Design-oriented strategy typology and innovation framework

Abstract

Purpose Using Taiwanese enterprises that produce computer and consumer electronics products as case subjects, this study aims to explore the effective product innovation strategies applied to cope with competition in the global market and develop a competitive advantage. The product design strategies and methods of companies that used different types of innovation strategies were then analyzed. Finally, a mapping framework for product innovation and design strategies was proposed for enterprises in the computer and consumer electronics industry in Taiwan. Design/methodology/approach The two stages of this study were a questionnaire survey and case studies. Stage 1: A questionnaire survey and literature review were performed to explore the innovation strategies used by companies in the Taiwanese computer and consumer electronics industry. The purpose of the literature review was to determine the definitions and content of innovation strategies. Stage 2: Design and R&D managers were interviewed to explore the practical design strategies and approaches to product design in the industry. Findings These four innovation strategies and ways of product design are closely related to the scale, business type and product development conditions in enterprises. Notably, different innovation strategies have different approaches to product design. Generally, product design emphasizes “new experience” in aggressive innovation enterprises, “new value” in market innovation enterprises, “new service” in technical innovation enterprises and “new positioning” in opportunity innovation enterprises. The findings of this study provide a reference for product R&D and design in enterprises. Originality/value In recent years, the global market of computer and consumer electronic products has been fiercely competitive. Therefore, only enterprises that can innovate, respond rapidly and maintain advantages in product design can survive in the market. Hopefully, this case study of companies in the Taiwan computer and consumer electronic industry can provide a reference for product R&D and design. The findings of this study provide a reference for product R&D and design in enterprises, especially the Chinese market.

Product Innovation and Design Strategies for 5G Technology in China’s Home Appliance Companies

“…By integrating Kelley's design strategy factors, Teng identified 10 strategic attributes and defined design strategy as a series of product design strategy attributes related to decision making to achieve product design innovation goals and provide a firm with the unique design competitive advantage it needs. Therefore, design strategy is a way to achieve product innovation goals, analyze customer needs and competitor influence, match the core competencies of the company's research and development, and execute tasks through a design team to achieve the company's performance goals [46].…”

“…Borowski [55] suggests that innovation strategies can help to encourage, motivate, stimulate, and achieve technological or service progress. Many studies have also shown that innovation strategies help firms to differentiate themselves from their competitors by offering unique products or services to their customers [46,56]. Therefore, scholars generally believe that innovation strategies help firms to pursue superior performance with higher brand equity, gain better partners, and attract highly skilled personnel by setting more ambitious goals [57,58].…”

“…According to Hsu [46], this study classifies innovation strategies into three categories: (1) technological innovation strategies, including the ratio of R&D expenses to total revenue, which is higher than that of other industries [66]; active investment in the application of trademarks, publications, and patents [67]; frequent introduction of new technologies to improve products or processes; and continuous improvement of production process efficiency to achieve corporate goals. (2) Business model innovation strategy, which is characterized by: enterprises proposing new products or services; improving or updating existing products, extending existing products or new product lines; and changing the sales targets and re-segregating the target customer groups.…”

Driving innovation through design-oriented strategies

“…Of the 18 product design strategies revealed by Hsu's (2017) study, the consistent keys to success can be crystallized down to the following six design strategies most commonly applied to build innovation into products:…”

“…The review is based on "Design-oriented strategy typology and innovation framework" by Hsu (2017). This case study of Taiwanese consumer electronics and computer companies demonstrates how product innovation strategies are being used to develop a competitive advantage that survives in the global market.…”