continues to rage.

Since 1934, when Schumpeter claimec

5.2-INNOVATION entrepreneurial activities were driven by a technologica-
push, the debate has swung both ways. Today's consensus
Essrrunnl IDEA is with the theories of Schmookler, who in 1962 decidec
user needs or market pull were the most influential drivers
There are many different types of innovation. of innovation.

o lBo 2012 More recent research is swinging the pendulum back

towards technology push theories where technologica-
breakthroughs with strong intellectual propertyprotection
act as the driving force.
Nnrunr oF DESTGN
Regardless of the style of approach or driving forces, it is
Designers will be successful in the marketplace generally agreed innovation is the lifeblood of economic
when they solve longstanding problems, growth.
improve on existing solutions or find a
'product gapi The constant evaluation and Reasons why few inventions become innovations
redevelopment of products is key, with
unbiased analysis of consumers and commercial The chances of an invention being developed into a
opportunities. market-successful innovation may be influenced by the
following factors:
o lBo 2012
. expectations of demand

Arrvt . magnitude of user needs

ln order for an invention to become an expectations of profitability

innovation, the idea of the product needs to be
effectively communicated. The communication degree of positivity of market perception
can take many forms and be between many
stakeholders. . amount of inteliectual property protection afforded bv
patents.
o lBo 2012
Investing in innovation is about risk taking. Innovation
lnvention and innovation tends to be more risky from technological, financial
and market success standpoints. Market research is also
Invention isbroadlydefined as the act ofcreatit-tg somethir-rg less reliable for innovative products. Design teams and
new or the significant improvernent of something already researchers have to rely on gathering as much feedback
in existence. It most often involves creating something as possible from prototlpes rather than generations oi
that has not existed before. Inventions may take the iorm market-successful product developments. Early markets
of a product, service or system. are also volatile and unpredictable places, characterised
by high technological and customer uncertainty. Until
Innovation refers to the successfui commercialisation of customers form clear preferences about what constituents
an invention. An invention with no commercial r'iabilitv a successful, marketable product there is a great deal of
would not be classed as an innovation. variation in design and technologies on offer, not all of
which can survive in a competitive marketplace.
There are many theories on the nature oi and mechanisms
that bring about, invention and innovation. These theories Redevelopment of an existing product, (may only involve
range from the'lone geniusl to coincidental discovery and incremental adjustments to form or features of an existing
cultural maturation. Most consider the role factors such as product), is more common due to the fact that market
chance and serendipity may play in the process. demand has already been established.

While some of these theories are contradictory and

others sit comfortably beside each other, the debate
over market demand versus technological opportunism

178
Categories of innovation: sustaining innovation; Process innovation
disruptive innovation; process innovation
Process innovation refers to developments associated with
Sustaining innovation the process that create or deliver services and products.
I
Process innovations such as those adoptedby Henry I
Sustaining innovation is simply the application of Ford in 1913 can have enormous effects not only on I
-ncremental adjustments to existing products that allow productivity, quality and economics but also far reaching I
.|rem to sustain sales and continue in the market. These social change. The moving assemblyline developed byFord !
;hanges often involve improvements in performance to produce motor cars not only allowed him to generate f,
-:nd quality by the addition of new features. Sustaining larger numbers of quality vehicles in a shorter period I
-nnovation often involves economies of scale or efficiencies of time but it also reduced the cost of the final product !
.rat may be gained through the implementation of making automobiles available at a price the general public fi
--ost cutting measures. These deliberate, planned and could afford. While Henry Ford was not the first to use the !
-lcremental innovations are more predictable from assembly line, he is credited with refining the controlled !
.l financial or investment perspective than disruptive movement of standardised parts and revolutionising mass
.lnovations. For example, in the category of household production. Labelled as 'Fordisml this allowed the mass
-.r'ens, self-cieaning features make the product more production of vehicles of a consistent quality.
.r-n,ironmentally friendly. Beds with independently
.,djustable firmness cater for individual sleep habits and
'.
ehicles with anti-collision sensors and auto parking make
:ars safer.

