Mehran Mehregany Innovation for Engineers Developing Creative and Entrepreneurial Success Innovation for Engineers Mehran Mehregany Innovation for Engineers Developing Creative and Entrepreneurial Success Mehran Mehregany Veale Professor of Wireless Health Innovation, and Director of Case School of Engineering San Diego San Diego, California, USA ISBN 978-3-319-66528-3 ISBN 978-3-319-66529-0 (eBook) https://doi.org/10.1007/978-3-319-66529-0 Library of Congress Control Number: 2017955949 © Springer International Publishing AG 2018 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. 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Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland To my wife, Francesca, for her loving support and encouragement. Preface In developing this book, I thought back to when I was graduating from college— when I got my electrical engineering bachelor’s, master’s, and doctorate degrees. I thought about what were the things I would have liked to have learned in school, rather than over the years as I navigated my career. I pursued a career anchored in academia because of love of learning and teaching. I learned about innovation and entrepreneurship—and how career and life choices are interrelated—along the way. This book presents what I would have liked to have learned in school, before departing for the world of work. We engineers read a lot of “dry” textbooks; I have tried to make the reading less dry when possible, including the use of informal lan- guage at times. The presentation is a blend of theory and pragmatism based on my own perspective in developing the content. While the book is written for engineering students and professionals, the content is similarly informative for those in other disciplines. It can be used in support of a course or for self-study. Given the modest length of the book, it can be used in a shorter course. On the other hand, longer courses provide an opportunity to elabo- rate the content and help students integrate the learning in support of their own individual interests and needs. My own interest is to use this book in a two-semester course sequence, each being three-credit hours. The first semester is to cover the entire book, while guiding the students to formulate their own opportunity definitions. The students whose opportunity definitions rank in the top half of those of the entire class will have the opportunity to register for and complete the second semester course. Firstly, not all opportunity definitions merit additional pursuit. Secondly, students need to experi- ence the reality of competition. The goal of the second course is for the students to complete and pitch business plans for their defined opportunities. In doing so, they will put to work the concepts presented in Chaps. 3, 4, and 5 systematically. A group of angel investors—to whom the business plans will be pitched—decide if they want to invest in any of the plans, including mentoring the students to move forward. The development of this book was supported by a number of people. Marta Moldvai of the Springer editorial team was instrumental in developing the table of vii viii Preface contents. I enjoyed and appreciated the blend of her strong intellectual ability and tactical skills. April Skrobiza did the initial literature search to set the stage for my writing, working additionally with Alyss and Nadav Zohar on Chaps. 2 and 3. I am very grateful to (1) Michael Branicky, Sc.D., PE, Dean, School of Engineering, the University of Kansas; (2) Manijeh Reyhani, Ph.D., D.BA, Adjunct Professor, Faculty of Arts, Business, Law and Education, The University of Western Australia; and (3) Enrique Saldivar, M.D., Ph.D., Director, Wireless Health Program, Case School of Engineering San Diego, Case Western Reserve University. They reviewed the book, taking time out of their busy schedules to help me develop a better product. All three are involved with engineering, innovation, and entrepre- neurship education and practice. Their input was invaluable in pointing out needs for clarification and elaboration. Finally, I would like to thank Case Western Reserve University for its support of faculty book authorship. San Diego, CA, USA Mehran Mehregany Contents 1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Evolution of the Author’s Perspective . . . . . . . . . . . . . . . . . . . . . . . . 2 1.2 Chapter Overviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 Innovation and Entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.1 Pervasive Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2.2 The Race for Relevance: Why All This Emphasis on Innovation? . . 6 2.2.1 What Is Innovation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2.2.2 Why All This Talk About Entrepreneurship? . . . . . . . . . . . . . 9 2.2.3 What Are Entrepreneurship and Intrapreneurship? . . . . . . . . 10 2.3 Value Creation in the Twenty-First-Century Landscape . . . . . . . . . . 10 2.3.1 How Companies Innovate . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2.3.2 Building Innovation Capacity . . . . . . . . . . . . . . . . . . . . . . . . 13 2.4 Where to Play, How to Win . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2.4.1 Where to Play . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2.4.2 How to Win . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 2.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 3 The Innovative Mind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 3.1 Growth Mindsets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3.1.1 The Individual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3.1.2 The Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 3.2 How to Think Creatively . