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17
The factors that influence
innovation and the success
of innovation
This chapter explores the factors that influence innovation and the success
of innovation. In order to develop a clear understanding of the content for
this chapter, carefully examine the ‘Students learn about …’ and the ‘Students
learn to …’ statements relating to Outcome H3.1 in the New South Wales Design
and Technology Stage 6 Syllabus.
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17.1 Design and innovation
economy grew. Technological development
focused on the plant and equipment needed
for production.
Today, knowledge has replaced land, labour
and finance as the most important resource
for economic development. The leading
organisations of the future will be those that are
able to gain value from information; in other
words, that can innovate.
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Innovations are changes or improvements to
existing product design and manufacturing
processes. Innovative designers are involved
in change and the creation of opportunities
to bring about change in order to improve our
quality of life.
Two hundred years ago, we lived in an
agricultural environment, relying on land and
labour. During the Industrial Revolution of the
nineteenth century, machines were developed
to produce goods and services on a large scale.
Production was the key to economic success
– the more that was produced, the more the
17.2 Factors that contribute to success
or failure
There are many factors that contribute to
making an innovation successful. These include:
• timing
• availableandemergingtechnologies
• historicalandcultural,political,
economic and legal factors
• marketingstrategies.
An innovative design will not only be
aesthetically pleasing but will also function
better than its precursors and bring benefits to
the economy and culture into which it emerges.
The innovator will always be looking to find a
point of difference for their product, system or
environment.
Innovation is about taking new ideas or
improvements successfully through to the
marketplace. It concerns predicting and
satisfying customers’ needs and wants,
leading to improvements in people’s lives and
increased prosperity and well-being.
CASE STUDY 17.1
The Dyson Airblade™ Tap
An innovation from Dyson, the Dyson
Airblade™ Tap, allows hands to be dried at the
sink in 12 seconds. There is no need to go to
a separate drying area. As with his previous
designs, James Dyson has identified an
everyday problem and created a unique design
solution. In this case, he has further developed
his Airblade™ hand dryer. Moving to a
separate hand-drying area means that water is
often dripped on the floor, creating a potential
hazard. The Airblade™ Tap contains a hand
dryer that works by scraping water from hands
using a high-powered digital motor designed
by Dyson. It is one of the world’s smallest fully
integrated 1600-watt motors. It is the only hand
dryer motor powerful enough to draw up to 30
litres of air a second through a HEPA filter, and
then dry hands in 12 seconds.
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Timing
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In addition to function and aesthetics, another
factor that can impact on the success of
innovation is timing. The timing of when a
product emerges can determine its success or
failure. Manufacturers and retailers may wish
to stimulate demand for a new product, which
they will do through effective marketing. Most
fashion items, whether clothing or household
goods, are cleverly marketed to ensure a
demand is created. At the other end of the
scale, consumers may create the demand for
a product and this will often be in response to
trends. Innovators respond to consumer trends
in order to ensure success. Many products
are launched at particular times of the year.
Mother’s Day, Father’s Day and Christmas are
peak marketing times.
Figure 17.1 A Dyson
Airblade™ Tap
Air is forced through two continuous
apertures the width of an eyelash – creating
sheets of air travelling at 400 miles per hour. It
uses digital pulse technology – spinning 88 000
times a minute with the potential to suck in 37
litres of washroom air every second. A HEPA
filter purifies the air before blowing it onto
hands, so it is also hygienic. And it uses up
to 80 per cent less energy than conventional
warm-air hand dryers. It also eliminates the
need for paper towels, which generate landfill,
are expensive to restock and dispose of, and
can be wasteful and create mess. It offers
businesses and public venues the opportunity
to lower their running costs, provide a fast,
hygienic method of hand drying and reduce
their carbon footprint at the same time. With
improvements in the air multiplier technology,
the designers were able to make the fan 75 per
cent quieter.
James Dyson has designed and produced a
range of other innovative products, such as the
bladeless fan and the bagless vacuum cleaner,
that reflect his eye for good design and new
technology that works – performing better than
the competition. Dyson is known to support
working from a point of failure. He says: ‘failure
is a wonderful starting point because when
something fails you have then got to think and
experiment to overcome that failure’.
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Available and emerging
technologies
When the reasons for the development of new
products are discussed, two terms are often
used: ‘market pull’ and ‘technology push’.
The marketplace will often pull companies
to produce items that are demanded by the
consumer. At the same time, the development
of new technologies enables new products
to be pushed into the marketplace. Usually
there is a combination of both. Often new
technologies will enable a designer to improve
on an existing product that has already been
accepted by the marketplace.
