Dominant design

Dominant design
See also
Disruptive business model Brand innovation Quality Function Deployment Innovation models Finished product Stage-Gate process Concept engineering Designed quality Methods in management

Dominant design relates to the concept that identifies main technological features that are perceived as de facto standard. Introduced by Utterback and Abernathy back in 1975, the dominant design has to be respected on the market if the competitors and innovators want to make a significant impact (J. M. Utterback 1994, p. 24). For example, when new operating system is introduced, many companies will find alternatives or updated versions (e.g. Microsoft – Windows, Apple Inc. – Mac OS and IBM – OS/2). Ultimately, there might be a design that becomes accepted as industry standard (e.g. Microsoft Windows). Therefore, the dominant design enforces standardization so it is possible to seek additional complementary economies for the product (J. M. Utterback, F. F. Suárez 1993).

Dominant designs are not claimed to be better than other designs; they just have set of features that may come from technological path-dependence rather than a strict customer desire. Such example is QWERTY keyboard, which was introduced to solve the problem of limitations of the mechanical typewriter; however, currently it is chosen over other keyboard designs.

Dominant designs are frequently recognized only after their emersion. It is common for the dominant design to be recognized only when it acquires more than 50% of the market share. However, it is a better practice to study particular product innovations over the time in order to determine which ones are sustainable (P. Anderson, M. Tushman 1990, p. 604-635).

Origins of the concept

The concept of dominant design was proposed by William J. Abernathy and James M. Utterback in 1975. It emerged from studies on industrial innovation. At the beginning of market evolution, high market and technical uneasiness resulted in various product designs. It was observed that at some point one product design was preferred over the others. The dominant design not necessarily incorporates the best technical performance, sometimes it is simply driven by technical possibilities and commercial interests among suppliers, users and competitors. Technological boost emerged high competition between alternative designs, which resulted in a period of design variation and ferment. From this evolutionary perspective, the dominant design can be perceived as the transition point between the periods of variation and selection. The studies recorded the dominant design concept in various categories, including typewriters, TVs, automobiles, electronic calculators, etc. However, the dominant design is not observed in all product categories, e.g. supercomputers and video games (E. Ames, N. Rosenberg 1977). Technological evolution has been perceived for a long time as a random process with a path-dependency that contradicts a systematic modelling efforts. However, this view has been challenged by recent studies claiming that product category is a function of its product-market characteristics (R. Agarwal, B. L. Bayus 2002, p. 1024-1041). As a result, a product category's product market characteristics may influence its evolution, having impact on the probability and the timing of a dominant design in this category (P. Anderson, M. Tushman 1990, p. 604-635).

Dominance process flow

There are few characteristic milestones by which a particular design achieves the dominance:

• The company or research organization conducts R&D to release a new product or to improve an existing one.
• The prototype model is created which triggers the review of feasibility of the research programs of the competitors.
• The commercial product is launched exposing consumers to new architecture. Usually it is dedicated to a small group of users. This milestone is considered to be a last call for the competitors to review and finalize their research projects.
• A clear leader emerges from early market.
• Ultimately, there is one technological trajectory that reaches dominance over the others and it is the final milestone in the dominance process (F. F. Suárez 2003, p. 9-11).

Examples of Dominant design

• Automobile: The dominant design for automobiles is the four-wheeled, gasoline-powered, internal combustion engine. This design has been the standard since the early 20th century and is still the most popular option today.
• Computers: The dominant design for computers is the desktop PC, with a processor, memory, hard drive, monitor, keyboard, and mouse. This configuration has been the de facto standard since the early 1990s and is still the most popular option today.
• Mobile Phones: The dominant design for mobile phones is the touchscreen smartphone. This design has been the standard since the early 2010s and is still the most popular option today.
• Digital Cameras: The dominant design for digital cameras is the point-and-shoot design, with an LCD screen, lens, and shutter button. This design has been the standard since the late 2000s and is still the most popular option today.

