Topic 5: Innovation and design 13 hours Topic 5: Innovation and design 5.1 Invention 5.2 Innovation 5.3 Strategies for Innovation 5.4 Stakeholders of Invention and Innovation 5.5 Product Life Cycle 5.6 Rogers characteristics of innovation and consumers 5.7 Innovation, design and marketing specifications http://www.ibdesigntech.com/ 5.1 Invention Essential idea: The protection of a novel idea of how to solve a problem is a major factor in commercial design. Nature Of Design: Invention by lone inventors or in collaborative, creative teams is at the forefront of design. Designers must not only be creative and innovative, but also understand the concepts that will make a new product viable. A designer must use imagination and be firmly grounded in factual and procedural knowledge while remembering the needs and limitations of the end user. 5.1 Invention Concepts and principles: • Drivers for invention • The lone inventor • Intellectual property (IP) • Strategies for protecting IP: patents, trademarks, design protection, copyright. • First to market • Shelved technologies 5.1 Invention Invention: The process of discovering a principle . A technical advance in a particular field often resulting in a novel product. http://www.youtube.com/watch?v=NolPbm__UN8 • Drivers for invention 1. Personal motivation to express creativity for personal Interest 2. scientific or technical curiosity 3. constructive discontent 4. desire to make money 5. desire to help others . 5.1 Invention • Drivers for invention Traits that all great inventors have Personal motivation to express creativity for personal Interest Project your mind into imagination space, focusing on all the interrelated aspects of what you are creating or inventing. To create your Eureka Moment, you must forcefully move your mind beyond existing thinking about the subject. You must move out of your conscious world and focus your mind in a new place occupied only by the new creation. This is your glorious imagination space. 5.1 Invention . • Drivers for invention Some people, very few, keep this imaginative ability through adulthood. Their imaginings lead to inventions, art, designs and explorations of many frontiers never seen before. To start, try to be a child with the almost naive capability of unfettered imagination. Emotion is part of this creative formula, and that has not been replaced in any advanced computer. 5.1 Invention • Drivers for invention http://www.youtube.com/watch?v=3NXD_ahwS7I scientific or technical curiosity Unleash your curiosity, quest for knowledge and propensity for noticing things. No lesser minds than Leonardo da Vinci and Albert Einstein were noted for being passionately curious, using their imagination as their prime lens to see ahead and their creativity to solve problems. Einstein wrote: "The important thing is not to stop questioning." You should also notice things, however unrelated to your quest they may seem. When Will Carrier noticed the apparently odd behavior of water droplets in fog, he had stumbled into the basics of the novel technology of the Carrier Corporation, world leader in air conditioning. 5.1 Invention • Drivers for invention constructive discontent Constructive discontent :Analyzing a situation which would benefit from re –design , and working out a strategy for improving it . Creative designers are frequently dissatisfied with what exists and want to make the situation better. 5.1 Invention • Drivers for invention desire to make money In order to make money from your invention, you can do it yourself or find the right partners to offer the necessary resources in order to manufacture or market your invention. There are several ways to make money from inventions. You will need to choose between the alternatives and identify the most profitable and feasible way based on your resources and needs. The ways you might make money from your invention fall under three basic paths. You can sell the patent or rights to your invention outright. You can license your invention. You can produce and market and sell your invention yourself. 5.1 Invention • Drivers for invention desire to help others Focus on the practical, useful, needed and beautiful. Very often inventions and other creations start out answering to a major need or a broad interest. Then the project morphs into a personal passion with little or no market value. Whether you're a garage tinkerer or a Thomas Edison, ultimately your commercial success depends on developing something which economically fills a real need and which looks attractive to potential buyers. As you develop prototypes, theories or compositions, show them to people in the market for overall attractiveness feedback. 5.1 Invention • The lone inventor What is a loner inventor? Lone inventor: An individual working outside or inside an organization who is committed to the invention of a novel and often becomes isolated because he or she is engrossed with ideas that imply change and are resisted by others Why it is becoming increasingly difficult to be a successful lone inventor. Most products are now becoming extremely complex and rely on expertise from various disciplines .Most designs are developed by multidisciplinary teams of inventors/designers. The amount of investment required is often large and beyond the resources of one individual. 5.1 Invention • The lone inventors 1. Individuals with a goal of the complete invention of a new and somewhat revolutionary product. 2. Have ideas that are completely new and different. 3. May not comprehend or give sufficient care to the marketing and sales of there product. 4. Are usually isolated, and have no backing towards their design. 5. Are having a harder time to push forward their designs, especially in a market where large investments are required for success. 6. Their ideas, because of how different they are often resisted by other employees and workers. 5.1 Invention • The lone inventor • Lone inventors work alone and are use to setting their own goals. • Don't work in teams usually so team goals may prove difficult to adhere to. • Most likely be dogmatic which is less conducive to team work • Are not flexible Most products are now extremely complex and rely on expertise from various disciplines. Most designs are developed by multidisciplinary teams. Modern Products such as smart-phones, printer/scanners are very complex. Requires knowledge from many disciplines. It would be unlikely that a lone inventor would have the expertise in all the disciplines. Most modern day designs are developed in multidisciplinary teams 5.1 Invention • The lone inventor • The lone inventor may lack the business acumen to push the invention through to innovation. The product champion is often a forceful personality with much influence in a company. He or she is more astute at being able to push the idea forward through the various business channels and is often able to consider the merits of the invention more objectively. 5.1 Invention Class work The lone inventor • Discuss the advantages and disadvantages of being a lone inventor. Work in pairs. Start with an introduction, conduct relevant research, and conclude your findings in a table of advantages and disadvantages, 5.1 Invention The lone inventor Advantages Disadvantages get through your idea alone therefore no need to report back to someone of higher authority May be too expensive to purchase or manufacture Doesn’t have to be restricted with deadlines and set requirements Modern product are very complex therefore need a multidisciplinary team If any profit was made, it would undividedly go to the lone inventor Not enough knowledge to market and commercialize the product Lack of financial support to support the product Resistance from others 5.1 Invention • IP (Intellectual Property) Although many of the legal principles governing intellectual property rights have evolved over centuries, it was not until the 19th century that the term intellectual property began to be used, and not until the late 20th century that it became commonplace in the majority of the world. 5.1 Invention • IP (Intellectual Property) Benefits of IP include: • differentiating a business from competitors • selling or licensing to provide revenue streams • offering customers something new and different • marketing/branding its value as an asset 5.1 Invention • IP (Intellectual Property) http://www.symbols.com/category.php?id=19 Intellectual property (IP) is a legal concept which refers to creations of the mind for which exclusive rights are recognized. Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property rights include copyright, trademarks, patents, industrial design rights, trade dress, and in some jurisdictions trade secrets 5.1 Invention • IP (Intellectual Property) IP symbols and their application to products and services: patent pending ™®©SM 5.1 Invention • IP (Intellectual Property) The registered trademark symbol, designated by ® (the circled capital letter "R"), is a symbol used to provide notice that the preceding mark is a trademark or service mark that has been registered with a national trademark office. In some countries it is against the law to use the registered trademark symbol for a mark that is not officially registered in any country. Trademarks not officially registered are instead marked with the trademark symbol ™, while unregistered service marks are marked with the service mark symbol ℠. The proper manner to display these symbols is immediately following the mark, and is commonly in superscript style but is not legally required. 