Cagan: As seen on TV!

Vogel: Companies often try to improve on the generic product simply by adding new technology. Add more gadgets, and make it spin, electrify it, or hand-power it. The Rotato supposedly reduces the amount of labor -- but it also takes off at least an eighth of the vegetable.

Cagan: Plus, the Rotato is cumbersome to use. And it's ugly. You don't really get very much lifestyle impact.

Vogel: But the American ethic says, If you add more technology, it's always better. If you add a power train or a turbo boost, you've automatically improved it.

Cagan: The Rotato has an electric arm!

Vogel: Applying technology to everything isn't always the best solution. And that's what's proven. If you see the Rotato, you might be captivated. My daughter loves it. She wants one of these. But it doesn't create lasting value.

Cagan: That's not to say you can't have a high-tech product in the upper right -- but the technology should match up with the application. The Apple iMac is a good example. While most personal computers come with lots of features and aren't that easy to use, the iMac has taken an alternative approach, which is virtually the opposite. It comes with a Zen philosophy: Let's be minimalist and give people what they need -- and only that.

Staying in the Upper Right

Design problem: Create new value from an old standard. A Black & Decker engineer happened upon the opportunity in his own workshop. He needed a hands-free rechargeable task light that was flexible and could wrap around objects. The SnakeLight debuted in 1994, supported by heavy TV advertising. At the time, Black & Decker projected sales of 200,000 units in the first year. It sold over 600,000. In fact, it took 18 months to catch up with demand.

Cagan: To stay in the upper right, you have to keep injecting useful, usable, and desirable features. Take the latest OXO peeler. It still has a good grip, but this updated version integrates brushed steel, which is a more contemporary look.

Vogel: In certain markets, the upper-right quadrant has been less sustainable than others. But the OXO Swivel Peeler has been remarkably sustainable.

Consider Motorola's Talkabout two-way radio. This was a great upper-right product, but it was instantly challenged by companies that were in the walkie-talkie industry and that were wired to compete. They started producing cheaper knockoffs. Motorola had been making huge profits as a result of the Talkabout, and it had to lower prices very quickly to stay competitive.

Cagan: Here's another example: Look at the SnakeLight. Black & Decker did a great job with patents, but it didn't continue to inject useful, usable, and desirable changes into the product. It dominated the market for four years -- but eventually, it lost market share.

Vogel: It wasn't that the competition was so great. Here's one knockoff: the Pretzl Lite, which is so bad, it's not even in the upper left. It doesn't work well; it looks terrible. But it managed to disguise its problems. When you see the Pretzl Lite in its package, you don't realize all that. The Pretzl Lite successfully drafted off of the SnakeLight's success. So even though the knockoffs were sued successfully, they created a lower-end market segment where people decided that they didn't have to pay as much. As a result, when the knockoffs didn't work, it hurt the credibility of the SnakeLight. And then Black & Decker didn't add any features. After four years, everyone who wanted one already had one.

Keith H. Hammonds (khammonds@fastcompany.com) is a Fast Company senior editor based in New York. For more articles on design as a strategic weapon, click here.

Sidebar: Value Opportunities

In Creating Breakthrough Products, Craig Vogel and Jonathan Cagan identify seven classes of attributes that can create value by contributing to a product's usefulness, usability, and desirability -- all of which create an experience that fulfills a consumer's fantasy.

Emotion: The perceptual experience that a consumer has when using a product. It can include a sense of adventure, independence, security, or sensuality.

Aesthetics: A focus on sensory perception, including the visual form, tactile interactions, and auditory, olfactory, and gustatory signals.

Product Identity: A statement about individuality and personality, expressing uniqueness, timeliness of style, and appropriateness in the context.

Impact: The social or environmental effects, which are connected with the customer's personal value system and can often help build brand loyalty.

Ergonomics: A product's basic usability reflects its ease of use from both a physical and a cognitive perspective. It must also be safe and comfortable.

Core Technology: The ability to function properly and perform to expectations. It must be reliable enough to work consistently.

Quality: The durability, precision, and accuracy of manufacturing processes, material composition, and methods of attachment must all meet the customer's expectations.