Blogroll / Business models / Design innovations

Why are the design innovations highly successful? Nintendo example

Design and innovation go hand in hand with the financial performance of organizations. Confirmed in the report from the UK’s Design Council that design oriented firms in all kinds of industries have outperformed their more-traditional peers. A short example of this is presented with Nintendo’s focus on design and creativity of Wii rather than classical research and development.

According to insider information presented to me, Nintendo was actually in very deep trouble before it developed Wii – game console, which has reaped great success and is admired by all possible generations, from children to the elderly. What did Nintendo do?

Pictures showing Nintendo Wii players

Focused on creativity. And not on the technology. He stopped to compete with the competition (Microsoft and Sony) in the development of high-performance graphical games that are anyway to interest only to the most enthusiastic players. Nintendo has instead opted for:
+ a low-cost differentiation;
+ focus was placed on occasional players;
+ the business model was also innovative.

“Studies have shown that design oriented firms in all kinds of industries have outperformed their more-traditional peers—that design and innovation go hand-in-hand with financial success.” —Design Council (.pdf document, 274 KB)

It was a typical design innovation that is not based on high-technology achievements. What is typical for Design Innovation? That the design in such a organization is at their core (we had such a case with in Iskra corporation in Slovenia decades ago), so they are first-to-market and force me-too response by the competition.

Sources:
Nancy Duarte. Slide:ology: The Art and Science of Creating Great Presentations
Robert Safian. The design dividend: Letter from the editor

Marko Savić
I’m raising awareness of the connection of business model innovation with design thinking. Have just published a book on business models design. You may wish to meet me in person at my next workshop or interact with me on Twitter.

Enhanced by Zemanta

Workshop: Business model design: Wien

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s