5.1 Invention • IP (Intellectual Property) ℠ The service mark symbol, designated by (the letters SM written in superscript style), is a symbol commonly used in the United States to provide notice that the preceding mark is a service mark. This symbol has some legal force, and is typically used for service marks not yet registered with the U.S. Patent and Trademark Office; registered service marks are instead marked with the same symbol used for registered trademarks, the registered trademark symbol ®. The proper manner to display the symbol is immediately following the mark in superscript style. 5.1 Invention • IP (Intellectual Property) The copyright symbol or copyright sign designated by © (a circled capital letter "C") is the symbol used in copyright notices for works other than sound recordings #which are indicated with the ℗ symbol# The use of the symbol is described in United States copyright law and internationally by the Universal Copyright Convention The C stands for copyright 5.1 Invention • IP (Intellectual Property) Copyright is a right given to authors of “original works,” such as books, articles, movies, and computer programs. Copyright gives the exclusive right to reproduce the work, prepare derivative works, or to perform or present the work publicly. Copyrights protect only the form or expression of ideas, not the underlying ideas themselves. While a copyright may be registered to obtain legal advantages, a copyright need not be registered to exist. Rather, a copyright comes into existence automatically the moment the work is “fixed” in a “tangible medium of expression,” and lasts for the life of the author plus seventy years, or for a total of ninety-five years in cases in which the employer owns the copyright. 5.1 Invention • IP (Intellectual Property) The Trademark Symbol, is a symbol used to indicate an assertion that the preceding mark is a trademark. Use of the symbol indicates an assertion that a word, image, or other sign is a trademark; it does not indicate registration. Registered trademarks are indicated using the registered trademark symbol (®), and in some jurisdictions it is unlawful or illegal to use the ® symbol with a mark which has not been registered. 5.1 Invention • IP (Intellectual Property) A trademark is a word, phrase, symbol, or design used to identify the source of goods or services sold, and to distinguish them from the goods or services of others. For example, the Coca-Cola® mark and the design that appears on their soft drink cans identifies them as products of that company, distinguishing them from competitors such as Pepsi®. Trademark law primarily prevents competitors 5.1 Invention • IP (Intellectual Property) from “infringing” upon the trademark, i.e., using “confusingly similar” marks to identify their own goods and services. Unlike copyrights and patents, trademark rights can last indefinitely if the owner continues to use the mark. The term of a federal trademark registration lasts ten years, with ten-year renewal terms being available. 5.1 Invention The effectiveness of strategies for protecting IP Plenty of places will explain how to file for a patent or a trademark registration, and it's true that a federal registration can help enforce your company’s rights. But there are other things you can do to protect your intellectual property. Here are a few. 1. Employ Internal Controls Controlling who has access to your intellectual property and other sensitive information is key. And for confidential information that's harder to register such as business plans, trade secrets, and customer lists, controlling who has access to them can keep things on lockdown. Employees or contractors working with your intellectual property should have an "assignment of inventions" clause or a "work for hire" agreement, in addition to some confidentiality clause. 5.1 Invention The effectiveness of strategies for protecting IP • 2. Sharing Doesn't Always Mean Caring • There will come a time when you have to share information with someone who is not a consultant or employee. That's where a nondisclosure agreement (NDA) comes in. • You might implement "confidential policies" such as putting all verbal communications in writing or making written information “confidential.” But above all, be sure to limit the other party's access, especially people on a “need to know” basis, such as accountants, lawyers, or a board of directors. 5.1 Invention The effectiveness of strategies for protecting IP • 2. Sharing Doesn't Always Mean Caring • Sometimes an NDA won't happen. Venture capitalists almost never sign them, as they manage hundreds of thousands of intellectual property. In the end, you'll just have to balance the advantages of collaboration—investment, sharing R&D resources, outsourcing, or a potential deal—against the risks of having the other side disclose your information. 5.1 Invention The effectiveness of strategies for protecting IP 3. Have a Solid Defense • If you have a brand name and learn another company is using it, don't let it drag on for too long. • Many companies trot out the old cease and desist letter, which is easy enough to find online. “take all appropriate legal action.” 5.1 Invention Discussion http://inventors.about.com/cs/basicshowtoinvent/a/aa041599.htm Reasons why some innovators decide not to protect their IP and alternative strategies to ensure success? There are arguments from both sides on this point. However, some experts suggest not spending the time or money on a patent, instead they suggest taking your invention straight to the marketplace. Only a tiny percentage of patents make money. If your invention is a very simple item you might want to consider that approach. Did you know that one very successful invention that was never patented was Rubik's Cube? 5.1 Invention Discussion Reasons why some innovators decide not to protect their IP and alternative strategies to ensure success? The traditional approach teaches an inventor to: • protect his/her invention • do a patent search • file a patent application • make prototypes and • see if they can make some sales It will cost you a lot of money and a lot of time and will almost assuredly result in worthless, ineffective patents. Why? 5.1 Invention Discussion Reasons why some innovators decide not to protect their IP and alternative strategies to ensure success? In contrast to the traditional approach, the expert inventor knows that patents cost money, they don't earn money. They also know that they are not going to waste their valuable money, time and efforts on a whim. But the best news of all is that expert inventors know how to do this with very little out of pocket expense! 5.1 Invention Discussion Reasons why some innovators decide not to protect their IP and alternative strategies to ensure success? Alternative strategies to IP 1-There are laws that state that the inventor who is first to conceive of an idea, then reduce it to practice (that is, prove that it works the way you say it does) will be acknowledged as the legal inventor. The other issue that an inventor should keep in mind is that if work on the invention has been abandoned, then he/she will lose those rights. In other words, you have to proceed with due diligence in your development and cannot let large amounts of time elapse. The best way to track your day-to-day activities is by using a legal, bound journal. 5.1 Invention Discussion Reasons why some innovators decide not to protect their IP and alternative strategies to ensure success? Alternative strategies to IP 2- smart inventors know that being successful means making money, not getting patents. Thus, expert inventors make sure their products are sellable before filing for patents. In a complete reversal of the traditional method (the 97% failure rate), which puts marketing last, smart inventors qualify the market potential right up front! After protecting their invention, they will work confidentially with marketing experts in the field of their invention that can secure some substantial sales commitments. Then, they will work with manufacturing experts to get their invention made cost effectively. Discussion 5.1 Invention Reasons why some patented inventions are Shelved Classroom activity • Work in pairs to discuss three reasons why some patented inventions are shelved. Support your argument with research and examples. 5.1 Invention Reasons why some patented inventions are Shelved: 1. Inappropriate properties 2. Anesthetic appeal 3. Bad connection with the brand (underwear (bic), colgate (food)) 4. Strong competition in the market (the zune while iPod was introduced) 5. Price or value for money was not reasonable to the target group 6. Ingredients that cause health issues (pepsi blue) 7. Bad marketing strategies- branding strategy (dnl vs. 7up) 8. Wrong target group (sophisticated McDonalds meal for adults) 9. Consumers were not appealed by product (crystal pepsi claim that it was a healthy drink) 10. Clients were not convinced with the purpose of the product 11. Function was not suitable 12. Timing – product did not compete with already available product 13. Lack of marketing the product 5.2 Innovation Essential idea: There are many different types of innovation. Nature of design: Designers will be successful in the marketplace when they solve long-standing problems, improve on existing solutions or find a “product gap”. The constant evaluation and redevelopment of products is key, with unbiased analysis of consumers and commercial opportunities. 