Design-Driven Innovation (DDI) in Superyacht Design SUMMARY Luxury has a transcendent quality that is related to a client’s aspirations. Luxification refers to the continual need for designers to evolve the perception of luxury in their design process, in order to counteract devaluation through reinterpretation of their design language into smaller, or higher production volume vessels. To facilitate luxification, boat designers must implement a design-driven innovation strategy, as clients do not buy products but meanings. They use objects for profound emotional, psychological, and socio-cultural reasons as well as utilitarian ones. Designers should therefore look beyond features, functions and performance and understand the real meanings users give to things. Design-driven innovation involves a radical innovation of meaning; it has been a well established design approach in product design with companies engaging in emotional design for the past 16 years. The interplay between design-driven and technology-push innovation is the basis of some of the most successful products such as the Apple iPod. This document presents three boat design concepts developed through design-driven and technology-push innovation to achieve a ‘technological epiphany’. The first design employs domotics to adapt the functionality of exterior space allowing the vessel to have a more minimalistic approach to interior design; as a result a more luxurious interior is created with the feel of a larger vessel. The second concept transformed the meaning of what a charter vessel. By offering a modular interchangeable interior which is stored and transported in TEUs, the charter client is provided with the experience of a bespoke interior. The third design demonstrates significant use of structural glass to immerse the user in the marine environment with the feel of a luxury hotel upon the water. 1. INTRODUCTION An appreciation of pleasure and luxury is fast becoming of primary importance to both the consumer and the design industry alike. Consumers want design functionality and usability as well as products that elicit other feelings such as luxury and pleasure, as well as satisfying more emotional needs. Boats, and particularly super yachts represent the higher echelons of luxury goods; they are synonymous with the lifestyle of the rich and famous. They are also marketed as such with brand association, new market opportunities, such as fractional ownership and chartering, open up boats to a wider market. Contemporary luxury delves into a new consumer psychology that transcends the boat as a product, to a new level of enhanced experience, deeper meaning, richer enjoyment, and more profound feelings. Boat owners and charter clients are seeking new experiences and valuing them more, rather than pursuing materialism for its own sake. An understanding of contemporary luxury is therefore critical to inform an effective design process. 1.1 LUXIFICATION Due to the evolving nature of consumers’ sense of luxury, Danziger [1] proposed the following three strategic design opportunities in today’s luxury marketplace, that can be implemented individually or in combination: The only design strategy that can effectively propel a brand into the future is to continually enhance the intrinsic luxury value of the products, regardless of product position in the market. This upward perpetual motion is to be driven by a continual reinvention of the brand, moving more up-market by adding more luxury value. Shifting down-market by taking the essential luxury brand proposition to a more moderate price point. Extending the brand across new product categories while maintaining the brand’s core emotional values. Luxury is introduced and embraced by the affluent; eventually it is translated and reinterpreted by the mass market. Boat Designers must engage with the concept of luxury in order to discover new and different ways to give expression to consumer’s evolving fantasies and desires of luxury. Luxification is the continual need for designers to enhance the intrinsic luxury value of their design DNA to counteract the devaluation by mass market reinterpretation [1]. Luxury has a transcendent quality related to a consumer’s aspirations and dreams. It exists in the fantasy realm of the consumer; once it is attained the extraordinary is transformed into the ordinary. The consumer then begins to desire something even more luxurious. Thus luxury is fundamentally about the unattainable, this is referred to as the metaphysics of luxury [1]. It is about aspirations and dreams, and not about the physical or material reality. Boat Designers, with the support of marketing strategists, need to connect with these aspirations, by profiling the specific client, or range of clients, through the use of personas and cultural research. 1.2 DESIGN-DRIVEN INNOVATION To facilitate luxification, boat designers should consider implementing a design-driven innovation strategy as is often employed within product design. Verganti [2] reported two major findings relating to the strategy that have characterised the management literature in the past decades. The first being radical innovation a major sources of long-term competitive advantage, generally involving radical technological innovation. The second that people do not buy products but meanings. People use things for profound emotional, psychological, and sociocultural reasons as well as utilitarian ones. Analysts have shown that every product and service in consumer as well as industrial markets has a meaning [2]. Firms should therefore look beyond features, functions and performance, and understand the real meanings users give to things. The common assumption is that meanings are not a subject for innovation. Meanings have intensively populated the literature on marketing and branding [2]. User-centred perspectives have recently provided powerful methods for understanding how users currently give meaning to existing things [3]. Innovation has focussed on two strategies: