Unit 5 Operations Management Innovation

Learning Objective HL – To be explain the importance of research and development for a business HL – 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 ! World Wide Web He invented the wind-up radio

Lewis Latimer Garrett Morgan Dr. Patricia E. Bath Lonnie G. Johnson

Key Terms Research & Development Scientific research and technical development of new products and processes Research & Development Scientific research and technical development of new products and processes Invention The formulation or discovery of new ideas for products or processes Invention The formulation or discovery of new ideas for products or processes Innovation The practical application of new inventions into marketable products Innovation The practical application of new inventions into marketable products Product Innovation New, marketable products Product Innovation New, marketable products Process Innovation New methods of manufacturing or service provision that offers important benefits Process Innovation New 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 business Rights – legal rights over possession and use Intellectual Property Creations of the mind such as inventions, literary and artistic works and symbols, names images, and designs used in business Rights – legal rights over possession and use Patent Patents protect the technical and functional aspects of products and processes Patent Patents protect the technical and functional aspects of products and processes Copyright Copyright protects material, such as literature, art, music, sound recordings, films and broadcasts. Copyright Copyright protects material, such as literature, art, music, sound recordings, films and broadcasts. Trademark Trademarks protect signs that can distinguish the goods and services of one trader from those of another Trademark Trademarks 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

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?  Copyright  Design  Patent  Trademarks

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