5.2 Innovation Concepts and principles: • Invention and innovation • Categories of innovation: sustaining innovation, disruptive innovation, process innovation • Innovation strategies for design: architectural innovation, modular innovation, configurational innovation • Innovation strategies for markets: diffusion and suppression 5.2 Innovation • Invention: The process of discovering a principle .A technical advance in a particular field often resulting in a novel product. • Innovation: The business of putting in invention in the marketplace and making it a success. 5.2 Innovation Initial Concept Obsolescence Re-innovation Invention Re-design Innovation Design for the market 5.2 Innovation Why few invention become innovations: 1-Marketability/Need • There may not be a market for the idea. • It can be very difficult to undertake appropriate market research on a new product to establish whether there is a market. • The market may be too small. • The product may go out of fashion. 5.2 Innovation Why few invention become innovations: 2-Marketing • The product may not be marketed properly. • Too little money may be invested in marketing. • The product may not be appropriately targeted to a market segment. 5.2 Innovation Why few invention become innovations: 3-Price • The product may be priced too high. • The product may not represent good value for money for customers. • The product cannot be produced for a viable selling price. 5.2 Innovation Why few invention become innovations: 4-Outlay • Too expensive to get to production. • Too long to achieve return on capital investment. 5.2 Innovation Why few invention become innovations: 5-Risk • Risk too great for potential rewards. • Lack of finance for long-term projects. 5.2 Innovation Categories of Innovation: 1. sustaining innovation 2. disruptive innovation http://www.youtube.com/watch?v=mbPiAzzGap0 3. process innovation 5.2 Innovation Categories of Innovation Sustaining Innovation: This is the type of innovation that Apple excels at, where there is a clearly defined problem and a reasonably good understanding of how to solve it. When Steve Jobs first envisioned the iPod, it was simply a device that allowed you to put “1000 songs in your pocket.” That meant you needed to have a certain amount of memory fit into certain dimensions. Those were difficult problems that took a few years to solve, but it was pretty clear what was involved and who was capable of solving them. • Sustaining innovation is probably the most common in the corporate world and is often referred to as engineering rather than science. Like basic research, much of this is done by internal R&D labs, but many firms outsource it as well. • For instance, when Steve Jobs wanted a mouse for the Macintosh computer, he went to IDEO with clear technical specifications knowing that they had the right skills to produce what he wanted. 5.2 Innovation Categories of Innovation Disruptive Innovation:. These tend to be new approaches to old products and services. Referred to disruptive innovation in the past as crappy innovation because it tends to perform poorly on previously defined parameters (like early digital cameras that took lousy pictures), but outperform on a different parameter, such as price or convenience or compatibility. 5.2 Innovation Categories of Innovation Process innovation can be just as important as product innovation. We are all aware of everyday product innovations such as those in the latest flat screen televisions, computer displays or cell phones. Innovations of this nature often use such techniques as business process reengineering or lean based tools to analyze a process and reduce the number of steps by removing any redundant, repetitive or simply wasteful process steps. It is about applying knowledge and thinking to create services with new processes. 5.2 Innovation Categories of Innovation. Process innovations can be classified as radical when they deliver significant differences to existing processes. Examples: Traditionally glass making went through a number of steps… • Furnace: melting of the raw material ingredients • Casting: the glass in a mold • Hardening: the glass in a special oven • Grinding and polishing: the glass using various grades of abrasives 5.2 Innovation Categories of Innovation 5.2 Innovation Classwork: Research for examples of Categories of Innovation and justify your answer: 1. sustaining innovation Examples: daim, oreo, jansport, johnsons 2. 3. disruptive innovation Examples: fuelband, Samsung gear process innovation Examples: poduction of cars by using robot, dell, redfin, printing on shoes 5.2 Innovation Classwork: Research for examples of Categories of Innovation and justify your answer: 5.2 Innovation Classwork: Research for examples of Categories of Innovation and justify your answer: 5.2 Innovation Classwork: Research for examples of Categories of Innovation and justify your answer: 5.2 Innovation Innovation Strategies: 1. Architectural innovation 2. Modular innovation 3. Define Configurational innovation 5.2 Innovation Innovation Strategies: Define Architectural innovation [Architectural] innovations … change the way in which the components of a product are linked together, while leaving the core design concepts (and thus the basic knowledge underlying the components) untouched . In other words, architectural innovation involves rearranging known parts (components) into new patterns (architectures) to achieve higher levels of system performance on one or more dimensions. 5.2 Innovation Innovation Strategies: Architectural innovation ‘3.5’ disk drives were an architectural innovation over the ‘8’ or ‘14’ Winchester disk drives. The ‘3.5’ disks were smaller, lighter, and lower in cost (in terms of total cost and not cost per Megabyte) than the Winchester architecture. 2. Desktop photocopiers represent an architectural shift over the big standalone photocopiers. 3. Multi-core microprocessor architecture is an architectural shift over single core CPU architectures. 5.2 Innovation Innovation Strategies: Modular innovations will require new knowledge for one or more components, but the architectural knowledge remains unchanged. Around the 1980s most hard disk manufacturers substituted the ferrite read/write heads with thin-metal heads; this is a clear example of modular innovation. The opposite of modular innovation is the architectural innovation. 5.2 Innovation Innovation Strategies: The hard disk industry went through several waves of miniaturization, the first mainframe computers were packed with 14-inch diameter disks, after some years the industry came out with 8‘, 5,25‘, 3,5’ and 1,8‘ disk drives. Each and every time the size of the hard disk diminished the knowledge of the linkages between components was evolving, while the single components were using pretty much the same technology, as a result we classify such changes as architectural innovations. 5.2 Innovation Innovation Strategies: Modular innovation vs architectural Innovation • Modular Innovation is where you maintain the architecture and modify the modules and vice versa. For instance adding more interfaces to a PC. Architectural innovation is where the architecture changes but the modules stay the same. Take for instance the move from delivering applications from client programs resident on a PC to one delivered via a browser. One can view Modular Innovation as incremental change and Architectural Innovation as revolutionary 5.2 Innovation Innovation Strategies: Configurational innovation Generally, a configuration is the arrangement - or the process of making the arrangement - of the parts that make up a whole. Class work look for examples of Configurational strategies 5.2 Innovation Innovation Strategies: Architectural innovation: Cars, electric vehicles Modular innovation Smart phones Configurationally strategies Google chrome 5.2 Innovation Innovation Strategies: 5.2 Innovation • Innovation strategies for markets: diffusion and suppression • Perhaps the best marketing oriented definition of the diffusion process is the adoption of new products and services over time by consumers within social systems as encouraged and marketing activities. This definition recognizes the various components of the process which are important in the spread of an innovation. 5.2 Innovation • Innovation strategies for markets: diffusion and suppression • Having managed to get an innovation manufactured and ready for the market, there are a number of factors that influence how well it will sell and how rapidly it is likely to diffuse: • characteristics of the innovation itself • nature of the market • relevant government regulations. • As an innovation becomes accepted by an increasing number of individual and organisational users it goes through the process of diffusion, which is the process of adoption of an innovation over time from limited use to widespread use in the market. 5.2 Innovation • Innovation strategies for markets: diffusion and suppression • There are also factors that can lead to suppression or delayed adoption of an innovation in the early years of its availability when it may compete with a dominate design. • First of all there may be patent disputes over the ownership of the invention. These can delay widespread sales until it becomes clear who has the right to market the innovation. Then for the duration of the patent other inventors are discouraged from devising improvements when they can't benefit from them. http://www.open.edu/openlearn/science-mathstechnology/engineering-and-technology/design-andinnovation/invention-and-innovation-introduction/content-section-5.13 5.3 Strategies for innovation Essential idea: Designers have a range of strategies for innovation. Nature of design: Companies encourage advancements in technology and services, usually by investing in research and development (R&D) activities. Even though the R&D may be carried out by a range of different experts from varied fields of research, the development process is often based on common principles and strategies to identify the direction of development. This methodology structures the R&D of new technologies and services. 