The act of creating a new product, system, or process is an innovation; the result of excogitation, study and experimentation. It is an inductive and/or deductive process. The inductive process involves studying systems that exist, for example, in nature, patents and products, and inducing from the behavior of these systems elemental features for innovating novel products. The deductive process involves deducing such aspects from hypothetical concepts and situations where systems or products could exist. By the application of a combined inductive and deductive approach, this paper reports on a methodology for the creation of innovative products with a broader functional repertoire than traditional designs. This breed of innovative products is coined as transformers, transforming into different configurations or according to different states. Current design theory lacks a systematic methodology for the creation of products that have the ability to transform. This paper identifies analogies in nature, patents, and products along with hypothesizing the existence of such products in different environments and situations. Transformation design principles are extracted by studying key design features and functional elements that make up a transforming product. These principles are defined and categorized according to their roles in general transformations. The principles and categorizations are then validated and applied to conceptualize transforming products as part of an innovative design process.

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