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© Roberto Verganti, Politecnico di Milano
Design driven innovationand management of business
creation activities
Roberto Verganti
Professor of Management of Innovation, Politecnico di MilanoDirector, MaDe In Lab
© Roberto Verganti, Politecnico di Milano
The importance of designin global competition
2
© Roberto Verganti, Politecnico di Milano
The importance of design
l Why design is important in contemporary society?
l How design can become a source of competitive advantage?
© Roberto Verganti, Politecnico di Milano
The strength of Italian design
“In an era of globalization, Italy has a major advantage: its design, unclonable and inimitable .....
design is invisible, an heritage that cannot be shared,
it assumes arts and crafts resourcesthat may be developed only in generations…”
John Kenneth Galbraith
3
© Roberto Verganti, Politecnico di Milano
…Northern Italy, is the centre of the design world.Not just because of the design that comes from Italy, but,
above all, because of its manufacturing culture;there is no other place in the world where you can find such a
vast array of manufacturers who know the value of design
Ron Arad
A success rooted in managerial practices
© Roberto Verganti, Politecnico di Milano
Agenda
Design and innovation
Design-based strategies
Breakthrough strategies: the approach
Breakthrough strategies: the process
4
© Roberto Verganti, Politecnico di Milano
Agenda
Design and innovation
Design-based strategies
Breakthrough strategies: the approach
Breakthrough strategies: the process
© Roberto Verganti, Politecnico di Milano
Design
FUNCTION(TECHNOLOGY)
FORM(STYLING)
USER(NEEDS)
5
© Roberto Verganti, Politecnico di Milano
© Roberto Verganti, Politecnico di Milano
“Every market-oriented company has understood that design is an advantage . As a result all companies can use it. Design must not only be the instrument that gives a nice form.
Rather it must anticipate a need, proposing a vision”
Carlotta De Bevilacqua, Vision Group, Artemide
“In a moment of total disarray in the world of design, we decided to work not only on the object, but more so on light, in particular its color”
Ernesto Gismondi, President, Artemide
Artemide Metamorfosi: The Human Light
6
© Roberto Verganti, Politecnico di Milano
“Every market-oriented company has understood that design is an advantage . As a result all companies can use it. Design must not only be the instrument that gives a nice form.
Rather it must anticipate a need, proposing a vision”
Carlotta De Bevilacqua, Vision Group, Artemide
“In a moment of total disarray in the world of design, we decided to work not only on the object, but more so on light, in particular its color”
Ernesto Gismondi, President, Artemide
Artemide Metamorfosi: The Human Light
© Roberto Verganti, Politecnico di Milano
Mini Sosia,i Ing. Castaldi Illuminazione (Based on Sosia, 1983) Design - Bertoni, 1996
7
© Roberto Verganti, Politecnico di Milano
Language MeaningsMessage
Metallic
Formal simplicity
Large size
Airing grids
I’m a large industrial product
Industrial is robust, durable
Big is beautiful (and luxurious)
Large-multifunctional rooms
home ? workplace
Post-industrial art
© Roberto Verganti, Politecnico di Milano
Design
FUNCTION(TECHNOLOGY)
USER(NEEDS)
MESSAGE(LANGUAGE)
FORM(STYLING)
MeaningsSense, personality, identity, emotion, valuesSigns: indexes, symbols, icons
8
© Roberto Verganti, Politecnico di Milano
Agenda
Design and innovation
Design-based strategies
Breakthrough strategies: the approach
Breakthrough strategies: the process
© Roberto Verganti, Politecnico di Milano
Adaptation to the evolution of
socio-cultural models
MEANINGS (languages)
Incremental Improvement
Radical Improvement
FUNCTION (technology)
Generation of new meanings
Innovation strategy
9
© Roberto Verganti, Politecnico di Milano
Adaptation to the evolution of
socio-cultural models
MEANINGS (languages)
Incremental Improvement
Radical Improvement
FUNCTION (technology)
Generation of new meanings
Innovation strategy
© Roberto Verganti, Politecnico di Milano
“We were aware of … having come to the end of the world of design as it had been us ed up till then We felt the need to shake off our parameters, to think futurably, released from style ….”
“At last the route to be followed for the new workshop - that of "the object-toy" - became clear.And it would be conceived beyond aesthetics or style .
‘In a room full of objects a child chooses one to relieve his boredom and solitude;why that object in particular?’ ”
Alberto Alessi
Alessi: Family Follows Fiction
10
© Roberto Verganti, Politecnico di Milano
Agenda
Design and innovation
Design-based strategies
Breakthrough strategies: the approach
Breakthrough strategies: the process
© Roberto Verganti, Politecnico di Milano
Knowledge about user needs
“Market? What Market? We do not look at market needs.We make proposals to People”Ernesto Gismondi, President, Artemide
“Working within the metaproject transcends the creation of an object purely to satisfy a function and necessity.
