the Practice of Grounded Design

I was thinking about the implications of using a grounded design approach to development and what it actually implies for collecting data and cycles of development.

I found some links to papers in related but not identical context which provide some useful perspectives on this. Some are related to HCI like this one:
http://www.cet.sunderland.ac.uk/~cs0gco/grounded.htm

an earlier paper by Hannafin:
http://www.ascilite.org.au/conferences/perth97/papers/Hannafink/Hannafink.html

and some to other contexts like Italian fashion design! Different product but similar process:
http://www.heia.com.au/heia_graphics/JHEIA82-4.pdf