In 1984, Apple introduced the Macintosh with a revolutionary idea: computers weren’t just for engineers and scientists – they were ‘tools for the mind.’ That shift in meaning transformed an entire industry. Through design-driven innovation, Apple didn’t just create a better computer; they reimagined what computing meant to society.
Transforming industries through meaning
This same principle of meaning transformation explains why we still use candles even though we don’t need them for light anymore. When Yankee Candle revolutionised the market in 1969, they didn’t just improve the product – they transformed candles from mere light sources into lifestyle products that shape the mood and atmosphere of our homes. Through scent and design, they created an entirely new meaning for an age-old product. This shift in meaning gets to the heart of design-driven innovation.
Our third article in the “Innovation Capsules” series explores this powerful approach to innovation, introduced by Roberto Verganti. Unlike traditional innovation methods that focus on fulfilling immediate user needs or making incremental improvements, design-driven innovation seeks to create and propose new meanings that resonate with evolving cultural and social contexts.
“This kind of innovation tends to be more radical because people hardly help you to envision new possibilities,” explains Verganti. “Design is making sense of things. My model is that you can improve the technology and performance of a product, but you can also change its meaning.”
Design-driven innovation applied to banking: From transactions to experiences
Remember when banking meant queuing in marble-floored branches, clutching paper slips and waiting to speak to a teller? Today, according to Eurostat’s Digitalisation in Europe – 2024 edition, 70% of internet users in the EU used online banking services in 2023, compared to just 55% in 2013.
Yet surprisingly, this shift isn’t just about digital convenience – it’s about something far more profound: a complete reimagining of what banking means in our lives. Traditionally, banks were viewed as places to safely store money, access loans, and manage financial transactions. But imagine a bank that’s not just a stuffy institution, but rather a “Hitchhiker’s Guide to the Galaxy” – a dynamic, customised resource that evolves with your needs and helps you make sense of the financial universe in an engaging, gamified way.
This parallel with Douglas Adams’ famous guide is no mere coincidence. Just as Swatch famously reframed timepieces as “fashion accessories” rather than precious jewels for collectors, banks can leverage powerful metaphors to reposition themselves in the minds of consumers. By shifting their meaning from transactional institutions to “life planning partners,” banks could introduce services that go beyond basic financial products, offering tools and guidance for career growth, family planning, health investment, and personal fulfilment.
According to the results of this PwC Survey in 2023, 73% of participants consider experience to be a significant factor in their purchasing decisions, ranking it behind price and product quality. As also written in a PwC Blog, banks are now leveraging hyper-personalisation to offer bespoke services and products. By using real-time data and analytics, banks can create deeply customised experiences, fostering stronger customer loyalty and standing out in an increasingly competitive market. This reframing turns the bank into a proactive force for personal development, transforming its value from simple financial management to a holistic life journey partner.
A multi-disciplinary approach to innovation: the role of the “Interpreters”
But design-driven innovation doesn’t stop there. Verganti emphasises the importance of “Interpreters” – experts from diverse backgrounds who can challenge an organisation’s assumptions and bring fresh perspectives. For a bank, this might mean collaborating with designers, psychologists, futurists, and even artists to uncover hidden insights and generate novel, human-centric solutions.
The traditional approach to innovation – focused primarily on technological advancements and incremental improvements – simply doesn’t cut it in today’s rapidly evolving business landscape. Organisations that want to stay ahead of the curve must embrace a more holistic, design-driven mindset that prioritises the creation of meaningful, differentiated experiences for their customers.
For innovation leaders, this approach opens a way to craft offerings that do more than respond to the present—they resonate with future societal shifts, creating products and services that people grow to love before they even realise they need them.
What would it mean to redesign the meaning for your industry or organisation? If you’re willing to discover it, don’t hesitate to connect with us.
Giordana Di Biagio, Innovation / AI Designer – Exponential Team of PWC Luxembourg
Eraldo Federico Acchiappati, Lead Venture Architect & Innovation Manager at PwC Luxembourg
