IBM Typewriter Innovation: Inventions and Market Analysis

This report provides a comprehensive analysis of IBM's typewriter innovation journey, exploring key inventions, market dynamics, and leadership strategies. It delves into the evolution of typewriters, from early inventions to the development of the IBM Selectric, examining the concepts of invention versus innovation, and the application of Von Hippel's theory. The report also investigates demand-pull and technology-push models, highlighting IBM's approach. Furthermore, it assesses the company's vision, leadership, and corporate culture, and their impact on customer resistance and market competition, including the S-curve and the 4Ps of innovation. The analysis extends to IBM's strategic decisions, such as the adoption of disruptive technologies, and concludes with a discussion of frugal innovation and the factors contributing to IBM's success in the typewriter market. The report leverages diverse sources to provide a well-rounded perspective on IBM's legacy in the field of technology.

Table of Contents
A. Introduction.........................................................................................................2
B. Major findings.....................................................................................................3
1. Inventions and innovation.............................................................................3
Invention............................................................................................................... 3
Innovation............................................................................................................3
The highlight of innovation and invention..........................................................4
2. Theory of Von Hippel and functional sources of innovation......................5
Theory of Von Hippel...........................................................................................5
Apply theory of Von Hippel to explain the functional innovation of IBM’s
Selectric typewriters..............................................................................................6
3. Demand-pull and technology push...............................................................6
4. Vision, leadership, culture of Apple and the resistance of customers........8
Vision, leadership, culture...................................................................................8
The resistance.......................................................................................................9
5. The competition...........................................................................................10
The S-curve........................................................................................................10
The performance ...............................................................................................10
Rival technology.................................................................................................12
Performance or cost advantage..........................................................................12
4Ps of innovation and innovation funnel..........................................................13
6. The success of IBM’s Selectric typewriters, frugal innovation................15
C. Conclusion.........................................................................................................17
D. Reference...........................................................................................................18

A.Introduction
Technological innovation has always been an essential part of development through
the ages. IBM is also one of the companies at the forefront of such technological
innovation. This article focuses on the new typewriter aspect of IBM, along with the
innovation of typewriters around the world and other companies.

B.Major findings
1. Inventions and innovation
Invention
The definition of an invention can be described as a new artificial device or process. A
new device is an invention with new physical properties, a new biological life form, or
other efficient software. A new process will have chemical or biophysical sequences
of events that create a product or service (Alfred L. Norman, 1972). Norman argued
that the invention could qualify for the patent, with no guarantee that the invention
would be profitable for production. In 1575, ideas appeared on paper. Or in the 1800s,
there emerged the idea of a typewriter for the blind. Ideas gradually are the premise
for development in the following years.
Innovation
According to Joseph A. Schumpeter in 1934, he adds the definition of "innovation" or
"development" as a "new combination" of new or existing knowledge, resources,
equipment, and other elements. He emphasized the difference between innovation and
invention. Innovation is a specific social activity, or function is carried out in the field
of economics and trade, while inventions in principle can be carried out everywhere.
He believes that innovation is the process through ideas created and put into
commercial practice. Innovation is divided into two categories: Major innovation and
Minor innovation.
Major innovation:
Radical innovation is described as a frame change. Comprehensive, more prominent
changes that have never been seen before (Donald A. Norman & Roberto Verganti,
2012). From another perspective, radical innovation is described as a significant
technological change, showing new features and changing elements or structures. This
innovation is the foundation for the technology system, new fields, or important
breakthroughs in concept. (J. Kasmirea, Janne M. Korhonenb & Igor Nikolica, 2012).