5.3 Strategies for innovation Concepts and principles: Discuss design contexts where each strategy has been used. • Act of insight • Adaptation • Technology transfer • Analogy • Chance • Technology push • Market pull 5.3 Strategies for innovation Discuss design contexts where each strategy has been used. • Act of insight • Suddenly an insight suggests a solution, or the means of achieving a solution, to the inventor. Legendary examples include Newton observing an apple falling from a tree and having his insight into the laws of gravitation or Archimedes leaping from his bath and running naked through the streets shouting ‘Eureka!’ (‘I've found it!’). These vivid images point to the fact that creative ideas can occur when someone is not consciously trying to solve a problem. • These acts of insight are not only dependent upon the state of mind of the inventor, however, but also on the circumstances in which they occur. The image of Archimedes’ moment of insight is familiar. Archimedes realised, allegedly as he lowered himself into his bath, that there was a relationship between his weight and the volume of water displaced. • http://www.open.edu/openlearn/science-maths-technology/engineering-andtechnology/design-and-innovation/invention-and-innovation-introduction/contentsection-11.5 5.3 Strategies for innovation Discuss design contexts where each strategy has been used. • Act of insight • the act or result of apprehending the inner nature of things or of seeing intuitively. • the ability to perceive clearly or deeply; penetration • a penetrating and often sudden understanding, as of a complex situation or problem • the immediate understanding of the significance of an event or action 5.3 Strategies for innovation Discuss design contexts where each strategy has been used. • Adaptation Adaptation: An existing technology or solution to a problem in one field used to provide a new idea for a solution in another. If a problem is in a new context, a solution may be found by finding something similar from another context and adapting it This will save designers effort and time and could be an important approach for finding solutions to a design problem. (E.g. Flight simulators and children's games). 5.3 Strategies for innovation Discuss design contexts where each strategy has been used. • Technology transfer http://www.youtube.com/watch?v=ygX5zcU5vdg • Technology transfer is the process by which technology or knowledge developed in one place or for one purpose is applied and exploited in another place for some other purpose. • The term "technology transfer" historically has been associated with federal activities; however, the process is not restricted to the government. The most common form of technology transfer occurs between federal laboratories and nonfederal organizations such as private industry, academia, and state and local governments 5.3 Strategies for innovation Discuss design contexts where each strategy has been used. • Technology transfer • Technology transfer, also called transfer of technology (TOT), is the process of transferring skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities among governments or universities and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products, processes, applications, materials or services. It is closely related to (and may arguably be considered a subset of) knowledge transfer. Horizontal transfer is the movement of technologies from one area to another. At present transfer of technology (TOT) is primarily horizontal. Vertical transfer occurs when technologies are moved from applied research centers to research and development departments 5.3 Strategies for innovation Discuss design contexts where each strategy has been used. • Analogy Analogy: Drawing on a similar situation for solutions Remote or strange analogies help to stimulate the mind in new ways, (example, cat's eyes in the middle of the road, or sonar based on communication between marine animals, ultrasonic focusing system for cameras was based on how bats navigate in the dark). Think of similar objects which could be used to create new designs for the ball point pen List how and why? 5.3 Strategies for innovation Discuss design contexts where each strategy has been used. • Analogy Analogy: Drawing on a similar situation for solutions 5.3 Strategies for innovation Discuss design contexts where each strategy has been used. • Chance Letting the mind wonder freely to get new ideas is classified as "by chance" method. Another important source of inventions and scientific discoveries is chance, which is strongly associated with acts of insight. As well as the sort of painstaking work that either precedes an invention or goes into the steady improvement in performance, in the development of most inventions there's a moment when chance plays a part. Often people are looking for one thing but find another – perhaps working on one technology when they stumble on the principles behind another. The skill of the inventor lies initially in recognising the significance of a chance discovery and later of persuading others of its significance. http://mind-value.blogspot.com/2007/02/innovation-by-chance-or-directed.html 5.3 Strategies for innovation Discuss design contexts where each strategy has been used. • Chance Examples of innovation by chance http://www.nbcnews.com/id/38870091/ns/technology_and_scienceinnovation/t/greatest-accidental-inventions-all-time/#.U9jvIstZrIV 5.3 Strategies for innovation Discuss design contexts where each strategy has been used. • Technology push Technology push: Where the impetus for a new design emanates from a technological development. • A Technology-push occurs, when internal development comes up with a patent or a technological device that has a high novelty character for the enterprise in the absence of any specific need that customers may have. Often, such a breakthrough innovation is even unknown to the entire industry. • In technology push situations, innovations are created and then appropriate applications or user populations are sought that fit the innovation. • Did the market ask "please give me an iPod with download store" or a camera phone, most likely not so this would be a technology push, when the market asks for better safety features in a car then this would be market pull. • Technology advances often occur some time before the market knows about them so when the new products with the new tech hits the market the line between market pull vs. technology push is blurred. 5.3 Strategies for innovation Discuss design contexts where each strategy has been used. • Technology push A portable sports audio MP3 player with a strap on so that an athlete can listen to music while exercising is an example of technological push where the product is designed in response to the market demand for gadgets combining designer sportswear and digital technology. The technological push for this product stems from the development of MP3 technology and proliferation of internet sites featuring downloadable music. 5.3 Strategies for innovation Discuss design contexts where each strategy has been used. • Market pull Market pull: The initial impetus for the development of a new product is generated by a demand from the market. 5.4 Stakeholders in invention and innovation • Essential idea: There are three key roles in invention and innovation, which can be shared by one or more people. 5.4 Stakeholders in invention and innovation Nature of design: Collaborative generation of knowledge and high efficiency information flow allow for diversity, increased resilience, reliability and stability within an organization. Through participatory research, stakeholders can make full use of the resulting innovation and invention, by transferring findings relevant to the sector in which they are positioned. A designer’s increased awareness through shared industry knowledge enhances profitability and policy. 5.4 Stakeholders in invention and innovation Concepts and principles: • The inventor, the product champion, the entrepreneur • The inventor as a product champion and/or entrepreneur • A multidisciplinary approach to innovation 5.4 Stakeholders in invention and innovation • The inventor, the product champion, the Entrepreneur Lone inventor: An individual working outside or inside an organization who is committed to the invention of a novel and often becomes isolated because he or she is engrossed with ideas that imply change and are resisted by others. 5.4 Stakeholders in invention and innovation • The inventor, the product champion, the Entrepreneur • Product champion: An influenicial individual, usually working within an organization, who develops an enthusiasm for a particular idea or invention and ''champions'' it within that organization. 5.4 Stakeholders in invention and innovation • The inventor, the product champion, the Entrepreneur • Akio Morita, as Sony founder and honorary chairman, was an influential individual within the Sony organization; he had an enthusiasm for the Sony Walkman™ design. Furthermore, he pushed his idea against skeptical colleagues as he believed in his own vision and therefore regarded as a product champion. 