The Global Positioning System (GPS) uses a
set of satellites to pinpoint the position of a GPS
device. This technology, an essential element
in the global information structure, has led to
the development of many new products. GPS
capability is now a feature of many products, from
mobile phones and wristwatches to bulldozers,
shipping containers and ATMs. GPS technology
boosts productivity in a range of industries –
farming, construction, mining, surveying, package
delivery and logistical chain management. The
continuing development of this technology has
enabled the entrepreneur to find new uses and
successfully bring them to the marketplace. You
may have a navigation system in your car that
operates using GPS, or you may have a wearable
device that will determine your position when you
are hiking, or you may have a find-my-phone app
– all products developed from GPS technology.
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Technologies can be divided into three
different categories – critical, enabling and
strategic. Critical technologies are those
that are used to develop products. Enabling
technologies are those that are needed to
make use of the critical technologies. Strategic
technologies are emerging technologies
that are crucial to further development and
new products – they become the critical
technologies of the future.
Historical and cultural factors
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The innovator must consider the historical
and cultural environment – the beliefs, values
and behaviours of the consumers who form
the target market. Companies actively work
with pressure groups such as animal liberation
activists, environmental groups, cultural
leaders and religious groups to ensure that
their products are appropriate, both socially
and environmentally. Today, consumers will
not accept washing detergents that are not
biodegradable, as society is concerned about
the environmental impact of products.
Political factors
Governments can also influence the success or
failure of innovation. The government plays a
significant role in trade agreements and policies.
Wind farming as a source of renewable energy
has developed in Australia because the state
and federal governments support sustainable
living. Likewise, government support (in the
form of funding) is provided for the development
of water-saving designs that respond to the
environmental concerns of the time.
Figure 17.2 Using a GPS device
Economic factors
ACTIVITY 17.1
1 Discuss the impact that GPS technology
has had on the motor vehicle industry.
2 Research the GPS technology used
in one of these industries: farming,
construction, mining, surveying,
package delivery or logistical chain
management.
A growing economy can be good for designers
of new products, as consumers are more
willing to spend money and try new ideas.
At the same time, financially secure buyers
expect quality and sophistication in their
products and will not accept goods that
do not meet expectations. A slowing economy
may also affect innovation, as products must
become more efficient.
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Legal factors
The governments of Australia legislate to
protect the rights of workers and consumers.
Labelling laws are in place to ensure
consumers are well informed. Industry must
be aware of these laws if its products are to
be successful. The Australian Tax Office (ATO,
which collects revenue for the Commonwealth
Government), trade agreements (regulating the
importing of resources or offshore production)
and the Australian Competition and Consumer
Commission (ACCC, which monitors the legality
of trade) are three examples of government-led
impacts on product development. Standards
Australia sets the standards for new and
existing products. Innovators must meet these
standards.
• people–potentialcustomers
• product–aesthetics,functionand
special features
• price–settingthepriceatan
appropriate level
• promotion–advertisingtheproduct
through a number of media, including
TV, radio, magazine advertisements
• packaging–providinginformation,
protection and presentation of the
product.
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legislate
to create, provide
or enact laws
product must satisfy consumer demands.
The marketing strategy explains how a business
plans to market a product. It involves evaluating
the market environment, determining the
demand, making decisions about supply of
the product and setting achievable goals. The
elements of marketing are often described as:
Marketing strategies
A product’s marketing strategy (which includes
the size of the market, the consumer demand
and the product promotion) can impact on
the success of an innovation. Even the best
product will be hard to sell if no one knows
about it. To be commercially successful, a
Each of these elements interacts with the
others in the marketing strategy. To be
successful, a new product must stand out from
its competitors. A good innovation will have
unique selling points.
ACTIVITY 17.2
Visit the CSIRO website (see http://cambridge.
edu.au/redirect/?id=138). This organisation
uses government funding to research and
develop new technologies. Explore the
section titled ‘Research divisions’ and select
three innovations that interest you. For each
innovation:
1 Describe the innovation. Ensure that
you clearly identify the underlying and
emerging technology.
2 Analyse the factors that impact on the
success or failure of that innovation.
3 Evaluate the impact of that innovation
on the individual, society and the
environment.
Figure 17.3 The CSIRO research hub in Melbourne
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17.3 Agencies that influence innovation
IP Australia
It is important that designers protect their
intellectual property. Inventions, trademarks,
original designs or practical applications of
ideas all need to be legally protected, as
intellectual developments are often the edge
that sets successful companies apart from their
less innovative competitors. Innovators go to
IP Australia to protect their designs. A range of
different types of protection exist for intellectual
property, including:
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There are many agencies that impact on
innovation. The innovator needs to be aware of
those that protect their designs, those that will
provide assistance in the development of the
innovation and those that regulate design and
production. Some of these were explained in
the previous chapter and more are explained
below. There may be others that could impact
on specific innovations.
Standards Australia
Standards Australia is recognised for its role in
maintaining standards and setting benchmarks
for industry, government and the Australian
community. It is a non-government organisation
that operates with the support of government.
