20th DMI: Academic Design Management Conference

Citation: Lievesley, Matthew, Oleary, David, Hewitt, Ian, Whitehead, Callum, McPherson, Neil and Annal, Craig (2016) How Industrial Design supports a Customer-Centric Innovation approach in a Technology-Centric business environment. In: ADMC16 - 20th Academic Design Management Conference, 28th - 29th July 2016, Boston, USA.

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20thDMI:AcademicDesignManagementConferenceInflectionPoint:DesignResearchMeetsDesignPractice

Boston,USA,22-29July2016

Copyright©2016.Copyrightineachpaperonthisconferenceproceedingsisthepropertyoftheauthor(s).Permissionisgrantedtoreproducecopiesoftheseworksforpurposesrelevanttotheaboveconference,providedthattheauthor(s),sourceandcopyrightnoticeareincludedoneachcopy.Forotheruses,includingextendedquotation,pleasecontacttheauthor(s).

HowIndustrialDesignsupportsaCustomer-CentricInnovationapproachinaTechnology-Centricbusinessenvironment.MatthewLIEVESLEY*a,DavidO’LEARYb,CallumWHITEHEADc,IanHEWITTd,NeilMCPHERSONe,CraigANNALfa,b,c,dNorthumbriaUniversitye,fParkerHannifinCorporation

Thispaperprovidesacase-studywherebyaUKUniversityhasbeenworkinginclosepartnershipwithParkerHannifinCorporation,aFortune500USmanufacturingcompany,todevelopnewinnovationpractices.ItdiscusseshowIndustrialDesignhasbeenintroducedasanin-housefunctiontooneofthecompany’sdivisionalheadquarters,inGateshead,UK,throughacollaborativeresearchpartnershipoverthreeyears.Casematerialfromfourprojectsispresented,whichillustratesaprogressive,negotiatedadoptionbythecompanyofthecapabilitiesofIndustrialDesignasanessentialcomponentofaCustomer-CentricInnovationapproach.Ithasinvolveddevelopingtheorganisation’sownconfidenceaboutthevalueandfitofIndustrialDesignthroughaseriesofprojectsandregularreflectiononwhatisworkingwell,not-so-wellandwhatisraisingconcerns.Theapproachdescribedprovidesanalternativetoattemptingtodevelopandimplementapre-formulated‘grand-plan’forDesign.

Keywords:customer-centricinnovation;industrialdesign;largeorganisations;design-ledinnovation;manufacturing

* Correspondingauthor:MatthewLievesley|e-mail:matthew.lievesley@northumbria.ac.uk

MatthewLIEVESLEY,DavidO’LEARY,CallumWHITEHEAD,IanHEWITT,NeilMCPHERSON,CraigANNAL

IntroductionOverthelastdecade,therehasbeensteadygrowthinorganisations

establishingin-housedesigncapacityinsteadofrelyingonout-sourcingthroughagencies.ManymaturebusinesseshavefoundtheircapacitytoinnovatehasbeenstifledbyanoverrelianceontechnicalinnovationandarelookingtoDesigntoreshapetheirapproach.ThisfollowsthecelebratedsuccessesofcompaniessuchasAppleandtheargumentsforDesignarticulatedbyIDEO’sTimBrown(Brown,2009),RogerMartin(TheDesignofBusiness,2009)andothers.ThisnewexpectationpresentsachallengeforDesign,particularlyinlargeorganisations:Howcaninnovationprocessesberecast,todefineandsituatein-houseDesigncapabilitysuchthatitwon’tbetooconstrainedtobeeffective?Howshouldthedesignfunctionrelatetoexistingdisciplines,directorates,departmentsandalreadyestablishedbusinessprocesses?

Thispaperprovidesacase-studywherebyaUKUniversityhasbeen

workinginclosepartnershipwithParkerHannifinCorporation,aFortune500USmanufacturingcompany,todevelopnewinnovationpractices.ItdiscusseshowIndustrialDesignhasbecomeanessentialdriveroftheorganisation’sCustomer-CentricInnovationapproachandillustratesitsgrowinginfluencewithintheCorporation.

FormingthepartnershipfortheresearchThecollaborationbetweenNorthumbriaUniversity,UK.andParker

Hannifin(PH)developedoutofadialoguebetweenoneofPH’sDivisionalMarketingManagersbasedintheUKandtheUniversity’sDesignSchool.HehadobservedthatwhilstPHGatesheadsawitselfasinnovative,itwasn’tmeetingallofthecorporation’stargetsaroundtheproportionof‘new-to-the-world’productsinitsportfolio.Althoughtherewereasubstantialnumberofprojectsindevelopment(50+),almostallwereimprovements,modificationsandextensionstoexistingproductfamilies.ThroughtheDivisionalMarketingManager,PHhadbeguntoexplorehowtobuildateamtoincorporatestrategicmarket-developmentandproductmanagementandperhapsdesigntoaddressthis.TheDesignSchoolteamfeltthatIndustrialDesigncouldbeakeyactorinthatprocessandasaresult,thepartnershipwasformedtoexplorethevalueoftakingacustomer-centricviewofinnovationinthistechnology-centricbusiness.