quantum leaps in product performance enabled by breakthrough technologies, and improved product solutions enabled by better analysis of users’ needs. The former is the domain of radical innovation of technology push, and the latter of incremental innovation of market pull (see Fig.1). Figure 1: The strategy of design-driven innovation as the radical change of meanings [2] A third strategy, design-driven innovation involves a radical innovation of meaning. Here, designers propose a different and unexpected meaning, for example Artemide in redesigning a lamp rather than developing a more beautiful object produced a light that makes you feel better. This design meaning was what people were actually waiting for. Design-driven innovation is at the heart of numerous success stories of products and firms. [4] Alessi in 1993 proposed a radical new meaning for their kitchenware developed through years of serious research: household items as objects of affection, as substitute teddy bears for adults. Alessi were talking to our inner child. During the past 15 years this vision has inspired many companies to engage in emotional design. The design-driven innovations introduced by firms have not come from the market but have created huge markets. They have generated products, services and systems with long lives, significant and sustainable profit margins, and brand value, spurring company growth [2]. 1.3 EMOTIONAL DESIGN People gain pleasure from products that meet their functional and supra-functional needs, as defined in the most comprehensive terms. Indeed, now that adequate product functionality is the norm, supra-functional factors are being recognized as more important. Emotional bonding, symbolic representation, tribal connections, subculture references, and so on all form part of the language defining product personality and product semantics [5]. People relate to products in individual and interesting ways. Different people relate to the same product in their own particular way, depending upon its characteristics and their own. Material possessions serve as symbolic expressions of who we are. The clothes we wear, the household items we buy, the car we drive, all enable us to express our personality, social standing, and wealth. The nature of a product can be described as a product personality, and it is this, that determines the relationships that users develop with different products. [6]. Gender and product personality traits impact upon perceived functional (utilitarian) performance of a product, but it is also affected by supra-functional factors (appearance, symbolism, and sensorial experience). These supra-functional factors interact with the functional aspects, and with the users themselves in a variety of ways. For this interaction to be satisfying for the user, the various aspects have to be complimentary, consistent, coherent, and mutually reinforcing, or the outcome will be confused and unfulfilling. Not all of the relationships that people have with the products that they own will be satisfying—there are many ways in which a product and the user come into contact. If the user perceives a product is not made for them, psychological barriers can develop. Fortunately, there is much to be learnt from user-product relationships that are less than ideal. Some products may be obviously gendered in a way that connects with potential users, whilst others may be neutral. Some elaboration of terminology may be helpful here. Products can be neutral, or female (evoke stereotypes of women) or feminine (associated with use by women), or male (evoke male stereotypes) or masculine (associated with use by men) [7]. The distinction is a subtle, but important one, particularly in the case of cars, the most complex product most of us use. But products do not have to be gendered, or exhibit gender characteristics at all, and the degree to which these characteristics are demonstrated can also vary. As with human sexuality, the spectrum between the extremes is broad and diverse. The emerging interest in the emotional domain of design has highlighted peoples’ need for products with personalities that they can bond with [7]. 1.4 TECHNOLOGICAL EPIPHANY The interaction between radical innovation of meanings and radical innovation of technologies can transform the competition within an industry. This is represented by the upper-right corner of the map of innovation strategy illustrated in Figure 2, where technology-push and design-driven innovation overlap. Figure 2: The interplay between technology-push and design-driven innovation [2] Although these two strategies do not conflict, companies tend to implement only one of them. For example Alessi are leaders in the radical innovation of meanings, but are follower in technological innovation. The two strategies are complimentary as technological and socio-cultural models are inextricably linked and evolve together in innovation cycles. The interaction between design-driven and technology-push innovation is the basis for successful products such as the Apple iPod. This example shows that when a novel technology emerges, conservative companies simply substitute it for an old one, without generating a new design meaning for the product. A new technology often hides a significant meaning, which when revealed achieves a technology epiphany, thus becoming a market leader [2]. The process of design-driven innovation is an exploratory research project, which aims to create an entire breakthrough product family or new business. It occurs before product development (Figure 3). It is not the fast creative brainstorming sessions that are typical of concept generation but a design investigation similar to technological research.