Innovation and design

Consumerism:

Study of people's buying behavior

Analogy

An idea from one context is used to stimulate ideas for solving a problem in another context (sonar vs. bat navigation).

Compatibility

"compatibility is the degree to which an innovation is perceived as consistent with the existing values, past experiences, and needs of potential adopters." - Rogers Invention/product is compatible with a consumer's need Product has to become socially acceptable

Complexity

"the degree to which an innovation is perceived as relatively difficult to understand and use" - Rogers Negatively correlated with the rate of adoption. The difficulty of a product diminishes its ability to sell/be successful

Observability

"the degree to which the results of an innovation are visible to others" - Rogers Visual appearance of a product - becomes known when you see it (you know what an iphone looks like)

Trialability

"trialability is the degree to which an innovation may be experimented with on a limited basis"- Rogers Positively correlated with the rate of adoption. Idea where you can test/try out a product - going to a store to look at their different products Taste testing in Costco is trialability

Invention

(Creation of an entirely new product) 1. the act of inventing. 2. U.S. Patent Law . a new, useful process, machine, improvement, etc., that did not exist previously and that is recognized as the product of some unique intuition or genius, as distinguished from ordinary mechanical skill or craftsmanship. 3. anything invented or devised

Innovation

(Improvement on an existing product - Diffusion into marketplace) 1. something new or different introduced: numerous innovations in the high-school curriculum. 2. the act of innovating; introduction of new things or methods.

Drivers for invention

1. Personal motivation to express creativity for personal Interest 2. scientific or technical curiosity 3. constructive discontent (James Dyson, slide 12) 4. desire to make money 5. desire to help others (Mick Ebeling, slide 11)

Process innovation:

An improvement in the organization and/or method of manufacture that often leads to reduced costs or benefits to consumers. A process innovation is the implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software.

Entrepreneur

An influential individual who can take an invention to market, often by financing the development, production and diffusion of a product into the marketplace.

Maturity

Goal: Keep market share. Lengthen product life cycle. •Increased profit •Increasing sales but at a slower pace •Decreased advertising expense due to product awareness •Decreased price and market share due to increased competition •Increased use of sales promotions

Adaptation

A solution to a problem in one field is adapted for solving a problem in another field {hover craft inspired hover mower)

Growth

Goal: Get consumers to want your product or brand Increase sales •Increased sales •Growth in customer awareness of the product •Search for expansion into other market segments •Increased distribution •Increased price competition and promotional costs

Decline

Goal: Keep product and hope competition leaves. •Decreased sales •Product becomes obsolete or customer tastes change •Increased unit costs due to decreased production volume

Introduction

Goal: Build your market Increase demand •Product introduction to market •Low sales •Low customer awareness •High advertising expense •High product distribution cost

Development

Goal: Create a need. Design a product. •High cost/investment •High time and staff commitment •No sales •No customer awareness

Few inventions become successful innovations because....

Marketability - Low product demand or not readily saleable Financial support - There is little monetary backing from the organisation or an outsider. Marketing - Is the process of getting products from the producer or vendor to the consumer or buyer, which includes advertising, shipping, storing, and selling. Poor marketing strategies or wrong target markets. The invention is not needed/wanted Price - Affordable, cost effectiveness or value for money. Therefore it may be too expensive to purchase, or to manufacture and the consumer may not see it worth its cost compared to its use. Resistance to change - People and organisations can be resistant and reluctant to change, feeling comfort and security in the familiar thus resist new ideas/products. Aversion to risk - a concept in economics, finance and psychology related to the behavior of consumers and investors under uncertainty.

Functional obsolescence

Over time, products wear out and break down. If parts are no longer available, the product can no longer work in the way it originally did. Also, if a service vital to its functioning is no longer available, it can become obsolete.

Technology push

Scientific research leads to advances in technology that underpin new ideas (Sony Walkman).

Technology transfer

Technological advances that form the basis of new designs may be applied to the development of different types of products/systems, for example, laser technology (surgery, cds).

Lone inventor - advantages/disadvantages

The lone inventor is an individual working outside or inside an organization who is committed to the invention of a novel product and often becomes isolated because he or she is engrossed with ideas that imply change and are resisted by others. - lack business acumen Advantages: Full control over the development of their invention Driven: with a goal of the complete invention of a new and somewhat revolutionary product Have ideas that are completely new and different Disadvantages: Lack business acumen May not comprehend or give sufficient care to the marketing and sales of their product Their ideas, because of how different they are are often resisted by other employees and workers Are having a harder time to push forward their designs, especially in a market where large investments are required for success Are usually isolated, and have no backing towards their design. Trouble working in teams because of their emotional attraction to their invention

Technological obsolescence

When a new technology supersedes an existing technology, the existing technology quickly falls out of use and is no longer incorporated into new products. Consumers instead opt for the newer, more efficient technology in their products.