5.4 Stakeholders in invention and innovation • Lone inventors • Generally lack the business acumen • Are not forceful enough • Are not team players /work on their own • Spend many years on development • Product champion • Good at taking ideas to the marketplace • Considerable influence in a company • Work in a group • Are business minded • Promote eagerly 5.4 Stakeholders in invention and innovation • The inventor as a product champion and/or Entrepreneur http://www.youtube.com/watch?v=lZKhZmvJuZY Entrepreneurs are leaders willing to take risk and exercise initiative, taking advantage of market opportunities by planning, organizing, and employing resources, often by innovating new or improving existing products. 5.4 Stakeholders in invention and innovation • The inventor as a product champion and/or Entrepreneur Business entrepreneurs often have strong beliefs about a market opportunity and are willing to accept a high level of personal, professional, or financial risk to pursue that opportunity. Business entrepreneurs are often highly regarded in US culture as being a critical component of its capitalistic society. 5.4 Stakeholders in invention and innovation • The inventor as a product champion and/or Entrepreneur http://www.open.edu/openlearn/science-maths-technology/engineering-and-technology/design-and-innovation/invention-and-innovation-introduction/content-section-5.5 Famous American entrepreneurs include: Henry Ford (automobiles), J. Pierpont Morgan (banking), Thomas Edison (electricity/light bulbs), George Eastman (cameras), Barron Collier (advertising), Milton S. Hershey (confections), Bill Gates (computer operating systems and applications), and Steve Jobs (computer hardware, software). Famous British entrepreneurs include: Richard Branson (travel and media), James Dyson (home appliances), Alan Sugar (computers). products. 5.4 Stakeholders in invention and innovation • The inventor as a product champion and/or Entrepreneur Discuss Reasons why inventors often take the role of product champion and or entrepreneur. An inventor makes new things and entrepreneur is someone who starts a business Most products are now becoming extremely complex and rely on expertise from various disciplines . Most designs are developed by multidisciplinary teams of inventors/designers. The amount of investment required is often large and beyond the resources of one individual. 5.4 Stakeholders in invention and innovation Discuss Reasons why inventors often take the role of product champion and or entrepreneur. • Mobile phones are complex products; they incorporate knowledge from different discipline areas .They are also expensive to produce as the requisite investment would be too much for one individual to produce. 5.4 Stakeholders in invention and innovation Concepts and principles: • A multidisciplinary approach to innovation. The advantages and disadvantages of multidisciplinary teams 5.4 Stakeholders in invention and innovation Concepts and principles: • A multidisciplinary approach to innovation. The advantages and disadvantages of multidisciplinary teams Advantages Disadvantages You get a better overall opinions on decisions. The one different point of view might be disregarded. More than one person has the authority to make decisions. Information that is being passed around might be misunderstood. You tackle problems from different perspectives. More parties are involved which increases the risk of lack of confidentiality. It’s a flexible team. Its time consuming and there should be set meeting times, communication issues (different time zones). The outcome is a secure outcome because it is Its more expensive. 5.4 Stakeholders in invention and innovation Concepts and principles: • multidisciplinary team A group composed of members with varied but complimentary experience, qualifications, and skills that contribute to the achievement of the organization's specific objectives. 5.4 Stakeholders in invention and innovation Concepts and principles: • multidisciplinary team • A multidisciplinary approach involves drawing appropriately from multiple disciplines to redefine problems outside of normal boundaries and reach solutions based on a new understanding of complex situations. [1] • Multidisciplinary work is often seen as revolutionary by skillcentred specialists but it is simply a fundamental expression of being guided by holism rather than reductionism, as described by Jan Smuts in his 1926 book Holism and Evolution. One of the major barriers to the multidisciplinary 5.4 Stakeholders in invention and innovation • multidisciplinary team • Multidisciplinary work is often seen as revolutionary by skill-centred specialists but it is simply a fundamental expression of being guided by holism rather than reductionism, as described by Jan Smuts in his 1926 book Holism and Evolution. One of the major barriers to the multidisciplinary approach is the long-established tradition of highly focused professionals cultivating a protective (and thus restrictive) boundary around their area of expertise. This tradition has sometimes been found not to work to the benefit of the wider public interest, and the multidisciplinary approach has recently become of interest to government agencies and some enlightened professional bodies who recognise the advantages of systems thinking for complex problem solving. 5.5 Product life cycle Essential idea: There are several key stages in the product life cycle. Nature of design: Designers need to consider the whole product cycle of potential products, services and systems throughout the design cycle and beyond. Products may have an impact not only on the direct consumer but also on society at large and the environment. 5.5 Product life cycle Concepts and principles: • Key stages of the product life cycle: launch, growth, maturity, decline • Obsolescence: planned, style (fashion), functional, technological • Predictability of the product life cycle • Product versioning/generations 5.5 Product life cycle • Key stages of the product life cycle: launch, growth, maturity, decline Examples of products at different stages of the product life cycle including those new to the market and classic designs 5.5 Product life cycle • Key stages of the product life cycle: launch, growth, maturity, decline Defined as the period that starts with the initial product design (research and development) and ends with the withdrawal of the product from the marketplace. A product life cycle is characterized by specific stages, launch, growth, maturity, decline • . Each stage in a product's life cycle is often linked with changes in the flows of raw materials, parts and distribution to markets. Conventionally, four main stages compose a product's life cycle: 5.5 Product life cycle • Key stages of the product life cycle: launch, growth, maturity, decline • Launch – products that are at the prototype stage or have only just entered the market and are still gaining acceptance. • The Hybrid Car, for example, is in its early stage of the design cycle, because the makers of Hybrid Cars are making great advancements to their product in a very small amount of time, so the Hybrid Car is still researching and making changes to their product since they have first emerged. They are still searching for the best and most efficient way to produce energy from “clean fuel” and Fossil fuels combined to consume dramatically less fossil fuels, and thus, cut expenses in buying fuel that gets more and more expensive every day. 5.5 Product life cycle • Key stages of the product life cycle: launch, growth, maturity, decline • Launch : This stage mainly concerns the development of a new product, from the time is initially conceptualized to the point it is introduced into the market. The corporation having an innovative idea first will often have a period of monopoly until competitors start to copy and/or improve the product (unless a patent is involved as it is the case in industries such as pharmaceuticals). Generally, associated freight flows take place within developed countries and/or close to markets where the product is likely to be adopted. The need for immediate profit is not a pressure. The product is promoted to create awareness. If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution. 5.5 Product life cycle • Key stages of the product life cycle: launch, growth, maturity, decline • Growth : • If the new product is successful (many are not), sales will start to grow and new competitors will enter the market, slowly eroding the market share of the innovative firm. The product starts to be exported to other markets and substantial efforts are made to improve its distribution since competition mainly takes place more on the innovative capabilities of the product than on its price. • Competitors are attracted into the market with very similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over. Advertising spend is high and focuses upon building brand. Market share tends to stabilize. 5.5 Product life cycle • Key stages of the product life cycle: launch, growth, maturity, decline • Maturity: • At this stage, the product has been standardized, is widely available on the market and its distribution is well established. Competition increasingly takes place over cost and a growing share of the production takes place in low cost locations. Associated freight flows are consequently modified to include a greater transnational component. • Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a decreasing rate and then stabilize. Producers attempt to differentiate products and brands are key to this. Price wars and intense competition occur. At this point the market reaches saturation. Producers begin to leave the market due to poor margins. Promotion becomes more widespread and uses a greater variety of media. 