Product Innovation Shauna Jin Design for Sustainability program Industrial Design Engineering Delft University of Technology Start with a quote:

About me Bachelors in Architecture and Mechanical Engineering (2006) Msc in Integrated Product Design (2008) PhD (???) Design Interests Design as a way of looking at problem solving and life Design thinking: creative, systematic, analytical, synthesizing Cross-cultural collaboration in new product development Fencing, biking, music making (cello), design related things

Innovation is the specific instrument of entrepreneurship Innovation is the specific instrument of entrepreneurship... the act that endows resources with a new capacity to create wealth.  - Peter Drucker Author of Innovation and Entrepreneurship and came up with the seven sources of innovation What does this quote say about innovation? Innovation is related to entrepreneurship An instrument or a tool…so it can be leveraged or used enables new capacity to creating wealth “new capacity” talks about continuity or sustainability of a company In the next slide…I will elaborate on this

What is Innovation? The development and successful application of new and useful ideas. 50-70% of economic growth is directly or indirectly due to innovation. The goal of innovation is to guarantee the continuity and sustainability of the company and its activities. Managing Innovation (Tidd and Bessant 2009): So what is innovation? The term innovation comes from the Latin innovatus, which means "to renew or change," from "into“ something "new". The central meaning of innovation thus relates to renewal or improvement, with novelty being a consequence of this improvement. In terms of this training, we will get more specific and say that innovation is: The development and successful application of new and useful ideas. It’s an action word. Related to economic growth about continuity or sustainability of a company In the figure on managing innovation, we can see that innovation strategy can be structured… Tidd and bessant model shows a roadmap on how to change into something new?

Different kinds of innovation Product innovation the introduction into the market of new products the product characteristics and or use applications of which differ from existing products in the market. Product Innovation = (New) Product Development & Realization Evolutionary or incremental innovation..we’ll talk more about this later

Different kinds of innovation Product innovation the introduction into the market of new products the product characteristics and or use applications of which differ from existing products in the market. Product Innovation = (New) Product Development & Realization Here’s another example, but more creative…

Different kinds of innovation Product innovation the introduction into the market of new products the product characteristics and or use applications of which differ from existing products in the market. Product Innovation = (New) Product Development & Realization An example from CP4BP…stacked multifunctional…

Different kinds of innovation Process innovation the introduction of a new method of production, without any experience yet, or a new way of commercially handling a commodity in order to make the production more efficient or to be able to produce new or improved products. Reprap example: Cleaner production is also an example of process innovation

Different kinds of innovation Market innovation the entering of new markets, new ways of serving customers, market expansion.

Different kinds of innovation Business and management innovation rewarding systems, organizational structure, responsibilities, human resources etc. Examples of business innovation. New business models for making money or not..

Innovation levels I already showed some examples of incremental and fundamental innovation 1> Incremental innovation_ Entails step-by-step improvements of existing products and tends to strengthen market positions of established companies in the industry. Who can give an example of incremental innovation??

Innovation levels 2> Radical innovation_ Drastically changes existing products or processes. The risks and required investments in radical innovation are usually considerably greater than those needed for incremental innovation but they offer more opportunity for new entrants to the market. Evolutionary process but the step is quite large…so it counts as radical innovation Who can think of an example of radical innovation?

Innovation levels Evolutionary process but the step is quite large…so it counts as radical innovation Who knows what this is? >>printing press 3> Fundamental innovation_ Depends on new scientific knowledge and opens up new industries, causing a paradigm shift. In the early stage of fundamental innovation, the contributions of science and technology are important.

Innovation levels Who knows what this is? >>printing press Let’s discuss incremental and radical innovation more in depth in the next slide

Incremental vs. Radical Innovation

D4S innovation levels 10 5 2 How this is linked to eco-efficiency… Factor benefit.. Linkd to innovation

Innovation levels

Innovation levels

Innovation: South Korea Not necessarily linear…

Innovation at company level Company-wide; top management has to be involved Not just a technological issue Unique from project to project, but similar in process Can be managed Takes time and energy Multidisciplinary and exciting Integrating new knowledge into current practice Continues Learning

“Reasons” for not innovating At the moment no time… A lack of money… Not necessary, it went always fine.. Last time it didn’t work-out either… No capacity, first finish the work… Now idea how…. Development does not create sales and profit No ideas…. We don’t want to change….

The Psychology of (Innovation) Projects Optimism IT WORKS !! Enthusiasm This taking time Some results Kind of like a phd… Dark night of innovation No results yet Pessimism Time

Product Innovation process I will show you a few different models of the product innovation process…there are some similar points about all of them. There is no right or wrong way. It’s more of a way of structuring your design process. The first part of the innovation process is called ‘product planning’. In this phase it is decided what product(s) will be developed and when. Product planning has two parts: ‘policy formulation’ and ‘idea finding’. ‘idea finding’: Before a product can be developed, someone has to come with the idea for it. In a new product idea two elements come together: a technical possibility and a market need Promising ideas for new products must be worked out into detailed plans for the product, the production and the sale. This phase is here called ‘strict development’. The plans are developed with the new business idea, as point of departure and it is very important that the plans are properly attuned to one another.

Iterative process the product development process must be arranged ‘concentrically’. Concentric development means that at first all plans are worked out in outline, to be able to estimate the technical and commercial feasibility of the new business activity as a whole. Whenever a product idea survives the first round, the plans are further worked out in a second round, etc., until they are completed and fit one to another

Different model of product innovation…

Basic Design Process he kernel of designing is reasoning from functions to form (geometrical form and physico- chemical form) and use of a new product. It is not possible to deduce the form and the use of a product from its function(s) and in principle many different for a particular function can exist. Therefore in essence design a trial-and-error process that consists of a sequence of empirical cycles. In each cycle by experience, intuition and creativity provisional solutions are generated, which are to be tested for their qualities by theoretical simulations and practical experiments. In this trial-and-error process the knowledge of the problem and of the solution(s) increases spirally.

Drucker’s 7 Sources of Innovation The unexpected. The unexpected success, failure or outside event. The incongruity. The difference between reality as it actually is and reality as it is assumed to be or as it “ought to be.” Innovation based on process need. Changes in industry structure or market structure that catch everyone unawares. Demographics. Population changes Changes in perception, mood and meaning New knowledge, both scientific and nonscientific. Speaking of diverging and converging… innovation capitatlizes on exciting situations..

So how does this fit into the training?

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