Chapter5 Innovation and Design MIT VGS Loni Activity: Write 3 points in your notebook for each of these questions What concepts are difficult to imagine? What constitutes unimaginable? What is “limited imagination”? Are these inventions success or failure? Ready to built house in 2 days timeframe These tanks are attached behind aircraft and are then put in the war zone to make the time factor less • This portable record player was invented in 1980s. Invention Thought process • Creative • Innovative • Factual and procedural knowledge • Needs and limitations of the end user Purpose • Basic Human Needs • Self fulfilment • Financial Gain • Altruism The Lone Inventor • https://www.mentalfloss.com/article/49434/sxsw-myth-lone-inventor • A person who is outside any organization and inventing only on own. • Is it advantageous or disadvantageous? • Does the world accept the lone inventor’s invention – Think about the radical change concept • Can the expertise requirement in all aspects be carried on with Lone Inventor Strategy? Lots of debates are on this going on in the world! What is Intellectual Property? (IP) • IP is protected in law by, for example, Patents, Copyright and Trademarks, which enable people to earn recognition or financial benefit from what they invent or create. By striking the right balance between the interests of innovators and the wider public interest, the IP system aims to foster an environment in which creativity and innovation can flourish. Patents https://www.youtube.com/watch?v=AzQzSUZsT_k • Physical products • Manufacturing Processes • Software • Materials development • Methods of business • Design • Invention should be new and not a derivative of any existing patent • Patent is country specific based on the country’s rules and regulations. But global patent can be done. Types of patents • Utility patents – 20 years from date of filing of patent Utility patents are grouped into five categories: a process, a machine, a manufacture, a composition of matter, or an improvement of an existing idea. If you acquire a utility patent, you can stop others from making, using, selling and importing the invention. • Design patents – 14 years from date of filing of patent A design patent is granted for product designs—for example, an IKEA chair, Keith Haring wallpaper, or a Manolo Blahnik shoe. You can even get a design patent for a computer screen icon. There are strings attached to a design patent, however. The design must be ornamental or aesthetic; it cannot be functional but has purposeful utility. • Plant patents – 14 years from date of filing of patent Example: cultivating different types of plants to create mutants or hybrids and also newly found seedlings. Copyright: In the case of original literary, dramatic, musical and artistic works, the duration of copyright is the lifetime of the author or artist, and 60 years counted from the year following the death of the author. https://www.mondaq.com/india/licensing-syndication/406982/copyright-law-in-india • Copyright ownership gives the owner the exclusive right to use the work, with some exceptions. When a person creates an original work, fixed in a tangible medium, he or she automatically owns copyright to the work. • Many types of works are eligible for copyright protection, for example: • Audiovisual works, such as TV shows, movies, and online videos • Sound recordings and musical compositions • Written works, such as lectures, articles, books, and musical compositions • Visual works, such as paintings, posters, and advertisements • Video games and computer software • Dramatic works, such as plays and musicals • Copyright is country specific. It depends on the country relations for extending the copyright across different countries. Trademark: Has to file within 10 years; Lifetime availability • A trademark is a recognizable insignia, phrase, word, or symbol that denotes a specific product and legally differentiates it from all other products of its kind. • A trademark exclusively identifies a product as belonging to a specific company and recognizes the company's ownership of the brand. • Trademark is related to the brand • Service mark is the phrase used for the service offered First to Market vs Patent • Patent takes long time • So, if you are the designer and have invented the product, will you wait for the patent or look for the opportunity to do an early strategic move to the market for profitability? • Give your opinion. Shelved Technologies • Scenario 1: Company A has TM and SM of its own. Company B has TM and SM of its own. A takes over B. What will happen to TM and SM of B? Scenario 2: There can be patents which are not commercially viable for the target market as far as costing is concerned. Brainstorm • Is there any aspect of your IA product which can be registered for patent? A4 paper challenge : 5mins Innovate something with the A4 paper you have with you. Give a name to your solution Give a tag line of your solution Innovation • Deals with Product Gap to place in the market to be used by the target users • Mainly to cater with unbiased analysis of consumers and commercial opportunities. • Invention + usage of that invention in creating solutions to be used by the people which can be purposeful for them -> Innovation • Innovation deals with entrepreneurship whereby the market study, requirement and commercial aspects are being worked upon. • Inventors and innovators can be the same or different How inventions can become innovations Study of the following: • Expectation on demand • Magnitude of user requirements • Expectations of profitability • Degree of positivity on market perceptions • Intellectual property feasibility Designers invent but also needs to innovate, as their role demands purposeful solution for target users with commercial aspects also. Categories of Innovation Categories of Innovation: https://hbr.org/2017/06/the-4-types-of-innovation-and-the-problems-they-solve • Sustaining – Improvement of quality of the existing product by adding more features which leads to the sales and sustainability of the product with optimum investment(economics of scale: a proportionate saving in costs gained by an increased level of production - https://www.economicshelp.org/blog/326/concepts/economies-of-scale-examples/). Example: Auto Parking in car, auto clean facility of an oven • Disruptive – Radical Solution: iPhone on its competitors; Market can be an existing market or a new market • Process – Line of production (Fordism)- Mass production with consistent quality; Machines were invented to manufacture cars but the production line innovation is done by Mr. Ford. Strategies for Innovation- Design • Architectural/Configurational – Re-arrangement, links and improvements on the components of the product. Core elements are not changed. New features are not present. Only the linking of the components are changed for betterment. Example: Fan across decades • Radical – Changes the existing core components and creates a new market Example: Dyson Fan (Fan without blades) • Modular: New features incorporated but core design principles are not changed. Example: Spring based balance scales replaced by Digital Balance scale – (Purpose is the same) Brainstorm and keep your points ready You have developed a product; How will you plan for a successful market entry for your product? Strategies for Innovation- Market • Diffusion : Entry to market by spreading about the innovation; “The network Effect”; Word of mouth; Social media platforms • Product Awareness • Brand building • Benchmarking the product • Pricing (sometimes aggressive pricing model is done) • Distribution • Promotion Rogers- Stages of innovation diffusion Strategies for Innovation- Market • Suppression – IP rights and litigation can suppress competitors to enter into the market Class Activity: • You are the innovator of any existing product at home. • You will be giving a speech of innovation for that product. • All the best and look forward to your excellent analysis. Points: • Purpose –Design opportunity(Problem statement) • Target users • Innovation(s) list and how is that helpful (and related connection to Chapter 1) • Strategy of innovation • Category of innovation • Raw materials used • Rapid Prototyping with the prototype development lifecycle • Relation to Chapter2 (Environmental benefits) Strategies for Innovation • Act of insight – Eureka moments – invention (Archimedes Principle, Newton’s gravitational laws), Innovation (steam engine, concept of air conditioning by Sir Willis Carrier) • Adaptation – From nature to successful design ideas – Bullet train cone structure of the nose of the engine is adapted from the Kingfisher beak for the absorption pf sudden pressure change. • Technology Transfer – Scientific knowledge from one field applied to another field with modifications, but basic principles remaining the same. • Analogy – Similarity- transfer idea from one situation to the other Strategies for Innovation • Chance – Accidental discovery – laminated safety glass (laminated plastic – cellulose nitrate) – flask observed – applied in windshields of the car; Penicillin • Technology push – Usage of technology in innovating some purpose and first to market entry • Market pull – Demand of an innovation by the consumers (TP and MP does not entirely work in isolation, but cohesively) Stakeholders in Invention and Innovation • Inventor – New concepts invented • Product Champion – Concept of a product which is accepted both inside(company) and outside the organization(customers) • Entrepreneur – Capital investor with risk calculation • Multidisciplinary Approach – (TOK Title 5 reference) Medici Effect https://www.youtube.com/watch?v=E6ejCJ3b4bA Design Cycle Activity: Identify the subjects related to the design cycle of this product. Justify your reasons. Product Life Cycle Development – Idea generation – Collaborate for final concept Introduction – Pricing strategy - Introduction to market (Market Capture) – Early Adopters Growth – Market stimulation with changes and modifications if needed – Pricing modification not needed Maturity – Product in market – Market penetration - Pricing might be reduced – Differentiation of the product Decline – Demand reduces due to obsolescence or competition Case Studies of product life cycle • PC to tablet – Technology push • Package for different ISPs in telecom industry – Market penetration Case study1 • Take for example a washing machine. Planned obsolescence means that the washing machine (seen opposite) is designed to last about two years, before it breaks down outside the guarantee time. • Most of the components / parts have been manufactured from quality materials with the exception of some vital parts. • Two years after purchase, the washing machine will only need minor inexpensive repairs. However, between 4 to 5 years the vitals parts begin to wear out and a replacement machine is required. • For planned obsolescence to work, the customer must feel that he/she has had value for money. • Furthermore, he/she