ArticlePDF Available

Abstract and Figures

Design-led innovation has recently emerged as an approach that assists companies to de- velop new capabilities to respond to changing markets. Previous research has shown that the application of design-led innovation to manufacturing businesses contributed to innov- ation across their business model, often repositioning the business and its offerings in the market. This article presents findings from a study where the researcher was embedded in an Australian firm, working four days per week for 11 months and using action research to apply design-led innovation. Deep insights from stakeholders were translated with the company staff into new value propositions for the company. This research demonstrates the largely untapped potential of an experienced designer as an innovation catalyst to help firms develop customer-inspired innovation as they use design-led innovation to overcome barriers and recognize opportunities within a changing market context. This study contrib- utes new knowledge regarding benefits of design-led innovation in dynamic environments.
Content may be subject to copyright.
Technology Innovation Management Review June 2016 (Volume 6, Issue 6)
49
www.timreview.ca
Outcomes from Applying Design-Led Innovation
in an Australian Manufacturing Firm
Peter Townson, Judy Matthews, and Cara Wrigley
Introduction
Companies with prior success with technological innov-
ation are often not aware of new methods of gaining in-
formation about the demands for their products and
services using customer-focused methods. Design
mindsets, philosophies, and principles have been im-
plemented through design thinking (Brown, 2008,
2009), design-driven innovation (Verganti, 2009), and
more recently design-led innovation (Bucolo et al.,
2012). These approaches represent a powerful way to
generate, shape, and deliver new value propositions
and innovation in a range of companies.
Much of the literature regarding applications of design
thinking, design driven innovation, and design-led in-
novation has focused on large firms (Brown & Martin,
2015; Kolko, 2015; Smith, 2015; Yoo & Kim, 2015) with
an absence of research regarding small and medium-
sized enterprises. In addition, although the benefits of
design management programs where design consult-
ants have used processes and methods to assist firms to
capture deep customer insights, restructure the busi-
ness, and increase the firm’s competitiveness – have
previously been seen (Hollinger, 2012), there is scant re-
search that investigates the use of designers undertak-
ing action research projects as innovation catalysts em-
bedded in small and medium-sized enterprises in the
manufacturing sector.
The study described in this article explored possibilities
of design-led innovation in small and medium-sized en-
terprises where a designer using action research acted
as an innovation catalyst. The aim was to increase
knowledge of the influence and benefits of design-led
innovation in assisting companies to generate new
ways of working and new possibilities for the company.
The research question driving the study was: how can a
small or medium-sized manufacturer use design-led in-
novation to overcome barriers and recognize opportun-
ities within a changing market context? The primary
goal was to identify key imperatives to assist the com-
pany overcome barriers in implementing design-led in-
novation into their company culture.
This research builds new knowledge in understanding
the practical application of various methods within the
design-led innovation framework, and their impact and
effect on the company. Action research expressly en-
courages a collaborative approach with a company that
Design-led innovation has recently emerged as an approach that assists companies to de-
velop new capabilities to respond to changing markets. Previous research has shown that
the application of design-led innovation to manufacturing businesses contributed to innov-
ation across their business model, often repositioning the business and its offerings in the
market. This article presents findings from a study where the researcher was embedded in
an Australian firm, working four days per week for 11 months and using action research to
apply design-led innovation. Deep insights from stakeholders were translated with the
company staff into new value propositions for the company. This research demonstrates
the largely untapped potential of an experienced designer as an innovation catalyst to help
firms develop customer-inspired innovation as they use design-led innovation to overcome
barriers and recognize opportunities within a changing market context. This study contrib-
utes new knowledge regarding benefits of design-led innovation in dynamic environments.
Everyone designs who changes existing
situations in preferred futures.
Herbert A. Simon (1916–2001)
In The Sciences of the Artificial
Technology Innovation Management Review June 2016 (Volume 6, Issue 6)
50
www.timreview.ca
Applying Design-Led Innovation in an Australian Manufacturing Firm
Peter Townson, Judy Matthews, and Cara Wrigley
is experiencing change, and is particularly important to
the research aim of using design-led innovation as a
mechanism to bring about organizational change. We
begin by considering extant research regarding links
between design and innovation before outlining meth-
odology, describing findings, and concluding with prac-
tical implications.
Design and Innovation
Design-led innovation is a process that shifts the role of
a designer to work across an organization to radically
change a company’s view of the value proposition
offered to customers (Kyffin & Gardien, 2009), to co-
design (Chesbrough & Schwartz, 2007), and to generate
a unique and sustainable competitive advantage (Bu-
colo & Matthews, 2011b). With the relative newness of
design-led innovation, case study research into the
complexities faced by companies with the implementa-
tion and integration of this process is quite sparse. To
add a new perspective, this research presents a case
study of one Australian manufacturing company oper-
ating in the mining equipment, technology, and ser-
vices (METS) sector, and how design-led innovation fits
within their family-owned and engineering-driven or-
ganizational and cultural framework.
Design-led innovation is broadly defined as a method
that allows a company to consider and evaluate radic-
ally new propositions from multiple perspectives, typic-
ally spanning user needs, business requirements, and
technology demands (Bucolo et al., 2012). Key to this
process is that design is core to a company’s vision,
strategy, culture, leadership, and development pro-
cesses. The design-led innovation framework outlined
below (Figure 1), provides a conceptual structure to as-
sist the development of innovation through collabora-
tion across the entire organization; it integrates the
operational functions with the strategic vision by com-
bining internal and external sources.
The importance and potential of thinking and working
as a designer, popularly referred to as “design think-
ing”, is increasingly being recognized as a valuable pro-
cess for generating new ways of working and new
solutions. Design thinking “uses the designer’s sensibil-
ity and methods to match people’s needs with what is
technically feasible and what business strategy can con-
vert into customer value and market opportunities”
(Brown, 2008). With this widely accepted notion (Hollo-
way, 2009; Liedtka & Ogilvie 2010; Norman & Verganti,
2012; Verganti, 2010; Ward et al., 2009), design thinking
holds a customer-centric view by utilizing human-
Figure 1. The design-led innovation framework (Adapted from Bucolo et al., 2012)
Technology Innovation Management Review June 2016 (Volume 6, Issue 6)
51
www.timreview.ca
Applying Design-Led Innovation in an Australian Manufacturing Firm
Peter Townson, Judy Matthews, and Cara Wrigley
centred design, experimentation, and concept proto-
typing as ways for a design to have an impact across the
innovation process (Holloway, 2009; Norman & Ver-
ganti, 2012; Ogilvie, 2010; Verganti, 2010; Ward et al.,
2009). Design thinking as a style of thought is built
upon “abductive reasoning” (C. S. Peirce cited in Cross,
1982; Martin, 2004, 2009, 2010). Abductive reasoning is
“reasoning in which explanatory hypotheses are
formed and evaluated” (Thagard & Shelley, 1997); it is
“characteristically 'constructive' thinking… something
peculiar to design” (Cross, 1982).
