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This Is Innovation

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An overview of innovation and what it means to businesses.

An overview of innovation and what it means to businesses.

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  • Ask for examples of good & bad customer focus
  • Kano provided a model to represent how customers respond to product attributes. This is different to what a lot of firms use, by specifying things as ‘demands and wishes’. It provides a more qualitative analysis of product characteristics, based on insights on how important (or not) these might be perceived to be by customers.The Kano model has several uses:It offers insights into what really matters to customersIt helps to identify & rank the important product featuresIt helps to increase the probability of the success
  • We have patents not to keep details of an invention a secret, but instead to Let everyone know about the invention whilst preserving profits for the inventorEncourage the development of science
  • Ownership of IP – Complex. Ensure it is clear BEFORE you start working with third parties.

Transcript

  • 1. INNOVATION
    Mike Dowson, RTC North
    December 2010
  • 2. INTRODUCTIONS
    Mike Dowson
    Project Director at RTC North
    Director of Design Network North
    Previously:
    New Holland
    Massey Ferguson
    Case Corp
    Draeger Safety
  • 3. CONTENTS
    Introductions
    What is Innovation?
    The Innovation Process
    Summary & Conclusions
  • 4. CONTENTS
    Introductions
    What is Innovation?
    Why innovate?
    Must be in the Strategy
    Signs of businesses not innovating
    The Innovation Process
    Summary & Conclusions
    Links and sources of support
  • 5. What is Innovation
    “The implementation of a new or significantly improved product (goods or service) or process, a new marketing method, or a new organisational method in business practises, workplace organisation or external relations”
    Guidelines for Collecting and interpreting Innovation Data (Oslo Manual) OECD 3rd Edition 2005
  • 6. Why innovate?
    For example:
    • Shares in design-led / innovative businesses have outperformed the FTSE 100 by more than 200% over the past decade.
    • 7. For every £100 a business spends on design, turnover increases by £225.
    • 8. Businesses that add value through design see a greater impact on business performance than the rest.
    Design in Britain 2005–06 and the Value Added Research 2007 - Design Council
  • 9. Innovation must be in the Strategy!
    Innovation isn’t a “bolt on” activity
    Must be driven from the Top down
    Needs a focus across the Company
    “Innovation distinguishes between a leader and a follower “
    Steve Jobs , CEO Apple
  • 10. Signs of lack of or need for Innovation
    Cars:
    Retail:
    Word processing:
    Internet:
  • 11. Signs of lack of, or need for, Innovation
    A NEED FOR INNOVATION
    No new products launched for some time
    Totally dependent on 1 or 2 products
    Can’t clearly express what differentiates them from other companies
    Lack of growth
    ESTABLISHED BUSINESSES WHO MIGHT BE LOSING THEIR WAY
    “Beaten up” by competition – not sure how to fight back
    Reduced profit margins
    If becoming more dependent on reacting to customer wishes and creating bespoke solutions
    Internal design resource is focussing on problem solving, “fire fighting”
    LACK OF FOCUS
    No evidence of designated and dedicated design / innovation resources
    If they have a unique, strong process or technology but are struggling to exploit
    LOOKING TO EXPLOIT OPPORTUNITIES
    If a sub-contractor and want to become a manufacturer of own products / extra growth
    Want to enter new markets but current products don’t meet requirements
  • 12. CONTENTS
    Introductions
    What is Innovation?
    The Innovation Process
    Summary & Conclusions
  • 13. The Innovation Process
    Associated topics:
    • Intellectual Property
    • 14. Branding
    The Process
    Where to innovate next?
    Customer focus
    Creativity & Concepts
    Development & launch
  • 15. 1. The Process
    You need a process, no matter how small you are
    Case Studies:
    Large business: Draeger Safety
    SME: Airowear
  • 16. PRP
    Project Realisation Phase
    PDP
    Project Definition
    Phase
    PPP
    Project Preparation Phase
    PIP
    Project Idea Phase
    Gate 2
    Gate 5
    Gate 4
    Gate 3
    Gate 1
    Large Business – Draeger Safety
    Classic “Stage – Gate” Process
    But with a lot of detail & complexity.....
  • 17. Large Business – Draeger Safety
  • 18. SMEs – also need a process
  • 19. Map current process
    feedback
    sales
    customer
    Distribution
    feedback
    Requirement
    specification
    Functional
    specification
    Marketing
    Specification/
    Data sheet
    software
    Design
    prototype
    Test
    In-house
    production
    service
    electronics
    Project reviews
    (every 2 weeks)
    Dvpt. +sales
    Ideas
    Market
    Experiments
    Approval
    testing
    Test
    externally
    hardware
    CE marking
    (EMC)
  • 20. Airowear’s “Process on a Page”
  • 21. The Innovation Process
    Associated topics:
    • Intellectual Property
    • 22. Branding
    The Process
    Where to innovate next?
