Advertisement

Creating Meaningful Value Propositions

Chapter

Abstract

Designing meaningful innovations that create value for users, organizations, ecosystems and society requires a holistic view to integrate seemingly conflicting needs and requirements into compelling solutions. This chapter describes and illustrates with examples the way of thinking, the process and the tools to reach an integrative value proposition and its accompanying value formula. It shows that innovation projects of this kind typically have higher uncertainties, which translates into the need to integrate knowledge and experience from various disciplines, and to follow a more explorative approach in the initial phases of the projects. Building on the literature from design, marketing, business and innovation management, as well as extensive practical experience in projects in the field, an approach is defined that describes pragmatically how to define and realize meaningful innovations. It contains descriptions of methods and ways of working, together with examples.

Keywords

Business Model Uncertainty Avoidance Business Model Innovation Alarm Clock Transformational Innovation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. 1.
    Alblas, Alex, Elke den Ouden, and Rens Brankaert. 2011. Creating reciprocal value propositions. The case of the improvement of the quality of life of Alzheimer patients and their caregivers. Submitted for the 4th world conference on design research, International Association of Societies of Design Research, 31 October–4 November, Delft, The Netherlands.Google Scholar
  2. 2.
    Baden-Fuller, Charles, and Mary S. Morgan. 2010. Business models as models. Long Range Planning 43: 156–171.CrossRefGoogle Scholar
  3. 3.
    Ballon, Pieter. 2007. Business modelling revisited: The configuration of control and value. Info 9(5): 6–19.CrossRefGoogle Scholar
  4. 4.
    Behrens, Roy R. 1998. Art, design and gestalt theory. Leonardo 31(4): 299–303.CrossRefGoogle Scholar
  5. 5.
    Bielderman, Marlies, Mili Docampo Rama, Megumi Fujikawa and Lekshmy Parameswaran. 2008. Envisioning transitions: A design process for healthcare and wellbeing. Philips Design.Google Scholar
  6. 6.
    Blamey, R.K., Mick S. Common, and J. Quiggin. 1995. Respondents to contingent valuation surveys: Consumers or citizens? Australian Journal of Agricultural Economics 39(3): 263–288.Google Scholar
  7. 7.
    Blomquist, Asa, and Mattias Arvola. 2002. Personas in action: Ethnography in an interaction design team. Proceedings of the NordiCHI, 19–23 October.Google Scholar
  8. 8.
    Brown, Tim. 2009. Change by design: How design thinking transforms organisations and inspires innovation. New York: HarperCollins Publishers.Google Scholar
  9. 9.
    Button, Graham. 2000. The ethnographic tradition and design. Design Studies 21: 319–332.CrossRefGoogle Scholar
  10. 10.
    Chesbrough, H. 2010. Business model innovation: Opportunities and barriers. Longe Range Planning 43: 354–363.CrossRefGoogle Scholar
  11. 11.
    Chesbrough, Henry W. 2007. Why companies should have open business models. MIT Sloan Management Review 48(2): 22–28.Google Scholar
  12. 12.
    Citizen M. Philips 2007. Introduces simplicity to the hotel experience. Press release, 23 Oct. 2007 http://www.citizenm.com/press/philips-introduces-simplicity-to-the-hotel-experience.
  13. 13.
    Cooper, Alan. 2004. The inmates are running the asylum: Why high tech products drive us crazy and how to restore the sanity. Indiana: Sams Publishing.Google Scholar
  14. 14.
    Cross, Nigel. 2006. Designerly ways of knowing. London: Springer.Google Scholar
  15. 15.
    Dahan, Nicolas M., Jonathan P. Doh, Jennifer Oetzel, and Michael Yaziji. 2010. Corporate-NGO collaboration: Co-creating new business models for developing markets. Long Range Planning 43: 326–342.CrossRefGoogle Scholar
  16. 16.
    Ulrike, De Brentani. 2001. Innovative versus incremental new business services: Different keys for achieving success. Journal of Product Innovation Management 18: 169–187.CrossRefGoogle Scholar
  17. 17.
    Marieke, De Mooij. 2004. Consumer behavior and culture: consequences for global marketing and advertising. London: Sage Publications.Google Scholar
