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Procedia CIRP 50 (2016) 153 – 159

6th CIRP Design Conference

Methodology for lean design of disruptive innovations


*, a Brad, S., b Murar, M., c Brad, E.
a,b,c
Technical University of Cluj-Napoca, 28 Memorandumului str., Cluj-Napoca, 400114, Romania.

* Corresponding author. Tel.: +4-073-001-7126; E-mail address: stelian.brad@staff.utcluj.ro

Abstract

In sustainable economies, disruptive innovations are welcome to balance the gap between the intrinsic value of technological
innovations and the economic value perceived by various customer segments, as well as to transform some segments of non-
consumers into consumers. Starting from the characteristics of disruptive innovation and using a structured problem solving
method, a lean design methodology to support disruptiveness is proposed in this paper. Lean comes from the fact that the design
process is structured to reduce ineffectiveness and maximize value. It combines market analysis with business model innovation
and directed system evolution, together with a proposition of ten inventive vectors for provoking disruption of existent technologies
in the market. A test of the methodology within the field of technologies for smart buildings is presented.
©©2016
2016 The Authors.
The Published
Authors. by Elsevier
Published by B.V. This isB.V.
Elsevier an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Selection and peer-review under responsibility of Professor Lihui Wang.
Peer-review under responsibility of the organizing committee of the 26th CIRP Design Conference
Keywords: design methodology; disruptive innovation; lean; smart connected products; mobile control

1. Introduction If in such cases, where only reach actors and/or experts can
access certain technologies, companies can redesign the
Technologies evolve in a rhythm that is not always technology from a completely new angle in order to fulfill the
synchronized with the capability of consumer segments to fully needs and simultaneously to produce it at accessible costs and
exploit their potentials [1]. Market competition forces friendly interface to touch new market segments and user
technology-based companies to innovate continuously despite segments. These situations describe zones of disruptive
the fact that, after a certain level of development, not even the innovations [8,9]. It is suggestively illustrated in Figure 1.
high-end consumers are capable to use all functions and
features of technology [2]. This is not necessarily due to the
inability of users to handle technology, but rather because they
do not have business opportunities or processes that call cutting
edge functions and functionalities or high level operational
performances [3].
Sometimes, the business model is so expensive that certain
market segments do not have access to some high-end
technologies [4,5]. Unaffordability of some technologies to
certain markets segments happens not only due to prices and
costs emerging from the business model, but also due to the
high cost of technology [6].
There are also cases where technology is very sophisticated
and there are no dedicated interfaces to make it accessible for
operation to ordinary users, being preserved only to niche
specialists and experts [6,7]. Fig. 1. Disruptive innovation (adaptation from [4])

2212-8271 © 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of the organizing committee of the 26th CIRP Design Conference
doi:10.1016/j.procir.2016.04.204
154 S. Brad et al. / Procedia CIRP 50 (2016) 153 – 159

