This Is Innovation

1. INNOVATION Mike Dowson, RTC North December 2010

2. INTRODUCTIONS Mike Dowson Project Director at RTC North Director of Design Network North Previously: New Holland Massey Ferguson Case Corp Draeger Safety

3. CONTENTS Introductions What is Innovation? The Innovation Process Summary & Conclusions

4. CONTENTS Introductions What is Innovation? Why innovate? Must be in the Strategy Signs of businesses not innovating The Innovation Process Summary & Conclusions Links and sources of support

5. What is Innovation “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” Guidelines for Collecting and interpreting Innovation Data (Oslo Manual) OECD 3rd Edition 2005

7. For every £100 a business spends on design, turnover increases by £225.

8. Businesses that add value through design see a greater impact on business performance than the rest.Design in Britain 2005–06 and the Value Added Research 2007 - Design Council

9. Innovation must be in the Strategy! Innovation isn’t a “bolt on” activity Must be driven from the Top down Needs a focus across the Company “Innovation distinguishes between a leader and a follower “ Steve Jobs , CEO Apple

10. Signs of lack of or need for Innovation Cars: Retail: Word processing: Internet:

11. Signs of lack of, or need for, Innovation A NEED FOR INNOVATION No new products launched for some time Totally dependent on 1 or 2 products Can’t clearly express what differentiates them from other companies Lack of growth ESTABLISHED BUSINESSES WHO MIGHT BE LOSING THEIR WAY “Beaten up” by competition – not sure how to fight back Reduced profit margins If becoming more dependent on reacting to customer wishes and creating bespoke solutions Internal design resource is focussing on problem solving, “fire fighting” LACK OF FOCUS No evidence of designated and dedicated design / innovation resources If they have a unique, strong process or technology but are struggling to exploit LOOKING TO EXPLOIT OPPORTUNITIES If a sub-contractor and want to become a manufacturer of own products / extra growth Want to enter new markets but current products don’t meet requirements

14. BrandingThe Process Where to innovate next? Customer focus Creativity & Concepts Development & launch

15. 1. The Process You need a process, no matter how small you are Case Studies: Large business: Draeger Safety SME: Airowear

16. PRP Project Realisation Phase PDP Project Definition Phase PPP Project Preparation Phase PIP Project Idea Phase Gate 2 Gate 5 Gate 4 Gate 3 Gate 1 Large Business – Draeger Safety Classic “Stage – Gate” Process But with a lot of detail & complexity.....

17. Large Business – Draeger Safety

18. SMEs – also need a process

19. Map current process feedback sales customer Distribution feedback Requirement specification Functional specification Marketing Specification/ Data sheet software Design prototype Test In-house production service electronics Project reviews (every 2 weeks) Dvpt. +sales Ideas Market Experiments Approval testing Test externally hardware CE marking (EMC)

20. Airowear’s “Process on a Page”

23. Where to innovate next? It is equally (more?) important to select WHAT you will innovate as HOW you will do it Driven by the company strategy Customer focussed Must differentiate Must make clear, conscious decisions Process is called “Portfolio Management”

24. How good is your portfolio management?

26. A reluctance to kill projects & too many new development projects

27. Poor mix of projects – risky, safe, incremental, radical etc

28. Weak decision points

29. Projects selected based on emotion, politics, “pet-project”, the “bosses idea”

30. No strategic criteria for project/new product selection

33. Customer focus Probably paid the most “lip service” of any business topic Henry Ford comment “If I’d asked them what they wanted, they’d have said a faster horse” Will now present: The KANO model A Case Study from Procter & Gamble

35. Professor Noriaki Kano & colleagues of Tokyo Rika University

36. Is an integral part of the NPD for many firms with highly complex, engineered products

37. Classifies / rates product characteristics based on importance to customers

39. Case Study – Procter & Gamble The basic innovation process… Identify the target consumer Establish the target consumers aspirations and needs Define the benefits that will deliver his/her needs Establish holistic product design features that will deliver the benefits Define success criteria and measures Develop the product !! Create the story

40. Case Study – Procter & Gamble What people want….. Emotional Values & Aspirations Physical Standards of Excellence Found in “magic moments”, beliefs, aspirations, frustrations. Found in habits & practices, compensating behaviors; expressed as metaphors. An Experience that builds loyalty

42. Caring Mom

44. Case Study – Procter & Gamble Technology Example: Tuck umbilical flap Rounded edges All over fastening Textured backsheet Finished leg cuff

47. I have not failed. I’ve just found 10,000 ways that won’t work…

48. Creativity & Concept Generation Create many concepts Get early feedback and buy-in Costs are low in the early stages Costs and consequence of failure increase

58. (Flymo)

60. We didn’t expect this.

61. A new guard was wanted for a additional model in the Minitrim range.

62. The feature lifted the retail prices.

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. 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. 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.