Each object represents a tendency, a proposal and an indication of progress
which has a more cultural resonance”Alberto Alessi
11
© Roberto Verganti, Politecnico di Milano
Understanding user needs
The only time we did market research was with Beogram 4000 (in 1972). Marketing people said it would sold 15 units in Denmark and 50 in the world.
It turned out of being one of our most successful productsPaul Ulrik Skifter, Former CFO Bang & Olufsen
© Roberto Verganti, Politecnico di Milano
Innovation asgeneration and integration of knowledge
TECHNOLOGY
Design push (Radical design driven innovation)
LANGUAGE
NEEDS
Technology push Market Pull
TECHNOLOGY
LANGUAGE
NEEDS
TECHNOLOGY
LANGUAGE
NEEDS
12
© Roberto Verganti, Politecnico di Milano
Adaptation to the evolution of
socio-cultural models
MEANINGS (languages)
Incremental Improvement
Radical Improvement
PERFORMANCE (technology)
Generation of new meanings
MARKET PULL user centered
TECHNOLOGY PUSH
DESIGN PUSH design driven
Innovation strategies
© Roberto Verganti, Politecnico di Milano
Understanding user needs
Socio-cultural context
Socio-cultural context
Firm Users
Interpreter
User centered
Firm Users
Design driven
Now
13
© Roberto Verganti, Politecnico di Milano
The interpreters and the design discourse
FirmsUsers
DesignServices
Designers Publishing
Education &Research
Showrooms
Suppliers
EventsArtists
Firms in otherindustries
© Roberto Verganti, Politecnico di Milano
A long chain of interpreters
Piet MondrianComposition with Yellow, 1930
Artemide, Design by Gio PontiFato, 1969
“Poets are the unacknowledged legislators of the world”
Percy Bysshe Shelley, 1792-1822
The Defense of Poetry, 1819
14
© Roberto Verganti, Politecnico di Milano
Agenda
Design and innovation
Design-based strategies
Breakthrough strategies: the approach
Breakthrough strategies: the process
© Roberto Verganti, Politecnico di Milano
The process
Interpreter
Interpreter
DevelopmentTHINK
LISTEN
NewLanguagesand
Meanings
NewProducts
USER
KnowledgeBase
Interpreter
Interpreter
Interpreter
Interpreter
Interpreter
TALK
Interpreter
15
© Roberto Verganti, Politecnico di Milano
The process
Interpreter
Interpreter
DevelopmentTHINK
LISTEN
NewLanguagesand
Meanings
NewProducts
USER
KnowledgeBase
Interpreter
Interpreter
Interpreter
Interpreter
Interpreter
TALK
Interpreter
Identify key interpreters
Immersion
Attract and nurturekey interpreters
© Roberto Verganti, Politecnico di Milano
Very often design is the most immediate way of defining what products become in people's minds
Our goal wasn't just to differentiate our product, but to create products thatpeople would love in the future.
Jonathan Ive, VP of Industrial Design, Apple
16
© Roberto Verganti, Politecnico di Milano
Language Brokering
© Roberto Verganti, Politecnico di Milano
Not only designers
Flat TV with Ambilight, 2004
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© Roberto Verganti, Politecnico di Milano
Listen:attract and nurture key interpreters
Money is not enough
Act as an interpreter
“Alessi doesn’t make us feel as if we work for Alessi. Rather, we feel as if Alessi is working for us!”
Alessandro Mendini, designer
(source HBS case study 9-504-019)
© Roberto Verganti, Politecnico di Milano
The crucial role of technologies
“The research carried out by our engineering department was enormous and very difficult.
Finding the material with the right technical characteristics and the right mould was a real
undertaking. Just imagine, not even Bayer would have guaranteed the result.”
Giulio CastelliHonorary President and founder, Kartell
Bookworm, design Ron Arad
La Marie, design Philippe Starck
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© Roberto Verganti, Politecnico di Milano
Immersion
“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
The process
Interpreter
Interpreter
DevelopmentTHINK
LISTEN
NewLanguagesand
Meanings
NewProducts
USER
KnowledgeBase
Interpreter
Interpreter
Interpreter
Interpreter
Interpreter
TALK
Interpreter
Create your own vision through research projects
19
© Roberto Verganti, Politecnico di Milano
Think
Interpreter
Interpreter
Development
LISTEN(immersion)
NewLanguagesand
Meanings
NewProducts
USER
KnowledgeBase
Interpreter
Interpreter
Interpreter
Interpreter
Interpreter
TALK(cultural products)
Interpreter
THINK (research)
Build Share Connect Select Embody
© Roberto Verganti, Politecnico di Milano
Artemide Metamorfosi
The Human Light
Technology Kit
Light FieldsDiscussion group on Socio-cultural models
Research on light control and filtering
Developmentof several products
Ernesto Gismondi, President , engineerCarlotta de Bevilacqua, Vision Group, architectAndrea Branzi, architectMichele De Lucchi, architectPierluigi Nicolin, architectDenis Santachiara, architectLuca Vercelloni, architectEzio Manzini, Architect, Engineer, Professor of Design
Coordinated by Paolo Inghilleri, medician and psycologist
20
© Roberto Verganti, Politecnico di Milano
Alessi Kettle model 9093
1. “Listen”Alessi’s
immersion
Design Discourse in
Milan(Memphis etc.)