Design thinking uses a method of prototyping to reduce
the risk in a business model concept by testing it with
the marketplace; it allows for the creative development
of an idea. By taking a holistic systems perspective,
design thinking creates strong value propositions that
interweave through business model development so
the value received is greater than the sum of the parts.
Design as an innovation mechanism is an iterative pro-
cess that can assist in both uncovering problems with
stakeholders, analyzing some possibilities, and then
synthesizing multiple elements to form new solutions.
During this process, the practitioner moves between
the concrete and abstract worlds of understanding
(Beckman & Barry, 2009) to build new value proposi-
tions.
Design-led innovation builds on this theory by intern-
ally aligning the solution with the company's strategy,
resources, and brand. Design and innovation as organ-
izational processes work with the staff who deliver the
resultant innovation, not in isolation from organization-
al systems. Design-led innovation can also align corpor-
ate ideologies to fit and potentially leverage the
company's internal capabilities, resources, and brand
(business model) in order to generate an innovative
solution that creates a competitive advantage.
Design thinking is a foundational activity within design-
led innovation, by leveraging a creative systems per-
spective that integrates the design of the business mod-
els. Design-led innovation is a philosophy that
“examines every core facet of the business, to realign
business strategy with customer needs and possible
market futures” (Pozzey et al., 2012). Design-led innova-
tion is derived through a creative interrelationship
between these fundamental business elements to gen-
erate true value for the customer and to capture profits
for growth, as shown in Figure 2.
In Australia, the mining equipment, technology and ser-
vices (METS) sector is comprised of predominately
engineering-based organizations (Tedesco & Curtotti,
2005) that “provide technology and services to make
the nation’s mining industry competitive” (CSIRO,
2003). Exporting over AUD $6 Billion annually (Aust-
mine, 2012), the METS sector has become more profit-
able than the mining industry within Australia (CSIRO,
2003). With the relative newness of design-led innova-
tion, case study research into the complexities faced by
companies with the implementation and integration of
this process is quite sparse. This research presents a
case study of one Australian manufacturing company
operating in the METS sector, and explores design-led
innovation within their family-owned and engineering-
driven organizational and cultural framework. To main-
tain anonymity, here we refer to the company as
METSCo.
The current Managing Director of METSCo founded
the company 24 years ago by manufacturing a disrupt-
ive innovation for the mining industry. This medium-
sized company of 170 staff with headquarters in Aus-
tralia and international sales offices develops products
and technology services in a business-to-business con-
text. At the time of the study, the CEO and the Top Man-
agement Team were seeking the next disruptive idea to
take the business to new horizons. The company had
sought assistance through a funded government pro-
Figure 2. Design-led innovation (DLI) as derived in the
intersection of fundamental business elements
Technology Innovation Management Review June 2016 (Volume 6, Issue 6)
52
www.timreview.ca
Applying Design-Led Innovation in an Australian Manufacturing Firm
Peter Townson, Judy Matthews, and Cara Wrigley
gram where a graduate research student could work
with the company in a 12-month research program to
innovate for growth in a dynamic environment and to
generate new insights about the firm and strategic and
operational directions.
Methodology
Action research was selected as the method of choice to
engage staff within the case organization, and it has
been previously used to explore the potential of design
(Swann, 2002). Action research is a cyclical process of
planning, acting, observing, reflecting, and critically
analyzing (Kemmis, 2009), where these cycles inform
larger action research cycles (Davis, 2004). The method-
ology is well-suited to the journey of design-led innova-
tion because both approaches require continuous and
balanced engagement with the company in all stages of
the cycle (Burns & Brown, 2002). The process assists
staff to improve their capacities to solve problems, to
develop skills (including professional skills), to increase
their chances of self-determination, and to have more
influence on the functioning and decision-making pro-
cesses of the organization.
Adopting an action research methodology, the re-
searcher was embedded within the company, working
four days a week over an 11-month period. This longit-
udinal research specifically investigated the barriers to
design-led innovation and opportunities that de-
veloped throughout this research. The goal was to un-
derstand how the organization and culture of the METS
company evolved and how it progressed towards
design-led change.
Data were collected using semi-structured qualitative
interviews at two distinct points of time during the re-
search project, initially with 15 employees after three
months working with the company and with 20 employ-
ees after nine months. A focus group and a reflective
journal provided further relevant information. Data
captured from these methods were analyzed thematic-
ally for patterns that informed the barriers, opportunit-
ies, and imperatives that resulted from a design-led
innovation engagement.
The researcher worked through an iterative process of
diagnosing the problem, planning the course of action,
taking action with the participants, and evaluating the
consequences of the action and specifying learnings,
which in turn fed into the next evolution of the action
research cycle in this longitudinal study. The researcher
worked with the company staff in small groups to
demonstrate an approach that could be piloted and
then dispersed productively among all employees of
the firm. Activities and interventions by the catalyst in-
cluded capturing deep customer and stakeholder in-
sights, applying these insights in operational and
strategic dimensions of the business, and disseminat-
ing insights within company. Thematic analysis (Miles
& Huberman 1994) was conducted on the combined
data sets in order to identify the nature of responses
and change processes in the firm and to compare
changes over time.
Findings
Prior to the research project at METSCo, the Managing
Director had already received sponsored research into
design-led innovation as a result of a desire “to find
mechanisms to embed more of that (design-led innova-
tion) thinking more deeply into the whole engineering
team so that the place wasn’t just dependent on (a few
key people).”
The Managing Director presented his own personal
journey in understanding the theory of design-led in-
novation, describing to the wider company his own
continual journey of uncomfortable change, moments
of clarity, followed by self-doubt. Participants saw the
buy-in from the top as crucial: “The most successful
change in this organization is directly sponsored by the
Managing Director. So if he decrees something, then we
all get into line and make things happen; if we don't,
there is no other mechanism to make that happen.”
