Design and competitive advantage
Collaborative strategies enabling radical innovation of meanings




                     Claudio Dell’Era
           MaDe In Lab – MIP Politecnico di Milano
Agenda



• MaDe In Lab – MIP Politecnico di Milano




• Design and competitive advantage




• Collaborative strategies: knowledge diversity and innovation




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                          2
Who we are

• MaDe In Lab is the laboratory of MAnagement of DEsign and INnovation developed
  in the School of Management of the Politecnico di Milano

• Its mission is to educate and coach current and future managers on visioning,
  developing, implementing and managing innovative strategies and processes based
  on both the technological and the cognitive, emotional, experiential, symbolic
  dimension of products, services and brands

• It coaches managers and companies improving their capabilities to innovate. This
  improvement requires a real empowerment of people and organizations

• It offers different education formats to those people that want to valorize individual
  and team creative skills in order to improve the capability to use innovation and
  design as tools to generate competitive advantage




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                           3
Competences

   • MaDe In Lab believes that the interaction and integration of design and innovation
     is paramount for the development and growth of firms in turbulent and highly
     competitive business environments

   • Education programs and Coaching activities are organized in the following
     disciplinary areas

                 Design                                  Innovation                       Science, Research and
               Management                               Management                         Technology Transfer
                                             • Strategic management of innovation   • Strategic management of research
• Development of an innovation-
                                             • Identification of new market           and development activities
  oriented culture
                                               opportunities                        • Organization and evaluation of
• Management of individual and team
                                             • Process innovation                     research and development activities
  creativity
                                             • Measurement of innovation            • Technology foresight
• Valorization of design Scenario
                                               performances                         • Development of new technological
  building
                                             • New product and service                scenarios and Roadmapping
• Management of creative resources
                                               development                          • Technology transfer
• Communication of the project value
                                             • Product architecture design          • Management of knowledge producers
• Identification of socio-cultural trends
                                             • Project organization                 • Innovation finance
• User needs analysis
                                             • Project planning                     • Intellectual Property Rights
• Development of new brand identity
                                             • Project execution and control          management
                                             • Risk project management              • Innovation policies

   MaDe In Lab - MIP Politecnico di Milano
   Claudio Dell'Era                                            4
Services

• Education programs in several formats, both
  dedicated to individuals and companies that
  want to develop capabilities on visioning,
  developing, implementing and managing
  innovative strategies and processes. The
  education programs are dedicated both to
  individuals that want to improve their capabilities
  in design and innovation management (OPEN
  Education), and companies that want to face
  concrete problems in project and innovation
  management adopting advanced approaches,
  methodologies and tools (CORPORATE
  Education)

• CORRPORATE Coaching in collaboration with
  companies that want to know and adopt
  advanced design and managerial tools

MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                           5
Agenda



• MaDe In Lab – MIP Politecnico di Milano




• Design and competitive advantage




• Collaborative strategies: knowledge diversity and innovation




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                          6
Traditional dichotomy



                                          Technology Push




                             FUNCTIONS                                         USERS
                           (Technologies)                                     (Needs)



                                                                Market Pull




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                            7
Growing relevance of aesthetic aspects




                                            FUCNTIONS
                                          (Technologies)



                                                                USERS
                                                               (Needs)


                                            FORMS
                                            (Styles)




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                           8
Relevance of design management




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                          9
Dominant interpretation of design management




                                                   Ideas
User-Centered                                   (creativity)




 MaDe In Lab - MIP Politecnico di Milano
 Claudio Dell'Era                          10
Growing relevance of aesthetic aspects




                                            FUCNTIONS
                                          (Technologies)



                                                                 USERS
                                                                (Needs)


                                            FORMS
                                            (Styles)




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                           11
An interesting case study:
  console game industry




                                                                       Nintendo Wii, 2006




Sony Playstation 3, 2006                    Microsoft Xbox 360, 2005

  MaDe In Lab - MIP Politecnico di Milano
  Claudio Dell'Era                                             12
Radical innovation of product meanings


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

                                                                                                                                                 Krippendorff, 1989
            MESSAGGES                                     MEANINGS
            (Languages)
                                                          Symbolic value
SIGNS: Indexes, Symbols, Icons                            Emotional value

                    FORMS
                    (Styles)




                                          Olins, 1990; Glasmeier, 1991; Kapferer, 1994; Aaker, 1996; Karjalainen, 2001 and 2004; Muller, 2001; Warell, 2001; Nåbo, 2002; Holt, 2004;
MaDe In Lab - MIP Politecnico di Milano   McCormack and Cagan, 2004; Verganti, 2003 and 2006; Geels, 2004; Karjalainen and Warell, 2005; Pierce, 1935; Csikszentmihalyi and
Claudio Dell'Era                            Rochberg-Halton, 1981; Butter, 1987; Krippendorff, 1984 and 1989; Heskett, 1990; Van Onck, 1994 and 2000; Cooper and Press, 1995;
                                                                                    13
                                          Margolin and Buchanan, 1995; Monö, 1997; Gautvik, 2001; Friedman, 2003; Gotzsch, 2003; Karjalainen, 2003; Lloyd and Snelders, 2003
Technologies and meanings