HowIndustrialDesignsupportsaCustomer-CentricInnovationapproachinaTechnology-Centricbusinessenvironment.

TheCompanyitselfrecognizedthattheimpetusformanyoftheoriginal

productlineshadbeenprovidedbyemergingtechnologiesofthetime.Now,however,itwasincreasinglydifficulttocommandapremiummarginwhencompetitor-productperformancewasbecoming,ifnotcomparable,then‘goodenough’inseveralsectionsofthemarket.Iftherewaslessopportunitytoinnovatethroughatechnologypushapproach,Parkerwouldneedtodeveloptheircapacitytobetterunderstandandinterprettheircustomer’sneedsasasourceofinnovation.TodothisacollaborativeresearchplanwasformedbetweenthebusinessandNorthumbriaUniversity,topromoteknowledgeexchangeinbothstrategicmarketingandindustrialdesign.AcombinedacademicteamfromtheDesignSchoolandtheBusinessSchoolwouldinvestigatewaystoshapeinnovationpracticesatPHbyimprovingthequalityofengagementthecompanyhadwithitscustomersduringtheearlyphaseofproductdevelopment.Thecollaborativeresearchplananticipatedaseriesofpilotprojectsthatcouldbeusedtodefineandtestthenewapproaches,leadingtoanunderstandingoftheirefficacyandvalueinthiscontext.Theapproachwastitledcustomer-centricinnovation,asitwouldfocusondevelopinganunderstandingofcustomerneedsasasourceofinsightforinnovation.

Customer-centricinnovationThepurposeofthecollaborationwastodevelopcapacityforthesortof

innovationthatgoesbeyondincrementaldevelopmentandiscapableofexploringanddefiningwhatcustomerswouldreallyvalue–thesortofinnovationthatisstrategicnottactical.Thetermcustomer-centricinnovationwasusedintheplanningdocumentstosummarisetheprojectgoal,becauseitservedasauseful,descriptiveterm–notbecausewewerefollowinganyoneacademicdefinitionofthisstrategictypeofinnovation.Therearemanydifferenttermsinthedesignliteraturethatcapturetheapproachwewereadvocating,Verganti’sdesign-driveninnovationbeingoneofthebestknown,andwhichisvariouslydescribedintheacademicBusinessliteratureas‘discontinuous’(Veryzer2005),‘bold’(Cooper2011)orValueinnovation(Kim&Mauborgne,2008).Here,weareusingthetermcustomer-centricinnovationbecauseitbuildsfromanunderstandingofcustomersneeds,andusesthatunderstandingtodriveinnovation.Asanimportantdistinction,itshouldbenotedthatitisnotaprocessofsimplyprovidingwhatcustomersrequest(corroboratedbySelden&MacMillanin

theirHarvardBusinessReviewarticlein2006,andbyTheUKDesignCouncilintheirqualitativestudyLeadingBusinessbyDesign).

....thisapproachmakesdesignstronglycustomer-centred,butnotnecessarilycustomer-driven.Thedifferenceisthattheformerisaboutunderstandingcustomerneedsandwantstheymaynotevenrealisethey have themselves, while the latter is simply a matter ofresponding to existing demand. Being customer-centred allowscompaniesto leadandinnovate,not justbebuffetedbythemarket.(fromLeadingBusinessbyDesign,2012)

Inpractice,weviewcustomer-centricinnovationasamodeofpractice

thatapproachesVerganti’sdesign-driveninnovation(Verganti2009)butavoidsthesemanticriskofsuggestingthatDesignersareincharge.Theauthorsappreciatedthatatheoreticalorovertdesign-ledapproachmightcreateresistance.Onthatbasis,thecustomer-centricinnovationtermwaspreferredforthismultidisciplinary(Marketing,Design,Engineering)setting.

ResearchapproachThepaperconsidersthedegreeofacceptanceandadoptionofIndustrial

Designacrossfourcase-studyprojects,identifyingactivitythateffectedacustomer-centricapproachandhasthereforecontributedtothecompany’scapacityforbreakthrough(iebeyondincremental)innovation.

Inthecasedescribed,theworkoftheacademicteamhasbeensituated

inalive,commercialcontext,throughoutthestudy.Thecase-studyapproach(Yin,2013)wasadoptedtoexaminecontemporaryphenomenainareal-lifesetting.Theacademicteamfollowedaninductive,action-basedresearchapproachtounderstandingtheorganizationalculture(Hatchetal,2008)andthekeyresponsibilitiesaroundInnovationandNewProductDevelopment.ItinvolvedsituatinganIndustrialDesigneremployedbytheUniversityinthebusiness,full-time.Thisarrangementenabledtheauthorstoreportoutcomesinrelationtowhatprovedtobepossible/negotiableinthecontextofrealbusinessdemandsduringathree-yearcollaboration.Findingsarediscussedinthecontextofthecompromiseandpragmatismnecessarytoeffectorganizationalchange.