Additionally, “The tone of the Managing Director sets the
tone of the management team, who sets the tone of the
business.”
The vision and foresight of the Managing Director to
implement the design-led innovation project enabled
not only the senior executives but also all employees to
take a customer-centric view of their job and their com-
pany. One employee notes that, “It was his (the Man-
aging Director’s) realization about the first-class product
being beaten by a second-class business model that
realization alone, is worth everything.” As the company
leader, the Managing Director is the culture leader and,
by disseminating his own insights, like the one quoted
above, encouraged and empowered the engineering-fo-
cused culture to look at innovation beyond technology.
As a result of the design-led innovation project, new op-
portunities were available for METSCo to exploit, to en-
hance their strategic development with a newfound
perspective of innovation. “A business model is an op-
Technology Innovation Management Review June 2016 (Volume 6, Issue 6)
53
www.timreview.ca
Applying Design-Led Innovation in an Australian Manufacturing Firm
Peter Townson, Judy Matthews, and Cara Wrigley
portunity; a product is only a fraction of what we now
know we can get, and it is almost an embarrassment.”
The perspective of the Managing Director “has matured
from the design-led innovation process… for sure it’s
been part of the catalyst of maturing a vision, which has
certainly changed my attitude toward (moving into new
areas of innovation).”
In gauging the impact that the design-led innovation
project had on his management team, the Managing Dir-
ector reflects that design-led innovation, “Must be there
to a greater or lesser degree in all the decision makers in
(our company). They must have absorbed something, be-
cause we couldn’t be going down the directions with the
authority that we’re going down these directions.”
Within this case study, the managers of METSCo began
engaging with design tools and design thinking as a way
to quickly prototype businesses models in a rapidly de-
clining economic environment. Specifically, it was the
hands-on practical experience of the managers with
design-led innovation that helped employees overcome
barriers in design language and speculation on its theor-
etical application.
For METSCo to be able to deliver innovative solutions to
create customer value, it was crucial to gain agreement
and commitment to an organizational and cultural per-
spective, which allows and supports a strategic shift
such as this. As one participant notes, "The first step is
knowing the customers, but then if you've got to change
internally, how do you do that?” This organizational
change perspective is commonly raised in academic lit-
erature with regards to business model innovation (Ch-
hatpar, 2007; Zott & Amit, 2010), strategy (Pascale &
Sternin, 2005; Porter, 1996), and design-led innovation
implementation (Matthews et al., 2012; Pozzey et al.,
2012), highlighting its necessity to achieve and sustain
breakthrough innovations.
Although the pressure of the declining mining cycle was
forcing METSCo to change and look at its business dif-
ferently, it was the awakening of senior executives to cus-
tomer pressures that enabled the value of design-led
innovation to be understood and experienced: “We real-
ized that it’s okay to prototype. And we started to proto-
type things to customers finally… that wasn’t so bad.
That didn’t hurt us by putting something to market that
wasn’t totally 100%.”
From an organizational change perspective, the imperat-
ive of having active engagement of employees at all
levels with design-led innovation tools and theories, and
allowing their experiences become the driver for con-
tinuous change in becoming design-led, is clearly
demonstrated. From a company that was justifiably fo-
cused internally on technology innovation, METSCo
now is beginning to see how design-led innovation has
taken a change perspective to guide a engineering cul-
ture toward the customers “job to be done”, allowing
the employees to gain new understanding from first-
hand experiences to drive change internally.
By developing and managing design thinking capabilit-
ies with customer-facing staff, the design-led innova-
tion catalyst was able to gain significant customer
insights second-hand, while encouraging and em-
powering these employees to begin to analyze the mar-
ket in new ways. Within design-led innovation, the role
of the catalyst is one that utilizes design thinking to
“translate and facilitate design observation, insight,
meaning, and strategy into all facets of the company”
(Wrigley & Bucolo, 2012).
Due to the complex and remote nature of the mining in-
dustry, the researcher as catalyst (central within the
framework) and a design champion in the company re-
lied on the assumptions created and tested by the cus-
tomer-facing employees and the primary source of
customer insights, from where new business concepts
are generated. Schön’s (1983) seminal work describes a
theory of knowledge as a thought process through hu-
man perception, or a “reflective conversation with the
situation”, where problems are framed in order to take
action to gain clarity around a situation (Bucolo & Mat-
thews, 2011a). “Competent practitioners usually know
more than they can say” (Schön, 1983). Observation-
ally, this work was seen as valuable to rigorously under-
stand METSCo assumptions around customer needs, as
highlighted in the literature as a key feature in business
model innovation (Casadesus-Masanell & Ricart, 2010;
Chhatpar, 2007; McGrath, 2010; Teece, 2010). However,
the ability to test, validate, or disprove these assump-
tions was limited by the personal capabilities of cus-
tomer-facing employees not trained in divergent
learning, let alone design thinking.
The focus group captured the employee realization of
the potential that channelling customer information
and insights into their company could have on their
job, their interaction with their colleagues, and ulti-
mately their customers. Enabling customer-facing em-
ployees to communicate their reflective knowledge
provided direct input on customer situations to pro-
gress and effectively build multi-perspective observa-
tions.
Technology Innovation Management Review June 2016 (Volume 6, Issue 6)
54
www.timreview.ca
Applying Design-Led Innovation in an Australian Manufacturing Firm
Peter Townson, Judy Matthews, and Cara Wrigley
Prototyping as a mechanism for customer-facing em-
ployees to bring customer insights back to the catalyst
was crucial for the project to continue moving forward.
The purpose of the prototype was to engage customer-
facing employees of METSCo to work through design
methods while at mine sites and to generate customer
insights and reflect on them with the catalyst.
The interaction and communication with mining cus-
tomers was a significant factor in changing perspect-
ives. METSCo had traditionally placed a priority in
establishing and maturing organizational processes to
support their primary business in meeting market de-
mand. Engaging customer-facing employees to proto-
type holistic forms of knowledge management
highlights two aspects within the data: i) METSCo
showed commitment in capturing and translating cus-
tomer insights and ii) METSCo developed its under-
standing of the importance that customer-facing
employees play within such a dispersed and isolated in-
dustry. By developing employee and management cap-
abilities in “design thinking”, METSCo began to
holistically address its customer insight processes with
an employee knowledge base that was empowered and
capable to deliver new knowledge to the company.
