INVENTION, INNOVATION AND DESIGN

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INVENTION, INNOVATION AND DESIGN
Invention A new way of making a product (e.g.
walkman) or process (e.g. spray
painting). Inventions usually come from company
research programmes and not the lone inventor
(even though one of the most successful modern
inventions, the cyclonic vacuum cleaner come from
this later method). Innovation Making an
invention into a commercially viable and
profitable product. This requires business skill
as well as inventive talent. Nowadays this is
vital if firms are to keep their portfolio up to
date in the face of stiff competition and
shortening life cycles. Design This includes
appearance, shape, function, quality, durability,
etc. CAD has had a huge impact, why? Every
designer considers 3 main factors.

• Invention and innovation allows in
• Marketing Premium pricing, differentiation, etc.
• Finance Efficiency, improved ratios, etc.
• People Specialists, research teams, etc.
• Production Productivity, reduced development
  times, etc.

Aesthetics
Economy of manufacture
Function quality
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RESEARCH DEVELOPMENT

• Research Inquiry and discovery of new ideas.
• Development Involves changing ideas into
  commercial products
• The pace of technological change, coupled with
  rising wants and spending power have forced firms
  to respond by investing in R D.
• Nowadays firms need to create new products not
  just to grow but to survive.
• R D is very expensive so is mainly carried out
  by large companies.
• It can act as a barrier to entry or Economy of
  Scale.
• R D is also done by Universities and scientific
  research centres.

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CRITICAL PATH ANALYSIS (CPA)

• This is a technique which allows a business to
  estimate the minimum time needed to complete a
  complex task by identifying which jobs can be
  performed simultaneously, when resources are
  needed and which tasks may cause delays in the
  operation.
• It is a key feature of time based management and
  should help businesses improve their efficiency
  with regard to time and resources.
• Can you think of any simple examples of CPA?
• Nodes are circles which contain a wealth of
  information including the node number, the
  Earliest Start Time (EST) and the Latest
  Finishing Time (LFT). These will all be explained
  later.
• Arrows show the order in which tasks take place,
  the activity is shown on the top (usually a
  letter) and the duration of the activity is on
  the bottom.
• The total float is the spare time which is
  available. The formula for Total Float is
• LFT (this activity) Duration EST (this
  activity) Total Float
• We can now work through some simple examples
• P 121 Hall Ed 1
• P371 e.g. 2 Marcouse

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APPLICATION OF ICT WITHIN AND BETWEEN
ORGANISATIONS
Impact on Stock Control Stock is held on
databases, additions and used/sold stock is
automatically and immediately accounted for. Bar
coding and scanning can automatically re-order
when stock gets to a certain level. EDI is a
permanent link between computers on different
sites. It can be therefore used for automatic
reordering. For example Heinz link with Tesco.
What are the benefits to Tesco and to Heinz of
using EDI?
Impact on Production (CAD/CAM) CAD Designs can
be produced altered and stored for very little
cost. It allows customers needs to be satisfied.
Firms can therefore produce to order, satisfying
customers and the requirements of JIT
production. CAM Integrated software capable of
supplying instructions to computer aided
machines. A CAD/CAM production site should be
quick efficient and flexible, allowing for
flexible specialisation. MRP11 A software
package which models an entire production
process, stating labour, material and time
requirements. It is very useful for contingency
and JIT planning.

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MAKING THE LOCATION DECISION
Fixed cost associated with location Site costs
Land can vary across the regions, however short
term gains from cheaper sites must be balanced
against the longer term cost of lower sales, poor
infrastructure, etc. Availability and cost of
enterprise personnel. Regional incentives
Local, central and European government help.
Potential revenue associated with a location. A
site can add value e.g. made in Germany adds
value to cars. Convenience for customers, this
is why Corner shops survive despite cheaper
competitors and higher rents in shopping centres
can be justified by higher sales. The land must
be fit for purpose. The image a location
creates can be important. The local economic and
business climate is important.