Innovation Exploitation Report

Introduction

Product innovation entails the introduction of a new service or product or the improvement of an existing product or service. The process of product innovation varies depending on the demands of the consumer, method of delivery, and region characteristics (xxxxxx). These features determine the mode of innovation adopted by a particular company with some firms combining several process and product innovations. In this case, Bike Bright UK Limited aims at carrying out product innovation by improving the characteristics and performance of hire bikes. Currently, the bikes use an electric motor to push the bike forward. The motor is powered by a battery which is recharged by a dynamo that converts the mechanical and kinetic energy from the pedalling to electric energy that is stored in the battery. Mostly, the electrically powered bike is targeted to the less fit segment and those operating in windy and hilly areas. The innovation will add condition monitoring systems that will resemble those used in modern vehicles. The systems will encompass security systems and lighting systems which are expected to appeal to the customers considering the typical bikes do not have these features. While electrically powered bikes are already in use, they are only used in small scale and for private use mainly due to the vast challenges among them the high cost. Bike Bright UK Limited hopes to navigate through these challenges by implementing several changes into the existing design. In order to determine the efficiency of the new design, it is important to evaluate each process of the innovation and assess its feasibility.

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Evaluation of Innovation Activities

The entire process of innovation will entail many activities some of which will be carried separately and others concurrently. The completion of one activity will signify the start of the next activity until the assembly of the bike is completed.

Market Research and Design

The first process of innovation will entail the market research followed by design of the new electrically powered bike. According to Aspelund (2014), the design process starts with the imagination and creation of an image in the mind of how the complete product will look like. Then the designer transforms the imagination into a readable and comprehensible picture that details all the aspects of the product. However, the final design must address the problems facing the target population. The efficiency of every design is determined by the extent to which it addresses the problems and appeals to the target population (Goedhuys and Veugelers, 2012; Haik, Sivaloganathan, & Shahin, 2016; Ullman, 2015; Aspelund, 2014; Clarkson & Eckert, 2005). In this case, the final design of the bike must address the problem of cycling in hilly areas, windy areas, and the difficulties experienced by less fit individuals. Importantly, the design must ensure that the product will be of low cost because high cost is the leading inhibitor of large scale adoption of electrically powered bikes. These challenges will be solved by using highly efficient components for each activity.

Determination of Cost

The essence of innovation is to come up with a product that is highly competitive in the market. Competitive advantage can be gained through reduction of price of the product or through addition of value to the product or both (Nadeau and Casselman, 2008; Keen, 2011; Farinha, 2015). To realize this, all the components of the product must be efficient and cost-effective to produce. Therefore, cost evaluation process will be carried out after the completion of the design process to ensure that the components used are of high performance and cheap. Those found to exceed the limits must be replaced or alternative means of acquisition found. The section below entails the evaluation of individual components and how changes can be implemented to improve the appeal of the product.

As shown in the table above, the standard pedal will be outsourced while the anti-theft system will be developed by the company. This is a good decision considering the fact that the pedals and the tires are the most used parts of a bike. For this reason, they must be durable and efficient (xxxxxx). In other words, they must be resistant to rampant wear and tear yet cheap. Hence, that they must be produced using sophisticated technology and unique materials. Currently, Bike Bright does not have the capacity to meet the required quality of these components hence the decision to outsource them. However, the anti-theft system is easy to build and can be produced in-house.

Other key components of the bike will entail the electric motor, the electric drive controller, and the rechargeable battery. These components will be connected to the recharging socket and the regenerative brake system. Fundamentally, these are the components that distinguish typical "basic" bikes from the electrically powered bike. In other words, the competitiveness of the new bike is centred on these components because they represent the whole idea of innovation (xxxxxxx). Therefore, their performance and appeal to the market can only be underscored. In addition, the marketing strategy will revolve around these components (xxxxxx). It is important to note that the innovation of the electrically powered bike is aimed to solve the problems of cycling in windy and hilly areas as well as to eliminate the difficulties experienced by less fit individuals when using bikes. Therefore, the success of the marketing strategy and the overall performance of the product in the market will be determined by how well the electrical components work to solve the challenges (xxxxxx). For this reason, it is justifiable that more time and resources should be spent in improving their performance.