Especially in 1875, improvements of the Hansen Writing Ball made the typewriter
needless to use electricity, convenient for saving resources.
Minor innovation:
The term "incremental innovation" refers to a series of small improvements made to a
company's existing products or services. These low-cost innovations will differentiate
and compete against a competitor while still relying on existing products. (Samantha
Costanzo Carleton, 2019). Typically, the shift key improvement makes the typing
mechanism simpler than ever when the user can type many different characters on the
same bar.
The highlight of innovation and invention
Invention Major innovation Minor innovation
- 1575: The idea of
creating letters on paper
has appeared
- 1714: Get an invention
patent for the typewriter.
The machine can
phoneme the letters on
paper, which can hardly
be erased or errors
- 1802, 1801-1808: The
idea of typewriters for
people with disabilities
(blind people)
- 1829: A secondary
typewriter using dialing
appears
- 1855: There is an idea of
Hansen Writing Ball.
- Father Rasmus
Malling Hansen, the
Danish, was the first
typewriter market.
- The typewriter's
speed is much faster than
the handwriting writer's.
- In 1875, advance
the typewriter without
electricity.
The Sholes typing and
Glidden:
- The typewriter was
successful for commercial
purposes created by
Christopher Latham
Frontstriking
- Intercept the user
when the text is visible.
- Reputed four-bank
keyboard corrections.
Shift key
- Simply knock
mechanism (typing
various characters in a
bar) and mechanism
inside.
- You can type a
flower print and a lot of
special letters.
- A substantial
expense fee.

a typewriter where users
can see characters during
typed
Sholes, Frank Haven
Hall, Carlos Glidden, and
Samuel W. Soule.
- Layout QWERTY
Key, create a typewriter
theme later
Index typewriter
- The keyboard
typewriter must be lighter
and easier to move.
- The machine can
use many fonts and letters.
Standardization
- Alternate the small
bell when writing out all
hinges so the user can use
it to push down the line.
Tab key
- Shun is better off
breaking into numbers.
Dead key
- Improvements to
knock-on side marks,
special signs.
- Decrease the
required number.
Character sizes
- Reform helps the
size of the letter.
Colour
- The improvements
change the font color
when typing.
Noiseless"designs.
- Deform the
typewriter only by forcing
ribbon and paper to reduce
noise.
2. Theory of Von Hippel and functional sources of innovation
Theory of Von Hippel
Von Hippel's hypothesis centers around three practical parts of development: clients,
producers and providers, and the individuals who are joined together (Eric Von
Hippel, 2007). Ongoing advancements incorporate the individual of the organization
that sells them and the constant items and administrations they create and use. This is
the situation with advancements from makers, including the specialist that creates
items for clients. Eric von Hippel should be quick to completely inspect this work.

The facts confirm that client development will profit from the maker's advancement in
helpful assets. For example. The items are created and arranged by the plan engineers
to import counterfeit people and can be utilized for explicit client needs. Different
engineers or modifiers have items, however, they should be good for a reason.
Apply theory of Von Hippel to explain the functional innovation of IBM’s Selectric
typewriters
Users: User innovation refers to consumer innovation rather than by suppliers
(Faulkner, Philip; Runde, Jochen, 2009). In the data shown in the post, James Fields
Smathers is supposed to be Users. He invented the first energy-powered typewriter in
the early 20th century. After 6 years he successfully produced the model and the next
2 years he sold the idea to Northeast Electric Company. Company of Rochester for
development.
Manufacturers: An innovation of manufactures is innovation through product
development at own cost and profitable by commercialization (Von Hippel, 2005; Di
Gangi & Wasko, 2009). According to the available data, Northeast Electric Company
of Rochester is an example of a manufacturer. When the company took inspiration
from users James Fields Smathers to find the market and develop it. Then, the firm
sold the production to other typewriter manufacturers.
Supplier: Remington typewriters are manufactured by northeast-supplied engines.
Northeast was the main supplier and later, when Remington did not join the merger,
the Northeast became both manufacturer and supplier.
3. Demand-pull and technology push
Research by Van den Ende, J., and Dolfsma, W., 2005 shows that technological
change is driven by two factors: demand-pull and technological push. If, he points out
that demand-pull is the supply of technological options by promoting innovation or
advances in science and technology. Technological push involves factors that
stimulate the demand or influence the price of the technology.

