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Innovation & Commercialization - BTEC HND - Sem 2020/2021
Innovation & Commercialization - BTEC HND - Sem 2020/2021
Innovation & Commercialization - BTEC HND - Sem 2020/2021
1
Contents
Introduction.................................................................................................................................................3
Major findings.............................................................................................................................................3
1. Invention and innovation.................................................................................................................3
1.1. Highlight of Invention and innovation.....................................................................................3
1.2. Differences between inventions of technological breakthoughs, major innovations and
incremental innovations......................................................................................................................5
2. IBM’s sources of innovation............................................................................................................6
3. IBM’s demand pull and technological push.....................................................................................7
4. IBM’s vision, culture and leadership and innovation dilenma.........................................................9
4.1. Vision.......................................................................................................................................9
4.2. Leadership...............................................................................................................................9
4.3. Culture...................................................................................................................................10
4.4. Innovation dilenma................................................................................................................11
5. Analysing the competition between electric typewriter and electronic typewriter......................12
5.1. S-curve...................................................................................................................................12
5.2. IBM Selectric’s performance..................................................................................................12
5.3. 4Ps of innovation of IBM Selectric.........................................................................................13
5.4. IBM’s innovation funnel.........................................................................................................14
6. IBM Selectric’s success and frugal innovation...............................................................................15
6.1. The success of IBM Selectric..................................................................................................15
6.2. Frugal innovation...................................................................................................................15
Conclusion.................................................................................................................................................16
Reference list.............................................................................................................................................17
Introduction
Innovation plays an important role in business which brings more value to the
company. The typewriter is a useful invention in history. In this report, the author
mentions the history of the innovation of the typewriter and shows the differences
between invention and innovation, and analyzed the innovation of IBM’s typewriter.
The application of 4Ps innovation, innovation funnel, and frugal innovation clearly
explain why IBM succeed in the typewriter market.
Major findings
1. Invention and innovation
1.1. Highlight of Invention and innovation
Began the new ideas to create inventions, then improved and commercialized
applications of an invention defined for innovation (Schumpeter, 1939). And the table
shows the highlight of the invention and innovation of the manual typewriter in history,
from the new idea of the machine which typing characters to the innovation of model
typewriters had full functions.
As can be seen from the table, the first time the new idea for typewriter came from the
ideas for a machine can impress letters in the papers in the 16th century. Furthermore,
based on typewriters' first ideas, which inspired different innovators to develop them,
they became having full-function and commercializing products. They also realized the
demands of people at that time to transmit to document. Looked back to the 19th
century, the demand to keep documents by writing was high. Telegraphers, officers,
and liaisons or stenographers needed to gather information then transmited it by hand-
writing was time-consuming. The maximum of 30 words per minute by hand-writing was
recorded in 1853 (Utterback, 1996). So, the invention of typewriters and the innovation
of typewriters were necessary because of the convenience brought for people and the
profits for the firms.
Users
Customers roled play an important to the firms. They created direct profit for the
company and helped the company have more ideas to innovate their products. Although
user innovation did not create the technological breakthroughs, it adjusted the drawback
of the current typewriter for IBM to develop. In the context of IBM, most of its target
customers were officers, students, and governments who had requirements of the high
speed of typing, limit jam-free and ensured the secret document. The customers
experienced products and provided feedbacks, and perceived the advance in
typewriters. The innovators and firms understood the customer’s demands, so they
developed typewriters suitable for customers and increased the revenue through
commercialization, such as Sholes and Glidden typewriter.
Suppliers
Suppliers were directly provided the materials for IBM to produce its products. The
typewriter innovation is limited in the electromechanics field and expanded in print
technology (Beattie & Rahenkamp, 1981). It led suppliers to improve their materials
such as ribbon and carbon paper to advance printing quality. Ribbons which were the
main details of the typewriter, were made from cotton fabric. So, fabric ribbons were
good at absorbency ink capacity. However, the drawback of fabric ribbons was lint. It
made the quality of printing decrease and unclear characters. As a result, the supplier
researched and changed the material to make the carbon ribbon that can reuse, and
depending on the thickness of carbon paper. New technology was applied for elements
of Selectric typewriter and then solving problems for printing.
Demand pull
In the 20th century, typewriters' early invention was complicated with complex structure,
heavy design, and limitations, including keyboard, low-speed, and noise when typing.
However, the customer wanted to have a typewriter that was simpler, lighter, and easier
for users. It leads the firms to develop typewriters to serve the customer needs. The
engineer-designer Eliot Noyes, who design the Selectric typewriter, became lighter and
simpler for users (IBM.com, n.d). Furthermore, at that time, the middle of the 20th
century demanded typing documents higher because of business communication
development, recording research reports for people to improve speed typing instead of
hand-writing (IBM.com, n.d). IBM understood the customer needs, and the team
implemented project innovated typewriter had sales professionals who listened to
customer needs and working directly with engineers and designers.
Technological push
IBM got ideas for innovating its products from its talented engineers. Its team developed
the perfect version typewriter, which had a full-function for 7 years (IBM.com, n.d). With
IBM’s technology and its engineer's team, the typewriter market at that time witnessed
the radical innovation was IBM Selectric. IBM improved the speed, accuracy, and
flexibility for fast typing and productivity (IBM.com, n.d). There are three highlight points
in IBM’s technology to develop typewriters, including redesign the golf ball, changeable
type, and limited jam-free. It innovated IBM typewriter's design had typeball to replace
typebars. IBM’s engineer was Horace “Bud” Beattie, who push technology for the
typeball by re-design the mechanism of typeball (IBM.com, n.d). Especially jam-free
limited and having the possibility to change fonts in a document. This function for users
typing in different languages such as Hebrew, Thai, or Japanese (IBM.com, n.d). IBM
also used “carbon film” ribbons to replace inked fabric ribbons. However, it is easy for
users to read from the used ribbons, leading to the exposure of secret documents.
