Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#1
““THE SOURCES OF THE SOURCES OF
INNOVATION”INNOVATION”
By: José Coutinho, Marco Bravo e Paulo Rebelo
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#2
CONTENTS:CONTENTS:
1. AIMS OF THE PRESENTATION;
2. BACKGROUND & KEY FINDINGS;
3. USERS AS INNOVATORS;
4. VARIATIONS IN THE FUNCTIONAL SOURCE OF INNOVATION;
5. SUMMARY AND CONCLUSIONS;
6. BEYOND THE ARTICLES…
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#3
1. AIMS OF THE PRESENTATION:1. AIMS OF THE PRESENTATION:
• Where innovation comes from?
• Who are the major sources on the innovation process?
• Who are the players? How do they interact together?
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#4
2. BACKGROUND AND KEY FINDINGS2. BACKGROUND AND KEY FINDINGS
• Innovation comes from the need:
• Basic surviving needs
» Food, Territory, etc…
• For making things (tools)
» Better, Faster, Less costly, etc…
• Who has the need?
» The users (do they innovate all alone?);
» Manufacturer’s and supplier’s intervention.
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#5
3. USERS AS INNOVATORS3. USERS AS INNOVATORS
• Innovation:
– One of the oldest behaviors in the world;
– Interacts with species evolution all living beings innovate when faced
with unexpected/perturbing elements;
Koshima Island
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#6
USERS AS INNOVATORSUSERS AS INNOVATORS
• The survival need
» Koshima example
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#7
USERS AS INNOVATORSUSERS AS INNOVATORS• In 1952, on the island of Koshima, scientists were providing monkeys with sweet potatoes dropped in the sand. The
monkeys liked the taste of the raw sweet potatoes, but they found the dirt unpleasant.
An 18-month-old female named Imo found she could solve the problem by washing the potatoes in a nearby
stream. She taught this trick to her mother. Her playmates also learned this new way and they taught their
mothers too.
This cultural innovation was gradually picked up by various monkeys before the eyes of the scientists.
Between 1952 and 1958 all the young monkeys learned to wash the sandy sweet potatoes to make them more
palatable.
Only the adults who imitated their children learned this social improvement. Other adults kept eating the dirty
sweet potatoes.
Then something startling took place. In the autumn of 1958, a certain number of Koshima monkeys were washing
sweet potatoes -- the exact number is not known.
Let us suppose that when the sun rose one morning there were 99 monkeys on Koshima Island who had learned to
wash their sweet potatoes.
Let's further suppose that later that morning, the hundredth monkey learned to wash potatoes.
• By that evening almost everyone in the tribe was washing sweet potatoes before eating them.
The added energy of this hundredth monkey somehow created an ideological breakthrough!
• A most surprising thing observed by these scientists was that the habit of washing sweet potatoes then jumped over
the sea --
Colonies of monkeys on other islands and the mainland troop of monkeys at Takasakiyama began washing their
sweet potatoes.
Although the exact number may vary, this Hundredth Monkey Phenomenon means that when only a limited
number of people know of a new way, it may remain the conscious property of these people.
But there is a point at which if only one more person tunes-in to a new awareness, a field is strengthened so that
this awareness is picked up by almost everyone!
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#8
USERS AS INNOVATORSUSERS AS INNOVATORS
• THE TECNOLOGICAL BREAK THROUGH
• 1st Field analysis – scientific instruments
– Definition – Innovator is the one that develops an instrument and
proves it to be useful through a publication
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#9
USERS AS INNOVATORSUSERS AS INNOVATORS
• EXAMPLE – SCIENTIFIC INSTRUMENTS
o Who’s the innovator? The user for himself ? The combination
manufacturer & user?
