Innovation and Design in Technology

This assignment examines the crucial role of innovation and design within the technology sector. It explores various frameworks and concepts such as design thinking, lean six sigma, and the impact of consumer crowds on product development. The analysis considers how businesses leverage marketing capabilities and value chain activities to foster sustainable competitive advantage through technological innovation.

MANAGING DESIGN AND
INNOVATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
About product..............................................................................................................................1
Rationale of the study..................................................................................................................2
Objectives of study......................................................................................................................3
Advantages gained by the clients or customers...........................................................................3
Uniqueness of product’s design elements....................................................................................4
Brand appeal................................................................................................................................6
Applied theory.............................................................................................................................6
TASK 2............................................................................................................................................7
Knowledge gained from report....................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

LIST OF FIGURES
Figure 1: Samsung Galaxy S7 Edge................................................................................................2
Figure 2: Product Life Cycle...........................................................................................................7

INTRODUCTION
In today’s economy, creativity has become the most valuable commodity through which
business can survive with sustainability. Companies need ingenious solutions in order to reach at
target market so that customer base of the firm can be enhanced. Thus, for organizations, it had
become a major necessity to give due consideration on two aspects, that is, design and
innovation (Verganti, 2013). In the present scenario where there is intense competition between
firms in the market, if business cannot come up with innovative design to hook the target
audience at first sight, then for organization, to sustain and survive in the long run would become
impossible. In the present report, the innovative product of the firm Samsung, Samsung Galaxy
S7 series is being chosen which has evolved over time and has become a great success in the
market. Here, major benefits and values derived from this product, features of the products and
brand appeal in the present contemporary mobile hand set market will be studied.
TASK 1
About product
Samsung Galaxy S Series are the Android Smartphone in which Super Smart devices of
the Galaxy series are included. These devices are manufactured by Samsung Electronics. These
mobile handsets have been sold more than 177 million units in which 25 million units were sold
only of 25 million units. However, more than 40 million units, Samsung Galaxy S2 was sold out
in the market Along with that, sale of Samsung Galaxy S3 was more than 60 million units. Apart
from that, Samsung Galaxy S4 was sold more than 40 million. Last but not the least; company
had the sale of 12 million units of Samsung Galaxy S5 initially in three months when it was
launched in the market.
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Figure 1: Model of Galaxy S7 Edge launched by Samsung
(Source: Newly launched model of Samsung Galaxy S Series, 2016)
However, newly launched models by company in Samsung Galaxy S Series are
generating higher profits for the organization and gaining high success. It has been revealed on
7th April 2016 that currently, S7 series is having better sales performance during its opening
month in comparison to S6 series. It has been assessed as per the survey made across 40 nations
(Galaxy S7 edge, 2016). In US, sales of Galaxy S7 and S7 Edge is 30% however, in Western
Europe, it is 20%. Also, S7 series is having higher sales and doing very well in the Chinese
market.
Rationale of the study
It is not far back when it was assumed that Nokia is the leading brand in the market of
mobile hand set and no one can become the competitors of it as it was covering 60% of the total
market demand. However, it the current scenario, market demand of Nokia handsets is minimum
and decreasing day by day. At the time when Apple lauched its iPhone in the year 2007, it has
done innovation in the mobile industry and was growing at a fast pace with launching smart
mobile phones in the market con continuous basis (Brown and Wyatt, 2015). But, as per the
latest market conditions, it has been revealed that Samsung Galaxy S7 Series produced by
Samsung has exceeded the success of smart phone leader, that is, iPhone of Apple. It has made
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the market highly competitive which is the major reason because of which this product has been
chosen in the present report. Here, the study will be made on the pleasure and function ability as
well as usability of Samsung Galaxy S7 series by which it is successfully creating competitive
advantage over other rivals firms like Blackberry, Nokia and Apple.
Objectives of study
Major objectives for attaining of which the study is being carried out are like:
 To evaluate the advantages gained by Samsung Galaxy S7 Series.
 To assess the exceptional features of newly launched model by Samsung.
 To identify the way in which newly launched model of Samsung Galaxy Series made
promotion in comparison with the present rivalry firms in the market.