2. Research: “Tea and Coffe Piazza”
New Visionand Language
4. ProductDevelopmentfor the Kettle
Model 9093
Global Design Discourse(architectsoverseas )
3. “Talk” to the community
-Books-Exhibitions
-Limited series-…
© Roberto Verganti, Politecnico di Milano
Alessi Family Follows Fiction
Meta-Project Product Development
Alberto Alessi, President , law degreeAlessandro Mendini, architect
Luca Vercelloni, designerMarco Migliari, designerLaura Polinoro, background in art, theater and dance
Family Follows Fiction
Research Workshop
“Reflection on Franco Fornari's theory of affective codes and Winnicott's writings on traditional objects and paradoxical thinking, provided us with further timely instruments of analysis”.
“This workshop started in February 1991 and, after talks and reflections with Luca Vercelloni and Marco Migliari, a project task support pamphlet was prepared and implemented in April of the same
year, with other designers”
Alberto Alessi
21
© Roberto Verganti, Politecnico di Milano
Tools
Interpreter
Interpreter
LISTEN(immersion)
NewLanguagesand
Meanings
KnowledgeBase
Interpreter
Interpreter
Interpreter
Interpreter
Interpreter
TALK(cultural products)
THINK (research)
Build Share Connect Select Embody
DESIGN
DIRECTION
WORKSHOP
KNOWLEDGE
REPOSITORY
PROCESS
LANGUAGE
MINING
© Roberto Verganti, Politecnico di Milano
The process
Interpreter
Interpreter
DevelopmentTHINK
LISTEN
NewLanguagesand
Meanings
NewProducts
USER
KnowledgeBase
Interpreter
Interpreter
Interpreter
Interpreter
Interpreter
TALK
Interpreter
Talk by cultural products
Exploit the seductive power of the interpreters
22
© Roberto Verganti, Politecnico di Milano
The process
Interpreter
Interpreter
DevelopmentTHINK USER
Interpreter
Interpreter
Interpreter
Interpreter
Interpreter
TALK
Interpreter
Talk by cultural products
Exploit the seductive power of the interpreters
BooksShowroomsConcept products PrototypesArticlesExhibitionsSpecial projects
© Roberto Verganti, Politecnico di Milano
Talk
23
© Roberto Verganti, Politecnico di Milano
Conclusions
l Every product has a meaning. Companies that do not realize this, simply do not manage it nor innovate it
Adaptation to the evolution of
socio-cultural models
MEANING (language)
Incremental Improvement
Radical Improvement
FUNCTION (technology)
Generation of new meanings
© Roberto Verganti, Politecnico di Milano
Conclusions
l Every product has a meaning. Companies that do not realize this,simply do not manage it nor innovate it
l Design does not necessarily imply getting closer to users (at the expenses of people and innovation)
Firm Users
Interpreter
User centered
Firm Users
Design driven
24
© Roberto Verganti, Politecnico di Milano
Conclusions
l Every product has a meaning. Companies that do not realize this,simply do not manage it nor innovate it
l Design does not necessarily imply getting closer to users
l A networked research process: exploit outside resources through long term network investment(hardly measurable)
Firms
Users
DesignServices
Designers Publishing
Education &Research
Showrooms
Suppliers
Events & ArtExhibitions
Firms in otherindustries
© Roberto Verganti, Politecnico di Milano
Conclusions
l Every product has a meaning. Companies that do not realize this, simply do not manage it nor innovate it
l Design does not necessarily imply getting closer to users
l A networked research process
l A strategic managerial process:you do not need to be a designer or a sociologist
Luca Di MontezemoloChariman Ferrari
Law
Alberto AlessiChairman Alessi
Law
Andrea PininfarinaChairman Pininfarina
Engineering
Ernesto GismondiChairman Artemide
Engineering
Jorma OlillaChairman and CEO Nokia
Political Science
25
© Roberto Verganti, Politecnico di Milano
Design driven innovationand management of business
creation activities
Roberto Verganti
Professor of Management of Innovation, Politecnico di MilanoDirector, MaDe In Lab