ENGINEERING INNOVATIVE PRODUCTS
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3 ENGINEERING INNOVATIVE PRODUCTS
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5 ENGINEERING INNOVATIVE PRODUCTS A PRACTICAL EXPERIENCE Edited by Roger Woods Karen Rafferty Julian Murphy School of Electronics, Electrical Engineering and Computer Science, Queen s University Belfast, UK Paul Hermon School of Mechanical and Aerospace Engineering, Queen s University Belfast, UK
6 This edition first published John Wiley & Sons Ltd Registered office John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at The right of the author to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. It is sold on the understanding that the publisher is not engaged in rendering professional services and neither the publisher nor the author shall be liable for damages arising herefrom. If professional advice or other expert assistance is required, the services of a competent professional should be sought. Library of Congress Cataloging-in-Publication Data Woods, Roger, Engineering innovative products : a practical experience / Roger Woods, Karen Rafferty, John Paul Hermon, and Julian Murphy. pages cm Includes bibliographical references and index. ISBN (pbk.) 1. New products. 2. Marketing. I. Raerty, Karen. II. Hermon, John Paul. III. Murphy, Julian, IV. Title. TS170.W dc ISBN Set in 10/12pt Times by Laserwords Private Limited, Chennai, India
7 The authors dedicate this book to the many students who have actively engaged in the company and product creation activities described here.
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9 Contents List of Contributors Foreword Preface List of Abbreviations xv xvii xix xxi 1 Introduction 1 Roger Woods 1.1 Introduction Importance of SMEs Inspiring Innovation for Engineers Rationale Focus Processes and Organization of Course Breakdown of Book Material 5 References 8 2 Idea Generation, Filtering and Development 9 Karen Rafferty 2.1 Introduction Timeline Team Structure Team-Working Theory Team Roles Idea Generation Mentor Role Role of the Team Role of the Individual Imitation To Filter or Not Already Exists Market Issues Technically Too Difficult 26
10 viii Contents Beyond Expertise Difficult to Pitch No Potential for Future Development Idea Incubation and Development Conclusions 28 References 28 3 The Ideal Pitch 29 Roger Woods 3.1 Introduction Business Pitch CONNECT Springboard Pitch Outline Case Studies MVR Nutrifit Noctua Pain and Solution Value Proposition and Technology Market and Competition Company Traction and Go-to-Market Strategy Finance Presentation Process Conclusions 52 References 52 4 Creating an Effective Business Plan 53 Roger Woods 4.1 Introduction Business Plan Business Plan Outline Executive Summary Company Team Branding The Business Products and Services Uniqueness Future Products Business Strategy Corporate Strategy Competitive Edge 65
11 Contents ix Pricing Strategy Sales Strategy Market Market Definition Key Market Segments Market Trends Target Market Competition Direct Competition Indirect Competition How We Compare Market Analysis Market Growth Position Pricing Sales Strategy and Projection Distribution Advertising and Promotion Finances Costs Breakeven Analysis Profit and Loss Accounts Balance Sheet Performance Ratios Conclusions 75 References 76 5 Brands that Connect Create Differences that Matter 77 Gillian Colhoun 5.1 Introduction Why Branding Matters The Branding Evolution The Dynamics of Trust The Doing Part of Branding A Brilliant Idea Be Useful Be Credible Have a Dominant Proposition Brand Check Your Idea Belief Systems Influence Behaviour The Secret Sauce: Tell a Great Story World-Beating Attitude 91
12 x Contents Who Else is Out There? Do Your Homework Name it. Name it Good Taglines Can Make Things Simple, Not Dumb Brand Strategy (is Not a Dirty Word) Make Sense to Your Advocates and Your Customers A Word on Industrial/Tech Branding A Coherent Visual Identity A Central Visual Image But What About My Logo? Brand Touchpoints Conclusions 104 References The Marketing of Your Business is Your Business 107 Graeme Roberts 6.1 Introduction Definition of Marketing and Marketing Communication Identifying Your Target Market Market Research for New Companies, Products or Services Target Market Size and Trends Segments Competition Market Cycles Demand Indicators Keyword Tools The Value Proposition Features TELL, Benefits SELL Evaluating Your Market Research Your Marketing Strategy Monitoring Reputation Promotional Techniques Offline Marketing Online Marketing Websites Search Engine Optimization Website Analytics Affiliate Marketing Marketing Social Media What is Social Media All About and Why is it Important for Business? Facebook Facts YouTube, Vimeo and the Use of Video for Business Twitter Branding and Twitter Case Studies and Referrals Conclusions 129
13 Contents xi 7 Intellectual Property 131 Rosi Armstrong 7.1 Why Intellectual Property is Important Types of Intellectual Property Protection Copyright Trademarks Patents Know-How Design Protection Ownership of Intellectual Property Information from Intellectual Property Deciding How Intellectual Property Applies to Your Company What to Do to Protect Your Intellectual Property Copyright Design Right Registered Designs Trademarks Patents Summary Finance 153 Kirk Shilliday 8.1 Why Do I Need a Financial Plan? Types of Business Structure Sources of Finance Main Components of the Financial Plan Sales Forecast Profit and Loss Account Breakeven Fixed Costs Cash Flow Statement Balance Sheet Building the Financial Model Structure Variables Assumptions Sensitivity Testing What If Traps/Causes of Failure Preliminary Design and Concept Prototype 177 Julian Murphy 9.1 Introduction Finalizing Ideas Communicating Innovation and Product Differentiation Product Definition 182
14 xii Contents 9.5 Legal and Safety Considerations IP Considerations Initial Product Specification Design Modelling and Prototyping Conclusions Full Product Development 193 Paul Hermon 10.1 Introduction Full Product Development in an Educational Context Functional Prototypes Product Design Specification Preparing a PDS Detailed Design Don t Repeat the Mistakes of Others Mass Production Considerations Automated Assembly Testing Final Product Definition 208 References Case Study: Buteos 211 Judy Black 11.1 Marriage Team Roles Conception Giving Birth The Baptism Growth Questioning your Motives Flying the Nest The Big Bad World Student Project to Commercial Project: A Complex Journey 221 Kyle Crawford and Stephen Dowling 12.1 Introduction Evolution of the Product Serving Beer Product Development Insights Going Beyond the Requirements of a University Project Module Securing Protection Product Rethink Protecting Intellectual Property 226
15 Contents xiii 12.5 Part-Time Student or Full-Time Innovator? Covering the Legal Aspects Dealing with Potential Customers and Licensees Axiomatic Design Product Architecture Optimization Through Testing Branding the Company Branding Websites and s Finances Go For It Programme Pitching the Technology Design for Manufacture Conclusions 240 Reference Assessment 241 Karen Rafferty 13.1 Introduction Learning Outcomes Investment Pitch Business Plan Technical Feasibility Study Peer Evaluation The Assessment Matrix Formative and Summative Assessment Conclusions 253 References Final Thoughts 255 Roger Woods 14.1 Introduction Thoughts for Mentors Thoughts for Students Future Directions Final Comments 258 Glossary 259 Index 263
Julian Murphy School of Electronics, Electrical Engineering and Computer Science, Queen's University Belfast, UK
ENGINEERING INNOVATIVE PRODUCTS A PRACTICAL EXPERIENCE Edited by Karen Rafferty Julian Murphy School of Electronics, Electrical Engineering and Computer Science, Queen's University Belfast, UK Paul Hermon
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