  18. 18.
    Den Ouden, Elke. 2009. Designing (Added) Value: Social Innovation in Flexible Networks. Inaugural Lecture Eindhoven University of Technology. ISBN 978-90-386-2096-1, 23 October.Google Scholar
  19. 19.
    Den Ouden, Elke, Darren Ee, and Nicky Goh. 2008. The Philips InnoHub: Generating Breakthrough Innovations in an Open Innovation Setting. PDMA Visions Magazine, March.Google Scholar
  20. 20.
    Den Ouden, Elke, and Rianne Valkenburg. 2011. Balancing Value in Networked Social Innovation. Participatory Innovation Conference Proceedings, Sonderborg, Denmark, 13–15 January.Google Scholar
  21. 21.
    Doganova, Liliana, and Marie Eyquem-Renault. 2009. What do business models do? Innovation devices in technology entrepreneurship. Research Policy 38: 1559–1570.CrossRefGoogle Scholar
  22. 22.
    Dorst, Kees. 2003. The problem of design problems. In Expertise in design, eds. N. Cross, and E. Edmonds, 135–147. Sydney: Creativity and Cognition Studio Press.Google Scholar
  23. 23.
    Dourish, Paul. 2006. Implications for design. CHI 2006 Proceedings Design: Creative & Historical Perspectives, Montreal, Quebec, Canada, April 22–27.Google Scholar
  24. 24.
    Doz, Yves L., and Mikko Kosonen. 2010. “Embedding strategic agility: A leadership agenda for accelerating business model renewal”. Long Range Planning 43: 370–382.CrossRefGoogle Scholar
  25. 25.
    Eyring, Matthew J, Mark W. Johnson, and Hari Nair. 2011. New Business Models in Emerging Markets. Harvard Business Review, January.Google Scholar
  26. 26.
    Fischer, Gerhard, and Elisa Giaccardi. 2006. Meta-design: A framework for the future of end-user development. In End user development. Human computer interaction series, vol. 9, eds. Henry Lieberman, Fabio Paterno, and Volker Wulf, 427–457. Berlin: Springer.Google Scholar
  27. 27.
    Gerd, Fricke. 1999. Successful approaches in dealing with differently precise design problems. Design Studies 20(5): 417–429.CrossRefGoogle Scholar
  28. 28.
    Gambardella, Alfonso, and Anita M. McGahan. 2010. Business model innovation: General purpose technologies and their implications for industry structure. Long Range Planning 43: 262–271.CrossRefGoogle Scholar
  29. 29.
    Garcia, Rosanna, and Roger Calantone. 2002. A critical look at technological innovation typology and innovativeness terminology: A literature review. Journal of Product Innovation Management 19: 110–132.CrossRefGoogle Scholar
  30. 30.
    Goel, Vinod, and Peter Pirolli. 1992. The structure of design problem spaces. Cognitive Science 16: 395–429.CrossRefGoogle Scholar
  31. 31.
    Gordijn, Jaap, Alexander Osterwalder, and Yves Pigneur. 2005. Comparing two business model ontologies for designing e-Business models and value constellations. 18th Bled eConference eIntegration in Action, Bled, Slovenia, June 6–8.Google Scholar
  32. 32.
    Govindarajan, Vijay, and Chris Trimble. 2011. The CEO’s role in business model reinvention. Harvard Business Review, January/Febrauary.Google Scholar
  33. 33.
    Griffin, Abbie. 2005. Obtaining customer needs for product development. In The PDMA handbook of new product development, 2nd edn, ed. Kenneth B. Kahn. New York: Wiley.Google Scholar
  34. 34.
    Gunther McGrath, Rita. 2010. Business models: A discovery driven approach. Long Range Planning 43: 247–261.CrossRefGoogle Scholar
  35. 35.
    Gunther McGrawth, Rita. 2011. When your business model is in trouble: How to recognise—and react to—signs of an impeding crisis. Harvard Business Review, January.Google Scholar
  36. 36.
    Gunther McGrath, Rita, and Ian C. MacMillan. 1995. Discovery driven planning. Harvard Business Review, 1995.Google Scholar
  37. 37.
    Haaker, Timber, Edward Faber, and Harry Bouwman. 2006. Balancing customer and network values in business models for mobile services. International Journal of Mobile Communications 4(6): 645–661.Google Scholar
  38. 38.
    Hamel, Gary, and C.K. Prahalad. 1994. Competing for the future: Breakthrough strategies for seizing control of your industry and creating the markets of tomorrow. Boston, MA: Harvard Business Press.Google Scholar
  39. 39.
