESOLUTION IMAGE) PHONES NOT EXPECTED UNTIL - AT THE EARLIEST –
2015
• SAMSUNG EXPECTS 40 % OF ALL SMARTPHONES IN 2016 TO FEATURE A FLEXIBLE
OLED DISPLAY OF SOME KIND.
• SAMSUNG MENTIONS STRETCHABLE DISPLAYS AS THE NEXT STEP AFTER FOLDABLE
DISPLAYS
Source: http://www.flatpanelshd.com/news.php?subaction=showfull&id=1383821743

DISPLAY (SMD) BUSINESS
UNIT TRIZ RESULTS: (2009)
Source: http://www.koreatrizcon.kr/files/O-5%28Full%29.pdf
IN ONE YEAR:
• 48 PROJECTS WITH 50 PATENTS
• INTEGRATING USE OF TRIZ ACROSS MULTIPLE ORGANIZATIONS (TYPICALLY
SILOES IN OTHER FIRMS)
• INCREASED # OF USERS 3.5X AND THEIR COMPETENCY TO LEVEL 2 AND 3
• LEVERAGED TRIZ BKM’s FROM OTHER SAMSUNG DIVISIONS
• X-POLLINATED SUPPORT TOOLS FROM OTHER SAMSUNG DIVISIONS TO SEED
CULTURE OF INNOVATION USING TRIZ METHODS ENABLING GREATER
COORDINATION WITH R&D, CAE, AND THE ANALYSIS AND MANUFACTURING
TECHNIQUE DIVISION
• USED A SAMSUNG A SPECIFICALLY DESIGNED VERSION OF “HOW TO USE”
TRIZ METHODOLOGY (BY NIKOLAI SHAPOVSKY ) CALLED OSTM-TRIZ
• INTRODUCED TRIZ BASED SOFTWARE FOR ENGINEERS TO USE
• HELD THEIR 1ST TRIZ FESTIVAL, A COMMON PRACTICE IN OTHER DIVISIONS
Confidential | The Strategy + Innovation Group

HOW SAMSUNG CLASSIFIES TRIZ PROJECTS
SPECIFICALLY:
40% OF SAMSUNG NEW PRODUCT
DEVELOPMENT PROJECTS USE
TRIZ TO GAIN COMPETITIVE
ADVANTAGE IN DESIGN
60% USE OF TRIZ ON
MANUFACTURING AND DESIGN
DEFECTS AND ISSUES
USING TRIZ TO CONSTRUCT
PATENT FENCES – CREATING
STRATEGIC INTELLECTUAL
PROPERTY
USING TRIZ ON MANUFACTURING
EQUIPMENT IMPROVEMENTS –
MAKING THE COMPETITION PAY
ROYALTIES ON THEIR SOLUTIONS
Source: http://www.koreatrizcon.kr/files/O-5%28Full%29.pdf

ASSUMPTIONS ABOUT SAMSUNG’S HYBRID BUSINESS MODEL

SOME INCORRECT ASSUMPTIONS ABOUT SAMSUNG’S
HYBRID BUSINESS MODEL
Analysts, and others external to Samsung, for the most part, really
don’t get it about strategy and innovation, primarily because they
misunderstand how profitable systematic innovation is actually
achieved. Samsung doesn’t have those issues though. Specifically to
that point, Western company’s don’t innovate anywhere close to like
Samsung, as they do it across technology, processes, products,
services and software, they actually set out to out-innovate their
competitors and they have specific tools, methods and heuristics for it.

As far as diversification and strategy development are concerned as they are practiced at
Samsung, (1) it’s done at a SBU level, (2) driven by a specific process, called Samsung Standard
Design for Six Sigma (SS DFSS), it is a 2nd generation DFSS methodology, not practiced outside
of Samsung. Samsung engineers and managers, senior one’s too, are required to have a
competency in systematic innovation methods (TRIZ), it is standardized and required training.
Competency in solving complex problems is heralded at Samsung, people get rewarded as such.
SOME INCORRECT ASSUMPTIONS ABOUT SAMSUNG’S
HYBRID BUSINESS MODEL
Analysts, and others external to Samsung, for the most part, really
don’t get it about strategy and innovation, primarily because they
misunderstand how profitable systematic innovation is actually
achieved. Samsung doesn’t have those issues though. Specifically to
that point, Western company’s don’t innovate anywhere close to like
Samsung, as they do it across technology, processes, products,
services and software, they actually set out to out-innovate their
competitors and they have specific tools, methods and heuristics for it.

MAJOR S. KOREAN INDUSTRIAL COMPANIES AS SUPER-USERS OF
SYSTEMATIC INNOVATION (TRIZ) METHODS (2018)
Automotive:
Semiconductor / High-Tech / Electronics:
Metal Casting and Investments: Cables for Power and Telecommunication:
#2 in it’s industry
#1 Semiconductor company
#1 Largest Memory producer
#1 Television industry
#2 Largest Memory producer
#5 Semiconductor company
#2 Television industry

S. KOREAN COMPANIES ARE THE TRIZ (SYSTEMATIC
INNOVATION) METHODS SUPER-USERS (2018)
32 Companies use
TRIZ, 5 of them very
large, are rigorously
driving the use of it
#2 Globally in Steel production
#3 Globally in Automotive
#5 Largest Semiconductor by Revenue
#3 Globally in DRAM technology
#1 Largest Semiconductor by Revenue
#1 Globally in DRAM technology
#1 Global Television industry
#2 in the Global Television industry
29 Universities, including
40% of the top 10 major
nationally ranked schools,
teaching the use of TRIZ:
#3 Nationally ranked and #244
World Univ. Rank
World Univ. Rank
World Univ. Rank
#2 Nationally ranked, and #175
World Univ. Rank
#72 Nationally ranked, #3261
World Univ. Rank
Source: http://www.webometrics.info/en/Asia/Republic%20Of%20Korea
Source: Wikipedia and Bloomberg websites

THE KATA IS A ACADEMIC “HOME BASE” FOR TRIZ
PRACTITIONERS IN S. KOREA
Copyright © | the Strategy + Innovation Group
The Korean Academic
TRIZ Association
(KATA) clearly
supports, enables and
helps to proliferate
TRIZ “best practices”
using the methods and
shares them across
multiple companies,
thereby helping each
other company to be
stronger and more
capable with the
methods.
When Sharing: Each participant’s (company) representatives are careful not to
share Intellectual Property (IP), thereby protecting the company, but still being
able to share how they used the methods and the outcomes / results they got
from their efforts. This is collaborative learning as a group, likewise the
Japanese TRIZ Society is now also acting in the same fashion.

