Application of the Butterfly Diagram for Business and e-Commerce Innovation Cases

Abstract

Innovative cases have something in common that they solved contradiction relations hidden in given problems. General Motor’s Installment Financing, Diffie-and-Hellman’s public key cryptography, Toyota’s Just-In-Time production system, and SK Telecom’s Gifticon are the examples. In order to solve problems, it is important to represent the problem with an appropriate notation. However, we hardly found the systematic representation method for the contradiction problems belong to business and e-Commerce innovations. When we confront a difficult problem to solve, if we can figure out the problem structure and the problem type, then we can easily solve the problem because they help to reduce the problem space. In this research, we present the Butterfly Diagram for contradiction problem solving to draw innovative problem solution strategies by analyzing the trade-off relations and the contradiction relations hidden in dilemmas. In addition, we proposed a few implications by applying the Butterfly Diagram for contradiction problem solving to the business and e-Commerce innovative cases.