1. CONTENT
The importance of innovation and creativity
How engineers can innovate?
Challenges involved in innovation
Successful innovation: Beats by Dr. DRE
Unsuccessful innovation: Breastlight
Thoughts for the future
How can engineers
INNOVATE?
MANAGEMENT OF INNOVATION, DM 981, UNIVERSITY OF STRATHCLYDE
Lasse WOICHE
Carles DEBART
Patrick O’CONNELL

3. The importance of innovation and creativity
USA office of technology assessment
Innovation encompasses both the development and appli-
cation of a new product, process or service. It assumes
novelty in the device, the application or both.[]… Innova-
tion include many activities like scientific, technical and INNOVATION
market research.
≠
Definition of
INVENTION
ABS Innovation survey
questionnaire Innovation
An innovation is a new or
substantially improved good Business dictionary INNOVATION
or service which has been
commercialized, or any new or The process of translating an idea or inven- ≠
substantially improved process tion into a good or service that creates value CREATIVITY
used for the commercial or for which customers will pay. To be called
production of goods and an innovation, an idea must be replicable at
services. an economical cost and must satisfy a need.
Business council of Australia CREATIVITY
In business, innovation is something that is new or significantly ≠
improved, done by an enterprise to create value either directly for INVENTION
the enterprise or indirectly for its customers.

4. Steve Jobs
The importance of innovation and creativity
Milan Kundera
―Innovationdistinguishes
between a leader and a ―Business has only tow functions:
follower‖ marketing and innovation‖
Famous quotes about
”
Innovation
Michael Porter
―Innovation is the central issue
in economic prosperity‖ Steve Jobs
―Innovation has nothing
Bill Gates to do with how many $
―I believe in innovation and that you have. When Apple
the way you get innovation is you came up with the Mac,
fund research and you learn the IBM was spending at
basic facts‖ least 100 times more in
R&D…‖

5. The importance of innovation and creativity
Why we distinguish between creativity,
invention and innovation $
“usefulness
is in the eye
Innovation funnel $
of the user”
$
$ “newness is
$ also judged
by the user”
“if the inven-
1 2 3 tion is useful
to someone,
then it is
Creativity Invention Innovation innovation”
Essential part of Implementation of Turn the invention
the innovation the idea into a commercial
success

6. Innovation really matters
The importance of innovation and creativity
learning from Detroit
Many
companies
went
bankrupt.
But other Unemployme
Detroit companies
nt led into
competitors many social
were stuck in their
entered the game old processes problems
1 2 3 4 5 6 7 8 10
In 1950, Until the 70s Offering The market User requirements
better
Considered
Detroit was was the world changed were not met by
quality at a towards by Forbes
a city with center for Detroit companies,
everything lower price smaller cars the most
automotive innovation funnel was
you would innovation with better not working miserable
need technology city in the
US

7. Innovate
The importance of innovation and creativity
or die “4rth March
2013:
Detroit declares
fiscal
emergency as
it faces being
largest city in
US placed
Under state
control”
Daily Mail

8. Different types of
The importance of innovation and creativity
Innovation Incremental
innovation
Involves small
steps, something
that is a minor
improvement to
an existing
solution
Radical innovation
Revolutions
―Big steps, often giving
―When innova-
solutions very different
tions cause a
from the existing ones‖ huge impact
on society,
changing our
lives forever

9. Take risk and if necessary
How can engineers innovate?
How can engineers innovate?
Innovations
driven by
make mistakes mistakes
The slinky
Paul J. H. Schoemaker, Penicillin
director at Mack Center for
Chocolate-chip
Technological Innovation Cookies
―Mistakes allow for variation far be- The pacemaker
yond what was expected. You
Microwave oven
make a wrong turn but find a better
road to your destination. []...This is Saccharin
why it is so crucial for companies
Sochiro to foster a culture that celebrates Fireworks
―Success is Honda productive mistakes, the kind that Ink-Jet printers
99% failure‖ can stimulate thoughts and gener-
ate new paths. If leaders do not al- Post-it notes
low failure, the also kill innovation X-rays
[]...If you want big returns, you
need to be willing to accept losses
as well‖

10. Innovation is about arguing
How can engineers innovate?
How can engineers innovate?
Tricks that engineers can use to get the best out of creative teamwork
Not brainstorming
No hierarchy
Breaking down hierarchy is critical for deliberate discourse. It is
essential to create a spaces where everyone can truly contribute.
[]… You should know that you are not doing your job if you don’t
disagree with others at least once a day.
But… “with a common goal”
As much as we may argue and disagree on a possible solution, all
that happens in teamwork counts towards the shared goal. Engineers
have to learn how to argue without hurting the one another
Diverse perspectives
It has been reviewed that cultural diversity helps in improving
creativity and innovation, but to get the most out of it, culturally
sensitive management is also required.

