Read: Design driven innovation, on radical innovations

Design-driven innovation

Roberto Verganti is a well-known student of innovation management. His new book, ‘design driven innovation’, analyses the success of companies that introduce radical innovations in the market. Not technological innovations, but innovations of meanings. An example is the introduction of the Wii by Nintendo. Gaming with the Wii is a far cry from conventional gaming with a console: it is about social interaction and physical activity in the living room. It has completely changed the meaning of games, and in a few years, Wii conquered the market. In this book, Verganti mentions a lot of other examples of firms that produced this sort of radical innovations of meaning (mostly from the Italian furniture and home appliances industry).

‘Design’ obtained a lot of attention in the business world in the last years, and also cities and regions increasingly consider their design or ‘creative’ sector as key growth sectors and develop policies accordingly. Typically, design is seen as a differentiator, a way to make products look better. Designers and artists are able to deliver this. But to Verganti, design is not primarily about the ‘look’ of products (although of course its part of it); Rather, in his vision, design means ’making sense of things’.

Creating radically different meanings –making new sense of things- is potentially very profitable –see Apple and Nintendo- but how to do it? One thing NOT to do is to set up focus groups and involve users/consumers in innovation. This works for incremental innovations but not for radical ones. Rather, firms need to make new ‘propositions’ to the public. Of course this is risky: how do you know if the public will like it, and buy it? One of Verganti points is that firms need to immerse themselves in the design discourse. Rather than hiring an established top designer, firms need to actively link up with circles of artists, designers, architects and other people who are some kind of modern prophets (he calls them ‘interpreters’): they interpret the world, their imaginary power may help you to propose new meanings. Alessi, the famous Italian innovator of household appliances, does this very actively, and its CEO plays a key role personally. It’s not only about interpreting; firms need the ability to select the right interpreters and create their own vision. Linking up with these interpretors –artists, designers, architects etc.- can also help to seduce the public and prepare them to accept new propositions. These people influence global trends, and create new images that appeal to people. Harnessing their ‘seductive’ power is key.

Verganti’s book is interesting and inspiring. It has also some implications for regions and cities. One is that cities or regions with a rich cultural life and an active ‘design discourse’ are more inspiring environments for radical innovators. Verganti mentions Milan, Copenhagen, Helsinki and San Francisco explicitly but the list is longer of course. Think about the implications for regional innovation policy.

Check this site for more: http://www.designdriveninnovation.com/