Theauthorsofthispaperincludemembersoftheacademicteam,theIndustrialDesignerwhowasthefocusofthecollaborativeknowledgeexchangeandkeystaffinthecompanyfromtheMarketingandEngineeringdepartments.Theauthorsthereforeusetheirownfirst-handexperiencesaspartofthestudy.Theauthoringteammetthreetimesayearspecificallytodiscussandreflectonprogresstowardsembeddingthecustomer-centricinnovationapproach,andtoreachagreementonthenextnecessaryphaseofactivity.Thishasenabledthecasematerialpresentedtobecross-referencedtotherecordsofthosemeetings.Furtherprojectevidenceisdrawnfromthepersonalreflective-practiceaccountsmaintainedbytheIndustrialDesignerthroughtheperiodofthestudyaspartofhisownpost-graduateresearch.

BusinessContext:productandtechnology-centricmanufacturingWhenthepartnershipbetweentheUniversityandParkerHannifin

(Gateshead,UK)wasformed,PHpresentedasatechnology-centricbusinessenvironment.Ithasalonghistoryoftechnologicalinnovation,hasdevelopedsomeofthekeypatentedtechnologiesinitssectorandhaspromotedtechnicallyorientedstaffintoseveralkeySeniorManagementroles.Thebusiness’smainproductlines:industrialfilters,areconsideredbest-in-classintermsofperformance,needingsignificantlylessenergythancompetitor-productstopushgasesthroughthefilterelements,whilststilleffectivelyremovingthetargetedimpurities.IthasexcellentanalyticalknowledgeinitsR&DandEngineeringteamstobothcontinuouslyimproveperformancecharacteristicsandmapandevaluateemergingtechnologies.Onthisbasiswecharacterizethecompanyaspredominantlytechnology-centricandalreadyhighly-capableintechnology-driveninnovation.

Marketing:PHalreadyhadsomemarketingprovisionintheformof

BusinessDevelopmentManagers(BDMs)andaDivisionalMarketingManager(DMM),butonlytheDMMwasactivelyengagedinstrategicmarketresearchanddevelopmentatthebeginningofthepartnership.TheBDMroleswerefocusedprincipallyonsales-management.

IndustrialDesign:PHalreadyuseddesignbutonaperipateticbasis

whereprojectswerejudgedtoneedsomedesigninput.Thistendedtobe

triggeredbyconcernsaboutuser-interfaceelementsemergingattheprototypingstage,ratherthanbeingdrivenbytheopportunitytounderstandcustomers.SincetheacquisitionbyParkerin2006,thishadtypicallybeencommissionedasproductdesignconsultancy,oncetheproduct’soverallform,functionandconfigurationhadbeendetermined.Thedesigninputto-datehadthereforebeenlimitedtoproductaesthetics.

WhenParkertookcontrolin2006,corporatebrandguidelineswereintroduced,whichincludedaguidelineproductlanguagefortheParkerGroup,withillustratedexamplesandkeycorporatecoloursdefined.However,in2013atthestartofthecurrentcollaboration,thishadnotyetbeenimplementedonanyproductsatPHGateshead.

PH’sexistingproductrangeandinnovationdriversThemajorityofthecompany’sproductportfoliowasconceivedfroma

technology-drivenperspectivewhereopportunitiesforinnovationemergedprincipallythroughexcellenceintechnologydevelopmentandR&D.Thisapproachhadbeenhighlysuccessful,positioningtheorganization(thentradingas‘domnickhunter’(dh))asamarket-leading,premiumbrandinFiltration.Byintroducingoriginalequipmentfromthismarket-leadingposition,PHhadestablishedahigh-volumeafter-marketbusiness,sellingreplacementfilterelementstoitsinstalledbase.However,overthelastfewyears,someofthekeyPatentshadreachedtheendoftheirtermandtheindustrialfiltrationsectorhadbecomecommoditizedascompetitorslaunchedgenericrefill-elements.

Lookingatthepatternofinnovationthroughthisperiodofrelative

strengthinthemarket,theemphasisontailoredproductversionstosuitparticularcustomerrequestshadgrown,butthefocusonstrategic(orbold)innovationhadwaned.Thisfollowsthegeneraltrendacrossthesectorofmaturemanufacturinginbetween2000and2010,whichsawincrementaldevelopmentworkalmostdoubleandnew-to-the-worldproductinnovationalmosthalvecomparedtothepreviousdecade(Cooper,2011).SomeenquiriesthroughthePHsalesteamimpliednewmarketareas,soweremanagedwithinthefirmfromamoremultifunctionalperspective.TheyweretypicallyledbytheBDMs,usingforexamplesomecompetitoranalysisandvoice-of-the-customer(Griffin&Hauser,1993)beforebriefingthetechnicalteamonthosefindings.Thisproduct-developmentmixillustratesthatthecompanywasalreadyabletobringnewtechnology-elementsto

markettoimproveperformance;technology-driven,andwasalsoabletorespondtoopportunitiesidentifiedbycustomers;customer-driven.Whatwasnotinplace,wasacustomer-centricapproachforproactiveexplorationofcustomers’needs,i.e.notsimplylisteningtothecustomer,butworkingcloselywiththemthroughaproactiveapproachtoproblemdefinition,andunderstandingboththeirexplicitandtheiras-yet-unexpressedneeds.Thislackofproactivemarket-developmentandinnovationstrategyhadlefttheorganizationpoorlypreparedfornewcompetitionandmarketcommoditization.