11. 1.Challenges on idea
Generation
Challenges involved in innovation
“In the idea stag-
es, researchers
DIVERSE INFORMATION have highlighted
RISK TAKING ENCOURAGED the importance of
SOURCES
correct managerial
STAFF WITH DIVERSE attitudes and
ADEQUATE RESOURCES
INTERESTS T working condi-
tions in facilitating
SUPPORTIVE GOOD STRATEGIC a creative environ-
MANAGEMENTT DESICIONS ment. Critical to
this are freedom
FAILURES WILLINGLY FREE INFORMATION of the employees
TOLERATEDT Birth of EXCHANGE to think and act
initial idea according to their
FREEDOM TU PURSUE ACCESS TO EXTERNAL own ideas rather
OWN IDEAST STIMULI than following
strict management
SUGGESTION NON CONSTRAINING plans...”
PROGRAMMES ENVIRONMENT
SUCCESS RECOGNISED TECHNICAL COMPETENT
TEAM
PATENTS PROGRAMMES CHALLENGING
ENVIRONMENT

12. 2.Challenges on successful
Development
Challenges involved in innovation
The development
phase of this process
is where the new con-
cept is refined to en-
sure that it meets all
the needs of the end
user. This is where the
details and specifica-
tions are derived for
the propose applica-
tion. The most often
quoted issues here are
the provision of ade-
DEVELOPMENT quate resources,
strong support and di-
rection from the com-
pany, the use of appro-
priate external exper-
tise, good co-
operation within the
team and close contact
with the end user

13. 3.Challenges on successful
Application
Challenges involved in innovation
The third phase is
“successful application”.
This is acid test, “will the
customer adopt the
new concept?” This is the
last stage of the
process, but it is an area
that must be considered
early in the development
programme.
Researchers have high-
lighted the need to
understand exactly what
the end user wants at
an early stage in the de-
velopment process, and
there are many cases
quoted where a failure to
understand the customer’s
perspective has
lead to the failure of a
seemingly good idea.

14. Successful innovation I
Beats by Dr. Dre
“When the now-
Creative key points ubiquitous headphones
Successful innovation
debuted in 2008, Beats
defied the foundering
Not aimed to be authority on sound in the economy. Flaunting a
hefty price tag north of
consumer audio space $300 , Beats lured cus-
tomers away from
Define the product idea as subversive and flimsy $20 earbuds with
their signature turbo-
oppositional charged bass and sleek
design. Just over three
years in, Beats Elec-
Diversify beyond headphones tronics has snapped up
51% of an estimated $1
billion headphone mar-
Try to sound very different from what there was ket, according to retail
In the market analysts at the NPD
Group. “So far we’ve
had triple-digit growth
Chase everywhere they can bring emotion back in every market in the
world,
Into sound
Luke Wood
Pursue to be a new trend via famous people CEO of Beats audio

15. Successful innovation II
Beats by Dr. Dre
“The build quality is
solid-these will stand
Successful innovation
Invention Key points up to a few knocks and
tosses on the couch, or
on the floor, and they
They put back the quality lost in modern-day life compression feel extremely durable.
The large padded head-
band attaches to adjust-
able brushed aluminum
Reproduce the sound exactly how it was originally heard by sides, ending with full-
size earcups that rotate
the artists in the studio upward for storage.
Each earcup is rounded
Chassis made of steel and aluminum, which provide solidity and padded in a leather-
like material that is ex-
ceptionally cushy, and
each includes an input/
Chassis resonation lead into super-enhanced basses output port. The ear
cushions can be re-
moved for washing”
There is no plastic in any part of the headphone
CNET review
Noise cancelling effect without extra battery systems

16. Successful innovation III
Beats by Dr. Dre
Innovation and commercial success Key points
Successful innovation
Acquisition of online music service MOG for $16 million
Contract with Fiat to equip the US version of Fiat 500
Contract with Chrysler to equip its 300s luxury model
HTC bought 50.1% of the company for $309 million
Developing technology for smartphones with HTC
Building their own technology in HP computers
Highly adopted product by the music ―jet-set‖
Revenue of 350$ million, 150 employees