Discussion and Contributions
Our findings show that a small or medium-sized enter-
prise that embraced a design-led innovation respon-
ded to the catalyst using design-led innovation
processes and practices to explore and learn about
their customers and to capture these insights and re-
configure their capabilities to deliver new more stra-
tegic directions and increased competitiveness. These
findings contribute to a deeper and broader under-
standing of the implementation of design methods and
processes as contributions to strategic renewal of small
and medium-sized enterprises. The research identifies
three specific design principles or “imperatives” de-
rived from the data to guide a design team in
implementing design-led innovation within a METS
company:
1. Design-led change within an engineering-focussed
organization should encourage the company leader-
ship to engage with, reflect upon, and disseminate
their personal journey with design-led innovation.
2. Company management and employees should ex-
perience design-led change first-hand to positively
influence company engagement and commitment
and project traction in the organizational culture.
3. Internal design-thinking capability should allow
METS companies to sustainably generate insights
through their limited but valuable customer engage-
ment.
The significance of these findings is shown in the com-
bined implementation of the design imperatives lead-
ing towards design-led change at all business levels of
an organizational structure. These imperatives are illus-
trated in Figure 3.
This research highlighted three levels of organizational
change at the leadership, management, and employee
levels that occurred as a result of the 11-month embed-
ded design-led innovation engagement with the re-
searcher acting as a catalyst for change within this
Australian METS company. Changes observed
throughout the organization include the company vis-
ion, leadership, innovation, problem solving, customer
centricity – all of these aspects demonstrated a shift
from an engineering culture to a new more inclusive,
customer-centric way of thinking and operating. The
design-led change model brings together three ele-
ments: i) the level in the organization in which design-
led change was being applied, ii) each design imperat-
ive that emerged from each paradigm of business, and
iii) the change that emerged as a result, as shown in
Figure 4.
Figure 3. Three design imperatives (principles) for a design-led innovation engagement within the mining equip-
ment, technology, and services industry
Technology Innovation Management Review June 2016 (Volume 6, Issue 6)
55
www.timreview.ca
Applying Design-Led Innovation in an Australian Manufacturing Firm
Peter Townson, Judy Matthews, and Cara Wrigley
For METSCo, a deeper understanding of their custom-
ers was a large part of the value offering of the catalyst.
The researcher was perceived to be creating value in re-
lation to the firm, the industry, and academia. For ex-
ample, the company linked the introduction of a
design-led approach to developing a new customer-fo-
cused business model and to the shift of the organiza-
tional culture from an engineering culture to a more
customer-focused innovation culture. The researcher’s
role was respectively described by employees as a
change catalyst, a knowledge disseminator, and an or-
ganizational culture reformist.
Conclusions
This research contributes new knowledge regarding the
possibilities that design-led innovation brings to organ-
izations seeking to continuously innovate in dynamic
markets. It also highlights the important role of design-
ers as innovation catalysts in building strong links to ex-
isting and potential customers. Working with the
company and engaging and educating organizational
members with design tools and approaches through
direct experience has taken the company some dis-
tance on the journey with design-led innovation. The
practical application of various methods of the design-
led innovation framework had a positive impact on the
firm's interactions with customers and generated new
business opportunities with these customers. Action re-
search's unique and collaborative approach to working
with the participating company also contributes to the
research aim of using design-led innovation as a mech-
anism to bring about organizational change.
The research identifies three specific design principles
or “imperatives” that guide a design team in imple-
menting design-led innovation within a company. This
study explores the processes of introduction, imple-
mentation, and integration of design-led innovation
within a manufacturing company driven by engineer-
ing innovation in a sector dominated by product and
process improvements.
Companies engaged in a design-led program have to
develop strategies for capturing the value from new
knowledge generated through customer insights. Prac-
tical implications for the firm as a whole include the be-
nefits of bringing new ways of thinking and working
into technologically focused company with a tightly
defined engineering culture.
Figure 4. The design-led change model
Technology Innovation Management Review June 2016 (Volume 6, Issue 6)
56
www.timreview.ca
About the Authors
Peter Townson is a Design Facilitator for the PwC
Chair in Digital Economy at the Queensland Uni-
versity of Technology (QUT) in Brisbane, Australia,
where he recently completed his Master's degree in
design-led innovation. Peter lives the world of design
in the nexus between academia and industry. From
his background as an industrial designer and manu-
facturer, his translation of his craft from the physical
world and into the service and digital worlds' builds
off his post-graduate education and application of
design-led innovation. Peter now facilitates innova-
tion sprints that use design-led innovation to envi-
sion and design the future of our digital economy,
while making his findings relevant to the applied aca-
demic audience of today.
Applying Design-Led Innovation in an Australian Manufacturing Firm
Peter Townson, Judy Matthews, and Cara Wrigley
Implications for designers engaged in design-led innova-
tion within exisiting firms seeking to change their under-
standing include the importance of designers with a
deep understanding of innovation acting as innovation
catalysts. As an active and trusted member of the com-
pany, the designer led the capture of insights from mul-
tiple customers, became a translator of information
from customer insights, and also contributed to organiz-
ational change. The designer as innovation catalyst
gathered and generated meaning from the customer in-
sights, developed employee capability with the custom-
er-facing employees (who were the main direct contact
with the customers on mine sites), and shaped new initi-
atives for the business and facilitated the translation of
customer insights into meaningful business opportunit-
ies. This study adds further support to the value of exper-
ienced designers acting as innovation catalysts to
facilitate organizational transformation through design-
led innovation.
Acknowledgements
An earlier version of this article was presented at the
2015 ISPIM Innovation Summit in Brisbane, Australia,
December 6–9, 2015. ISPIM (
ispim.org
) the International
Society for Professional Innovation Management – is a
network of researchers, industrialists, consultants, and
public bodies who share an interest in innovation man-
agement.