Advantages of Dominant design

A dominant design provides a number of advantages, such as:

• Improved product quality – When a dominant design is adopted, it often implies that the design is superior in quality to what had been previously available. This is because the accepted design is the one that best meets the needs of the market.
• Increased efficiency – A dominant design can lead to increased efficiency in production, as companies are able to quickly and easily replicate the accepted design. This also reduces costs as firms are no longer required to innovate and experiment with different designs.
• Reduced cost – Products based on the dominant design are typically more affordable than those that require innovation and experimentation.
• Improved compatibility – A dominant design ensures that products are compatible with each other, making them easier to use.
• Greater customer satisfaction – Customers are more likely to be satisfied with products that are based on a dominant design as it is likely to meet their needs and expectations.

Limitations of Dominant design

The limitations of the dominant design include:

• Inflexibility: The dominant design is inflexible and does not allow for much innovation. Companies are limited in how much they can customize the design and must adhere to the design that is accepted as industry standard. This can limit their competitiveness in the market.
• Cost: As the dominant design is accepted as the standard, competitors may have to pay more to customize their products to meet the industry standard. This can increase the cost of production and limit the potential of the product.
• Slow innovation: As the dominant design is accepted as the industry standard, competitors may be slow to innovate and keep up with the changing trends. This can lead to companies losing out on potential market share.
• Lack of variety: As the dominant design is accepted as the industry standard, competitors may be limited in the types of products they can produce. This can lead to a lack of variety and stagnation in the industry.

Other approaches related to Dominant design

• Evolutionary Economics: Evolutionary economics is an approach that focuses on the dynamic, evolutionary process of change in the economic system. It assumes that economic agents and institutions interact with each other and adapt in order to survive, and that their actions are driven by the search for profit or utility.
• Path Dependence: Path dependence is a concept that examines how the history of a particular system or process can influence its future development. It considers the idea that decisions made in the past can affect the behavior of the system in the present and in the future.
• Industry Life Cycles: Industry life cycles refer to the different stages that an industry can go through during its development. These stages include growth, maturity, decline, and transformation.
• Platforms and Standards: Platforms and standards are both forms of technology that are used to facilitate the exchange of information. Platforms refer to the underlying infrastructure that enables the development of applications, while standards refer to the guidelines and conventions that are used to ensure interoperability between different systems.

In summary, dominant design is an approach that identifies main technological features that are perceived as de facto standard. Other approaches related to dominant design include evolutionary economics, path dependence, industry life cycles, and platforms and standards. These approaches provide insight into the dynamic, evolutionary process of change in the economic system and examine how the history of a particular system or process can influence its future development.

References

• Agarwal R. & Bayus B. L. (2002). The Market Evolution and Sales Takeoff of Product Innovations, Management Science.
• Ames E. & Rosenberg N. (1977), Technological Change in the Machine Tool Industry, 1840-1910, in Perspectives on Technology ed. N. Rosenberg, Cambridge University Press.
• Anderson P. & Tushman M. (1990). Technological discontinuities and dominant designs: a cyclical model of technological change, Administrative Science Quarterly, 35(4).
• Koski, H., & Kretschmer, T. (2007). Innovation and dominant design in mobile telephony. Industry and Innovation, 14(3).
• Levin R. C., Klevorick A. K., Nelson R. R., Winter S. G. (1987). Appropriating the Returns from Industrial Research and Development, Brookings Papers on Economic Activity, 3.
• Suárez F. F. (2003). Battles for technological dominance: an integrative framework, Research Policy.
• Utterback J. M. (1994) Mastering the Dynamics of Innovation, Harvard Business School Press.
• Utterback, J. M., & Abernathy, W. J. (1975). A dynamic model of process and product innovation. Omega, 3(6).
• Utterback J. M. & Suárez F. F. (1993). Innovation, competition, and industry structure, Research Policy, 22(1).

Author: Katarzyna Mamak