Innovation
Eur Ing Barry Saunders BSc MIET CEng
The paper clip
• Individually think of as many different uses for
a paperclip as possible in 2 minutes
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Discover the different stages of innovation
Apply the innovation stages to the task
Apply the theories to a practical task
• Research the company
– What does the company do?
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What does Eurocom do?
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Imagineering
Project Finance and Grants
Software Design
Software Development
Market Testing
Proof of Concept
Implementation
Deployment
Auditing
Re-tasking
Re-working
Innovation and Cool Stuff?
Novel Toilet Cleaner
Portable Breathalyser
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USB Head Massager
Metal Detecting Sandals
Monocycle Motorbike
New Social Networks
The paper clip
• In groups of two add at least 10 other items to
the list in 2 minutes
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The paper clip
• In groups of 4-6 add at least 10 other items to
the list in 2 minutes
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The Idea – Eureka!
The “Good Idea” Test
1. Does it solve a problem or pain?
2. Is it novel?
3. Can you find it anywhere else?
4. Do you think about it almost every day?
5. Can you prove it works?
6. If you showed it to 10 people would >1 person want one?
7. Did you really show it to 10 people?
8. Do you know how to find all other people that want it?
9. Does it have a Business Model?
10. Can it be developed, refined and marketed?
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The Idea – Concept Testing
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Is there a comparable competitive
SEO Split Testing
Patent Search
Trademark Search
Consumer Panels (B2B, B2C)
Focus Groups
Build one and test it
Sell one to stranger
Quantative Research
Qualitative Research
Demonstrators
Some things are actually
going pretty well
• Proves basic idea works!
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The Idea – Taking It Forward
Everyone thinks it’s a good idea, I believe in it
and I want to do this! What happens next?
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Cost Benefit Analysis (CBA)
Rapid Development – Quicker, Expensive
Organic Development – Slower, Cheaper
Risk Assessment
What are the “Project Bumps”?
£4,500
£4,000
£3,500
£3,000
£2,500
£2,000
£1,500
£1,000
£500
£0
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High Value Item or Service
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The paper clip
• In your groups decide which 2 or 3 innovative
paperclip ideas you should take forward.
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Idea Mapping and Markets
EXAMPLE
LEVEL 1 IDEA
LEVEL 2 IDEA
LEVEL 2 IDEA
NONEXAMPLE
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Accounting and Legal
Business Services
Construction
Finance
Health Care
Information
Technology
Manufacturing
Media
Food and Beverage
Retail
The Long Tail
Already
Out There
Doesn’t
Exist
COMPETITION
OPPORTUNITIES
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RISK
Nobody
Wants it
The Business Model
How does it make money?
Example
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Model
Replicable
Sales Services (eg. Property)
Lawyer: 0.15% of Sale
Agent: 1.5% of Sale
Yes
Management Services (eg. Property)
Agent : 10% of rent received
Tenant Setup Fee: £80
Yes
Investment (eg. Property)
% yields on invested amount
Yes
Commodity Products (eg. Widgets)
Wholesale: 20% value of
goods
Retail: 40% value of goods
Yes
Bespoke Products (eg. Birthday Cakes)
Money ∞ Package of Hours
Unlikely
Consulting Services
Money ∞ Hours
Possibly
If it has no business model:
• You probably have a hobby!
• You may need some help!
Collaboration
Synergy: More effective use of resources
• Similar goals
• Complimentary skills
• Common development/components
• Common sales channels
• “Venn Diagram” Vision
CLIENT
MANAGEMENT
CRM
SYSTEM
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QUALITY
CONTROL
SYSTEM
SECTOR
KNOWLEDGE
DEVELOPER
MARKETEER
Who gets what?
Structure Arrangements
• Legal setup (Sole Trader, Ltd, LLP)
• Dynamic Share Allocations
• Funds Committed
• Founder Loans
• Time Committed
• Sell Opportunities
• Constantly Reviewed
• Exit Strategies
Sally
Joe
Steve
Dave
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The paper clip
• Which idea would you take forward on this
basis?
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Scaling Up Ideas
The rewards can be high!
Assume “reach” is 100,000 units
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Income based on % of target market and margin
£ margin per unit
Units
£10
£20
£30
£40
£50
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1,000
£10,000
£20,000
£30,000
£40,000
£50,000
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2,000
£20,000
£40,000
£60,000
£80,000
£100,000
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5,000
£50,000
£100,000
£150,000
£200,000
£250,000
10
10,000
£100,000
£200,000
£300,000
£400,000
£500,000
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20,000
£200,000
£400,000
£600,000
£800,000 £1,000,000
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25,000
£250,000
£500,000
£750,000 £1,000,000 £1,250,000
A Case Study – Professional Audio
BASS GUITAR
AMPLIFIER
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EFFECTS PEDALS
A Case Study – Professional Audio
BASS GUITAR
MULTIPLE EFFECTS PEDALS
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AMPLIFIER
A Case Study – Professional Audio
BASS GUITAR
AMPLIFIER
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MULTIPLE EFFECTS PEDALS
The Prototype – Version 1
Splitter - Test the basic idea
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Produces multiple versions of same signal
Allows connection to each effects unit
Allows return from effects path
True Bypass to disable the unit
The Prototype – Version 2
Splitter - Refine the basic idea
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PCB layout
Lower noise improvements
Minimise component costs
Larger case to allow extra channels
The Prototype – Extending the Idea
Combiner – Test the basic idea
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Mixes channels back to main path
Individual Mute per channel
Possible foot-pedal operation
Plugs into return on splitter
Live Demonstration
• Eg. 1 - Frequency Loss
• Eg. 2 - Maintaining Clarity
• Eg. 3 - Examples
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Innovation task
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Summary
• Write down three things you have learnt in
this lesson
• Write down one thing you would like to know
more about
• Write down one product which has inspired
you
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Eurocom Research
Turning ideas into reality
• Proof of Concept
• Feasibility Studies
• Prototyping
• Technical Auditing
• Systems Design
• Software Design
• Hardware Design
• Risk Assessment
• Product Development
• Internet Programming
• Technical Proposals
• Troubleshooting
• Project Finance
• Project Partnering
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