Judy Matthews is a Senior Lecturer at the Queens-
land University of Technology (QUT) Business
School in Brisbane, Australia, where she teaches
both MBAs and senior executives on the topics of in-
novation management, facilitates problem framing
and problem solving in complex environments, and
uses design thinking to develop and execute new
possibilities. Her enthusiasm for the importance of
innovation management can be traced to her re-
search into innovation systems in Australia, in public
sector research, and development and in the man-
agement of change. For the last six years, Judy has
been an active researcher and facilitator in the devel-
opment and application of design mindsets and
methods, recognizing that the frameworks, tools,
and mindsets of designers can be used to help man-
agers to problem solve and innovate in their busi-
nesses and develop new business models. Judy holds
a PhD from QUT and has published articles in a wide
range of international journals, including the Journal
of Business Research, the International Journal of
Technology Management, Innovation: Management,
Policy and Practice, and the Design Management
Journal.
Cara Wrigley is Head of Research in the Design & In-
novation Research Centre at the University of Tech-
nology Sydney (UTS), Australia. The Design &
Innovation Research Centre (DI:rc) is a transdiscip-
linary centre located at UTS, focusing on the devel-
opment of innovative, design-oriented research with
the potential to transform companies. Building on
her solid practical industry experience and com-
bined with her scholarly expertise in emotional
design, she is actively researching the value that
design holds in business – specifically through the
creation of strategies to design business models
which lead to emotive customer engagement. Cara
has presented and published widely in the field of
design-led innovation and currently leading several
initiatives to contribute to both industry and aca-
demia on the value of design to business. She holds a
PhD and a Bachelor of the Built Environment from
the Queensland University of Technology (QUT) in
Brisbane, Australia, in addition to a Bachelor of
Design Studies from Griffith University in South East
Queensland, Australia.
Technology Innovation Management Review June 2016 (Volume 6, Issue 6)
57
www.timreview.ca
Applying Design-Led Innovation in an Australian Manufacturing Firm
Peter Townson, Judy Matthews, and Cara Wrigley
References
Austmine. 2013. Australia’s New Driver For Growth: Mining
Equipment Technology and Services. Sydney: Austmine.
Beckman, S., & Barry, M., 2009. Design and Innovation through
Storytelling. International Journal of Innovation Science, 1(4):
155–160.
http://dx.doi.org/10.1260/1757-2223.1.4.151
Beckman, S., & Barry, M., 2007. Innovation as a Learning Process:
Embedding Design Thinking. California Management Review,
50(1): 25–56.
http://dx.doi.org/10.2307/41166415
Brown, T. 2008. Design Thinking. Harvard Business Review, 86(6):
85–92.
Brown, T., & Martin, R. 2015. Design for Action: How to Use Design
Thinking to Make Great Things Actually Happen. Harvard Business
Review, 93(9): 57–74.
Bucolo, S., Wrigley, C., & Matthews, J. 2012. Gaps in Organisational
Leadership: Linking Strategic and Operational Activities through
Design-Led Propositions. Design Management Journal, 7(1): 18–28.
http://dx.doi.org/10.1111/j.1948-7177.2012.00030.x
Bucolo, S., & Matthews, J. 2011a. A Conceptual Model to Link Deep
Customer Insights to Both Growth Opportunities and
Organisational Strategy in SME's as Part of a Design Led
Transformation Journey. Paper presented at Design Management:
Towards a New Era of Innovation, DMI International Design
Management Symposium, December 3–5, 2011, Hong Kong.
http://eprints.qut.edu.au/47895/
Bucolo, S., & Matthews, J. 2011b. Design Led Innovation – Exploring
the Synthesis of Needs, Technologies and Business Models. In
Proceedings of the Participatory Interaction Conference, January
13–15, 2011, Sønderborg, Denmark.
Burns, J., & Brown, N. 2002. Integrate: A Critical Look at the Interface
between Business and Design. Wellington, New Zealand: New
Zealand Trade and Enterprise Design Industry Taskforce.
Casadesus-Masanell, R., & Ricart, J. E. 2010. From Strategy to
Business Models and onto Tactics. Long Range Planning, 43(2-3):
195–215.
http://dx.doi.org/10.1016/j.lrp.2010.01.004
Chesbrough, H., & Schwartz, K. 2007. Innovating Business Models
with Co-Development Partnerships. Research-Technology
Management, 50(1): 55–59.
http://dx.doi.org/10.1080/08956308.2007.11657419
Chang, Y., Kim, J., & Joo, J. 2013. An Exploratory Study on the
Evolution of Design Thinking: Comparison of Apple and Samsung.
Design Management Journal, 8(1): 22–34.
http://dx.doi.org/10.1111/dmj.12001
Chhatpar, R. 2007. Innovate Faster by Melding Design and Strategy.
Harvard Business Review, 85(9): 2007–2009.
Cohen, E., & Tichy, N. 1997. How Leaders Develop Leaders. Training
and Development, 51(5): 58.
Cross, N. 1982. Designerly Ways of Knowing. Design Studies, 3(4):
221–227.
http://dx.doi.org/10.1162/074793601750357196
CSIRO. 2003. On The Front Line. Earthmatters: CSIRO Exploration
and Mining Quarterly Magazine, (2): 20.
Davis, J. 2004. Writing an Action Research Thesis: One Researcher’s
Resolution of the Problematic of Form and Process. In E.
McWilliam, S. Danby, & J. Knight (Eds.), Performing Educational
Research: Theories, Methods and Practices: 15–30. Eumundi,
Australia: Post Pressed.
Hall, A., Melin, L., & Nordqvist, M. 2001. Entrepreneurship as Radical
Change in the Family Business: Exploring the Role of Cultural
Patterns. Family Business Review, 14(3): 193–208.
http://dx.doi.org/10.1111/j.1741-6248.2001.00193.x
Hollinger, T.D. 2012. Better by Design: Using Organizational Design
for Competitive Advantage in the 21st Century. Regent Global
Business Review, 5(2): 16–22.
Kemmis, S. 2009. Action Research as a Practice-Based Practice.
Educational Action Research, 17(3): 463–474.
http://dx.doi.org/10.1080/09650790903093284
Kolko, J. 2015. Design Thinking Comes of Age. Harvard Business
Review, 93(9): 66–71.
Kolb, D. A. 1984. Experiential Learning: Experience as the Source of
Learning and Development. Englewood Cliffs, NJ: Prentice-Hall.
Kyffin, S., & Gardien, P. 2009. Navigating the Innovation Matrix: An
Approach to Design-led Innovation. International Journal of
Design, 3(1): 57–69.
