User driven innovation is said to be the answer to all our prayers regarding the future of business and wealth in Denmark and Scandinavia in light of the global competition that we see these days. The media, top managers and institutions compete on ”hyping” user driven innovation – all too often, it seems, without knowing what user driven innovation really is.
Lately i have seen a number of new products being hailed as userdriven innovation. The so called triobike for city living, the Speedicath Compact for incontinent women and hearing aids from Oticon and GN Resound plus a myriad of wonderful design ideas with no current market applications.
I do not think that any of these candidates qualify as user driven innovations. Let me argue why. User driven innovation is made up of two concepts – innovation and user driven – and its meaning cannot be understood without seing these concepts together. All to often, however, this is what happens in the talk about user driven innovation.
We do, however, know quite a lot about innovation. Innovation is something that increases the competitiveness of an organisation by offering new value to customers in as diverse areas as products, services, administration, brand, the shopping experience, use of the offering, and so on. There are two key words here. One is competitiveness – an innovation is, per se, commercialised into the market place and successfully so. Thus, a design idea with no market application is just that – an idea. The other key word is new. Innovation is new to the market, at least in the industry of the innovating organisation, and, thus, new to the innovating organisation and its competitors.
The latter implies that innovation is risky as it often demands new ways of producing, marketing and distributing the offerings of an entire industry. This may in effect destroy competence and capital as the old ways have to be abandoned in favour of new ways of working.
User driven, then, seems to go smoothly with innovation as the customer is in focus both for the innovation concept – customers make or break innovations with their buying behavior – but what happens when we combine the two concepts?
I will assert to you that a true user driven innovation needs to have the following set of characteristics:
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It is different from other offerings in the market
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It is a surprise to customers as it is directed at their demands and wishes of tomorrow rather than today
- As such, it is based on a deep understanding of the market
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Creates a superior value proposition for customers thereby making the innovation positively different to others
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Is based on a business model that creates wealth to one or more businesses
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Is created in the interaction between a multitude of knowledge areas of which design is (but) one
- Will never be able to get support from backward looking managers or programmes
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Given these characteristics, the public darlings of above all fall as the result of being either not an innovation – the Speedicath and most of the wonderfull design ideas that has yet to make it to the market place – or not user driven in the sense that it is the demands of tomorrow that is in focus. Asking customers what they want today is neither innovation or user driven – it is, simply, marketing! And while marketing certainly has a place in business management today, it is not innovation and certainly not user driven innovation.
I think that my definition of a true user driven innovation poses some interesting questions to the role of the designer in what needs to become the main activity of Danish businesses – i.e. user driven innovation. And remember that few have supported design and designers as much as yours truly. However, we need to find answers to questions like:
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Is it the designer who should manage the innovation process from idea to business model execution? Or should the role of the designer be limited to the conceptual phases of the innovation process?
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Should designers be part of top management teams in future organisations? If so, what should the designers bring to the table?
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Can innovation processes in general do with some inspiration from the way designers work? If so, what inspiration might that be?
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How should designers interact with marketing people in order to these two – and possibly more – groups to discover the market needs to tomorrow?
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How should designers in general learn to interact with other specialities? Should designers know a little marketing, economics, engineering, production and so on? Or will that hollow-out the important, defining skills of what makes a designer per se?
I look forward to a debate on these important issues. And don’t forget to check out the strategic angle on these matters at www.strategy-lab.asb.dk