Perceived Value Is No Longer Just Perceived - The Case Of The Beautiful Toaster

With the ever expanding capability to inject an aesthetic vocabulary into designed products, it is no longer a confusion that consumer's level of "quality" can be a function of beauty for one simple reason. Language takes time to perfect and the flourishes of any language take time and effort - the mark of quality.

Interestingly, this all translates to a function of time and more specifically as detailed in "Consumer-Perceived Creativity and Beauty to Willingness-To-Pay For Design Products" we see the exact quotation of a rather large sample size statistical effort where the exact realization is that "consumers revealed that they were willing to pay about 55% more for a beautiful toaster with Similar results have been obtained with mobile phones" which intuitively we all know. However to see the exact details of how this can be created in exacting details we only need to look towards how "Logitech Quadrupled Its Profits With One Big Design Idea"  went from a company at the edge of a cliff to $2 billion a year firm when design became the key aspect of the firms capabilities when the CEO focused on making Logitech's R&D budget  more than $100M or almost 20% of the firm's total revenue: 7-9% more than the standard 11-13% of firm revenue normally used in very intensive R&D based firms such as Pfizer, Microsoft, Apple etc. and beautifully it paid off exactly as predicted.

                    

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You want real innovation ? R&D is where it starts. Mindset is how. When means if the ROI can follow.

Over and over in the "innovation" game the same issue arises - what is innovation? A Schumpeter definition of innovation from 1934 states innovation or development is/are new combinations of new or existing knowledge, resources, equipment, and other factors yet distinguished from invention. Invention is not for commercialization rather a "unique" success after many attempts where efforts succeed functionally or scientifically to solve X or create Y. Is "innovation" then just another pseudo-definition for new product development? Often yes when used incorrectly. That is because Schumpeter was expressing a socially accepted way of "innovation" in the 1920's and 1930's rather than later where he was more "direct" in 1942. 

Why does all of this matter? Because when Schumpeter stated in 1942 or shortly there before, that "creative destruction" is the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one" or as Wikipedia put it, "the linked processes of the accumulation and annihilation of wealth under capitalism" the translation gets lost. The reality is that in the 'innovation" game, simply, anything goes when you set out to destroy / design / innovate / create in relation to others in your market as when the dust settles, "innovating" occurs, eg. DRM ( digital rights management ) put a lot of record stores 100% right out of business. whoever created the math did not win, whoever licensed it, organized it, launched and enforced contracts for it won. They were the "innovators"

In today's world it is Clay Christensen at Harvard Business School's "disruptive innovation" being labeled "the most influential business idea of the early 21st century in The Economist in 2017 equating quite closely to Schumpeter's "creative destruction" where, when "In order to introduce innovation activity in the company, the first operation was to change the mindsets [of employees]. Product innovation was not the priority [ rather ] a lack of skills and knowledge of innovation design [was]. As a consequence, a very progressive learning approach [must be ] been set up" as stated in "Encouraging innovation activity in the specific context of small and medium sized retailers" where large sample size research with multiple retailers in the 50-100 retail store size range shows how design innovation and disruptive design leadership actually produces ROI. But did these firms need to "disrupt" or creatively "destroy" ? In fact yes, and it all started with a change in mindset where design was the mechanism that made it possible.

  

                    

   

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A Historical Design Point - Off The Shelf Quantum Computers & Full Brain Access & Just Like Netscape in 1994

Mark these words, today marks a historical turning point. You can now buy The IBM-Q an off the shelf quantum computer while The Brains of 3 People Have Been Successfully Connected, Enabling Them to Share Thoughts over the internet. With a Radical New Neural Network Design That Overcomes AI Brain Interfaces and an operating system like Solid, made by Interupt at MIT by Sir Tim Berners Lee @ MIT & Interupt who is going to up-end the internet as we know it and who created most of the internet & the web browser we know today, a fully connected, brain interface for designers, engineers and finance innovators is just about is real. The World will never be the same again.

With similar 20 & 30 year timing windows the next leap in design, engineering and finance innovation cannot not be ignored:

     a) ARPANet from the US Military was created Feb 1966, demoed publicly Oct 1967, formally launched April 1969, & decommissioned 1990 with Telenet going live Nov 22, 1987: about 20yrs after ARPANET was 1st shown openly - US Gov patents put into public domain. Taking roughly 2yrs to create the first web browser & launched in 1990 by Tim Berners-Lee, CERN then in May 1991 took HTTP and Web interfaces into the public later with Netscape ( founded April 1994 ) launching a public web browser Oct 13th 1994. 20 years from ARPANET R&D to real world use and then 10 years for public consumption.

     b) Neural Signals founded in 1987 built the first intracortical brain–computer interface and by 1999 full images seen by cats were decoded in real time with full brain to brain interfaced communication between 3 separate people over the internet was perfected and usable in Oct 2018.

     c) With AI enabled Quantum computers being sold on the open market by IBM in Jan 2019 and AI enabled brain to brain interfaces being a reality we now have the viability for a fully integrated distributed processing system such as Interrupt and Solid at MIT plus a fully immersive, interactive and internet enabled visual interfaces such as Magic Leap ( funded with Google for more than $2.3 billion in total so far ) and Nreal to produce the next level of human & computer evolution including that off the third self.

Our design, engineering, and innovation world is about to, once again. RADICALLY change and the next 20 years will look nothing like what ours did before the time we all had computers in our homes. Now our homes and entire designed experience will be, literally, all in our heads.

  

                    

   

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When Case Studies Claim "Innovation", Design Pattern via Naval Gazing Can Take Place

Often the reality is what comes after design is not innovation because a beautiful case study has been created. Previous details about how evidence based principals of engineering and finance will not trump the specific capabilities of cohesive storytelling to increase collective acceptance and use of new products. Situations such as The Apple Lisa, which was intended to “change the nature of human interaction with computers” suggest that evidence that design-driven innovation failures can also exist. Why?

Design Innovation Perspective Or Evidence Based Practices shows how when design-driven companies capitalized on their network through knowledge sharing and collaboration ( thus the sharing of the wealth from production and not controlling all aspects of production and sales ) these firms and products outperformed design-driven companies in similar regions who competed against rather than cooperated with companies in their network.

Breakthroughs, innovation and adoption is not the only aspect to success rather creation and belief in X, Y, or Z is what seems to make the strongest difference for "success" in acceptance, but not in science and/or engineering. However even there the same case can be made by utilizing others "math" to prove your own, thus group belief is what seens to matter.

                                

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Design, Novelty and Innovation Come Together when Design Confidence Exists

The Botticelli Beauty Paradox is a reality of emerging utilization for one simple reason: usability, investments necessary for real engineering dominance and desire occupy a single space in the future. In the present, they morph and sway for the dance of acceptance but it does not have to be this way.

In Data Intensive Evaluation Of Design Creativity Using Novelty Value And Surprise we see the clear indications of the occupied regions of the model for beautiful new product design and engineering to exist in the world when no expectations had been been previously constructed. When these manifestations are so unexpected as to be undetectable, dissonance occurs. In the example of the Apple Newton, more than 10yrs ahead of it's time, these devices and capabilities all within the top 1% of the novelty also received such high “raw” surprise values that because they were not adjusted for confidence, the ensuing influence on usability severely limited their adoption. Why? Usage patterns that approach the basis for continued market dominance ( and often based on Geoffrey Moore's, Crossing The Chasm timing models ) mean extended acceptance curves. Beautiful future design it can be said, is often a timing manifestation more than anything else. 

  

                    

   

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