17. Unsuccessful innovation I
PWB Health Breastlight
Unsuccessful innovation
Creative key points
Self detection breast cancer device
Breast illumination to detect dark zones
Easy to use by user
Not medical expertise needed
Invention key points
Ergonomic form factor to facilitate light seal
High powerful LED optical design
Power management
Thermal management
Usability
Eye safety class 1 pass

18. Unsuccessful innovation II
PWB Health Breastlight
Innovation and commercial failures
Unsuccessful innovation
Identify an understand market need: The product was too revolutionary for the time
Find capable technology: The project was delayed several times due to unexpected
technology issues such as LED industry configuration, medical regulations, etc
Develop economic business model: The sales weren’t enough high to support the project
Successfully engage with relevant markets: It encountered the opposition of the breast
cancer organizations in the UK, mainly because they those organizations existence
was threatened by the product
Consequences
Only 1000 web sales in Q4 2008
Full launch in mass retail in 2009 did not meet expectations
Sold through Boots in the UK from 2009 onwards
Crises mid 2010 hit cash, the company holding the product to be sold to an
Emirates based health group
New owner trying to target the product into emerging markets

19. Thoughts for the future
Has innovation stopped driving growth?
Thoughts for the future
―[]...Peter Thiel, a founder of Paypal, says that innova- There will be more innovation—but it will not change the
tion in America is somewhere between dire straits and way the world works in the way electricity, internal-
dead. Engineers in all sorts of areas share similar feel- combustion engines, plumbing, petrochemicals and the
ings of disappointment. Furthermore, a small but grow- telephone have. Mr Cowen is more willing to imagine big
ing group of economists reckon that economic impact of technological gains ahead, but he thinks there are no
innovations of today may pale in comparison with those more low-hanging fruit. Turning terabytes of genomic
of the past…‖ knowledge into medical benefit is a lot harder than dis-
covering and mass producing antibiotics‖
―[]...Amid unconvincing appeals to the number of patents
filed and databases of ―innovations‖ put together quite
subjectively, Mr Cowen (George Mason University) cites
interesting work by Charles Jones, an economist at
Stanford University. In a 2002 paper Mr Jones studied
the contribution of different factors to growth in American
per-capita incomes in the period 1950-93. His work indi-
cated that some 80% of income growth was due to rising
educational attainment and greater ―research intensi-
ty‖ (the share of the workforce labouring in idea-
―[]….According to Robert Gordon, an economist at generating industries). Because neither factor can con-
Northwestern University, there were only a few truly fun- tinue growing ceaselessly, in the absence of some new
damental innovations—the ability to use power on a factor coming into play growth is likely to slow‖
large scale, to keep houses comfortable regardless of
outside temperature, to get from any A to any B, to talk By The Economist
to anyone you need to and that they have mostly been
made.

20. Reference list
Academic references
Anon, (2009). DIFFERENT MODES OF OPEN INNOVATION : A THEORETICAL FRAMEWORK AND. , 13(4), pp.615–636.
COOPER, R. G., & EDGETT, S. J. (2007). Generating breakthrough new product ideas: feeding the innovation funnel. [Ancaster, Ont.],
Product Developement Institute.
Cumming, B.S. (1998). Innovation overview and future challenges. , 1(1), pp.21–29.
Reference list
Gassmann, O. (2001). Multicultural Teams: Increasing Creativity and Innovation by Diversity. Creativity and Innovation Management, 10(2),
pp.88–95.
Kaufmann, A. & Tödtling, F. (2002). How effective is innovation support for SMEs? An analysis of the region of Upper Austria. Technovation,
22(3), pp.147–159.
Varis, M. & Littunen, H., (2010). Types of innovation, sources of information and performance in entrepreneurial SMEs. European Journal of
Innovation Management, 13(2), pp.128–154.
Other references
http://www.brainyquote.com
http://www.dailymail.co.uk/news/article-2286878/Detroit-declares-fiscal-emergency-Michigan-prepares-control-city.html
http://snapcreativity.com/
http://www.inc.com/paul-schoemaker/brilliant-failures/why-failure-is-the-foundation-of-innovation.html
http://www.fastcompany.com/3001234/how-dr-dres-burgeoning-headphones-company-stays-true-its-bass-thumping-roots
http://www.economist.com/news/briefing/21569381-idea-innovation-and-new-technology-have-stopped-driving-growth-getting-increasing
Grant King, Wideblue: Presentation of Innovation Commercialisation, DMEM Industrial project 2012, University of Strathclyde