Lecture#8: November 14 th, 2003 “SOURCES OF INNOVATION” Slide#1 “THE SOURCES OF INNOVATION” By: José Coutinho, Marco Bravo e Paulo Rebelo

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


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…


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?


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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.


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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


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USERS AS INNOVATORSUSERS AS INNOVATORS

• The survival need

» Koshima example


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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!


Slide#8


• 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


Slide#9


• 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;


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• 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 –


Slide#11


• 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


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VISTEON: A CASE STUDYVISTEON: A CASE STUDY• Necessity enhances innovation;

The Wave Solder Equipment:The Wave Solder Equipment:

Wave Solder Machine


The Wave Solder Process:The Wave Solder Process:


- 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


- 45 Degrees Soldering = ZERO DEFECTS.

Process Flow

Solder Wave45º to the

Wave Contact


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.


Before – “Standard Wave Solder Nozle”:

Solder Short

Solder Short


After – “W-Shape Solder Nozzle”:

No Defects


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%


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


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


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




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




Solder Shorts 10% Improvement

Solder Skips 45% Improvement

“ W - WAVE ” NOZZLE RESULTS: (Final Assembly)


“ W - WAVE ” NOZZLE RESULTS(B&A Returns)

46% Improvement


“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


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.


- 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.)


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• 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 %


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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


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• 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


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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%


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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


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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

? ? ?


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;

Documents

Lecture#8: November 14 th, 2003 “SOURCES OF INNOVATION” Slide#1 “THE SOURCES OF INNOVATION” By: José Coutinho, Marco Bravo e Paulo Rebelo