Xiaomi, a Chinese technology company founded in 2010, has rapidly emerged as a global leader in the consumer electronics market. While Xiaomi is widely recognized for its affordable smartphones, its success can be attributed, in part, to its relentless focus on design capability development. This summary explores how Xiaomi has cultivated its design capabilities over the years, enabling the company to deliver innovative and user-centric products.
Early Days and Design Philosophy:
In its early days, Xiaomi set out to disrupt the smartphone industry by offering high-quality devices at affordable prices. The company's design philosophy centered around three key principles: simplicity, functionality, and elegance. Xiaomi aimed to create products that were not only visually appealing but also intuitive and practical for users.
Investment in Talent and R&D:
Recognizing the importance of design expertise, Xiaomi made substantial investments in talent acquisition and research and development (R&D). The company recruited top-tier designers from around the world, fostering a creative and diverse design team. Additionally, Xiaomi established design centers in key global locations, such as Beijing, Shenzhen, and Helsinki, to tap into local design trends and consumer preferences.
User-Centric Design Approach:
Xiaomi's design approach revolves around placing the user at the center of the product development process. The company actively solicits user feedback and conducts extensive research to understand user needs, pain points, and aspirations. This user-centric approach enables Xiaomi to create products that resonate with its target audience and deliver exceptional user experiences.
Iterative Design and Rapid Prototyping:
Xiaomi embraces an iterative design process, where multiple design iterations and prototypes are created and tested before finalizing a product. This approach allows Xiaomi to gather feedback early in the development cycle, iterate rapidly, and refine its designs based on user insights. By embracing rapid prototyping techniques, Xiaomi reduces time-to-market and maximizes the chances of success.
Design Language and Brand Identity:
Xiaomi has developed a distinctive design language and brand identity that is consistent across its product portfolio. The company's design language emphasizes clean lines, minimalist aesthetics, and attention to detail. Xiaomi's iconic "Mi" logo has become synonymous with its products and serves as a visual representation of the brand's commitment to design excellence.
Integration of Hardware and Software:
Xiaomi recognizes that seamless integration of hardware and software is crucial for delivering a holistic user experience. The company invests in developing its MIUI software, which runs on Xiaomi devices, to ensure a cohesive and intuitive user interface. Xiaomi's design teams work closely with software engineers to create a harmonious integration between hardware and software, resulting in a seamless us
2. Design Management Capability (DMC)
• It supplies the means for the deployment of design resources in a dynamic and
adequate way > capability and strategic flexibility of firm
Design Team
Basic
skills
involve
ment
Organizati
onal
change
Specializ
ed skills
Innovation
skills
Design management skills by
Dickson et al. (1995)
Strategic DMC Design-strategic
capability
Capability of protecting
design-based
advantages
Organizational learning
capability
Tactical capability Combinative capability
Resourcing capability
Operational DMC Design innovation
capability
Organizing design capability by
Jevnaker (2000)
3. The Overlap between Design management
and Entrepreneurship
• Combined all the factors > a basic framework of DMC was built for all
design management mode.
• Two dimensions :
• 1) The process of entrepreneurship (formation, validation, and
growth)
• 2) The process of problem solving (problem, solution, and effect)
4. Xiaomi
• Established in April 6, 2010, founded by CEO Jun Lei and other seven
founders
• It became the leader in the market of smartphones in China and
third worldwide
• Poor product quality > market share lost
• Now recovering with new strategy
•Development stages of Xiaomi
➢Formation Stage
➢Validation Stage
➢Growth Stage
Jun Lei, founder of Xiaomi
5. Formation Stage
Ximiao 1.0 (2010-2013 • Wanqiang Li → MIUI system (involve users in
the design process ; Get ideas from users)
• 600,000 Members (including Geeks and their
friends) – involve leading consumers in co-
creation process
• Xiaomi recruit external design team
> experience + resources = formed a
standard and efficient working pattern
Reform and Opening policy (1978)
> Promote modernization and development
“Introduction-Absorption-Innovation”
“Innovation-Driven Development Strategy” (2010)
Outcome in initial 3 years:
• 18.7 million Mi smartphones were
sold
• 15% market share
• Top 3 brands in China
6. Validation Stage (2013-
2015)
TWO MAIN PROBLEMS 1) POOR
PERFORMANCE
RESULT IN POOR
REPUTATION > LOST
CONSUMER
2) PRODUCT IMAGE
(TOO SIMILAR TO
APPLE)
Through collecting feedback
Introduced Mi1S & Mi2
Solved by collaborating
with world-top designers
Low cost and high
performance strategy
7. Validation Stage (2013-2015)
• Eco-chain strategy (with accumulated exp, resources
and capability)
• Objectives: Maintain as popular brand and improve
total sales revenue
• Eco-chain department > develop more smart products
• Enable interactions between internal and external
resources and potential resources
Principles:
1. Eco-chain products be based on Miui
2. Controlled by Mijia app
3. Sold through Xiaomi’s retail channel
4. Supplied by Xiaomi’s retail channel
8. Outcome in Validation Stage
• Disappointing performance to high growth rate
• Thanks to eco-chain business
• From 2 billion RMB sales revenue in 2014 to 5 billion in 2015 and 10
billion in 2016
9. Growth Stage: Xiaomi 2.0 (2015-2018)
• Focus on retail channels
(From software to Internet
services)
• Previous: concentrated on
software
• Present: Internet services
“including Xiaomi’s app
store, Internet browser, live
broadcasts etc”
• From hardware to eco-chain businesses
Xiaomi insisted good-designed products with low-cost and
high-performance strategy
In order to make an impression among consumers
→ Enrich lives of the core consumer group
10. Strengths and weaknesses in formation stage
• Strength:
• Great involvement (designers, users, consumers)
• Helps building a working pattern
• Develop new designs
• Weakness:
• Only solve a few problems that are related to DMC
11. Strengths and weaknesses in validation stage
• Strength:
• Fully utilize resources to maximize value
• Create effective product development (interaction between internal
and external resources)
• Improve product quality
• Weakness:
• Inadequate initial design and quality assurance
• Similarity to Apple products
12. Strengths and weaknesses in growth stage
• Strength:
• Eco-chain business → generates sales revenue greatly
• Xiaomi was not involved in decision making→ sustain competitive
advantage
• Standards of product design
• User research and exp. as resources for business development
• Weakness:
• Rigorous selection process to join
• Absence of Ownership of Innovation
13. Suggestions
1. Design Talent Acquisition : since , in the formation stage, having
more external designers is a proof that helps increase internal
capabilities
2. Create a Distinctive Design Identity: try to avoid creating designs
that are similar to competitors. (address weakness in validation
stage)
3. Encourage a Culture of Creativity and Design Thinking (address
weakness in growth stage)
