Australian Wool Innovation A Case Study on Innovation for HSC Design and Technology.
Preface This book has been prepared for educational purposes and is an exploration into the innovative activities conducted by the Australian Wool Innovation (AWI) on behalf of Australian wool farmers. HSC Design and Technology students are required to study innovation, successful innovation activities and factors affecting innovation. This case study can be used to assist in the delivery and research into these topics. The book provides an introduction into AWI and their mission, a definition of innovation and an exploration into the innovation activities of AWI. This book is not intended for sale and no monetary gain has been achieved through the production of this book. All content remains the property of its original owners. Content is freely available from; www.wool.com www.woolmark.com www.merino.com www.powerhousemuseum.gov.au www.howorth.com.au www.hsc.csu.edu.au
C HAPTER 1
AWI Australian Wool Innovation (AWI) is a not-for-profit company owned by over 29,000 Australian woolgrowers. AWI invests in research, development, innovation and marketing along the global supply chain for Australian wool. AWI’s mission is to invest in research, development and marketing to: • enhance the profitability, international competitiveness and sustainability of the Australian wool industry and • increase demand and market access for Australian wool. Strong links with key stakeholders along the supply-chain means AWI is strongly positioned to: • support Australian woolgrowers to adapt to changing market conditions • deliver research, development and extension solutions that are responsive to industry and government needs and • provide a vital link between government and industry to ensure efficient and effective investment in research, development and extension. AWI is employed by Australian Wool Growers to develop innovative products, systems and environments that support the production, marketing and distribution of wool and wool products.
Australian Wool Innovation (AWI) in partnership with Armani, one of the world’s most respected luxury brands, has launched in store events to showcase Armani’s Autumn Winter 2011/2012 collection. Mr Armani said, 'I have always been fascinated by the versatility of Merino wool and its ability to adapt to every season. Merino wool has a "personality" that allows it to be transformed, recently also thanks to completely new techniques and innovative treatments.'
C HAPTER 2
Innovation Innovation, not to be mistaken with invention, is the development of something new. Where invention refers to a single human act of creating a new product, innovation is a much more complicated and corporate driven act. Innovation is the development of new customer value through solutions that meet new needs, unarticulated needs, or old customer and market needs in new ways. This is accomplished through different or more effective products, processes, services, technologies, or ideas that are readily available to markets, governments, and society. Innovation differs from improvement in that innovation refers to the notion of doing something different (Lat. innovare: "to change") rather than doing the same thing better. Innovation is an expensive and high-risk activity and usually requires the use of an entrepreneur (an enterprising individual who builds capital through risk and/or initiative.) Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource. In many cases however (as is the case with AWI), corporations conduct innovation activities or invest in innovations as part of their inhouse research and development.
Developing an innovation to commercialisation requires management of a variety of different systems. The process occurs across a number of distinct stages. • • • • • • • • •
Identifying a Market Opportunity Obtaining and Managing Resources Conducting Research and Development Protecting Intellectual Property Product Design Obtaining Resources Manufacturing Promotion Distribution
Successful innovation requires application of the following activities: • • • • • •
Effort and risk taking Managing all of the elements of the innovation Seeking out other sources of innovation Continuing improvements Sustained investment Analysis of successful innovation
Today, knowledge has replaced land, labour and finance as the most important resource for economic development. The leading organisations of the future will be those that are able to gain value from information, in other words, those that can innovate. Due to its noticeable effects on efficiency, quality of life, and productive growth, innovation is a key factor in social and economic growth. Consequently, policymakers are working to develop environments that will foster innovation and its resulting positive benefits. Australian agencies established to support innovation and entrepreneurial activity include;
Not all innovations become commercial successes. External factors that contribute to the success or failure of an innovation include: • • • • • • •
• • • • • • • •
Innovation Australia AusIndustry Standards Australia australiandesign.org IP Australia Business.gov ASIC ACCC
Available and Emerging Technologies Timing Historical and Cultural Factors Political Factors Economic Factors Legal Factors Marketing Strategies
Caroma introduced the dual-flush toilet in response to concerns about water availability during Australian droughts. 4
Innovation Activities Improvements in efficiency and product development are essential elements in maintaining an industry and keeping it successful. Over time, processes, tools, machines and materials need to be upgraded, made more cost effective and more efficient. As an individual farmer, the expense of developing a new product system or environment that will improve efficiency or reduce costs is prohibitive. Australian Wool Innovation (AWI) was established to develop and invest in innovations on behalf of Australian wool farmers. AWI investments are funded through a wool levy paid by woolgrowers (currently 2% of the sale price received for their shorn greasy wool) and a matching contribution from the Federal Government for eligible R&D activities, capped at 0.5% of the gross national value of wool production. The sale of Woolmark licences contributes a further source of income for AWI.
Woolgrowers vote every three years on the percentage of wool sales they want invested in research and development and marketing. In WoolPoll 2009 wool growers determined the funding split of their levies on the following ratios:
25% 50%
R&D On Farm R&D Off Farm Marketing
25% The wool levy paid by woolgrowers is collected by the Federal Government and passed on to AWI. An agreement with the Federal Government, called the Statutory Funding Agreement, defines the conditions under which AWI may invest levy and government-matched funds.
AWI works on a large number of projects each year. Some resulting in commercially successful products or campaigns. AWI has provided farmers with tools and resources to improve; • • • • • •
Breeding techniques Pest and weed management Grazing management Parasite control Flystrike prevention Drought management
An example of a successful innovation developed using the resources of AWI is Shear EZY
AWI have also developed innovations that benefit and promote wool retailers. MerinoPerform™ is a range of bi-component fabrics with unique temperature regulation and vapour management properties, keeping athletes cooler and drier when exercising. The range comprises high performance, lightweight fabrics, suitable for all athletes that want the support to perform at their best.
UV - Control Merino is an innovation that provides additional UV protection. The system uses treatment during production that enables a garment to absorb UV radiation upto 20UPF.
Many projects however, end up as unsuccessful past projects. The following are examples of some patent applications that AWI have let expire.
ShearEzy, as featured on New Inventors, is a patented, air operated mechanical workstation designed to catch, present and restrain the sheep. It allows the shearer to easily manipulate a sheep whilst remaining in the upright standing position at all times. The sheep are loaded from the pen and through a race without ever needing to be caught and dragged. The system can come as a single or multiple-stand unit and be either mobile trailer based or a fixed platform.
• • • • • • • •
Animal handling system Inclined blade Limb restraint Rotary cutting device Semi automated manipulator for manual shearing Animal processing conveyor Head restraint for use in treating or shearing animals Paper products for colour printing 6