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An Exploratory Study on the Evolution of Design Thinking: Comparison of Apple


and Samsung

Article  in  Design Management Journal · October 2013


DOI: 10.1111/dmj.12001

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ARTICLE

An Exploratory Study on the


Evolution of Design Thinking:
Comparison of Apple and
Samsung
by YoungJoong Chang, Jaibeom Kim, and Jaewoo Joo

YoungJoong Chang Introduction

D esign thinking has long attracted considerable attention from academic


researchers. Ever since Herbert Simon (1969) first discussed design,
many researchers have attempted to validate the nature of design thinking in
the business context (Brown, 2008; Buchanan, 1992; Cross, 1990; Lawson,
2005; Liedtka, 2004; Martin, 1995; Rowe, 1987; Whitney, 2006). Currently,
Jaibeom Kim
two issues still remain unclear regarding prior work on the topic of design
thinking. First, design thinking is often intermingled with the process for how
designers work. According to one New York Times article (Rae-Dupree, 2008),
for example, design thinking is a combination of field research and
the generation of freewheeling ideas. Similarly, in a visionary piece on design in
BusinessWeek, Whitney (2006, p. 13) suggested that “design thinking can offer
greater, deeper, and faster insights into users’ lives to help businesses know
what to make in the first place.” Brown (2008) also views design thinking as a
Jaewoo Joo
methodology that covers the full spectrum of innovative activities with a
human-centered design ethos. Second, there has been little discussion of how
design thinking actually materializes in practice. Instead, a wide variety of
business cases are introduced, which in turn focuses on the outcomes of
design thinking and largely ignores how these outcomes are created and
achieved.
Here, we will address these two important issues—understanding and
application—of design thinking. First, our aim is to develop a model that
delivers a clearer understanding of the process of design thinking. In particular,
we go beyond the historically dominant framework of problem solving to
consider a new framework proposed by Martin (1995), namely, balancing

22 ª 2013 The Design Management Institute


intuitive thinking and analytic think- team-level intuitive-analytic thinking subsequent section explains design
ing. Second, we apply our framework and view the thinking as an organi- thinking more deeply by combining it
to team-level analysis and investigate zational decision-making issue, rather with the innovation matrix proposed
how design thinking can actually be than an individual problem-solving by Verganti (2009). In the third
nurtured in organizations. Specifi- issue. section, the evolution of design think-
cally, we deal with the different This article also provides practical ing is described, and a comparison is
decision-making processes observed in implications to managers interested in made between Apple and Samsung in
two electronics corporations: Apple implementing design thinking in their terms of how each achieves design
and Samsung Electronics (hereinafter organizations. Much evidence in the thinking. The last section offers con-
referred to as Samsung). management area supports the notion clusions, academic contributions, and
The present work contributes to that investing in designers and design managerial implications, as well as
the academic discussions on design teams is well deserved. For example, noting some limitations.
thinking in two ways. First, we one study noted that a group of so-
introduce a new perspective on design called design-aware companies was
Understanding design thinking
thinking by incorporating some find- shown to outperform London’s FTSE
ings in psychology. Psychologists 100 stock index over a period of several Framework
have conducted extensive studies and years (Design Council, 2005). Historically, researchers have
concluded that people have dual Another found that firms with a high- adopted a problem-solving frame-
cognitive systems; these systems have intensity focus on industrial design work when studying design thinking.
been called experiential-rational sys- (ID) have reported greater profits than Because problem solving consists of
tems by some (Epstein, 1991) and those with low ID intensity (Gemser two primary tasks—identifying
intuitive-analytic systems by others and Leenders, 2001). A third noted problems and generating solutions—
(Tversky and Kahneman, 1974). that manufacturing firms rated highly researchers generally view design
Note that most of the earlier works for the effectiveness of their industrial thinking as a way of thinking that
on the topic sought to demonstrate design had recorded greater returns on enables people to identify problems
when and why one system was sales and assets than their less-effective and generate solutions more effi-
superior over the other (Hogarth, competitors, over a period of six years ciently. Therefore, design thinking
2001; Klayman and Brown, 1993), (Hertenstein, Platt, and Veryzer, involves asking the right questions
but little discussion was directed 2005). These findings, however, are and choosing the right answers for
toward how people utilize these two mute in terms of what managers those questions (Simon, 1996),
cognitive systems concurrently. Sec- should do to maximize the benefits of moving back and forth between the
ond, as a level of analysis, we apply design thinking in business. There- given problem and the testable pro-
design thinking not to individuals but fore, we propose to investigate more posals they have in mind (Rowe,
instead to teams. Note that the specific paths to achieve design think- 1987), and addressing “wicked prob-
existing literature on design thinking ing for innovation. lems” elegantly (Liedtka, 2004).
has focused on how individuals The remainder of this article is More recently, however, some
improve task performances by organized into four sections. The first researchers have attempted to
adopting a new type of thinking section provides a brief review of the understand design thinking from the
(Liedtka, 2004; Rowe, 1987; Simon, literature that pertains to design perspective of intuitive-analytic
1996). Therefore, we approach thinking and discusses two issues thinking. For instance, in his book
design thinking through the lens of regarding its application to teams. The The Business of Design, Roger Martin