[8] Figure 3: Design-driven innovation as research [8] In essence, it is the development of a design scenario through engaging with a range of interpreters in technology and cultural production. Knowledge is generated from immersion with the design discourse of the interpreters groups. The process can be structured or unstructured and is dependent upon the nature of the relationship of the client with the interpreters. A structured approach would be the design direction workshops proposed by Barilla [2]. The workshops are aimed at sharing knowledge from the design discourse and identifying new meaning and languages. The workshops have the following activities: envision; share; connect; select; embody. Envision involves producing insights. Key interpreters who have a hinterland of research are asked to envision the implications of their research and design explorations in the context of the project. They give form to their insights through various media: metaphors; analogies; stories; prototypes. The process can take weeks or months. It involves the creation of a new scenario for the product, rather than the fast generation of several creative ideas. The next stage in the process involves sharing insights; the results of the previous activity are discussed and enriched through modification. The connect stage involves building possible design scenarios by finding connections between participants proposals. This will result in several dimensions by which the participants’ insights can be organised. Using the two most significant of these, allows four key scenarios to be identified. The selection process involves using assessment criteria to evaluate the product design dimensions. An example of this is Alessi's "Formula for success", where there are four factors: functionality; cost; communication/language; sensation/memory/imagery. The latter two factors are specific to design-driven innovation. Communication/language refers to the product's symbolic meaning and to the social motivation that leads people to purchase it. Sensation/memory/imagery refers to the product's emotional and poetic meaning and to the intimate motivations that lead people to purchase it [2]. 1.3 LUXURY AND SUSTAINABILITY Superyachts offer a unique opportunity to display power and wealth, but considering that the shortest of the top 25 superyachts in 2009 was 91m there is a considerable carbon footprint associated with the use of such vessels. The progressive development of increasingly larger vessels is the predictable consequence of the competitive nature of the owners operating on the assumption that the largest vessel, with the biggest budget will acquire a higher status. Green envy, offers the most competitive of owners a new edge over their rivals. The philosophy behind green superyacht design is to give the owner the perception of being more socially responsible, as superyacht owners are typically intelligent and aware of how they are perceived by the world. The production costs are expected to be 15-20% higher than conventional, but this will be offset against lower maintenance costs and an enhanced resale value. The added value of the RINA (Registro Italiano Navale) Green Star award for environmental efficiency will become even more important as governments begin to enforce the regulations that have already been imposed on marine sanctuaries around the world. On this basis, it is believed that over the next few years yacht owners will begin to compete on the basis of their environmental footprint. Lurssen set a new green benchmark in 2005 with the launch of Ice in response to the Kyoto protocol and the use of carbon offsetting is a developing green business opportunity. Environmental sensitivity is now going to be pivotal to the future design and servicing of superyachts. This will reflect a shift from conspicuous consumption to environmental consciousness [9]. Ethereal, a 58m Ketch designed by Ron Holland embraces the green superyacht design philosophy. This is a misnomer as no superyacht regardless of its energy efficiency could claim to be green. This one for instance has five engines despite being a sailing yacht. It has demonstrated that hybrid propulsion systems and deep research into features such as lighting and insulation can significantly reduce power consumption. The design of Ethereal was driven by research started with a series of brainstorming sessions designed to penetrate the depth of the subject matter. This resulted in the yacht being designed so that fuel cell technology could be retrofitted. Solar sensitive sail cloth was also identified as a future technology that could be applied. Instead highly efficient lithium ion phosphate batteries were used to power the propulsion system and all the high demand hotel systems including air conditioning, galley and laundry. She can maintain 11knots for almost three hours using her batteries alone. Operating in battery mode the emissions and fuel consumption are reduced. The most significant energy savings are achieved by reducing power requirements in the hotel services on board. Particular focus was on the energy consumption of the air conditioning one of the biggest users on the yacht, looking at ways of reducing heat especially heat produced by the lighting system. There are over 300 lights in the accommodation; of the energy they consume, conventional lighting technology converts 90% of the energy into heat. Advanced LED technology was developed to produce lighting which was highly efficient producing very little heat. An innovative adaption of refrigerated truck insulation to insulate the cabin reduced the energy requirement even further. The application of light-switchable glass to darken the hatch and skylight glass on demand, keeps a significant amount of heat out of the interior if sunlight levels are high. The overall effect of improved insulation and heat reduction has resulted in the need for much smaller generators, thereby reducing emissions and fuel consumption [10]. 