    Customer focus
    Creativity & Concepts
    Development & launch
  • 23. Where to innovate next?
    It is equally (more?) important to select WHAT you will innovate as HOW you will do it
    Driven by the company strategy
    Customer focussed
    Must differentiate
    Must make clear, conscious decisions
    Process is called “Portfolio Management”
  • 24. How good is your portfolio management?
  • 25. Living without portfolio management …
    • No formal capture of ideas for future projects
    • 26. A reluctance to kill projects & too many new development projects
    • 27. Poor mix of projects – risky, safe, incremental, radical etc
    • 28. Weak decision points
    • 29. Projects selected based on emotion, politics, “pet-project”, the “bosses idea”
    • 30. No strategic criteria for project/new product selection
    • 31. Resulting in: inefficient use of resources and long term failure….
  • The Innovation Process
    Associated topics:
    • Intellectual Property
    • 32. Branding
    The Process
    Where to innovate next?
    Customer focus
    Creativity & Concepts
    Development & launch
  • 33. Customer focus
    Probably paid the most “lip service” of any business topic
    Henry Ford comment “If I’d asked them what they wanted, they’d have said a faster horse”
    Will now present:
    The KANO model
    A Case Study from Procter & Gamble
  • 34. The Kano model
    • Developed in the early 1990s
    • 35. Professor Noriaki Kano & colleagues of Tokyo Rika University
    • 36. Is an integral part of the NPD for many firms with highly complex, engineered products
    • 37. Classifies / rates product characteristics based on importance to customers
    • 38. Based on the principles regarding to customers ideas on quality
  • Kano Model: Features and Satisfaction
    Delight
    Excitement needs
    (Seldom expressed:new to the world)
    Immediate
    happiness
    Performance needs
    (Generally expressed.e.g. miles per gallon)
    Degree of featureimplementation
    Notunhappy
    Good
    Poor
    Basic needs (hygiene)
    (Not always expressed.e.g. safety, car will start,food non-poisoned)
    Disappointed
    Over time
    Over time
    Customersatisfaction
    Source: NoriakiKano
  • 39. Case Study – Procter & Gamble
    The basic innovation process…
    Identify the target consumer
    Establish the target consumers aspirations and needs
    Define the benefits that will deliver his/her needs
    Establish holistic product design features that will deliver the benefits
    Define success criteria and measures
    Develop the product !!
    Create the story
  • 40. Case Study – Procter & Gamble
    What people want…..
    Emotional Values
    & Aspirations
    Physical Standards of Excellence
    Found in “magic moments”, beliefs, aspirations, frustrations.
    Found in habits & practices, compensating behaviors; expressed as metaphors.
    An Experience that builds loyalty
  • 41. Case Study – Procter & Gamble
    An example of defining the innovation task in aspirational terms….Pampers…..
    STANDARDS OF EXCELLENCE
    ASPIRATIONS
    • Swaddling/ Wrapping
    • 42. Caring Mom
    • 43. Happy and Secure Baby
    DESIRED CONSUMER EXPERIENCE
    • “Wrap My Baby in Comfort and Security"
  • Case Study – Procter & Gamble
    And translating this into technical requirements…..
    Feels like a blanket for physical & emotional comfort.
    Looks like a garment for comfort & convenience in dressing.
    Works like a Pampers for performance.
  • 44. Case Study – Procter & Gamble
    Technology Example:
    Tuck umbilical flap
    Rounded edges
    All over fastening
    Textured backsheet
    Finished leg cuff
  • 45. The Innovation Process
    Associated topics:
    • Intellectual Property
    • 46. Branding
    The Process
    Where to innovate next?
    Customer focus
    Creativity & Concepts
    Development & launch
  • 47. I have not failed. I’ve just found 10,000 ways that won’t work…
  • 48. Creativity & Concept Generation
    Create many concepts
    Get early feedback and buy-in
    Costs are low in the early stages
    Costs and consequence of failure increase
  • 49.
  • 50.
  • 51.
  • 52.
  • 53.
  • 54. The Innovation Process
    Associated topics:
    • Intellectual Property
    • 55. Branding
    The Process
    Where to innovate next?
    Customer focus
    Creativity & Concepts
    Development & launch
  • 56.
  • 57. Detailed development and launch
    • CASE STUDY
    • 58. (Flymo)
    • 59. Working on a new range of garden strimmers
  • Good News
    • The retailers and sales people loved the tree guard.