The standards (published documents) are
used to define the criteria to ensure products,
services and systems operate reliably and
safely in the manner that is intended. If an
innovation meets these standards, it is more
likely to promote consumer confidence, global
competitiveness and also financial support
from investors. Thus it is advantageous to
innovators to ensure their products meet the
Australian Standards.
Standards are published documents
setting out specifications and procedures
designed to ensure products, services and
systems are safe, reliable and consistently
perform the way they were intended to.
They establish a common language which
defines quality and safety criteria.
Maintaining these Australian standards
in the development of innovations
provides consumer confidence, assists in
attracting investment and allows global
competitiveness – all key factors in the
success of a new product.
Source: Standards Australia,
http://www.standards.org.au/StandardsDevelopment/
What_is_a_Standard/Pages/default.aspx
• patents for new or improved products
or processes
• trademarks for letters, words, phrases,
sounds, smells, shapes, logos,
pictures, aspects of packaging or a
combination of these, to distinguish
the goods and services of one trader
from those of another
• designs for the shape or appearance of
manufactured goods
• copyright for original material in
literary, artistic, dramatic or musical
works, films, broadcasts, multimedia
and computer programs
• circuit layout rights for the threedimensional configuration of
electronic circuits in integrated circuit
products or layout designs
• plant breeder’s rights for new plant
varieties
• confidentiality/trade secrets including
know-how and other confidential or
proprietary information.
Source: GymLink, http://www.gymlink.com.au/gymlink.
php?content=fitness-business-ip-protection
An innovator must take formal steps to obtain
legal ownership of their idea by registering for
intellectual property protection. Through the
Patents Office at IP Australia, innovators can
apply for a patent on their design. The Patents
Office will decide whether or not the design
meets the legislative requirements. Registering
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Through the Small Business Council and
its website (see http://cambridge.edu.au/
redirect/?id=140), innovators can remain
informed of current issues and changes as well
as provide feedback to the government. Some
of the topics discussed in this forum include:
• reviews conducted by the Professional
Standards Board for Patent and Trade
Marks Attorneys
• information about government funding
for research and development
• an action plan for Japanese tourism,
to help address the downturn in the
Japanese tourism market
• information about innovations coming
onto the market
• information about relevant conferences,
such as the Association of Australian
Energy Users Conference.
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Figure 17.4 Durable
polymer bank notes are an
Australian innovation.
with IP Australia does not provide international
protection; this needs to be done separately.
The electrical powerboard is an example
that demonstrates the need to apply for
a patent. The design team at Kambrook
produced this innovation in 1971, but failed
to patent the powerboard concept. Today,
Kambrook has to share the market for this
highly successful product with many other
manufacturers.
Visit the IP Australia website (see
http://cambridge.edu.au/redirect/?id=139) for
more information.
Another government initiative to assist new
businesses is the highly successful Business
Entry Point (see http://cambridge.edu.au/
redirect/?id=141).
Australian Competition and
Consumer Commission
Small Business Council
In 2003, the Australian Government
established the Small Business Council
(SBC) to advise on the broad range of
issues that impact on small businesses. This
consultative body offers advice to government,
identifies factors that impact on the growth
and development of small businesses and
investigates possible solutions to problems
associated with this sector. Other organisations
that support small businesses are the National
Small Business Forum, the ACCC Small
Business Advisory Group, the Office of Small
Business and the Commissioner of Taxation’s
Small Business Consultative Group and Small
Business Advisory Group.
170
The Australian Competition and Consumer
Commission (ACCC) is an independent
authority that administers the Trade Practices
Act 1974. It works to protect consumer and
business rights while also monitoring industry
regulations, pricing and unauthorised anticompetitive behaviour.
Penalties are quite severe for those who
do not abide by the Trade Practices Act, so it
is important that all designers are aware of its
regulations.
Visit the ACCC website (see
http://cambridge.edu.au/redirect/?id=142) for
more information.
Australian Securities and
Investments Commission
The Australian Securities and Investments
Commission (ASIC) regulates financial
services, ensuring that trading is fair and
ethical. An innovator can receive advice from
ASIC about opening, running and closing
a company, as well as information about
licensing and compliance. The wide range of
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knowledge available through the ASIC website
will be useful to all people in business. The
site provides information about managed
investment schemes, scams, financial tips,
markets, financial reporting and publications,
among other things.
Visit the ASIC website (see http://cambridge.
edu.au/redirect/?id=143) for more information.
Australian Centre for
Innovation and International
Competitiveness
Spend 10 minutes exploring the ACIIC website,
then answer the following questions:
1 What is the role of ACIIC?
2 Explain why ACIIC believes innovation is
important to our economy.
3 Why would this agency be useful to an
innovator?
