An Introduction to Innovation Thomas J. Howard [email protected]Unless otherwise stated, this material is under a Creative Commons 3.0 Attribution–Share-Alike licence and can be freely modified, used and redistributed but only under the same licence and if including the following statement: “Original material by Thomas J. Howard for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark”
Unless otherwise stated, this material is under a Creative Commons 3.0 Attribution–Share-Alike licence and can be freely modified, used and redistributed but only under the same licence and if including the following statement:
“Original material by Thomas J. Howard for course 42629 – Innovation and Product Development Department of Mechanical Engineering, The Technical University of Denmark”
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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What is Innovation?
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Definitions…
• “An innovation is an idea, practice, or object that is perceived as new by an individual or other unit of adoption” Rogers (1995)
• “Innovation is the successful exploitation of ideas” DTI (2004)
• “Innovations are new things in the business of producing, distributing and consuming new products or services” Betje (1998)
• “The first commercial application or production of a new process or product” Freemen & Soete (1997)
• “The things that make your wonder how it was done before they appeared on the market” Tim McAloone 2010 during a drinking session with Sofiane Achiche and Thomas Howard, Copenhagen K.
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Image taken from http://www.effectiveui.com/blog/wp-content/uploads/2008/10/innovation.png
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Famous Inventions…
BicycleRadio Computer Penicillin Internal Combustion Engine World Wide Web Light Bulb Cat’s Eyes TelevisionTelephone
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Spengler Hoover
Howe
Singer
Invention vs. Innovation
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Invention vs. Innovation
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Invention Commercialisation Diffusion
INNOVATION
Invention, Commercialisation & Diffusion
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Innovation…?
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Completely New Products
New Product Lines
Product Re-positioning
Newness to market
Newness to Company
CostReductions
Improvements to Existing Products
LineExtensions
Source: Adapted from R.G.Cooper (2001)
Degree of Innovation
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Classifying Innovation
R. Garcia, R. Calantone (2002), A critical look at technological innovation typology and innovativeness terminology: a literature review
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Technical
Innovators
Market
Innovators
Paradigm
Innovators
Application
Innovators
Novelty of Market
Novelt
y o
f Te
chn
olo
gy
Established Emerging
Breakthrough
Technology/Market Taxonomy
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Typology – Markets & Technology
• Application Innovator– Uses existing technology to produce complementary products– Usually into more specialised/niche markets
• Market Innovator– Develop new markets with existing technologies
• Technology Innovators– New technologies used in new products sold in established
markets
• Paradigm Innovators– New technologies, new products and new markets
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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The iPhone applications provide a user with a slew of different kinds of features or attributes. The new version equips a user with a camera producing good quality photos but the older version had only 2.0 mega pixel camera. In the latest iPhone version, you can click photos and also edit the images.
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Market Innovators: The Sims
Will Wright and Maxis team created tools, and mechanisms with which to construct relationships between objects, and some basic spaces - but that’s it. The rest is over to the user.
Therefore, a pretty adaptive approach and extraordinarily successful:
The best selling computer game of all time (with significant female userbase) so it clearly tapped into something.www.cityofsound.typepad.com/blog/designingforadaptation.ppt%20
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Technology Innovators
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Paradigm InnovatorsThe Global Positioning System is a constellation of 31 satellites that is used to calculate your position.
www2.hawaii.edu/~mpolende/p7mylafep.ppt
In 1991 WiFi was developed in the Netherlands by Vic Hayes under the former NCR Corporation/AT&T.
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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3 Routes to Invention
Corporate
( Closed )
Open
Invention
Individual
( heroic )
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Risky business…
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Sometimes it works
http://bit.ly/A1fBtA Shared using Image Space Media (www.imagespacemedia.com)
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Why do Innovations fail?
• Technological failure – it doesn’t work
• e.g. Rolls-Royce’s ‘Hyfil’ carbon fibre fan blade
• Market failure–Change in market conditions
• e.g. Dupont’s Corfam artificial leather–Product doesn’t meet consumer needs
• e.g. Sinclair C5 electric car had a range of 6 miles–Poor marketing
• e.g. Sinclair C5 – an open topped vehicle was launched in mid-winter
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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No one is perfectEDISON:
“I have not failed. I've just found 10,000 ways that won't work.”
Thomas Edison became a holder of 1,093 US patents as a result of one thing - perseverance. He had no formal education yet by the age of 14 had developed an entrepreneurial spirit and started his own newspaper, which funded a kit for a chemical laboratory that he set up in the basement of his family home.
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Accidentals: Bill & Steve
Think of the computer entrepreneurs such as Bill Gates at Microsoft or Steve Jobs at Apple - both born in 1955, making them the right age to have time to play with the newfangled microprocessors in their teens.
Then Michael Dell was the right age to exploit the idea of making cheap clone copies of IBM PCs in the 1980s. Of course, the country and society you are born into may also have a profound influence on your career prospects.
In research Jim Bright conducted with Robert Pryor and others, they found in a sample of more than 750 young Australians that about 80 per cent reported a chance event had significantly influenced their careers. Luck, it turns out, is the norm, not the exception.
Many in our sample reported that being in the right or wrong place at the right or wrong time had impacted their careers. Others said unintended experiences had led them into different opportunities. So if luck plays such a significant role, how can we make ourselves more lucky?
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Accidentals: Viagra
...Viagra was used to treat nearly 30m men in its first ten years
The drug company Pfizer was looking for something that would relax these blood vessels to treat angina, however its trials in people were disappointing. Pfizer were about to abandon further trials when the trial volunteers started coming back and reporting an unusual side effect - lots of erections.
Pfizer senior scientist Chris Wayman was charged with investigating what was happening. He created a model 'man' in the lab. He took a set of test-tubes filled with an inert solution, and in each one placed a piece of penile tissue, taken from an impotent man.
Each piece of tissue was then connected up to a box that, at the flick of a switch, would send a pulse of electricity through the tissue.
Applying this current of electricity mimics what happens when a man is aroused.
The first time he did this nothing happened to the vessels. However, when he added Viagra to the tissue bath the penile blood vessels suddenly relaxed - as they would for a man to give him an erection.
He said: "What was amazing about this study was that we saw a restoration of the erectile response. Now we were on to something which could only be described as special".
2012Adapted from David Smith’s “Exploring Innovation” by Sofiane Achiche and Thomas J. Howard for course 42629: Innovation and Product Development Department of Mechanical Engineering, DTU
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Summary
• Innovation is trick to define but is generally seen as the exploitation of an new idea.
• Many ways to categorise innovation types, but the simplest and perhaps most useful are those that categorise on 2 axis: Technology newness vs Market newness
Exercise• In groups of 3, try to think of a new example of a product or
service to fit in each category of innovation.
• Place on the same matrix at least one of your business ideas you will be proposing to you group this week.
