Brainstorming on Innovation & Cluster School of Business Yonsei University Brainstorming on Innovation & Cluster Sung Joo Bae Assistant Professor Operations and Technology Management

창의적 문제해결과정 Problem Search Problem Definition Solution Search Solution Selection

클러스터 클러스터란 지리적으로 모여 있는 어느 특정 분 야에서 서로 관련된 기업, 전문 공급자, 서비스 제공자, 관련 산업의 기업 그리고 유관단체(예 를 들면 대학, 표준기관, 직능단체)들의 집적지 를 말함. 이들은 특정 분야에서 서로 경쟁하면서 협력함

Porter의 클러스터 모델

Porter의 클러스터 모델 (STEPI 자료)

혁신 클러스터의 성공요인 (STEPI 자료) 입지조건 교통요충지, 대학과 연구소 집결, 주요기업 위치 구조의 균형성 대학, 연구기관, 기업 등의 혁신주체 골고루 분포 혁신거점 e.g. 이스라엘의 실리콘와디 (와이즈만 연구소, 하이 파 대학, 테크니온 공과대학) 인적자원의 지속적 공급 해외 선진기술지식의 지속적인 유입 금융지원 시스템 정부지원 시스템

Recent Changes in Korea Development Focus Engineering oriented  Design Oriented  Integrated Thinking Product Focus Function  Aesthetics (Form)  Concepts (e.g. eco-) Product Strategy Single product  Product groups  Platform (ecosystem)

Innovation – Much More Complicated than Invention Invention & Innovation: Difference? Generation of Ideas  Problem-solving (Design) Implementation(Mfr, Mkt, Dist) Diffusion Basic Science  Applied Science  New Product Development  User Innovation What is the role of the basic science?

Conventional wisdom? The best innovations are customer/needs/demand-driven. Common thoughts: Nothing is worse than “a technology in search of an application,” or “a solution in search of a problem and a customer” “Necessity is the mother of invention” “How many billions of dollars has this company spent on R&D that goes nowhere?!”

Internal vs. External Sources Of the 157 cases studied by Myers and Marquis, how many innovations are evoked by information from sources outside the firm? 98 = 62% How about in the case of new scientific and measuring instruments? 39/59 ideas = 66% Case of DuPont’s major product and process innovations? 14/25 = 56% 98

Form Design Use Environment User Function Concept - philosophical - ethical - emotional

Attributes of Five Development Projects Stanley Tools Jobmaster Screwdriver Rollerblade In-line Skate HP Deskjet Printer Volkswagen New Beetle Automobile Boeing 777 Airplane Annual production volume (units/year) 100,000 4 million 50 Sales lifetime (years) 40 3 2 6 30 Price (US$/unit) 200 300 17,000 130M Part numbers (parts) 35 10,000 130,000 Development time (years) 1 1.5 3.5 4.5 Internal development team (peak size) 5 100 800 6,800 External development team (peak size) 10 75 Development cost (US$) 150,000 750,000 50M 400M 3B Production investment 1M 25M 500M (Source: Ulrich & Eppinger)

New Product Development Process Design Activities: Planning Concept Development System-level Design Detail Testing & Refinement Production Ramp-up Consider product platform and architecture Assess new technologies Investigate feasibility of product concepts Develop industrial design concepts Build and test experimental prototypes Generate alternative product architectures Define major subsystems and interfaces Refine industrial design Define part geometry Choose materials Assign tolerances Complete industrial control documentation Reliability testing Life testing Performance testing Obtain regulatory approvals Implement design changes Evaluate early production output

The Relationship between Science & Technology Assimilation of scientific results into technology Recognized need for a device, technique, or scientific understanding Technology adoption for use Technological need for understanding of physical phenomena and responses

Freshman Zack Anderson can check the weather at the monitor by the sink in his fully automated dorm room. Credits - Photo / Donna Coveney Multifunction In-Dorm Automation System" (MIDAS) Freshman R.J. Ryan hits the 'emergency' button in his automatic dorm room on East Campus. The button activates 'party mode.‘ (relax mode, sleep mode also possible)

Boston System FIRMS FIRMS IN OTHER INDUSTRIES SUPPLIERS UNIVERSITIES FINANACE AND VENTURE CAPITAL ASSOCIATION UNIVERSITIES RESEARCH LABS DESIGN SERVICES mechanical, engineering analysis SW programming product and mkting strategy rapid prototyping SUPPLIERS FIRMS IN OTHER INDUSTRIES