23
Design Management Journal

(1995) argues that delivering mean- (KAI) than other professionals did, each of which pursues a different
ingful experiences to consumers including general managers and those type of thinking. Ideally, individual
requires two types of thinking. He in finance and marketing. employees balance two types of
posits that managers first identify To approach Martin’s design thinking and then their firms balance
business opportunities intuitively and thinking from the viewpoint of design two types of thinking. However, this
then establish business systems ana- meaning, we need to understand that is not always the case. Instead, a firm
lytically, thus suggesting that balanc- his idea has clearly expressed the core may concentrate on one level of
ing the two types of thinking can be meaning of design from the holistic/ design thinking more than the other
one of the key drivers to achieve integrative perspectives. According to depending on several factors, includ-
commercial success. Martin’s model a comprehensive review by Cooper ing the size of the firm. For example,
of design thinking can be summarized and Press (1995), design represents when a small or medium-sized design
as follows: To begin with, a majority the shift from art and creativity to consulting firm has only a handful of
of human beings, including scientists problem-solving and planning pro- talented employees who work across
and artists, use both intuitive and cesses. Some representations, such as functions such as planning, design,
analytic thinking, but when either art and creativity, depend heavily on finance, and marketing (e.g., Jump
type of thinking dominates, the result intuitive thinking, while others, such Associates or Rotman Designworks),
may not be considered to be design as problem-solving and planning the firm may pursue design thinking
thinking. Therefore, to realize design processes, rely mostly on analytic primarily on the individual level. On
thinking, it is critical for intuitive and thinking. Put differently, Martin’s the other hand, when a firm has a
analytic thinking to be balanced. Yet, conceptualization of design thinking large number of employees who
these two types of thinking do not represents the diverse definitions of belong to function-oriented multiple
often mingle well due to significant design in a thinking way (Figure 1). teams (e.g., Apple or Samsung), the
differences in each. Strategies, there- firm may pursue team-level design
fore, are needed to reach a conver- Unit of analysis thinking instead. Following Martin
gence or harmony for design Design thinking can be applied not (1995), we mainly deal with team-
thinking. We can identify the above only to individuals but also to teams. level design thinking in the present
strategies by attentively observing the An individual design thinker can work.
strategies of very successful compa- balance these two different types of When studying team-level
nies. thinking. Alternatively, a design- design thinking, we face two chal-
We believe Martin’s argument thinking firm can balance two teams, lenging questions. First, which team
differs from other arguments that
place greater weight on intuitive
thinking than on analytic thinking.
For example, Sutton (2004) claims
that organizations should explore new
ways rather than exploit old ways in
order to chase unusual ideas with
which to innovate. Rieple (2004) also
reported that design managers
achieved higher scores on Kirton’s
Adaptation/Innovation Inventory Figure 1. Design thinking (Martin 1995).