The key to an efficient electric car is the electric motor and the battery system (xxxxxx). Similarly, the key to an efficient electrically powered bike will be a reliable and durable battery and a high performance electric motor. Given that the bike will use the same technology as that used in electric cars, it is paramount to borrow ideas on how to improve its performance. Modern electric cars are propelled by motors that are powered by alternating current (xxxxxx). While there are asynchronous and synchronous motors, synchronous motors are widely applicable because they are more efficient than their counterparts (xxxxx). The synchronous motors are divided into two categories including the permanent magnet synchronous machine (PMSM) and the salient pole synchronous machine (SPSM) (XXXXXX). SPSMs have an adjustable rotor field that develops torque more efficiently at high speeds but have lower peak efficiency of about 94% compared to PMSMs with peak efficiency of up to99%. Given that the bikes will not reach high speeds but will be required to have sufficient peak speeds, PMSM motor is recommended. Therefore, the Bike Bright should outsource the motor to a company that manufactures PMSMs motors of high quality and at appropriate prices. A good electric motor with a poor recharging battery system is rendered useless. Hence, the Bike Bright should outsource the battery and recharging system to University of Illinois. Currently, the University has developed the most efficient battery that uses the lithium-ion technology. The battery is 2,000 times more powerful and can be recharged 1,000 times faster than conventional lithium-ion batteries (xxxxx). The energy to recharge the battery will be coming from braking and pedalling. however, braking will be minimal hence the user will be required to pedal for long to recharge the battery. However, prolonged pedalling is one of the problems that the innovation hopes to eliminate. Therefore, the company should opt for the University's battery because it addresses the design objectives comprehensively.

In addition, the light system, the safety condition monitoring system, data computer and GPS hardware, and the tracker and condition monitoring system will be valuable additions to the bike. The marketing strategy will be anchored on these components (xxxxx). The main idea will be to show the components increase flexibility, versatility, safety, and efficiency of the new product (xxxxx). Given that the bike will be targeted to different customer segments, it is important to emphasize on the key features that appeal to the respective segment (xxxxxx).

Conclusion

In conclusion, the success of a new product is determined by how well the product addresses several factors. These factors include market segmentation, the market gap or problem that the product targets to solve, the efficiency of the product, and the marketing strategy. Notably, the innovation of the electrically powered bike will entail a series of processes that include market research, financial evaluation, design and development, and launch of the bike to the market. The design and development will require trained engineers who are skilled in CAD design. On the other hand, the marketing and launch of the product will require the sales and marketing teams with knowledge and skills in market research and analysis. Hypothetically, the market research will take three days, financial evaluation will take one day, design and development will take one week, and launch of the bike to the market will take one day. However, the time taken by each activity is subject to changes.

References

CLARKSON, J., & ECKERT, C. (2005). Design process improvement: A review of current practice. http://dx.doi.org/10.1007/978-1-84628-061-0.

ASPELUND, K. (2014). The design process. Fairchild Books.

ULLMAN, D. G. (2015). The mechanical design process. New York, McGraw-Hill Education. http://public.eblib.com/choice/publicfullrecord.aspx?p=5047854.

HAIK, Y., SIVALOGANATHAN, S., & SHAHIN, T. M. (2016). Engineering Design Process. Mason, OH, Cengage Learning. http://public.eblib.com/choice/publicfullrecord.aspx?p=4770999.

Goedhuys, M. and Veugelers, R. (2012). Innovation strategies, process and product innovations and growth: Firm-level evidence from Brazil. Structural Change and Economic Dynamics, 23(4), pp.516-529.

FARINHA, L. M. C. (2015). Handbook of research on global competitive advantage through innovation and entrepreneurship. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=1006625.

KEEN, J. M. (2011). Making technology investments profitable: ROI road map from business case to value realization. Hoboken, N.J., Wiley.

Nadeau, J. and Casselman, R. (2008). Competitive Advantage with New Product Development: Implications for Life Cycle Theory. Journal of Strategic Marketing, 16(5), pp.401-411.