The Three Phases of Technology

Technology goes through three phases:

I Function – the invention of a new functionality previously unknown to the public.
II Feature – the addition of ancillary functions/features to the original, core function. 
III Experience – the orchestration of all functions into a fluid and emotionally-charged user experience.

So let’s follow the evolution of videogame consoles:

I: Company introduces the function of playing video games on your home TV.
II: Console makers add new features such as enhanced graphics, new controllers/interfaces (i.e. the NES Zapper) as well as functions such as playing DVDs, playing music, viewing pictures, downloading games and online play.
III: Microsoft introduces Natal and thereby rejiggers the user experience. No longer does a gamer interact with the game through a controller (even Wii does this). The gamer now interacts with the game as he would another person. The user experience changes from the “keyboard metaphor” to the “in-person metaphor.”

It works with CPG goods (a type of technology) too:

I: Introduction of washing machine soap.
II: The additions of scent, color protection, stain fighters, a bleaching agent, etc.
III: Method rejiggers the user experience from a product that I hide in a cabinet to a product that becomes an enhancing part of the décor of my home.

(Because invention is expensive, time consuming and hard AND because orchestrating the experience requires discipline, systemic thinking and tons of user information, most companies settle into and get stuck in the Features phase. Adding features (ie line extensions) is much easier and cheaper place to exist as a company. But stay there too long, and it'll mess up you up (ie Sony).)

You can even place occupations into these categories:

Phase I Function is where engineers live. They are always trying to make real the unreal – i.e. putting a man on the moon. They are most concerned about the product and what is happening inside of it.

Phase II Features is where corporate-side marketers live. They always want to add something to their product to differentiate it from a competitor’s. The belief: More features = better value proposition.

Phase III Experience is where designers live. Here, designers do two things. First, they help people deal with change – i.e. breakthrough, game-chancing functionality – by managing the experience they have it. Second, designers, because they have the ability to think systemically, orchestrate information and/or features for greater clarity. (This has been a core function of designers dating back to the Illuminators of Medieval book reproduction.) Designers are less concerned with ushering in a new reality (as they do not often have a commands of chemistry, physics, math, molecular biology, etc.) as they are spreading a new reality throughout the world (by elevating the experience people have with that new reality).