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Pub Date: 2009
Until now, the literature on innovation has focused either on radical innovation pushed by technology or incremental innovation pulled by the market. In Design-Driven Innovation: How to Compete by Radically Innovating the Meaning of Products, Roberto Verganti introduces a third strategy, a radical shift in perspective that introduces a bold new way of competing. Design-driven innovations do not come from the market; they create new markets. They don't push new technologies; they push new meanings.
It's about having a vision, and taking that vision to your customers. Think of game-changers like Nintendo's Wii or Apple's iPod. They overturned our understanding of what a video game means and how we listen to music. Customers had not asked for these new meanings, but once they experienced them, it was love at first sight.
But where does the vision come from? With fascinating examples from leading European and American companies, Verganti shows that for truly breakthrough products and services, we must look beyond customers and users to those he calls "interpreters" - the experts who deeply understand and shape the markets they work in.
Design-Driven Innovation offers a provocative new view of innovation thinking and practice.
Two major findings have characterized management literature in the past decades.
The first is that radical innovation, albeit risky, is one of the major sources of long-term competitive advantage.
The second finding is that people do not buy products but meanings.
...The common assumption, however, is that meanings are not a subject for innovation: they are a given. One must understand them but cannot innovate them...
Innovation has therefore focused on two strategies: quantum leaps in product performance enabled by breakthrough technologies, and improved product solutions enabled by better analysis of users’ needs. The former is the domain of radical innovation pushed by technology, and the latter of incremental innovation pulled by the market.
Artemide has followed a third strategy: design-driven innovation— that is, radical innovation of meaning. It has not provided people with an improved interpretation of what they already mean by, and expect from, a lamp: a more beautiful object. Rather, the company has proposed a different and unexpected meaning: a light that makes you feel better. This meaning, unsolicited, was what people were actually waiting for.