Innovation by Design – A case study of a leisure furniture company from Santa Catarina Roger C. Pellizzoni, Laryssa Tarachucky, Francisco A. P. Fialho and Luiz Salomão Ribas Gomez Universidade Federal de Santa Catarina, Programa de Pós-Graduação em Design e Expressão, Florianópolis, Santa Catarina, CEP 88040-900, Brazil Abstract — Innovation has been a goal to be pursued in the business world. The culture of design thinking as a tool to achieve it, however, finds it difficult to settle in more traditional business sectors. This article brings an example of how was the process of inserting Design in an ultra- centenarian furniture industry, referencing concepts already established in the areas of design management, design thinking and business management in order to analyse and validate the process developed. Index Terms — Branding, Place Branding, Innovation, SWOT Analysis, TVU Branding. I. Introduction In the scenario of accelerated changes in which contemporary world is inserted, the increasingly product offerings and global expansion of the knowledge industry leverage the difficulties for the businesses to remain competitive. Thus, the innovativeness becomes an advantage and a premise of survival, where finding new market opportunities, proposing solutions to better meet consumer’s needs and transforming ideas into innovative business strategies significantly increase the chances of success of organizations [1]. However, it is essential that, in addition to being attentive to the constant market changes, they build an internal culture in order to encourage innovative practices. Through the analysis of facts related to innovation by design and consolidated theories on innovation, design management and design thinking, this paper investigates the integration of design in an ultra-centenarian leisure furniture industry, based in a small town in the state of Santa Catarina, in southern Brazil. Therefore, research procedures were adopted consisting in literature review followed by semi-structured interviews and case study. The literature review was done through reference books, articles and periodicals in the field of design, design management, design thinking and innovation. The interviews were done with the four main managers from the industry (president, sales director, marketing manager and industrial manager), from August, 23 rd to August, 30 th 2013. The case study was conducted by gathering information through interviews with the company managers directly connected to the process, and the reporting of the facts observed during the initial phase of the adoption process of design actions in the company. II. Literature Review According to the Oslo Manual, innovation refers to the introduction of a good or service new or significantly improved with respect to its characteristics or intended uses [2] which includes significant improvements in technical specifications, components and materials, incorporated software, user use or other functional features. The brazilian innovation law [3] defines innovation as the introduction of new or improvement in productive or social environment that results in new products, processes or services. It involves processes of collective decision making and results in responses that satisfy the problems previously identified [1]. Thus, engaging in a unique combination of activities that leverage the company's resources so peculiar, difficult to be copied by others, is paramount to the continued success and is what gives businesses sustainable advantage over competitors. It is the strategy’s essence - defined by a distinctive system of activities and resources - that enables an entrepreneurial company to win in the market, gives it advantage over the competition and provides the best return on investment [4]. Investigations in the field of innovation suggest creative thinking in the area of design as a method suitable for the development of innovation in products and services [4]-[7]. Innovation arises, then, as an opportunity to create competitive advantage while the Design Management facilitates the completion of creativity by efficient learning processes in order to find new solutions. The duties of design are not restricted to its product. Not even restricted to being a result of a process. Before,