On long term, disruptive innovations can kill the parent 3. Ideation framework of the design methodology
technology, because one of their key effects is to disrupt
markets and to open new ones [9]. It is thus the purpose of this The lean design methodology for disruptive innovation was
paper to contribute to this issue. With these things in mind, the conceptualized and tested in the context of a research project
authors of this paper have formulated a methodology to where the authors of this paper have been involved to set up a
approach disruptive innovation from the design perspective. smart box for controlling various aspects (temperature, gas,
Research focus is on disruption from expensive water, electricity, etc.) in ordinary apartments from block of
technologies and expensive business models to cost-affordable flats, where majority of population with lower income lives. To
technologies and price-accessible business models for low-end build a smart residential building, related traditional
new markets. technologies can easily reach 200,000 $. In order to make such
In order to introduce this methodology, the subsequent part technologies accessible for new markets of low-end
of the paper is organized into seven sections. A perspective on consumers, costs must be dramatically reduced.
the state-of-the-art from scientific literature is revealed in In order to conceptualize the design methodology, Theory
section 2 of the paper. Section 3 is dedicated to present the of Inventive Problem Solving (TRIZ) contradiction matrix
general framework for supporting methodology ideation. (CM) is considered [20]. TRIZ CM was selected for this
Section 4 of the paper describes the design methodology for purpose because it displays a space of creation driven by two
disruptive innovation. Application of the methodology is important laws: law of ideality [20] and law of convergence
briefly introduced in the section 5 of the paper. Discussions [21]. Both laws are well-aligned with lean philosophy [22].
around results are presented in section 6. The paper ends with TRIZ CM translates pairs of conflicting problems into pairs of
a section of conclusions and comments on the limitations of the TRIZ generic parameters, which are afterwards introduced into
methodology. Further researches on refining the design method a TRIZ CM to reveal propositions for generic directions of
complete section 7 of the paper. intervention (i.e. called inventive vectors). The theory behind
TRIZ is broad; therefore, reader that is not familiar with TRIZ
2. Literature review ecosystem is invited to consult specific literature.
Having in mind the goal of disruptive innovation, the
Researches on design methods for disruptive innovation are following pairs of conflicting problems have to be treated:
not yet published in international databases. An extensive
search in ISI Web of Science and SCOPUS did not return any x Low cost of technology while ensuring high technical
relevant result in this area. Tangential to the topic, scientific quality
literature reveals very good examples of disruptive innovations x Low cost of technology while proving the key features
in different fields (e.g. 3D printing and rapid prototyping, x Low cost of technology while facilitating high service
medical devices, railway technologies, software applications, quality
services, etc.) [10,11,12,13,14,15], but no description of the x Easy to use/convenience while ensuring high technical
design approaches behind. quality
Assessment of customer analysis methods for enabling x Limited number of features without affecting customer
disruptive innovation is reported [3,16], but such methods are satisfaction
not part of a design methodology.
However, they might be very inspirational in the planning Translating the set of five conflicts above into TRIZ generic
phase of designing for disruptive innovation, even if they could parameters, and further into the contradiction matrix, the
cover only a tiny part of the product design process. Researches directions where the design methodology should act are:
exposed in the scientific literature are aware of the fact that D1 - Instead taking an action that is dictated by the
processes required to develop disruptive innovations are not yet specifications of the problem, implement an opposite action;
well understood [16]. Though, the same literature highlights D2 - Replace hard parts of the system with soft and/or
that an essential part of creating disruptive innovations is reconfigurable modules that can change their “volume”,
collecting the proper data and information on potential and “concentration”, “state” or “shape”; D3 - Replace an expensive
current customers, as well as their needs and behaviors system with several inexpensive systems; D4 - Divide the
[6,16,17]. system into elements that are able of changing their position
Recent published researches propose an evaluation model to relative to each other. In order to define the set of methods and
reduce the implementing obstacle of disruptive innovation concepts of the design methodology, a relationship matrix
[18], but it does provide only guidance for evaluating the between the set {D1, D2, D3, D4} and an exhaustive group of
success ratio of disruptive innovative design scheme methods for planning, analysis, evaluation was considered.
objectively and does nothing on the design method of This exhaustive group of methods included over 100 methods
disruptive innovations. proposed in the literature of engineering design. Those methods
Tools for evaluating disruptive innovation are reported in that had no strong relationship with at least one of the elements
other papers, too [19]. However, the lack of critical mass of D1, D2, D3, or D4 have been eliminated in the first stage.
research work in the field of systematic approaches to design Further, those that consume too much time or are less known
disruptive technologies is clearly visible. in the world of practitioners have been rejected in the second
stage. In the third stage have been eliminated all methods that
are not related with at least three of the four elements D1, D2,
S. Brad et al. / Procedia CIRP 50 (2016) 153 – 159 155

D3, D4. By refining the matrix, the final set of methods was forces; e) apply multi-level connections; f) use asymmetry; g)
obtained. It is shown in Figure 2, which highlights the harmonize individual goals with collective goals; h) consider
translation of {D1, D2, D3, D4} into the design methods net present value and real options to see if an idea is financially
organized into four groups: collection, deployment, feasible; i) prisoner paradox; j) shipwrecked paradox. Prisoner
reorganization, and transformation. paradox is about the exploitation of only existing local
resources to solve a problem by their intelligent rearrangement
and use. The shipwrecked paradox is about the transformation
of some local negative factors into positive factors by
identifying hidden value networks. The 6 Hats method is
proposed in [29] and its role is to analyze the ideation results
from multiple facets (objective and facts-based, negative and
critical, positive and emotional, creative and nonlinear, flow
and process-based, benefits and value added-based). LOTUS
method is useful for detailing the concept around its major
modules/units [30].

