Global Strategy - blog

Authors:Jaakko Aspara (2008).Download file: 'Creating and Capturing Design Value' Note that the article starts on page 28 of the linked volume.

Abstract

Design research, as well as related fields such as consumer and marketing research, have lacked comprehensive conceptualizations of how the use value of the products of an individual company translates into economic value for that company.

This article makes a contribution by providing one such conceptualization, by adopting and applying the theory of value creation–value capture prevalent in (strategic) management research. Concerning the use value from products, the distinction between private value vs. social value is applied, as well as between (instrumental) value that products provide by enabling valuable activities vs. sign or identity value of products. Attention is paid to the fact that a company’s products can create value and face (value-price) competition at different levels, notably at product category, product (model), and product variant (customization) levels. Product design is implicated in the framework with the prescriptions that a company should design products for superior value-price combination and for inimitability with respect to different levels of competition, as well as for manufacturability and customizability with respect to cost-efficiency.