AtthebeginningofthecollaborativeprojectwiththeUniversity,whentheGatesheadsiteassesseditsdevelopmentportfolio,itfoundthatalthoughtheoverallvolumeofproductdevelopmentwashigh,itwasn’tmeetingPHGroup’smetricsfortheproportionof‘new-to-the-world’productsin-progress.

KeyprojectsdeliveredthroughthecollaborativepartnershipThroughalmostthreeyearsofcollaboration,thepartnershipbetween

PH(Gateshead)andNorthumbriaUniversitysharedresearch,guidance,expertiseandstaffresourcestoestablishandembedacustomer-centricinnovationapproachinthecompanythroughbothStrategic-MarketingandIndustrialDesign.Inthispartofthecase-studywedescribefourprojectsthatweresignificantfromtheIndustrialDesignperspective.Togethertheyillustrateaprogressive,negotiatedadoptionbythecompanyofthecapabilitiesofIndustrialDesignasanessentialcomponentofaCustomer-CentricInnovationapproach.

Project1In2013,justpriortorecruitingthein-houseIndustrialDesignertothe

maincollaboration,PHworkedwithNorthumbriaUniversityDesignSchooltoaddressastrategicproduct-brandingquestion.Adetailed,EuropeanstudyofbrandequitysurveyintheGasTreatmentcategoryfoundthatawarenessofthe“ParkerHannifin”(PH)brandwasstrongerthanthe“Parker-domnickhunter”(Pdh)sub-brand(79%ofcustomerswereawareofthePHbrand,ascomparedto56%forPdh).Akeyproductinthisrange;‘NitroSource’wasscheduledforrelaunchwithsignificantlyimproved

technicalperformance.ItwasdecidedthatitshouldbethefirstproductfromtheGatesheadsitetoadoptthePHglobalproductlanguageandcolourpaletteoutlinedinPHbrandguidelines.ThedesignacademicsatNorthumbriaUniversityworkedcloselywiththecompanytorealisethisproject.IndustrialDesignfocusedoninterpretingthebrandguidelinesandredefiningtheuser-facingcomponents–ieprotectivecovers,enclosures,doors,connectionpointgraphicsetc–toembodythem.Thecorepressurevessels,valvesandmanifolds(internalfunctionalperformancecomponents)retainedthesizeandgeneralarrangementofthepreviousmodelssoldasPdh,although,performancetesting,demonstratedthatastep-changehadbeenachievedinthegas-treatmentperformance.

Figure1.Nitrosource-MaxigasdisplayedinthecompanyfoyerinitsfullParkerHannifinproductlanguageandlivery–thefirstproductproducedattheGatesheadsitetoadopttheGroup’sbrandguidelines.

Therevisedproducthada‘soft-launch’tointernalteamswithinthePH

groupandquicklybecameinfluential.Supportingproductlaunchmaterialswereproducedthroughanexternalcommunicationagency,usingdigitalanimation,givingtheproducthighvisibilityonlinewithinthePHgroup.Thefirst-offprototypeunitanditssupportingvideomaterialattractedpositivefeedbackinmeetingsoftheGeneralManagersrepresentingmanufacturingsitesaroundtheworld.Theproductwasrelaunchedin2014,andthecombinationofimprovedperformancespecificationwiththefullParkerlook-and-feelhasgenerateda27%increaseinsalesoverthepreviousyear.

Theeffectofthisproductprototypebuildandthenitslaunchhas

triggeredsystematicadoptionofthePHbrandlanguage.Internally,therehadbeenresistancetomovingawayfromtheoriginalPdhcolourpaletteofredorpurple,basedonthebeliefthattheywerebrandelementsthatsignifiedPdh’sprovenanceandthereforecarriedcachéwithcustomers.Hencethatpalettestilldominated,eightyearsafteracquisitionbyParker.TheNitrosourceproductbuiltfamiliaritywiththePHgoldandgreycolourpaletteamongsttheinternalteamsandattractedpositivefeedbackfromthefirstcustomers,breakingdownresistancetochangethroughitsshearpresence.WithinafewmonthsoftheNitrosourceprototypebuild,thedesignteamwereaskedtolookatawiderbrandimplementationproject.ItwastoconsiderthepossibilityofswitchingtothePHcolourpaletteacrossthefullsuiteoffiltrationandgasgenerationproductsfromthreeEuropeandivisionsofPH,eachwiththeirownpre-aquisitioncolourspalettes.Severalalternativeswereconsidered,somewithretainedelementsofthepre-acquisitioncolours,andotherswithout.Thebeforeandaftervisualsproducedtoillustratethisprocessprovedsopersuasivetothecaseforreconcilingtoasinglepalettethatjustoneyearlater,thethreedivisionsshowedthewholerangeatHannoverMesse(Europe’sbiggestindustrialtradeshow)intheadoptedPHcolours.

