This Is Innovation

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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.
  • This Is Innovation

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

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