24
Evolution of Design Thinking

is intuitive, and which team is ana- Combining design thinking with an teams, such as manufacturing teams,
lytic? In general, a new product innovation matrix take full responsibility for improving
development project requires multi- In order to understand design think- technology. This would imply that we
ple teams, including a design team ing further, we combine it here with can map two types of thinking onto
and a manufacturing team. The the innovation matrix proposed by the two drivers of innovation. This
former team plays a role in develop- Verganti (2009). Carefully collecting mapping also suggests that when a
ing the industrial design concepts, and analyzing the firms that success- firm balances intuitive and analytic
and building and testing the experi- fully use design to innovate, Verganti thinking, it also balances meaning and
mental prototypes, while the latter (2009) concluded that design-driven technology. For example, when a firm
generally defines piece-part produc- innovation does not necessarily result belongs to the “technology-push”
tion processes and refines that fabri- from cutting-edge technology; category and has advanced technolo-
cation (Ulrich and Eppinger, 2012). instead, it is often driven by assigning gies but relatively old-fashioned
Because the first group of tasks new meanings to existing products or meanings, it will not achieve design
requires intuitive thinking more services. Accordingly, he classified thinking. Alternatively, design think-
intensively than the second, we radical innovation strategies into ing is not achieved when a firm
assume here that a design team is a three groups—technology push, design- belongs to the “design-driven” cate-
representative example of an intuitive driven, and technology epiphany— gory, which is characterized by fresh
team and a manufacturing team is a depending on the level of technology meanings with outdated technologies.
representative example of an analytic and meaning involved (Figure 2). Only when a firm belongs to the
team. Verganti (2009) noted that “technology epiphany” category will it
Second, do two teams need to be intuitive teams, such as design teams, assign new meanings to new technol-
the same size when balance is are often asked to assign new mean- ogies and thus achieve design thinking
achieved? In general, the intuitive ings to products, whereas analytic (Figure 3).
team that produces the concepts does
not have to grow as much as the
analytic team that manufactures and
delivers final products does. The
performance of the intuitive team
often depends on fresh ideas gener-
ated from a few talented employees;
the performance of the analytic team,
however, is strictly tied to number of
employees. This difference implies
that achieving design thinking at the
team level does not necessarily sug-
gest that the two teams should be
equal in size; instead, when balance is
achieved, both should be able to
make their own independent deci-
sions and have the same level of
decision-making power. Figure 2. Innovation matrix (Verganti 2009).

25
Design Management Journal

students who founded a firm named


Rovio Entertainment—which gave us
the globally successful game “Angry
Birds.”
As a firm grows, managers want
to optimize the firm’s manufacturing
processes in order to achieve greater
efficiency. Because managers focus on
business performance, they tend to
support manufacturing teams rather
than design teams, which in turn
results in an imbalance between
intuitive and analytic teams. How-
ever, managers are eventually forced
to provide their consumers with
Figure 3. Combining design thinking with the innovation matrix.
differentiated products and mean-
ingful experiences rather than opti-
mally manufactured products; that
is, these managers struggle with bal-
Figure 4. Design thinking in the beginning of business.
ancing the intuitive and the analytic.
Firms can address this issue in
by adopting an external team and different ways, but we feel that at this
Evolving design thinking
giving it the decision-making power stage, managers should select one of
We propose that a firm selects differ- that dominates the existing teams. three paths—design driven, technol-
ent paths to achieve design thinking What these external teams might be ogy push, or technology epiphany—
depending on two variables, namely, like and how they might be adopted after considering environmental
environmental dynamics and firm capa- are discussed in more detail in the final dynamics and firm capabilities. We
bilities. Environmental dynamics indi- section of this article. explain each path in detail in the
cates the degree to which an Before discussing the two vari- following sections (Figure 5).
environment, or a market, is dynamic ables and explaining different paths,
(i.e., characterized by continuous we begin with how design thinking The design-driven path
change). Some products, such as fur- looks at the beginning moment of a When the business environment is
niture, have less exposure to technical business. When examining the incep- not dynamic and its changes are
changes, whereas others, such as elec- tion of many commercially successful minimal, managers have ample
tronics, change their characteristics firms, we found that their success can opportunities for trial and error to
often and in volatile ways. Firm capa- often be attributed to individual-level learn how to grow two teams without
bilities describes the way in which a design thinking: In other words, a few destroying the balance. In such a
firm resolves conflicts between teams. individuals in these firms identified context, the intuitive team and the
Some firms resolve conflicts by pro- specific business opportunities and analytic team maintain the balance of
moting communications between then established related business sys- their decision-making powers; the
teams internally; others resolve them tems. Examples include three young intuitive team makes business deci-

