Topic 5: Invention and Innovations

Question 1

Intellectual Property

Answer 1

the legally recognised right to creations of the mind. Common types of intellectual property include:
copyright
trademark
patents
trade dress
trade secrets
benefit from IP
differentiating themselves from competitors
allowing the sale or licensing of technology which can generate revenue
defining marketing and branding
establishing a brand that has value as an asset

Question 2

Invention

Answer 2

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

Question 3

Innovation

Answer 3

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

Question 4

Sustaining Innovation

Answer 4

the continuous development of a product throughout its lifecycle.

Companies may sustain innovation in several ways:
Adding new functions or abilities and/or improving existing functionality

Cost reduction: As production increases companies can take advantage of economies of scale and pass on the savings to consumers.

Product expansion: As product begins to grow in the market, companies may offer different versions, sizes, to meet a broader range of user’s needs and tastes.

Question 5

Disruptive Innovation

Answer 5

a product that challenges existing companies to either ignore or embrace the change. force existing companies to completely change their products or risk being obsolete.

Question 6

Process Innovation

Answer 6

an improvement in how a product is manufactured and distributed, leading to reduced costs or increased benefits for consumers.

Question 7

Architectural and Modular Innovation

Answer 7

Designers may approach innovation from two different directions: Architectural or Modulal. 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.

Question 8

Diffusion

Answer 8

rate at which a new product is accepted by a market. describes how product moves from being used by a small group to becoming widely used.

Question 9

Suppression

Answer 9

the active slowing or prevention of a new product entering the market. Disagreements of patents on the new product may slow or prevent its entry and adoption into the marketplace.

Question 10

Marketability

Answer 10

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

Question 11

Financial Backing

Answer 11

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

Question 12

Marketing

Answer 12

Strategies including shipping, advertising, storage and distribution, and sales may not be effective. Consumers may not understand the unique selling points of the product or be able to purchase the product easily

Question 13

Need

Answer 13

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

Question 14

Price

Answer 14

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

Question 15

Resistance to Change

Answer 15

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

Question 16

Risk

Answer 16

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.

Question 17

Act of insight

Answer 17

an idea that suddenly comes to a person.

Question 18

Adaptation

Answer 18

describes how a solution in one field is used to provide a solution to a new problem in a different field.

Question 19

Technology transfer

Answer 19

describes how a technology developed in one context is applied in different and new contexts.

Question 20

Analogy

Answer 20

the use of an idea from one area to develop an innovation in an new area.

Question 21

Chance

Answer 21

Sometimes unexpected discoveries can lead to new ideas. For the inventor, it is important to notice and realize the potential for this “unexpected” discovery and consider how it might be applied to an existing problem.

Question 22

Technology push

Answer 22

Sometimes, a technical development will be the driving force of the innovation, despite there not being an identified need for a solution.

Question 23

Market pull

Answer 23

refers to consumer demand for an innovation or solution. It can also refer to a need to respond to competitors innovations in an effort to maintain market share.

Question 24

Lone Inventor

Answer 24

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. characterised as having ideas that completely new and different.

Question 25

Product Champion

Answer 25

an influential individual, usually working within an organization, who develops enthusiasm for a particular idea or invention and “champions” it within the organization. Product champions know the customers and have a deep understanding of how the product successfully meets their needs.

Question 26

Entrepreneur

Answer 26

an influential individual who can take an invention to market, often by financing the development, production and diffusion of a product into the marketplace. Entrepreneurs typically have strong business acumen and interpersonal relationships that they can use to bring a product to market.

Question 27

Multidisciplinary Approach to innovation

Answer 27

In some cases, the inventor is also the product champion and the entrepreneur. To occupy these multiple roles, though, requires specific skills. Most modern products are very complex and use a variety of materials, processes, and technologies. For this reason, designs are often developed by multidisciplinary teams. Advantages: draw from multiple areas of expertise to address different aspects of the design wide range of knowledge can be applied to the design combination of different perspectives can create innovative solutions Disadvantages: an individual may be reluctant to share ideas for fear of losing ownership miscommunication can happen, especially with large teams working in different locations individuals may not like working in a team

Question 28

Product Life Cycle

Answer 28

tool for mapping out the four stages of a product’s commercial life: Why have a cycle? Society accepts products at different rates, but all go through similar stages of societal acceptance. This acceptance of innovations by societies is called the diffusion of innovations. As society begins to adopt and accept an innovation, the new product grows, eventually reaching maturity. The Product Life Cycle has four stages. Each stage is not determined by age, but by the relationship of sales, costs, profits, and number of competitors.

Question 29

1. Introduction/Launch

Answer 29

Only the innovators will be aware of it. Sales are low No or little competition, therefore the developer enjoys a monopoly Because sales and awareness of the product are low, an extensive marketing effort may be needed to move the product to the next stage in the life cycle.

Question 30

2. Growth

Answer 30

Early adopters begin to use the product Sales and profit begin to grow. Company still enjoys monopoly early in the growth Competitors introduce competing products later in the growth stage, reducing profits. Possible for inefficient companies to still profit as they can depend on sales and early monopoly.

Question 31

3. Maturity

Answer 31

Many competitors competing for customers product differentiation strategies are used to attract customers Crowded or saturate marketplace, with many models. Only efficient companies are able to carry a product through this stage. Few new companies enter the market, as the profit margins are lower With the growth of personal computers in the 1980s, many companies were in the market. Soon, though, only the largest, most efficient, or most innovative companies were able to carry their products to maturity.

Question 32

4. Decline

Answer 32

Sales and profits drop sharply The public abandons the product Number of models is reduced An advanced technology may replace the product. For example, CDs replaced demand for cassette tapes. In this stage, it is important to consider possible next steps to revitalize a product.

Question 33

Predictability of the product life cycle

Answer 33

It is possible to predict the length of the product life cycle. consumer trends in fashion are quite unpredictable. This means that the product lifecycle can be shorten or lengthen unexpectedly.

Question 34

Product versioning/generations

Answer 34

A company can maintain a pioneering strategy and consistent revenue phone by introducing new versions of a product to market. Product versioning refers to the creation of variations of a product, different models, that are sold at different prices. This allows consumers to choose a product based on either its degree of function or its cost. The advantages of this strategy is that consumers can choose a model that suits them best.

Question 35

Obsolescence

Answer 35

Refers to a product being no longer used

Question 36

Planned Obsolescence

Answer 36

A product becomes outdated as a conscious act either to ensure a continuing market or to ensure that safety factors and new technologies can be incorporated into later versions of the product. Planned obsolescence artificially limits the useful life of a product. Designers have a moral responsibility to consider and reduce the environmental impact of their designs.

Question 37

Technological obsolescence

Answer 37

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. Examples: Video media: VHS→DVD→Video Streaming Home phones / Public telephones → Mobile phones Strategies: many technologies are replaced by digital solutions Newer, faster, better technological improvements mean the older technology is no longer desirable or useful. Criticisms: The move towards digital, online solutions often brings great functionality, lower cost, and greater innovation. However, many newer solutions rely on online services which can end or be cancelled by the provider, leaving the user with no options.

Question 38

Functional obsolescence

Answer 38

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.

Question 39

Style (fashion) obsolescence

Answer 39

Fashions and trends change over time, which can result in a product no longer being desirable.