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abpfdkJaofsbk fkkls^qflk SUMMIT 2008 Uncovering the Hidden Meaning of Things: Why Design-Driven Innovation is Central in Technology- Intensive Organizations Roberto Verganti Professor of Management of Innovation, Politecnico di Milano Visiting Scholar, Harvard Business School www.verganti.it © Roberto Verganti, Politecnico di Milano Cutter Consortium

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Page 1: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

Uncovering the Hidden Meaning of Things: Why Design-Driven Innovation is Central in Technology-Intensive Organizations

Roberto VergantiProfessor of Management of Innovation, Politecnico di MilanoVisiting Scholar, Harvard Business Schoolwww.verganti.it

© Roberto Verganti, Politecnico di Milano

Cutter Consortium

Page 2: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Worldwide Sales of Games Consoles

Source: http://www.vgchartz.com/

© Roberto Verganti, Politecnico di Milano

Agenda

� Design

� Innovation strategies

� Managing design driven innovation

www.cutter.com

Page 3: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Agenda

� Design

� Innovation strategies

� Managing design driven innovation

© Roberto Verganti, Politecnico di Milano

Design

FUNCTION(TECHNOLOGY)

FORM(AESTHETIC)

USER(NEEDS)

Cutter Consortium

Page 4: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

© Roberto Verganti, Politecnico di Milano

The Challenge of Artemide

© Roberto Verganti, Politecnico di Milano© Roberto Verganti, Politecnico di Milano

www.cutter.com

Page 5: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano© Roberto Verganti, Politecnico di Milano

Artemide Metamorfosi: The Human Light

© 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

Cutter Consortium

Page 6: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Design

FUNCTION(TECHNOLOGY)

SENSE(LANGUAGE)

USER(NEEDS)

Meanings

Performance

© Roberto Verganti, Politecnico di Milano

www.cutter.com

Page 7: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Agenda

� Design

� Innovation strategies

� Managing design driven innovation

© Roberto Verganti, Politecnico di Milano

Innovation Strategy

Adaptation to the evolution of

socio-cultural models

MEANINGS (languages)

Incremental Improvement

Radical Improvement

FUNCTION (technology)

Generation of new meanings

Cutter Consortium

Page 8: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© 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© Roberto Verganti, Politecnico di Milano

Alessi: Family Follows Fiction

www.cutter.com

Page 9: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Understanding User Needs

© 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

USER CENTRED

TECHNOLOGY PUSH

DESIGN DRIVEN

Innovation Strategies

Cutter Consortium

Page 10: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Innovation Strategies

Adaptation to the evolution of

socio-cultural models

MEANINGS (languages)

Incremental Improvement

Radical Improvement

PERFORMANCE (technology)

Generation of new meanings

USER CENTRED

TECHNOLOGY PUSH

DESIGN DRIVEN

© 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

USER CENTRED

TECHNOLOGY PUSH

DESIGN DRIVEN

Innovation Strategies

www.cutter.com

Page 11: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© 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

USER CENTRED

TECHNOLOGY PUSH

DESIGN DRIVEN

InnovationStrategies

Creative Nomad, Jukebox 2001

MPMan 1997

Sony DiscMan 1999

© Roberto Verganti, Politecnico di Milano

Agenda

� Design

� Innovation strategies

� Managing design driven innovation

Cutter Consortium

Page 12: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Understanding User Needs

Socio-cultural context

Socio-cultural context

Firm Users

Interpreter

User centered

Firm Users

Design driven

Now

Future

© Roberto Verganti, Politecnico di Milano

The Interpreters and the Design Discourse

Firm

People

Technology Suppliers

Sociologists Anthropologists

Marketers

Media Artists

Retail and delivery

Education and research

Designers Pioneering

Projects

Cultural organizations

Cu l t u ra l Pr o d uc t i o n

T ec h n o l o g y

Firms in other industries

www.cutter.com

Page 13: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di MilanoAllianz Arena, design by Jacques Hertzog and Pierre De Meuron, 2002

