CONTENT The importance of innovation and creativity How engineers can innovate? Challenges involved in innovation Successful innovation: Beats by Dr. DRE Unsuccessful innovation: Breastlight Thoughts for the futureHow can engineersINNOVATE?MANAGEMENT OF INNOVATION, DM 981, UNIVERSITY OF STRATHCLYDE Lasse WOICHE Carles DEBART Patrick O’CONNELL
The importance of innovation and creativity USA office of technology assessment Innovation encompasses both the development and appli- cation of a new product, process or service. It assumes novelty in the device, the application or both.… Innova- tion include many activities like scientific, technical and INNOVATION market research. ≠ Definition of INVENTION ABS Innovation survey questionnaire Innovation An innovation is a new or substantially improved good Business dictionary INNOVATION or service which has been commercialized, or any new or The process of translating an idea or inven- ≠ substantially improved process tion into a good or service that creates value CREATIVITY used for the commercial or for which customers will pay. To be called production of goods and an innovation, an idea must be replicable at services. an economical cost and must satisfy a need. Business council of Australia CREATIVITY In business, innovation is something that is new or significantly ≠ improved, done by an enterprise to create value either directly for INVENTION the enterprise or indirectly for its customers.
Steve JobsThe importance of innovation and creativity Milan Kundera ―Innovationdistinguishes between a leader and a ―Business has only tow functions: follower‖ marketing and innovation‖ Famous quotes about ” Innovation Michael Porter ―Innovation is the central issue in economic prosperity‖ Steve Jobs ―Innovation has nothing Bill Gates to do with how many $ ―I believe in innovation and that you have. When Apple the way you get innovation is you came up with the Mac, fund research and you learn the IBM was spending at basic facts‖ least 100 times more in R&D…‖
The importance of innovation and creativity Why we distinguish between creativity, invention and innovation $ “usefulness is in the eye Innovation funnel $ of the user” $ $ “newness is $ also judged by the user” “if the inven- 1 2 3 tion is useful to someone, then it is Creativity Invention Innovation innovation” Essential part of Implementation of Turn the invention the innovation the idea into a commercial success
Innovation really mattersThe importance of innovation and creativity learning from Detroit Many companies went bankrupt. But other Unemployme Detroit companies nt led into competitors many social were stuck in their entered the game old processes problems 1 2 3 4 5 6 7 8 10 In 1950, Until the 70s Offering The market User requirements better Considered Detroit was was the world changed were not met by quality at a towards by Forbes a city with center for Detroit companies, everything lower price smaller cars the most automotive innovation funnel was you would innovation with better not working miserable need technology city in the US
InnovateThe importance of innovation and creativity or die “4rth March 2013: Detroit declares fiscal emergency as it faces being largest city in US placed Under state control” Daily Mail
Different types ofThe importance of innovation and creativity Innovation Incremental innovation Involves small steps, something that is a minor improvement to an existing solution Radical innovation Revolutions ―Big steps, often giving ―When innova- solutions very different tions cause a from the existing ones‖ huge impact on society, changing our lives forever
Take risk and if necessaryHow can engineers innovate?How can engineers innovate? Innovations driven by make mistakes mistakes The slinky Paul J. H. Schoemaker, Penicillin director at Mack Center for Chocolate-chip Technological Innovation Cookies ―Mistakes allow for variation far be- The pacemaker yond what was expected. You Microwave oven make a wrong turn but find a better road to your destination. ...This is Saccharin why it is so crucial for companies Sochiro to foster a culture that celebrates Fireworks ―Success is Honda productive mistakes, the kind that Ink-Jet printers 99% failure‖ can stimulate thoughts and gener- ate new paths. If leaders do not al- Post-it notes low failure, the also kill innovation X-rays ...If you want big returns, you need to be willing to accept losses as well‖
Innovation is about arguingHow can engineers innovate?How can engineers innovate? Tricks that engineers can use to get the best out of creative teamwork Not brainstorming No hierarchy Breaking down hierarchy is critical for deliberate discourse. It is essential to create a spaces where everyone can truly contribute. … You should know that you are not doing your job if you don’t disagree with others at least once a day. But… “with a common goal” As much as we may argue and disagree on a possible solution, all that happens in teamwork counts towards the shared goal. Engineers have to learn how to argue without hurting the one another Diverse perspectives It has been reviewed that cultural diversity helps in improving creativity and innovation, but to get the most out of it, culturally sensitive management is also required.
