In this article, we propose a framework for understanding how design and designers may contribute to strategic renewal in producers of traditional and hi-tech consumer durables. Building on a study of outstanding innovators in product design, we describe design-driven renewal as a four-phase process stimulated and supported by design, combining continuous product innovation with the periodic revision of the strategic course of the company. For each phase, we discuss the specific role of managers and the most common pitfalls that arise from poor management of the process.
3"The Domestic Appliances division of Philips is a good example of a business that has made innovation through design part of its day-to-day practice (Laura Taylor, Philips Design)."
Design is de ned as a strategic competency that can be utilized in order to create new objects, artifacts (i.e. products), systems and services, starting with some idea about customer needs. Since the products and services from the design process are of strategic importance to the company, design knowledge itself can become a strategic asset. Although one might expect design to be an internal resource from the point of view of transaction costs, most companies only possess some design competencies and acquire creative design skills from design consultants. The important issue is how they delineate what is strategic and what is not strategic, but skills. The article is based on two case studies from the furniture industry in which the companies have found diÚerent solutions. In the paper we therefore explain the diÚerences in terms of the resource-based view on strategy. This indicates diÚerent conceptions of design resources, operating in diÚerent, but comparable contexts.
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