S. KOREAN TRIZ SUPER USERS
DIDN’T HAPPEN OVERNIGHT

Lowering the Barrier to Acceptance and Adoption:
The KATA and the S. Korean Super-Users of TRIZ have sought
to be helpful to other companies, here is a KATA driven set of
questions given to managers at Samsung, POSCO, Hyundai and
SK Hynix.
If we compare this to the time when Toyota was sharing (in a
limited fashion) about it’s Toyota Production System (TPS) with
other companies and consultants, where it was later discovered
that they had held back certain aspects to TPS. This was based
off of the perception that they would / could lose their competitive
advantage as a result of sharing too much and chose to not give
all of their secrets away.
This “hoarding knowledge” attitude isn’t witnessed at either the
Korean or Japanese TRIZ communities of practice. Although we
still haven’t seen a presentation from Toyota yet, so they still may
be playing the game they played with TPS, even with their
Japanese counterparts.
The S. Korean Super-Users, don’t seem to have that problem
either, see the list of questions and answers they provided to the
KATA to help other companies get on board with using TRIZ, they
are lowering the barrier to adoption and acceptance.
S. KOREAN SUPER-USERS:
Q&A FOR NEWCOMERS TO TRIZ

S. KOREAN SUPER-USERS:
Q&A FOR NEWCOMERS TO TRIZ

TRIZ in S. Korean Universities
• TRIZ tools, methods and heuristics are used as a basis for “Creative Design” classes
• Government and Research institutions in S. Korea provide funding and support for
TRIZ applications (solving problems)
Clear and compelling
evidence of strong academic
support for S. Korean
corporations looking for
employees who have the
necessary skillset and tools
to come into a company and
actually be able solve tough
complex problems. No other
nation or geographical
location comes close to
providing this level of
technical problem solving skill
support from their academic
institutions
Because of the # of S. Korean firms and that they do share best practices that have resulted in fantastic
gains for the firms that have successfully embedded TRIZ/SI methods into their design and manufacturing
processes, they have managed to leverage network effects to create a Strategic Inflection Point in the
semiconductor, High Tech and Electronics industries, because this was not expected to happen before,
would be considered a “Black Swan event”.

SK Hynix is a South Korean memory semiconductor
supplier of dynamic random-access memory (DRAM)
chips and flash memory chips.
Founded as Hyundai Electronic Industrial Co., Ltd. in 1983 and known as Hyundai Electronics,
the company has manufacturing sites in Korea, the United States, China and Taiwan.
Hynix memory is used by Apple in some of their iMac, MacBook and MacBook Pro
computers. Apple's A9 chipset is onboard together with a SK Hynix RAM module believed to
be "likely the same 2 GB LPDDR4 mobile DRAM found in the iPhone 6s".
Hynix memory is also used by Asus in their Google-branded Nexus 7 tablet (both 2012 and
2013 models, respectively), an OEM provider for IBM System x servers, and is used in
desktop PCs and laptops and Dell, HP Inc. and Hewlett Packard Enterprise (formerly
Hewlett-Packard) have also used Hynix memory as OEM equipment.
Source: Wikipedia
SK Hynix is the world’s 2nd largest memory chipmaker and the world’s
5th largest semiconductor company.
Other products that use Hynix memory include:
DVD players Cellular phones
Set-top boxes Personal Digital Assistants
Networking Equipment Hard Disk Drives

Source: Cho Jun Hee, “Practical TRIZ approach to Semiconductor etching problem solving” –
TRIZFest Kiev Ukraine, 2013
SEMICONDUCTOR ETCHING
PROBLEM SOLVED USING TRIZ
This means they deployed TRIZ
training and use across the entire SK
Hynix enterprise, in fact all
engineering disciplines in the factory
and within the design community

Source: SK Hynix
All 3rd Party trademarks and copyrights are the property of their owners
Vertical NAND Structures

3D NAND FLASH ARCHITECTURES
Key Features -P+ SONOS Cell -TANOS Cell Floating Gate ?
Key Issues Large cell size
Reliability
Large cell size
SL Resistance
Process of bit
separation
Disturbance
?
Transistor Gate all around,
Salicided Poly Si
gate
Gate all around,
Damascene gate
Gate all around,
Salicided Poly Si gate
?
Storage Charge trap Charge trap Floating Gate ?
Source: SK Hynix

MATERIALS AND PROCESS CHALLENGES
Source: Applied Materials
Projects: 3D NAND Flash
Yield and Retention Factors
• Defect monitoring inside the 3D structure – when isn’t that a
problem
• Metrology for stabilizing the patterning
• Metrology in general
• Stable patterning on the multi-stack architecture
• Requires precise cell optimization

To be a viable technology DRAM requires:
• Single crystal silicon with low thermal budget, b/c of low charge leakage
• New, novel monolithic 3D DRAM architecture with shared litho steps
KEY TECHNOLOGY DIRECTIONS FOR
NAND FLASH
MONOLITHIC 3D WITH SHARED LITHO STEPS FOR MEMORY LAYERS
Source: SK Hynix