26
Evolution of Design Thinking

Figure 5. Three paths of design thinking.

sions independently and its decisions macy of validity in a reliability- firm perceive that the analytic team
can be implemented in the business. oriented environment. Market enjoys stronger decision-making
Because the design-driven path research, sales, and manufacturing powers than the intuitive team. This
requires extensive learning, the firms would tilt toward reliability if given a is because, as Martin argues, the
that select this path generally have a chance. “Valid design” needed top analytic teams generally enjoy stron-
long history of appreciating the value management to provide the counter- ger decision-making powers than the
of design. Often, they have continu- weight. Hugh De Pree helped estab- intuitive teams, and the effort to
ously produced design-oriented lish the authority of design by balance their powers looks like the
innovative products that function defining it. (Martin, 1995, p. 113) addition of powers to the intuitive
well and, therefore, develop their own teams by taking powers away from the
Notice that the actual balance
sustainable design thinking cultures. analytic teams. In sum, on the design-
and the perceived balance between
A representative example of the firms driven path, the intuitive team is
the intuitive team and the analytic
that have adopted this path is Her- perceived to be stronger than the
team can differ in terms of their
man Miller, described in the follow- analytic team, but this is not actually
decision-making powers. We
ing quote from Roger Martin’s so.
demonstrate this difference with two
(1995) book The Design of Business:
figures: Figure 6A-a is the design-
The designer was to retain absolute driven path viewed inside the firm; The technology-push path
control over the production of his and Figure 6A-b is the same path, Stage 1. As firms expand, they
creations. The manufacturer would viewed outside the firm. Although need to scale their analytic team
not be allowed to change the firms should achieve and maintain an upward to efficiently manage short-
mechanics or appearance of a design exact balance to develop successful term performance and complex
to the slightest degree. The De Prees innovative products (e.g., Herman organizational structure. Growth in
knew they had to assert the legiti- Miller’s chairs), people outside the the size of the analytic team can

27
Design Management Journal

include Samsung and LG in the


1990s.
When the business environment
is dynamic and experiences constant
and significant changes, managers
have limited opportunities to nurture
two teams harmoniously. In this
context, managers can mechanically
pull the two teams together with the
belief that both teams are capable of
achieving an internal balance in the
firm (Figure 7).
Stage 2. In experience economies,
design-driven innovation that focuses
on innovation in meaning constitutes
the core competitiveness of the firm.
To gain the above competitiveness,
firms need to appreciate the value of
the intuitive team, and are likely to
scale up its size or intensify ties with
design consultancies. (For instance,
the number of in-house designers at
Samsung increased from 200 in
the early 1990s to almost 1,000 in
2011.) A rapid expansion of the
design forces is the most visible index.
Yet, growth in size does not neces-
Figure 6. Design-driven path. sarily imply qualitative changes, such
as an increase in power over decision
result in several changes that are intuitive teams. The first force making. The analytic team may still
related to the intuitive team. Design works vertically and enables the cast doubt on the intuitive team’s
thinking that once worked at an scale and the power of the analytic decision making. Further, increasing
individual level will now have more to team in its decision making. The the size of the design team (the
do with the team level because the second force works horizontally to intuitive team) can achieve significant
scope and size of the tasks grow. alienate both the analytic and the improvement in terms of the
When tasks become bigger, they intuitive teams from each other due appearance of the existing products.
cannot be performed by individuals to their heterogeneous characteris- However, doing so does not actually
but should be managed by teams tics. The result produces firms that contribute to developing innovative
with multiple members. can be competitive on price but products.
At this stage, two forces oper- offer little in creative innovation. Because the technology-push
ate between the analytic and the Notable examples at this stage path requires extensive communica-

