March 8, 2015

1. March 8, 2015 Business implications of my research project for design agencies

2. Introduction • An interconnected (and interactive) world provides many opportunities for innovation • Important innovation often involves spanning categorical boundaries resulting in hybrid combinations • The iPad, a laptop? a netbook? a smart phone? all of the above? or a new category? • But, there is a risk with hybrid combinations! • Spanning categories can create confusion, misunderstanding, and uncertainty • First iPadreview: “The big problem I had is trying to understand what the iPad is for: the answer, it’s for everything. It attempts to do almost everything that your laptop can, while also offering almost everything your smartphone can do.”

3. Research project • As spanning categories can have negative consequences, I argue that design can be an essential element to reduce or eliminate the negative consequences of spanning categories. • By deliberately using or not using the typical design elements that represent a specific category “Category markers”, a hybrid combination can be designed in such a way that it will increase market success by how it is perceived by the market. Spoiler Racing stripes Lowered bumper

5. Different ways to use category markers when developing and designing hybrid combinations: ‘Dressing up’ the hybrid as a better version of an existing category The first car looked like a carriage Creating a clear combination, the market will identify both categories FM radio alarm clock Creating a completely new category A wristband that measures your daily activity and inspires you to get a healthier lifestyle by means of an iPhone app

6. Findings Interview • Designers understand and are aware of category markers • Designers would use category markers in hybrid combinations differently with respect to the market environment. For example: • When combining an established product category with an innovative and emerging category, designers would use the category markers of the well established category • While a combination two emerging product categories will be designed as a new category Case studies • Case studies on hybrid combinations indeed showed that the extent to which category markers should or should not be used – in order to create market success – depends on the market environment • Innovative and emergent market environments provide more freedom for designing hybrids as new categories (i.e. using no or few category markers)

7. Implications • Tools for identifying the category markers of specific product or service categories • Knowledge about reducing the consequences of category spanning by deliberately applying category markers – depending on the market environment – in such a way that the hybrid is perceived as • Category A • Category B • A combination of A and B • Or as a new category

8. Predictions for the coming years • More and more category spanning through new technologies and combining products with services • Risk of possible negative consequence for economic performance • It will become more difficult to successfully position innovative hybrid combinations • DAs can create value for their clients by guiding these categorical transgressions in an efficient way by using knowledge how to use category markers