1.4 LUXURY AND DOMOTICS Domotics refers to the efficient integration of the electrical equipment and systems in a boat such that they provide optimum comfort, convenience, safety, security and energy management [11] Domotics involves the implementation of control technology in a design to enhance the user experience and/or sustainability of the vessel. It may include lighting control, the control of heating ventilation and air conditioning and security/surveillance systems, thermal imaging for navigation and rescue, and changing the user environment for different events. CRN have introduced a new integrated entertainment, information and home automation "myOlos" on two maxi yachts of the CRN 43 line. The "myOlos" was designed and developed for boats over 24 meters. The partnership between CRN Videoworks and Intel continues to invest in research and development to create integrated systems with the goal of increasing usability of audio-video and home automation. The system allows the user to manage all of the instruments, onboard entertainment and video surveillance through a single device, with the aim of enhancing the user interaction experience provided by the boat. Functionality enables the user to check the safety of the boat, chat with friends, watch a film or play video games, and broadcast music across the boat. Ease of use is ensured by a carefully designed graphic interface. The wireless connection allows the owner to move freely throughout the boat. A remote diagnostic system allows secure entrance to the system through the internet to allow rapid update to software or correct malfunctions. '"MyOlos" stems from the increasingly common need of users, to manage their own boat in complete autonomy while enjoying advanced multimedia entertainment systems. Domotics, which is already a reality in many design contexts, is becoming pivotal in the superyacht industry; it constitutes a radical change in the meaning of the product by enhancing the user interaction with the environment. It is a strategic lever for the industry in terms of luxification. ''The collaboration with CRN and Videoworks makes us particularly proud, as allowed us to develop a system of home automation and entertainment truly unique result of a shared vision of excellence focused on innovation as the only answer", said Frank Lombardi, Consumer and SMB Channels Manager Intel Italy and Switzerland. "This collaboration in integrating systems contributes to evolve and innovate a very important industry such as traditional luxury yacht", said Maurizio Minos, Director Technical Videoworks [12]. 1.5SUPERYACHT TECHNOLOGICAL INNOVATION Over the last few years, most new superyacht builds include transparency as a design feature; glass is used as a component part of the structure, a technology transfer from the automotive industry. There is an anticipation of increased demand for frameless windows, to be glued onto the superstructure [13]. In both hull and superstructure, glass has become a creative element for designers, with the objective of giving the owner/guest/client a more direct experience of the sea, by integrating the interior and exterior experience. The glass walls on the superstructure of the Wallpower are an example of a superstructure breaking the barrier between interior and exterior [14]. Typical applications involve large windows in the hull to provide illumination and panoramic views. A current trend in styling is the variable geometry yachts, with the objective of bringing the user closer to nature in a protected environment. These are domotic systems of electrical or hydraulic platforms with electronic control, which gracefully glide into position at the touch of a button. For smaller vessels this may consist of extendable bathing platforms, for superyachts it involves movable terraces and platforms. These added living spaces are appearing on both sailing and motor superyachts, the ‘wow factor’ ranges from pop-out terraces to the sundeck converting to a helipad. For example, the Octopus launched in 2003 by Lurssen, has five open-out terraces on each side and a helipad that rises from the pool [15]. Large stern beach clubs can be constructed from several platforms, and gull wing doors a feature from the automotive industry, are a design feature that currently facilitate the luxification process. with the use of glass immersing the user in the environment. This experience is reinforced by the use of a retractable sunroof directly above the bridge, which is shown the back ground of Figure 4. The sun loungers at the aft of the main deck convert into a dining area through the use of domotic systems, as shown in Figure 6 and Figure 7. This dual functionality of the aft deck space combined with the interior design meaning, constitute a technological epiphany facilitated by the domotic system allowing the seating area to convert into a dining area. Figure 4: Superyacht side elevation view Figure 5: Bridge and lounge interior view from aft deck Figure 6: Sun lounging area on aft deck 3. LUXURY INFORMED DESIGN CONCEPTS The design concepts presented in this paper are final year projects of students on the undergraduate Boat Design course who graduated in 2010. These design concepts demonstrate a focus on design-driven innovation informed by a significant body of design-driven and technological research. 3.1 An Adaptive Exterior Space The first design uses domotics to adapt the functionality of an exterior space. This offers the vessel a more minimalistic approach to interior design making it seem more luxurious,. The new design meaning is the association of luxury with space normally attributed to a larger vessel size. The side profile of the vessel is shown in Figure 4, the design language of the superstructure emulates that of a much larger vessel. The minimalistic spacious interior of the upper deck is shown in Figure 5, Figure 7: Aft deck area demotically converted for dining 3.2 Modular Interchangeable Interior The second design concept changed the meaning of what a charter vessel could be. The exterior is shown in Figure 8. By having a modular interchangeable interior which is stored and transported in TEUs, it offers charter clients the experience of a range of bespoke interiors. This idea has the potential of developing a new product family of superyachts, in a market sector between full ownership