Liedtka, J. 2015. Perspective: Linking Design Thinking with
Innovation Outcomes through Cognitive Bias Reduction. Journal
of Product Innovation Management, 32(6): 925–938.
http://dx.doi.org/10.1111/jpim.12163
Martin, R. L. 2011. The Innovation Catalysts, Harvard Business
Review, 89(6): 82–87.
Martin, R. 2007. Design and Business: Why Can’t We Be Friends?
Journal of Business Strategy, 28(4): 6–12.
http://dx.doi.org/10.1108/02756660710760890
Martin, R. 2004. The Design of Business. Rotman Management,
Winter 2004: 7–12.
Martin, R. 2009. The Design of Business: Why Design Thinking is the
Next Competitive Advantage. Boston, MA: Harvard Business
School Publishing.
Martinez-Fernandez, C. 2010. Knowledge-Intensive Service Activities
in the Success of the Australian Mining Industry. The Service
Industries Journal, 30(1): 55–70.
http://dx.doi.org//10.1080/02642060802317820
Matthews, J., & Bucolo, S. 2011. Continuous Innovation in SMEs: How
Design Innovation Shapes Business Performance through Doing
More with Less. In Proceedings of the 12th International CINet
Conference: Continuous Innovation: Doing More with Less:
696–708. Aarhus, Denmark: CINet.
Matthews, J., Bucolo, S., & Wrigley, C. 2012. Challanges and
Opportunities in the Journey of the Design-Led Innovation
Champions. In E. Bohemia, J. Liedtka, & A. Rieple (Eds.), Leading
Innovation Through Design: Proceedings of the DMI 2012
International Research Conference: 768–775. Boston, MA: DMI.
McGrath, R. G. 2010. Business Models: A Discovery Driven Approach.
Long Range Planning, 43(2-3): 247–261.
http://dx.doi.org/10.1016/j.lrp.2009.07.005
Miles, M. B., & Huberman, M. A. 1994. Qualitative Data Analysis: An
Expanded Sourcebook (2nd ed.). Thousand Oaks, CA: SAGE
Publications Inc.
Technology Innovation Management Review June 2016 (Volume 6, Issue 6)
58
www.timreview.ca
Citation: Townson, P., Matthews, J., & Wrigley, C. 2016. Outcomes from Applying Design-Led Innovation in an Australian Manufacturing Firm.
Technology Innovation Management Review, 6(6): 49–58. http://timreview.ca/article/997
Keywords: manufacturing, design-led innovation, innovation catalyst, manufacturing, customer insights
Applying Design-Led Innovation in an Australian Manufacturing Firm
Peter Townson, Judy Matthews, and Cara Wrigley
O’Regan, N., Ghobadian, A., & Sims, M. 2006. Fast Tracking
Innovation in Manufacturing SMEs. Technovation, 26(2): 251–261.
http://dx.doi.org/10.1016/j.technovation.2005.01.003
Pascale, T., & Sternin, J. 2005. Your Company’s Secret Change Agents.
Harvard Business Review, 83(5): 1–10.
Pozzey, E., Wrigley, C., & Bucolo, S. 2012. Unpacking the
Opportunities for Change within a Family Owned Manufacturing
SME: A Design Led Innovation Case Study. In E. Bohemia, J.
Liedtka, & A. Rieple (Eds.), Leading Innovation Through Design:
Proceedings of the DMI 2012 Internationa Research Conference:
841–855. Boston, MA: DMI.
Schein, E. H. 1996. Culture: The Missing Concept in Organization
Studies. Administrative Science Quarterly, 41(2): 229–240.
http://www.jstor.org/stable/2393715
Schön, D. A. 1983. The Reflective Practitioner: How Professionals
Think in Action. New York: Basic Books.
Smith, B. 2015. How I Did It: Intuit's CEO on Building a Design-
Driven Company. Harvard Business Review, 93(1-2): 35–38.
Swann, C. 2002. Action Research and the Practice of Design. Design
Issues, 18(1): 49–61.
http://dx.doi.org/10.1162/07479360252756287
Tedesco, L., & Curtotti, R. 2005. Mining Technology Services: A Review
of the Sector in Australia. Canberra: Australian Bureau of
Agriculture and Resource Economics.
Teece, D. J. 2010. Business Models, Business Strategy and Innovation.
Long Range Planning, 43(2-3): 172–194.
http://dx.doi.org/10.1016/j.lrp.2009.07.003
Verganti, R. 2009. Design Driven Innovation: Changing the Rules of
Competition by Radically Innovating What Things Mean. Boston,
MA: Harvard Business Press.
Ward, A., Runcie, E., & Morris, L. 2009. Embedding Innovation:
Design Thinking for Small Enterprises. Journal of Business
Strategy, 30 (2/3): 78–84.
http://dx.doi.org/10.1108/02756660910942490
Wrigley, C., & Bucolo, S. 2012. New Organisational Leadership
Capabilities: Transitional Engineer the New Designer? In Leading
Innovation Through Design: Proceedings of the DMI 2012
International Research Conference: 913–922. Boston, MA: DMI.
http://eprints.qut.edu.au/53947/
Yoo, Y., & Kim, K. 2015. How Samsung Became a Design Powerhouse.
Harvard Business Review, 93(9): 73–78.
Zott, C., & Amit, R. 2010. Business Model Design: An Activity System
Perspective. Long Range Planning, 43(2-3): 216–226.
http://dx.doi.org/10.1016/j.lrp.2009.07.004
... Price and Wrigley (2016) argued that the design-led approach leads to an integrated understanding of a problem and the consequent solution (Dorst & Cross, 2001;Dorst & Hendriks, 2001). Similarly, firms can overcome barriers and identify advantageous prospects through design-led innovation (Townson, Matthews, & Wrigley, 2016). Nevertheless, firms' cross-functional teams (e.g., NPD, SD and UX) have encountered a series of challenges to make rational design and innovation decisions and actions in their systems and service innovation process. ...
... In this manner, our study observes that existing design approaches, methodologies and methods often remain static, emphasizing grammatical methods rather than adaptable design actions (Boland & Collopy, 2004;Bucolo et al., 2012;Ellway & Dean, 2020;Townson et al., 2016). Consequently, we propose a hypothesis: ...
