24/03/2009

Design Driven Innovation

The Power of the Elite Circles

Roberto Verganti
Professor of Management of Innovation Politecnico di Milano Chairman PROject Science roberto.verganti@polimi.it www.verganti.it

Roberto Verganti, Politecnico di Milano

Imperatives of Management of Innovation

Innovation must be user-centred The crowd outperform the elite

Roberto Verganti, Politecnico di Milano

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Different paths to innovation

Apple market research consisted of Steve looking in the mirror every morning and asking himself what he wanted.
A Marketing Manager at Apple

We do not think most users will miss the optical drive. We do not think they will need an optical drive.
Steve Jobs, Mac World Conference 2008
Roberto Verganti, Politecnico di Milano

Different paths to innovation

Market? What market! We do not look at market needs. We make proposals to people
Ernesto Gismondi, Chairman Artemide
Roberto Verganti, Politecnico di Milano

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Agenda

Design and Innovation Strategies Design-Driven Innovation The Power of the Elite Circles

Roberto Verganti, Politecnico di Milano

Agenda

Design and Innovation Strategies Design-Driven Innovation The Power of the Elite Circles

Roberto Verganti, Politecnico di Milano

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Classic Theory of Innovation Strategy

Radical Improvement

TECHNOLOGY PUSH PERFORMANCE (technology)

Incremental Improvement
Roberto Verganti, Politecnico di Milano

MARKET PULL user centered

Roberto Verganti, Politecnico di Milano

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Sales of games consoles

Dec 2006

Dec 2007

Roberto Verganti, Politecnico di Milano

Design
The etymology of design goes back to the latin de + signare and means making something, distinguishing it by a sign, giving it significance, designating its relation to other things, owners, users or gods. Based on this original meaning, one could say: design is making sense (of things).

Klaus Krippendorff, Design Issues, 1989

Roberto Verganti, Politecnico di Milano

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Innovation strategy
Radical Improvement

FUNCTION (technology)

Incremental Improvement

Adaptation to the evolution of socio-cultural models

Generation of new meanings

Roberto Verganti, Politecnico di Milano

MEANINGS (languages)

Radical Improvement

PERFORMANCE (technology)

Incremental Improvement

Adaptation to the evolution of socio-cultural models MEANINGS (languages)

Generation of new meanings

Roberto Verganti, Politecnico di Milano

24/03/2009

Agenda

Design and Innovation Strategies Design-Driven Innovation The Power of the Elite Circles

Roberto Verganti, Politecnico di Milano

Innovation strategy
Radical Improvement

FUNCTION (technology)

Incremental Improvement

Adaptation to the evolution of socio-cultural models

Generation of new meanings

Roberto Verganti, Politecnico di Milano

MEANINGS (languages)

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Alessi: Family Follows Fiction

Roberto Verganti, Politecnico di Milano

Understanding user needs

Each object represents a tendency, a proposal and an indication of progress which has a more cultural resonance
Alberto Alessi

We don't use consumer focus groups. We got a lot of feedback from developers in the industry.
Shigeru Miyamoto, Senior Marketing Director at Nintendo

When we showed a glimpse of it at the Tokyo Game Show

in September, 2005, there was a stunned silence. It was as though the audience didn't know how to react.
Satoru Iwata, President and CEO, Nintendo.

Roberto Verganti, Politecnico di Milano

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Understanding user needs

When we showed an early prototype to customers, they asked if they could see a finished upholstered model instead of a semi-finished prototype. They could not believe that was the final version
Bob Wood, VP Research Design & Development of Herman Miller International

Its really hard to design products by focus groups. A lot of times, people dont know what they want until you show it to them.
Steve Jobs, CEO, Apple

Innovation strategy

Radical Improvement

TECHNOLOGY PUSH

PERFORMANCE (technology)

DESIGN DRIVEN
Incremental Improvement

MARKET PULL user centered

Adaptation to the evolution of socio-cultural models MEANINGS (languages)

