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TCI 2014 Design for Clusters and Clusters for Design

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By Thit Juul Madsen, presented at the 17th TCI Global Conference, Monterrey 2014.

Published in: Economy & Finance
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TCI 2014 Design for Clusters and Clusters for Design

  1. 1. Design for Clusters and Clusters for Design Thit Juul Madsen Parallel 3.2 Topics on New Cluster Trends 12 November 2014
  2. 2. D2i – Design to innovate Design for Clusters and Clusters for Design Thit Juul Madsen, head of secretariat #TCI 2014, Monterrey
  3. 3. D2i – The Danish Design Cluster
  4. 4. The Region of Southern Denmark Regional smart specialisation D2i - Design to innovate Design-Driven Innovation Welfare Tech Health- and Social Innovation www.welfaretech.dk www.d2i.dk CLEAN Sustainable energy www.offshoreenergy.dk Offshoreenergy.dk Oil & Gas and Renewables www.offshoreenergy.dk
  5. 5. A Design
  6. 6. To Design
  7. 7. Strategic Design Surrounding World Unfocused Unrealistic Strategic Design Resources Strategy Irrelevant
  8. 8. D2i / As a design cluster A formation of large and smaller companies University, business and trade schools and world class design school / An innovation programme A large scale innovation programme embedding design capabilities
  9. 9. Value Curve RESEARCH & DEVELOPMENT DESIGN PROTOTYPING PLANNING PRODUCTION SALES MARKETING BRANDING QUALITY MANAGEMENT INTERNAL LOGISTICS MAINTENANCE ETC. ASSEMBLY LOGISTICS ADDED VALUE + + PRE-PRODUCTION TASKS PRODUCTION TASKS POST-PRODUCTION TASKS The Future of Industry in Denmark - Stan Shih, Acer Group
  10. 10. The value of design Design-Driven Companies outperfom S&P by 228% over a 10 year period according to the DMI Design Value Index Design Management Institute 2013 Profitability 16.0 12.0 8.0 4.0 0.0 A Swedish study of 300 companies over a 8 year period, shows up to 50% better profits for companies that use design. 2006 2007 2008 2009 2010 No design use Strategic Design use Teknikföretagen 2011 There is a 22% difference in value between companies using design as an integral part of innovation and development processes, and companies that only use design as styling and finish. Erhvervs- og Byggestyrelsen 2008 The Design Council Design Index shows the design aware companies has out-performed the FTSE 100 by more than 200% over the past decade. Design Council 2007
  11. 11. Why Design? Optimisation and increased productivity is important. But if we seriously want to improve our competitiveness, it takes more than adjustments and adaptation. There is no way around strategic use of design, because design connects a profound understanding of the surrounding world and the users with product and business development. Thit Juul, D2i
  12. 12. The right foundation Companies / More than 300 SMEs (over 1.000 persons) participating in: / Design introductions / Design Camps / Sustainability processes / Research projects Other clusters / CLEAN / Welfare Tech / OffshoreEnergy.dk Research & Education / University of Southern Denmark / Design School Kolding / University College South / Business Academy South Funding & Captial / Region of Southern Denmark Growth Forum / Bjert Invest In the future also: / Interreg 5A / Horizon 2020 / Creative Europe / COSME Public / Region of Southern Denmark / Invest in Denmark / Danish Design and Architecture Initiative / Municipality of Kolding / Municipality of Billund
  13. 13. The partners behind D2i / LEGO Group / Bjert Invest / Dong Energy / Design School Kolding / University of Southern Denmark / The Region of Southern Denmark / Municipality of Kolding & Billund Companies involved SMEs with in / Production / Services / Sales / Consulting
  14. 14. Organisation BOARD SECRETARIAT CLUSTER ORGANISATION PROJECT PARTNER A PROJECT PARTNER B PROJECT PARTNER C PROJECT PARTNER D
  15. 15. The services D2i offer / Design Updates / Design training programmes / Design workshops and seminars / Design consultations / Design Camps / Methods, tools and models / Research papers and reports
  16. 16. Top management - on the strategic agenda D2i - New Knowledge Both internal and external designers Internal designers/ design department External designers engaged No designers employed Design is seen as a possibility No one Technology driven innovation Supplyer driven innovation Market (user/customer) driven innovation Design driven innovation (vision, market og technology) 5. Design capabilities Design capabilities originate from? 4. Innovation drivers What drives the innovation processes? Strategy and management Innovation projects Production processes 3. Engagement of users How are users engaged? Not important No engagement Product and service develop-ment, including finish and styling Marketing User surveys and user feed-back User observations and focus groups Users are engaged in processes in the company User communities and lead users D2i © 2014
  17. 17. D2i - New Competencies
  18. 18. D2I members
  19. 19. Companies Utilise Design 2010 2013 54% 46% Companies that utilise design Companies that do not utilise design 68% 32% The percentage of companies in the Region of Southern Denmark that utilise design has risen from 54 per cent to 68 per cent from 2010 to 2013. Source — The Region of Southern Denmark, 2014
  20. 20. Changing expectations 71 39 57 35 44 59 31 35 8 21 0 20 40 60 80 An increased turnover More employees Greater exports To make new investments To launch new products and services Companies that utilise design Companies that do not utilise design Companies in the Region of Southern Denmark who utilise design believe themselves to perform better than companies that do not utilise design. Source — The Region of Southern Denmark, 2014 Percentage of companies in the Region of Southern Denmark who expect:
  21. 21. CASE: ISOVER Insulation materials Used strategic design to: / Move from product sales to project sales / Create new revenue streams on services and consulting / Move up the value chain ISOVER Headquarter Vamdrup Established 1935 Emloyees 205 Turnover (2012) EUR 46 mio.
  22. 22. CASE: EASYFOOD Convenience foods Used strategic design to: / Engage employees in product development / Divide products into “collections” / Differentiate products on quality and price / Reduced waste and increased revenues / Increase local job creation EASYFOOD Headquarter Kolding Established 2000 Emloyees 103 Turnover (2012) EUR 24 mio.
  23. 23. Curious about strategic design? www.d2i.dk
  24. 24. Connecting the dots
  25. 25. What’s next for D2i? / D2i is moving into a new phase – Version 2.0 / Developing from project to cluster organisation / The role of D2i is strategic planning and coordinating with all the players in the design cluster / Establishing partnerships and securing funding
  26. 26. Tools to move forward
  27. 27. Internationalisation / We are interested in international collaborations and co-operation projects / More fruitful collaborations like the current one with Glasgow School of Art / In areas where design can make a difference / To help foster innovation and drive change
  28. 28. Thank you! Get in touch thit@d2i.dk www.d2i.dk

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