5
1.2 Toward a Working Definition of Innovation
Since more than a century ago, the seeds of these ideas were already present. In
Austrian economist Joseph Alois Schumpeter’s book, The Theory of Economic
Development (1911), the concept of “creative destruction” was articulated as a process “that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” He also described
innovation as the cause of market dislocations, which enabled new firms to displace
old firms from markets (Schumpeter 1942).
Schumpeter pioneered the idea that competition should not be based only on
price, but instead on capabilities and performance. He was the first known economist to shift the basis of competition from the ability to reduce costs to the capability to innovate.
Building on these ideas, for the purposes of this book, we will use Scott Berkun’s
definition of innovation. Berkun, author of The Myths of Innovation book, states that
“innovation is significant, positive change.” Innovation is something you work
toward. It should be the end result or outcome. It is the sum of an organization’s
efforts to keep its value proposition to customers and end-users both relevant and
compelling.
Though such definition of innovation appears to be unexpectedly unassuming and
simple, be mindful that the articulation of all the components leading to the successful practice of innovation, and the ability to claim success in terms of significant value
actually delivered to customers, is a remarkably complex, yet attainable, endeavor.
1.3 The Deep Relationship Between Innovation, Design,
and Human Needs
The growing awareness that technology is only one driver of successful innovation
has led to the development of a more human-centered approach to innovation. This
approach is strongly anchored in a deep understanding of customers and other
stakeholder needs, preferences, non-spoken and poorly articulated perspectives, and
emotions. Here the attention is not on focus groups or on collecting and analyzing a
deluge of marketing data. Instead, human-centered innovation identifies the sources
of meaning for users.
Because users have a rather limited ability to articulate their unmet needs, innovators increasingly borrow the perspectives of designers to capture such needs. This goes
well beyond purely aesthetic aspects and instead builds on empathy, visualization,
enlightened failure, and market experimentation. A design perspective aims to understand the behavior that people struggle with while living their lives, bringing a humancentered perspective to innovation efforts. Only through the willingness to immerse
yourself in the lives of users can you uncover their constraints and frustrations with
non-existent or limited solutions. That immersion simply cannot happen in your office
or within the boundaries of your organization. Instead, you must empathize with the
pain, disappointment, and frustration your users endure in their daily lives.
1 The Quest for Innovation: Addressing User Needs and Value Creation
1.2 Toward a Working Definition of Innovation
Since more than a century ago, the seeds of these ideas were already present. In
Austrian economist Joseph Alois Schumpeter’s book, The Theory of Economic
Development (1911), the concept of “creative destruction” was articulated as a process “that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” He also described
innovation as the cause of market dislocations, which enabled new firms to displace
old firms from markets (Schumpeter 1942).
Schumpeter pioneered the idea that competition should not be based only on
price, but instead on capabilities and performance. He was the first known economist to shift the basis of competition from the ability to reduce costs to the capability to innovate.
Building on these ideas, for the purposes of this book, we will use Scott Berkun’s
definition of innovation. Berkun, author of The Myths of Innovation book, states that
“innovation is significant, positive change.” Innovation is something you work
toward. It should be the end result or outcome. It is the sum of an organization’s
efforts to keep its value proposition to customers and end-users both relevant and
compelling.
Though such definition of innovation appears to be unexpectedly unassuming and
simple, be mindful that the articulation of all the components leading to the successful practice of innovation, and the ability to claim success in terms of significant value
actually delivered to customers, is a remarkably complex, yet attainable, endeavor.
1.3 The Deep Relationship Between Innovation, Design,
and Human Needs
The growing awareness that technology is only one driver of successful innovation
has led to the development of a more human-centered approach to innovation. This
approach is strongly anchored in a deep understanding of customers and other
stakeholder needs, preferences, non-spoken and poorly articulated perspectives, and
emotions. Here the attention is not on focus groups or on collecting and analyzing a
deluge of marketing data. Instead, human-centered innovation identifies the sources
of meaning for users.
Because users have a rather limited ability to articulate their unmet needs, innovators increasingly borrow the perspectives of designers to capture such needs. This goes
well beyond purely aesthetic aspects and instead builds on empathy, visualization,
enlightened failure, and market experimentation. A design perspective aims to understand the behavior that people struggle with while living their lives, bringing a humancentered perspective to innovation efforts. Only through the willingness to immerse
yourself in the lives of users can you uncover their constraints and frustrations with
non-existent or limited solutions. That immersion simply cannot happen in your office
or within the boundaries of your organization. Instead, you must empathize with the
pain, disappointment, and frustration your users endure in their daily lives.
1 The Quest for Innovation: Addressing User Needs and Value Creation