Dyson-The Apple of Appliances

1.0 Introduction

Being founded in 1991, Dyson, a British technology company has certified its
position as a market leader in innovative home appliance manufacturing industry
with its astonishing products. (Dyson Ltd: Company Profile - Bloomberg 2018;
Chapman 2018)

Dyson is well-known with its radical and iconic reinventions. It is the first inventor,
introducing bag-less vacuum cleaners, blade-less fan and hair-dryer et cetera.
(Pooler & Hollinger 2017)

Area of Technology Products

1. Floorcare Bag-less Vacuum Cleaners

Dyson 360 Eye Robot Vacuum

2. Environmental Control Dyson Purifier

Dyson Fan & Heater

Dyson Air-blade Hand Dryer

 Dyson CSYS Bright LED Desk Lamp

3. Personal Care Super-Sonic Hair Dryer

Figure 1: Main Product Range of Dyson

Source: (Dyson UK | Official Site 2018)
Dyson is operating in a highly competitive industry where the core competency is
research and development (R&D). Dyson has distinctly showed how innovation and
distinct manners to generating and adding value through design (reinventions) could
change the industry. (Our DNA | Dyson 2018) Hence, how does a “reinventing”
company encompass its success with its unique innovative strategies?

2.0 Strategic Vocabulary

2.1 Mission Statement of Dyson
“To connect with the life of people by creating technologically advanced utility
products for consumers by taking nature in considerations and to provide
encouragement for the design engineers for the next generation to be creative,
challenging and invent.” (Dyson, Efficient engineering)

A mission statement is a formal summary of organizational objectives and values.

This indicates the core function of business. (Chua 2016)

Core business of Dyson is focusing on efficient engineering to build quality products,

ensuring maximum benefits for consumers and taking considerations of
environmentally welfare. Mission statement also indicates that the ultimate purpose
of Dyson is to inspire and develop creative thinking among employees and more
importantly, next generation. James Dyson Foundation which encourages and
rewards young generations’ innovative thinking.

2.2 Vision Statement of Dyson

“To provide and maintain an integrated, cost-effective and sustain product
responsive to the needs of users, supporting growth of its consumer products
by promoting design and innovation through the product.” (Yang et al. 2016)

A vision statement is crucial, providing an organizational direction where it is an

aspirational goal where firm would like to achieve in the future. A vision statement
often decides decision-making and organizational behavior. (Geier n.d.)

Dyson’s vision indicates that the company clearly understand the importance of
innovation in production of beneficial products. Vision statement not only highlighted
company’s focus on products but also ground-breaking from traditional manners to
maximize human’s welfare.
3.0 Organizational Culture of Dyson
There are 4 core features in building an innovative culture. (Edgett 2014)

Figure: Innovation-Performance Framework

Source: Edgett 2014

Organizational culture is shaping employees’ attitudes, beliefs and thus influencing

their perceptions toward their works, the way they do their work and motivation.
(Heathfield 2018) According Innovation-Performance Framework, culture and
leadership are particularly crucial where ideally, they could be a catalyst; or
negatively, a barrier to employees’ innovation performance. (Wunker 2015) Thus, it
is crucial to foster an innovative culture, ensuring long-term business success.
Dyson has successfully built an innovative culture which encourages employees to
dream up inventions with the aim to solve the drudgery out of the everyday. (Pooler
& Hollinger 2017)

Culture is built through shared values, beliefs, attitudes and goals. Hence, culture is
highly influential by leaders, particularly founder who are having the authority and
ability to influence their subordinates. (Pozin 2017) Dyson is a private company
where culture flows directly from founder’s, James Dyson’s personality. In other
words, James Dyson is critically influential towards Dyson’s culture.
Theoretically, it is crucial to empower employees to think creatively with the aim to
build innovative culture. This particularly means that authorization to employees in
terms of space and resources. More importantly, employees should be empowered
to fail! (Solomon 2018)

“Failure is a wonderful starting point!”-James Dyson

James Dyson has built 5,127 prototypes for his cyclone vacuum cleaner. In other
words, he has failed 5,126 times for success. (Goodman 2012) Thus, he clearly
understands the importance of failure in inventions. He never fears of getting things
wrong. Employees are empowered to fail. They are encouraged to fail and learn from
each failure which is contributing to the future success. In fact, a blame-free culture
was built in Dyson where they know they are free from repercussions. (Keeping Our
Secrets, Secret. Protecting Dyson. And Our People. - Dyson Careers 2018)