Case study: Nuclear resonance UserElectronic Microscope (P. supply) ManufacturerElect. Microscope (electron beam) User (minor)
• DIFUSION
– For the example all are university people and they:1. Publicize the results (writing);2. In form others on presentations / conferences;
– 1 year later others replicate;
– There’s a commercialized product;
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#10
USERS AS INNOVATORSUSERS AS INNOVATORS
• The INNOVATOR– Detects the problem– Invents an instrument– Builds a prototype– Proves the prototype value and applies it– Spreads the information for replication
Primary Actor USERs
Innovation
Process
Stage
Identify Reserch /
Development
Build Prototype Apply / Comercialize
Diffuse Innovation
Manufacturer
If MANUFACTURER is involvedProduct Re-Engineering –
Manufacture & sells it –
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#11
USERS AS INNOVATORSUSERS AS INNOVATORS
• 2nd Field analysis – Process industry:
– Definition – Innovation is production applicable, and is available for
most of the users
• EXAMPLE – A SEMICONDUCTOR & PCB ASSEMBLY
• Visteon: a case study
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#12
VISTEON: A CASE STUDYVISTEON: A CASE STUDY• Necessity enhances innovation;
The Wave Solder Equipment:The Wave Solder Equipment:
Wave Solder Machine
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
The Wave Solder Process:The Wave Solder Process:
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
- Solder Short were the major failure cause affecting
FTT;
- The majority of the products contain single or
multiple row leaded components on the wrong
orientation for wave soldering.
Process Flow
Solder Wave
Project BackgroundProject Background
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
- 45 Degrees Soldering = ZERO DEFECTS.
Process Flow
Solder Wave45º to the
Wave Contact
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
First Approach:
-The first experiment (August ‘03) was carried out using
pallets
to carry the board on a 45º position in relation to the
process flow.
- Sample Size: 200 PWB’s;
- Product used: “Large Bezel 5000 Series Main
Board”;
- Equipment: SEHO NGF 2100 - (Copy Exactly BKM);
- Quality: ZERO DEFECTS;
- The Objective is NOT TO USE PALLETIZED PROCESS:
- Lower process throughput;
- Extra material circulating on the line (pallets);
- Extra process variable (pallets);
- More Maintenance required (pallets);
- Non Standard Process Width.
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Before – “Standard Wave Solder Nozle”:
Solder Short
Solder Short
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Model PPM Before
PPM After
% Improvement
LB 5000 1318 67 95%
LB 6000 1096 110 90%
VX Mid 1179 77 93%
LB 7000 71 29 59%
Con.5000 2824 97 97%
J25A 809 81 90%
Average 1216 76 88%
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Main #1 Line (Seho 2)
0
500
1000
1500
May‘02
Jun‘02
Jul‘02
Aug‘02
Sep‘02
Oct‘02
Nov‘02
Dec‘02
Jan‘03
Feb‘03
Mar‘03
Apr‘03
PPM Skips
PPM Shorts
W Nozzle Implement.on Main1
W Nozzle Implement.on Main2
Wave Solder PPM:(Audio Mnfg. Lines - Main1 & Main2)
Main#2 Line (Electrovert 4)
0
100200
300400
500
May‘02
Jun‘02
Jul‘02
Aug‘02
Sep‘02
Oct‘02
Nov‘02
Dec‘02
Jan‘03
Feb‘03
Mar‘03
Apr‘03
PPM Skips
PPM Shorts
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Audio Overall Wave Solder PPM:
Audio
0
100
200
300
400
500
600
May‘02
Jun‘02
Jul‘02
Aug‘02
Sep‘02
Oct‘02
Nov‘02
Dec‘02
Jan‘03
Feb‘03
Mar‘03
Apr‘03
PP
M
PPM Skips
PPM Shorts
W Nozzle Implement.on Main2
W Nozzle Implement.on Main1
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Plant Overall Wave Solder PPM:
Wave Solder Process
050
100150200250300350400450
May
‘02
Jun
‘02
Jul
‘02
Aug
‘02
Sep
‘02
Oct
‘02
Nov
‘02
Dec
‘02
Jan
‘03
Feb
‘03
Mar
‘03
Apr
‘03
PP
M
PPM Skips PPM Shorts
W Nozzle Implement.on Main2
W Nozzle Implement.on Main1
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Solder Shorts 10% Improvement
Solder Skips 45% Improvement
“ W - WAVE ” NOZZLE RESULTS: (Final Assembly)
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
“ W - WAVE ” NOZZLE RESULTS(B&A Returns)
46% Improvement
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
“W - Nozzle” Installation Timing Plan:
Line Equipment Sched. Date Due Date
Con.AudioSeho Nov. 22Main 1 Seho Dec. 13Main 2 Electrovert Feb. 15Airbag Electrovert Feb. 15Line 8 Electrovert Feb. 21Line 7 Electrovert July.20Enfield Plt. Seho JulyMarkham Plt. Seho July
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Advantages:
- Applicable for a Patent;
- Drastically reduces the solder defects rate in current
products.