Figure2.ImagesoftherangeshownatHannover,includingtheNitrosource,displayingthefullParkerHannifincolourpalette-April2015

Project1,reflectiononoutcomes:AlthoughtheNitrosourceprojectwasnotundertakenthroughafully

customer-centricapproach,itintroducedIDtothecompanyasacomplementaryactivitytocurrentMarketingandEngineeringfunctions.The

projecthadastrategicroleasthefirstpieceofIndustrialDesignworktoimplementthenewPHlook-and-feelinaccordancewiththeGroup’sbrandguidelines.Thisleddirectlytothefollow-onworktodefineaconsolidatedlook-and-feelforthefamilyoffiltrationproductsacrossthreeEUsites.IndoingsoitbegantheprocessofinterpretingthoseguidelinestosuitthePHGatesheadproductranges,forexampleitestablishedageneraldesignprincipletoconsistentlyuseblackforleg,footorfloor-fixingelementsoftheproduct.Parkerstaffsawtheproductrealisedasaprototypeandheardthepositivecustomerfeedback,pavingthewayfortheintroductionofthein-houseIndustrialDesignersomemonthslater.Thiswasreinforcedlaterbythesubsequentproductsalesincreases.TheprojectalsoprovidedtheevidenceneededfortheteaminGatesheadtoseekendorsementfromtheUS-basedVPInnovationforthecollaborativeresearchplanthatwouldintroduceIndustrialDesignin-house.

Project2InpreparationfortheintroductionoftheIndustrialDesignfunctionto

thebusiness,thecollaborativeprojectteamidentifiedapotentialprojectareatoinvestigate.ItwassituatedintheFoodandBeveragesectorandthestrategicmarketingteamwasconsideringwhetheraPHtechnologyforremovingimpuritiesfromCarbonDioxidegas(CO2)mighthavepotentialinnewmarkets.Onepromisingapplicationseemedtobeatthepoint-of-dispenseforcarbonateddrinks,wherepreliminaryinvestigationhadshownthattwo-ofthethreeingredientswerecertifiedpureatthepointofdispense–syrupandwater,butthethird,CO2wasnot.Thisbecamethebriefforacombineddesignandmarketinginvestigationofthepotentialforanewproduct.FilteringCO2supplyatitssourceofproductionandbeforebeingtransportedandbottledwasthenorm.Thereisthepossibilityofcontaminantsbeingintroducedduringtransportationandbottlingandfromwithinthegaslinesfrombottlestothepointofuse,butthiswasunlikelytobeanissueinindustrialapplications.However,eventheselowerriskscouldbeimportantinCO2forhumanconsumption,sotherewasapotentialproblemtoaddress.Together,MarketingandDesignvisualizedtheproblemindiagrammaticformandbegantodefineasetofassumptionsthattheywouldliketotestwithcustomers/end-userstoinformthedevelopmentoftheoverallvalueproposition(Jonesetal2016).ThroughthisprocessPHwereabletoqualifythattheproblemwasacknowledgedbytheircustomersasarealissueworthaddressing.

Exploringhowtheproblemmightbesolvedbeganwithabrainstormingsession(Fig,3.below),basedonaseriesofcarefullyformulatedquestions,involvingdesigners,engineersandprojectmanagers.Thiswasstagedoff-sitewithinadesign-studioattheUniversity,aspartofbreakingtheparticipantsawayfromtheirtraditionalmodesofthinking.Thequestionsreframedtheproblematamoreabstractlevel,andusedexamplesofhowcomparableproblemsweresolvedinotherverydifferentindustriestohelptheparticipantsgeneratethewidestrangeofideas.Forexample,replacementprint-cartridgeswereidentifiedasanexampleofananalogousproductinadifferentmarket,andboththebusinessmodelandthedigital-authenticationtechnologiesofthosedeviceswereusedtodrawananalogytothefiltrationopportunity.Thistriggeredseveralnewareasofthinkingaroundsmart-filtersrangingfromthosethatwouldknowwhentheyneedchangingandcouldtellmaintenanceteams,tothosethatcouldevenletcustomersknowhowpuretheirdrinkistoday-buildingtrustandthereforeequityforthedrinksbrandasanewvaluestream.

Figure3.StructuredbrainstormingsessionattheUniversity

Thisworkdemonstratedthecapacitytoradicallyinnovatethevalueand

meaningofaproducttoitscustomer,whendesignapproachesareapplied,notjusttoanalreadyconstrainedtechnology-package(asinProject1above),buttoanewproblem-space.