During his invention, he was given fully support from his family: fiscally and mentally,
inspired him the importance of support in inventions which then led to a “Can-Do”
culture where employees are given optimum freedom. (Shambler 2016) This does
not only create environment where employees are confident to speak out but also
build strong sense of ownerships among employees and organization. (Coleman
2013)

It is important to acknowledge and reward employees for being innovative. (Wunker

2015) This is because people normally learn through consequences, either positively
or negatively. Thus, it is crucial to motivate employees to be creative. A monthly
newsletter which enlisted employees’ achievements and individual contributions will
be distributed among Dyson to fuel employees’ motivation. This is not only a
rewarding system but also signalling Dyson’s commitment to employees where their
innovations are highly valued.

James Dyson clearly understands that culture is learned through interaction. Thus, to
foster intrapreneurs who own the entrepreneurial mind-set, leveraging company
assets for organizational interest, James Dyson Foundation which encourage people
to think differently, make mistakes and explore their engineering potential was
founded. Dyson’s innovative culture is carried forward in this foundation; not only
encourages innovation but easing new employees’ process to learn the culture.

Generally, Dyson is performing particularly well in encouragement of innovation,

comparing to its competitors. For instance, Samsung who pursue seniority-oriented
culture which reflects national culture would negatively impact motivation of junior
employees to express their ideas and opinions, deterring encouragement of
innovation. (Dudovskiy 2017) 

4.0 New Product Development (NPD) of Dyson

Instead of traditional rigid sequential approach, Dyson is adopting a holistic approach
in NPD.

Figure: Rugby Approach, Holistic Approach in NPD

Source: Coventry University (2018)

Looking at the fact that Dyson’s culture which is encouraging everyone to think
creatively, indicating a cross-functional culture. Despite, office structures are open,
enhancing communication, particularly in term of speed. (Mahoney 2008) This is
because teamwork between different types and teams of engineers is essential. For
instance, development of Dyson Supersonic Hair-Dryer involves not only design,
electrical and test engineers to change heating structure but also acoustic and
aerodynamics engineers to optimise flow of air, minimizing noise and vibration.
(WHAT IS THE DESIGN PROCESS? 2018)

Tasks in NPD team of Dyson are divided into two departments: NPI Department, the
idea generator and NPD Department where detailed design were made.
 Team/ Position Role
1. R&D Team (Design Generation of new ideas and concepts
Engineers)
2. Scientists Testing and developing ideas and technologies
3. Engineers Responsible for actual detailed design of machines
Figure: New Product Development of Dyson

Source: (Dyson Innovation Yields Revolutionary Products n.d.)

4.1 New Product Development Process of Dyson

Dyson is adopting Stage-Gate Model in its NPD where NPD is a step-by-step series
of analysation and evaluation of prototypes. (WHAT IS THE DESIGN PROCESS?
2018) Stage-Gate Model breaks complex and chaotic processes into smaller and
simpler stages, easing product development and management. (Elmansy n.d.) Each
phase is assigned with particular task, assisting or lubricating the next stage. Stage-
Gate Model is popular due to its cross-functional view of NPD. (The Stage-Gate®
Product Innovation Process | Stage-Gate International 2018)

Figure: Stage-Gate Innovation Model

Source: Interspin 2015

Every Dyson project consists of a 5-Step Process.

Step NDP Process of Dyson

1 Plan: Construction of Project Milestone
2 Design: Sharing of ideas and sketching rough layouts
3 Build: 3D Prototypes are built, assembling with motors and electronics,
forming fully function machines
4 Test: Evaluation of prototypes (Function). When needed, redesign and
rebuild will take place.
5 Analyse: Product manufacturing and real product testing will take place.
Figure: New Product Development Process of Dyson
Source: (WHAT IS THE DESIGN PROCESS? 2018)

Product development of Dyson begins with establishment of new ideas, deriving

from “frustration”. (Dowling 2013) These ideas will then be transformed into 3D
model, clarifying designers’ thinking and refining their ideas. For better evaluation of
ideas, prototypes are built rapidly from design data, following with “trial-and-error”,
optimizing the machine. Last but not the least, enormous amount of testing, ensuring
product functionality, quality and durability. (WHAT IS THE DESIGN PROCESS?
2018)

(Please refer appendix 1 for a detailed NPD of Dyson’s Airblade Hand-Dryer)

5.0 Innovation Strategy of Dyson

Dyson who is well-known with its radical reinventions is adopting the S-Curve Model
in its innovation process. The S-Curve model highlights the life cycle of everything,
either a product, business model or even an industry. (Enalls 2017)

Figure: The S Curve Model of Innovation

Source: Enalls 2017

According S-Curve, market shares and revenue will gradually increase over the
phases until the maturity stage when product(s) is adopted completely by the market
and is approaching physical limit. (The Innovation S-Curve 2015) Traditional
approach during this stage is investing in production optimization, lowering costs, to
stay competitive. However, competition is critically fierce with this approach. Thus,
this led to occurrence of a new S-Curve, where discontinuity takes place.