Fig. 2. The minimum set of tools for disruptive design

Symbols in the matrix from Figure 2 signify the followings:


{ - weak relationship; ~ - medium relationship; ` - strong
relationship. The ideation framework emerges from the net
revealed by the relationship matrix in Figure 2. It should be
interpreted like this: (1) Take an existing technology (usually a
very expensive one and/or a very sophisticated one) and inspect
it into more details by using collection and deployment tools Æ
(2) Apply D1 and/or D2 and/or D3 and/or D4 on that
technology to break it into unusual parts Æ (3) Generate new
things by multiple forms of ideation using reorganization tools
Æ (4) Combine the new forms into new technologies using
transformation tools.

4. The lean design methodology for disruptive innovation

Because the design methodology is grounded on the


philosophy of maximizing consumer value with minimum
waste and resources, it is enriched with the suffix “lean”,
considering the definition of lean from manufacturing practices
[22], [23]. Using the indications from section 3 and applying a
logical organization of the tools from Figure 2 to follow a
design flow, a lean design methodology for disruptive
innovation is further proposed.
Lean is demonstrated by the fact that, in the matrix from
Figure 2, every row and every column has at least a box with a
strong relationship symbol. The methodology is visualized in Fig. 3. The lean design methodology for disruptive innovation
Figure 3. Go-to-gemba is a concept used in quality planning
[24]. Its role is to make a deep market analysis. Mind-mapping The first key stage on provoking disruption (or disruptive
is a brainstorming tool [24]. Details about directed evolution thinking) in the methodology from Figure 3 is in the point
can be consulted in [25,26]. The 9-Windows method is where the cost objective is established. The second moment is
introduced in [26]. Both directed evolution vectors and 9- during the application of blue ocean strategy. The toolkit of
Windows method help in understanding “possible futures” of disruption tools must help in defining the paths of investigation
the current technology. Blue ocean concept originates from and ideation within the space shaped by cost objective and blue
[27]. Its role is mainly to innovate the business model. The tool- ocean strategy. Because many conflicts and constrains occur in
box of 10 disruption tools is proposed in [28] and it effectively this space, TRIZ method is a reliable mean in helping engineers
helps to disrupt the current technology based on information to formulate adequate solutions or to suggest areas where more
revealed in the previous steps of the methodology. The tool- fundamental research is necessary to produce disruption.
box is about: a) activate resonance; b) introduce neutral
elements; c) act against the wolf-pack spirit; d) use centrifugal
156 S. Brad et al. / Procedia CIRP 50 (2016) 153 – 159