28
Evolution of Design Thinking

At Stage 3, two different paths


emerge that lead to design thinking.
One is to arrange for the analytic and
intuitive teams to meet internally, as
demonstrated in Figure 9 (Stage 3-
A). The other (Stage 3-B, shown in
Figure 10) is to identify an individual
Figure 7. Stage 1 of the technology-push path. or a team that has reached the level
of design thinking and can work as an
tion between the two teams, efficiency and inter-team balance is intermediary toward helping the firm
managers often increase the size of not established or maintained (Fig- itself reach that level.
the intuitive team and then arrange ure 8). Of both strategies above, a
a series of collaborative meetings Stage 3-A. When the growth of majority of CEOs will opt for Stage
with the analytic team, thus aiming the intuitive team reaches a certain 3-A, because this stage is faster and
to achieve a decision-making balance. level, the firm will realize that design- easier to implement than Stage 3-B.
Because strengthening communica- driven innovation is actually quite However, Stage 3-A has clear
tions among marketing, engineering, hard to achieve. This difficulty is limitations. It may allow the false
and manufacturing increases the mainly due to a lack of cooperation perception that the firm now has
probability that newly developed between the analytic team and the reached the state of design thinking,
products succeed in their markets intuitive team—a cooperation that when that may not be the case.
(Griffin and Hauser, 1992), this would not only enable the intuitive Without sufficient mutual under-
path provides a successful short-term team to better understand their ana- standing, analytic and intuitive teams
outcome (e.g., an increase in design lytic colleagues but would also bring will develop conflicts that may thwart
awards). Nurturing a collaborative the analytic team closer to their the emergence of truly innovative
culture is challenging, however, intuitive counterparts. The com- design.
because the intuitive team and the pany’s chief executive officer (CEO), The roots of conflict between the
analytic team tend to perform the ideally, should then acknowledge the analytic and the intuitive teams at
same task in dramatically different needs of both teams to work Stage 3-A are due to contrasting
ways. Therefore, firms that select together, and the firm itself will try to criteria for decision making. Both
this path often experience the so- maintain a state of design thinking teams need to enable decision making
called “illusion of design thinking,” that is balanced properly between at the design-thinking level. The firm
in which creativity is sacrificed for analytic and intuitive. itself, aware of the possibilities for
conflict, will of course make con-
certed efforts to bring the teams into
agreement. Yet, if the coordination
mechanism is not powerful enough,
design thinking through mediation
may not be realized.
To conclude, strategies to reach
design thinking that combine and
Figure 8. Stage 2 of the technology-push path. integrate the intuitive and the

29
Design Management Journal

validity are inherently incompatible.


(Martin, 1995, p. 37)

The technology-epiphany path


When the business environment is
dynamic and managers have limited
opportunities to learn how to manage
two teams harmoniously, they can
choose an option that does not
achieve balance internally but instead
adopts an independent, design-
thinking, coordinating team.
Because the technology-epiphany
path requires an independent team of
design-thinking experts, managers
have no interest in promoting inter-
team communication. Instead, they
allow the independent team to play
the role of the final decision maker
Figure 9. Stage 3-A and technology-push path.
and to dominate business decisions. If
the independent team successfully
dominates and makes informed busi-
analytic teams may appear to be forced collaboration produced chal- ness decisions, then this path allows
successful, but those strategies reach lenging decision-making conflicts— the two existing teams to reach an
no better than Stage 2 in terms of the types of conflicts that are difficult amenable conclusion. When the
decision making. to resolve without a moderator. independent team fails to dominate
Samsung is a good example of a Instead, decisions were made resistance from the two teams or fails
technology-push firm. Samsung has exclusively by the intuitive team or to make sound business decisions,
been a late mover in the electronics exclusively by the analytic team. This however, this path can bring serious
market. Responding to unparalleled issue explains why Samsung has damage to the firm when conflicts
business challenges, the company first performed well in design awards, but remain unresolved.
expanded its design team from 200 has not yet introduced an iconic A representative example of the
designers in the late 1990s to 1,000 product like the iPhone. firms that follow the technology-
designers in 2011. Samsung has epiphany path is Apple. Apple has
made noticeable debuts in winning The challenge is how to balance the undergone both Stages 3-A and 3-B.
several international design awards. irresolvable tension between operat- Apple is the most notable company
However, the company’s intuitive ing within the current knowledge related to the three paths that we
and analytic teams needed to work stage and moving through the have elaborated on here.
together closely before they were able knowledge funnel. The tension can’t Apple approaches design think-
to deeply understand and appreciate be fully resolved but only balanced ing differently from Samsung. Its
each other’s way of working. The and managed, because reliability and design team does not communicate

