From Schumpeter to Open Innovation - Thesis Example

From Schumpeter to Open Innovation From Schumpeter to Open Innovation In the present business scene, ‘design’ ought to be considered as an integral part of any process of innovation undertaken by corporations. In the past, design was not viewed as being in any way distinctive. It was just one of the many facets of production; but not in any way a special one. Industrial designers would work relentlessly in their stations hoping to chance upon an idea or concept which would persuade investors to bestow liberal amounts of money on developing it. If an industrial designer’s work drew the attention of a big manufacturer, it would most likely be developed in a far away location. To some people who have not grasped the true import of design in innovation, design is still descriptive of the superficial polish of neater appliances and cleaner graphics. This, however, is far from the truth (Sandberg, 2011). Today’s business trends are dictated by customers. It is an established fact that today’s buyers are not interested in procuring products but will spend money to purchase ‘meanings’. There are different ways in which people use the things they buy; most of these are due to socio-cultural, psychological, or utilitarian reasons. Innovation, in today’s business scene, is inextricably connected with design. The whole subject of design has grown to be a significant benefit for numerous industries. It also functions as an important tool in warding off commoditization. Business analysts have discovered in past researches that all manufactured goods and services being traded in industrial markets have an inherent meaning (Verganti, 2009). Companies, therefore, ought to focus on more than just functions, features, and the performance of manufactured products and seek to comprehend the true meanings given to products and services by consumers. Such meanings cannot be innovated but have to be recognized by manufacturers. User-centered viewpoints have brought about powerful methods for appreciating how consumers give meaning to the products that they purchase. There are companies that have used design to revolutionalize their entire way of doing business while also accruing massive profits. Corporations such as ‘Google’ and ‘Apple’ are now way ahead of their business rivals as a result of their efforts in placing design at the forefront of their corporate objectives of innovation (Lockwood, 2009). The researchers that make products for these firms actually seem to be able to read the minds of their consumers even before the consumers themselves are aware of what they will want in future. They also design their goods to be stylistic. Design-driven innovation is actually altering the business landscape as companies that do not invest in design are overcome by their rivals. Companies such as ‘Apple’ are not more successful than their rivals because they have provided consumers with an improved understanding of what they already expect from the desired products (Martin, 2009). Instead, they have provided a different and spontaneous meaning that was what the consumers were really searching for (Goh, 2004). The design-driven innovations pioneered by these firms were not the original idea of the consumers, but have been quite successful in creating huge markets. They have also spawned goods and services that have long lives and increased profit margins. This enhancement of product value naturally results in increased company growth. Design basically allows a company to be able to stir up consumer demand for unusually inventive products. This allows the companies that factor design as a major aspect to be able to charge for higher prices without losing their customer base. Today, most corporations are changing from being oriented towards manufacturing operations to being focusing on improving the designs of their products. Usually, innovation in manufacturing facilities alternates between phases of technical inventiveness and packaging operations. For companies to be successful in using design in a way that will improve profits, it is not enough to hire creative industrial designers. The designers also have to be given the power to make influential decisions. When designers do not have influence in a company, the creation of superb products basically becomes an impossibility. For a company to be able to benefit continuously from its designs there has to be continuous change in that department. In addition, proposals for good designs are rarely implemented when they have to gain the approval of numerous executives in order to be approved of (Brown, 2009). This is due to the fact that the procedure used in design is mostly reductive. Corporate approvals tend to result in additions made to the original design. When a product’s design has too many things added to it, it loses its original distinctiveness. The emergence of design as a leading quality also has to do with consumers. Consumers today can choose from many more sources than was the case in the past. Increasingly, consumers are being drawn to the beauty of the design of products and the emotional triggers that they inspire. Mass produced goods are no longer seen as being as important as they were in the past because they do not inspire emotional responses in consumers. Innovative businesses understand that while in the past, accessibility, price, and limited options influenced customer preferences, today’s consumers have to feel an emotional connection before purchasing a product. Many companies that seek to become more design-oriented have made the choice to adopt a more human centered approach. It is not just any idea that can inspire consumers. For a design idea to be successful, it has to be innovative. In the present business market, advertising, branding, product design, marketing and positioning are functions that have to be combined by companies in order to inspire a connection with consumers as well as new experiences. These experiences have the ability to affect consumers over a long period of time as they effect long-term memories among potential clients. Having a design culture inspires feelings of connectedness among the workers of companies as the employees are encouraged to primarily focus on the needs of customers and not saving on costs. In addition, a design culture will inspire risk taking which can greatly benefit the company. Remaining relevant as well as adaptive in the present business market calls for a company to be inventive in solving business problems and approaching the true needs of customers. Design driven innovation is the connecting piece between consumers and their needs. New ideas and alternatives are needed to preserve the interest of customers who have so many choices to pick from. Design driven innovation assists companies by exploring alternatives and solutions that did not exist in the past. References Brown, T. (2009). Change by design: How design thinking transforms organizations and inspires innovation. New York: HarperBusiness. Goh, A. (2004). Enhancing Competitiveness through Innovation: Issues and Implications for Industrial Policy-Making. International Journal of Applied Management and Technology, 2(2), 1-43. Lockwood, T. (2009). Design thinking: Integrating innovation, customer experience, and brand value. New York: Allworth Press. Martin, R. (2009). The design of business: Why design thinking is the next competitive advantage. Massachusetts: Harvard Business School Press. Sandberg, B. (2011). Managing and marketing radical innovations. New York: Routledge Verganti, R. (2009). Design driven innovation: Changing the rules of competition by radically innovating what things mean. Massachusetts: Harvard Business Press. Read More