Advantages gained by the clients or customers
There are lots of benefits and high value that clients or customers derive from using
Samsung Galaxy S7 Series. It can be described by taking the key elements of a product in
consideration. One of the major key elements of these mobile handsets is product benefits. For
customers, it is important to get their demands and expectations fulfilled for their satisfaction
(Luchs and Swan, 2011). For that purpose, performance and image of the brand plays a
significant role as customers desire to buy that product which would fulfill their expectations and
of which brand image is good in the market. This is the reason customers are highly satisfied
with the Samsung Galaxy S7 Series. On the other hand, it can be said that if company will fail to
satisfy its customers, it will have to face severe losses in terms of negatively affected goodwill as
well as financially (Zeithaml, Bitner and Gremler, 2010). Samsung is having very high goodwill
and thus the brand image of its products is also high.
Advantages gained from the newly launched model are like sending data on different
media and high storage capacity. Along with that, S7 series also provide benefits and value to its
target customers like internet access without any disturbance, making schedules and delegating
specific duration of time to the appointments (Kozinets, Hemetsberger and Schau, 2008). Also, it
proves to be highly advantageous for customers to buy these handsets as it offers features like
video conference as well as multitasking update social and professional status. People get
satisfied with the product attributes as for them these were exactly in accordance with their
desires. The major value which Samsung provides to its customers in relation with its Galaxy S
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Series is that of after sales service in terms of guarantee and warrantee (Bloch, 2011). Company
offers marketing support to their customers in order to make them stay with the firm in the long
run to gain their loyalty in return.
Uniqueness of product’s design elements
The difference is shown in between three models of different companies as below:
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From the above table, major differences in the features have been shown that reveals the
characteristics of competitors as well which they are using. In all the above three models, there
are some similar specifications with having the operating system which is also alike. However,
some differences are also present in distinct areas like in the looks of models. Not only the
physical appearance, individual differences in the features of Samsung handsets from the present
rivalry firm’s products can be explained in terms like wireless charging facility, long lasting
battery life, strong front camera as well as size of RAM (Beckman and Barry, 2009). However, it
can be critically analyzed that if Samsung would not offer this uniqueness in its products, then it
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would become impossible for the firm to survive in the long run with beating competition that
exists in the market.
Brand appeal
In today’s competitive market, it has become very important for firms to build and
maintain their brand image. It serves as the personality that makes a company different from the
other. Major advantage that Samsung gains for its product, Galaxy S7 Series, is that it is a very
popular brand and offers numerous benefits and services to their target customers in such a way
that they are highly satisfied as well as the brand loyal (Jugulum and Samuel, 2010). Company is
making a different brand in the market of cell phones. It is making high efforts in setting the
prices competitive. Apart from that, company is also having an effective distribution channel at
the global level. It is offering high innovation in the features of models. With the help of
branding, customers find it easy to search for the brands that they perceive to be in accordance
with their expectations (Verganti, 2011). For organizations like Samsung, branding plays a vital
role as due to presence of intense competition, to make a distinct position of the firm is
important.
Samsung is working very hard in order to position itself as a brand that is using the latest
technologies and design and giving those features which no other firm in the market of mobile
handsets is offering. Company has adopted many strategies so that it can beat competition with
the major firms like Apple, HTC and Sony. Inspire the World, Create the Future is the slogan
given by Samsung (Baregheh, Rowley and Sambrook, 2009). Organization is providing several
innovative products and participates in various campaigns which prove to be very helpful in
promoting the brand logo along with enhancing the brand image of product. From past 5-10
years, the level of competition has reached at peak with the firms in which Apple is the biggest
competitor. Main reason behind this is that market is dynamic and needs and preferences of
customers are changing rapidly (Parasuraman, 2010). However, there are lots of benefits that
Samsung provides to its customers which are making the most preferable brand over others.
Applied theory
For assessing the three key characteristics of product, that is, functionality, usability and
pleasure, theory of product life cycle (PLC) can be represented which shows that fluctuation
occur in a product’s sale with time. At the initial stage when a produce introduces, sale of a
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product get enhanced but at a diminishing rate. However, in the growth stage, sales get increased
at an increasing rate. After that, when it reaches to maturity level, the sales of a product becomes
maximum and starts declining after that, that is, in the declining stage (Prajogo, McDermott and
Goh, 2008). It shows the importance of designing marketing elements and making innovation in
the model when it reaches to maturity stage so that duration of enjoying maximum sales can be
enjoyed for longer duration. Through this, product of a company can survive and sustain in the
long run; otherwise, it would become fail.
Figure 2: Product Life Cycle
(Source: Product Life Cycle Stages and Strategies, 2016)
This theory suggests that each and every firm is required to make investment in research
and development purpose and time so that continuous innovation can be made in the products.