                                                     Radical
                                                improvement



                                      TECHNOLOGIES



                                                  Incremental
                                                improvement




                                                                Incremental                 Radical
                                                                  change                    c hange


                                                                              MEANINGS
                                                                          Source: Verganti R (2009). Design Driven Innovation.
MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                         14
                                                                                         Harvard Business Press, Boston, USA
Strategic approaches towards innovation


                                                     Radical
                                                improvement        Technology
                                                                      Push

                                      TECHNOLOGIES
                                                                                              Design
                                                                                              Driven

                                                  Incremental     Market Pull
                                                improvement     (user centered)




                                                                Incremental                  Radical
                                                                  change                     c hange


                                                                              MEANINGS
                                                                           Source: Verganti R (2009). Design Driven Innovation.
MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                         15
                                                                                          Harvard Business Press, Boston, USA
Artemide: Metamorfosi

                                               Market? What Market? We do not look at
                                                  market needs. We make proposals to
                                                                              people

                                               Ernesto Gismondi, President of Artemide




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                          16
Alessi: Family Follows Fiction

                                                         Working within the meta-project
                                                    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, CEO of Alessi




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                          17
Apple: MacBook Air

                                               We have a lot of customers, and we have a
                                                   lot of research into our installed base.
                                                        But in the end, for something this
                                                    complicated, it’s really hard to design
                                                        products by focus groups. A lot of
                                                     times, people don’t know what they
                                                          want until you show it to them

                                                                 Steve Jobs, CEO of Apple




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                          18
Nintendo Wii wins proposing new meanings:
  reality vs virtuality, socialization vs individualism, …




                                                                       Nintendo Wii, 2006




Sony Playstation 3, 2006                    Microsoft Xbox 360, 2005

  MaDe In Lab - MIP Politecnico di Milano
  Claudio Dell'Era                                             19
Nintendo Wii wins using simple technologies:
    price



                 600


                 500
Mean price ($)




                 400


                 300


                 200
                                                                                  WII
                 100
                                                                                  XBoX 360
                                                                                  PS3
                    0
                                2005           2006   2007   2008   2009   2010



                                                                                        Source: www.vgchartz.com
     MaDe In Lab - MIP Politecnico di Milano
     Claudio Dell'Era                                          20
Nintendo Wii wins generating an ecosystem:
sales of games (millions)


                    Console                         Game                   Company        Total
  1                       Wii                       Wii Sports              Nintendo       61,34
  2                       Wii                        Wii Play               Nintendo       27,10
  3                       Wii                        Wii Fit                Nintendo       22,57
  4                       Wii                     Mario Kart Wii            Nintendo       21,65
  5                       Wii                   Wii Sports Resort           Nintendo       14,46
  6                       Wii               New Super Mario Bros. Wii       Nintendo       13,23
  7                       Wii                      Wii Fit Plus             Nintendo       11,02
  8                   XBox360                        Halo 3                 Microsoft      10,90
  9                   XBox360             Call of Duty: Modern Warfare 2    Activision     10,20
 10                       Wii                Super Smash Bros. Brawl        Nintendo       9,39




                                                                                         Source: www.vgchartz.com
MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                                   21
Technology epiphanies


                                                               Game consoles as                  Game consoles as
                                                            passive immersion in a                active physical
                                                            virtual world for young              entertainment for
                                                                     adepts                          everyone




                                                  Radical
                                             improvement                                          Nintendo Wii


                                                                Playstation 3
                                                             Microsoft Xbox 360
                             PERFORMANCE
                              (technology)

                                                            Graphics
                                                             Speed                        MEMS accelerometers

                                              Incremental
                                             improvement

                                                                  Previous
                                                                 generation




                                                                 Adaptation                      Generation of new
                                                             to the evolution of                    meanings
                                                            socio-cultural models



                                                                                     MEANING
                                                                                    (language)




                                                                                                                     Source: Verganti R (2009). Design Driven Innovation.
MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                                               22
                                                                                                                                    Harvard Business Press, Boston, USA
Technology epiphanies



                                           Radical           Existing
                                      Improvement                               TECHNOLOGY Quiescent
                                                         or Immediate                      Meaning
                                                                                  EPIPHANY
                                                           Meaning


    PERFORMANCE




                                                               SUBSTITUTION
                                                               TECHNOLOGY
     (technology)