© Roberto Verganti, Politecnico di Milano

© Roberto Verganti, Politecnico di Milano

The Process

Interpreter

Interpreter

DevelopmentTHINK

LISTEN

NewLanguages and

Meanings

NewProducts

USER

KnowledgeBase

Interpreter

Interpreter

Interpreter

Interpreter

Interpreter

TALK

Interpreter

Cutter Consortium

Page 14: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Tizio, Artemide, 1972Design by Richard Sapper

Halley, Lucesco, 2005Design by Richard Sapper

© Roberto Verganti, Politecnico di Milano

www.cutter.com

Page 15: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Forward Looking Researchers: 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

Cutter Consortium

Page 16: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Firms as Interpreters

Flat TV with Ambilight, 2004

© Roberto Verganti, Politecnico di Milano

Technology Suppliers as Interpreters

Firm

People

Technology Suppliers

Sociologists Anthropologists

Marketers

Media Artists

Retail and delivery

Education and research

Designers Pioneering Projects

Cultural organizations

T ec h no log y

Firms in other industries

www.cutter.com

Page 17: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Attracting Interpreters

© Roberto Verganti, Politecnico di Milano

The Crucial Role of Technologies

Bookworm, Kartell, design Ron Arad

La Marie, Kartell, design Philippe Starck

Cutter Consortium

Page 18: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Design and Technological Research

Concept design

Design and socio-cultural research

Technology Research

Product Development

© 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

Development of several products

www.cutter.com

Page 19: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© 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. Product Development for the Kettle

Model 9093

Global Design Discourse(architects overseas)

3. “Talk” to the community-Books-Exhibitions-Limited series-…

© Roberto Verganti, Politecnico di Milano

The Process

Interpreter

Interpreter

DevelopmentTHINK

LISTEN

NewLanguages and

Meanings

NewProducts

USER

KnowledgeBase

Interpreter

Interpreter

Interpreter

Interpreter

Interpreter

TALK

Interpreter

Cutter Consortium

Page 20: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Cultural Prototypes

Interpreter

Interpreter

DevelopmentTHINK USER

Interpreter

Interpreter

Interpreter

Interpreter

Interpreter

TALK

Interpreter

© Roberto Verganti, Politecnico di Milano

Talk

www.cutter.com

Page 21: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Conclusions

� Every product has a meaning

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

� Every product has a meaning

� Innovation does not necessarily imply getting closer to users

Firm Users

Interpreter

User centered

Firm Users

Design driven

Cutter Consortium

Page 22: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Conclusions

� Every product has a meaning. Companies that do not realize this,simply do not manage it nor innovate it

� Design does not necessarily imply getting closer to users

� A collaborative research process

Firm

People

Technology Suppliers

Sociologists Anthropologists

Marketers

Media Artists

Retail and delivery

Education and research

Designers Pioneering Projects

Cultural organizations

Cu l t u ra l Pr o d uc t io n

T ec h n o lo g y

Firms in other industries

© Roberto Verganti, Politecnico di Milano

Conclusions

� Every product has a meaning. Companies that do not realize this,simply do not manage it nor innovate it

� Design does not necessarily imply getting closer to users

� A collaborative research process

� Where technology matters

Firm

People

Technology Suppliers

Sociologists Anthropologists

Marketers

Media Artists

Retail and delivery

Education and research

Designers Pioneering Projects

Cultural organizations

T ec h no l og y

Firms in other industries

www.cutter.com

Page 23: Uncovering the Hidden Meaning of Things: Why Design-Driven ...Design Driven Innovation Roberto Verganti Harvard Business School Press, 2009 Cutter Consortium. Title: 07_Verganti Author:

abpfdkJaofsbk=fkkls^qflkSUMMIT 2008

© Roberto Verganti, Politecnico di Milano

Tools

Interpreter

LISTEN(immersion)

NewLanguages and

MeaningsKnowledgeBase

Interpreter

Interpreter

Interpreter

Interpreter

Interpreter

TALK(cultural products)

DESIGN

DIRECTION

WORKSHOP

KNOWLEDGE

REPOSITORY

PROCESS

LANGUAGE

MINING

THINK(research)

SEMINAR

SERIES

© Roberto Verganti, Politecnico di Milano

Forthcoming:

Design Driven InnovationRoberto VergantiHarvard Business School Press, 2009www.verganti.it

Cutter Consortium