3D DRAM – Through Silicon Via (TSV)
3D DRAM IC Packaging Technology that will be used for boosting both DRAM packaging
densities and performances
SK Hynix and Samsung are both attacking the
complex problems associated with next generation
DRAM technology, 3D NAND specifically, and using
TRIZ to do it. They have already created solutions in
this domain that will be better than their competitor’s
offerings over time. And now Samsung and SK Hynix
are co-developing a factory together. Past behavior
being indicative of future behavior being any kind of
indicator of what they’re going to do, is likely take on
Micron Technology and kill ‘em off
Source: SK Hynix and Lam Research
NEW ALTERNATIVE FLASH MEMORY
3D DRAM / NAND PROPOSED

RISK AND OVERCAPACITY COMING TO THE
MEMORY MARKET? OR IS IT
Mr. McClean (from icinsights.com) noted that memory chip vendors are
dramatically increasing their capital expenditures this year (2017) to add
capacity in light of the memory boom,
a situation that can quickly lead to overcapacity and a rapid deflation of ASPs.
Samsung spent $4.3 billion on semiconductor capex in the first quarter
alone and is likely to spend more than $15 billion for the full year, a 30%
increase over 2016.
Meanwhile, rival SK Hynix increases its capex by 16% (2017), McClean
said.
"When they catch up in capacity, memory prices could retreat quite
quickly," McClean said.
—Dylan McGrath is the editor-in-chief of the EE Times
Source: EETimes (https://www.eetimes.com/document.asp?doc_id=1331676)

Image Sources: CES 2018
LG Electronics is a S. Korean multinational electronics company headquartered in Yeouido-
dong, Seoul, South Korea, and is part of the LG Group, employing 82,000 people working in
119 local subsidiaries worldwide. It is the #2 company in the television industry.
With 2014 global sales of USD 55.91 billion, LG comprises four business units:
1. Home Entertainment
2. Mobile Communications
3. Home Appliance & Air Solution
4. Vehicle Components
And with Starion India as its main production vendor for
refrigeration and washing machines in the Indian sub-
continent.
TELEVISIONS / DISPLAYS

World’s 1st 65”
Rollable Display
SIGNIFICANT TECHNOLOGICAL
ADVANCEMENTS USING
SYSTEMATIC INNOVATION
METHODS
You just don’t get
these kinds of
technological
advancements just
by being smart and
working hard, you
are using a method,
not art but science

Source: “Samsung OLED TV Marketing Plan” by Baraa Abudawod, Christophe Perrenoud, Chris Davis, Farshad Madani, 03/13/2012
From a cost benefit analysis
standpoint, the larger the
screen the better the
profitability and the margin in
this industry. Next the qualities
you get from the larger, crisper
picture as the end-user / buyer
that addresses some need or
desire that warrant a purchase.
Advantages of OLED Technology

World’s 1st 8K OLED 88” LCD
Samsung’s Display Division (SDI)
and LG Electronics have directly
competed against one another for
years in the television / display
business.
Numerous TRIZ Practitioners and
Experts that were at Samsung, later
transferred over to LG Electronics
See how Technology Development,
R&D and NPD have been mirrored in
these two companies, see slides
looking at a Samsung SBU and how
they innovate on SlideShare.
AS
MEASURED
BY:

August 2015 – Tablets/Notebooks: LG announced the first
Bluetooth keyboard that folds up along the four rows of keys that
can be tossed in a purse or pocket. The Rolly Keyboard is made of
solid plastic. Two tiny plastic arms fold out from the end of the
keyboard to support a tablet or smartphone, and it can toggle
between two different Bluetooth-connected devices at a time.
Battery life is an expected three months on a single AAA battery.
MORE TECHNOLOGICAL
ADVANCEMENTS:(Reuters) 06/17/17 – Appliances: The Indian arm of
South Korea’s LG Electronics Inc has begun selling a
TV with a feature that it says repels mosquitoes, which
can spread diseases such as malaria, Zika and dengue
fever. The TV’s “Mosquito Away Technology” uses
ultrasonic waves that are inaudible to humans but cause
mosquitoes to fly away. The same technology, which
was certified as effective by an independent laboratory
near Chennai, India, has been used by LG in air
conditioners and washing machines, that you see here.
Source: http://www.lg.com/africa/split-air-conditioners/lg-HS-C1865NN8
Source: https://www.theverge.com/2015/8/27/9213551/lg-rolly-keyboard-announced

JAPANESE TRIZ SOCIETY ENABLES OTHER
ASIAN BLACK SWANS
Source: Presentation by Mr. Toru Nakagawa at the PSST 2012 International Conference on Problem Solving Strategies & Techniques Held at Tehran,
Iran, on Feb. 22-23, 2012

AFTER A GOOD START, TRIZ STARTS TO FIZZLE IN
JAPAN…ONE MAN KEEPS IT ALIVE
Iran, on Feb. 22-23, 2012

AFTER THE EARLY TRIZ FIZZLE IN JAPAN…
Iran, on Feb. 22-23, 2012
RESURGENCE OCCURS AND A COMMUNITY DEVELOPS

TRIZ RESURGENCE IN JAPAN
Iran, on Feb. 22-23, 2012
More application and case studies are developed, then multi-company discussion
study groups start to form, creating a shared learning environment for the
participants & companies. By 2018 the Japanese TRIZ community is well founded
and enabling the industry and academia around it, reciprocally.