Alessi & Lombardy Design Discourse Free-floating community of architects, suppliers, photographers, critics, curators, publishers, and craftsmen Initially utilitarian (Form follows function)  Importance of form increased Combination of “local” and “global” Change of product meaning  Change in design (iMac: office product  home appliance) Other examples? Absorb  Interpret Address Links of the components of the design system (schools, studios, mfr., etc.) made Lombardy special

Actors in Lombardy System Global Discourse FIRMS DESIGNERS UNIVERSITIES RESEARCH LABS DESIGN SERVICES SUPPLIERS FIRMS IN OTHER INDUSTRIES PUBLISHING SHOWROOMS EVENTS+ART EXHIBITIONS USERS Local Discourse 談論

Actors in Lombardy System characteristics Mfrs. Italy is the largest world exporter(16%) Lombardy accounts for 23% of Italian furniture manufacturer (High-end) Design Firms +700 design firms (60% of Italian total) Mainly small studios with less than 4 employees Users Italians spend 10% of their non-food budget on furniture Local users are immersed in the design discourse OEM in other industry Most advanced industrial setting Suppliers Geographically concentrated and highly specialized Universities & Research Labs Milan is the center for architecture and design education – Politecnico di Milano and other universities in the region Fairs, exhibitions and Publishers The most important international furniture fair: the Salone del Mobile Triennale di Milano since 1920 / Experimentation at the show rooms 454 design related publishers, 16 design magazines FIRMS DESIGNERS UNIVERSITIES RESEARCH LABS DESIGN SERVICES SUPPLIERS FIRMS IN OTHER INDUSTRIES PUBLISHING SHOWROOMS EVENTS+ART EXHIBITIONS USERS

Bang & Olufsen’s Design Oriented Product Development Process

Bang & Olufsen Customers Manufacturing process Product Characteristics Details Design philosophy/Process Home electronics + luxury category product characteristics External design first  internal delivery Importance of substance Designers have “near-absolute” control over product Mode/Speed of innovation 1 year ~ 3-5 years Iterate until you get what you like R&D partnership Product strategy Special products Fanatical acclaim Fabulous profit margin Customers Loyal, repetitive Small number of exclusive customers Distribution channel specifically designed Manufacturing process Small autonomous production groups

Bang & Olufsen 75% from Designers Designer-driven No market researchy Concept With Substance Thesis Thesis IDEAS Synthesis Antithesis Antithesis More models, increasingly detailed & complete 25% fill holes in catalog 2 or 3 ideas, model iterations

Design Oriented Product Development Design concept: “thin” and “glossy” in an organic design that made the TV seem to be of one piece – front, back and stand VIP Center: Developed the product concept Emotion and lifestyle Room decoration Picture & Sound etc. (functional) Engineering Challenges 1. Slimmer, Glossy throughout 2. Speaker holes 3. High glossy finish Solution: Reducing the size of printed circuit board Integrated frame (speaker holes into the frame) New injection molding technique

Mobile Business Ecosystem

Platform Strategy (Leadership) Platform is……an evolving system made of interdependent pieces that can each be innovated upon (from Gawer & Cusumano, 2002) Made possible by 1) increasing interdependency of products and services & 2) increasing ability to innovate by more actors in the high-tech world Main strategic issues Managing the evolution and integrity of the platform Market leadership in platform environments 98

Four Levers of Platform Leadership Scope of the firm: What to do inside the firm, and what to let external firms do Product technology: Make decisions on system architecture (the degree of modularity), interfaces (the degree of platform openness), intellectual property (what information on architecture to close or open) Relationship with external complementors: How collaborative or competitive should relationship with the complementors Internal organization: How to organize the firm to support the above three levers 98

제품을 바탕으로 한 혁신 클러스터의 이해 해당 클러스터에서는 어떤 종류의 제품을 주로 만들고 있 는가? 이러한 제품 생산을 위한 기술적인 구성요소들은 어떤 것 들이 있으며, 이는 누구에 의해 어떻게 창출되고 있는가? 제품의 디자인적인 요소들은 누구에 의해, 어떻게 창출되 고 있는가? 이러한 기술적인 요소와 디자인적인 요소들에 관한 아이 디어의 결합을 위해 어떠한 방식으로 논의가 이루어 지고 있는가? 혁신기업의 경우 혁신 클러스터의 여러 가지 장점들을 어 떤 방식으로 활용하고 있고, 어떻게 클러스터에 공헌하고 있는가? 플랫폼을 바탕으로 한 혁신이 이루어지고 있다면, 혁신클 러스터는 플랫폼전략에 어떠한 이점을 제공하는가?

다양한 형태의 지식이 어떻게 공유되고 전파되는가?