30
Evolution of Design Thinking

Figure 10. Stage 3-B and technology-epiphany path.

with its manufacturing team. Instead, consumers—even though their indi- essential to making the Macintosh
an independent team (consisting of vidual features do not necessarily amazing. (Isaacson, 2011, p. 134)
Steve Jobs and his supporters) made outperform the products manufac-
most of the firm’s business decisions. tured by their competitors (including
But then he paused to recognize the
In the process, Jobs limited the Samsung).
role Jobs in fact played. “In so many
decision-making power of the ana-
other companies, ideas and great
lytic teams in order for them to be “It was going to be thrown in the trash
design team would have been com-
comparable with the power of the as soon as the consumer opened it, but
pletely irrelevant, nowhere, if Steve
intuitive team. Note that although he was obsessed by how it looked.” To
hadn’t been here to push us, work
Steve Jobs was often criticized for his Rossmann, this showed a lack of
with us, and drive through all the
assertive decisions, he did free the balance; money was being spent on
resistance to turn our ideas into
intuitive team from the analytic team. expensive packaging while they were
products.” (Isaacson, 2011, p. 347)
As a result, Apple products are trying to save money on the memory
(Figure 11)
welcomed by a massive number of chips. But for Jobs, each detail was

31
Design Management Journal

Figure 11. Apple’s technology-epiphany path.

Figure 12. iPhone versus Galaxy.

Conclusion design thinking. We defined team- teams, combined this framework with
In the present work, we aimed to level design thinking as achieving a the innovation matrix, and applied
understand and apply the concept of balance between intuitive and analytic the framework to the business cases of

32
Evolution of Design Thinking

Apple and Samsung. We posited that managers should first assess environ- 1999). Further, researchers need to
managers consider environmental mental dynamics and firm capabili- collect more business cases in order
dynamics and firm capabilities when ties. When the environment is less to clearly separate the two design-
selecting one of the three paths: the dynamic, they should favor the thinking paths—technology-push
design-driven path; the technology- design-driven path. However, when path and technology-epiphany
push path; and the technology-epiph- the environment presents constant path—and then compare their
any path. and significant changes, a firm should business performance outcomes to
We described each path in detail, adopt the technology-push path or identify the superior path. &
using one firm for each path as an the technology-epiphany path, Reprint #13081CHA22
example: Herman Miller, Samsung, depending on that firm’s capabilities.
and Apple. In particular, we empha- We additionally offer specific
sized that Samsung and Apple have suggestions to those managers who References
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Samsung has mixed the intuitive and be optimal. These managers should Harvard Business Review, June, pp.
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• Support this independent coor- Agenda. Chichester, UK: Wiley.
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• Keep track of the business per- Design Council. (2005). Design Index:
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Design Management Journal

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Jaewoo Joo is an assistant
Liedtka, J. (2004). “Design Thinking: Innovation: Changing the Rules of professor of marketing, College of
The Role of Hypotheses Generation Competition by Radically Innovating Business Administration, Kookmin
and Testing.” In R. Boland, F. Col- What Things Mean. Boston: Harvard University. He holds a PhD in
lopy (Eds.), Managing as Designing Business School Press. marketing from Rotman School of
(pp. 193–197). Stanford, CA: Stan- Whitney, P. (2006). “Design Visionary.” Management at the University of
ford University Press. BusinessWeek, June 19, pp. 12–14. Toronto and an MBA from Seoul
Mantel, S., Kardes, F. (1999). “The Role National University. He writes about
of Direction of Comparison, Attri- Author biographies design and marketing through the
bute-Based Processing, and Attitude- lens of the psychology of judgment
Based Processing in Consumer Pref- YoungJoong Chang is a director-
general at Korea Foundation of and decision making. He has been
erence.” Journal of Consumer Research,
Design Association. He is a graduate invited to attend the National Sci-
25, pp. 335–352.
of Seoul National University and ence Foundation’s interdisciplinary
Martin, R. (1995). The Design of
Business: Why Design Thinking Is the Harvard University. He worked for design workshops and has served as a
Next Competitive Advantage. Boston: LG Electronics and Samsung Elec- panelist for BusinessWeek’s “World’s
Harvard Business School Press. tronics as a designer before pursuing Best Design Schools” issue.

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