1. IB Business and Management 2.5 Innovation

2. Innovation What is innovation? Why is it important?

3. Invention & innovation Invention is the discovery of a totally new and original product or new ways of doing or making something. Innovation is the process of transforming an invention into a product that customers will buy. It may be a different application of something that already exists, something that adds value or differentiates a product.

4. Invention ‘Necessity, who is the mother of invention’ What does this quote mean? Lets look at some examples

5. Chester Greenwood – Ear Muffs In 1873, 13 year old Chester Greenwood found that his ears got too cold when he was iceskating meaning that he had to go home early To protect his ears while ice skating, he found a piece of wire, and with his grandmother's help, padded the ends. In the beginning, his friends laughed at him. However, when they realized that he was able to stay outside skating long after they had gone inside freezing, they stopped laughing. Instead, they began to ask Chester to make ear covers for them, too. At age 17 Chester applied for a patent. For the next 60 years, Chester's factory made earmuffs, and earmuffs made Chester rich.

6. Earle Dickinson - Bandaid At the turn of the century, Mrs. Earl Dickson, an inexperienced cook, often burned and cut herself. Mr. Dickson, a Johnson and Johnson employee, got plenty of practice in hand bandaging. Out of concern for his wife's safety, he began to prepare bandages ahead of time so that his wife could apply them by herself. By combining a piece of surgical tape and a piece of gauze, he fashioned the first crude adhesive strip bandage.

7. Arthur Fry and Spencer Silver – Post It Notes Spencer Silver was working in the 3M research laboratories in 1970 trying to find a strong adhesive. Silver developed a new adhesive, but it was even weaker than what 3M already manufactured. It stuck to objects, but could easily be lifted off. No one knew what to do with the stuff Then one Sunday four years later, another 3M scientist named Arthur Fry was singing in the church's choir. He used markers to keep his place in the hymnal, but they kept falling out of the book. Remembering Silver's adhesive, Fry used some to coat his markers. Success! With the weak adhesive, the markers stayed in place, yet lifted off without damaging the pages. 3M began distributing Post-it ® Notes nationwide in 1980 -- ten years after Silver developed the super weak adhesive. Today they are one of the most popular office products available.

8. James Dyson – Cyclone Vacuum Cleaner Watch the video Is James Dyson an inventor or an innovator?

9. A brief history of Dyson products 9 * Dyson Ballbarrow 1974 DC01 upright vacuum cleaner, 1993 DC16 handheld vacuum cleaner Apex G-Force DC02 Dyson Airblade 2007 Dyson washing machine, 2000

10. © easilyinteractive.com 200910 *

11. PROTECTING BUSINESS IDEAS

12. Task Watch the Dragon’s Den Nova Flo video How will the inventors protect this business idea?

13. Task Watch the video ‘How to protect your business ideas – Patents’

14. Protecting an Idea 1. Patents Right of ownership of an invention that is registered with Government UK Patents –are for 20 years International Patents are more expensive 2. Copyright Legal ownership of material Given for IPR such as films, books and music. Gives the right to copy, produce and control material. Copyright protection is longer than patents. E.g Books for lifetime + 70 years after death 3. Trademarks The symbols, signs or features of a product protected in law Examples include Coca Cola, Lego, BBC & Scrabble

15. 1. Patents and the patent office Original products or processes can be protected using a patent The Patent Office Charges a fee for patenting a product If a patented product is unlawfully copied, the patent holder can take the inventor to court http://v3.espacenet.com/publicationDetails/biblio?DB=EPODOC&adjacent=true&l ocale=en_gb&FT=D&date=20060511&CC=US&NR=2006096942A1&KC=A1

16. 2. Copyright The creators of certain materials are automatically protected from being copied by Copyright Law. Literary works including books, poems and publications Motions pictures and dramatic works Computer software and animations Songs, song lyrics, sound recordings, and music Photographs, graphics, images, pictures Web pages Works of art including paintings, sculptures, architecture, and computer graphics Educational materials including texts and tests

17. 3. Trademarks can be: 1. Logos 2. Pictures or drawings 3. Combination of letters and a design 4. Slogans 5. Product Shape

18. Innovations The company that makes the best use of a new idea might not be its inventor. The innovator is the person who finds a way to make a new idea work. There are 2 types of Innovation: 1. Product Innovation- New product Ideas 2. Process Innovation- New ways of working

19. Process Innovations - Examples Ford’s first use of the production line by bringing product to the person during fabrication The factory to customer delivery of custom-built computers by Dell Corporation

20. Factors affecting innovation: Level of competition Industry Corporate culture Business objectives Available finance Leadership

21. Peter Drucker 1909-2005 An influential writer and management consultant

22. Druckers 7 Sources of Innovation THE UNEXPECTED: An example of the unexpected is the development of Nutrasweet. A chemist developed a new chemical. Accidentally he got some of it in his mouth. To his surprise it tasted very sweet. INCONGRUITIES: Incongruities or conflicts between opposing functions, requirements or values may be the start of an innovation. For example the request for a small car with still enough space on the inside seems to be incongruent. This however was solved in a new design as the Smart. PROCESS NEEDS: “necessity is the mother of invention”. Looking at weaknesses as an inspiration for new ideas INDUSTRY AND MARKET STRUCTURE: Competition and changes in customers needs and wants creating the need for change DEMOGRAPHICS: Changes in demographic trends that create the demand for new products and services CHANGES IN PERCEPTION: Changes in customers perception and beliefs NEW KNOWLEDGE: Availability of new technologies/knowledge

23. Diffusions of Innovation Theory Created by Everett Rogers in 1962 Identified 5 types of consumers Particularly applies to technology products

24. Sales

25. Adoption rates will depend on: Relative advantages – is it better than alternatives? Observable features – can the benefits be seen? Compatibility – Does it work with existing systems? Complexity – Do customers perceive that it will be difficult to use? Trialability – Can customers try before they buy?