Apart from that, firm will be able to design its marketing activities effectively by which range of
product life cycle can be increased and will provide maximum returns on their investment that is
made for the purpose of development of products and services (Feser, 2008). As per the present
report it has been assessed that the latest launch of Samsung is facing intense level of
competition and innovation in the external environment due to presence of lots of rivals in the
market (Ward, Runcie and Morris, 2009). Thus, in order to survive in the long run and for being
the market leader, it is essential to have successful marketing design and continuous innovation
process which are the key elements, giving proper emphasis on which will make the Samsung
Galaxy S7 Series a great success in the market.
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TASK 2
Knowledge gained from report
To incorporate different types of innovation and design development in the products and
services plays a significant role in the present contemporary world to make an organization run
its business in the long run with sustainability. Through having continuous innovation in the
products, it becomes easy for companies to satisfy the needs and wants of customers. Further, it
can be said that it is a practice by adopting of which firms can gain a competitive edge over
others by which they can grab higher market share in the market (Sun, 2006). With the help of
research that is being incorporated over the latest launched product of Samsung, that is, Galaxy
S7 Series, with taking into consideration the marketing design and innovation, I have understood
that for making a product successful in the present competitive scenario, firms need to go beyond
their limit for the purpose of attracting customers. It is because; every company is making the
same efforts. Thus, to have some kind of differentiation while appealing to the target market is
necessary (Bughin, Chui and Johnson, 2008). I have learnt from the report that taking these
initiatives help the firms in gaining high market share along with other benefits by which set
objectives can be attained in a better way.
I have become able to understand this scenario by conducting research over the segment,
that is, market of Samsung Galaxy S7 Series with taking the help of which company is boosting
its sales and satisfying the customers to a high extent. Also, through providing those features
which no other firm if offering, Samsung is making its brand image rich and gaining the
advantage of loyalty of customers (Mariadoss, Tansuhaj and Mouri, 2011). In addition to this, I
have also assessed that many new customers are also getting attracting towards this brand
(Galaxy S7 Series) of Samsung which is enhancing its customer base and thus, the profits. In
comparison to last year, many people have switched over to Samsung for the newly launched S7
Series which earlier were the customers of other competitors firms of same industry (Ren, Xie
and Krabbendam, 2009). This study also helped me in gaining knowledge about the tactics which
Samsung is using in order to grab the new market areas with adopting policies which are
different from competitors in order to make existing customers stay with the firm and making
new ones attracted towards it. Company is incorporating innovation in all its products so that
they can become the market leader (Andriopoulos and Lewis, 2010).
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Samsung is gaining a competitive edge of other because of the reason that it is offering
those features to the customers which they need and expect to be there for the convenience and
which other firms are not offering at a cost which is acceptable by the people of target market.
Samsung Galaxy S7 Series if offering battery capacity of 3600 (mAh) and RAM of 4GB which
no other competitor firm is providing (Karniouchina, Victorino and Verma, 2006). This is
making the product different from others and these features are leading it to a great success
which is helping the firm in earning higher profits. Report has show that this product launched
by Samsung has affected the sales of all other products of this firm as well as of other firms.
Besides this, I am able to understand about the concepts of development of need which
organization has created among customers by offering product of distinctive value (Verganti,
2013). Along with that, through offering different schemes and offers, company has grabbed the
attention of customers of new segment. It has helped the firm in boosting the sales volume and
finally, the profits in different operational markets.
Apart from that, I have gained the knowledge about the ways in which firms like
Samsung operate in the real context along with the strategies and tactics that they adopt in order
to beat the competition. Samsung employed strategies of delivering those features in its Galaxy
S7 Series along with various benefits and values which other firms are not offering and which
are in accordance with the needs of customers (Brown and Wyatt, 2015). In fact, this time
company has launched that product which even customers were not expecting and do not need.
However, enterprise has generated the need and demand for it through attractive and innovative
features. This is the reason that I have found innovation to be the most important factor by which
companies can make a different position among all which ultimately leads to increased sales and
thus, the profits and market share over time (Luchs and Swan, 2011). This learning helped me in
increasing my intellectual level as well as now; I am able to apply this knowledge and theoretical
concepts into real world by making further research over the same subject.
Earlier I was aware with the fact that innovation helps company is making itself position
in a differ manner, however, I did not know about the theories and concepts by which innovation
is created to gain lots of benefits in the firm. Along with that, the way in which new customers
can be attracted and their loyalty can be gained has also been learnt by me through studying
about the tactics that firms use (Zeithaml, Bitner and Gremler, 2010). Also, present module
helped me in gaining different sort of skills and competencies with the help of which I can
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perform my job effectually as their proficiencies will help me in the long run. Among all the
learnt skills, analytical ability is the major one which I have gained through reading various
journals and books about innovation and its relation with the success of organization (Kozinets,
Hemetsberger and Schau, 2008). With this, I have become able to make better decisions with
regard to marketing which would help me in achieving the targets effectually.
