Design Resource Valuation Model


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presentation of methodology that connects business strategy and design strategy.

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Design Resource Valuation Model

  1. 1. The value of design How much is your investment in design worth to your business? 1 Friday, August 21, 2009
  2. 2. Design resource valuation The purposed methodology provides a simple criteria for measuring the value of a company’s investment in design. Four areas have been identified where business strategy and design strategy clearly overlap and are of interest to both business and design leadership. ‣ Agility: responsiveness to market demands or trends ‣ Brand impact ‣ Innovation opportunities ‣ Sustainability Design Valuation // H. Allen 2 Friday, August 21, 2009
  3. 3. Connecting the dots Drawing conclusions through analysis and creating opportunities through innovation 3 Friday, August 21, 2009
  4. 4. Connecting the dots What makes it possible to determine the importance of the design function to a company’s broader business strategy is the evaluation of the relationship between: ‣ Business strategy ‣ Business policy ‣ Business processes and how those subjects interplay with the activities that enable design resources to function. ‣ Planning ‣ Organizing ‣ Implementation ‣ Monitoring ‣ Evaluation Design Valuation // H. Allen 4 Friday, August 21, 2009
  5. 5. Synergy is key Finding the balance between insight, planning and action 5 Friday, August 21, 2009
  6. 6. Synergy is key By evaluating the synergy between these three levels of activity an understanding of the value of design for each of the four criteria can be formed. Agility | Brand impact | Innovation opportunities | Sustainability 1 Business strategy / Business policy / Business processes 2 Design strategy / Design policy / Design processes 3 Planning / Organizing / Implementation / Monitoring / Evaluation 6 Friday, August 21, 2009
  7. 7. Why design matters Influencing the position you play in todays competitive marketplace 7 Friday, August 21, 2009
  8. 8. Why design matters The aim is to help clients become smarter and provide them with actionable steps that will move them to a position of contention in their industry. Raising your design IQ isn’t about making you a connoisseur of well designed artifacts. It’s about understanding the design process and benefiting from the results. ‣ Process improvement/innovations and potential cost savings ‣ Influencing product and service innovation ‣ Shaping brand message and experience ‣ Improving usability ‣ Influencing sustainability opportunities ‣ Creating opportunities for intellectual property ‣ Shaping consumer desires and aspirations Design Valuation // H. Allen 8 Friday, August 21, 2009
  9. 9. Why design matters ‣ Competing on price isn’t enough any more // Dell ‣ Banking on being the biggest doesn’t insure your success // General Motors ‣ Simply being smart doesn’t insure that customers will embrace your brand // PricewaterhouseCoopers What does matter is ‣ Your ability to di≠erentiate yourself from those within your industry // Morningstar ‣ Your ability to capture market share through innovation // Dyson ‣ Your ability to be e∞cient and agile // Proctor and Gamble ‣ Your ability to establish policies that will increase brand value and goodwill to clients // Toyota ‣ Your ability to increase customer satisfaction // British Airways And if your company isn’t able to do these things it will continually struggle in todays economy. Understanding design is critical to the success of your company even if it doesn’t sell tangible products. The experience you create through design makes it possible to succeed in delivering a positive experience in an e∞cient manner that is relevant to stakeholders. Design Valuation // H. Allen 9 Friday, August 21, 2009
  10. 10. Food for thought Next steps Date 10 Friday, August 21, 2009
  11. 11. Food for thought The following is a brief article from the Harvard Business Review about the relationship between design, business strategy and innovation. I hope you’ll find it interesting. If you’ve found this brief presentation compelling and truly think the strategic implementation of design will make a di≠erence to you or your clients or possibly have further insights that you would like to share regarding design strategy please refer to my contact information on the last page of this presentation. Design Valuation // H. Allen 11 Friday, August 21, 2009
  12. 12. FORETHOUGHT INNOVATION Innovate Faster by Melding Design and Strategy by Ravi Chhatpar • Reprint F0709J
  13. 13. FORETHOUGHT INNOVATION Innovate Faster by Melding Design and Strategy by Ravi Chhatpar If they’re to do their job most effectively, de- should continually feed new information from signers should be brought into the innovation user research and prototype analysis into the process at the very earliest stages. Too many evolving business strategy. Constraints that companies still make the mistake of keeping emerge, such as price or a decision to offer business strategy and design activities sepa- standard versus premium features, may be rate. Typically, marketers conceptualize a used to inform the next prototype, which can new product based on company strategy; the then be evaluated through more formal testing. project team gets input from various areas of And the cycle repeats. the company and creates a business case; and Our firm’s recent work with Alltel, the senior executives make a final choice from owner and operator of America’s largest re- among the possibilities they’re given. Only gional wireless network, provides an example then does the idea go to the designers. of this fully integrated process. Alltel wanted That sequential method ensures that the to go beyond simply improving existing com- product is aligned with strategy, allows the munications services; it wanted to change the team to create buy-in and build consensus, industry, by making mobile devices more cen- and gives senior executives an array of op- tral in users’ lives. We explored nearly 100 tions. But it takes a long time, so even if the ideas, from basic to wild, and then used proto- original concept drew on real-world data types to investigate the most compelling. We about users, the company is inevitably un- tested these iteratively with users and with able to adapt to rapid, unforeseen changes in Alltel partners, to understand what users did markets and user preferences. with them and what the partners were inter- The solution is to bring in designers at the ested in, and eventually focused on a new very beginning of the process, because design- platform we called the Celltop, which brings ers (if they do what they’re supposed to) will the concept of “widgetization”—on-screen PC COPYRIGHT © 2007 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. put prototypes into circulation and share users’ mini-applications—to the mobile environ- responses and attitudes with the project team, ment. The findings from our prototypes in- even as the business case is being developed. formed the product road map and helped to That enables the company to nimbly adjust to develop a model for successful execution changes in market opportunities long before through collaboration with various industry the product concept is set in stone. players. Because Alltel’s manufacturing part- From concept through development, design- ners were exposed to the Celltop concept ers should function in parallel with corporate early on, they were able to make needed decision makers, creating prototypes for a adjustments quickly, and the new platform number of variations on a product and then was brought to market in just 12 months. testing them with users and, if appropriate, The traditional method of formulating partners. Tracking how customers’ ways of product strategy—in which the various using a product evolve over time also makes phases (the options portfolio, the business it possible for designers to identify desirable case, the road map, the execution plan) are new features and, in some cases, create new sequential and consensus is required for each functionality in conjunction with users. step before the next begins—is inflexible and Planners should concurrently be considering often leads to products that are based on out- the business implications, asking questions dated assumptions about customer behavior such as “How much would it cost to incorpo- and company potential. This, in essence, is rate this new feature?” and “How should we why the U.S. auto industry was late to recog- respond to users’ changing needs?” The team nize the market for hybrids and why Friend- harvard business review • september 2007 page 1
  14. 14. Innovate Faster by Melding Design and Strategy •• •F ORETHOUGHT I NNOVATION ster lost its first-mover advantage to MySpace, which had better feature planning and scaling. By contrast, involving designers at each stage of the strategy and development process can lead to better product decisions and improve a company’s ability to seize new market opportunities. Ravi Chhatpar ( is the strategy director in the New York and Shanghai studios of Frog Design, a strategic-creative consulting firm headquartered in Palo Alto, California. Reprint F0709J To order, see the next page or call 800-988-0886 or 617-783-7500 or go to harvard business review • september 2007 page 2
  15. 15. Thanks Howard Allen: 917-653-7494 12 Friday, August 21, 2009