1.Challenges on idea GenerationChallenges involved in innovation “In the idea stag- es, researchers DIVERSE INFORMATION have highlighted RISK TAKING ENCOURAGED the importance of SOURCES correct managerial STAFF WITH DIVERSE attitudes and ADEQUATE RESOURCES INTERESTS T working condi- tions in facilitating SUPPORTIVE GOOD STRATEGIC a creative environ- MANAGEMENTT DESICIONS ment. Critical to this are freedom FAILURES WILLINGLY FREE INFORMATION of the employees TOLERATEDT Birth of EXCHANGE to think and act initial idea according to their FREEDOM TU PURSUE ACCESS TO EXTERNAL own ideas rather OWN IDEAST STIMULI than following strict management SUGGESTION NON CONSTRAINING plans...” PROGRAMMES ENVIRONMENT SUCCESS RECOGNISED TECHNICAL COMPETENT TEAM PATENTS PROGRAMMES CHALLENGING ENVIRONMENT
2.Challenges on successful DevelopmentChallenges involved in innovation The development phase of this process is where the new con- cept is refined to en- sure that it meets all the needs of the end user. This is where the details and specifica- tions are derived for the propose applica- tion. The most often quoted issues here are the provision of ade- DEVELOPMENT quate resources, strong support and di- rection from the com- pany, the use of appro- priate external exper- tise, good co- operation within the team and close contact with the end user
3.Challenges on successful ApplicationChallenges involved in innovation The third phase is “successful application”. This is acid test, “will the customer adopt the new concept?” This is the last stage of the process, but it is an area that must be considered early in the development programme. Researchers have high- lighted the need to understand exactly what the end user wants at an early stage in the de- velopment process, and there are many cases quoted where a failure to understand the customer’s perspective has lead to the failure of a seemingly good idea.
Successful innovation I Beats by Dr. Dre “When the now- Creative key points ubiquitous headphonesSuccessful innovation debuted in 2008, Beats defied the foundering Not aimed to be authority on sound in the economy. Flaunting a hefty price tag north of consumer audio space $300 , Beats lured cus- tomers away from Define the product idea as subversive and flimsy $20 earbuds with their signature turbo- oppositional charged bass and sleek design. Just over three years in, Beats Elec- Diversify beyond headphones tronics has snapped up 51% of an estimated $1 billion headphone mar- Try to sound very different from what there was ket, according to retail In the market analysts at the NPD Group. “So far we’ve had triple-digit growth Chase everywhere they can bring emotion back in every market in the world, Into sound Luke Wood Pursue to be a new trend via famous people CEO of Beats audio
Successful innovation II Beats by Dr. Dre “The build quality is solid-these will standSuccessful innovation Invention Key points up to a few knocks and tosses on the couch, or on the floor, and they They put back the quality lost in modern-day life compression feel extremely durable. The large padded head- band attaches to adjust- able brushed aluminum Reproduce the sound exactly how it was originally heard by sides, ending with full- size earcups that rotate the artists in the studio upward for storage. Each earcup is rounded Chassis made of steel and aluminum, which provide solidity and padded in a leather- like material that is ex- ceptionally cushy, and each includes an input/ Chassis resonation lead into super-enhanced basses output port. The ear cushions can be re- moved for washing” There is no plastic in any part of the headphone CNET review Noise cancelling effect without extra battery systems
Successful innovation III Beats by Dr. Dre Innovation and commercial success Key pointsSuccessful innovation Acquisition of online music service MOG for $16 million Contract with Fiat to equip the US version of Fiat 500 Contract with Chrysler to equip its 300s luxury model HTC bought 50.1% of the company for $309 million Developing technology for smartphones with HTC Building their own technology in HP computers Highly adopted product by the music ―jet-set‖ Revenue of 350$ million, 150 employees
Unsuccessful innovation I PWB Health BreastlightUnsuccessful innovation Creative key points Self detection breast cancer device Breast illumination to detect dark zones Easy to use by user Not medical expertise needed Invention key points Ergonomic form factor to facilitate light seal High powerful LED optical design Power management Thermal management Usability Eye safety class 1 pass