                                           Incremental      Existing                                                       Legenda:
                                          Improvement       Meaning
                                                                                                                                      = Purely Technology
                                                                                                                                        Push Strategy
                                                                                                                                      = Technology Push +
                                                                                                                                        Design Driven Strategy
                                                               TECHNOLOGY
                                                                SCREENING




                                                             Adaptation                 Generation of new
                                                         to the evolution of               meanings
                                                            socio-cultural
                                                               models


                                                                               MEANING
                                                                              (language)


                                                                                                            Source: Verganti R (2009). Design Driven Innovation.
MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                                               23
                                                                                                                           Harvard Business Press, Boston, USA
Agenda



• MaDe In Lab – MIP Politecnico di Milano




• Design and competitive advantage




• Collaborative strategies: knowledge diversity and innovation




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                          24
User centered design vs. Design driven innovation


       User centered design                                     Design driven innovation


                                                                         Interpret




  Firm                                       Users              Firm                              Users


                                          Context of use                               Socio-cultural context



                                             Now                                              Future
                                                                                            (and past)

                                                                          Source: Verganti R (2009). Design Driven Innovation.
MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                           25
                                                                                         Harvard Business Press, Boston, USA
Interpreters and design discourse


                                                Cultural Production


                                                                          Cultural          Sociologists
                                                                       organizations       Anthropologists
                                                                                             Marketers
                                                    Artists
                                                                                                              Media



                                           Education
                                          and research                                                                People
                                                                                  Firm

                                              Technology
                                                                                                             Retail and
                                               Suppliers
                                                                                                              delivery

                                                                                                 Designers
                                                              Pioneering      Firms in other
                                                               Projects         industries



                                                         Technology




                                                                                                             Source: Verganti R (2009). Design Driven Innovation.
MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                                                  26
                                                                                                                            Harvard Business Press, Boston, USA
Collaboration with creative resources



                                I believe that Italy, or more specifically Northern Italy, is still the centre of the
                                     design world, and I must say that it is not just because of the design that
                                  comes from Italy, but, above all, it is because of the manufacturing culture;
                                  there is no other place in the world where you can find such a vast array of
                                    craftsmen and manufacturers for all intents and purposes who know the
                                                                                                  value of design ...

                                                                                                          Ron Arad




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                                                                                    27
                                                                                                                     27
Identification and selection of creative resources


              Network of interpreters                       Management Practices
                                Debates                          Multiple voices
                                Bridges                      Brokers and mediators
                            Élite circles        Attract interpreters by acting as an interpreter




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                            28
Identification and selection of creative resources


              Network of interpreters                       Management Practices
                                Debates                          Multiple voices
                                Bridges                      Brokers and mediators
                            Élite circles        Attract interpreters by acting as an interpreter




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                            29
Moroso’s designers portfolio



Ron Arad                 Tord Boontje          Carlo Colombo         Tom Dixon             For Use               Enrico Franzolini
9 products               2 products            4 products            1 product             1 product             18 products
Free-lance designer      Free-lance designer   Free-lance designer   Free-lance designer   Free-lance designer   Free-lance designer
Israel                   Netherland            Italy                 Tunisia               Germany, Croatia      Italy
Other                    Industrial Design     Architecture          High School           Industrial Design     Architecture
Not only furniture       Not only furniture    Only furniture        Not only furniture    Only furniture        Only furniture
3 Sub-Sectors            1 Sub-Sectors         1 Sub-Sector          2 Sub-Sectors         3 Sub-Sectors         3 Sub-Sectors




Alfredo Häberli          Massimo Iosa Ghini    Roberto Lazzeroni     Ross Lovegrove        Javier Mariscal       Moroso Design Center
2 products               11 products           1 product             3 products            6 products            5 products
Free-lance designer      Free-lance designer   Free-lance designer   Free-lance designer   Free-lance designer   In-house designers
Argentina                Italy                 Italy                 Wales                 Spain                 Italy
Industrial Design        Architecture          Architecture          Industrial Design     Other                 Industrial Design
Only furniture           Not only furniture    Not only furniture    Only furniture        Not only furniture    Only furniture
2 Sub-Sectors            2 Sub-Sectors         3 Sub-Sectors         4 Sub-Sectors         2 Sub-Sectors




Marc Newson              Ludovica e Roberto    Marco Piva            Patricia Urquiola     Marcel Wanders
2 products               Palomba               1 product             23 products           1 product
Free-lance designer      1 product             Free-lance designer   Free-lance designer   Free-lance designer
England                  Free-lance designer   Italy                 Spain                 Netherland
High School              Italy                 Architecture          Industrial Design     Other
Not only furniture       Architecture          Not only furniture    Only furniture        Not only furniture
3 Sub-Sectors            Not only furniture    1 Sub-Sector          3 Sub-Sectors         4 Sub-Sectors
                         1 Sub-Sector