Article
Full-text available
This study explores the designer's attitude, illustrating the forms of the designer's interactions with customers in the design‐led innovation. While the innovator's dilemma has become a crucial factor within cross‐functional teams, a similarly challenging issue arises when attempting to integrate customers into design‐led innovation. A proposed model based on Bourdieu's theory of practice was developed to address this issue. This model was employed to conduct qualitative interviews with 35 designers, allowing for the collection of 59 narratives pertaining to systems and service innovation projects. By the analysis of the collected data, using a grounded theory approach, as a result, seven designer's attitudes are elucidated. Based on this, implications and conclusions are discussed.
... Design-Led Innovation (DLI) could provide a concrete answer to this need, offering itself as a wellestablished approach in the design field, clarifying the designer's role and guiding transitions from a higher to a more practical level. DLI is defined as a process during which a set of tools and methods allow design to penetrate within a company to provoke cultural transformation and drive innovation (Bucolo & Matthews, 2011a;Dong, 2015;Townson et al., 2016). DLI aims to establish a connection between different stakeholders throughout the process to transform corporate culture by founding a positive dialogue about future goals (Bucolo & Matthews, 2011b). ...
... The vision and future scenarios are thus a driving force for DLI, guiding design and becoming a driver of change (Bucolo & Matthews, 2011b;Bucolo & Wrigley, 2014;. Due to the need to integrate and transform the corporate culture, the DLI transformation projects are long-term ones, usually between 12-24 months, through which the Design Innovation Catalyst (from now on Catalyst) can experience the corporate context and propose collective design interventions (Price et al., 2014;Townson et al., 2016;Wrigley, 2017). These are defined and contextualised to allow the company integration and cultural change, representing a non-linear path which, as its creators point out, does not always have the desired results and could not be standardised ( Figure 3) (Bucolo & Wrigley, 2014;Price et al., 2014;. ...
... Design-Led Innovation (DLI) could provide a concrete answer to this need, offering itself as a wellestablished approach in the design field, clarifying the designer's role and guiding transitions from a higher to a more practical level. DLI is defined as a process during which a set of tools and methods allow design to penetrate within a company to provoke cultural transformation and drive innovation (Bucolo & Matthews, 2011a;Dong, 2015;Townson et al., 2016). DLI aims to establish a connection between different stakeholders throughout the process to transform corporate culture by founding a positive dialogue about future goals (Bucolo & Matthews, 2011b). ...
... The vision and future scenarios are thus a driving force for DLI, guiding design and becoming a driver of change (Bucolo & Matthews, 2011b;Bucolo & Wrigley, 2014;. Due to the need to integrate and transform the corporate culture, the DLI transformation projects are long-term ones, usually between 12-24 months, through which the Design Innovation Catalyst (from now on Catalyst) can experience the corporate context and propose collective design interventions (Price et al., 2014;Townson et al., 2016;Wrigley, 2017). These are defined and contextualised to allow the company integration and cultural change, representing a non-linear path which, as its creators point out, does not always have the desired results and could not be standardised ( Figure 3) (Bucolo & Wrigley, 2014;Price et al., 2014;. ...
... Nowadays there is an increasing body of literature on the conceptual development of design-intensive innovation streams [49], such as design innovation [50], design for innovation [51], innovation by design [2,52], design-led innovation [53,54], design-driven innovation [55,56], and design-enabled innovation [48], among others. These concepts can be largely categorised into three types according to the enabling role of design: ...
... Along with technology-driven innovation, design-driven innovation acts through radical changes in meaning in the business field, meaning that design should be integral to the business model, and even to organizational strategy, to sustain competitive advantage [53,59]. Verganti's design-driven innovation [56] and its derivative concept, design-led innovation, [53,54], are examples. ...
Article
Full-text available
Design policy for innovation and prosperity have been acknowledged and adopted globally. Existing literature on design policy usually adopts a top-down perspective to analyse the components of design innovation system and ignores the practical needs of practitioners. Our study aims to explore potential opportunities and challenges of design policies for design-enabled innovation from a bottom-up perspective. We firstly discussed the enabling role of design in the context of design as input, output and process of innovation with emphasis on design-enabled innovation conception; afterwards, European design policies are reviewed in terms of characteristics, priorities and strategies at EU, national and regional levels. Based on multiple case studies on the SWOT analysis of 50 European design innovation initiatives, we summarised eight dimensions of SWOT factors – organisation, production, performance, knowledge, environment, market, technology and institution – so as to identify main strengths, weaknesses, opportunities and threats that practitioners are facing and discussed common and specific factors that might influence the identification of SWOT forces by taking into account the country and sector factors. It’s concluded that European design policy is located as intergenerational transition from awareness raising to capacity building, which calls for more coordinated policies to tackle current opportunities and challenges.
... A knowledgeable framework implementer may pair this framework with any type of industrial design strategy. For example, a firm engaging in design-led innovation to improve a business model, repositioning the business and its offerings in the market to become more innovative (Townson, Matthews, & Wrigley, 2016) would require an implementer who is well versed with such a transformation. He/she would be tasked with determining the right set of measures for the process together with management and staff. ...
Preprint
Full-text available
Manufacturing small-to-medium enterprises (SME’s) in Hong Kong utilise the Hong Kong industrial design profession as a source of competitiveness. However, the contribution of industrial design to these objectives falls short due to mis-aligned priorities and unmet manufacturer needs. This paper and associated literature review discusses the background and context for the creation of a Balanced Scorecard for industrial design management framework. The framework’s intention is to provide a robust solution to Hong Kong manufacturing SME’s to deal with business volatility and increased competition globally. The context of Hong Kong manufacturing is explored while the foundations and potential benefits of this new and novel framework are discussed.
Conference Paper
Design studio (DS) as teaching approach finds its applications in curriculum design, and DS environments support students of different disciplines to follow sequential curriculums to develop their skills and learning patterns. Visualization of knowledge offers researchers a visual viewpoint and aids in comprehending the overall design structures of certain study topics more effectively. This study presents a systematic bibliometric analysis of the knowledge dynamics and structure, and micro- and macro-hotspots of DS research using VOSviewer. The study covers articles published in journal and conference indexed in the Scopus Database between 1974 and 2022 and implements visualization method to quantify the numbers of articles, referenced sources, cited documents, top-publishing organizations, and production houses in countries focused to outsource research on DS. The study findings would guide scholars and researcher, in particular instructional designers, interested in expanding and broadening the scope and horizon of research concerning DS.