Disruptive innovation

)isruptive innovation is a phrase coined by Clayton

,lhristensen and in his own words refers to, " a product
,r service (that) takes root initially in simple applications
-,i the bottom of a market and then relentlessly moves up
::rarket, eventually dispiacing established competitors'l

)isruptive innovations are often radical solutions to

'-.roblerns
in competition rvith eristing products. They Figure 5.2.1 Ford assembly line Long Beach California
.alvanise customers and markets alike and are so named c1 930
recause they disrupt existing market behaviour. They
.,ften enter the market at the lorver end yet compete Ikea is another company that used innovation by
:irectly with products that have been developed over time developing, (in the 1950s), manufacturing processes based
..nd which have moved to an upper price bracket. around flat-packing, ease of delivery and self assembly.

\pples iPhone is a good example of disruptive design. In

-. rlarket dominated by Sony Ericsson and Nokia, Apple
,rtroduced a new device that captured the markets interest
,r'ertaking all in sight. It has transformed the way people
:ommunicate, buy and listen to music, access internet
:ervices and even navigate using a portable device.

-rioneering or new n-rarket disruption is more complex

.,rd fraught $,ith difficulties. Because the target market
.:ra1, not currently exist, predictions on sales and profits
,.rn be hard to calculate with any certainty. This can make
.cquiring investment partners particularly challenging.
- --re introduction of 3D printers into the consumer market

. .rn example of new market disruption. Cheaper less well

=atured versions of successful commercial designs are
..:pearing at the lolv end of the rnarket.
Figure 5.2.2 lkea flat pack self assembly furniture

179
Probably the most significant example of process incremental innovation shown has taken place c',
innovation occurred around the time of the Industrial many decades. It demonstrates superficial refinem.:
Revolution, (-1759-1850), when whole industries moved of the exterior and the remodelling of an establis:..-
from craft production techniques to mechanisation and design with the introduction of more efficient motors :: -
the development of centralised factories with the ensuing some materials modifications. Essentially, however. ,

social change. underlying core design concepts, and the links betr'=.'
them, remain the same.
lnnovation strategies for design: architectural
innovation; modular innovation; confi gurational The variations shown point to minor, incremental chan:,
innovation taking place between the 1920s and the 1980s. The c
design concepts, systems principles and compor.
There are many ways to characterise innovation. This iinkages largely remain unchanged.
particular method proposed by Henderson and Clark is
useful because it combines a number of innovation styles
and charts their relationships relative to each other. The
chart in Figure 5.2.3 shows innovation plotted along two
axes at 90o to each other. The horizontal axis plots the
categorisation of innovation based on product or service
components while the vertical axis charts the effects of
modifying the linkages between components.

o.
o
!u!l Unchanged lncremental Modular
AC
:o
cH
@;
OE
39
q!
io f; Chansed Architectural Radical

6
c
= Reinforced Overturned
Core concepts
Figure 5.2.4 lncremental innovation- electricfan
Figure 5.2.3lnnovation framework remodelled
from Henderson and Clark, Architectural lnnovation, Architectural inr-rovation is often triggered by reductio:-.
Administrative Science Quarterly, Vol. 35, No. 1, Special component size causing new component interactions
lssue: Technology, Organizations, ond lnnovation. (Mar., re-arrangement of existing components in such a \ra'. -
1990), pp.9-j0. to create an innor.ative response. The reduction in siz.
electronic components saw portable radios transfori:--.-
as electronic components became smaller and sm;.-.,
while the basic principle of the design remained the sa: -
Architectural or configurational innovation
Figure 5.2.5 shorvs an example of architectural inno\.r:
Architectural or configurational innovation works on a through the reconfiguration of an existing product
systems level, modifying not the individual components rearranging components in new ways. In this tc - -
of a design but their arrangement, Iinks and interactions the basic 'system' stays the same as do the underl,.'- -
to impro.'.e performance, usability or functionality. principles that make the product work. The box fan de..:
Examining changing fan technologies over time is one changes the relationships between the major componi
example of how incremental and architectural ir-rnovation and could be considered to be an architectural innovai: -
affects the design ofa product. With the motor centrally located and the guard ser,.''--
the additional roles of frame, base and controller mt -
The standard desk fans, shown in Figure 5.2.4, have been the same basic components are arranged in new wavs.
a stalwart of the air ventilation industry for decades.
Arrangement of blades, motors, guards and controllers Another example of architectural innovation is ,
-

is rvell established and as such little has changed. The development of cloud computing services where soltr, -'