    Johnson, Mark W. 2010. Seizing the white space: Business model innovation for growth and renewal. Boston, MA: Harvard Business Press.Google Scholar
  40. 40.
    Johnson, Mark W., Clayton M. Christensen, and Henning Kagermann. 2008. Reinventing Your Business Model. Harvard Business Review, December.Google Scholar
  41. 41.
    Kelley, Tom. 2002. The art of innovation: Lessons in creativity from IDEO, america’s leading design firm. London: HarperCollins Business.Google Scholar
  42. 42.
    Kim, W., and Renee Mauborgne Chan. 2005. Blue ocean strategy: How to create uncontested market space and make the competition irrelevant. Boston, MA: Harvard Business Press.Google Scholar
  43. 43.
    Kyffin, Steven, and Paul Gardien. 2009. Navigating the innovation matrix: An approach to design-led innovation. International Journal of Design 3(1): 57–69.Google Scholar
  44. 44.
    Louridas, Panagiotis. 1999. Design as bricolage: anthropology meets design thinking. Design Studies 20: 517–535.Google Scholar
  45. 45.
    Lawson, Bryan, and Kees Dorst. 2009. Design expertise. Oxford: Elsevier.Google Scholar
  46. 46.
    Lindsay, Christina. 2003. Involving people as co-creators. In The new everday: Views on ambient intelligence, ed. Emile Aarts, and Stefano Marzano. Rotterdam, The Netherlands: 010 Publishers.Google Scholar
  47. 47.
    Lynn, Gary S., Joseph G. Morone, and Albert S. Paulson. 1996. Marketing and discontinuous innovation: The probe and learn process. California Management Review 38(3): 3–37.Google Scholar
  48. 48.
    Maarse, Johan Henk. 2011. Cradle to cradle implementation at desso. Participatory Innovation Conference Sonderborg, Denmark, 13–15 January.Google Scholar
  49. 49.
    Malone, Thomas W., Peter Weill, Richard K. Lai, Victoria T. D’Urso, George Herman, Thomas G. Apel, and Stephanie L. Woerner. 2006. Do some business models perform better than others? MIT Sloan School of Management Working Paper No. 4615–06.Google Scholar
  50. 50.
    Martin, Roger. 2009. The design of business: Why design thinking is the next competitive advantage. Boston, MA: Harvard Business School Press.Google Scholar
  51. 51.
    Martin, Roger. 2007. The opposable mind. How successful leaders win through integrative thinking. Boston, MA: Harvard Business Press.Google Scholar
  52. 52.
    Mason, Heidi, and Tim Rohner. 2002. The venture imperative: A new model for corporate innovation. Harvard Business Press, Boston, MA. www.bellmasongroup.com.
  53. 53.
    Max-Neef, Manfred A. 2005. Foundations of transdisciplinarity. Ecological Economics 53: 5–16.CrossRefGoogle Scholar
  54. 54.
    McDermott, Christopher M., and Gina Colarelli O’Connor. 2002. Managing radical innovation: An overview of emergent strategy issues. Journal of Product Innovation Management 19: 424–438.CrossRefGoogle Scholar
  55. 55.
    Moore, Geoff. 2004. The fair trade movement: Parameters, issues and future research. Journal of Business Ethics 53: 73–86.CrossRefGoogle Scholar
  56. 56.
    Morris, Michael, Minet Schindehutte, and Jeffrey Allen. 2005. The entrepreneur’s business model: Toward a unified perspective. Journal of Business Research 58: 726–735.CrossRefGoogle Scholar
  57. 57.
    Mullins, John, and Randy Komisar. 2009. Getting to plan B. Breaking through to a better business model. Boston, MA: Harvard Business Press.Google Scholar
  58. 58.
    Nunes, Paul, and Tim Breene. 2011. Reinvent your business before It’s too late. Harvard Business Review, January.Google Scholar
  59. 59.
    Osterwalder, Alexander, and Yves Pigneur. 2010. Business model generation: A handbook for visionairies, game changers, and challengers. New York: Wiley.Google Scholar
  60. 60.
    Oxford Dictionary of English (revised edition). ed. Catherine Soanes and Angus Stevenson. Oxford University Press, 2005. Oxford Reference Online. Accessed 7 December 2010.Google Scholar
  61. 61.
    Parameswaran, Lekshmy, and Jeroen Raijmakers. 2010. People-focused innovation in healthcare. How philips design supports development of solutions for the ever-changing healthcare landscape. Philips Design.Google Scholar
  62. 62.
