Unit 5Operations Management

Innovation

Learning ObjectiveHL – To be explain the importance of research

and development for a businessHL – To be able to explain the role and

importance of intellectual property for a business

HL – Analyse the factors affecting innovation

Start with this

It is often said that R&D is the most important function of a business

Do you think this is the case? – why?

Do you know anyone who has introduced any innovations?

• Trevor Baylis [clockwork radio]• Tim Berners-Lee [inventor of www]• Head teacher – Saturday detentions!

In 1989 he invented the World Wide Web !

He invented the wind-up radio

Lewis Latimer

Garrett Morgan

Dr. Patricia E. Bath

Lonnie G. Johnson

Key Terms

Research & DevelopmentScientific research and

technical development of new products and

processes

InventionThe formulation or

discovery of new ideas for products or processes

InnovationThe practical

application of new inventions into

marketable products

Product InnovationNew, marketable

products Process InnovationNew methods of

manufacturing or service provision that offers important benefits Intellectual Property

Creations of the mind such as inventions, literary and

artistic works and symbols, names images, and designs

used in businessRights – legal rights over

possession and use

PatentPatents protect the

technical and functional aspects of products and

processes

CopyrightCopyright protects material, such as literature, art, music, sound recordings, films and

broadcasts.

TrademarkTrademarks protect

signs that can distinguish the goods and services of one trader from those of

another

Innovation Vs Invention

Read the article.

Discuss in small groups the key differences between innovation and invention.

Summarise in your notes.

The importance of R&D to business

• Competitive advantage over competitors• Customer loyalty• High, premium prices• Publicity• Lower costs

http://www.google.com.mx/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Ap216As3Mt-PnM&tbnid=HBIZuoATa0Xv_M:&ved=0CAUQjRw&url=http://www.ibbusinessandmanagement.com/56-innovation.html&ei=99UxUtqdDMPP2AW7mIGABA&bvm=bv.52109249,d.b2I&psig=AFQjCNGMEIgpCA8b8x3Z80bKxi6heuAWoA&ust=1379084146390268

Intellectual Property Rights

• Intangible• Only exist for as long as the law says they do• May be problems protecting intellectual

property

Copyright• Copyright protects creative or artistic works. You should only copy or use a

copyrighted work with the copyright owner's permission.

• You can copyright:– Literature, including novels, instruction manuals, computer programs,

song lyrics, newspaper articles and some types of database– Drama, including dance or mime– Music– Art, including paintings, engravings, photographs, sculptures, collages,

architecture, technical drawings, diagrams, maps and logos– Layouts used to publish a work, for a book– Recordings of a work, including sound and film– Broadcasts of a work

Patent• A patent protects new inventions and covers how things work, what they do, how

they do it, what they are made of and how they are made. It gives the owner the right to prevent others from making, using, importing or selling the invention without permission.

• Your invention must:– be new – have an inventive step that is not obvious to someone with knowledge and

experience in the subject – be capable of being made or used in some kind of industry

• not be:– a scientific or mathematical discovery, theory or method– a literary, dramatic, musical or artistic work– a way of performing a mental act, playing a game or doing business– the presentation of information, or some computer programs– an animal or plant variety – a method of medical treatment or diagnosis against public policy or morality

Patent – some examples

Trade mark• A trade mark protects any sign or symbol that allows

your customers to tell you apart from your competitors. You can register a name, logo, slogan, domain name, shape, colour or sound

• A trade mark must be:– distinctive for the goods and services you provide– not deceptive, or contrary to law or morality

When is an apple not an apple?• When it’s a logo under trademark!

• The Beatles lost their court challenge against Apple Computer over its iPod and iTunes download service. Sir Paul McCartney, Ringo Starr and the families of George Harrison and John Lennon control the Apple Corps label.

• They claimed the US firm broke a deal aimed at ensuring there would not be two Apples in the music industry.

Why is it important to have a recognisable trademark?

Anyway up cups

• Which intellectual property rights need to be protected?– Copyright– Design– Patent– Trademarks

Trevor Bayliss wind up radio & lights

Which intellectual property rights need to be protected?CopyrightDesignPatentTrademarks

Craig’s Johnston’s Pigs

• Which intellectual property rights need to be protected?– Copyright– Design– Patent– Trademarks

Zorin Post Pump

• Which intellectual property rights need to be protected?– Copyright– Design– Patent– Trademarks

Solio Solar Recharger

• Which intellectual property rights need to be protected?– Copyright– Design– Patent– Trade Marks

Factors affecting innovation• The nature of the industry• The R&D and innovation spending plans of competitors• Business expectations• The risk profile or the culture of the business• Government policy towards grants for businesses for R&D• Finance

I´m having a TOK moment

In agricultural biotechnology, the big theme is still the march of genetically modified crops across the world’s farmland. The most authoritative annual survey of GM planting, showed a 7% annual increase last year.

In light of the growth of the market for GM crops, how do you know whether society benefits from R&D into different types of products?

Discuss in small groups