180
companies make programs available online without the Modular innovation
need for users to install them on their computer.
The key feature of modular innovation is the introduction
of nerv or substantially different components to a product
without changing core design principles affecting the
relationship or linkages bettveen component parts.
Examples of modular innor.ation include:

. the advancement from Web 1.0 to Web 2.0 through

the technology that introduced interactive content
between provider and user as well as user and user

. replacing analog, rotary dialing mechanisms with a

kelpad
Figure 5.2.5 Architectural innovation-box fan
. spring-based balance scales replaced by digital devices. r
Radical innovation
The impact on design, manufacturing and markets of
Radical innovation overturns the core design concepts of modular and incremental innovation is less signihcant
existing designs and brings together both nerv operational than that ofarchitectural and radical innovation.
components and also previouslr' unseen architecture or
Iinkages between these cornponents. lnnovation strategies for markets: diffusion and
suppression
In recent times the innovation associated with the Dyson
desk fan demoustrates a more radical approach to the Diffusion
problem. In this product der-elopment, there are no
moving blades or guards evident and air is accelerated in Diffusion is the process of spreading knowledge of the
a continuous fashion. Using the principles of inducement development of an innovation through a consumer or
and entrainment, the expelled air (driven by nine target market over time to enhance the adoption of the
asymmetrically aligned rotating blades hidden in the product from limited use to widespread penetration and
base), amounts to 15 times the volume taken into the base. adoption in the market. The key to adoption is perception,
that is the consumer must see the innovation as a desirable
replacement or substitute for an existing product.

The key tenet of market diffusion theory is that the most

influential factor in a consumert purchasing decision
is the previous purchasing choices of other consumers.
The communication among consumers through social
networking is known as 'the network effect' or more
colloquially as the word-of-mouth effect. The digital
society has moved from traditional, physical word-of-
mouth to social networking. Communication for products
and services can spread both rapidly and globally through
such systems as Facebook and Twitter. Even corporate
websites such as Amazon and Trip Advisor offer consumer
reviews of products. Media also plays a role in spreading
awareness and information about a product as lvell as

influencing a consumer's decision making process.

Figure 5.2.6 Radical innovation-Dyson fan According to Rogers, (1962), the stages of innovation
diffr"ision appear as shown by the graph in Figure 5.2.7.
Successful radical innovations establish netv dominant Groups of adopters and their relative percentages are
designs that disrupt existing markets attracting existing identified by the bell curve shaped black line. Market share
and new customers to the field. is indicated by the 'S' shaped grey'line ending in market
saturation (100%). The 'S' curve shorvs the initial slow rate

181
of adoption transforming into a steeper more rapid pace Suppression
of adoption as consumers embrace the new product.
As documentedpreviouslyin section 5. 1-the effectiveness
of strategies for protecting IP - many companies suppress
innovation due to the uncertainty surrounding patent
infringement and potential litigation. In their 2009 book,
Patent Failure: How Judges, Bureaucrats, and Lawyers Put
Innovators (fi Risk, 1aw professors Bessen and Mer-rrer
o
-
o
showed that in 1999 the global costs of litigation, (outside
of the pharmaceutical industry), were US$12 billion rvhile
=
o
o the profits associated with patents in all of the combined
{ields only amounted to US$4 billion. Clearly the risk
associated with patent infringement particularly in grey
areas looms large and is a strong incentive for companies

tnnovators Early Early Late Laggards to sLlppress an innovative product.

