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
Invention and innovation
Categories of innovation: sustaining innovation, disruptive innovation, process innovation
Innovation strategies for design: architectural innovation, modular innovation, configurational innovation
Innovation strategies for markets: diffusion and suppression
Guidance:
Reasons why few inventions become innovations
Examples of products within the categories of innovation
Examples where innovation strategies have been used for products
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:
Was the iPhone a great invention? We can dissect the iPhone into individual inventions and evolutionary consolidations of other gadget functions and features. There are really no ground-breaking inventions from a technical perspective, in the first (or second, or third) generation iPhones. What about the iPad? In reality, one might argue that it is merely a giant iPhone with a few updated features. Touch screens, mobile communications for voice and data, “smart-phone” applications and user interfaces, the “home” button, and tablet computing devices all existed (as ideas and as products) many years before the iPhone. As proof, all you have to do is watch some Star Trek re-runs on TV or watch a Stanley Kubrick movie.
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:
Adding new functions or abilities and/or improving existing functionality: Consider how the quality of cameras and batteries in phones have developed in each iteration. This informative article compares the features of the original iPhone with the iPhone X.
Cost reduction: As production increases companies can take advantage of economies of scale and pass on the savings to consumers. Also, innovations in materials and production processes may result in cost savings.
Product expansion: As the product begins to grow in the market, companies may offer different versions, sizes, or colors to meet a broader range of user's needs and tastes. Apple has experimented with this approach by offering "s" models of some versions of its phones. These models come in different colors and different feature sets.
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
The iPod revolutionized the way people purchased and listened to music. Existing portable music systems (CDs and cassette tapes) we obsolete within a decade. With the advent of iMusic and iTunes, people purchased digital versions of music and listen to it in a different - some would argue that iTunes killed the album, as most people list to just songs.
Web-based video / Video on Demand
Netflix, Hulu, and other Video On Demand (VOD) services change the way consumers watch video. We can now watch what we want, when we want. We can watch entire seasons in one sitting, if we want to. Traditional cable providers have had to change their pricing models, the types of shows they offer, and to even begin offering VOD options.
Ride-sharing
Uber, Lyft, and other services have put the power of ride sharing in both the riders and driver's hands. This radical change has challenged existing traditional taxi services, not to mention laws and regulations that have governed them. Read more about ride sharing here.
3D Printing
As 3D printing continues to play an essential role in the 4th Industrial Revolution, they way things are made is changing. See Topic 3.5: Rapid Prototyping for more
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.