95% Improvement - Internal Quality
46% Improvement - External Quality
- Increases the Solder Process Window;
- Opens product design horizons into off-the-shelf-leaded-
through- hole components not so restricted by “design
rules”;
- reduces our product cost increases competitive
advantage.
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
- Contains the potential to replace currently used more
costly processes to reduce solder defects (ex: “Hot
Nitrogen Knife”);
- By a simple Nozzle installation (1/2 Hour) the direct
savings will achieve:
570 000 USD(Labor, Equipment Maintenance)
- Extending this to all seven Visteon Plants (as per the
implementation plan, savings can achieve:
2,2 Mio USD
Advantages: (cont.)
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#28
USERS AS INNOVATORSUSERS AS INNOVATORS
• Innovation Type
1st New technique applied for the process equipment
2nd New process for internal applied process
• DIFFUSION
– Innovators do not have the diffusion incentive
– Hiding because of competitive advantage
– Used for marketing purposes
Innovation %
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#29
USERS AS INNOVATORS– OUTCOME OBSERVATIONSUSERS AS INNOVATORS– OUTCOME OBSERVATIONS
Innovation developed by
User Manufacturer Other
64.8% 19.8% 15.3%
Scientificinstruments
Innovation developed by
User Manufacturer Other
64.8% 19.8% 15.3%
Process machinery
Why a different normal perception ?Innovation chain ends at the selling companyManufacturing associations put value on the themselvesManufacturing marketing
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#30
• 1st example: Pultrusion
– Process and machine innovation by the manufacturer
• 2nd example: Tire shovel
– Innovation by the manufacturer
• 3rd example: Engineering thermoplastics
– Manufacturer
• 4th example: Plastics additives
– Plastic manufacturer
4. VARIATIONS OF INNOVATION SOURCES4. VARIATIONS OF INNOVATION SOURCES
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#31
VARIATIONS OF INNOVATION SOURCESVARIATIONS OF INNOVATION SOURCES
• 5th Example: Cable industry
– Part supplier as innovator (material supply)
• 6th Example Industrial gas (thermoplastic)– Supplier 34%– User 42%– Manufacturer 15%
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#32
5. SUMMARY AND CONCLUSIONS…5. SUMMARY AND CONCLUSIONS…
MODEL#1 MODEL#2 MODEL#3
Reasons for
Innovation
Scientific advances User needs and
know-how
Complex
Technologic
Systems
Integration
Critical Relations
and Crucial
Organisations
University-
Industry, start ups,
firms
Users-producers Architect and
module designers -
standards
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#33
6. BEYOND THE ARTICLES…6. BEYOND THE ARTICLES…
• Global distribution for inovations sources:
• Millitary innovation and it’s diffusion?
• Collaboration between innovator & equipment manufacturer?
• The feed back on user innovation to the R&D laboratory?
• What about servicies innovation?
User Manufacturer Supplier
? ? ?
Lecture#8:November 14th, 2003 “SOURCES OF INNOVATION”
Slide#34
REFERENCES:REFERENCES:
I. Von Hippel, E. (1988), “The Sources of Innovation”, Chapter 2: “Users of Innovation”,
pp.11-27. Oxford University Press;
II. Von Hippel, E. (1988), “The Sources of Innovation”, Chapter 3: “Variations in the
Functional Source of Innovation”, pp.28-42. Oxford University Press;
III. Conceição, Pedro et al (2000), “Science, Technology and Innovation Policy –
Opportunities and Challenges for the Knowledge Economy”. Being Digital: The
Unavoidable Transformation of Research Universities, p. 81-86;
IV. Visteon edition (special thanks to António Aires);
V. “The hundredth monkey” 1968;
VI. Life of the mammals- David Atenborough;
VII.The primates: A life in the trees – National Geographic;