2.5 o/o Adopters Majority Majority 164/o
13.5 o/o 34 o/o 34 a/o

Litigation may also be used as a delaying tactic against

Figure 5.2.7 Rogers of innovation diffusion competitors, particularly in the early highly contested
-stages phase of introducing new product to the market. Even if
Specifically, the strategies used to influence consumers to patent litigation is not successful, the act of filing a case
make positive buying decisions rvill depend on the stage of against a cornpetitor may tie them up in the court system
the innovation diffusior-r cyc1e. Iong enough to make their product less viable. Such
actions discourage others from entering the field.
In the earliest stages ofthe cyc1e, product awareness is the
key as firms seek to build knorr{edge about the product On occasions, successful companies may attempt to
and its availability Product brand identification and protect their market share from competitors by lobbying
quality benchrnarks are also established here. Pricing can governments to amend legislation making it difficult for a
be variable depending on rvhetl.rer the company is aiming newcorner to enter the market.
to recover expensive research and development costs
or rvhether a fast rnarket entr)' strateqv to build market I rurrnruRloNAL MtNDEDNESS
and penetration is attempted througl-r aggressive pricing
models. Distribution is often concentrated ur-rtil market lnnovations may have positive consequences
acceptance is achieved. Prornotion canrpaiql5 are targeted in some countrieslregions and negative ones in
to early adopters lvho assist tvith ir-rarket cliftusion through others.
social networking.
o tBo 2012
During the early majority stage of innor-ation diffusion,
strategies shift to product identity encouraqing consLimers
to make a brand preference decision. Pricing tends to be Culture is a unifying influence on people's behaviour,
fixed but additional features or services tnav be added as but it may also create barriers between people. As
an incentive. Distribution networks of the product are communications and transportation networks'shrink'
more widespread and the target audience is rtidened ir-r the globe, the introduction of innovation into a variety of
marketing campaigns. communities must consider the ramifications of the 'one
size fits all' principle.
Once the product is well established and sales start to
taper, product features may be improved and pricinq nral- The effects of innovation may be less equitable than
be discounted. Prornotion campaigns focus ot-l product first envisioned. Process innovation regularly reduces
differentiation in the rnarketplace. employment opportr-rnities, often replacing labour with
capital investment in the form of new technologies.
As laggards appear in the market, pricing mav be Holvever, when a successful product innovation creates
significantly reduced. The product may be discontinued employment, the growth in the workfbrce may not
or a new modified/updated version may aPpear to attract necessarily take place where the company traditionally
new consumers and target repeat sales to first generation bases its operations. Many companies move manufacturing
adopters. operations offshore for a variety of reasons including
wage costs, labor.rr laws and environmental legislation

182
requirements. In this scenario, there maybe trans-national
winners and losers in the areas of employment and the
environment based around the same innovation. In the
case of global brands, multinational companies are now
able to span the globe with single standardized designs
that see profits from iocal sales distributed to the parent Essrrunnl rDEA
company offshore. This can have a detrimental effect on
Iocal empioyment, manufacturing, research and design Designers have a range of strategies for
and even national economies. !nnovation.

o lBo 20'12
Tneonv oF KNowLEDGE
Design is always looking to the future and new Nnrune oF DEsTGN
development. Do other areas of knowledge have
universal, timeless truths or are they continually Companies encourage advancements in
in flux? technology and services, usually by investing
in research and development activities. Even
though the R&D may be carried out by a range of
different experts from varied fields of research,
the development process is often based on
Whether it be materials developments, new manufacturing common principles and strategies to identify
processes or the latest aesthetic, the world of design the direction of development.This methodology
has always been obsessed with the next 'best thingl The structures the R&D of new technologies and
21st century is characterised as a time marked by the services.
embracing of rapid and constant change and as such all
areas of knowledge and human endeavour continue to o tBo 2012
pursue the truthl Socrates is quoted as saying, 'the only
thing we can know is that we know nothingi Heraclitus
of Ephesus (c. 535-c. 475 BCE)), was one of the first to
propose that, "radical flux renders it impossible to have Arn
knowledge of the sensible world......for there can be no
knowledge of that which is in fluxl' lnnovation should always occur in context and a
deep understanding of the culture as well as the
In all fields of investigation whether it be history, science behaviours, needs and wants of the consumer is
or psychology, whenever we discover something new we required.
have the opportunity to combine this with what we already
know in new ways and thus produce original thought or
new knowledge. All areas of knowledge have information
that we believe to be true based on our current levels of
understanding. Act of insight

Exercise It seems history has few recorded 'acts of insight' or 'eureka'

moments. Popular culture would suggest that many
Choose one fact from the past and create a timeline of innovations are the result of some spark of genius, yet
how our knowledge and understanding has changed, e.g. their are few genuinely documented examples. Historic,
number of planets in the solar system or who invented the legendary examples of acts of insight include:
telephone.
. Greek mathematician Archimedes', (c.287-c.212
BCE), 'eureka moment'when bathing he determined a
way to establish the density of material using displaced
water as an accurate way to measure volume of
irregular shapes

183