5. Illustrative example physical systems (CPS) made available residential solutions


un-attractive in spite of their advantages (e.g. stability, support,
The methodology from section 4 was actually developed to standardization).
solve an engineering project in the field of smart buildings. In If one would take a closer look upon the requirements of
this respect the high-end technology selected for research was residential BAS, it could observe a reduced number of
the professional building automation systems (BAS). requirements (heating control, energy meters, smoke, light),
Professional building automation systems were first deployed therefore a reduced number of hardware. Still, the importance
for non-residential buildings (e.g. office buildings, hospitals, stands in the customization abilities to match inhabitant needs.
universities, factories, etc.). With the emergence of low cost embedded systems enhanced
Directed evolution and 9-Windows technique applied to this with Ethernet connectivity (wired or wireless), the deployment
technology show a tendency towards connecting more-and- of BAS standards like KNX, BACnet and other derived
more smarter devices, wireless control, and much more communication fieldbuses to residential buildings will be
embeddedness of controllers, move on cloud, cyber protection unnecessary due to their complexity and additional equipment
and actionable analytics. requirement to bridge different fieldbuses (e.g. gateways,
Go-to-gemba applied on high-end consumers (e.g. high-tech couplers, controllers).
research labs, automated factories, hospitals) revealed a Some solutions for residential BAS already exist onto the
decreasing in use of the full-pallet of functions after two or market. For example, Siemens offers off-the-shelf residential
more year-period of exploitation due to complications in BAS products under the brand Synco. They are dedicated to
maintenance. Mostly, the long-term focus is on energy co- small living areas and are based on KNX communication
generation and control, heating/cooling control, lighting protocol standard. Benefits of Synco architecture are the
control, Internet control of devices and equipment, access following: individual room HVAC control (heating, ventilation
control and security control, presence control. and air conditioning), lights and blinds control, metering and
Go-to-gemba applied on low-end consumers (e.g. schools, easy data visualization, doors and windows monitoring to
villas of wealthy people, office buildings) disclosed a main prevent unattended guests, utilities damage notification (e.g.
pipe breakdown) and remote access. Costs for automating an
interest for a limited number of functions in building
apartment with two rooms with the above mentioned benefits
automation, especially access control and security control, light
start from 4500 €, with a 20% discount out of price lists,
control, gas and electricity control, water control.
considering they are bought by an integrator and regardless of
Using the Mind-Map method, a great financial potential has actuating elements. On top of this amount, the workmanship of
been foreseen also within residential areas. A segment of non- the integrator comes. Price estimation for automating a two-
consumers was identified in the owners of usual residential room apartment might start from 7000 € for control and
apartments. Go-to-gemba applied to this new category of monitoring hardware parts and commissioning of the system.
consumers has shown that, in order to become attractive to Nevertheless, final price could vary with respect to many other
residential spaces, BAS shall be able to provide features as external factors (e.g. manufacturer of the actuating elements,
services with a great level of flexibility and reduced costs. size of apartment and outdoor climate), easily reaching values
Market analysis of this category of new consumers reveals of 9000-10,000 € [31].
price objectives starting from 2000-3000 €. Application of the tool-box of disruption vectors is further
To create a “blue ocean” space of the new business model, highlighted. The vector “apply multi-level connections” in
deployment of residential BAS that are capable to cope with combination with the vector “use asymmetry” indicates
individual or family life philosophies and actual needs, while searching for product-service systems and servitization of
maintaining a reduced costs, is a difficult issue to be serviced products. Since interoperability versus costs and customization
by intelligent building management system (BMS) integrators. of delivered services is an important aspect when choosing a
From financial point of view the business model should residential BAS architecture, the indication for residential BAS
consider that, contracted BAS services (including investments integrators is to focus on providing product-service solutions
with hardware, software, maintenance and workmanship) based on high performance CPS modules, which could be
should not exceed the monthly costs of a non-BAS enhanced easily adapted, customized or reconfigured to further increase
residence. the benefits provided by industrial players. The application of
From the flexibility point of view BMS integrators should the disruption vector “harmonize individual goals with
collective goals” led to the top level architecture from Figure
consider interoperability with non-heterogeneous electronics,
4, which is based on a local open source Internet of Things
gadgets, goods or other delivered services of residential
environment (e.g. Thingspeak or Kaa) and is used to gather data
inhabitants’ daily life, which shall exponentially grow once
from available sensors, process data and trigger specific actions
with the emergence of Internet of Things (IoT). upon available actuators from the BAS.
Industry players became aware of the financial potential of By using Ethernet as a physical transportation layer, the
residential BAS and have started to adjust their industrial solution brings the advantage of supplying light loads (e.g.
solutions and know-how for development of residential BAS sensors) using Power over Ethernet (PoE) functionality. The
solutions. Nevertheless, it seems that lack of good role of BMS integrator is to provide the required hardware for
interoperability versus costs and the need of specialized building automation together with required functionalities to
personal for commissioning of actual residential BAS meet inhabitant’s needs. The proposed control architecture
solutions, together with the emergence of Internet of Things allows fast deployment of interoperability between vendor
(IoT) and explosion of low costs and high performance cyber- specific equipment by using CPS. To design the model of the
S. Brad et al. / Procedia CIRP 50 (2016) 153 – 159 157

