Innovation Eur Ing Barry Saunders BSc MIET CEng

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The paper clip

• Individually think of as many different uses for a paperclip as possible in 2 minutes

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1. Discover the different stages of innovation2. Apply the innovation stages to the task3. Apply the theories to a practical task

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• Research the company – What does the company do?

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What does Eurocom do?• Imagineering• Project Finance and Grants• Software Design• Software Development• Market Testing• Proof of Concept• Implementation• Deployment• Auditing• Re-tasking• Re-working

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Innovation and Cool Stuff?

Metal Detecting Sandals

USB Head MassagerNovel Toilet Cleaner Monocycle Motorbike

Portable Breathalyser New Social Networks

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The paper clip

• In groups of two add at least 10 other items to the list in 2 minutes

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The paper clip

• In groups of 4-6 add at least 10 other items to the list in 2 minutes

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The Idea – Eureka!The “Good Idea” Test1. Does it solve a problem or pain?2. Is it novel?3. Can you find it anywhere else?4. Do you think about it almost every day?5. Can you prove it works?6. If you showed it to 10 people would >1 person want one?7. Did you really show it to 10 people?8. Do you know how to find all other people that want it?9. Does it have a Business Model?10. Can it be developed, refined and marketed?

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The Idea – Concept Testing• Is there a comparable competitive• SEO Split Testing• Patent Search • Trademark Search• Consumer Panels (B2B, B2C)• Focus Groups• Build one and test it• Sell one to stranger• Quantative Research• Qualitative Research

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Demonstrators Some things are actually going pretty

well

• Proves basic idea works!

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Everyone thinks it’s a good idea, I believe in it and I want to do this! What happens next?

The Idea – Taking It Forward

• Cost Benefit Analysis (CBA)• Rapid Development – Quicker, Expensive• Organic Development – Slower, Cheaper• Risk Assessment• What are the “Project Bumps”?

0 1 2 3 4 5 6 7 8£0

£500£1,000£1,500£2,000£2,500£3,000£3,500£4,000£4,500

High Value Item or Ser-vice

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The paper clip

• In your groups decide which 2 or 3 innovative paperclip ideas you should take forward.

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Idea Mapping and Markets

LEVEL 1 IDEA

LEVEL 2 IDEA

LEVEL 2 IDEA

EXAMPLE

NONEXAMPLE

Accounting and LegalBusiness ServicesConstructionFinanceHealth CareInformation TechnologyManufacturingMediaFood and BeverageRetail

?

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The Long Tail

Already Out There

Doesn’t Exist

Nobody Wants it

OPPORTUNITIES

RISK

COMPETITION

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The Business ModelHow does it make money?

Example Model Replicable

Sales Services (eg. Property) Lawyer: 0.15% of SaleAgent: 1.5% of Sale

Yes

Management Services (eg. Property) Agent : 10% of rent receivedTenant Setup Fee: £80

Yes

Investment (eg. Property) % yields on invested amount Yes

Commodity Products (eg. Widgets) Wholesale: 20% value of goodsRetail: 40% value of goods

Yes

Bespoke Products (eg. Birthday Cakes) Money ∞ Package of Hours Unlikely

Consulting Services Money ∞ Hours Possibly

If it has no business model:• You probably have a hobby!• You may need some help!

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Synergy: More effective use of resources• Similar goals• Complimentary skills• Common development/components• Common sales channels• “Venn Diagram” Vision

Collaboration

CRMSYSTEM

QUALITY CONTROL SYSTEM

CLIENT MANAGEMENT

SECTOR KNOWLEDGE

DEVELOPER MARKETEER

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Structure Arrangements• Legal setup (Sole Trader, Ltd, LLP)• Dynamic Share Allocations• Funds Committed• Founder Loans• Time Committed• Sell Opportunities• Constantly Reviewed• Exit Strategies

Who gets what?

Steve

Dave

Joe

Sally

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The paper clip

• Which idea would you take forward on this basis?

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Scaling Up Ideas

The rewards can be high!Assume “reach” is 100,000 units

Income based on % of target market and margin

% Units £ margin per unit£10 £20 £30 £40 £50

1 1,000 £10,000 £20,000 £30,000 £40,000 £50,000

2 2,000 £20,000 £40,000 £60,000 £80,000 £100,000

5 5,000 £50,000 £100,000 £150,000 £200,000 £250,000

10 10,000 £100,000 £200,000 £300,000 £400,000 £500,000

20 20,000 £200,000 £400,000 £600,000 £800,000 £1,000,000

25 25,000 £250,000 £500,000 £750,000 £1,000,000 £1,250,000

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A Case Study – Professional Audio

BASS GUITAR

EFFECTS PEDALS

AMPLIFIER

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A Case Study – Professional Audio

BASS GUITAR

MULTIPLE EFFECTS PEDALSAMPLIFIER

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A Case Study – Professional Audio

BASS GUITAR

MULTIPLE EFFECTS PEDALS

AMPLIFIER

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The Prototype – Version 1Splitter - Test the basic idea

• Produces multiple versions of same signal• Allows connection to each effects unit• Allows return from effects path• True Bypass to disable the unit

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The Prototype – Version 2Splitter - Refine the basic idea

• PCB layout• Lower noise improvements• Minimise component costs• Larger case to allow extra channels

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The Prototype – Extending the IdeaCombiner – Test the basic idea

• Mixes channels back to main path• Individual Mute per channel• Possible foot-pedal operation• Plugs into return on splitter

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Live Demonstration

• Eg. 1 - Frequency Loss• Eg. 2 - Maintaining Clarity• Eg. 3 - Examples

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Innovation task

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Summary

• Write down three things you have learnt in this lesson

• Write down one thing you would like to know more about

• Write down one product which has inspired you

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•Proof of Concept•Feasibility Studies•Prototyping•Technical Auditing•Systems Design•Software Design•Hardware Design•Risk Assessment•Product Development•Internet Programming•Technical Proposals•Troubleshooting•Project Finance•Project Partnering

Turning ideas into realityEurocom Research