MODULE 6

Broad Context of Design

IP issues must be considered in the ___ stages.

Set Specifications, Generate Concepts, Evaluate/Select Concepts

Patents

Allows patent holder to make/sell/use new inventions and for improvements of existing inventions

Trademarks

Words/symbols/logos/designs that distinguish the products of one company or organization from others

Trade Secrets

Formulations/processes/practices that are not well known outside a company and are difficult to determine

Copyrights

Provide protection to the creators of literary, artistic, dramatic, and musical works (including computer programs)

Industrial Design Registration

Visual features of a product, including elements such as shape, contours, patterns, and ornamentations

Integrated circuit topographies

Arrangement of the electronic circuits in integrated circuit products or designs

Criteria for patentability

1. Novelty: you must be the original inventor of your idea and the idea must be the first of its kind in the world

2. Utility: a valid patent can only be obtained for something that works, and that has a useful function

3. Ingenuity (non-obviousness): the invention must be a development/improvement that would not have been obvious beforehand to workers of average skill in the technology involved

What cannot be protected by an industrial design registration?

• The function of an article

• A principle of construction, or how an article is built

• The materials used in the construction of an article

• An idea

What are some general rules for patents (not criteria)

• Government issued and time limited.

• Details of invention are made public

• In Canada, the protection offered by a patent can last up to a maximum of 20 years from the date the patent application is filed

• You must apply for patent rights in other countries separately

What are some general rules for industrial design registration

• Details are made public

• Gives exclusive rights for ten years from the date of registration

• Like patents, protection in other countries can only be obtained by filing in each country separately

Highest success rates have been found for products that…

…adapt existing technology to new applications (solution spotting), followed by developing products to satisfy needs that arise through random occurrences ie. natural disasters (random events), identifying what people want to buy (market research), then identifying the need before developing the product (need spotting)

Lowest success rates have been found for products that…

…copy what other companies are doing (trend following), followed by designing a product based on a creative thought that does not focus on the market (mental invention)

Some other specific characteristics that served as predictors of new product success were that the products:

• Were moderately new to the market

• Were based on proven technology

• Saved customers money

• Met customers’ needs

• Supported the way customers were already doing things

Rule 1 of Innovation

Adopt a Disruptive Approach

Disruptive Innovation (Rule 1)

Reaches a broader segment of the population by serving less-skilled or less-wealthy users. It tends to focus on simplicity and limited functionality at low cost. It can then go on to displace existing technologies and companies.

Rule 2 of Innovation

Use Appropriate Product Integration

Integrated products (Rule 2)

Specialized products that are not designed to work with similar products from other manufacturers

Non-integrated products (Rule 2)

Products that use interfaces and components that are standardized across an industry

Why Integrated? (Rule 2)

• Fewer design constraints (fewer standardized components to interface with

• Allows designers to develop more creative ideas

• Recommended in emerging markets as they allow companies to differentiate themselves from others on the basis of performance

Why Non-Integrated? (Rule 2)

• If performance of products currently available in the market sufficiently meet customers’ demands, nonintegrated products are recommended

• Allows companies to move more quickly in developing and improving products by using readily-available, industry-standard parts

• Companies can also out-source work, as well as incrementally improve subsystems without redesigning entire products

Rule 3 of Innovation

Leverage the Right Capabilities

Two common misconceptions about money (Rule 3)

1. Having great amounts of money available is an advantage for a new business as this allows a company to follow a flawed course of action for too long (less financial resources = new ventures are forced to identify a profitable strategy sooner)

2. Companies should expect to suffer large losses for extended periods of time before becoming profitable. Make sure it works and earns money first (even if its not as much), then grow it.

Rule 4 of Innovation

Disrupt Competitors, Not Customers

Desc of Rule 4

Customers should not have to adapt to the new technology or learn new ways of doin things. Disruption should be to the market and competitors by taking a portion of the market.

Barriers to the Market

• Money

• Convincing stores to stock product for sale

Business and Marketing Plan

• Outline goals for product

• Present team working behind the product to make it a success

• Show market analysis to demonstrate there is a need/demand for product

• Outline financial, marketing, operation, and management plan

One SKU Vendor

Supplier/company that sells only one product/type of item (SKU = Stock Keeping Unit)

Triple Bottom Line

Combines societal, economic, and environmental concerns into business decision making

How is TBL implemented

Triple Bottom Line Accounting - reporting TBL performance