The Design and Technological Innovation: How to Understand the Growth of Startups Companies in Competitive Business Environment

2351-9789 © 2015 Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of AHFE Conference
doi: 10.1016/j.promfg.2015.07.361
Procedia Manufacturing 3 ( 2015 ) 2199 – 2204
Available online at www.sciencedirect.com
ScienceDirect
6th International Conference on Applied Human Factors and Ergonomics (AHFE 2015) and the
Affiliated Conferences, AHFE 2015
The design and technological innovation: how to understand the
growth of startups companies in competitive business environment
Isabela Moroni*, Amilton Arruda, Kátia Araujo
Federal University of Pernambuco, Av. Acadêmico Hélio Ramos, s/no, Recife, 50670-420, Brazil
Abstract
This paper analyzes how the strategy focusing on design-driven innovation can help startups in creating design concepts or
business innovators to promote the growth of such companies so sustainable in its market, where competition is fierce and full .
As much as there is an understanding and recognition of the importance of design as a management tool, Brazilian startups have
difficulties in linking the design driven innovation with the strategies of their small organizations devoted to innovate. Thus,
through a literature review using the recent lines of research that address the design-driven innovation, design management and
innovation, it was possible to develop a strategic management model targeted to the profile of startups based on design driven
innovation to contribute to the building and strengthening of values related to the design and innovation in the organizational
environment of these young companies, in which the correct and effective use of these methods / tools always lead to growth and
greater interaction of the brand / product to the end user
© 2015 The Authors. Published by Elsevier B.V.
Peer-review under responsibility of AHFE Conference.
Keywords: Innovation; Startups; Design-driven innovation; Strategy design
1. Introduction
Many companies in the XXI century are going beyond the traditional calculations and analyzes. This is the case
of small and young firms known startups. These organizations have realized that many of these procedures are
identical, and want something different, they can discover extremely profitable niche markets to innovate without
* Corresponding author.
E-mail address: [e-mail]
© 2015 Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of AHFE Conference

2200 Isabela Moroni et al. / Procedia Manufacturing 3 ( 2015 ) 2199 – 2204
the need huge investments. Introduced into their product or service innovations that your users fall in love
immediately.
This thinking has led many of these companies to the world of design, although this area is traditionally known
for the aesthetic appearance of products, however the primary objective it is to promote maximum well-being in
people's lives. It allows even a number of methods, tools and techniques that can be used in different stages of the
innovation process to increase the amount of new products and services. The design proposes a process in which
companies can look the same context with a new perspective, so that a startup is not only driven by the marketing of
new technologies, but driven by new meanings to promote products and services, since the consumers do not buy
more exclusively by the impulse of the aesthetic quality of products, but their decisions include criteria emotional,
social, cultural and psychological and usability.
The design-driven innovation is a strategy focused on delivering distinct offerings that provide new meanings
through radical proposals which are not limited only to analyze user universe, but get a larger context of how the
environment in which people live is evolving and which could change for the better. Includes in its process called
interpreters of meaning to detect, attract and interact different concepts to products. In addition to supporting the
development of new products with extraordinary meanings for users, it also provides a high degree of innovation of
the product or service in the market.
In Brazil, startups are considered startups and many of them are embedded in the context of an incubation process
in order to receive funding for projects supported by external sources of financing, but also a way to optimize a
small capital. The incubators are responsible for assisting these companies to develop a strategic plan and develop
your business plan in the short and medium term. However, this article contributes to the strengthening of design
concepts for startups in Brazil in order to provide an understanding of how the design area may help these small
businesses to create and implement successful strategies, which make them suppliers radical innovations in an
extremely competitive market. In this sense, a strategic model geared to these companies, which includes innovation
driven design approach to innovation, it is extremely relevant for the purpose that these companies become
differentiated and scalable, they can get a prominent position in an increasingly dynamic consumer market.
2. Literature review
2.1. Startups and the competitive market
[4] defines a startup as "a company or a human institution that is built on different branches and that
spontaneously arises the condition of extreme uncertainty, has at its core innovation to create products and services
which they wish revolutionize the market." Complementing this definition, [1] states that a startup, connected to any
type of business, which is not in focus to product innovation or services and therefore waived for the risks of
uncertainty, it is not a startup.
In a highly competitive environment, startups have an important role. Young entrepreneurs willing to take risks
with disruptive ideas and creativity, create completely new business that help invigorate the economy of a country.
However, as much as a startup has a revolutionary idea, is no guarantee of sustainable success. Such companies
often seek financing for their projects become scalable and profitable.
As the market for startups is characterized by uncertainty and also because they are completely new businesses,
there is a long and stable operating history, since it does not have statistics or experience, which makes them
companies with high risk of mortality in the first years of activity . The great challenge of these companies is to
remain essentially creative not only in innovation in products or services, but also in the company's management
mechanisms.
It is with this thought that other business functions also make it up as important as the development of new
products or technologies. A startup should not be focused on the product only, but in your market, competitors,
users, suppliers to be identified real opportunities for innovation. For this, a strategic long-term vision is important,
with objectives and goals outlined for the young entrepreneurs have a guiding instrument of their actions.