Unsuccessful innovation II PWB Health Breastlight Innovation and commercial failuresUnsuccessful innovation Identify an understand market need: The product was too revolutionary for the time Find capable technology: The project was delayed several times due to unexpected technology issues such as LED industry configuration, medical regulations, etc Develop economic business model: The sales weren’t enough high to support the project Successfully engage with relevant markets: It encountered the opposition of the breast cancer organizations in the UK, mainly because they those organizations existence was threatened by the product Consequences Only 1000 web sales in Q4 2008 Full launch in mass retail in 2009 did not meet expectations Sold through Boots in the UK from 2009 onwards Crises mid 2010 hit cash, the company holding the product to be sold to an Emirates based health group New owner trying to target the product into emerging markets
Thoughts for the future Has innovation stopped driving growth?Thoughts for the future ―...Peter Thiel, a founder of Paypal, says that innova- There will be more innovation—but it will not change the tion in America is somewhere between dire straits and way the world works in the way electricity, internal- dead. Engineers in all sorts of areas share similar feel- combustion engines, plumbing, petrochemicals and the ings of disappointment. Furthermore, a small but grow- telephone have. Mr Cowen is more willing to imagine big ing group of economists reckon that economic impact of technological gains ahead, but he thinks there are no innovations of today may pale in comparison with those more low-hanging fruit. Turning terabytes of genomic of the past…‖ knowledge into medical benefit is a lot harder than dis- covering and mass producing antibiotics‖ ―...Amid unconvincing appeals to the number of patents filed and databases of ―innovations‖ put together quite subjectively, Mr Cowen (George Mason University) cites interesting work by Charles Jones, an economist at Stanford University. In a 2002 paper Mr Jones studied the contribution of different factors to growth in American per-capita incomes in the period 1950-93. His work indi- cated that some 80% of income growth was due to rising educational attainment and greater ―research intensi- ty‖ (the share of the workforce labouring in idea- ―….According to Robert Gordon, an economist at generating industries). Because neither factor can con- Northwestern University, there were only a few truly fun- tinue growing ceaselessly, in the absence of some new damental innovations—the ability to use power on a factor coming into play growth is likely to slow‖ large scale, to keep houses comfortable regardless of outside temperature, to get from any A to any B, to talk By The Economist to anyone you need to and that they have mostly been made.
Reference list Academic references Anon, (2009). DIFFERENT MODES OF OPEN INNOVATION : A THEORETICAL FRAMEWORK AND. , 13(4), pp.615–636. COOPER, R. G., & EDGETT, S. J. (2007). Generating breakthrough new product ideas: feeding the innovation funnel. [Ancaster, Ont.], Product Developement Institute. Cumming, B.S. (1998). Innovation overview and future challenges. , 1(1), pp.21–29.Reference list Gassmann, O. (2001). Multicultural Teams: Increasing Creativity and Innovation by Diversity. Creativity and Innovation Management, 10(2), pp.88–95. Kaufmann, A. & Tödtling, F. (2002). How effective is innovation support for SMEs? An analysis of the region of Upper Austria. Technovation, 22(3), pp.147–159. Varis, M. & Littunen, H., (2010). Types of innovation, sources of information and performance in entrepreneurial SMEs. European Journal of Innovation Management, 13(2), pp.128–154. Other references http://www.brainyquote.com http://www.dailymail.co.uk/news/article-2286878/Detroit-declares-fiscal-emergency-Michigan-prepares-control-city.html http://snapcreativity.com/ http://www.inc.com/paul-schoemaker/brilliant-failures/why-failure-is-the-foundation-of-innovation.html http://www.fastcompany.com/3001234/how-dr-dres-burgeoning-headphones-company-stays-true-its-bass-thumping-roots http://www.economist.com/news/briefing/21569381-idea-innovation-and-new-technology-have-stopped-driving-growth-getting-increasing Grant King, Wideblue: Presentation of Innovation Commercialisation, DMEM Industrial project 2012, University of Strathclyde