    • 60. We didn’t expect this.
    • 61. A new guard was wanted for a additional model in the Minitrim range.
    • 62. The feature lifted the retail prices.
    • 63. The mid range trimmers being developed at the same time by another engineer would also carry this feature, 2 guards were required here.
    • 64. We delayed all tooling and CAD for other trimmer guards in both projects until we had developed the solution to pass all new tests for the guard.
    • 65. Several tooling modifications and process changes were carried out to make it happen, finally we had guards that survived 100 Hrs of grass cutting, 200N pull tests, and 10,000 hinge movements.
    • 66. All new designs and new tools were completed.
  • Problem
    • During product photography product management and marketing became nervous about the white stress mark on the live hinge. “Consumers may believe it to be weak”
    • 67. We had fully developed the hinge to be robust enough for outdoor product use. Succeeded to get the feature without additional tooling, or any additional assembly operations.
    • 68. We were, I believe, so keen to solve the technical problem of could it be done, we didn’t fully consider if it should be done.
    • 69. The solution we had may be rejected by consumer preconceptions.
    • 70. 3 months away from production and we needed a new solution, the feature was wanted, but without the stress mark.
    • 71. In a seasonal business if you can’t deliver the new product on time, the product launch is delayed a full year.
  • Problem Solving
    • Mind-map, Brainstorm & Rapid Prototyping.
    • 72. The final solution agreed suitable for the market place was a separate tree guard attached to trimmer guard via a snap-on hinge, this performed well, was easier to manufacture and would allow customer replacement.
    • 73. 6 new designs and tools were required, with the knowledge gained from the other guards, the design to manufacture timescale was extremely quick. Tools were completed in time for production.
    • 74. Not the best way to get there, but this was the better solution.
    • 75. Lowest risk and easily replaceable if there were issues.
    • 76. Simplest to manufacture – the live hinge required tighter process controls and component handling.
    • 77. The guide now has a robust patent which covers live hinge, snap-on hinge solutions, and the additional methods we discovered during the initial development.
  • Successfully launched the new Minitrim Range
    • Added value increasing the RRP range to £18 - £40
    • 78. Further differentiated the range with 5 product types.
    • 79. Reduced logistical costs.
    Additional features
    • Cable Storage on all models
    • 80. Lever Switch on all models
    • 81. Tree Guards on XT models
    • 82. Soft Grip on Contour XT
    Reduced returns rate for the range.
    • From 3.3% to 1.6% of products returned.
    Manual ST
    Auto+ XT
    Contour XT
    Auto XT
    Auto ST
  • 83. The Innovation Process
    Associated topics:
    • Intellectual Property
    • 84. Branding
    The Process
    Where to innovate next?
    Customer focus
    Creativity & Concepts
    Development & launch
  • 85. What is the aim of Intellectual Property?
    To protect an idea, concept, information, innovation
    Intellectual Property Rights (IPRs) grant a monopoly right over an idea, concept, innovation so that the owner of IPR can stop others from using the IP without their permission
  • 86. INTELLECTUAL PROPERTY
    IPRs
    Other
    Appliedfor
    Automatic
    Knowhow
    Tradesecrets
    Patents
    Copyright
    Trade marks
    Design right
    Registered designs
  • 87. TRADE MARKS
    Can protect:
    words
    logos
    slogans
    sounds
    colours
    shapes
    smells
    Purple in relation to milk chocolate
    Microsoft
    Nike
  • 88. Cannot register a mark that is:
    • Identical/similar to one already used in respect of similar/identical goods
    • 89. Descriptive
    • 90. Not distinctive (not recognisable) as a trade mark
  • REGISTERED DESIGNS
    Protect the outward appearance of a product
    Could include a product itself – e.g. an iPod®
    Could be packaging, get-up, graphic symbols, typographic type faces
    Must be new and have individual character
    12 month grace period from first disclosure to filing
    Must be new and relate to non-functional features
  • 91. UNREGISTERED DESIGN RIGHT
    Unregistered design protection in UK and EU
    Automatic protection on creation of design
    Protects the outward appearance of design
    Design must be new
  • 92. COPYRIGHT
    Unregistered protection
    Automatic protection on creation of work
    Protects the physical expression of idea or content – does not protect the idea
    Protection includes:
    original literary (including software), dramatic, musical and artistic works
    original sound recordings, films, broadcasts and cable programmes
  • 93. PATENTS
  • 94. WHAT IS A PATENT?