                                                                                                                                        Source: Dell’Era C and Verganti R (2010). Collaborative
    MaDe In Lab - MIP Politecnico di Milano
    Claudio Dell'Era                                                                         30
                                                                                                                                          strategies in design-intensive industries: knowledge
                                                                                                                                                diversity and innovation. Long Range Planning
Knowledge diversity and Innovation:
Osmosis

                                                  Innovators             Imitators

                                                          8

                                                          7
                               # Compaosso d’Oro Awards


                                                          6

                                                          5

                                                          4

                                                          3

                                                          2

                                                          1

                                                          0

                                                          -1

                                                          -2   0 – 20%    20 – 40%        40 – 60%   60 – 80%    80 – 100%

                                                                                          Osmosis

                                                                                                            Source: Dell’Era C and Verganti R (2010). Collaborative
MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                                                     31
                                                                                                              strategies in design-intensive industries: knowledge
                                                                                                                    diversity and innovation. Long Range Planning
Knowledge diversity and innovation:
Foreign Background

                                               Innovators              Imitators
                                                                      Imitators
                                                       8

                                                       7
                            # Compaosso d’Oro Awards


                                                       6

                                                       5

                                                       4

                                                       3

                                                       2

                                                       1

                                                       0

                                                       -1

                                                       -2   0 – 20%      20 – 40%        40 – 60%   60 – 80%    80 – 100%

                                                                            Foreign Background

                                                                                                           Source: Dell’Era C and Verganti R (2010). Collaborative
MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                                                    32
                                                                                                             strategies in design-intensive industries: knowledge
                                                                                                                   diversity and innovation. Long Range Planning
Knowledge diversity and innovation:
Educational Background

                                               Innovators               Imitators
                                                       8

                                                       7
                            # Compaosso d’Oro Awards


                                                       6

                                                       5

                                                       4

                                                       3

                                                       2

                                                       1

                                                       0

                                                       -1
                                                            0.0 – 0.2     0.2 – 0.4        0.4 – 0.6   0.6 – 0.8        0.8 – 1.0
                                                       -2

                                                                            Educational Background

                                                                                                                   Source: Dell’Era C and Verganti R (2010). Collaborative
MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                                                      33
                                                                                                                     strategies in design-intensive industries: knowledge
                                                                                                                           diversity and innovation. Long Range Planning
Knowledge diversity and innovation:
   Educational Background



                                                                                         Innovators              Imitators
% of products developed with external designers                                                90%                   77%

Mean number of external designers                                                              11,9                   4,4

% of products developed with designers who have a degree in architecture                       45%                   33%

% of products developed with designers who have a degree in industrial design                  31%                   52%

% of products developed with designers who have a degree in engineering                         6%                    0%




                                                                                Source: Dell’Era C and Verganti R (2010). Collaborative
   MaDe In Lab - MIP Politecnico di Milano
   Claudio Dell'Era                                      34
                                                                                  strategies in design-intensive industries: knowledge
                                                                                        diversity and innovation. Long Range Planning
Identification and selection of creative resources


              Network of interpreters                       Management Practices
                                Debates                          Multiple voices
                                Bridges                      Brokers and mediators
                            Élite circles        Attract interpreters by acting as an interpreter




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                            35
Identifying creative collaborators




                                                  Very often design is the most immediate way of
                                               defining what products become in people's minds
                                          It is important to understand that our goal wasn't just
                                              to differentiate our product, but to create products
                                                             that people would love in the future

                                                     Jonathan Ive, VP of Industrial Design, Apple




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                36
MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era
                          37
Identification and selection of creative resources


              Network of interpreters                       Management Practices
                                Debates                          Multiple voices
                                Bridges                      Brokers and mediators
                            Élite circles        Attract interpreters by acting as an interpreter




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                            38
Attracting creative collaborators




                                           Development paradigm of B&B Italia imposes that initial
                                                 ideas must be independent from any firm specific
                                          constraints […]. Every new idea has to come from outside
                                          the firm in order to be fresh and to be a challenge for the
                                                                  Centre Research and Development

                                               Federico Busnelli, Director of B&B Italia R&D Centre




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                   39
Attracting creative collaborators




                                      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




© 2010 MIP – Riproduzione riservata
Management of Design and Innovation
www.madeinlab.it                          40
References

•     The education programs proposed by MIP in the Management of
      Design and Innovation Area are based on advanced research projects
      developed by MaDe In Lab in the last 15 years. The relevance of these
      projects is demonstrated by the several publications on leading
      international journal such as Harvard Business Review, Management
      Science, Journal of Product Innovation, Long Range Planning, etc.