Chapter
Many business leaders continue to prioritise, yet few are satisfied with their businesses’ innovation skills. Many businesses experiment with innovation approaches brought in from the outside in their desire to become more innovative. In recent years, one of these sought-after innovation methodologies has been design thinking which is a mindset and a set of tools for innovation and development. Design thinking has created spectacular achievements in creative organisations like design consultancies and service firms but it has shown to be significantly more difficult to execute in large, established firms, especially if the organisational culture opposes the ideals that underpin design thinking. We demonstrate how a large, manufacturer of farm equipment’s enterprises over a period of five years morphed the design thinking methodology to allow it to take root in many sectors of the organisation and become an intrinsic element of the firm’s innovation activities over time by including design thinking into their strategic plan, leadership programmes and into day-to-day activity. This paper also throws some light on other approaches which can be used for adopting design thinking in large organisations.
Article
Design Thinking has been gaining attention over the past decade with more and more companies seeking to use it as a human-centered problem-solving approach that can create novel solutions and foster (radical) innovation. Following several success stories from business, management or even civic service delivery environment, where Design Thinking has produced highly impactful and popularized innovation, technically oriented companies have increasingly shown interest in using it to nurture their innovation and creative capabilities. In this article, a qualitative analysis of semi-structured interviews with experts applying and researching Design Thinking are presented in the context of technology-focused organizations. Several concrete insights are derived to reveal specific success factors, central characteristics, tools and methods, but also limitations and prerequisites for its effective application in such contexts. Finally, the study highlights potential adaptations of the approach to support its integration with the processes similar organizations apply in their routine practices.
Article
Until its highly publicised downfall, Theranos was a so-called unicorn; with a compelling proposition to popularise routine blood testing by making it more convenient, using a smaller sample of blood, and testing at a lower cost than conventional, often fear-inducing needles. Holmes and Theranos were reliant on their development of new technology to bring their idea to life, however they instead became perhaps one of the most infamous recent example of failed product innovation. In this paper we contend that, although character failings and alleged criminal activity could not have been realistically mitigated, valuable strategic and operational lessons can be learned for future technology start-ups. By conducting a counterfactual thought experiment and examining Theranos through the lens of Design Innovation (DI) we provide evaluations and predictions across strategic and operational constructs from both an internal and external perspective. A DI approach also applies methods and tools used by designers across a company as a whole – this mirrors an inventor-founder’s path from narrow product influence to broader environmental influences. We show that criticisms through the DI lens have specific and insightful bearing on Theranos because of its markedly poor strategic planning; manifest as a reliance on ideas and spin in place of tangible products and services. We use Theranos to demonstrate the value of DI to future technology-driven entrepreneurs, proposing alternative approaches to medical device start-ups.
Article
Full-text available
In an era where companies can no longer rely on technological breakthroughs and incremental product development, innovation is high on management agendas. At the same time, the scope of innovation has increased in complexity, where products, services, user needs and technologies need to be integrated while bringing many different stakeholders together. Nevertheless, the process of innovation is often seen as being very linear, with research results, new technologies or user insights funneled via advanced development and new business processes into the market. The present case study, however, sets forth an alternative view that sees innovation as a network of options. We propose that there are different ways of capitalizing on imaginative ideas, and that it is necessary to explore the best way forward on a case-by-case basis rather than by trying to impose a business straitjacket too early. To illustrate the potential of this view, an Innovation Matrix has been developed. Finding the best way through the non-linear matrix of options is a key factor in moving imaginative ideas effectively to the market. There is more than one path one can follow to breathe life into delicate ideas, and the design discipline can play a central role in facilitating this.
Article
Full-text available
The term Design is used to describe a wide range of activities. Like the term innovation, it is often used to describe both an activity and an outcome. Many products and services are often described as being designed, as they describe a conscious process of linking form and function. Alternatively, the many and varied processes of design are often used to describe a cost centre of an organisation to demonstrate a particular competency of an organisation. However design is often not used to describe the ‘value’ it provides to an organisation and more importantly the ‘value’ it provides to both existing and future customers. Design Led Innovation bridges this gap. Design Led Innovation is a process of creating a sustainable competitive advantage, by radically changing existing customer value propositions, through an integrated series of steps which anticipates future user needs, builds future proposal and encourages feedback which is embedded in a company’s strategy, vision, culture and leadership.
Article
Full-text available
Firms face the challenge to survive and thrive in an increasingly competitive global market, developing strategies to continuously innovate, often having to do more with less. Increasing awareness of the benefits of stimulating continuous innovation in small and medium enterprises has led to the development and implementation of design innovation programs, with many western countries investing in design innovation programs for better firm performance. This paper investigates how firms respond to a design innovation program and engage in continuous innovation, doing more business with a focused less diverse strategy. Early findings from a study of companies engaged in a design innovation program indicate that applying design principles to all aspects of their business has delivered better business performance and better positioning in global markets.
Article
Article
If designers are brought into the innovation process at the very beginning, they can test prototypes and share users' responses even as the business case is being developed, enabling companies to nimbly adjust to changes in market opportunities.
Article
“Design thinking” has generated significant attention in the business press and has been heralded as a novel problem-solving methodology well suited to the often-cited challenges business organizations face in encouraging innovation and growth. Yet the specific mechanisms through which the use of design, approached as a thought process, might improve innovation outcomes have not received significant attention from business scholars. In particular, its utility has only rarely been linked to the academic literature on individual cognition and decision-making. This perspective piece advocates addressing this omission by examining “design thinking” as a practice potentially valuable for improving innovation outcomes by helping decision-makers reduce their individual level cognitive biases. In this essay, I first review the assumptions, principles, and key process tools associated with design thinking. I then establish its foundation in the decision-making literature, drawing on an extensive body of research on cognitive biases and their impact. The essay concludes by advancing a set of propositions and research implications, aiming to demonstrate one particular path that future research might take in assessing the utility of design thinking as a method for improving organizational outcomes related to innovation. In doing so, it seeks to address the challenge of conducting academic research on a practice that is obviously popular in management circles but appears resistant to rigorous empirical inquiry because of the multifaceted nature of its “basket” of tools and processes and the complexity of measuring the outcomes it produces.