Figure: The S Curve Model of Innovation

Source: (The Innovation S-Curve 2015)

Radical innovation arises during discontinuity where existing idea was destroyed by
newly introduced sciences or technology. (Hopp et al 2018) In this case, Dyson who
is reinventing mundane products into extraordinary and has changed the entire
industry is the best example of discontinuity stage. (Innovation The Dyson Way
2016) Signature products of Dyson are vacuum cleaner, heater, fan and hair-dryer
which are at their maturity stage for decades. With highly creative culture, Dyson has
radically evolved these products and astonishingly oscillate the industry. (Pooler &
Hollinger 2017; Berger 2012)

Another Dyson’s strategy that must be highlighted is the “reuse” and “evolution” of
old ideas where Dyson took its expertise from vacuum cleaners to create a new
successful redesign into Airblade-Hand-Dryer. By doing so, Dyson has significantly
reduced its R&D time. (Dowling 2013)

Despite, a set of measuring stick: “ACCESS FM” was set, forming product
specification, ensuring feasibility of new products. (WHAT IS THE DESIGN
PROCESS? 2018)
Figure: ACCESS FM, Guideline of Dyson in Product Development

Source: (WHAT IS THE DESIGN PROCESS? 2018)

Dyson utilizes digital product development in R&D which leverage design geometry
for rapid prototyping. Despite, with the usage of NX (Next-generation-digital-product-
development-software-system), Dyson can build 3D models with lower ambiguity
and higher efficiency comparing to 2D views. 3D prototypes are cardboard models
which are cheaper and pliable, highly efficient in terms of fiscal and time costs.
(Dyson Innovation Yields Revolutionary Products n.d.)

Figure: Cardboard Model of Dyson’s Vacuum Cleaner

Source: (Dyson UK | Official Site 2018)

Nevertheless, Dyson’s flat-organizational structure which is more efficient in

management, is also contributing to its NPD.
Figure: Organizational Structure of Dyson

Source: (Dyson UK | Official Site 2018)

6.0 Risk Taking & Strategic Risk Management of Dyson

“Being an inventor, you must be persistent and not be afraid to take risks!”—
James Dyson (Shambler 2016)

Risk taking is crucial for an innovative organization because innovation itself is a

gamble where you will never know which one will work. The results could be
succeeding, sputter or splatter. This can be seen from the fact where Dyson spent
millions of dollars and 18 years, inventing 360-Eye Robot Vacuum Cleaner; 4 years
and $72mil on hair-dryer.

Dyson is taking risks every day and fortunately, majority of the decisions are paid
with flourish results.

Instead of experience technical expertise, Dyson is employing fresh-graduates

because according James Dyson, “fresh-grads” have no fear of failure where they’re
courage enough to take risk and portray their ideas, meeting company’s culture. This
is particularly opposing other companies where experienced expertise are core
demand.

Dyson see risks as opportunities which again is opposing big companies’ core value.
Dyson always take those risks where big firms are avoiding and make it into
miracles. For instance, in early 2008s when every firms were cutting their R&D costs
to address the global economic crisis, Dyson took a converse decision to increase
their R&D expenditure with the aim and confidence to create competitive advantage
when economy recovered. (McQueen 2018) Despite, Dyson’s “guts” have
blossomed its market share in Australia. Instead engagement in marketing battle
which is safe but generate incremental results, Dyson took a particularly risky step to
eliminate all ads budget and focused on cordless cleaners. Through deliberations,
Dyson successfully deliver messages to consumers which differentiate them from
others. (McQueen 2018)

Dyson does not rely much on data. Although they did market research but they do
not rely too much on it because they clearly hold the mindset that if you wait until a
right path is 100% certain, you will miss the opportunity. (McQueen 2018) In fact,
Dyson’s best-seller: bag-less vacuum cleaner is a product of “guts”! This is because
market research showed that bag-less vacuum cleaner is not what the market wants
during 90s. Hence, instead of meeting the demand, James Dyson decided to create
demand which is a very risky decision.