•     The international quality of the research developed by MaDe In Lab
      has been recently appreciated by Harvard Business Press that on
      August 2009 has published the book Design Driven Innovation -
      Changing the Rules of Competition by Radically Innovating what
      Things Mean by Roberto Verganti (www.designdriveninnovation.com)




MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                 41
References

•     Dell'Era C and Verganti R (2010). Diffusion of product signs in industrial networks: the advantage of the
      trend setter. European Journal of Innovation Management, forthcoming
•     Dell'Era C, Marchesi A and Verganti R (2010). Mastering technologies in design-driven innovations: how two
      Italian furniture companies make design a central part of their innovation process. Research Technology
      Management, forthcoming
•     Dell'Era C and Verganti R (2009). Collaborative strategies in design-intensive industries: knowledge
      diversity and innovation, Long Range Planning, Vol. 42, No. 6
•     Dell'Era C and Verganti R (2009). Design-driven laboratories: organization and strategy of laboratories
      specialized in the development of radical design- driven innovations. R&D Management, Vol. 39, No. 1, Pp.
      1-20
•     Dell'Era C and Verganti R (2009). The Impact of International Designers on Firm Innovation Capability and
      Consumer Interest. International Journal of Operations & Production Management, Vol. 29, No. 9, Pp. 870-
      893
•     Verganti R (2009). Design-Driven Innovation - Changing the Rules of Competition by Radically Innovating
      what Things Mean. Boston, MA: Harvard Business Press
•     Verganti R (2008). Design, Meanings, and Radical Innovation: a meta-model and a research agenda. Journal
      of Product Innovation Management, 25, 436-456
•     Dell'Era C and Verganti R (2007). Strategies of innovation and imitation of product languages. Journal of
      Product Innovation Management, Vol. 24, Pp. 580-599
•     Verganti R (2006). Innovating Through Design. Harvard Business Review, December 2006
•     Verganti R (2003). Design as brokering of languages: Innovation strategies in Italian firms. Design
      Management Journal, Vol. 13, No. 3
MaDe In Lab - MIP Politecnico di Milano
Claudio Dell'Era                                        42
Design and competitive advantage
Collaborative strategies enabling radical innovation of meanings




                     Claudio Dell’Era
           MaDe In Lab – MIP Politecnico di Milano

Design_and_competitive_advantage - Claudio Dell'Era at HCDI seminar 30 April 2012