2201Isabela Moroni et al. / Procedia Manufacturing 3 ( 2015 ) 2199 – 2204
2.2. The economic and social importance of startups
In developed countries like the United States, startups have an important role in the economy. The region of
Silicon Valley, known for harboring renowned high-tech companies such as Google, Cisco, Facebook and Apple, is
considered the most promising startups in the world environment. About 86% of Valley startups receive high
investment values. It is estimated that there are 298,800 angel investors, critical to the development and success of
these companies and also for the movement of financial resources in the country.
In developing countries, the scenario of startups is quite different. In Brazil, 50% of them die in the first four
years of operation. About 25% receive investments of approximately 6,450 angel investors. It is estimated that there
are in the country about 10,000 startups, which moved in 2012 about US $ 2 billion, representing 0.4% of Brazil's
GDP. From the point of financial volume movement of view, the impact of these companies in the economy is still
small, however these companies stand out by providing solutions which are not based on high technology, but social
impact. As an example the company Easy Taxi, which developed an innovative mobile app for the population to
receive taxi services in a secure and extremely fast, with quality of care, minimizing the negative impacts of a
network of extremely problematic country transport.
2.3. Management of startups
[4] states that the traditional methods of administration do not apply startups, since these methods are based on
estimates that work best in environments static, rather than dynamic environments to which these companies are
inserted, with frequent changes and greater risks. The author proposes a simplified model to help young
entrepreneurs in the conduct of startups, as shown in Figure 1. For the most base of the triangle, vision, small
entrepreneur defines where it wants to go, a North, in order to have a clear idea of a goal greater to be achieved. On
the following basis, strategy, includes the company's business model, as entrepreneurs will lead an organization to
which it was assigned. The definition of the strategy includes the methods, techniques and tools standards adopted
by startups to reach the last stage of the model, the products, which will be launched in the market and also adjusted
according to their performance.
The strategy of a startup is an important driver of their actions. The idea is to avoid designing complex, intangible
plans without considering the uncertainties and difficulties of startups management, but include in your business
model a product plan that is faithfully fulfilled and that every setback is not seen as a failure, but as an opportunity
to learn how to get on the established view. It is a hard road in search of success, but in the current conjutura
marketing, failures are extremely important for greatness, so innovation covers not only the final product, but also in
how to achieve these goals [4].
In this context, the design management area encourages an inclusive approach, ie, involves people of the
company towards the creation of an offer of really considerable value, as it helps the company to structure and
design your environment to make it understandable. When it comes to a completely surrounded by uncertainty
environment as in the case of a startup, this view that the design allows these small companies to shape their
environment, contributing to building a reality and helping in strategic management, results in a collaboration for a
better understanding of their complex environment [3].
3. Strategic management of innovation and design
Essentially remain innovative to compete is a strategic attitude and innovation should be seen by young
entrepreneurs not like any activity, but as an ongoing process in the long run. [3] states that the design relates to key
issues for successful innovation as the understanding of user needs, competitive advantage and synergy between the
company's strengths. The strategic approach to design management involves understanding of design as a new
paradigm for reaching ideas and methods that can be used to increase management efficiency as a whole.
[3] points out that the design creates value in a company innovation management, as part of improving the quality
of new product development process, defining the product strategy and the skills of a project team, is a large
company, but also a little.