CONCLUSION
With the help of this report, it can be concluded that innovation is one of the key practice
for a business that plays a significant role in attaining a competitive edge over others. It has been
assessed that design and innovation have gripped the business world and serve as the key
elements in making the marketing function successful. Also, organizations can attain their
objectives in a better way along with gaining sustainability in business through improved design
and putting innovative features in the products. Present report shows the way in which Samsung
has captured the attention of their customers effectually and at a fast pace through its Galaxy S7
Series. It has boosted the market share of company through its effective brand appeal and distinct
and innovative features.
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REFERENCES
Books and Journals
Andriopoulos, C. and Lewis, M. W., 2010. Managing innovation paradoxes: ambidexterity
lessons from leading product design companies. Long range planning. 43(1). pp.104-122.
Baregheh, A., Rowley, J. and Sambrook, S., 2009. Towards a multidisciplinary definition of
innovation. Management decision. 47(8). pp.1323-1339.
Beckman, S. and Barry, M., 2009. Design and innovation through storytelling. International
Journal of Innovation Science. 1(4). pp.151-160.
Bloch, P. H., 2011. Product design and marketing: reflections after fifteen years. Journal of
Product Innovation Management. 28(3). pp.378-380.
Brown, T. and Wyatt, J., 2015. Design thinking for social innovation. Annual Review of Policy
Design. 3(1). pp.1-10.
Bughin, J., Chui, M. and Johnson, B., 2008. The next step in open innovation. McKinsey
Quarterly. 4(6). pp.1-8.
Feser, E., 2008. 11. On building clusters versus leveraging synergies in the design of innovation
policy for developing economies. The Economics of Regional Clusters: Networks,
Technology and Policy. p.185.
Jugulum, R. and Samuel, P., 2010. Design for Lean six sigma: A holistic approach to design and
innovation. John Wiley & Sons.
Karniouchina, E. V., Victorino, L. and Verma, R., 2006. Product and Service Innovation: Ideas
for Future Cross‐Disciplinary Research*. Journal of Product Innovation
Management. 23(3). pp.274-280.
Kozinets, R. V., Hemetsberger, A. and Schau, H. J., 2008. The wisdom of consumer crowds
collective innovation in the age of networked marketing.Journal of
Macromarketing. 28(4). pp.339-354.
Luchs, M. and Swan, K. S., 2011. Perspective: The Emergence of Product Design as a Field of
Marketing Inquiry*. Journal of Product Innovation Management. 28(3). pp.327-345.
Mariadoss, B. J., Tansuhaj, P. S. and Mouri, N., 2011. Marketing capabilities and innovation-
based strategies for environmental sustainability: An exploratory investigation of B2B
firms. Industrial Marketing Management. 40(8). pp.1305-1318.
Parasuraman, A., 2010. Service productivity, quality and innovation: Implications for service-
design practice and research. International Journal of Quality and Service Sciences. 2(3).
pp.277-286.
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Prajogo, D. I., McDermott, P. and Goh, M., 2008. Impact of value chain activities on quality and
innovation. International Journal of Operations & Production Management. 28(7).
pp.615-635.
Ren, L., Xie, G. and Krabbendam, K., 2009. Sustainable competitive advantage and marketing
innovation within firms: A pragmatic approach for Chinese firms. Management Research
Review. 33(1). pp.79-89.
Sun, B., 2006. Invited commentary-technology innovation and implications for customer
relationship management. Marketing Science. 25(6). pp.594-597.
Verganti, R., 2011. Radical design and technology epiphanies: a new focus for research on
design management. Journal of Product Innovation Management. 28(3). pp.384-388.
Verganti, R., 2013. Design driven innovation: changing the rules of competition by radically
innovating what things mean. Harvard Business Press.
Ward, A., Runcie, E. and Morris, L., 2009. Embedding innovation: design thinking for small
enterprises. Journal of business strategy. 30(2/3). pp.78-84.
Zeithaml, V. A., Bitner, M. J. and Gremler, D. D., 2010. Services marketing strategy. John Wiley
& Sons, Ltd.
Online
Galaxy S7 edge. 2016. [Online]. Available through: <http://www.gadgety.co.il/151530/samsung-
galaxy-s7-edge-announced/>. [Accessed on 30th April 2016].
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