Managing Innovation Assignment (WEEK 4)

Case Study: The Evolution of the Bicycle

People began exploring the idea of the bicycle in the

middle of the nineteenth century and a huge variety of

types emerged between 1860 and 1890. Various

attempts were made to establish a dominant design, but it

was not until near the turn of the century that the

experiments with wheels, gears, seats, etc. converged to

the now familiar ‘diamond frame’. This still forms the basis

of most cycle design.

Manufacturers introduced all sorts of incremental

improvements including new materials (e.g. alloy steels

for the frame), new components (e.g. gears), accessories

(e.g. lights), etc. By 1930 there were bicycles to suit

different market segments, ranging from dependable

working cycles with three-speed gears, lever-operated

brakes, through to high-performance racing and sports

bikes made of lightweight materials and incorporating

advanced gear and braking technology. This phase was

very much about market segmentation – innovating to suit

the needs of different user groups.

The post-war period in Europe led to an expansion in the

demand for cycles as a cheap mode of transport and this

put emphasis on production to low cost and high quality.

For a long period innovation focused on process

improvement to achieve these goals and the product and

market remained stable – essentially characteristic of the

mature phase in the product/technology life cycle.

This did not mean that more radical concepts were not

being explored, simply that they were not adopted widely.

Innovation was still taking place in specialist niches, for

example, in racing bike technology where new materials

played a role. But it was not until the 1960s when Alex

Moulton introduced his small wheel collapsible bike that

mainstream product innovation took place. His original

design was for a bicycle which could be folded up and

carried on the train for commuters to use between the

office and the station; other variants included a small

shopping bike.

Such models were not huge commercial successes but

they demonstrated the potential of the design in terms of

efficiency and reliability – traditionally smaller wheels

posed problems with transmission and with shock

absorption. The market where it really had an impact was

in ‘fun bikes’ for children; in particular manufacturers

borrowed from the idea of motorcycle cross-country

rallying to create the BMX – bicycle motor cross – market.

This opened up a new business and tapped into the

increasingly affluent markets of the 1970s.

Considerable product innovation followed this

development, especially around accessories, new

lightweight materials, and cycle clothing (helmets, etc.).

The leisure cycle industry expanded further as the BMX

kids grew up and began demanding adult versions which

could travel off-road; this led to the development of the

mountain bike and to a resurgence of interest in cycling

as a leisure activity rather than as a mode of transport.

For manufacturers this came at a good time since the rise

of car ownership had impacted heavily on traditional

markets. It opened up a phase of product differentiation –

broadly into leisure and transport cycling but within these

categories into multiple variants. (We should not

underestimate the process innovation challenges posed

by trying to do this. For example, the National Bicycle

Company of Japan now offer 18 basic models, a choice of

19 colours and 6 different calligraphies – giving a

staggering potential choice of 11, 231, 862 variants!)

Innovation continues – for example, there is considerable

interest in recumbent bicycles where the rider lies down

on a low-level cycle, which is more efficient in terms of

energy transmission and aerodynamics; the resulting

design is capable of speeds in excess of 40km/hour.

Motorizing cycles with various kinds of electric devices

has been tried, notably with the ill-fated Sinclair C5;

although unsuccessful the concept of electric motor

assistance to pedal power has led to the relatively

successful Zeke device. But the pattern appears to have

stabilized again into a transitional/mature phase with

emphasis on product differentiation of an incremental

nature in specialized market niches, and in process

innovation towards cost reduction.

Given the 150-year history of the bicycle, with its patterns

of radical change followed by convergence and

consolidation, it would be foolish to suggest that today’s

product represents the end of the road for innovation in

this sector.

Essay:

Debate the arguments presented here and explore

how you would see the evolution of the bicycle.

Hint: go beyond the bike

This case is based on work by the Open

University/UMIST Design and Innovation Group.