 Edward Goldman, senior vice president of Waltham, MA-based Foster-Miller |
An exclusive interview with Edward Goldman, senior vice president with Foster-Miller.
Product Design and Development (PD&D) recently sat down with Edward Goldman of Foster-Miller to discuss Direct Innovation—a pioneering approach to creating novel, breakthrough products. The following is the first of a two-part interview with the senior vice president of the Waltham, MA-based product design and development firm.
PD&D: What is Direct Innovation? Goldman: Direct Innovation is the focusing of ideation and brainstorming to develop a proprietary product that meets a distinct market need. The process involves innovating in a defined space with a unique product in mind. The end result is a differentiated product that enhances a firm’s market position and distinguishes the company from the competition.
PD&D: How is Direct Innovation different from Open Innovation?
Goldman: Open Innovation is a term pioneered by innovation expert Henry Chesbrough. The core of this philosophy is that, in today’s world, information is very accessible and much knowledge already exists. Therefore, companies should take advantage of what is already on the market and not rely solely on internal engineering, as was common with the traditional practice of Closed Innovation.
In essence, companies search the marketplace for relevant technologies and products to shorten the product development cycle and determine if they can be applied to product development processes. This search effort should be the first step in new product development because it will reveal existing products and the competitive technology environment.
Direct Innovation, by contrast, starts first with identifying a specific market need, and then channeling a dedicated R&D effort to create a novel breakthrough product to meet this need.
For clarification on Open versus Direct Innovation, consider the following example. A food manufacturing company has a market-leading cheese product. The company continually employs Open Innovation and researches existing technologies, automated machinery and packaging components and materials that may be relevant to packaging cheese. Engineers identify a new zipper technology that better maintains freshness and a new film for better flexibility in manufacturing. The company negotiates intellectual property rights to employ the technologies to package its cheese product and releases an improved product. The new products help the company increase revenues and better serve its customers.
The Direct Innovation method is quite different. The same food manufacturing company recognizes a growing population of left-handed consumers who require single-serve portions of cheese due to on-the-go lifestyles. The company sets out to design an innovative package for its cheese product that is resealable and opens on the left side, and new manufacturing equipment that produces cheese that can be conveniently eaten on-the-go. Engineering efforts are directed at creating an original technology that allows the company to produce and mass manufacture a distinct product according to these market requirements. The end result is a new package and product that satisfy the consumer need and boost the firm’s market position.
Another example could be a medical device manufacturer who a leader in devices for diabetics. The company continually employs Open Innovation and researches existing drug delivery technologies. Engineers identify a new needle that reduces injection pain. The company negotiates intellectual property rights to license this technology in its insulin delivery devices and releases an improved product. The new products help the company increase revenues and better serve its customers.
The Direct Innovation method is quite different. Here, a medical device manufacturer recognizes doctor dissatisfaction with current biopsy tools, which require two hands for operation and a large amount of force to collect samples. Engineering efforts are directed at creating an original product that can be operated entirely with one hand and little force, as well as a feasible, cost-effective process for mass manufacture. The end result is a first-of-its-kind product that satisfies the distinct industry need and boosts the firm’s market position.
PD&D: When should a company use Direct Innovation?
Goldman: Direct Innovation is best for companies that have identified an unmet market need and are striving to create the next breakthrough market success - an advanced product that is truly unique. This is because Direct Innovation helps companies answer a specific market need, which is the first step in creating a sustainable, long-term market-leading position. As Direct Innovation usually does not require IP negotiation or licensing, it is faster, more easily kept secret and it creates a better opportunity for the developed technology to be one-of-a- kind, reducing the likelihood of it being copied or reverse-engineered.
To contact Edward Goldman call (781) 684-4168 or e-mail him at egoldman@foster-miller.com.
ADVERTISEMENT