Shinwa Controls Company Ltd: Develops, designs, manufactures and sells
Precision Temperature & Humidity Air-supply Systems, Chillers, Superior Pure Air-
supplying Systems, Peltier Cooling Applied Systems, Solenoid Valves, Motor valves,
and Micro Valves. Selling most of their equipment to the semiconductor industry,
they are considered a CapEx vendor or supplier.
Examples of Products:
Source: Japan TRIZ Society Web pages

Project: Air Temperature / Liquid Supply Controlling equipment for semiconductor
equipment and process
Requirements: this equipment set controls temperature and humidity which are both
required in manufacturing processes related to semiconductor and FPD
Project Objectives:
High uncertainty of the customer’s needs (Semiconductor OEM) coinciding with Shinwa’s
current product development plans
Concern that a potential solution is inadequate, potentially a superficial solution, that
doesn’t address the real root cause
Proposed Approach: In
order to break the situation
down and resolve it, the team
applied QFD (a Six Sigma
technique for capturing the
Voice of the Customer) and
TRIZ to develop an innovative
solution for the product that
meets the customer’s needs.

Underlying Project Target: Break Away from the “order taking business” with
Semiconductor OEM’s and become the master of their own destiny.
By their own admission, the Shinwa team, made sure to bring in additional expertise
from outside consultants since they had greater experience using TRIZ methods
1. QFD: Listen intently to the Customer’s Voice
2. TRIZ: Obtain innovative ideas
3. Commence Development activity → Make it into a product

Then a Shinwa Senior Manager shows up: Please make the design in 50% of
the old system’s footprint. A new requirement was added to the problem solving
activity, this is also known as the issue of scope creep.

Full analysis using TRIZ methods:

TRIZ Functional Model and Cause and Effect Analysis

DRIVING TO A MORE IDEAL COMPACT DESIGN…
….they identified additional benefits for the customer

Extra / Bonus Results: Two other projects were kicked off as a result of
this project, again using TRIZ methods, the 1st in the area of a new
design for a solenoid valve and the 2nd for a new motor valve design

Meltex Inc. engages in the R&D, manufacturing,
and sale of plating chemicals to customers in
Japan and other Asian countries.
Industries it serves: The company provides
surface treatment chemicals for printed wiring
boards that include electroless copper plating
chemicals, copper-sulfate plating brighteners,
electroless nickel-gold plating chemicals, and
etchants for use in the manufacture of various
types of electronic circuit boards, including rigid,
flexible, and ceramic boards.
It also offers plating chemicals for the treatment
of chip parts for capacitors and resistors, as well
as for the treatment of semiconductor devices,
such as connectors, lead frames, and wafers; and general plating chemicals that are used to
improve the appearance and corrosion resistance of various metallic and plastic materials used in
precision devices, automotive parts, electrical appliances, furniture, and amusement machines.
In addition, the company provides functional plating chemicals that are used to improve the
appearance and corrosion resistance; mechanical characteristics, such as hardness and lubricity;
and optical characteristics of black chromium and black nickel. Further, it engages in the design
and installation of chemical equipment; and analysis and recovery of chemicals and metals.

Project Approach:
Overall time period of project:
5 months from beginning to end
(1st level concept validation )
# of personnel:
15 people (from production, tech.
dev., marketing, and business /
management)
Program training and execution:
11 days total
(4 for QFD, and 7 for TRIZ)
In an attempt to improve their product development approach, to get it more effective and efficient, the
team decided on using QFD (Quality Function Deployment – Voice of the Customer approach), TRIZ
(innovation and concept generation method) and TM (Taguchi Method, a Quality Engineering approach)
all tied together. This project was executed as a part of an in-house knowledge creation process.
Because this effort also contained a fair amount of intellectual property for Meltex, they limited some of the
detailed design elements from the QE portion, and thus is excluded from this report out.

Overarching Project Objectives:
1. Identify an attractive commodity design that meets customer’s potential needs via QFD
• Using the Kano model
• Resolve the risk and trade-off without a “Drop/Leak” failure (a known issue)
2. Create an attractive commodity concept via TRIZ methods
• Attractive concept creation
• Product development solution that isn’t defined as a compromise
• Idea creation tool
3. Effectiveness and Efficiency gain using TM (Taguchi Method)
• The optimal design will be made in a short time frame
• Robust design capturing which parameter of performance has changed
By using these methods the team also sought to address 8 Challenges that their
Engineers typically face by using these methods in the fashion they outlined.
(1) Awareness of customer’s needs (2) Setting of an attractive commodity concept
(3) It is easy to use and is a daring design (4) Fast time to market
(5) Solution of a published and well known
market quality issue
(6) Resolved a bottleneck in the technology
process
(7) Decreased cost (8) Expand Intellectual Property

Project:
Semi-Additive Process (SAP)
Background: The SAP used in their plating
process is a plating step for a high density
(silicon device) component package
substrate. The Intellectual Property for this
package is not owned by Meltex, so the team
proposed their own, original technology
development and IP as a result,
Development Goal: Trace thinning to
achieve a <5um trace and space on the
substrate. Trace and space of the Cu (copper)
circuit and that gap distance between traces
is shown here

TRIZ Applied:
Contradictions were identified and then the
Cause & Effect Analysis uncovered the
issue with palladium being used in the
plating process as it was creating specific
issues with the roughness of the surface of
the substrate in the smear removal step
and is the root cause issue to resolve.
It has been our experience, that
while typical FMEA/PFMEA are
less effective than using TRIZ’s
Cause and Effect Chain Analysis
approach, but that is because
we’ve been able to compare each
approach side by side and seen
the difference was staggering.