Of course, every coin has two sides: not every risk taken by Dyson work. Dyson
ceased their washing machine which has shorter wash cycles since the product is
not making any money. (Eng 2017)

In the future, risk taking is still a crucial part in Dyson where its focus will be on
robotics and Artificial Intelligence (AI). Dyson has invested £2bn on electric cars
which is expected to be launched by 2020. With the aspiration to be a major
departure from existing cars, Dyson has been putting tons of resources and efforts
on it. One of the biggest risk is that Dyson who has no experience and limited
knowledge on car manufacturing is not cooperating with any existing manufacturers.
Despite, instead of existing lithium-ion batteries, Dyson is striving to develop “solid-
state” batteries which theoretically are safer and denser. This “solid-state” battery
technology is expected to be utilised in its electric car project. Billions of dollars,
tonnes of times and resources has been used to develop this project which is
associated with particularly high risks.

Enterprise Risk Management (ERM) is a popular risk management tool, minimizing

organizational risks through the process of planning, manging, leading and
controlling. (Rouse 2014)
Figure: Enterprise risk management (ERM)

Source: (Rouse 2014)

ERM comprises 4 core aspects: financial, strategic and operational risks, along with
accidental risks. (Frigo and Læssøe 2012) Each process of a certain project is
associated with risks and ERM is facilitating strategic mapping to enhance
accountability and flexibility, thus minimizing risks associated. (Rouse 2014)

Recently, external uncertainties have fuelled organizations’ motivation and interest

on risk management. Companies could enhance their performance and
competitiveness through development of comprehensive risk management. Distinct
from past decades, competitions do not only surround on speed and creativity but
also uncertainties that will take over competitive advantages. Thus, Dyson is highly
recommended to adopt ERM, enhancing risk management .

7.0 Conclusion and Recommendation

In conclusion, Dyson is a pioneer in creativity where it is mastering crucial rules of
innovation and utilising it in building competitive advantage. Dyson is utilising every
resource and is highly flexible with its NPD when enhances its innovations. The most
important part that must be highlighted is Dyson’s special organizational culture
which is highly motivating employees to take risks and being innovative.

Dyson is a pioneer in risk taking and this has generated tonnes of opportunities and
profits for the organization. However, lesson from Dyson’s washing machine which is
not profitable indicated that Dyson should further enhance its decision making by not
only acting with “guts”. Hence, intelligent strategic risk management should be a
consideration of Dyson.
Another weakness of Dyson that should be highlighted is that its painstaking
development process which mainly because Dyson’s focus in on quality but not time
scale. It is great for a firm to have minimal pressure on timescale for quality products.
However, at some point of time, this could be an issue. For instance, Dyson spent 15
years on motor innovation and 18 years on robot vacuum cleaner
.
One of the most challenging endeavour is to build sustainable innovation. Thus, to
purse sustainable innovation, Dyson should continue its organizational culture which
foster intrapreneurial who has the mindset of entrepreneurial and is able to leverage
resources for organizational interest. Despite, James Dyson’s Foundation should be
promoted as well to foster innovation and creativity among next generation.

8.0 Reflection
With this assignment, I was given the opportunity to construct a deeper study on
Dyson company, particularly in terms of innovation and invention. Undoubtedly,
Dyson, the luminous inventor has astoundingly improved my perception towards
“creativity” and “innovation”. This is highly precious to me who has the ambition to
become an entrepreneur. The most remarkable part which influence me was how
James Dyson, the founder of Dyson built the creative organizational culture. It is
particularly crucial for a firm to build an innovative culture. Astonishingly, James
Dyson understands the importance of “freedom” in encouraging creativity among his
employees; they were given the most authority and were encouraged to fail. More
importantly, Dyson emphasizes pressure on product quality where ordinary firms will
be focusing on timescale. And, that is the reason why I was inspired by James
Dyson.

In a nutshell, this assignment provided me the opportunity to study the complexity of

harnessing creativity especially in building an innovative culture which encourage
everyone to be creative. It was far more complicated than I imagined before starting
this task. There are numerous theories and models for innovative culture, innovation
strategy and NPD. Hence, with the appliance of theories and models in the
assignment, it gave me a better chance to understand the best fit model or theory
based on different situations, aims et cetera.