    Prahalad, C.K., and Venkat Ramaswamy. 2004. The future of competition: Co-creating unique value with customers. Boston, MA: Harvard Business Press.Google Scholar
  63. 63.
    Pruitt, John, and Jonathan Grudin 2003. Personas: practice and theory. Proceedings of the Conference of Designing for User Experiences, New York.Google Scholar
  64. 64.
    Rappa, M.A. 2004. The utility business model and the future of computing services. IBM Systems Journal, 43(1): 32–42Google Scholar
  65. 65.
    Rogers, Everett M. 2003. Diffusion of innovations, 5th edn. New York: Free Press.Google Scholar
  66. 66.
    Rotte, Andre, Rianne Valkenburg, Slava Kozlo, Otto Kokke. Future Telling. (In Dutch). Design Initiatief, The Netherlands, 2009.Google Scholar
  67. 67.
    Skarzynski, Peter, and Rowan Gibson. 2008. Innovation to the core: A blueprint for transforming the way your company innovates. Boston, MA: Harvard Business Press.Google Scholar
  68. 68.
    Smets, Gerda. Vormleer. De Paradox van de Vorm. (In Dutch) Uitgeverij Bert Bakker, Amsterdam, The Netherlands, 1986.Google Scholar
  69. 69.
    Smith, Preston G., and Donald G. Reinertsen. 1998. Developing products in half the time: New rules, new tools, 2nd edn. New York: Wiley.Google Scholar
  70. 70.
    Smith, Robert P., and Primanata Tjandra. 1998. Experimental observation of iteration in engineering design. Research in Engineering Design 10: 107–117.CrossRefGoogle Scholar
  71. 71.
    Song, X.Michael, and Mitzi M. Montoya-Weiss. 1998. Critical development activities for really new versus incremental products. Journal of Product Innovation Management 15(2): 124–135.CrossRefGoogle Scholar
  72. 72.
    Teece, David J. 2010. Business models business strategy and innovation. Long Range Planning 43: 172–194.CrossRefGoogle Scholar
  73. 73.
    Thompson, James D., and Ian C. MacMillan. 2010. Business models: Creating new markets and societal wealth. Long Range Planning 43(2–3): 291–307.CrossRefGoogle Scholar
  74. 74.
    Thompson Klein, Julie. 2004. Prospects for transdisciplinarity. Futures 36: 515–526.CrossRefGoogle Scholar
  75. 75.
    Timmers, Paul. 1998. Business models for electronic markets. Electronic Markets, 8(2):3–8Google Scholar
  76. 76.
    Ulrich, Karl T., and Steven D. Eppinger. 2000. Product design and development. Boston: McGraw-Hill.Google Scholar
  77. 77.
    Valkenburg, Rianne, and Elke Den Ouden. 2011. Design Initiatief first phase. Working paper.Google Scholar
  78. 78.
    Valkenburg, Rianne, and Kees Dorst. 1998. The reflective practice of design teams. Design Studies 19(3): 249–272.CrossRefGoogle Scholar
  79. 79.
    Verstraete, Thierry, and Estele Jouison. 2006. Connecting stakeholders theory and conventions theory to highlight the adhesion of stakeholders to the business model of a start-Up. International Council for Small Business, 51st World Conference, Melbourne, Australia, June.Google Scholar
  80. 80.
    Veryzer Jr, Robert W. 1998. Discontinuous innovation and the new product development process. Journal of Product Innovation Management 15: 304–321.CrossRefGoogle Scholar
  81. 81.
    Hippel Eric, Von. 2006. Democratizing innovation. Cambridge, MA: MIT Press.Google Scholar
  82. 82.
    Wasson, Christina. 2000. Ethnography in the field of design. Human Organisation 59(4).Google Scholar
  83. 83.
    Wijnberg, Nachoem M. 2000. Normative stakeholder theory and aristotle: The link between ethics and politics. Journal of Business Ethics 25(4): 329–342.CrossRefGoogle Scholar
  84. 84.
    Woodall, Tony. 2003. Conceptualising ‘value for the customer’: an attributional, structural and dispositional analysis. Academy of Marketing Science Review 2003(12): 1526–1794.Google Scholar
  85. 85.
    Yunus, M., B. Moingeon, and L. Lehmann-Ortega. 2010. Building social business models: Lessons from the grameen experience. Long Range Planning 43: 308–325.CrossRefGoogle Scholar
  86. 86.
    Zaltman, Gerald. 2003. How customers think. Essential insights into the mind of the market. Boston, MA: Harvard Business Press.Google Scholar

Copyright information

© Springer Verlag London Limited 2012

Authors and Affiliations

  1. 1.Industrial DesignEindhoven University of TechnologyEindhovenThe Netherlands

Personalised recommendations