Generation of new meanings

Roberto Verganti, Politecnico di Milano

24/03/2009

Agenda

Design and Innovation Strategies Design-Driven Innovation The Power of the Elite Circles

Roberto Verganti, Politecnico di Milano

Understanding user needs

User centered

Design driven
Interpreter

Firm

Users Context of use Firm People Context of life

Now
Norman and Draper 1986, Zaltman 1997, Patnaik and Becker 1999, Kelley 2001, Sade 2001, Seybold 2001, Vredenburg, Isensee and Righi 2002, Chayutsahakij and Poggenpohl 2002, Khumar and Whitney 2003 Zaccai and Lojacono 2004, Veryzer and Boria de Mozota 2005

Roberto Verganti, Politecnico di Milano

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The interpreters and the design discourse

C u l t u ra l P r o d u c t i o n
Cultural organizations Artists
Sociologists Anthropologists Marketers

Media

Education and research

People

Firm
Technology Suppliers Designers Firms in other industries Retail and delivery Pioneering Projects

T ec h n o l o g y
Roberto Verganti, Politecnico di Milano

The best collaboration is not always open

Open

Innovation Mall

Community Innovation

Participation
Closed

Elite Circle

Consortia

Hierarchical
Source: Pisano and Verganti Harvard Business Review December 2008

Flat

Governance

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Key interpreters

Number of interpreters Skewed Distribution

Key Interpreters

Quality of the interpretation

Roberto Verganti, Politecnico di Milano

Forward looking researchers

Innovators
% of products designed by external designers Average number of external design firms in the portfolio % of designers with a degree in architecture % of designers with a degree in engineering % of designers with a degree in industrial design % of non-Italian designers 90%

Imitators
77%

11,9

4,4

45%

33%

6%

0%

31% 46%

52% 16%

Roberto Verganti, Politecnico di Milano

Source: DellEra and Verganti Journal of Product Innovation Management, 2007

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Memphis
I'm always offended when they say that I play when I do Memphis work; actually I 'm very serious I'm never more serious than when I do Memphis work. It's when I design machines for Olivetti that I play

Ettore Sottsass

Roberto Verganti, Politecnico di Milano

Researchers
Ettore Sottsass needed some funding for Memphis. I gave them money and let them free to do what they wanted. To me this was a laboratory
Ernesto Gismondi, Chairman, Artemide

Roberto Verganti, Politecnico di Milano

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1980
Roberto Verganti, Politecnico di Milano

1991

1998

Elite research circles

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The core competences of the interpreters

Research circle (Radicals) Output Process Dynamics Assets Creative team

Proposals, Vision Depth, Research Convergence Knowledge Scholar Relationships

Answers. Idea Speed, Brainstorming Divergence Methodology Neophyte Processes N and variety of ideas Culturally neutral Playing with the existing

Quality metrics Vision of society Attitude towards paradigms

Robustness of vision Strong Challenging the dominant

Roberto Verganti, Politecnico di Milano

Conclusions
Meanings do change - radically

Radical Improvement

FUNCTION (technology)
Incremental Improvement

Adaptation to the evolution of socio-cultural models

Generation of new meanings

MEANING (language)

Roberto Verganti, Politecnico di Milano

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Conclusions
Meanings do change- Radically

Innovation does not necessarily imply getting closer to users

User centered

Design driven

Interpreter

Firm

Users Firm Users

Roberto Verganti, Politecnico di Milano

Conclusions
Meanings do change - Radically Innovation does not necessarily imply getting closer to users

A process based on relational assets with key interpreters

Cu lt u ra l Pr o d uc t io n
Cultural org anizations Artists
Sociologists Anthropol ogists Marketers

Media

Ed ucation a nd research

People

Firm
Technology Suppliers Designers Firms in other industries

Retail and delivery Pioneering Projects

Roberto Verganti, Politecnico di Milano

T ec h n o l o g y

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Further references
Roberto Verganti

Design- Driven Innovation

Harvard Business Press, 2009

www.verganti.it

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