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TOPIC 5: INNOVATION AND DESIGN - Coggle Diagram
TOPIC 5: INNOVATION AND DESIGN
5.1 INVENTION
Drivers for invention
necessity
(mother of invention)
self fulfilment
altruism (for public good)
financial gain
constructive discontent
(not satisfied with existing product)
curiosity (inquisitive explorers)
The lone inventor
during Industrial Revolution, disappeared with 20th century multinational companies (multidisciplinary teams)
[+/-]
Intellectual Property (IP)
benefits: differentiate business from competitors, allows sales, offer something new, marketing/branding, establish an asset
Strategies for protecting IP
Patents
: for inventions/processes, must be new, lasts 20 years, right to prevent from making/selling/using/importing, agrees to publicly share technical information
Copyright
©: for original works of authorship (books, pics, song), work must be original, lasts author's life +70 years, right to control reproduction/derivate works/distribution/display
Trademarks
TM ®: for word/phrase/symbol/design that distinguishes the source of the good, must be identifiable, lasts for as long it is used in commerce, right to use the mark and prevent other from using similar ones
First to market
first product of this type to be introduced onto the market
Shelved technologies
patented inventions not commercially viable
inventions identified and "acquired" by rival companies
5.2 INNOVATION
Invention and Innovation
Invention
: creating something new, may take form of product/service/system
Innovation
: succesful commercialisation of an invention
Why few inventions become innovations?
Marketing
: not successful in the market, poor marketing strategies
Price
: appropriate price for chosen target market
Resistance to change
: consumers not willing to embrace new product
Marketability
: low product demand or not readily saleable
Need for the invention
: no need for a new invention (ex: oil price low, great availability > no need alternative energy resources)
Aversion to risk
: behaviour of consumers/investors under uncertainty/to risk
Financial support
: lack of financial support (outsider: investors, sponsors)
Categories of innovation
Sustaining innovation
: application of incremental adjustments (improvements) to existing products [ex: iPhones, software versioning]
Disruptive innovation
: radical solutions to problems, something new enters the market and disrupts existing market behaviour (creates new market or reshapes existing one) [ex: iPhone]
Process innovation
: improvement in organisation/methods of manufacture [ex: Ford's assembly line]
Innovation strategies for design
Architectural innovation
: same components, new concept [ex: SONY WALKMAN]
Modular innovation
: new components, same concept [ex: reduction in components size: RADIOS]
Configurational innovation
: new components, new concepts [ex: change in the way we interact with the product: CAMERAS: ANALOG > DIGITAL
Radical innovation
: new radical components, existing product [ex: reinvent design, overturns core design concepts: DYSON DESK FAN]
Innovation strategies for markets
Diffusion
: spreading knowledge of innovation through consumers (communication among consumers: social networking > "the network effect" > "word-of-mouth" effect)
Suppression
: new ides/adoption by market is slow [ex: landline]
5.3 STRATEGIES FOR INNOVATION
Act of insight
: "eureka moment", sudden image of potential solution
Adaptation
: solution to a problem in one field adapted in another field
[ex: HOVER LAWN MOWER] (+ biomimicry: successful designs from nature)
Technology transfer
: new technological advances applied to different types of products/systems
Analogy
: idea from one context stimulates solutions' ideas in other contexts
[ex: BATS > SONAR]
Chance
: unexpected discovery leads to an idea
Technology push
: search for marketable applications after an innovative technological breakthrough
(new technology > find a solution > find a market)
[-] high market risk
[+] low technology risk
Market pull
: new idea needed as a result of demand from marketplace (consumers create a need > targeted by manufacturers)
[-] low market risk
[+] high technology risk
5.4 STAKEHOLDERS IN INVENTION AND INNOVATION
Inventor, product champion, entrepreneur
Inventor
: individual who discovers/devises, new material/product/process/improvements [ex: Leonardo da Vinci]
Product champion
: influential individual, passionate, develops enthusiasm for a particular idea, champions/supports/valorises it within/outside organisation [ex: Elon Musk]
Entrepreneur
: individual willing to financially back a new enterprise (business acumen)
Inventor as product champion and/or entrepreneur
continue past inventor stage > promote/control financial aspects [ex: James Dyson, Steve Jobs]
Multidisciplinary approach to innovation
modern products require different disciplines knowledge >
Multidisciplinary teams
: groups create own synergies
[+] wide range of knowledge, new ideas
[+] cross-fertilization ideas
[+] different perspectives
[-] fear of losing ownership > do not share ideas
[-] not used to work in teams
[-] miscommunication
5.5 PRODUCT LIFE CYCLE
