5.2 Innovation

Essential Idea

There are many different types of innovation.

Nature and Aims of Design

Nature of Design

Designers will be successful in the marketplace when they solve long-standing problems, improve on existing solutions or find a “product gap”. The constant evaluation and redevelopment of products is key, with unbiased analysis of consumers and commercial opportunities. (1.1)

Aims

Aim 4: In order for an invention to become an innovation, the idea of the product needs to be effectively communicated. The communication can take many forms and be between many stakeholders.

Guidance

Guidance:

Concepts and principles

An innovation is the practical application of an invention that improves 

Bill Walker, writing in Wired Magazine sums up the distinction between invention and innovation as follows:

Walker's point is that innovation is the process of taking inventions and discoveries and bringing them to market. Yet, it is important to remember that not every invention can become an innovation. For innovation to happen, designers and companies may use several strategies to develop a product 



Definitions

Invention: the process of discovering a principle which allows a technical advance in a particular field that results in a novel/new product.

Innovation: making an invention useful and successfully entering it into the marketplace. 

Categories of Innovation

Sustaining Innovation

Sustain innovation is the continuous development of a product throughout its lifecycle. The clearest example of this process exists in the cellphone market. The original iPhone, now over a decade old, is in a continuous state of innovation. Most breakthrough products will not last very long without a continuous process of sustaining innovation to give new life into new iterations and versions.

Companies may sustain innovation in several ways: 

Disruptive Innovation

Disruptive Innovation is a product that challenges existing companies to either ignore or embrace the change. At their most powerful, disruptive innovations force existing companies to complete change their products or risk being obsolete. Some examples include:


Digital music players changing the way we listen to and purchase music

Ride sharing services changing the way people move

VOD changing the way we watch video

3D printing changing the way we make things

Process Innovation

Process innovation is an improvement in how a product is manufactured and distributed, leading to reduced costs or increased benefits for consumers. As companies have the most control over this type of innovation, it is one of the most common types. 

There are many examples of process innovation. Henry Ford developed the modern assembly line which enabled Ford Motor Company to offer affordable cars to the masses. Tesla is another automobile company that devotes lots of resources to innovating in the assembly line. Flat pack furniture is the key feature of IKEA, allowing for modern, stylish and affordable furniture. The retail experience of shopping at IKEA is also a type of process innovation. Learn more about IKEA here.

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Resources

 

Article about Tesla's assembly line for the Model S. Many examples of the different innovative approaches that are used to produce the cars.

"The Tesla factory in Fremont, California, is a monument to science and progress. Under the roof of this state-of-the-art plant, 160 gleaming silver and red coloured robots, each standing eight-feet high, push the boundaries of technology. In just five days, these mechanical giants and the 3,000 men and women who work alongside them, can fashion a coil of aluminium raw material into a fully functioning Tesla Model S."


Innovation Strategies for Designers

Architectural and Modular Innovation

Designers may approach innovation from two different directions: Architectural or Modulal. Key to understanding these two concepts is the type and degree of innovation. Let's look at two examples: Architectural innovation focuses on how the parts of a design are arranged and interact with each other. Modular innovation focuses on changing a single part of the design, while other parts remain unchanged.


Bicycles: Introduction of the chain

Early bicycles had no chain. The pedals were directly attached to axle of the wheel--there was no chain connecting the pedal to the back wheel as in today's bicycles. Thus, the relationship of between the pedals and the wheels has changed -- this is an example of architectural innovation. The parts (wheel and pedals) are the same, but how they interact is different (connected by a chain).

Left: Penny Farthing bicycle

Right: Modern mountain bike

Camera: Analog to Digital

The essential components of a camera have not changed. Cameras require a lens to focus light and a surface to record the light. Analog cameras use film which chemically reacts when exposed to light. Digital cameras use a digital light sensor that detects light and converts it into a digital signal. The architecture of the camera is essentially the same, only one component has been changed (the sensor). You can see this in how modern high-end digital cameras (DSLRs) physically resemble the shape and form of analog SLR cameras. 

Film camera

Digital camera

Innovation Strategies for Markets

Diffusion

Diffusion is the rate at which a new product is accepted by a market. It describes how the product moves from being used by a small group of users to becoming widely used. Once the product has been adopted by the market place, one of two things can happen: The product continues to dominate through sustained, incremental improvements; or its dominance is replaced by a new radical product.

Learn more about examples of Diffusion and Innovation in Topic 5.6: Roger's Characteristics of Innovation

ATM cards are good example of technology as they have become the de facto method for for accessing and using ATM machines and making purchases. Interestingly, these are now being challenged by digital payment services such as Apply Pay, Square, Google Pay and other systems, which use online, mobile, and wireless technologies to make payments. 

ATM card being used for payment

Wireless payment being made on the Square platform.

Apple Pay being used to complete a purchase on a VISA credit card account

Suppression

Suppression is the active slowing or prevention of a new product entering the market. This is usually done by incumbent companies to protect their interests. Disagreements of patents on the new product may slow or prevent its entry and adoption into the marketplace.

Competing companies may use their large resources and power to make it challenging for a new company to introduce an innovative product. Competitors could lower their prices or use other marketing strategies that would make it difficult for the new company to gain market share. Government legislation could also be used by governments to protect national industries or companies.

 

Challenges to Inventions Becoming Innovations

Innovative products face many challenges to successfully entering a marketplace. Understanding these challenges can inform the direction of the design and design and marketing strategies that may need to be taken by the company.

Marketability

There may be low market demand for an innovation, or the target market has not been identified and exploited.

Financial Backing

A company may lack the financial resources to bring an innovation to market. In addition, within the company, financial resources may not be provided to adequately develop and market the innovation

Marketing

Marketing strategies, including the shipping, advertising, storage and distribution, and sales may not be effective. Consumers may not understand the unique selling points of the product (poor advertising and promotion), or be able to purchase the product easily (poor distribution, shipping)

Need

There may not be a perceived need for the product, and as such no market for it.

Price

The retail price may not match consumers perceived value of the product

Resistance to Change

Consumers may be reluctant to adopt a new and innovative product, particularly if the innovation is radical. 

Risk

Consumers may perceive the time or cost they have to invest in the new product as not worth it. The perceived value and the company's ability to stand behind that value needs to be established in order for the level of risk to be reduced.