5.5 Product life cycle Mature – products that are selling to their maximum potential and have gained acceptance. Example: Ball point pen. The ballpoint pen is in the mature stage, as it still sells well although the design does not change much. People all over the world use pens everyday and people buy pens everyday, as it is still being widely used in everyday life. The only thing that is being changed to the pen today is its aesthetics and features. People create pens in all different styles and sizes, and unique pen designs are emerging everywhere. Cars can be considered as being in the mature stage of the product life cycle as they have already diffused well into the market, gained acceptance and are still selling well. There are no signs of decline in sales. 5.5 Product life cycle Late – products which are in decline. Extension strategies may be used and new forms of technology may be competing for their share of the market. Example: Cassette tape. The cassette tapes are in the last stage, as it has been overtaken by successive generations of products. Today, nobody uses cassette tapes anymore. The cassette tape is old technology. Today, there is newer technology such as the CDs, which was widely used during the early 2000s, and more recently the MP3 and the iPod. The cassette tape may still be used quite extensively in third-world countries, but in the Western World, the cassette tape is outdated, thus being in the late stage of the design cycle. 5.5 Product life cycle • Key stages of the product life cycle: launch, growth, maturity, decline Class work: Describe examples of products at different stages of the product life cycle including those new to the market and classic designs. 5.5 Product life cycle • Key stages of the product life cycle: launch, growth, maturity, decline 5.5 Product life cycle • Key stages of the product life cycle: launch, growth, maturity, decline 5.5 Product life cycle • Obsolescence: planned, style (fashion), functional, technological • Planned obsolescence: A conscious act either to ensure a continuing market or to ensure that safety factors and new technologies can be incorporated into later versions of the product. Business practice of deliberately outdating an item (much before the end of its useful life) by stopping its supply or service support and introducing a newer (often incompatible) model or version. Its objective is to prod the consumer or user to abandon the currently owned item in favor of the 'upgrade.' 5.5 Product life cycle • Obsolescence: planned, style (fashion), functional, technological • Planned, obsolescence is the description given to something that has been designed to have a limited working life. • Planned obsolescence in the United Kingdom “is the process of a product becoming obsolete and/or non-functional after a certain period or amount of use in a way that is planned or designed by the manufacturer”. Planned obsolescence can benefit the producer because the product falls and the consumer is under pressure to purchase again. The competitor can also depend on planned obsolescence. 5.5 Product life cycle • Obsolescence: planned, style (fashion), functional, technological • The concept is to hide the true cost per use from the consumer and increase the price that they are willing to pay. The types of planned obsolescence are technical, material, performance & style obsolescence • Manufacturers may accelerate the obsolescence of a product by introducing new, more desirable products or versions of the existing product. . E.g. Toasters, electric kettles, refrigerators, televisions, mobile phones. • The iPod is a great example. The original iPod and iPod nano were developed at the same time however the nano was not released until years later!! 5.5 Product life cycle • Predictability of the product life cycle • Length of the product life cycle considering the effect of technical development and consumer Trends As the pace of innovation increases the product life cycle of a certain product decreases /shortens . • Such is the case in laptop computers which are an intensely competitive market, with size and power being key issues 5.5 Product life cycle • Obsolescence: planned, style (fashion), functional, technological • Fashion is a style of a trend • McDonald’s Happy Meals – use latest kid’s films to promote their product through packaging and giveaways. The promotion is linked to the length of time a film is a new release, therefore it is planned obsolescence. 5.5 Product life cycle • Obsolescence: planned, style (fashion), functional, technological • Fashion has a very unpredictable effect on product replacement; • Planned obsolescence results in more predictable product replacement; • the consumer declares the product obsolete in fashion due to peer group pressure; the influence of media icons; different styles or trends. • The manufacturer builds in obsolescence, e.g. through the use of less durable materials in planned obsolescence; 5.5 Product life cycle • Product versioning/generations Advantages and disadvantages for a company of introducing new versions and generations of a product Advantages • Increased wealth from sales but increased research and development requirements. E.g. Planned obsolescence is advantageous for manufacturers (a light bulb company that sold an everlasting light bulb would make a lot of money in a short space of time, but soon put its competitors, and itself, out of business). • It keeps factory workers in jobs. • Planned obsolescence is advantageous for manufacturers (a light bulb company that sold an everlasting light bulb would make a lot of money in a short space of time, but soon put its competitors, and itself, out of business). • Planned obsolescence is also useful in the fashion industry, where styles change and develop (partly) due to people changing their clothes when worn out. 5.5 Product life cycle • Product versioning/generations Advantages and disadvantages for a company of introducing new versions and generations of a product Disadvantages • Manufacturers have to invest in increased research and development requirement which tends to be costly. • There is a danger in abandoning the product from the market as a result of failing safety testing (e.g. the crown iron). • Planned obsolescence can be seen as a waste of natural resources and a real problem in the management of the pollution it creates. Disposable lighters, Macdonald's cartons, newspapers all use massive amounts of energy to produce and yet have an extremely limited useful life, creating an immense amount of waste with little opportunity to recycle the materials used. 5.6 Rogers’ characteristics of innovation and consumers • Essential idea: Innovations take time to diffuse into a target audience. 5.6 Rogers’ characteristics of innovation and consumers Nature of design: Rogers’ four main elements that influence the spread of new ideas (innovation, communication channels, time and a social system) rely heavily on human capital. The ideas must be widely accepted in order to be self-sustainable. Designers must consider various cultures and communities to predict how, why and at what rate new ideas and technology will be adopted. 5.6 Rogers’ characteristics of innovation and consumers Concepts and principles: • Diffusion and innovation • The impact of Rogers’ characteristics on consumer adoption of an innovation • Social roots of consumerism • The influence of social media on the diffusion of innovation • The influence of trends and the media on consumer choice • Categories of consumers in relation to technology adoption 5.6 Rogers’ characteristics of innovation and consumers • Diffusion and innovation Diffusion of innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread through cultures. Diffusion is the process by which an innovation is communicated through certain channels over time among the participants in a social system. The four main elements influence the spread of a new idea: the innovation itself, communication channels, time, and a social system. This process relies heavily on human capital. 5.6 Rogers’ characteristics of innovation and consumers • Diffusion and innovation Rogers was concerned that for individuals to adopt an innovation they must make a conscious decision that overcomes their uncertainty about the product or process. He wrote that innovation was not in itself enough to convert people and that they may need to be convinced through a communication process that provides some evidence of future value, that ensures them that the innovation fits into their value system, and that it do so without severely disrupting their established habits and practices. 