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Published by: Terry To on Apr 05, 2013
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Design Driven Innovation – Bang & Olufsen

an HBS case, powerpoint by Wesley Shu, Ph.D.

Bang & Olufsen
You can watch a B&O TV for hours – and then you turn it on. The product itself is ‘experience’ – Wesley Shu

• Impact of iPod: extend into virtual space, not only physical form or function • Extend to virtual space, where great design meant great software and network-based interaction with other products and services

Issue • This differed from B&O‟s traditional expertise • The company formed Idealab • “supplementary innovation” – a way of injecting new ideas into products from outside the traditional process • Move away from designers‟ near absolute control over products • But how to decide the „right‟ amount of change? .

Survived from Asian competition 1960s • By allying with a group of architects & designers • By focusing on ideas and design behind its products • Emphasizing high quality .

Design Style • Influenced by Bauhaus and Scandinavian preference for clean lines .

Bauhaus .

Scandinavian clean-line .

Scandinavian clean-line .

2001 strategy to overcome difficulties • • • • Car stereo systems Mobile phone Hotel Luxury yachts .

Vision (mission?) Statement • Courage to constantly question the ordinary in search of surprising. the concept made conscious Business Model . design is far more than mere styling of existing products. long lasting experiences • For Bang & Olufsen. rather it is the expression of an idea.

Fisher) Business Model . Philip.” • Very hard to imitate – technology and material to support the unique design (cf. high-end furniture or luxury travel… We relate more to a BMW than to the generic product ranges of electronics giants.Self Position • “We see competition more in the recreational car or home.

but the way the product works Business Model .Customer • Vital core customers • 80% revenue came from 800 to 1.000 customers in the U. • Not only design.S. • Customer relations are important – CRM.

e. manufacturability Making Ban & Olufsen Products ..g.Designer – never inhouse! • Away from the influence of its daily business • Not need to understand their industrial limitations.

Designer – never inhouse! “Designers have to be free to look in an unconditioned way at what‟s happening in our society. how people live and furnish their homes…” Making Ban & Olufsen Products .

Making Ban & Olufsen Products Who Are the Designer • • • • A senior designer – British 3 external designers Competitions Good designers have strong personality .

Making Bang & Olufsen Products Design Competition “When flat screen TVs started to take off.” . B&O launched a competition among nine designers from different parts of the world for ideas on what the B&O flat screen concept should be.

. B&O attracts more talented designers.Making Ban & Olufsen Products Designer • Then.

engineers.Making Ban & Olufsen Products Process • No standard process for product design and development • Culturally evolved collaboration between designers. concept developers. and technicians .

Making Ban & Olufsen Products Process • Close physical proximity to production departments • Thesis by designers – antithesis by engineers – synthesis : one or two years .

Making Ban & Olufsen Products Concept Developers • Bridge art towards the repetitive processes of an efficient industrialized manufacturing process • Constantly question the ordinary • Give hard time to manufacturing guys .

Coming up with new ideas • From designers • From engineers – new technology inspiring designers • From perceived needs to fill out the product portfolio Making Ban & Olufsen Products .

not ask what they want.Making Ban & Olufsen Products Ideas from designers • See how customers live. • Customers only know what‟s already hot in the market. • Go beyond customer expectation .

Product Development Life Cycle Design – Prototyping • Idea iterates until it has „substance‟ – unique personality .

not financial or technical considerations Product Development Life Cycle .Prototypes – product commitment • Decision was made with the heart.

Product Development Life Cycle .Product commitment – development • A dedicated project team formed • Designers remained involved • Concepts or development process may change if a convincing new idea comes up.

g. hydroforming used by Porsche . e..Product Development Life Cycle Some Products • BeoSound 9000 – originally unmanufacturable – Took 5 years from the decision point to manufacturing • BeoLab 8000 – Originally a crazy idea • BeoCom 2 – New technology & material to support design.

” . it would be difficult.Product Development Life Cycle Conclusion “If you wanted to express power and determination as a manager here. but if you allow a certain degree of freedom you get a very creative environment.

network economy. media convergence (is iPod one?) • The most challenging part is how to integrate into existing business environment IdeaLab .IdeaLab – B&O’s effort to digital world • Goal: untapped or uncontested markets.

Effort to integrate • Find the way to communicate • Follow existing way of communication • Collocate chief graphic designer with concept developers at IdeaLand • Demo facility without pushing designers to visit • Supplementary functionality for existing products • Patience! Usually took longer than anticipate IdeaLab .

Some B&O Products .

Some B&O Products BeoLab 5 Loudspeakers .

Some B&O Products .

Some B&O Products BeoVision 7 and BeoLab 8000 .

Some B&O Products .

Some B&O Products BeoLab 3 .

Some B&O Products BeoCom 2 .

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