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. 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. The solution we had may be rejected by consumer preconceptions.

70. 3 months away from production and we needed a new solution, the feature was wanted, but without the stress mark.

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. 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. Not the best way to get there, but this was the better solution.

75. Lowest risk and easily replaceable if there were issues.

76. Simplest to manufacture – the live hinge required tighter process controls and component handling.

78. Further differentiated the range with 5 product types.

80. Lever Switch on all models

81. Tree Guards on XT models

85. What is the aim of Intellectual Property? To protect an idea, concept, information, innovation 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

86. INTELLECTUAL PROPERTY IPRs Other Appliedfor Automatic Knowhow Tradesecrets Patents Copyright Trade marks Design right Registered designs

87. TRADE MARKS Can protect: words logos slogans sounds colours shapes smells Purple in relation to milk chocolate Microsoft Nike

89. Descriptive

91. UNREGISTERED DESIGN RIGHT Unregistered design protection in UK and EU Automatic protection on creation of design Protects the outward appearance of design Design must be new

92. COPYRIGHT Unregistered protection Automatic protection on creation of work Protects the physical expression of idea or content – does not protect the idea Protection includes: original literary (including software), dramatic, musical and artistic works original sound recordings, films, broadcasts and cable programmes

93. PATENTS

95. 20 years from the filing date

96. The monopoly is defined by the claims at the end of the specification

97. A “negative right” that stops other from working your invention

98. It is not a right to work your invention

100. Is my invention patentable? Ask yourself How is it different from what is already available? Does that “difference” have a technical advantage? Online patent searching Espacenet database Keyword in title or abstract Applicant’s name Patent Advice Centre Newcastle City Library Ask a patent attorney

102. Has it already been done?

104. Are there restrictions?

105. Can I protect my idea?

107. Can I protect my idea?

108. Registered Design?

110. The value of intellectual property Intangible Assets are: 68% of enterprise value of WAL-MART 89% of enterprise value of Coca-Cola 80% of enterprise value of IBM (Brand-Finance, Sept 2008) Innovative companies see 25% per annum growth in income

111. Apple – an example of how intellectual property is used Names, brands and logos – trade marks to indicate trade origin Apple® iPod® Operating software - copyright Overall appearance – registered design to protect product appearance ‘Clickwheel’ – patent to protect invention

112. WHAT DOES THIS MEAN FOR APPLE®? Nobody can sell products under the same/similar name: SONY ipod – not allowed Iplod – not allowed Nobody can sell products that look the same Nobody can use the “clickwheel” technology Nobody can copy the same operating software

113. Useful websites www.ipo.gov.uk – UK Patent Office www.european-patent-office.org – European Patent Office www.newcastle.gov.uk/core.nsf/a/librariespatents?opendocument#ip- Patent Advice Centre (free) www.espacenet.com – Patent search engine www.handsoffmydesign.com – European site giving a good overview of design related IP www.own-it.org – Site for creative businesses

116. Transcending information Products are becoming COMMODITISED Brand is often the only basis of CHOICE

117. Cutting through the clutter

118. Rational Emotional Factors Driving choice

119. Wired for emotion x10 x1 rational emotional

120. Factors driving choice “ At BMW we realise that what we make people feel is as important as what we make” Current TV campaign

121. The Brand Model PRODUCT BRAND CONSUMER

122. The Brand Model BRAND PRODUCT PRODUCT PRODUCT CONSUMER CONSUMER CONSUMER

123. Brand Mythology

124. In the beginning… ? INNOVATIVE SNACKS CRISPS

125. Global connoisseur

126. From appetiser to main course…

127. … and the perfect finishing touch

128. Going mainstream commodity… !

132. Summary & Conclusions Innovation is critical to business growth and success There is a process underlying many elements Must be driven top-down The customer must be understood Many tools and techniques are available Many services available to support innovation.....

133. Thank you for your attention…..

This Is Innovation

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