    • A time limited monopoly granted by the State in return for disclosure of the invention
    • 95. 20 years from the filing date
    • 96. The monopoly is defined by the claims at the end of the specification
    • 97. A “negative right” that stops other from working your invention
    • 98. It is not a right to work your invention
    • 99. You may be blocked by another patent that you are infringing
  • WHAT IS A PATENT?
    The invention may be
    a product
    parts or features of products
    method of manufacturing product
    use of product
    apparatus for manufacturing a product
  • 100. Is my invention patentable?
    Ask yourself
    How is it different from what is already available?
    Does that “difference” have a technical advantage?
    Online patent searching
    Espacenet database
    Keyword in title or abstract
    Applicant’s name
    Patent Advice Centre
    Newcastle City Library
    Ask a patent attorney
  • 101. Where does IP fit into the Process?
    STRATEGY
    • What are the competitors doing?
    • 102. Has it already been done?
    • 103. Are there restrictions?
    The Process
    Where to innovate next?
    Customer focus
    Creativity & Concepts
    Development & launch
    CUSTOMER
    • Protect your ideas – NDA!
    CONCEPTS
    • Has it already been done?
    • 104. Are there restrictions?
    • 105. Can I protect my idea?
    • 106. Registered design?
    DEVELOPMENT
    • Are there restrictions?
    • 107. Can I protect my idea?
    • 108. Registered Design?
    • 109. Trademarks?
  • Why is intellectual property important?
    Intellectual property is an “intangible asset” that adds substantial value to a business and increases revenues
    Intellectual property protects and rewards creativity/inventiveness of a business
    Intellectual property provides business with competitive advantage in marketplace
    Intellectual property can be exploited by licence agreements to earn royalties
    Intellectual property benefits justify the investment in business
  • 110. The value of intellectual property
    Intangible Assets are:
    68% of enterprise value of WAL-MART
    89% of enterprise value of Coca-Cola
    80% of enterprise value of IBM
    (Brand-Finance, Sept 2008)
    Innovative companies see 25% per annum growth in income
  • 111. Apple – an example of how intellectual property is used
    Names, brands and logos – trade marks to indicate trade origin
    Apple®
    iPod®
    Operating software - copyright
    Overall appearance – registered design to protect product appearance
    ‘Clickwheel’ – patent to protect invention
  • 112. WHAT DOES THIS MEAN FOR APPLE®?
    Nobody can sell products under the same/similar name:
    SONY ipod – not allowed
    Iplod – not allowed
    Nobody can sell products that look the same
    Nobody can use the “clickwheel” technology
    Nobody can copy the same operating software
  • 113. Useful websites
    www.ipo.gov.uk – UK Patent Office
    www.european-patent-office.org – European Patent Office
    www.newcastle.gov.uk/core.nsf/a/librariespatents?opendocument#ip- Patent Advice Centre (free)
    www.espacenet.com – Patent search engine
    www.handsoffmydesign.com – European site giving a good overview of design related IP
    www.own-it.org – Site for creative businesses
  • 114. The Innovation Process
    Associated topics:
    • Intellectual Property
    • 115. Branding
    The Process
    Where to innovate next?
    Customer focus
    Creativity & Concepts
    Development & launch
  • 116. Transcending
    information
    Products are becoming COMMODITISED
    Brand is often the only basis of CHOICE
  • 117. Cutting through
    the clutter
  • 118. Rational
    Emotional
    Factors
    Driving choice
  • 119. Wired for
    emotion
    x10
    x1
    rational
    emotional
  • 120. Factors driving
    choice
    “ At BMW we realise
    that what we make
    people feel is as
    important as what
    we make”
    Current TV campaign
  • 121. The Brand Model
    PRODUCT
    BRAND
    CONSUMER
  • 122. The Brand Model
    BRAND
    PRODUCT
    PRODUCT
    PRODUCT
    CONSUMER
    CONSUMER
    CONSUMER
  • 123. Brand Mythology
  • 124. In the beginning…
    ?
    INNOVATIVE
    SNACKS
    CRISPS
  • 125. Global connoisseur
  • 126. From appetiser to main course…
  • 127. … and the perfect finishing touch
  • 128. Going mainstream commodity…
    !
  • 129. The Innovation Process
    Associated topics:
    • Intellectual Property
    • 130. Branding
    The Process
    Where to innovate next?
    Customer focus
    Creativity & Concepts
    Development & launch
  • 131. CONTENTS
    Introductions
    What is Innovation?
    The Innovation Process
    Summary & Conclusions
  • 132. Summary & Conclusions
    Innovation is critical to business growth and success
    There is a process underlying many elements
    Must be driven top-down
    The customer must be understood
    Many tools and techniques are available
    Many services available to support innovation.....
  • 133. Thank you for your attention…..