5.6 Rogers’ characteristics of innovation and consumers • The impact of Rogers’ characteristics on consumer adoption of an innovation Rogers defines several intrinsic characteristics of innovations that influence an individual’s decision to adopt or reject an innovation . http://en.wikipedia.org/wiki/Diffusion_of_innovations#Elements 5.6 Rogers’ characteristics of innovation and consumers • The impact of Rogers’ characteristics on consumer adoption of an innovation Factor Definition Relative advantage How improved an innovation is over the previous generation. Compatibility The level of compatibility that an innovation has to be assimilated into an individual’s life. Complexity If the innovation is perceived as complicated or difficult to use, an individual is unlikely to adopt it. Trialability How easily an innovation may be explored. If a user is able to test an innovation, the individual will be more likely to adopt it. Observability The extent that an innovation is visible to others. An innovation that is more visible will drive communication among the individual’s peers and personal networks and will, in turn, create more positive or negative reactions. . 5.6 Rogers’ characteristics of innovation and consumers • The impact of Rogers’ characteristics on consumer adoption of an innovation . Class work : Research examples of product innovations for each of Rogers’ characteristics. Include: -an image and description of the product -explain how is this product an example of specific character 5.6 Rogers’ characteristics of innovation and consumers Concepts and principles: • Social roots of consumerism Consumerism is a social and economic order and ideology that encourages the acquisition of goods and services in ever-greater amounts. Consumerism is sometimes used in reference to the anthropological and biological phenomena of people purchasing goods and consuming materials in excess of their basic needs, which would make it recognizable in any society including ancient civilizations (e.g. Ancient Egypt, Babylon and Ancient Rome). However, the concept of consumerism is typically used to refer to the historically specific set of relations of production and exchange that emerge from the particular social, political, cultural and technological context of late 19th and early 20th century capitalism with more visible roots in the social transformations of 16th, 17th and 18th century Europe. http://en.wikipedia.org/wiki/Consumerism 5.6 Rogers’ characteristics of innovation and consumers • Social roots of consumerism Consumerism is the social value that encourages people to purchase as many things as they possibly can. And whilst buying is essential to the survival of businesses, individuals and society as a whole, consumerism encourages people to buy things that they do not actually need. Instead it teaches that quality is more important than quantity. Consumerism is largely a media-related idea with the billions of dollars that are spent each year trying to convince people that if they do not have this companies products then their lives will not be as good http://www.lifepaths360.com/index.php/consumerism-and-lifestyle-380/ 5.6 Rogers’ characteristics of innovation and consumers • Social roots of consumerism Consumerism is the social value that encourages people to purchase as many things as they possibly can. And whilst buying is essential to the survival of businesses, individuals and society as a whole, consumerism encourages people to buy things that they do not actually need. Instead it teaches that quality is more important than quantity. Consumerism is largely a media-related idea with the billions of dollars that are spent each year trying to convince people that if they do not have this companies products then their lives will not be as good http://www.lifepaths360.com/index.php/consumerism-and-lifestyle-380/ 5.6 Rogers’ characteristics of innovation and consumers • Social roots of consumerism Compared with Americans in 1957, today we own twice as many cars per person, eat out twice as often and enjoy endless other commodities that weren't around then--big-screen TVs, microwave ovens, SUVs and handheld wireless devices, to name a few. But are we any happier? 5.6 Rogers’ characteristics of innovation and consumers • Social roots of consumerism • We consume a variety of resources and products today having moved beyond basic needs to include luxury items and technological innovations to try to improve efficiency. Such consumption beyond minimal and basic needs is not necessarily a bad thing in and of itself, as throughout history we have always sought to find ways to make our lives a bit easier to live. However, increasingly, there are important issues around consumerism that need to be understood. For example: • How are the products and resources we consume actually produced? • What are the impacts of that process of production on the environment, society, on individuals? • What are the impacts of certain forms of consumption on the environment, on society, on individuals? • Which actors influence our choices of consumption? • Which actors influence how and why things are produced or not? • What is a necessity and what is a luxury? 5.6 Rogers’ characteristics of innovation and consumers • Social roots of consumerism • We consume a variety of resources and products today having moved beyond basic needs to include luxury items and technological innovations to try to improve efficiency. Such consumption beyond minimal and basic needs is not necessarily a bad thing in and of itself, as throughout history we have always sought to find ways to make our lives a bit easier to live. However, increasingly, there are important issues around consumerism that need to be understood. For example: • How do demands on items affect the requirements placed upon the environment? • How do consumption habits change as societies change? • Businesses and advertising are major engines in promoting the consumption of products so that they may survive. How much of what we consume is influenced by their needs versus our needs? • Also influential is the very culture of today in many countries, as well as the media and the political institutions themselves. What is the impact on poorer nations and people on the demands of the wealthier nations and people that are able to afford to consume more? • How do material values influence our relationships with other people? • What impact does that have on our personal values? 5.6 Rogers’ characteristics of innovation and consumers • Social roots of consumerism • Just from these questions, we can likely think of numerous others as well. We can additionally, see that consumerism and consumption are at the core of many, if not most societies. The impacts of consumerism, positive and negative are very significant to all aspects of our lives, as well as our planet. But equally important to bear in mind in discussing consumption patterns is the underlying system that promotes certain types of consumption and not other types. • http://www.globalissues.org/issue/235/consumption-and-consumerism 5.6 Rogers’ characteristics of innovation and consumers • The influence of trends and the media on consumer choice Issues for companies in the global marketplace when attempting to satisfy consumer needs in relation to lifestyle, values and identity 5.6 Rogers’ characteristics of innovation and consumers • The influence of trends and the media on consumer choice http://www.ehow.com/about_6668278_consumer-needs_.html • The term "consumer" refers to an individual who buys goods and services for personal use. The consumer makes the decision on whether to purchase a product or not; thus the consumer is the target of marketing strategies. From an economic perspective, consumer needs control the demands for goods and services. These needs may include unique wants, wishes and desires, as well as emotional attachments towards products and services. 5.6 Rogers’ characteristics of innovation and consumers • The influence of trends and the media on consumer choice • People make purchases to satisfy different kinds of needs. Abraham Maslow, in the early 1940s, created the Hierarchy of Needs theory which states that people are motivated by different levels of need. These needs include: physiological, safety, belonging, esteem and selffulfillment. For example, product lines, such as phones created by Nokia, have been successful because their campaign ad focuses on & ldquo ;connecting people.& rdquo ; The line itself promotes satisfying the need for belonging and love. 5.6 Rogers’ characteristics of innovation and consumers • The influence of trends and the media on consumer choice • New ideas and strategies for products and services surface when accurate consumer needs are obtained and analyzed. For example, a clothing company may have plans to launch a new line of clothing. To ensure success, they may want to know what type of material and design that will capture the customers& rsquo; interest. Accurate and current consumer needs will greatly help the clothing company to devise a product line and a marketing strategy that will sell. Certain improvements in other business sectors, such as customer service and phone support, can also be made through determining consumer needs. All of these adjustments and improvements will result in consumer loyalty and patronage 5.6 Rogers’ characteristics of innovation and consumers • The influence of trends and the media on consumer choice When a need is established, the choice of product or service to fully satisfy it comes after. Factors that may influence the fulfillment of such needs are trust and accessibility. If a product brand has been around for a long time or if it can be found in most stores, it has a higher chance of being purchased. Personality trait and characteristics are also factors that help determine how consumers meet their needs. The pragmatic or practical individual is likely to buy useful, cost-effective products. He prioritizes quality over visual appeal. Consumers who value