Using TRIZ Methods they created a
Technology Roadmap for Concept Validation
Appropriately using TRIZ methods, as a
process, generated multiple solution
ideas for the team. As a result they
were able to leverage another Power
Law, this one relating to generating a
large # of ideas, yields a better final
solution. This is not uncommon to have
happen on well run TRIZ projects
Result: a new process approach that
created a time savings in process as
well as increasing the insulation
reliability

Conclusion and Recommendation to Management:
The Knowledge Transformation Model using QFD and TRIZ

Sony provides raw materials procurement, production planning, mass production,
quality control, inventory control, and logistics for semiconductors fabrication. The
company also offers customer service functions.
The company was founded in 2001 and is based in Kikuchi-gun, Japan. It also operates
fabrication plants in Kokubu, Oita, Nagasaki, and Kumamoto, Japan. Sony Semiconductor
Manufacturing Corporation operates as a subsidiary of Sony Corporation.
Company Profile Sector: Technology
Industry: Semiconductors
Sub-Industry: Semiconductor Devices
Sony Semiconductor Manufacturing
Corporation designs, develops,
manufactures, and markets semiconductor
components.
• Offering Bipolar IC, MMIC, MOS IC,
CCD, and LCD.
• Offering image sensors, system large
scale integrations, display devices, and
semiconductor lasers.

SONY MOTIVATES AND ENGAGES ITS ENGINEERS WITH TRIZ TO
CONTINUOUSLY IMPROVE DESIGNS AND PROCESSES

RAPID RAMP UP IN TRAINING ACROSS THE COMPANY

TRAINING IS DELIVERING RESULTS ACROSS THE FABS

SONY MANAGES INNOVATION AS A QUALITY AND
CONTINUOUS IMPROVEMENT DRIVEN STRATEGY
Sony clearly
incentivizes it’s
personnel to get
involved with TRIZ
and use it’s on
their products,
technology and
processes.

Source: Wikipedia

Project Example:
Reclaiming Scrapped PCBA’s

Project Example:
Reclaiming Scrapped PCBA’s – Landfill Reduction
This kind of project, has
direct bearing on what
goes into landfills that are
typically overflowing with
electronic products buried
in them. You also can also
say that Fujitsu is an
environmentally friendly
company too, again this is
yet another technology
trend / driver for
technology to evolve
towards. They’ve actually
helped to solve what is
known as Wicked
Problem, one that has a
social impact like
overflowing e-waste at
landfills.

Project Example:
Reclaiming Scrapped PCBA’s – Analysis of solutions
Benchmarking different solutions evaluating for the one with the highest
functional capability
It’s the same old story,
the more potential
solutions you look at,
the more likely you’ll
come up with the best
solution, for time, cost
and performance, at
least if you’re
disciplined about it.

Project Example:
Reclaiming Scrapped PCBA’s – not enough good
solutions
Initially Fujitsu engineers
thought they would have
gotten a hybrid solution, a
combination from the
different suggested
solution paths, but even
those solutions were
inadequate to fix the
problem, they had to use
more TRIZ tools to get
more solution concepts.
Getting the real problem
solving value from the
methods, can sometimes
take time to absorb, but
they are there.

Project Example:
Reclaiming Scrapped PCBA’s – Technical Solution
Hitachi engineers
addressed the problem by
solving the Physical
Contradiction, using the
“Separation” and
“Segmentation” principles
combined. The technical
parameter in conflict with
itself is, temperature.
Note, this project came
from Fujitsu’s Advanced
Technologies group

Using TRIZ – Delivering Results
Reclaiming Scrapped PCBA’s Project ROI Savings:
USD $22.4M / ¥2.4B 5 Year NPV
Fujitsu figures
out that it pays
off to be
Sustainable in
their technology
and processes,
if but for just
applying a
method that
they weren’t
using before.

Using TRIZ Analysis: Finding resources for a competitive
redesign of reclaiming scrapped PCBA’s
Using the 32 Evolutionary Trends + 3C + SWOT provides more precise business strategy

Published their Use of TRIZ in Sept 2014: “TREND OF TECHNOLOGICAL
EVOLUTION BY INNOVATION IN THE HARD DISK DRIVE INDUSTRY”
by HGST Platform Development team members Yuki Taniguchi and Kazushi Tsuwako
Hitachi Global Storage Technologies, a division in Western Digital

The necessity to do technology forecasting effectively is self evident when you have this many
technologies that impact your product lines, getting in front of those is obviously important.

HGST uses Darrell
Mann’s “Technical
Systematic
Innovation”
handbook in their
training of personnel.
This is not traditional
or classical TRIZ,
HGST is expanding
it’s working
knowledge on using
Advanced TRIZ
methods, and
seeking to disrupt
their industry with an
intent and capability
that we have only
seen demonstrated
by SK Hynix and
Samsung

HGST can clearly see that a disruptive
technology shift is of low likelihood, at least as
they see it currently, their tech cannot become
“more miniaturized”, remember these guys are
the spinning disks that is within the stable of
Western Digital’s brand of memory products.
HGST was able to find a path forward though, by
identifying it was the elements within the design of
the HDD that could be modified and driven down
to a smaller scale and improve the performance
and reliability of the disk drive design.

This presentation by the HGST / Western Digital took place in September of
2014, see below for next steps taken by Western Digital.
In May 2015, Western Digital redesigned the My Passport Ultra series of portable hard disk
drives, adding a 3 TB storage option.
Later in 2015, WDC also launched the WD Blue series of solid-state hybrid drives, with a 4
TB desktop drive (WD40E31X) and a 1 TB laptop drive (WD10J31X) as the first in the
series.
In August 2015, WDC added higher-capacity (2–6 TB) 5400 rpm models to its Blue hard
disk drives series, as well as 5 TB and 6 TB models to its Black and Red Pro hard disk drive
series.
In May 2016, Western Digital acquired SanDisk for US$19 billion.
In April 2017 Western Digital moves its headquarters from Irvine, California to San Jose,
California.
In September 2017, Western Digital acquired Tegile Systems, maker of flash memory
storage arrays.

HGST engineer
begins his
analysis, tracking
the relevant
technology paths
that have
preceded him

HGST engineer is
looking for the patterns
in the technology and
see if he can find any
gap that he can take
advantage of, or better
yet, actually understand
the value of the tools.
This is something that
Samsung came to
understand was that
people, if they knew the
technology history of a
product they were
better to do their job in
their own problem
solving.

