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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 future




How can engineers
INNOVATE?
MANAGEMENT OF INNOVATION, DM 981, UNIVERSITY OF STRATHCLYDE
                                                              Lasse WOICHE

                                                              Carles DEBART

                                                               Patrick O’CONNELL
Innovation booklet. Carles Debart
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 Jobs
The 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 matters
The 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
Innovate
The 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 of
The 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 necessary
How 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 arguing
How 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
                                          Generation
Challenges 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
                                              Development
Challenges 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
                                                   Application
Challenges 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 headphones
Successful 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 stand
Successful 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 points
Successful 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 Breastlight
Unsuccessful 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 failures
Unsuccessful 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

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Innovation booklet. Carles Debart

  • 1. 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 future How can engineers INNOVATE? MANAGEMENT OF INNOVATION, DM 981, UNIVERSITY OF STRATHCLYDE Lasse WOICHE Carles DEBART Patrick O’CONNELL
  • 3. 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.
  • 4. Steve Jobs The 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…‖
  • 5. 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
  • 6. Innovation really matters The 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
  • 7. Innovate The 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
  • 8. Different types of The 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
  • 9. Take risk and if necessary How 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‖
  • 10. Innovation is about arguing How 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.
  • 11. 1.Challenges on idea Generation Challenges 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
  • 12. 2.Challenges on successful Development Challenges 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
  • 13. 3.Challenges on successful Application Challenges 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.
  • 14. Successful innovation I Beats by Dr. Dre “When the now- Creative key points ubiquitous headphones Successful 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
  • 15. Successful innovation II Beats by Dr. Dre “The build quality is solid-these will stand Successful 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
  • 16. Successful innovation III Beats by Dr. Dre Innovation and commercial success Key points Successful 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
  • 17. Unsuccessful innovation I PWB Health Breastlight Unsuccessful 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
  • 18. Unsuccessful innovation II PWB Health Breastlight Innovation and commercial failures Unsuccessful 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
  • 19. 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.
  • 20. 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