Innovation

A. S. Shaja & K. Sudhakar Aerospace Engg. Dept, I.I.T. Bombay, Powai, Mumbai -76 shaja@aero.iitb.ac.in sudhakar@aero.iitb.ac.in

Idea
A form, look or appearance of a thing as opposed to its reality A conception existing in the mind A thought, a mental image, a notion An opinion, view or belief A groundless supposition; a fantasy A hazy perception A vague impression

Innovation
Latin word Innovare to renew or change In into + novus new Idea widely used by people and improves quality of life Distinguishing from invention Invention : conversion of cash into ideas Innovation : conversion of ideas into cash

Ten Peaks of Human Progress

Speech Fire Conquest of Animals Agriculture Social Organization Morality Tools Science Education Writing and Printing

Innovation Timeline : BC
7,000 : Pottery 6,000 : Weaving 5,000 : Irrigation Systems 4,000 : Copper and Bronze [Smelting and Tools] 3,500 : Wheel 3,000 : Abacus 2,800 : 12-month, 365-days calender 1,100 : Iron making 400 200 : Catapult : Screw and Levers

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Which among the following got discovered in 1300 AD A. Paper B. Mirrors and Lens C. Printing Press D. Gunpowder
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Innovation Timeline : AD
100 : Paper 600 : Heavy Plough 800 : Arabic Numerals 1,100 : Water and Wind Power 1,200 : Gunpowder 1,300 : Glass [Mirrors and Lenses] 1,325 : Spinning Wheels 1,350 : Mechanical Clocks 1,440 : Printing Press

The Innovation Trail

The Innovation Trail: From Steam Engine to Search Engine

Kondratieff Waves
A pattern characteristic of structural change In the modern world economy Length of about 60 years Key determinants Science, Technology, Education and Training Transport and Communication Energy Systems Universal and Cheap Key Factors

First Wave 1780s-1840s

(Industrial Revolution: Factory Production for Textiles) Science, technology, education and training Apprenticeship, learning by doing, dissenting academies, scientific societies Transport and communication Canals, carriage roads Energy systems Water power Universal and cheap key factors Cotton

Workers in Cotton Factory

Second Wave : 1840s-1890s

(Age of Steam Power and Railways) Science, technology, education and training Professional mechanical and civil engineers, institutes of technology, mass primary education Transport and communication Railways (iron) & telegraph Energy systems Steam Power Universal and cheap key factors Coal, iron

Steam Factory

Third Wave: 1890s-1940s

(Age of Steel and Electricity) Science, technology, education and training Industrial RD labs, chemicals and electrical national laboratories, standards laboratories Transport and communication Railways (steel), telephone Energy systems Electricity Universal and cheap key factors Steel

Telephone & Electric Generator

Fourth Wave: 1940s-1990s

(Age of Mass Production of Automobiles and Synthetic Materials) Science technology education and training Large scale industrial and government RD/ mass higher education Transport and communication Motor highways, radio and TV, airlines Energy systems Oil Universal and cheap key factors Oil, plastics

TV, Plastics, Cars & Airplanes

In the fifth wave (1990 - ?) which among the following shall be considered as the universal cheap 90% factor

A. Microelectronics B. Magnets C. Petrol D. Steel

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Fifth Wave: 1990s-?

(Age of Microelectronics and Computer Networks) Science technology education and training Data networks, RD global networks, lifetime education and training Transport communication Information highways, digital networks Energy systems Gas/Oil Universal and cheap key factors Microelectronics

Space, Bio & ICT

Sources of Innovation

Sources of Innovation Within the Industry

The unexpected Success, failure, outside event Innovation based on process need Weak link is evident in a particular process but people work around it instead of doing something about it Changes in industry or market structure Shift in the underlying foundation of the Industry or market structure

Sources of Innovation (cont) In societal environment

Demographics Changes in populations size, age, structure, composition, employment, level of education and income, literacy, double income parents, increase in life expectancy Changes in perception, mood and meaning Shift in societys general assumptions, attitudes and beliefs New Knowledge Advances in scientific and non-scientific knowledge Big possibility when advances in two different areas can be integrated to form a basis for a completely new product

Unexpected Occurrences
IBM Computers Tabulating and scientific applications 1933, developed accounting machines Banks did not buy Libraries did 1950, business showed interest for Payroll accounting

Process Needs
Accidents on narrow, winding roads Reflectors Newspapers Fast printing (2-3 hours) Linotype

Industry and Market Structure

Deregulation Airlines Telecom

Demographic Changes
By 1970, all developed countries knew Fall in birth rates Education explosion Huge increase beyond high school Non-availability of entry level workers Japanese took lead and developed Robotics

Red-and-yellow drummers: Auto drum bells designed for temples by RKS Metal Screens, Coimbatore

Changes in Perception
Higher life expectancy Even longer life Better quality of life Huge demand in Healthcare magazines Jogging equipment and apparel Health foods Indoor exercise equipment Young : Inside & Outside Olive Oil Hair Dye Home Loans

New Knowledge
Among history making innovations, those based on new knowledge rank very high Many emerge as superstars of entrepreneurship Key characteristics Long lead times High casualty rates Low predictability Multi-dimensional challenges to entrepreneurs Although, first operational computer appeared in 1946, all the necessary knowledge was available by 1918 Knowledge based innovation is more market dependent than any other kind of innovation

Times from Invention to Production

Year of Invention 1852 1887 1891 1907 1940 Technology Fluorescence Radar Zipper Television Transistor Time Lag 82 years 46 years 34 years 29 years 10 years

Means-Ends Framework

Means-Ends Framework

Old Means

Commodity

Product Improvement

New Means

Process Improvement

Breakthrough Innovation

Means-Ends Framework

Old Means

Commodity
CDs

Product Improvement
AudioBooks

New Means

Process Improvement
Polymers/Layer s

Breakthrough Innovation
iTunes

Exercise

Means-Ends Framework : Team#

Old Means

Commodity

Product Improvement

New Means

Process Improvement

Breakthrough Innovation

Sectors

1. Food 2. Clothing 3. Housing 4. Transportation 5. Education

6. Energy 7. Communication 8. Healthcare 9. Entertainment

Let us put this all together

Innovation Trail Key Determinants
Science, Technology, Education and Training Transport and Communication Energy Systems Universal and Cheap Key Factors

Sources of Innovation
o Within Industry
The Unexpected Process Based Change Market Structure

o Societal Environment
Demographic Changes Changes in Perception New Knowledge

Means End Framework