Besides, IBM added correcting function for the typewriter, which has known as
“correcting Selectrics.” According to USA Today (1986), 1960 witnessed IBM Selectric
domination because of radical innovation since the first original typewriter introduced by
Sholes-Remington in 1874 (IBM.com, n.d).
Therefore, technological push combined with the demand-pull model makes IBM a
successful business in the typewriter market, especially dominating the office typewriter
in 20 years (IBM.com, n.d).
4.2. Leadership
IBM’s leadership was based on talent human resources, coordination among each
department, and customer demand to shape company innovation and
commercialization. Firstly, talent human resources were an important role play in the
organizations. IBM wanted to become a pioneer in the technology market, so talented
employees were a core value. They deeply understood the techniques and technology.
In the 1960s, the team developed Selectric typewriters, including engineers, managers,
consultant industrial designers, and sale executives (IBM.com, n.d). They had many
experiences in their fields. Moreover, they coordinate together in seven years to
complete the task. The cooperation among the R&D department with the marketing and
sales department helped engineers innovate typewriters to suit the customer demands
and special radical innovation products. Finally, IBM focused on developing products'
functions to bring convenience for customers they can frequently use, such as applying
for work or study. Therefore, typewriters' success is made from the cooperation and
coordination in different departments of a company and each individual's function.
4.3. Culture
At IBM, most employees encourage THINK, which is also the company's culture
(IBM.com, n.d). From the motto “THINK” which improve to Basic beliefs to direct the
behavioral employees including radical thinking, the succeed of customer, innovation
and respect individual (Lombardo, 2017)
Radical thinking
The motto “THINK” was suitable for IBM's business activities because Watson realized
that the machine helped people work more productively. Additionally, Watson supposed
that machines' potential could open opportunities for the customers working in a
business to the applicant for their work (IBM.com, n.d). The technological breakthroughs
were innovated by the creation and innovate thinking of employees.
IBM based on customer demands to developed products and the high quality of
customer service frequently maintain the close-relationship with cutsomers. It lead the
company improve its reputation in the technology market. Back to 1960s, the quanlity of
sold-Selctric typewriter dominated the typewriter market in two decades, so it showed
the trust of customers for the IBM’s products (IBM.com)
Innovation
Innovation products and technology helped the company respond to the market
demands. So, it leads a company to significantly increasing the competitive advantage
to cope with others. The Selectric typewriter was iconic during the middle of the 20th
century because of improved machine characteristics and redesign, making radical
changes to different original typewriters.
Respect individual
The feature of IBM’s culture was built strong relationship each individual including firms,
suppliers, customers and employees. All of them contributed to the successful business,
they brought more value for the company.
Furthermore, the technology market context had a mixture between the old and the new
style. While the small business had less capital to invest in the business facilities, the
large organization used the modern machine to type documents (IBM.com). So, it led
the revenue of IBM from selling Selectric significantly decrease. At the same time, at the
end of the 20th century, the personal computer's appearance made the technology of
Selectric became old-fashioned. As a result, IBM had an innovation dilemma and did
not enter the electronic typewriter market, exit the typewriter market, and focus on
developing personal computers. At that time, the main reason for IBM not to enter the
electronic market was using a typewriter because the demands for a typewriter in the
1980s decreased significantly and changed to personal computers.
90%
50%
IBM collected the ideas to innovate the typewriters through its customers who were
using and experiencing its products directly. Before the Selectric typewriter, IBM spent
its resources to research and improved the old models . All of the ideas IBM gathered
from its engineers who were experts in the technology of machines. Furthermore,
suppliers also provided ideas for changing IBM’s products, such as film ribbon replaced
for fabric ribbon (Beattie & Rahenkamp, n.d). As can be said that, the ideas for IBM
advanced its typewriter from inside and outside of company
Developing ideas
IBM continued to filter the collected ideas based on market demands and its customer
demands. Moreover, It evaluated the potential of innovative ideas for its products to
achieve IBM’s objectives. Furthermore, officers, business customers, and students were
IBM’s target customers, so IBM would choose radical ideas to helps them became a
pioneer in the typewriter market.
Shipping products
Because of the limited resources, IBM had to choose the highest expected ideas that
brought high profits, and the innovation typewriter ensured the customer demands. The
new products had to check carefully before launching. IBM Selectric was the dynamic
product because of radical change in the structure of the model, details, and new
functions that still lacked in the old models.
Conclusion
In conclusion, in this research, the authors explained clearly the different types of
innovation and applying for the context. Moreover, analyzing and evaluating the
success of the IBM Selectric typewriter to became dominators in the typewriter
market during the 20th century.
Reference list
1. Wheeelwright S.C & Clark K. B., (1992), Revolutionizing Product Development,
The Free Press
2. Bhatti, Y. A., 2012. What is Frugal, What is Innovation? Towards a Theory of
Frugal Innovation. SSRN Electronic Journal
3. Brem, A. & Voigt, K. I., 2009. Integration of Market Pull and Technology Push
in the Corporate Front End Innovation Management—Insights from the
German Software Industry. Technovation, ScienceDirect
4. Day, G. S., 1998. What does It Mean to Be Market-Driven?. Business Strategy
Review,
5. Isoherranen, V. & Kess, P., 2011. Analysis of Strategy Focus vs. Market Share in
the Mobile Phone Case Business. Technology and Investment