Followingthebrainstorm,ideasonuser-interactions,ergonomics,pricingmodels,productqualitiesandfeatures,aestheticsandtechnicalconfigurationswereallusedtostimulatedesigndevelopment.Sketchesandappearance-prototypeswereproducedandtakentopotentialcustomerstostimulateadiscussionaboutwhatwasvaluableandnot-so-valuable.Thelevelofengagementachievedwiththesefewlead-customers,enabledthemtosharerelevantideasandcontributetoimprovingintegrationwiththeirexistingequipmentandmaintenanceroutines.

Withaclearerunderstandingoftheproductopportunitynowdefined,thebusinesspotentialwasconsideredingreaterdetailandpotentialmajorcustomersidentifiedandapproached.Thishasledtoacollaborative(andtransparent)partnershipwithakeycustomertoundertakeproductefficacytrialswithaviewtoadoptingthetechnologyaspartofthewaytheyoperate.Thevisualproblem-statementproducedattheoutsetoftheprojecthasalsogeneratedadiscussioninthewiderdrinks-industry,whichhasledtheindustryrepresentativebodyISBTtochangeitsmembers’guidelines,torecommendpoint-of-dispensefiltration.PHarenowinprimary-positiontorespondtothatnewmarketopportunity.Theprojectisongoing.

Project2,reflectiononoutcomes:TheapproachenabledtheIndustrialDesignerandotherstofullyengage

withanticipatedcustomers,showingsketches,imagesandprototypestotestassumptionsaboutthelikelyproductrequirements.Thisresultedintheidentificationofakeyinsightwhenthecustomerhandledtheappearanceprototype,whichconcernedfixingthenewproducttoexistinginstalledequipment.Thishadnotbeenexpressedinanydiscussionsuptothatpoint.Newuser-interactionswerealsoproposed,whichcouldmakemaintenanceasafeprocessforadifferentrangeofusersandwouldprovideadistinctiveandpotentiallymorememorableinteraction.Thecompanywasabletounderstandthevalueofsuchanewproducttoitspotentialcustomersbeforethetechnicalrequirements(intermsoffiltrationperformance)hadbeenfullydefined.Thisallowedthecostsofresearchingandoptimizingtechnicalperformancetoberescheduledtoatimeaftermarket-desirabilityhadbeenestablished.Thisalsopresentednewchallengesbecauseoncethemarket-desirabilitywasestablishedthecarefulprocessofrealizingthatproductasareliableandeffectivedeviceworthyofthePHbrandissubjecttogreatertime-pressure,becauseoftheneedtoreachmarketasquicklyas

isreasonablypossible.Intheevent,additionalEngineeringresourcewasboughtin,whichisindicativeoftheimportancethecompanyplacedonthisnewopportunity.

ThisprojectattractedtheattentionofPH’sheadofficeandreinforcedtheviewthattheGatesheadsitehaddynamicleadershipandwascapableofinvestigative,market-defining,strategicinnovation.

Project3WiththeintroductionoftheIndustrialDesigncapabilityandparallel

developmentofastrategicmarketingteam,therewasanopportunitytoconsiderthenatureoftheofficespaceattheGatesheadsite.AfterProject2,thenewfocusoninnovationattheGatesheadsitehadbeennotedbyseniorVPsintheinternationalbusiness.ProposalsweremadebytheDivisionalMarketingManagertobetterequiptheofficespacesforteam-basedprojectstocontinuetopromotethisapproach.Thiswasnotaprojectthathadbeenanticipatedinthecollaborativeprojectplanattheoutsetofthepartnership.IthadhadbeenmadepossiblebythegrowingacceptancethatinnovationwascoretothefutureofthebusinessinGatesheadandthatthesitehadpositioneditself,intheeyesoftheGroup,aseffectiveatadoptingkeycorporatepriorities.AprojectwasinitiatedtorethinktheofficespaceaspartofpromotingbetterintegrationbetweenthegrowingStrategicMarketingteam,newinnovationanddesigncapacityandthemoreestablishedEngineeringteam.Thethreefunctionssharedalongopen-planofficebutthoroughfarestotheshop-floorandagenerallackofbreak-outspacelimitedtheamountofincidentalcommunicationandcollaborationthatopen-planmighthaveoffered.

Spacewasallocatedwithinthisopen-planoffice,andsomevisualizationworkcommissionedexternally,beforeabudgetwassecuredtobuildanewcollaborationandcreative-thinkingspace.Onceinstated,thisbecamesomethingofaflagshipspace,withkeyvisitors,customersandexecutivesbeingshownthespaceasaphysicalrepresentationofanew,progressiveapproach.

Figure4.TheIdeasLabspacecreateformultidisciplinarycollaboration.

TheseniormanagementteaminGatesheadareclearlyproudofthe

spaceandthenarrativearoundinnovation,whichitaffordsthem.Itwascreatedasanon-bookablespace,whichcanbeusedtocollecta

multidisciplinaryteamaroundanissueinaquickandinformalwayaswellashostingstructuredprojectworkshopsandbrainstorming.WallgraphicspromotedesignprocessesandthecoloursinthenewspacereflecttheParkerbrandguidelines.IthasbeencalledIdeas-Lab,followingthenameofPH’sonline‘suggestion-box’processforsurfacingandprioritizingnewproductideasfromstaffandstakeholders.

