Comprehensive Capability Model for Managing Business Driven Innovation through the use of Design Quality Scorecards

Abstract

Identifying business opportunities by matching an organization's internal capabilities with its external environment is to a large extent about applying the right framework to risk and return. This paper first proposes a new framework, the Market-Technology Risk Matrix (MTR matrix) and a Design Balanced Scorecard method based on Design Quality Criteria (DQC), a set of nine criteria derived from auditing design awards and design briefs worldwide for matching an organization's capabilities and its strategic environment to innovation type. By following a four-step process the connection between an organization's cultures, strategic environment, innovation strategy and design metrics can be established and communicated through Design Balanced Scorecards. We then outline the design opportunities available, corresponding to Incremental and Breakthrough Innovation strategies, as well as relevant metrics for managing their implementation. Finally, we illustrate both types of innovation strategies with examples from two corporations - Apple Inc. and Samsung Electronics with contrasting capability. In conclusion, an organizations' risk-attitude is at the core of building competitive advantages and informs the relevant design metrics for managing innovation performance. The paper thus contributes to the domain of decision-making and in particular to decision-support literature.