  • 1.
    Design and competitiveadvantage Collaborative strategies enabling radical innovation of meanings Claudio Dell’Era MaDe In Lab – MIP Politecnico di Milano
  • 2.
    Agenda • MaDe InLab – MIP Politecnico di Milano • Design and competitive advantage • Collaborative strategies: knowledge diversity and innovation MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 2
  • 3.
    Who we are •MaDe In Lab is the laboratory of MAnagement of DEsign and INnovation developed in the School of Management of the Politecnico di Milano • Its mission is to educate and coach current and future managers on visioning, developing, implementing and managing innovative strategies and processes based on both the technological and the cognitive, emotional, experiential, symbolic dimension of products, services and brands • It coaches managers and companies improving their capabilities to innovate. This improvement requires a real empowerment of people and organizations • It offers different education formats to those people that want to valorize individual and team creative skills in order to improve the capability to use innovation and design as tools to generate competitive advantage MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 3
  • 4.
    Competences • MaDe In Lab believes that the interaction and integration of design and innovation is paramount for the development and growth of firms in turbulent and highly competitive business environments • Education programs and Coaching activities are organized in the following disciplinary areas Design Innovation Science, Research and Management Management Technology Transfer • Strategic management of innovation • Strategic management of research • Development of an innovation- • Identification of new market and development activities oriented culture opportunities • Organization and evaluation of • Management of individual and team • Process innovation research and development activities creativity • Measurement of innovation • Technology foresight • Valorization of design Scenario performances • Development of new technological building • New product and service scenarios and Roadmapping • Management of creative resources development • Technology transfer • Communication of the project value • Product architecture design • Management of knowledge producers • Identification of socio-cultural trends • Project organization • Innovation finance • User needs analysis • Project planning • Intellectual Property Rights • Development of new brand identity • Project execution and control management • Risk project management • Innovation policies MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 4
  • 5.
    Services • Education programsin several formats, both dedicated to individuals and companies that want to develop capabilities on visioning, developing, implementing and managing innovative strategies and processes. The education programs are dedicated both to individuals that want to improve their capabilities in design and innovation management (OPEN Education), and companies that want to face concrete problems in project and innovation management adopting advanced approaches, methodologies and tools (CORPORATE Education) • CORRPORATE Coaching in collaboration with companies that want to know and adopt advanced design and managerial tools MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 5
  • 6.
    Agenda • MaDe InLab – MIP Politecnico di Milano • Design and competitive advantage • Collaborative strategies: knowledge diversity and innovation MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 6
  • 7.
    Traditional dichotomy Technology Push FUNCTIONS USERS (Technologies) (Needs) Market Pull MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 7
  • 8.
    Growing relevance ofaesthetic aspects FUCNTIONS (Technologies) USERS (Needs) FORMS (Styles) MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 8
  • 9.
    Relevance of designmanagement MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 9
  • 10.
    Dominant interpretation ofdesign management Ideas User-Centered (creativity) MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 10
  • 11.
    Growing relevance ofaesthetic aspects FUCNTIONS (Technologies) USERS (Needs) FORMS (Styles) MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 11
  • 12.
    An interesting casestudy: console game industry Nintendo Wii, 2006 Sony Playstation 3, 2006 Microsoft Xbox 360, 2005 MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 12
  • 13.
    Radical innovation ofproduct meanings FUNCTIONS “The etymology of design goes back to the Latin de + signare and means making (Technologies) something, distinguishing it by a sign, giving it significance, designating its relation to other things, owners, users or goods. Based USERS on this original meaning, one could say: (Needs) design is making sense (of things).” Krippendorff, 1989 MESSAGGES MEANINGS (Languages) Symbolic value SIGNS: Indexes, Symbols, Icons Emotional value FORMS (Styles) Olins, 1990; Glasmeier, 1991; Kapferer, 1994; Aaker, 1996; Karjalainen, 2001 and 2004; Muller, 2001; Warell, 2001; Nåbo, 2002; Holt, 2004; MaDe In Lab - MIP Politecnico di Milano McCormack and Cagan, 2004; Verganti, 2003 and 2006; Geels, 2004; Karjalainen and Warell, 2005; Pierce, 1935; Csikszentmihalyi and Claudio Dell'Era Rochberg-Halton, 1981; Butter, 1987; Krippendorff, 1984 and 1989; Heskett, 1990; Van Onck, 1994 and 2000; Cooper and Press, 1995; 13 Margolin and Buchanan, 1995; Monö, 1997; Gautvik, 2001; Friedman, 2003; Gotzsch, 2003; Karjalainen, 2003; Lloyd and Snelders, 2003
  • 14.
    Technologies and meanings Radical improvement TECHNOLOGIES Incremental improvement Incremental Radical change c hange MEANINGS Source: Verganti R (2009). Design Driven Innovation. MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 14 Harvard Business Press, Boston, USA
  • 15.
    Strategic approaches towardsinnovation Radical improvement Technology Push TECHNOLOGIES Design Driven Incremental Market Pull improvement (user centered) Incremental Radical change c hange MEANINGS Source: Verganti R (2009). Design Driven Innovation. MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 15 Harvard Business Press, Boston, USA
  • 16.
    Artemide: Metamorfosi Market? What Market? We do not look at market needs. We make proposals to people Ernesto Gismondi, President of Artemide MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 16