must have enough confidence in the manufacturer/company, to replace the original washing machine with the modern equivalent machine, from the same manufacturer. Case Study 2 • Planned obsolescence is sometimes designed into a product, in order to encourage the customer to buy the next upgrade. • A good example of this is a mobile phone. Mobile phones are often designed with only current technology in mind, despite the manufacturers knowledge of future technological developments. • For instance, a mobile phone may have USB / connections / jack plugs, that fit current products, such as head phones and computers. • This means that the phone is not future proof. The manufacturer may already be working on updated phones, that connect using different sizes of USB ports / connections. • Although the current phone can be upgraded with software, eventually the ‘old’ USB / connections / jack plugs will make the product obsolete. • The customer will need a new phone, even though there may be nothing wrong with his / her existing phone. The old phone becomes obsolete. Is Planned Obsolescence ethical? https://www.youtube.com/watch?v=4Z1XYM7bC4k Technology has revolutionized the product life cycle Obsolescence of products due to incorporation of technology Incremental or Radical approach Competitive advantage Product version/generation strategy • Multiple version based on features • Special or limited edition products • Based on culture: TOK thought??? Roger’s characteristics of innovation and Consumers • Innovation • Communication channels • Time • Social System • They need to be self sustainable, so capital is needed. Diffusion and Innovation • Purchasing decision of consumers: Social contacts, Multimedia, Personal traits Adoption is closely related to diffusion by also refers to the psychological processing of individuals in the mass market and also the pattern of the psychological processing – Refer to Human Information Processing System Roger’s characteristics on consumer adoption of an innovation • • • • • Relative advantage Compatibility Complexity Observability Trialability Does the consumerism depends on the scientific research details or the subjective evaluation of near ones/market review? https://www.youtube.com/watch?v=Yxco n-jPtak Innovation, design and marketing specifications To what extent does innovation requires detailed design specifications and marketing specifications? Marketing specifications: • Benefits and Advantages of the Product - The basic goal of a marketing specification document is to outline the benefits and advantages of the product to the consumers. • Identify the Target Market - The marketing specification plan should include a discussion of the target market(s) for the product. Who is most likely to buy this product given its benefits? How can the organization tap into the buying power of these consumers? Where is the target market most likely to find out about the product? Answering these questions helps you to position your product in the correct marketing and distribution channels. Know your target market Market Sector Why you will require to survey the market to place you product in the market? What will be your main agenda for the market survey for your product placement? Market Survey for placement of product • Price placement • Current market solutions • Customer niche and demand • Brand recognition and product perception Why bicycles have so many different designs? Target audience • Your target market should include people who share similar demographic characteristics. Demographics include items such as age, gender, income level • https://www.quicksprout.com/ define-your-target-audience/ Because…Design contexts differ for different target markets and audiences. Think about 2 different cultures/communities using same product...and see how it is diff from each other based on the cultural factors Market Analysis…why is it so important?? Think!! • To what extent does innovation is steered by the study of the market requirement (understanding consumer need through surveys) compared to imagination of a solution which can be used by the consumers? Think!! To what extent does innovation depends on: • Expectations on demand from the users • Magnitude of user needs • Expectation of profitability • Degree of positivity of market perception • Feasibility of affording the intellectual property Different needs of the consumers • Out of stock • Product dissatisfaction • Change of circumstances – (Think about the purchasing power during recession; Think about the other factors which can vary the consumer needs based on circumstances) • Related products – Add-on product based on the initial purchase • Market induced needs – trying the trigger the psychology of the consumer to go for that product • New products with trial phase for the user experience • Competition of the target market Research methods for innovation • Literature search – Journals, magazines, industry literature and similar • Qualitative and quantitative research • Qualitative – to identify the preferences – surveying • Quantitative – Data logging while testing, scale models, full scale product testing, Lickert scale for (rating) of the feeling of the consumers • Computer simulations • Controlled experiments based on defined variables Design Specification and Marketing specification • Suitable analysis and planning leads to successful innovation • Proper Design specification and Marketing specification is the backbone of successful innovation