IBM's innovation ideas come from engineers who have realized part of the technical
knowledge that led to the company's new products. According to The Selectric
Typewriter, engineers always try to come up with innovative ideas for typewriters.
The first is a golf-ball-shaped type head that replaced the conventional typewriter's
basket of type bars. This eliminates the disadvantages of typing stuck balls and
reducing speed. Later, Horace "Bud" Beattie designed the shape of the golf ball typing
element like a mushroom and then modified it in a sys shape for added convenience.
The company continues to grow as it adds different type styles, fonts, and other
languages by making the golf ball interchangeable. Accordingly, IBM used the
technology push model for the company in making IBM Selectric typewriters.
IBM Technology Business performance
Model I (1961) - Preventing the
death switch
instead of a
typewriter.
- Eliminating the
situation while
typing the key
- Using a lot of
typeball font by the
flexibility of the
typeball.
- IBM's sales as the
first-generation
Selectric typewriter
trade hits the index
threshold over the
next six months. As
a result, IBM had
about 80 million
orders by the end
of 1961.
Model II (1971) - The innovation in a
dual-pitch
mechanism makes
it convenient for
users to adjust the
height of the letters
for convenience
- Selectric
Typewriter II
became a trend and
appeared on many
product distribution
channels. IBM now
does a lot of

and space-saving. marketing
campaigns through
movies and photos
to spread their
products.
- 10,000,000
typewriters are
sold.
Model III (1980) - Has 96 characters
elements
- Although IBM's
market share fell to
about 25%, IBM is
still held 17% by
analysts.
(IBM Archives: IBM Office Products Division highlights - page 2, 2021)
(TYPEWRITERS OF ELECTRONIC ERA (Published 1984), 2021)
4. Vision, leadership, culture of Apple and the resistance of
customers
Vision, leadership, culture
According to IBM's history, IBM's vision towards a company is always at the
forefront of innovation and technology development. Started in 1961, when IBM's
first typewriter was launched commercially, the company always innovated and
innovated more features and products to fit more customer segments. As a result, for
nearly two decades, IBM has always been a pioneer in the field of typewriter
technology innovation. Products always bring high value and are trusted by customers
in business and school environments.
According to IBM's history, IBM's leadership is always appreciated in the company.
Leaders of IBM are people with foresight and a certain empathy with employees. That
foresight is the result of creating leadership levels in the organization. A steady
transition between pioneers has kept IBM firmly at the top of the typewriter position.

Along with that, during the recession period, with his vision, IBM leaders always
believed in and provided jobs for employees. Perhaps because of this empathy,
employees worked at their highest productivity to deliver complete technological
innovation over the years to retake the market.
At IBM, the company has always followed a culture of progressive thinking. Thomas
J. Watson shaped and instilled this cultural thought for employees. His goal is to bring
the company together to realize his dream of being at the forefront of innovation and
development. Typically, Eliot Noyes was hired by Watson as the firm's design
director of consulting. With a progressive cultural ideology, Eliot also gradually
formed the perception "Good business is derived from good design and good care".
The resistance
In his book The Innovator Dilemma: When New Technologies Makes Big Companies
Fail, Clayton Christensen offers clear theories about the innovation dilemma. The
hypothesis points to three factors: There are two types of disruptive and sustained
technology. Retention technology is to develop technology primarily by increasing
their performance. Technology disruptions are dominant technological changes that
change the entire landscape of an industry or initiate a whole new industry. During
this period IBM was very successful with product innovations over the years. With
our endeavor to always create typewriter products with improvements in productivity
and quality following the general needs of customers. Thus, from the beginning of the
20th century until 1976, IBM always followed sustaining technology. But Olivetti's
spectacular breakthrough with electronic typewriters and cutting-edge innovations put
the typewriter market in their hands. At this point, IBM must make the decision to
either stick with the technology and enter the electronic typewriters market or consider
a breakthrough. In the end, IBM chose a great turning point in business history or
IBM chose to disruptive technology. IBM innovated and gradually created
innovations and technological breakthroughs in the following years, the computer.
And finally, after years of being squeezed by its competitor Oliverti, IBM had asserted
its position by the disruption of the computer. In 1990, IBM released the first

commercial computer. This turning point put IBM at the forefront of the global
technology business in the late 20th century.
5. The competition
The S-curve
The S-curve refers to the graph that is used to describe, visualize and predict hourly
business performance. The chart will consist of 3 phases, usually with rapid growth, in
the beginning, rapid growth in the middle period, and slow growth towards the end.
Shows how technology progresses from process or technological sluggishness and
begins to evolve until end-to-end (Lu, J. W., & Beamish, P. W, 2004). The following
S-curve will indicate the evolution of IBM’s Selectric typewriters and Olivetti’s
electronic typewriters in 1970 and 1976.
• Satge 1: This is the development and explosion phase of the IBM Selectric
typewriter
• Stage 2: This is the development phase of Olivetti Electronic typewriter
• Stage 3: This was the boom for Olivetti's Electronic typewriter and the
downturn of IBM's Selectric typewriter.