  • 17.
    Alessi: Family FollowsFiction Working within the meta-project 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, CEO of Alessi MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 17
  • 18.
    Apple: MacBook Air We have a lot of customers, and we have a lot of research into our installed base. But in the end, for something this complicated, it’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them Steve Jobs, CEO of Apple MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 18
  • 19.
    Nintendo Wii winsproposing new meanings: reality vs virtuality, socialization vs individualism, … Nintendo Wii, 2006 Sony Playstation 3, 2006 Microsoft Xbox 360, 2005 MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 19
  • 20.
    Nintendo Wii winsusing simple technologies: price 600 500 Mean price ($) 400 300 200 WII 100 XBoX 360 PS3 0 2005 2006 2007 2008 2009 2010 Source: www.vgchartz.com MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 20
  • 21.
    Nintendo Wii winsgenerating an ecosystem: sales of games (millions) Console Game Company Total 1 Wii Wii Sports Nintendo 61,34 2 Wii Wii Play Nintendo 27,10 3 Wii Wii Fit Nintendo 22,57 4 Wii Mario Kart Wii Nintendo 21,65 5 Wii Wii Sports Resort Nintendo 14,46 6 Wii New Super Mario Bros. Wii Nintendo 13,23 7 Wii Wii Fit Plus Nintendo 11,02 8 XBox360 Halo 3 Microsoft 10,90 9 XBox360 Call of Duty: Modern Warfare 2 Activision 10,20 10 Wii Super Smash Bros. Brawl Nintendo 9,39 Source: www.vgchartz.com MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 21
  • 22.
    Technology epiphanies Game consoles as Game consoles as passive immersion in a active physical virtual world for young entertainment for adepts everyone Radical improvement Nintendo Wii Playstation 3 Microsoft Xbox 360 PERFORMANCE (technology) Graphics Speed MEMS accelerometers Incremental improvement Previous generation Adaptation Generation of new to the evolution of meanings socio-cultural models MEANING (language) Source: Verganti R (2009). Design Driven Innovation. MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 22 Harvard Business Press, Boston, USA
  • 23.
    Technology epiphanies Radical Existing Improvement TECHNOLOGY Quiescent or Immediate Meaning EPIPHANY Meaning PERFORMANCE SUBSTITUTION TECHNOLOGY (technology) Incremental Existing Legenda: Improvement Meaning = Purely Technology Push Strategy = Technology Push + Design Driven Strategy TECHNOLOGY SCREENING Adaptation Generation of new to the evolution of meanings socio-cultural models MEANING (language) Source: Verganti R (2009). Design Driven Innovation. MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 23 Harvard Business Press, Boston, USA
  • 24.
    Agenda • MaDe InLab – MIP Politecnico di Milano • Design and competitive advantage • Collaborative strategies: knowledge diversity and innovation MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 24
  • 25.
    User centered designvs. Design driven innovation User centered design Design driven innovation Interpret Firm Users Firm Users Context of use Socio-cultural context Now Future (and past) Source: Verganti R (2009). Design Driven Innovation. MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 25 Harvard Business Press, Boston, USA
  • 26.
    Interpreters and designdiscourse Cultural Production Cultural Sociologists organizations Anthropologists Marketers Artists Media Education and research People Firm Technology Retail and Suppliers delivery Designers Pioneering Firms in other Projects industries Technology Source: Verganti R (2009). Design Driven Innovation. MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 26 Harvard Business Press, Boston, USA
  • 27.
    Collaboration with creativeresources I believe that Italy, or more specifically Northern Italy, is still the centre of the design world, and I must say that it is not just because of the design that comes from Italy, but, above all, it is because of the manufacturing culture; there is no other place in the world where you can find such a vast array of craftsmen and manufacturers for all intents and purposes who know the value of design ... Ron Arad MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 27 27
  • 28.
    Identification and selectionof creative resources Network of interpreters Management Practices Debates Multiple voices Bridges Brokers and mediators Élite circles Attract interpreters by acting as an interpreter MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 28
  • 29.
    Identification and selectionof creative resources Network of interpreters Management Practices Debates Multiple voices Bridges Brokers and mediators Élite circles Attract interpreters by acting as an interpreter MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 29
  • 30.
    Moroso’s designers portfolio RonArad Tord Boontje Carlo Colombo Tom Dixon For Use Enrico Franzolini 9 products 2 products 4 products 1 product 1 product 18 products Free-lance designer Free-lance designer Free-lance designer Free-lance designer Free-lance designer Free-lance designer Israel Netherland Italy Tunisia Germany, Croatia Italy Other Industrial Design Architecture High School Industrial Design Architecture Not only furniture Not only furniture Only furniture Not only furniture Only furniture Only furniture 3 Sub-Sectors 1 Sub-Sectors 1 Sub-Sector 2 Sub-Sectors 3 Sub-Sectors 3 Sub-Sectors Alfredo Häberli Massimo Iosa Ghini Roberto Lazzeroni Ross Lovegrove Javier Mariscal Moroso Design Center 2 products 11 products 1 product 3 products 6 products 5 products Free-lance designer Free-lance designer Free-lance designer Free-lance designer Free-lance designer In-house designers Argentina Italy Italy Wales Spain Italy Industrial Design Architecture Architecture Industrial Design Other Industrial Design Only furniture Not only furniture Not only furniture Only furniture Not only furniture Only furniture 2 Sub-Sectors 2 Sub-Sectors 3 Sub-Sectors 4 Sub-Sectors 2 Sub-Sectors Marc Newson Ludovica e Roberto Marco Piva Patricia Urquiola Marcel Wanders 2 products Palomba 1 product 23 products 1 product Free-lance designer 1 product Free-lance designer Free-lance designer Free-lance designer England Free-lance designer Italy Spain Netherland High School Italy Architecture Industrial Design Other Not only furniture Architecture Not only furniture Only furniture Not only furniture 3 Sub-Sectors Not only furniture 1 Sub-Sector 3 Sub-Sectors 4 Sub-Sectors 1 Sub-Sector Source: Dell’Era C and Verganti R (2010). Collaborative MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 30 strategies in design-intensive industries: knowledge diversity and innovation. Long Range Planning
