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Innovating User Value - The Interrelations of Business Model Innovation, Design (Thinking) and the Production of Meaning – A Status-quo of the Current State of Research

Innovating User Value - The Interrelations of Business Model Innovation, Design (Thinking) and the Production of Meaning – A Status-quo of the Current State of Research

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Published by Jan Schmiedgen
We live in a hyper-competitive world where whole industries either shift towards services or become obsolete due to new market entrants, technologies or even social practices. A world, where permanent interactions with customers, fast time-to-market, and the ability to innovate »right« (e.g. the right thing or value) are the key to corporate success. On that score the business world isn't getting tired of emphasizing the need for strategic innovation (which means »creating superior customer value«, business model innovations or even the disruption and creation of new markets).

Through the lens of »customer value« this paper uncovers some of the often overlooked links of design (design thinking, design-driven innovation and service design) to strategic innovation. It will do so by ... 1) Disenchanting the big corporate rhetoric on above claims by showing that prevailing and too one-sided understandings of strategy and innovation, rather reinforce than escape old industry paradigms. 2) Examining designs still undervalued contributions to strategy-making by approaching business challenges with a user-centric and radical service logic. 3) Showing that every dimension of strategic innovation culminates in the concept of perceived user value and meaning, which gets reviewed in detail (dimensions, forms, properties), especially with regards to constructing value propositions. 4) Arguing that the current service design and business model innovation discourses cannot be negotiated separately, as they may be good methodological complements.

So when speaking about the innovation of value for the customer, the paper argues, the above stated and seemingly separated fields intersect. Therefore their most apparent systemic connections and the facilitation of value creation by design are outlined and discussed.
We live in a hyper-competitive world where whole industries either shift towards services or become obsolete due to new market entrants, technologies or even social practices. A world, where permanent interactions with customers, fast time-to-market, and the ability to innovate »right« (e.g. the right thing or value) are the key to corporate success. On that score the business world isn't getting tired of emphasizing the need for strategic innovation (which means »creating superior customer value«, business model innovations or even the disruption and creation of new markets).

Through the lens of »customer value« this paper uncovers some of the often overlooked links of design (design thinking, design-driven innovation and service design) to strategic innovation. It will do so by ... 1) Disenchanting the big corporate rhetoric on above claims by showing that prevailing and too one-sided understandings of strategy and innovation, rather reinforce than escape old industry paradigms. 2) Examining designs still undervalued contributions to strategy-making by approaching business challenges with a user-centric and radical service logic. 3) Showing that every dimension of strategic innovation culminates in the concept of perceived user value and meaning, which gets reviewed in detail (dimensions, forms, properties), especially with regards to constructing value propositions. 4) Arguing that the current service design and business model innovation discourses cannot be negotiated separately, as they may be good methodological complements.

So when speaking about the innovation of value for the customer, the paper argues, the above stated and seemingly separated fields intersect. Therefore their most apparent systemic connections and the facilitation of value creation by design are outlined and discussed.

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Categories:Types, Research
Published by: Jan Schmiedgen on Jan 07, 2012
Copyright:Attribution Non-commercial

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