Dynamization and Real Options – Discussing the Economic Success of Design Inventions

Abstract

This paper discusses the issue of real-world relevance in design invention and specifically discusses the topic from the point of view of dynamization. The dynamization-based idea that more customization, adaptation, and flexibility increase the ideality of a design may not in reality increase the chances for the real-world economic success of the design. The concept of real options is used in the economic evaluation of investments, specifically in the evaluation of the value of flexibility and the ability to adapt to new situations of investments. We introduce and shortly explore the relationship between dynamization and real options and illustrate with two real-world examples, how the context into which design innovations are made and the existence of standards may greatly affect the success of theoretically more ideal designs in real-world contexts. This paper is among the first to tie TRIZ with the concept of real options.