Project3,reflectiononoutcomes:HavingbeencommissionedbytheStrategicMarketinggroupandbeing

situatedneartothem,manyoftheearlyactivitiesinthespacewereledbyMarketing,whichcreatedaperceptionthatthespacewasactuallytheirsandnottrulyshared-use.However,overaperiodofaround12-months,thishasbeenbrokendownandthespacehasbecomewell-usedforteam-baseddiscussionandproblem-solvingsessionswithalldisciplinesinvolved.The

newspaceisdesignedtosupportsuchmultidisciplinaryapproachesintheearlyphaseofexploringnewmarketareas.Becausemanyoftheapproachesandfacilitationprocessskillsusedininnovationteamsmirrordesign-thinkingandvisualproblem-solving,thepromotionofthespacehassimultaneouslyhelpedtoaffirmtheroleofIndustrialDesigninthebusinessgoingforwards.Hencethephysicalspacesymbolisesthestrategiccommitmentthecompanyhasmadetoembeddingthenewdesigndiscipline,tothefulladoptionofnewParkerbranding,andtoputtinganewemphasisoninnovationasamultidisciplinaryactivity.

Perhapsmostimportantofall,itshowsthatdevelopingacultureofinnovationisnotafadoratemporaryobsession.Physicalchangestothespacearenoteasytoreverseandhaveclearlyhadsomeinvestment,sotheIdeas-labdemonstratedanabsolutecommitmenttonurturinganinnovation-focusedorganizationalculture(Hatchetal,2008).Itisrealizedtoahighspecificationandmanifeststhechangetowardsbrandcoherenceandcorporateself-belief.

Ithasalreadyhadastrikingimpactinthewidercorporation,creatingtheexpectationthateveryParkersitemightdevelopsuchaspace.Ifthisbecomesorganizationalpolicy,theintroductionofthesephysicalinnovationspaceswouldprovideachannelforthevalueofdesign-thinking(throughtheIndustrialDesignfunction)topropagateacrossthegroupasconfidenceinitseffectivenessatthePHGatesheadsiteisestablished.Withthisinmind,someofthedesign-thinkingmethodswhichhaveworkedwelltodate,arecurrentlybeingassembledintoaworkshop-facilitator’stoolkitforusewithmultidisciplinaryteams.

Project4Fromtheoutsetofthecollaboration,emphasishadbeenputon

ensuringthattheCustomerCentricInnovationapproaches,developedandrehearsedthroughsuccessiveprojects,becodifiedandembeddedintheorganization.Havingworkedonarangeofprojects,includingthekeyprojects1and2reportedhere,theacademicteamandtheIndustrialDesignerworkedondefiningthekeyactionsforIndustrialDesign.PHhadacomprehensivebutfairlynewsetofprocessesforinnovationwhenthisstudybegan.Staffweretrainedintheprocesseswhentheyjoinedthecompany,however,asinanyorganization,therehadbeenatendencytofittheprocedurestotheavailableexpertiseandresources,soadoptionwas

stillin-progress.PHcorporateinnovationprocessesencompassedamarketanalysistool:‘Winmap’,astageandgateNewProductDevelopmenttool:‘Winovation’,andapricepositioningtool:‘Winvalue’.TheacademicteamandtheIndustrialDesignerusedtheknowledgeandexperiencegainedfromtheprojectsundertakenduringtheprecedingstagesofthepartnershiptodevelop,documentandmapIndustrialDesignfocusedtaskstotheexistingprocesses.ThiswasacollaborativeactivitywithcolleaguesfromEngineeringandMarketingwhowereundertakingasimilarmappingprocessfortheirownfunction.TheWinovationprocesscanbeconsideredasanover-archingframework–withvariouslevelsofactivityandmeasurestoallowprojectstoprogresstothenextstage,orsub-stage.OneofthemostvaluablepartsofthisprocesswasthatthisstimulateddiscussionandnegotiationbetweenMarketing,Engineering,ProjectManagementandIndustrialDesign–inordertoagreeandassigntaskactivity,ownershipandcontributiontoeachfunction.ThisprojectisstillinprogressatthetimeofwritingandisduetocompletebyJuly2016.

Figure5.Winovationmanagementspreadsheet–thisexcerptshowsapproximatelythefirsthalfofthewholeprocessmap,withactivitiesinvolvingIndustrialDesign(ID)highlighted(theverticalcolumnsframedwiththedotted-lines).ThisoverviewillustratesthesignificantlevelofresponsibilitythatIndustrialDesignnowtakesintheearlystagesoftheoverallinnovationprocess.

Figure6.Winovationmanagementspreadsheet–thismoredetailedexcerptshowsthespecificcustomer-centrictasksidentifiedfortheIDfunction.Theiconsbeloweachactivityshowhowownershipofeachtaskhasbeennegotiatedacrossthemultidisciplinaryprojectteamswithleadershipresponsibilitydenotedineitherblack(orred-overblackwherethetaskisownedbyID).

