To the uninitiated, the development of the Barbie doll may not seem like a major technological breakthrough. During her first eight years Barbie brought in $500 million. This little moneymaker was the product of simple observation by a mother named Ruth Handler.

Ruth Handler and her husband were already accomplished toy designers. Her husband, Elliot, made his fortune in furniture making. Ruth suggested making furniture for dollhouses. This led to- Mattel Creations (from the names of the company's two partners, Harold MATson and ELliot Handler, Ruth's husband). After several successful toy inventions, Mattel was growing rapidly. Ruth Handler's observational powers led to the 1959 invention of the Barbie doll and the astounding rise of Mattel in the corporate world.

Ruth Handler was watching her daughter, named Barbara (Barbie), playing with dolls. Barbara had lots of baby dolls to play with. Instead of playing with the baby dolls...