aesthetics will most probably look into the exterior beauty and harmony of a product. Consumers may also base purchases on someone else’s opinion. Cultural and social values also influence consumer needs. Customers are attracted to product and services that promote increased acceptance and favor in society 5.6 Rogers’ characteristics of innovation and consumers • Categories of consumers in relation to technology adoption http://suewaters.wikispaces.com/Rogers Roger's categories are: Innovators (2.5 %) Early Adopters (13.5 %) Early Majority (34 %) Late Majority (34 %) Laggards (16 %) 5.6 Rogers’ characteristics of innovation and consumers Rogers adopters characteristics are important because: A person's innovation adoption characteristic affects the rate of uptake of an innovation over time Different adopter groups buy into innovation for different reasons and have different expectations People who are innovators and early adopters are easier to convince to innovate 5.6 Rogers’ characteristics of innovation and consumers Rogers adopters characteristics are important because: •Mainstream adopters need different support structure from early adopters in terms of support, different emphasis on technology and teaching practice. •Innovators may require looser and less tightly controlled conditions, while mainstream adopters may require more stability and support 5.6 Rogers’ characteristics of innovation and consumers • Categories of consumers in relation to technology adoption Innovators and early adopters make up only a small proportion of any population (2.5% are innovators and early adopters about 13%) and there are not enough of them to have an impact. 5.6 Rogers’ characteristics of innovation and consumers • Categories of consumers in relation to technology adoption The early and late majority (called the mainstream adopters) make up 64 % of any population and these are the ones who can make the difference to whether an innovation is embedded in an organisation. The early majority are more practical: they do think through the pros and cons of a new idea before they adopt, so they help to make it more tangible and acceptable. But if the support systems and infrastructure aren’t there, they’ll hold back on a commitment. 5.6 Rogers’ characteristics of innovation and consumers • Categories of consumers in relation to technology adoption The late majority, on the other hand, are creatures of habit and predictability. They want to know the rules, they love systems. The beautiful thing about the late majority is that when they don’t find rules or systems, they’ll start figuring them out. 5.6 Rogers’ characteristics of innovation and consumers • Categories of consumers in relation to technology adoption Laggards are very set in their way, and will only adopt innovation when it has become mainstream i.e. standard practice in an organisation. 5.6 Rogers’ characteristics of innovation and consumers Categories of consumers in relation to .technology adoption 5.6 Rogers’ characteristics of innovation and consumers Categories of consumers in relation to technology adoption • Diffusion of existing technologies has been measured using "S curves". These technologies include radio, television, VCR, cable, flush toilet, clothes washer, refrigerator, home ownership, air conditioning, dishwasher, electrified households, telephone, cordless phone, cellular phone, per capita airline miles, personal computer and the Internet. This data can act as a predictor for future innovations. The diffusion of innovations according to Rogers. With successive groups of consumers adopting the new technology (shown in blue), its market share (yellow) will eventually reach the saturation level. In mathematics the S curve is known as the logistic function 5.7 Innovation, design and marketing specifications • Essential idea: Successful innovations typically start with detailed design and marketing specifications. 5.7 Innovation, design and marketing specifications Nature of design: Designers must establish clear parameters for a marketing specification in order to create unique and creative solutions to a problem. Designers need to collect valid and useful data from the target market and audience throughout the design cycle to ensure the specification includes certain essential components. 5.7 Innovation, design and marketing specifications Concepts and principles: • Target markets • Target audiences • Market analysis • User need • Competition • Research methods • Design specifications 5.7 Innovation, design and marketing specifications • Target markets http://en.wikipedia.org/wiki/Target_market A target market is a group of customers towards which a business has decided to aim its marketing efforts and ultimately its merchandise.[1] A well-defined target market is the first element to a marketing strategy. The marketing mix variables of product, place (distribution), promotion and price are the four elements of a marketing mix strategy that determine the success of a product in the marketplace. 5.7 Innovation, design and marketing specifications • Target markets Target markets are groups of individuals that are separated by distinguishable and noticeable aspects. Target markets can be separated by the following aspects: • segmentations - addresses (their location climate region) • demographic/socioeconomic segmentation - (gender, age, income, occupation, education, household size, and stage in the family life cycle) • psychographic segmentation - (similar attitudes, values, and lifestyles) • behavioral segmentation - (occasions, degree of loyalty) • product-related segmentation - (relationship to a product) 5.7 Innovation, design and marketing specifications • Target audiences • In marketing and advertising, a target audience is a specific group of people within the target market at which a product or the marketing message of a product is aimed at. (Kotler 2000)... For example, if a company sells new diet programs for men with heart disease problems (target market) the communication may be aimed at the spouse (target audience) who takes care of the nutrition plan of her husband and child. • A target audience can be formed of people of a certain age group, gender, marital status, etc., e.g. teenagers, females, single people, etc. A combination of factors, e.g. men aged 20–30 is a common target audience. Other groups, although not the main focus, may also be interested. Discovering the appropriate target market(s)and determining the target audience is one of the most important activities in marketing management (Niewenhuizen et al. 2000). The biggest mistake it's possible to make in targeting is trying to reach everybody and ending up appealing to no-one 5.7 Innovation, design and marketing specifications • Market analysis http://en.wikipedia.org/wiki/Market_analysis A market analysis studies the attractiveness and the dynamics of a special market within a special industry. It is part of the industry analysis and thus in turn of the global environmental analysis. Through all of these analyses the strengths, weaknesses, opportunities and threats (SWOT) of a company can be identified. Finally, with the help of a SWOT analysis, adequate business strategies of a company will be defined.[1] The market analysis is also known as a documented investigation of a market that is used to inform a firm's planning activities, particularly around decisions of inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital equipment, promotional activities, and many other aspects of a company. 5.7 Innovation, design and marketing specifications • User need User needs refer to the data and metadata requirements of persons or organisations to meet a particular use or set of uses. Such needs may be specified in terms of the quality dimensions promulgated by international organisations or national agencies 5.7 Innovation, design and marketing specifications • Competition: Rivalry in which every seller tries to get what other sellers are seeking at the same time: sales, profit, and market share by offering the best practicable combination of price, quality, and service. Where the market information flows freely, competition plays a regulatory function in balancing demand and supply. 5.7 Innovation, design and marketing specifications • Research methods • There are two categories of research methods: qualitative and quantitative. Quantitative data collection usually involves numbers, graphs and charts, whereas, qualitative data collection methods deals with feelings and other non-quantifiable elements. • The most popular qualitative methods of data collection and analysis in business studies are interviews, focus groups, observation, case studies, games and role playing etc. 5.7 Innovation, design and marketing specifications • Research methods • Popular quantitative methods of data collection and analysis, on the other hand, include correlation analysis, regression analysis, mean, mode and median and others. • Questionnaires can be used as qualitative, as well as, quantitative method. Specifically, if open-ended questions are used qualitative methods will be used for data analysis. Alternatively, if questionnaire consists of closed-ended questions, then quantitative approach is adopted for data analysis. 5.7 Innovation, design and marketing specifications • Design specifications Essential qualitative and quantitative characteristic that set criteria (such as performance requirements, dimensions, weight, reliability, ruggedness) to be satisfied in designing a component, device, product, or system.