Project4,reflectiononoutcomes:Althoughthisfinalphaseofthepartnershipisstillongoing,it

demonstratesthattheIndustrialDesignfunctionisnowbeingnegotiatedintoafullydefinedrelationshipwiththeotherdisciplinesinthebusiness.Thisincludestakinganownershiproleinsomeoftheearlyphasesoftheinnovationprocess.AroleforDesignwhichwouldnothavebeenpossibleatthetimeofProject1.Theimportanceofthefacilitationroleinmultidisciplinaryteamshasalsonowbeenrecognisedandcapturedinorganisationalpolicyaswellascelebratedthroughthegraphicalprocessmapsinthenew‘IdeasLab’innovationspace.

Thisprocessofclose,inter-disciplinarynegotiationhasbeenopenandpositivebuthasstillraisedissuesandchallenges.Forexample,itrevealedaconcernthatinnovationwasbeingdiscussedasadesign-basedactivity,andthatthisfailstorecognizetheinnovationcontributionmadebytheEngineeringteam.Similarly,therewasawillingnessandappetiteamongsttheEngineeringteamtobeinvolvedinthecustomer-researchelementsoftheinnovationprocess,havingfoundtheirowncontactwithcustomershadgraduallydiminishedinrecentyears.

ConclusionsThiscaseandtheindividualprojectswithin,havedemonstratedastaged

approachtoestablishingacustomer-centricinnovationcapabilityinamature,technology-centricorganisation.

Ithasinvolveddevelopingtheorganisation’sownconfidenceaboutthevalueandfitofIndustrialDesignthroughaseriesofprojectsandregularreflectiononwhatisworkingwell,not-so-wellandwhatisraisingconcernsalongtheway.RatherthandecryDesign’slackofinfluenceatboardlevelitacceptsareflectiveprocessofbuildingtrustaroundthedisciplinethroughpracticeanditsdemonstrableachievements.

ItshowsalogicalprogressionfromdemonstrationofoperationalandtacticalDesigninputintermsofproductaestheticsandinterpretationofcorporatebrandlanguageinProject1.Throughdemonstratingthecapacitytoinvestigateanddefinenewmarketsthroughacustomer-centricapproachtoinnovationinProject2.AndinProjects3and4itdemonstratesDesign’scapacitytoinfluencecultureandpolicy,initiallywithinPHGatesheadbutwithplanstoextendthatacrossthegroupinthefuture.Assuchitprovidesanalternativeapproachtoattemptingtodevelopandimplementapre-formulated‘grand-plan’forDesign.

Acknowledgements:Inthiscase,theDivisionalMarketingManager(co-authorMcPherson)wasadriving-forceforchangebothinsideandoutsidethecustomer-centricinnovationproject.Theircommitmentandopennessthroughout,energisedthewholeprogrammeofworkandtheacademicteamtakethisopportunitytothankthem.

TheteamgratefullyacknowledgetheguidanceandfundingprovidedtotheprojectthroughtheUKGovernment’sKnowledgeTransferPartnershipsProgramme.

ReferencesBrown,T.(2009).Changebydesign.HowDesignThinkingTransforms

OrganizationsandInspiresInnovation.HarperBusiness.Cooper,R.G.(2011).Perspective:theinnovationdilemma:howtoinnovate

whenthemarketismature.JournalofProductInnovationManagement,28(s1),2-27.

Kim,C.andMauborgne,R.,(2008).Valueinnovation.HarvardBusinessReview,January1997.

Griffin,A.,&Hauser,J.R.(1993).Thevoiceofthecustomer.Marketingscience,12(1),1-27.

Hatch,M.J.,&Schultz,M.(2008).Takingbrandinitiative:Howcompaniescanalignstrategy,culture,andidentitythroughcorporatebranding.JohnWiley&Sons.

JonesS.E.CoatesN.McLeayF.CunninghamJ.(2016).FromEngineeringtoMarketLedCustomerCentricValuePropositionsinaMNCSubsidiary:ACaseStudyofParkerdomnickhunterFiltrationandSeparationDivision.ProceedingsoftheAcademyofMarketingConference2016(onlinepublicationpending-throughhttps://www.academyofmarketing.org/conference/conference)

Martin,R.(2009).Thedesignofbusiness.HarvardBusinessSchoolPublishing,Massachusetts.

Selden,L.&MacMillan,I.C.(2006).Managecustomer-centricinnovation-systematically.harvardbusinessreview,84(4),108.

Verganti,R.(2009).Designdriveninnovation.HarvardBusinessSchoolPress,Boston.

Veryzer,R.W.(2005).Therolesofmarketingandindustrialdesignindiscontinuousnewproductdevelopment.JournalofProductInnovationManagement,22(1),22-41.

Yin,R.K.(2013).Casestudyresearch:Designandmethods.Sagepublications.

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