Invention On Demand
Patent-protected suppliers are a particular challenge for procurement. The traditional sourcing strategies are ineffective with these suppliers, who are able to demand just about any price for their product. Simply ignoring the patent protection and in-sourcing the product or having it produced by another supplier is one option. However, the prospect of a very expensive patent lawsuit stands as a clear warning against this approach. However, procurement directors are increasingly searching for alternatives to patent-protected suppliers. One such strategy is “invention on demand.” This is based on TRIZ, an expression that comes from Russian and stands for “theory of inventive problem-solving.” TRIZ utilizes basic empirical laws of inventive thinking and provides a wealth of systematic problem-solving tools.
The invention on demand model of solving problems includes four steps:
Evaluation of the specific technical problem: The technical system is broken down into its smallest elements, and the functional relationships between these elements are depicted in graphic form. This functions model focuses on the end result or end product of the technical system. All other elements are assigned a functional ranking, which takes account of the distance to the end product and a balancing of their useful and detrimental functions. The closer an element is to the product and the more useful functions it possesses, the higher its functional ranking.
Translation of the specific technical problem into a general scientific problem: Starting with the one with the lowest functional ranking (that is, the least useful element), the elements are systematically eliminated. This makes contradictions in the technical system visible as it generates general scientific questions such as: "How can the useful functions of the eliminated element be performed in the absence of that element?" or "How can the remaining elements be made to assume the useful functions of the eliminated element?"
Search for general scientific solutions: The contradictions are systematically resolved. To do this, algorithms are used to search widely diverse areas of physics for potential solutions. This produces a number of ideas—some of them highly exotic—for each of the eliminated elements. These ideas are typically very general in nature and allow for wide scope in implementation. Bundling of these ideas leads to hundreds of rough concepts. At this stage, it is crucial that none of the rough concepts be prematurely discarded. On the contrary, completeness is one of the key aspects of an invention on demand project, and ensures the ability to pursue all possible solutions.
Translation of general scientific solutions into specific technical solutions: The last step in a project of this kind is to develop the rough concepts further into specific and viable technical solutions. To do this, the rough concepts are reviewed in intense discussions with those responsible for the various corporate functions involved; this allows the insights of developers, product managers, marketing, and, of course, procurement, to be taken into account. (At this stage resistance is common, so strong leadership is essential.) One or two dozen rough concepts will usually emerge which are then transformed into commercially viable concepts, most of which are capable of being patented. The duration of a typical invention on demand project, from kick-off to a product capable of being developed commercially, is three to four months .
The results of a project of this kind can be used in many different ways. Some companies use them to build critical capabilities internally. Most see them as a lever for negotiating with their current supplier. With invention on demand, a company can sometimes not only solve the problem of patent-protected suppliers, but also replace expensive components with cheaper ones.