HGST engineer finds
his “Trend of
Technological
Evolution”: the Control
Operator and that it is
applicable to the Flying
Height (FH), a
clearance that is
defined at the molecular
level between slider
disks. The engineer
correctly identified the
constraining element
within the design, in fact
what was once
considered difficult to
deal with, ended up
turning into a resource
for the engineer
instead.

HGST engineer
finds the
Principle of
Thermal Flying
Height Control
(TFC), and
writes up his
functional
requirements
from his focused
brainstorming on
steroids, using
TRIZ methods.

HGST engineer
found the most
important trend for
his product line, the
“Focus of Purchase
of Customer”.
Engineer also found
a new parameter that
he could actually
drive his tech
development and
new product
development
activities into a key
performance
parameter for his
company’s HDD
designs and
business –
Impressive !

HGST engineer is now securing
internal funding for his projects
to challenge the recording
density direction of their
technology since it’s tapped out,
but that there are other
performance characteristics to
get more gain.
In addition the engineer builds
internal support for the
methodology as he
demonstrates his solution set.

HGST engineer comes up with more
approaches to gain competitive
advantage, this time via the design
process and methodology for HGST
and Western Digital.

Hitachi, Ltd. is a Japanese multinational conglomerate company headquartered in Chiyoda, Tokyo, Japan.
It is the parent company of the Hitachi Group and forms part of the DKB Group of companies. Hitachi is a
highly diversified company that operates in 11 business segments:
1. Information & Telecommunication Systems
2. Social Infrastructure
3. High Functional Materials & Components
4. Financial Services
5. Power Systems
6. Electronic Systems & Equipment
7. Automotive Systems
8. Railway & Urban Systems
9. Digital Media & Consumer Products
10.Construction Machinery
11.and Other Components & Systems
Source: Wikipedia
Hitachi is ranked 38th in the 2012 Fortune Global 500
and 129th in the 2012 Forbes Global 2000.

Hitachi has been using TRIZ for a long time
1997 – Hit a wall in enabling a Group wide Improvement Program, deemed impossible
1999 - TRIZ introduced into Hitachi Group; Used a Total Quality Management (TQM) based
approach towards integrating TRIZ with QFD and the Taguchi method.
2011 – Develops enhanced innovation approach, by combining TRIZ methods with Kepner-
Trego (KT), and shares that within the larger Japanese corporate and academic TRIZ user
community. Hitachi has shared a # of analysis’, “lessons learned” and added to the body of
knowledge using TRIZ in the Japanese industrial community. Trained ~4,500 ppl.
2012 – Hitachi has deployed, what looks like a very high standard “World Class Level” of
TRIZ training for itself, from what we can tell, closer to Samsung’s program.
- Primarily viewed and driven by management to enhance general problem solving skills of engineers and
their abilities. TRIZ is recognized and well supported by the Senior Management.
- Combined a Tops–Down and a Bottom’s-Up approach to deployment across the entire Hitachi Group,
and is continuously being promoted internally. Each division in the Hitachi Group promotes the
development of it’s people using systematic innovation methods.
Hitachi believes that ALL engineers should acquire these techniques as general knowledge and
basic skills called:
“Hitachi Innovation Program toward Super Process with Excellent Engineering & Digital
Technologies for the 21st Century” (HiSPEED21)

Hitachi applies TRIZ across all of
its R&D and Tech Dev. activities:
• Thermal Power
• Hydroelectric Power
• Nuclear Systems
• Power & Industrial Systems
• Advanced Medical Systems
• Transportation Systems
• Industrial & Social Infrastructure Systems

Hitachi Group Wide TRIZ Committee for Deployment – integrated into
Technology Forecasting, Voice of the Customer and KT
Hitachi is clearly using a strategic
quality approach to deployment
similar to Samsung, different in that
Hitachi leverages TQM, VoC and the
KT methods, apparently already a
part of the organizational culture,
and then coupling them together.

Hitachi Group Arrives at our Conclusion:
Lower the COPQ It is clear to us, at least, that
whenever a group of a company’s
TRIZ practitioner's get together
and drive it up / into an
organization’s hierarchy to get its
support, they tend to get better
traction with senior management if
they tie their argument focusing in
on a quality focus and finance
based ROI metrics. - Clearly
Hitachi see’s the competitive
advantage using TRIZ internally.
The big assumption here is that
you’ll need to have some quality
people on the team, that will help
the organization to focus the
efforts to get results on COPQ
issues, from a quality standpoint,
and eventually a finance
perspective, these are most
desirable factors to drive results
towards.

TIGHT COUPLING OF PRODUCT DEVELOPMENT AND THE DESIGN
PROCESS…CONTINUOUS INNOVATION PROCESS SYSTEMATICALLY
This is a fully recognized
and well considered “Best
Known Method” (BKM) in
corporate Systematic
Innovation Management.
Similar results were
achieved at Samsung,
POSCO, as well as at
other firms. Also of note in
this, is that the Hitachi
Chief Engineer supported
the proliferation.
Engineering Chief’s in
other firms should take
notice of this approach and
see if it can deliver a better
and more effective
approach than their
incumbent process

Example:
Improving Hard Disk Drive Quality and Reliability (2010)

Driving and inspiring HDD R&D with new product development
solutions using TRIZ Inventive Principles to increase design performance
Of note here, in Hitachi’s
use of TRIZ methods, is
that they are clearly
using Darrell Mann’s
work of advanced TRIZ
methods from his book
“Matrix 2003”, the 48
parameters listed in the
right column, are the
indicator of use of Dr.
Mann’s body of work.
These and other
advanced application of
methods are also found
in his other books,
“Hands On Systematic
Innovation”, one is for
technical application of
TRIZ, the other is for
business.