Key stages of the product life cycle
product life cycle: product process stages
sales against product development stages
LAUNCH
: product launch on market
slow sales
little profit
target market: early adopters
GROWTH
: market gradually accepts product
diffusion starts
sales expand
changes to stimulate market
increasing demand
MATURITY
: mature stage
steady peak sales (max. profit)
competition
slow sales growth
good market penetration
manufacturers differentiate
DECLINE
: market saturation
sales reduce
need decline (discounts)
Obsolescence
Planned
: developing products with limited lifespan
Style (fashion)
: trends (product no longer desirable) [retro styling > cyclic nature of fashion]
Functional
: products break down
Technological
: new technologies supersede existing ones
Predictability of the product life cycle
technological change, trends, global competition = factors that affect length of a product cycle
Product versioning/generations
Versioning
: selling a product to a group of consumers, then altering it to sell it to a different consumer group
(market grows > manufacturers introduce range of versions > market penetration/growth)
to feed market demand:
versioning better meet target market's needs
improvements
to maintain loyal customers base, + attract new customers
5.6 ROGER'S CHARACTERISTICS OF INNOVATION AND CONSUMERS
Diffusion and Innovation
Theory of innovation diffusion:
understanding what motivates consumers to make purchasing decisions, and how decisions preda through markets
Diffusion
: processes through which new product is accepted by the market
Adoption
: related to thought patterns of individuals within mass markets
adoption rates within market groups and market share (100% = saturation)
Impact of Roger's characteristics on consumer adoption of an innovation
Relative Advantage
: innovation perceived better than the idea it supersede
[ex: innovation productive, efficient, cheaper > Washing machines,
reduction in size, increased efficiency]
Compatibility
: innovation perceived as being consistent with existing values (socially acceptable) [ex: slow acceptance of seatbelts]
Complexity
: innovation is perceived difficult to understand/use (simple concepts > user friendly > higher adoption rates)
Trialability
: innovation may be experimented with
(successful trialability > build confidence)
Social roots of consumerism
Consumerism
: behaviours based around good's consumption and information transmission about societal values/noms through social interaction
Consumer context: lifestyle, consumer value belief system, identity
Influence of social media on the diffusion of innovation
social network > easy-to-access/use social media made sharing info/experiences/opinion instantaneous
Influence of trends and the media on consumer choice
Rogers: diffusion of innovations involves both mass media and Interpersonal communication
disparity between impact of m.m and i.c
Categories of consumers in relation to technology adoption
Innovators
: first to adopt (risk takers, high tolerance of risk)
Early adopters
: first amongst mainstream population (lead other users, use this group for feedback)
Early majority
: pragmatic group, look for confirmation (contribute diffusion process)
Late majority
: skeptical and cautious individuals (after consumer group majority)
Laggards
: resistant to change, opinions based on past products (minimal exposure to media)
5.7 INNOVATION, DESIGN AND MARKETING SPECIFICATIONS
Target Markets
Target market
: defined group of consumers innovator/manufacturer/marketing team plans to target with product/service
Market sector
: subset of target markets that share specific characteristics
Market segment
: consumers identified as having similar characteristics, through market segmentation (demographic characteristics: age, gender...)
Target Audiences
Target audience
: refined subset of target market, group identified through special characteristics (language, culture, age, gender, purchasing trends)
Market analysis
Research/analysis critical for product's success, impacts stages of product development: identifying markets/user needs, generating new concepts/ideas, optimising features (market testing), assessing product viability, gathering reviews
User need
Schmoolkler's theory (1962)
: user needs/market pull
most influential drivers of innovation
(successful innovation > identifies/understands consumers' needs and motivations)
causes for creation of need:
out of stock
product dissatisfaction
change in circumstances
related products/purchases
marketer-induced needs
new products
Competition
analysis of computing designs to establish market need
Research methods
Literature research
: research project starting point
Qualitative research
: users' felings/perspective
Quantitative research
: data logging/acquisition, scale models, full scale product testing, questionnaires, computer simulations
Design specifications
flexible design specifications evolve throughout design process (must be specific, feasible, measurable)
Marketing specification
to identify essential requirements to satisfy user needs:
target market, target audience, market research/analysis, user need, competition