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 3.2.1 The Four Stages of Creative Thinking . . . . . . . . . . . . . . . . . . 35 3.2.2 Other Models for Creative Thinking . . . . . . . . . . . . . . . . . . . 38 3.2.3 Engineering Design and Creativity . . . . . . . . . . . . . . . . . . . . 40 3.3 Biology of the Innovative Mind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 3.3.1 Divergent Thinking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 3.3.2 Convergent Thinking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 3.3.3 Convergent and Divergent Interaction . . . . . . . . . . . . . . . . . . 45 3.3.4 Novelty Seeking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3.3.5 Connectivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 ix x Contents 3.3.6 Ways to Enhance Creativity . . . . . . . . . . . . . . . . . . . . . . . . . . 48 3.4 Psychology of the Innovative Mind . . . . . . . . . . . . . . . . . . . . . . . . . . 48 3.4.1 Feeling Appreciated and Innovation . . . . . . . . . . . . . . . . . . . 49 3.4.2 Sense of Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 3.4.3 Assurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 3.4.4 Availability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 3.4.5 Motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 3.4.6 Understanding Customer Psychology . . . . . . . . . . . . . . . . . . 52 3.4.7 Illusions of Intuitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 3.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 4 Innovation Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 4.1 Design Thinking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 4.2 Lateral Thinking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 4.3 Systems Thinking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 4.4 Blue Ocean Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 4.5 Measuring Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 4.5.1 Example Organizations with Innovation Success . . . . . . . . . 67 4.5.2 Metrics of Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 4.6 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 5 Identifying, Qualifying, and Financing Opportunities . . . . . . . . . . . . 73 5.1 Identifying . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 5.1.1 The How . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 5.1.2 The Where . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 5.2 Q ualifying . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 5.2.1 The What . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 5.2.2 The How . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 5.3 F inancing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 5.3.1 Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 5.3.2 Financing Rounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 5.4 Common Pitfalls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 5.4.1 Identifying, Qualifying, and Financing . . . . . . . . . . . . . . . . . 95 5.4.2 Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 5.5 C onclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 6 C onclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 6.1 T akeaways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 6.1.1 The Race for Relevance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 6.1.2 Where to Play, How to Win . . . . . . . . . . . . . . . . . . . . . . . . . 100 6.1.3 Creative Thinking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 6.1.4 Innovation Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 6.1.5 Making Innovation Happen . . . . . . . . . . . . . . . . . . . . . . . . . 101 6.2 Closing Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 About the Author Mehran Mehregany is an innovator, researcher, educator, and an entrepreneur. His interests are in sen- sors, micro- and nanoelectromechanical systems, sili- con carbide microsystems, wearables, wireless health, and enterprise innovation models. He has made nota- ble, innovative contributions in these areas. He received his M.S. and Ph.D. in electrical engi- neering from Massachusetts Institute of Technology in 1986 and 1990, respectively. He joined Case Western Reserve University in 1990 as an assistant professor in the Electrical Engineering and Computer Science Department and was promoted to associate professor with tenure in 1994 and full professor in 1997. He is currently the founding director of Case School of Engineering San Diego, where he developed and launched graduate programs in wireless health and wearable com- puting in 2011 and 2014, respectively. He holds the Veale Professor of Wireless Health Innovation endowed chair and previously held the Goodrich (2000–2015) and the George S. Dively (1997–2000) endowed chairs. He has a secondary appoint- ment in the Biomedical Engineering Department. Previously, he was a consultant to the Robotic Systems Research Department at AT&T Bell Laboratories (1986–1990), where he was a key contributor to ground- breaking research in microelectromechanical systems (MEMS). From November 2009 through August 2010 (taking a leave from Case), Mehregany was the founding executive vice president of engineering, chief of engineering research, and the Gary and Mary West Endowed Chair of Wireless Health Technology at the West Health Institute (formerly West Wireless Health Institute). During this period, he formu- lated the institute’s engineering program, recruited the initial talent, and launched the initial research activities and product developments, including Sense4Baby, which was brought to the market by AirStrip in 2015. xi