CPS, the “activate resonance” vector from the tool-box proved should be enhanced with artificial intelligence (AI) learning
to be useful. algorithms to allow basic local control functionalities in case of
system failure. Data storage is also necessary to locally record
data in event of connectivity failure or system failure. The local
cloud environment should provide means to visualize data in a
user-friendly way, together with remote control.
From financial point of view, cost for automating the same
apartment by using the proposed control architecture would be
50% up to 70% lower than reference solutions currently
existent onto the market, while providing an open source
architecture [2,8]. Considering the reduced costs, integrators
could offer BAS functionalities and hardware as services, with
fast recovery of investments, thus producing a real disruption
in the market.
The 6 Hats method is further applied to check the quality of
results from six key perspectives:
a) objective and facts-based: available technology;
b) negative and critical: market is extremely dynamic,
technologies are changing rapidly (e.g. LoRa WAN
technologies for IoT);
c) positive and emotional: the business can be run rapidly
and it is based on co-invention of applications, thus
flexible to technology evolution;
d) creative and nonlinear: product-service system model is
considered;
e) flow and process-based: partnerships are easy to
establish;
f) benefits and value added-based: market is global.
Application of LOTUS technique to detail the concept of
smart CPS has generated various solutions for various
purposes, thus proving the flexibility of the CPS model from
Figure 5. Three examples of technical solutions of the smart
Fig. 4. The proposed BAS architecture
CPS are introduced in Figure 6. The CPSs considered in these
solutions are built out of two parts. First part is a commercially
It suggests that more components should be integrated into
available and low costs embedded system development
one unit. The proposed model for CPS used within BAS should
platform from Freescale (FRDM-KL46Z) with an ARM
consider the architecture from Figure 5.
Cortex-M0+ core running at 48MHz. Second part is a custom
designed and developed accommodation board which provides
the required circuitry to achieve specific BAS tasks as
presented within BAS architecture. Development of specific
functionalities and control logic in order to achieve different
tasks can be done using an online compiler or using a Freescale
development environment.

Fig. 5. The proposed model of smart CPS

Built around high performance embedded systems, CPS


Fig. 6. Examples of technical materialization of the CPS model
should contain a virtual model for the accommodated sensors
or actuators in order to achieve monitoring and control
The left-side one was designed to drive a smart electrical
functionalities. Data is sent using the network interface, either
axis for door open and close. The middle one was designed to
to assigned BMS components or directly to the local cloud
operate multiple I/O signals. The right-side one was designed
environment for processing and centralized control. Every CPS
158 S. Brad et al. / Procedia CIRP 50 (2016) 153 – 159

to control an electrical gearbox dc motor for window control. disruptive thinking. Other frameworks like Unified Structured
Technologies integrated in these solutions are very cheap, not Inventive Thinking (USIT) [32], Advanced Systematic
exceeding 100 € per CPS and are accessible in a wide variety Inventive Thinking (ASIT) [33], etc. could bring similar
onto the market. In addition, they are connectable to open results. Also, there is no argument to say that the proposed
source IoT platforms, having the possibility to control CPS via methodology should be applied as it is and full, jut for the sick
Internet. of rigorousness. This actually happened in the case study from
In this case study, CPS solutions were built with this paper, too.
components already available on the market, innovation focus Sometimes, the 6 Hats technique can be skipped when
mainly being on “configuration design”. This also shows engineers succeed to ideate promising solutions in the earlier
capacity of disruption in terms of business models and supply steps of the methodology. Despite the fact this kind of things
chain management. can often happen in practice because of high experience of the
design team, a review of solutions with 6 Hats technique seems
6. Discussions on results to be very beneficial, just from the simple fact that it helps for
better configuring the position of the proposed solutions with
Disruption innovation is about designing technical solutions respect to peer ones.
under strong cost constrains, while keeping the quality At this stage of research, the ten disruption vectors have
standards in terms of functionalities and performance. It uses been used randomly in the ideation process. It might be
the know-how of the original technology as a reference and/or possible that a smart combination of these vectors to activate
source of inspiration, but approaches the problem from a higher thinking potentials and idea associations. This space of
different angle. In the case study introduced in this paper, action is open for more investigations in future researches.
disruption made possible the reconsideration of innovation Nevertheless, after a series of applications in more projects
from product-driven business to service-driven business. from different technological fields, the methodology could
Moreover, due to the solutions of the CPS model and BAS probably be refined.
architecture proposed in this paper, integrators are not vendor
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