and charter. It could be fractional ownership with a bespoke interior fitted during use, or offer an enhanced level of luxury through the charter client selecting aspects of the interior for a given vessel. In port, the front doors of the containers are opened and secured in place, and the safety catch mechanism at the front of the container is deactivated and the loading mechanism activated. The container is then hoisted up by a dock side crane where it is positioned into place by a series of positioning lasers and electromagnets that have been pre-built into the front of the container. Once in place, the container is held steady by the previously mentioned systems. The hydraulic loading mechanism is then activated with the hydraulic arm extending into the container and latching onto an attachment point at the rear of the structural frame of the container. Once locked into place the arm is then retracted and the container pulled onto the vessel along the tracked system and locating wheels that are attached to the bottom of the rooms (Figure 9). Once aboard, the rooms are locked into place using pneumatic locating pins and the individual electronic systems and control boards are connected to the rest of the vessel via the access hatches that are built into the corner of each container room. Figure 10 shows a sectional view of the vessel with the interior modules in place. The use of the interior module boundaries as an integral part of the design language can be seen in Figure 11. Figure 8: Modular interior superyacht Figure 11: Rendering of interior space 3.3 Structural Glass Immersive Experience The third design shows a significant use of structural glass in both the hull and superstructure. The result is an immersion of the user in the marine environment with the feel of a luxury hotel upon the water. The significant amount of glass used in the exterior can be seen in Figure 12. The owner's suite in Figure 13 shows the light penetrating through the sunroof and the continuous side windows. To manage the transmission of light and brightness of the room a domotic control system is required to polarise the glass depending on brightness of sunshine. The lounge bar area shown in Figure 14 shows the interior lighting designed in sympathy with the large exterior window areas. The design meaning is an immersive experience of the marine environment. Again the change of design meaning and domotics technology constitute a technological epiphany. Figure 12: Exterior with large areas of structural glass Figure 9: Modular interior unloading from TEU Figure 10: Sectional view of vessel showing interior modules The structured model of design-driven innovation explained earlier in the paper is an industrial based framework. Boat Design students evolve their design practice and engagement with design-driven innovation through a less structured action based learning approach. As students develop within their community of practice with automotive and product designers, their exposure to potential design interpreters is significant due to the diversity of design activity within the studio. Their network of industry contacts developed during a sixmonth professional placement further enhances their design insight and access to an experienced range of interpreters. Figure 13: Owner's suite with significant window areas 5. CONCLUSIONS Luxification and design-driven innovation are inextricably linked, as the optimisation of technology innovation and the new meaning associated with it evolve the concept of luxury. The marine industry is designing user experiences not just products, the potential for transfer of innovation of design-driven innovation from the product design industry to the boat design industry is an ongoing process. 6. Figure 14: Salon integrating large window areas 4. DISCUSSION While each design concept proposes a very different solution to address user needs in terms of luxury, they have all engaged in design-driven innovation. Domotics and sustainability are becoming the new currency of luxury in superyacht design as part of the luxification process, establishing new meaning and experiences for users. Design-Driven Innovation is about creating future design scenarios and not just meeting current user needs. To qualify the technological epiphany status of the design concepts presented, a number of superyacht design consultancies who work closely with Coventry University were used to review the concepts. They were impressed with the engagement in design-driven innovation, and while they perceived the concepts to constitute the definition of a technological epiphany, they found it challenging to discriminate between the levels of achievement of each concept. Thus, raising the issue of applying an assessment criteria to design-driven innovation in marine design, such as Alessi's "Formula for success". The authors will be collaborating with the EBDIG superyacht design network in future research to elucidate an assessment criteria. This will be a challenging research activity given the bespoke nature of superyacht design. ACKNOWLEDGEMENTS The authors wish to thank the following Coventry University Industrial Design graduates of Boat Design who's final year projects constitute the design case studies presented in this document: Timothy Thompson (Modular Interchangeable Interior); Michael Kramer (Structural Glass Immersive Experience); Matthew Wilkinson (Adaptive Exterior Space). 7. REFERENCES 1. DANZINGER, P.,' Let Them Eat Cake: Marketing Luxury to the Masses — as well as the Classes', p1-8, 2004. 2. VERGANTI, R., Design-driven innovation: changing the rules by radically innovating what things mean, Harvard Business School Publishing Corporation, ISBN 978-1-4221-2482-6, 2009. 3. VERGANTI, R. Changing the rules of competition by delighting customers. Ivey Business Journal. March / April 2010. http://www.iveybusinessjournal.com/topics/strategy/chan ging-the-rules-of-competition-by-delighting-customers 4. 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