innovation of bang & olufsen
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Design Driven Innovation – Bang & Olufsenan HBS case, powerpoint by Wesley Shu, Ph.D.
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Bang & Olufsen
You can watch a B&O TV for hours – and then you turn it on.
The product itself is ‘experience’ – Wesley Shu
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Issue
• Impact of iPod: extend into virtual space, not only physical form or function
• Extend to virtual space, where great design meant great software and network-based interaction with other products and services
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Issue
• This differed from B&O’s traditional expertise
• The company formed Idealab• “supplementary innovation” – a way
of injecting new ideas into products from outside the traditional process
• Move away from designers’ near absolute control over products
• But how to decide the ‘right’ amount of change?
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Survived from Asian competition 1960s• By allying with a group of
architects & designers
• By focusing on ideas and design behind its products
• Emphasizing high quality
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Design Style
• Influenced by Bauhaus and Scandinavian preference for clean lines
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Bauhaus
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Scandinavian clean-line
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Scandinavian clean-line
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2001 strategy to overcome difficulties• Car stereo systems
• Mobile phone
• Hotel
• Luxury yachts
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Vision (mission?) Statement
• Courage to constantly question the ordinary in search of surprising, long lasting experiences
• For Bang & Olufsen, design is far more than mere styling of existing products; rather it is the expression of an idea, the concept made conscious
Business M
odel
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Self Position
• “We see competition more in the recreational car or home, high-end furniture or luxury travel… We relate more to a BMW than to the generic product ranges of electronics giants.”
• Very hard to imitate – technology and material to support the unique design (cf. Philip, Fisher)
Business M
odel
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Customer
• Vital core customers
• 80% revenue came from 800 to 1,000 customers in the U.S.
• Customer relations are important – CRM.
• Not only design, but the way the product works
Business M
odel
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Designer – never in-house!• Away from the influence of
its daily business
• Not need to understand their industrial limitations, e.g., manufacturability
Making B
an & O
lufsen P
roducts
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Designer – never in-house!
“Designers have to be free to look in an unconditioned way at what’s happening in our society, how people live and furnish their homes…”
Making B
an & O
lufsen P
roducts
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Who Are the Designer
• A senior designer – British
• 3 external designers
• Competitions
• Good designers have strong personality
Making B
an & O
lufsen P
roducts
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Design Competition
“When flat screen TVs started to take off, B&O launched a competition among nine designers from different parts of the world for ideas on what the B&O flat screen concept should be.”
Making B
ang & O
lufsen P
roducts
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Designer
• Then, B&O attracts more talented designers.
Making B
an & O
lufsen P
roducts
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Process
• No standard process for product design and development
• Culturally evolved collaboration between designers, concept developers, engineers, and technicians
Making B
an & O
lufsen P
roducts
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Process
• Close physical proximity to production departments
• Thesis by designers – antithesis by engineers – synthesis : one or two years
Making B
an & O
lufsen P
roducts
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Concept Developers
• Bridge art towards the repetitive processes of an efficient industrialized manufacturing process
• Constantly question the ordinary
• Give hard time to manufacturing guys
Making B
an & O
lufsen P
roducts
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Coming up with new ideas• From designers
• From engineers – new technology inspiring designers
• From perceived needs to fill out the product portfolio
Making B
an & O
lufsen P
roducts
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Ideas from designers
• See how customers live, not ask what they want.
• Customers only know what’s already hot in the market.
• Go beyond customer expectation
Making B
an & O
lufsen P
roducts
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Design – Prototyping
• Idea iterates until it has ‘substance’ – unique personality
Product D
evelopment Life
Cycle
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Prototypes – product commitment• Decision was made with the heart,
not financial or technical considerations
Product D
evelopment Life
Cycle
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Product commitment – development• A dedicated project team formed
• Designers remained involved
• Concepts or development process may change if a convincing new idea comes up.
Product D
evelopment Life
Cycle
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Some Products
• BeoSound 9000– originally unmanufacturable– Took 5 years from the decision point
to manufacturing
• BeoLab 8000– Originally a crazy idea
• BeoCom 2– New technology & material to support
design, e.g., hydroforming used by Porsche
Product D
evelopment Life
Cycle
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Conclusion
“If you wanted to express power and determination as a manager here, it would be difficult, but if you allow a certain degree of freedom you get a very creative environment.”
Product D
evelopment Life
Cycle
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IdeaLab – B&O’s effort to digital world• Goal: untapped or uncontested
markets, network economy, media convergence (is iPod one?)
• The most challenging part is how to integrate into existing business environment
IdeaLab
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Effort to integrate
• Find the way to communicate• Follow existing way of communication• Collocate chief graphic designer with
concept developers at IdeaLand• Demo facility without pushing designers
to visit• Supplementary functionality for existing
products• Patience! Usually took longer than
anticipate
IdeaLab
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Some B&O Products
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Some B&O ProductsBeoLab 5 Loudspeakers
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Some B&O Products
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Some B&O ProductsBeoVision 7 and BeoLab 8000
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Som
e B
&O
Pro
ducts
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Some B&O ProductsBeoLab 3
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Some B&O ProductsB
eoCom
2
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