MT5003 Creativity and Innovation

Innovation for the Silver-Haired Market

LIM CHING WU LESLIE
g0603039@nus.edu.sg
HT0063039Y
Lecturer: Prof HANG CHANG CHIEH
Centre of Management of Science & Technology
MT5003 Creativity and Innovation

Leading authority on innovation and entrepreneurship, Professor Peter Drucker, outlined

seven sources or places to look for innovative opportunities [1]. These opportunities should

be monitored by those interested in forming an entrepreneurial venture. The seven sources

include: 1) the unexpected, 2) the incongruity, 3) innovation based on process needs, 4)

changes in industry or market structure, 5) demographics, 6) changes in perception, mood

and meaning, and 7) new knowledge. The first four arise from opportunities within the

industry, while the last three lies in the societal environment. In particular, this article will

examine the examples of products that are designed for the middle-class silver-haired market,

due to the changes in demographics. By observing and predicting the consequences of

changes in population, in terms of size, age structure, composition, employment, education

status and income, it is possible to create innovative opportunities. An example to illustrate

this can be found in the toy industry of Japan.

Affected by the falling birthrate, popular computer games and other foreign brands, Japanese

toy makers are tapping into the unlikely new market – the elderly. The first of 10-million

baby-boomers born between 1947 and 1951 are hitting retirement age in 2007. The upside to

this change is that retirees can start spending their vast disposable incomes from savings and

pensions. A survey by an advertising agency Dentsu, Inc., estimated the economic effect of

baby-boomer retirement at about ¥7.7 trillion [2].

In December 2004, Business Design Laboratory Co released the ifbot, a 45-cm robot in

astronaut suit, designed to converse with the elderly [3]. It is capable of responding to

questions and making conversations about the weather. It is also programmed with large

repertoire of songs, quizzes and old news stories, to help seniors with their mental agility. It

is used in a Japanese nursing home. However it was left mostly unused in the past two years

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Centre of Management of Science & Technology
MT5003 Creativity and Innovation

after initial interest by the residents for a month. Stuffed animals are more popular with

residents. The price tag of ¥495,000 for each ifbot may also be too costly for the middle-class

aged Japanese [4].

At ¥8,500 each, Takara-Tomy released the Yumel doll in 2005 which is more affordable for

the less affluent aged in Japan [5]. The Yumel doll, which looks like a sleepy baby boy, is a

talking nighttime companion. It is equipped with six sensors and and IC chip to accurately

keep track of owners’ sleeping patterns. The eyes of the Yumel dolls can open and close, and

it is capable of 1,200 soothing phrases. 90% of Yumel dolls owners are women, aged over 50.

Their children have mostly grown up and left home, and they do not talk much to their

spouses. The Yumel doll helps in communication.

Other examples of toy robots developed for the aged population are Takara-Tomy’s Healing

Partner Dacky [6] (a robotic pet which response to touch and verbal communication), and

National Institute of Advanced Industrial Science and Technology’s (AIST) seal-type robot

Paro used for robot therapy [7].

With estimated of 40% of population over 65 by 2055 [8], Japanese researchers are building

robots smart enough to serve the needs of the elderly. The other issue associated with the

aging population is the shrinking of the labors force. This represents another opportunity for

innovations of new robots which will play a major role when there are not enough people to

do those jobs [9]. Besides these issues, there are other consumer-driven healthcare

innovations arising from the aging population, such as products and medical procedures to

maintain youthfulness. By studying the various impacts of aging population, there are rooms

for many more innovations.

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Centre of Management of Science & Technology
MT5003 Creativity and Innovation

References

[1] P. F. Drucker, Innovation and Entrepreneurship. Collins, 2006.

[2] T. McNicol, Toys-for-Adults Come of Age, ACCJ Journal July 2006, 2006.

[3] Business Design Laboratory ifbot Product Details, 2007.

http://www.business-design.co.jp/en/product/001/index.html
Retrieved on 15 Oct 2007.

[4] Robots turns off senior citizens in aging Japan, Reuters, 20 Sep 2007.
http://www.reuters.com/article/lifestyleMolt/idUST29547120070920?pageNumber=1
Retrieved on 15 Oct 2007.

[5] Japan’s toys for the elderly, BBC News, 30 Apr 2006.
http://news.bbc.co.uk/2/hi/business/4919606.stm
Retrieved on 15 Oct 2007.

[6] Healing Partner Dacky, CScout Japan Online Shop, 2007.

http://www.kilian-nakamura.com/catalog/healing-partner-dacky-robot-pet-p-32.html
Retrieved on 16 Oct 2007.

[7] Seal-type robot “Paro” to be marketed with best healing effect in the world, National
Institute of Advanced Industrial Science and Technology, 17 Sep 2004.
http://www.aist.go.jp/aist_e/latest_research/2004/20041208_2/20041208_2.html
Retrieved on 16 Oct 2007.

[8] Factbox: Aging Japan: Key facts on the population trend, Reuters, 12 Sep 2007.
http://www.reuters.com/article/technologyNews/idUST26814120070912
Retrieved on 16 Oct 2007.

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Centre of Management of Science & Technology
MT5003 Creativity and Innovation

[9] Japan eyes robots to support aging population, Reuters, 12 Sep 2007.
http://www.reuters.com/article/technologyNews/idUST27585420070912?pageNumber=2&sp
=true
Retrieved on 16 Oct 2007.

Cover Graphic from Takara-Tomy.

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