The performance
Before 1970, IBM typewriters gradually became a trend at that time. In 1952, IBM
released the Magnetic Tape Selectric typewriter. And that innovation is the beginning
of storage media. In 1961, the company launched Selectric typewriters with
improvements that made it easy for users to customize. As a result, the company
achieved more revenue than expected. IBM employee John Vinlove calculated that he
would sell as low as 50 to 60 units and the highest from 500 to 600. The facility is
expected to produce 20,000 Selectric typewriters. The unexpected result was that by
the end of the year, IBM had 80,000 orders. In 1964, IBM released the Magnetic Tape
Selectric Composer (MTSC) typewriter, which was the beginning of "power typing"
or today known as word processing.
IBM typewriters became a common trend in office environments in the 1970s. From
school to business, an estimated 8 million people consider IBM typewriters to be the
standard for teaching and using. This is a period when IBM does not have much
technological innovation. However, Selectric's development and innovation have
always been the company's leading source of revenue. IBM's revenue and net income
also doubled from this typewriter revenue (From $8.27 B+ 10% / $1.07 B+ 6% to
$16.3 B+ 13% / $2.39 B+ 20%) (IBM Archives: 1970, 1976)
In 1976, Olivetti's technological breakthrough put IBM in their hands in the multiple
typewriter market 1976. A drastic change in technology by replacing typewriters with
plastic or metal wheel mechanisms is the main reason. With its electronic typewriters,
text displays, and memory retention capabilities, Olivetti has maintained the world
record for the design of electronic typewriters and the power they bring. Olivetti's
revenue justified that (Nearly half a trillion Lira) (Federal Trade Commission
Decision). IBM's attempt to sell up to 13 million selectrics typewriters in 1986 was
not enough. Meanwhile, Olivetti's profit in the same year was L 565.5 billion (S.p.A.,
2021) As a result, in 1991, IBM sold its typewriter division to Lexmark, exiting the
dominated market and preparing for new technological breakthroughs and other
markets altogether.

Rival technology
IBM was overwhelmed by Olivetti in the typewriter market with the introduction of
the electronic typewriter in 1976. The competition occurred by a rival company that
had advanced significantly in technology. Even though, instead of using typeball like
the Selectric typewriter from IBM, Olivetti innovated with metal and plastic wheel
structures. In addition, the installation of additional floppy disks for memory storage
and an electronic screen allows typists to see mistakes while typing, optimizing user
performance. It can be said that Olivetti significantly innovates and innovates
according to the needs of its customers.
In the 70s of the S-curve chart, Olivetti was researching and developing the electronic
typewriter. Before that, Olivetti had seen remarkable growth after the war. And then,
when the 3rd Industrial Revolution (Electronic Revolution) just started, Olivetti seized
the opportunity to improve products with innovations in technology to produce typing
machines. electronic letters. The milestone not only shows the excellence of the
company when it not only has survived the period of technological change but also
has a big bright spot in possessing the typewriter market (S.p.A., 2021)
Performance or cost advantage
In the early stage of production of the Selectric typewriter, IBM always emphasized
and focused on the quality of the products to be the best high-end products. With the
improvements, adding many new features to increase capacity and meet the needs of
users such as typeball, the golf ball, etc. The advantage of product quality, users
accept to pay a high price because they always trust and believe in the quality of the
machine. It wasn't until 1976 when Olivetti and electronic typewriters entered the
market with a breakthrough in technology, now IBM had to change direction for its
products. IBM refined the features of its products, making them minimal, and IBM
could now sell its machine again. However, IBM's cooperation's sales and market
share decreased significantly in the following years. Specifically, in 1978 the
company accounted for 94% of sales of electronic typewriters. Four years later, the