Using TRIZ Inventive Principles for solutions

Test results from prototypes made it a clear choice for
a solution because of using the methods

Was able to Root Cause the Problem more effectively
than typical Six Sigma methods

TRIZ Proliferation inside of the company
enabled a culture of innovation to take hold

Spread of TRIZ projects is across the entire Hitachi Group;
Engineering and even including the managerial levels of the company

Example #1
Enamel Wire (Typical kind of problem):

Example #1
Enamel Wire: Contradictions identified, Inventive Principles
next for solutions
Hitachi learned to
leverage into other
Systematic
Innovation
methods, like the
Matrix 2003, from
Systematic-
Innovation.com,
which is an
improved, extension
of the classical
TRIZ contradiction
matrix for better
solutions found
sooner.

Example #1
Enamel Wire: Solutions easily found

Example #2
Improved Failure Analysis: Merging TRIZ and Kepner-
Tregoe Methods

Example #2
Improved Failure Analysis: Outline of KT-PA

Example #2
Improved Failure Analysis: Comparing TRIZ
Failure Analysis and KT-PA

Example #2
Improved Failure Analysis: Comparing TRIZ
Failure Analysis and KT-PA
Hitachi practitioners identified
weaknesses in both methods,
where the strengths of each
method could help to offset the
other’s deficiencies.

What is a Black Swan Event?
The Black Swan theory or the Theory of Black Swan events is a
metaphor that describes an event that comes as a surprise, has a
major effect, and is often inappropriately rationalized after the fact
with the benefit of hindsight.
The term is based on an ancient saying which presumed black
swans did not exist, but the saying was rewritten after black swans
were discovered in Australia. In the 2007 book, “The Black Swan”
concept was extended as a metaphor to events outside of financial
markets. The author, Mr. Taleb, regards almost all major scientific
discoveries, historical events, and artistic accomplishments as
"black swans“ - undirected and unpredicted.
Examples given: the rise of the Internet, the Personal Computer, World War I,
the dissolution of the Soviet Union, and the terrorist attacks of September 11, 2001.
“Black Swans” / “Black Swan events” can be positive or negative in effect,
and that it is entirely based on the subject perception by the individual of
those events.
Source: Nicolas Taleb book, “The Black Swan”

Identifying a Black Swan event
Identifying Black Swans (author's criteria):
1. The event is a surprise (to the observer):
2. The event has a major effect.
3. After the first recorded instance of the event, it is rationalized by
hindsight, as if it could have been expected; that is, if the relevant
data were available but unaccounted for in risk mitigation programs.
The same is true for the personal perception by individuals.
Image Source: Nicolas Taleb book, “The Black Swan”

Identifying a Black Swan event
Identifying Black Swans (author's criteria):
1. The event is a surprise (to the observer):
2. The event has a major effect.
3. After the first recorded instance of the event, it is rationalized by
hindsight, as if it could have been expected;
Image Source: Nicolas Taleb book, “The Black Swan”
The Strategic Inflection Point of 2017, where Samsung
overtook Intel to be the #1 Semiconductor OEM, was a
surprise to at least to Intel, and to many others in the
Semiconductor industry. Samsung is a part of the TRIZ
Super-User group of South Korea.
The Strategic Inflection Point of 2017, where Samsung
overtook Intel to be the #1 Semiconductor OEM, the last
time that there was such a major industry shift in that
industry was in 1992, when Intel knocked NEC off the top of
the heap of Semiconductor firms by revenue.
The Strategic Inflection Point of 2017, where Samsung overtook Intel to be the #1 Semiconductor OEM, can only
be properly explained in light of the fact that what Samsung did to achieve its new dominance in that market was
done by the strident application of TRIZ methods applied over time rigorously and consistently within the design
and manufacturing processes of Moore’s Law. None of this was mentioned had been stated by any of the industry
experts, nor from the any of the major consulting firms of Accenture, Bain, McKinsey, etc…Obviously none of
these groups had access to the relevant knowledge, and thus risk mitigation was not addressed by other firms in
the industry, or recommended by any of these consultants or industry experts

LIST OF SOME OF THE MAJOR CORPORATIONS / CURRENT USERS
OF SYSTEMATIC INNOVATION (TRIZ) METHODS AS OF 2018
WHERE THE S+IG STAFF COME FROM:
The Strategy + Innovation Group, spans the
globe in breadth and depth of knowledge and
experience in high-tech and the Fortune 1000,
when it comes to Systematic Innovation
methods like TRIZ. Collectively we have +175
years of experience brought to bear in our field
of experience successfully deploying these
methods for competitive advantage in multiple
companies & industries.

THE STRATEGY + INNOVATION GROUP’S
SYSTEMATIC INNOVATION TRAINING ACADEMY
TRIZ/SYSTEMATIC INNOVATION TRAINING (version 2.0)
• Solution ideas for
technical problems during
the development or from
customer inquiries
• Check the idea to be
realized for "novelty" and
possibly secure it with a
patent
• Solution ideas for
technical problems during
the development or from
customer inquiries
• Check the idea to be
realized for "novelty" and
possibly secure it with a
patent
• Patents on Demand:
• Securing and expanding
the patent portfolio
• Derive new application
patents
• Occupying "white spots"
(whitespaces) with
patents
Solutions on
Demand
Alternative
Solutions
YourAim
Invention on Demand
Innovation on
Demand
Products &
Processes
Innovation on
Demand
Patents

(R&D / Technology
Development)
Patent Engineer
Manager of
Innovation*
Process
Engineer
Product
Engineer
* Please note that the Manager of Innovation courses also include TRIZ/SI for Business methods and tools,
as well as strategy and tactics analysis methods and frameworks (these are not shown on this diagram)
SYSTEMATIC INNOVATION TRAINING
STRUCTURE FOR CORPORATIONS:
DEVELOP YOUR PEOPLE’S SKILL SETS FOR THEIR DIFFERENT
THEIR ROLES IN THE COMPANY

