Comprehensive Capability Model for Managing Business Driven Innovation through the use of Design Quality Scorecards

Abstract

Identifying business opportunities by matching an organization’s internal capabilities with its external environment is to a large extent about applying the right framework to risk and return. This paper first proposes a new framework, the Market-Technology Risk Matrix (MTR matrix) and a Design Balanced Scorecard method based on Design Quality Criteria (DQC), a set of nine criteria derived from auditing design awards and design briefs worldwide for matching an organization’s capabilities and its strategic environment to innovation type. By following a four-step process the connection between an organization’s cultures, strategic environment, innovation strategy and design metrics can be established and communicated through Design Balanced Scorecards. We then outline the design opportunities available, corresponding to Incremental and Breakthrough Innovation strategies, as well as relevant metrics for managing their implementation. Finally, we illustrate both types of innovation strategies with examples from two corporations – Apple Inc. and Samsung Electronics with contrasting capability. In conclusion, an organizations’ risk-attitude is at the core of building competitive advantages and informs the relevant design metrics for managing innovation performance. The paper thus contributes to the domain of decision-making and in particular to decision-support literature.

Keywords:

• business management
• design management
• innovation management
• design metrics
• strategy
• balanced scorecards

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Søren Ingomar Petersen

Dr Søren Petersen is an international business consultant and design science researcher, author and a regular contributor to The Huffington Post – The Creative Economy: http://www.huffingtonpost.com/soren-petersen. Throughout his 20-year career, he has worked with many top tier international organizations, including BMW Group, Stanford University, Copenhagen Business School, Fraunhofer Institute, INDEX: Award and Hanyang University. He received his PhD from Stanford University in ME Design Research, MS Mechanical Engineering from The Technical University of Denmark and his BS Transportation Design from Art Center College of Design. He has published 25 papers, 200 articles, as well as authored Profit from Design.

Ji Eun Kim

Jieun Kim is Associate Professor and the co-leader of Imagine Lab at Graduate School of Technology and Innovation Management in Hanyang University, Korea. Previously she was a Leverhulme Research Fellow at the Royal College of Art. In 2011 she completed her MSc and PhD in Design at Arts et Metiers ParisTech. Her research interest covers the area of technology design for innovation, including intellectual property, R&D process, and UI/UX in design.

Brigitte Borja de Mozota

Brigitte Borja de Mozota is founder and director of Designence ™, a Think Tank on Design thinking and Design management for companies and institutions. Previously she was director of research at Paris College of Art (PCA) and at Brunel university (UK), as well as professor in marketing at Université Paris Ouest and a member of the research laboratory Institut ACTE/Université Paris I Sorbonne. Brigitte is an international speaker, researcher and writer on Design Management and teaches design management in various Masters courses on design and innovation in design schools and business schools.