4 After reading about each of the
following, write one or two sentences
to explain the meaning of each of the
following concepts:
a globalisation
b knowledge economy
c connectivity
d futures.
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The Australian Centre for Innovation and
International Competitiveness (ACIIC)
addresses a broad range of issues related to
the development of effective strategies and
policies in science, technology and innovation
in the public and private sectors.
Visit the ACIIC website (see
http://cambridge.edu.au/redirect/?id=144) for
more information.
ACTIVITY 17.3
17.4 Entrepreneurial influence on design
and innovation
Entrepreneurial activity is concerned with the
creation, evaluation and exploitation of ideas –
making good ideas into a commercial success.
It involves recognising those ideas that have
potential for a successful commercial venture
and the ability to take those ideas through to
the creation of a successful product. There
is a certain amount of risk-taking involved
in entrepreneurial activity, including an
understanding of all the factors that can impact
on the success or failure of business and the
ability to manage these factors to achieve
a position of advantage. It is often stated
that entrepreneurs create their own futures,
rather than accepting the roles determined by
others. These people have particular personal
characteristics that foster the process of
entrepreneurial activity. They are usually:
•
•
•
•
•
•
•
•
•
•
•
•
•
passionateabouttheirwork
problem-solvers
innovativeintheuseoftechnologies
preparedtopersevere
risk-takers–fearlessaboutchanging
direction
visionary
unorthodox
willingtodelegate
goodmanagersoffinance,timeand
people
creative
energetic
optimistic
ethical.
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Some successful entrepreneurs who
possess many of the characteristics listed on
page 171 are:
• CraigWinkler–founderofthesoftware
company MYOB
• NabiSalehandPeterIrvine–developers
of the Gloria Jean’s franchise in Australia
• BrianDolling–inventorofaplasticwine
stopper
• BrunoSchiavi–creatorofthePocketSock
• GaryGale–inventorofaknittedplastic
shade fabric.
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ACTIVITY 17.4
Create a case profile on one of the above
entrepreneurs. Outline their entrepreneurial
activity, the characteristics they possess and
the product, system or environment that they
have developed.
Figure 17.5 Gary Gale’s invention – knitted plastic shade fabric
17.5 Legal and ethical issues
Entrepreneurs do not necessarily come up
with their own ideas. However, they are good
at spotting opportunities. They usually have
the abilities needed to make good ideas into
commercial successes. Thus they are important
to the innovator and inventor. Most innovators
will need investment in order to follow through
with their idea. The entrepreneur will have the
enthusiasm and skills needed to find investors
and convince them of the potential of an idea.
They will also have the necessary knowledge of
government regulations and legal requirements
relevant to starting a new business. They would
ensure that the idea is legally protected and all
trading and production activities meet required
standards.
172
ACTIVITY 17.5
Using the internet, explore a new innovation
that is compact and portable.
1 Describe the innovation and the
associated technologies.
2 Using your knowledge of the factors
that impact on innovation and
entrepreneurial activity, predict the
success or failure of this product.
3 Discuss the legal and ethical issues
related to the marketing of this product.
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Chapter summary
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• Not all innovations become commercial
successes. A number of factors can
impact on the success or failure of
an innovation. These include timing,
available and emerging technologies,
cultural, political, economic and legal
factors, and marketing strategy including
market size, demand and product
promotion.
• A variety of agencies can influence
the development, implementation and
acceptance of innovation. These include
Standards Australia, IP Australia, Small
Business Australia, the Australian
Competition and Consumer Commission,
and the Australian Centre for Innovation
and International Competitiveness.
• Entrepreneurial activity is concerned
with the creation, evaluation and
exploitation of ideas – making good
ideas into a successful product,
system or environment. It involves
recognising those ideas that have
the potential to become successful
commercial ventures, and the ability
to turn ideas into products. Those who
participate in this activity possess special
characteristics.
7 Identify and describe the characteristics
that an entrepreneur espouses. Discuss
how these may lead to successful
business ventures.
8 Explain how entrepreneurial activity
influences design and innovation.
9 Discuss the role of governments in the
success or failure of innovation.
10Describe the process you will go through
if you decide to obtain legal ownership of
your idea for your major design project
(MDP).
Extension tasks
1 Select two different innovations.
Compare and contrast the factors that
have impacted on their success or
failure.
2 Choose three agencies described in
this chapter. Explain how they may be
used to assist in the development of
innovation. Use examples to support
your answer.
Chapter summary tasks
1 Define innovation and outline the factors
that can impact on its success.
2 Describe why the factor of timing
impacts on the success of an innovation.
3 Describe the terms ‘market pull’ and
‘technology push’.
4 Evaluate the major considerations of
responsible designers.
5 Outline three categories into which
technologies can be divided.
6 Discuss how marketing strategy and
consumer demand impact on the
success of an innovation.
Figure 17.6
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