  • 31.
    Knowledge diversity andInnovation: Osmosis Innovators Imitators 8 7 # Compaosso d’Oro Awards 6 5 4 3 2 1 0 -1 -2 0 – 20% 20 – 40% 40 – 60% 60 – 80% 80 – 100% Osmosis Source: Dell’Era C and Verganti R (2010). Collaborative MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 31 strategies in design-intensive industries: knowledge diversity and innovation. Long Range Planning
  • 32.
    Knowledge diversity andinnovation: Foreign Background Innovators Imitators Imitators 8 7 # Compaosso d’Oro Awards 6 5 4 3 2 1 0 -1 -2 0 – 20% 20 – 40% 40 – 60% 60 – 80% 80 – 100% Foreign Background Source: Dell’Era C and Verganti R (2010). Collaborative MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 32 strategies in design-intensive industries: knowledge diversity and innovation. Long Range Planning
  • 33.
    Knowledge diversity andinnovation: Educational Background Innovators Imitators 8 7 # Compaosso d’Oro Awards 6 5 4 3 2 1 0 -1 0.0 – 0.2 0.2 – 0.4 0.4 – 0.6 0.6 – 0.8 0.8 – 1.0 -2 Educational Background Source: Dell’Era C and Verganti R (2010). Collaborative MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 33 strategies in design-intensive industries: knowledge diversity and innovation. Long Range Planning
  • 34.
    Knowledge diversity andinnovation: Educational Background Innovators Imitators % of products developed with external designers 90% 77% Mean number of external designers 11,9 4,4 % of products developed with designers who have a degree in architecture 45% 33% % of products developed with designers who have a degree in industrial design 31% 52% % of products developed with designers who have a degree in engineering 6% 0% Source: Dell’Era C and Verganti R (2010). Collaborative MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 34 strategies in design-intensive industries: knowledge diversity and innovation. Long Range Planning
  • 35.
    Identification and selectionof creative resources Network of interpreters Management Practices Debates Multiple voices Bridges Brokers and mediators Élite circles Attract interpreters by acting as an interpreter MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 35
  • 36.
    Identifying creative collaborators Very often design is the most immediate way of defining what products become in people's minds It is important to understand that our goal wasn't just to differentiate our product, but to create products that people would love in the future Jonathan Ive, VP of Industrial Design, Apple MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 36
  • 37.
    MaDe In Lab- MIP Politecnico di Milano Claudio Dell'Era 37
  • 38.
    Identification and selectionof creative resources Network of interpreters Management Practices Debates Multiple voices Bridges Brokers and mediators Élite circles Attract interpreters by acting as an interpreter MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 38
  • 39.
    Attracting creative collaborators Development paradigm of B&B Italia imposes that initial ideas must be independent from any firm specific constraints […]. Every new idea has to come from outside the firm in order to be fresh and to be a challenge for the Centre Research and Development Federico Busnelli, Director of B&B Italia R&D Centre MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 39
  • 40.
    Attracting creative collaborators 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 © 2010 MIP – Riproduzione riservata Management of Design and Innovation www.madeinlab.it 40
  • 41.
    References • The education programs proposed by MIP in the Management of Design and Innovation Area are based on advanced research projects developed by MaDe In Lab in the last 15 years. The relevance of these projects is demonstrated by the several publications on leading international journal such as Harvard Business Review, Management Science, Journal of Product Innovation, Long Range Planning, etc. • The international quality of the research developed by MaDe In Lab has been recently appreciated by Harvard Business Press that on August 2009 has published the book Design Driven Innovation - Changing the Rules of Competition by Radically Innovating what Things Mean by Roberto Verganti (www.designdriveninnovation.com) MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 41
  • 42.
    References • Dell'Era C and Verganti R (2010). Diffusion of product signs in industrial networks: the advantage of the trend setter. European Journal of Innovation Management, forthcoming • Dell'Era C, Marchesi A and Verganti R (2010). Mastering technologies in design-driven innovations: how two Italian furniture companies make design a central part of their innovation process. Research Technology Management, forthcoming • Dell'Era C and Verganti R (2009). Collaborative strategies in design-intensive industries: knowledge diversity and innovation, Long Range Planning, Vol. 42, No. 6 • Dell'Era C and Verganti R (2009). Design-driven laboratories: organization and strategy of laboratories specialized in the development of radical design- driven innovations. R&D Management, Vol. 39, No. 1, Pp. 1-20 • Dell'Era C and Verganti R (2009). The Impact of International Designers on Firm Innovation Capability and Consumer Interest. International Journal of Operations & Production Management, Vol. 29, No. 9, Pp. 870- 893 • Verganti R (2009). Design-Driven Innovation - Changing the Rules of Competition by Radically Innovating what Things Mean. Boston, MA: Harvard Business Press • Verganti R (2008). Design, Meanings, and Radical Innovation: a meta-model and a research agenda. Journal of Product Innovation Management, 25, 436-456 • Dell'Era C and Verganti R (2007). Strategies of innovation and imitation of product languages. Journal of Product Innovation Management, Vol. 24, Pp. 580-599 • Verganti R (2006). Innovating Through Design. Harvard Business Review, December 2006 • Verganti R (2003). Design as brokering of languages: Innovation strategies in Italian firms. Design Management Journal, Vol. 13, No. 3 MaDe In Lab - MIP Politecnico di Milano Claudio Dell'Era 42
  • 43.
    Design and competitiveadvantage Collaborative strategies enabling radical innovation of meanings Claudio Dell’Era MaDe In Lab – MIP Politecnico di Milano