THE S+IG APPROACH
THE S+IG PRODUCT INNOVATION ROADMAP
Concept Substantiation
Problem Solving
Problem Identification
Secondary Problem Solving
Supereffect Analysis
Concept Evaluation
Idea Substantiation
Conceptual Direction
Development
ARIZ Application
Clone Problem Application
Inventive Principle Application
Function-Oriented Search
Standard Solution Application
Scientific Data Base Application
S+IG
Benchmarking
Methodology
Function
Analysis
Flow
Analysis
Cause-Effect
Chains Analysis
Evolutionary
Trends Analysis
Key Problem
Analysis
Trimming
Feature
Transfer

LIST OF SOME OF THE MAJOR CORPORATIONS / CURRENT USERS OF
SYSTEMATIC INNOVATION (TRIZ) METHODS AS OF 2018
WHO THE S+IG STAFF HAVE TRAINED:
The Strategy + Innovation Group, spans the
globe in breadth and depth of knowledge and
experience in high-tech in the Fortune 1000,
when it comes to Systematic Innovation
methods like TRIZ. Collectively we have +175
years of experience brought to bear in our field
of experience successfully deploying these
methods for competitive advantage in multiple
companies & industries.

INNOVATION MANAGEMENT AND TRAINING
FROM PROFESSIONALS WHO’VE DONE IT
What you get from the S+IG:
Tested and Proven Best Practices in
Innovation Management and
Systematic Innovation Methods from
those who’ve successfully led efforts in
the Fortune 500, like Samsung, Intel,
GE, and Rolls Royce, and elsewhere.
We offer introductory, basic and advanced
training in:
• Systematic Innovation methods
• Strategic Intellectual Property management
• and Innovation Management Best Practices
We can create bespoke/custom training upon request
If you want to Innovate like a Pro, we’ll
show you how, the easier way
Contact Information:
503.449.5673
Email Contact: rplatt@sig-hq.com
Website: www.sig-hq.com
We show you how to get competitive
advantage in your market
#
Patent Strategies we teach Engineers, IP Lawyers,
Managers, Technical Leaders and Entrepreneurs
1. The Competitive Patent Circumvention Strategy by Trimming
2.
The Competitive Patent Circumvention Strategy by History
Estoppel Research
3. The Antidote Strategy
4. The Picket Fence Strategy
5. The Toll Gate Strategy
6. The Submarine Strategy (old and new)
7. The Counter Attack Strategy
8. The Stealth Counter Attack Strategy
9. The Blanketing Strategy
10. The Bargaining Chip Strategy
11. The Cut-Your-Exposure Strategy
We guarantee our work, 100% refund* if
you don’t get Value Add from our training
* Note: Restrictions apply, refund request must be submitted S+IG management at the end of you training sessions, please see your instructor
the refund policy requirements.

THE LOGIC BEHIND THE METHODS “SERIAL INNOVATORS” USE TO FIND THE
RIGHT STRATEGIC PROBLEM TO WORK ON
1. Using Strategy to Identify Problems: Serial Innovators, like inventors, start investigating a problem
area because the performance capabilities of a particular technology have reached a plateau, while
performance demands keep increasing. To move to the next performance level requires shifting to a
different technology. Methods, theories, frameworks and tools are also technologies.
2. Reframe Existing Problems: Serial Innovators reframe existing problems by immersing themselves
in a problem, they see it through a different lens that allows them to capture aspects that had been
previously overlooked.
3. Work Backward from a Far-in-the-Future Vision: Serial Innovators work backward from a long-
term goal – known as an Ideal Final Result – to discover how tackling a series of short-term problems
might allow them to ultimately produce, that long-term vision. Seeking short to medium term wins that
enable next steps.
4. Use Other Domains for Insight: Serial Innovators find the right problem by gathering insight from
across multiple domains. A Serial Innovator will initiate conversations with others to determine what
they were doing and, and most importantly, why. The “why” provides insight into what problems these
people thought was important to them. They’ll visit new venture incubators, investigating why and
how they were trying to commercialize various technologies -- what problems were they trying to
solve? When they find others trying to commercialize different products to solve similar kinds of
problems, they intuit that they’re on the right track to finding an interesting problem to solve for a firm.
5. Break the System: Serial Innovator find out what, how and why a system doesn’t deliver or work
providing the value that customers, end users and other decision makers / influencers want to see
improved. You cannot improve something that you do not measure, nor can you manage it
effectively without doing this vital activity in order to make it a better performing system, this most
assuredly begins with looking at the manufacturing and production processes, this is where major
opportunities are overlooked by the majority of your competitors.
THE WAY WE WORK
Original Source that we added and
modified to fit the reality of
corporate innovating: “Serial
Innovators: How Individuals Create
and Deliver Breakthrough
Innovations in Mature Firms”
1st Edition by Abbie Griffin,
Raymond L. Price, and Bruce
Vojak .

CONTACT INFORMATION:
Phone #: 503.449.5673
rplatt@sig-hq.com
www.sig-hq.com
"We Make Engineering Cool – Driving Innovation that Works"
“He Who Dares to Disrupt, Wins”

Part 4 of 5 of the Semiconductor Strategic Inflection Point - Rise of the Asian Black Swans -07302018

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Part 4 of 5 of the Semiconductor Strategic Inflection Point - Rise of the Asian Black Swans -07302018

Similaire à Part 4 of 5 of the Semiconductor Strategic Inflection Point - Rise of the Asian Black Swans -07302018 (20)

Plus de Richard Platt

Plus de Richard Platt (15)

Dernier

Dernier (20)

Part 4 of 5 of the Semiconductor Strategic Inflection Point - Rise of the Asian Black Swans -07302018