Design strategies. Who needs them? Design or economy?
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I would like to argue in this presentation why is it wise to connet design and design strategies into corporate strategies. One possible approach is cooperation between boards, strategic planners, designers and design managers. I present the knowledge on design strategies important for designers and for design as a profession. Included are also three possible models of presentation of a major design effort in different companies.
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Design strategies. Who needs them? Design or economy?
- 2. Who needs design strategies? Design or economy? Marko Savić MA, MBA Managing Director
- 3. I. Design and corporations
- 4. I. Design and corporations II. Design strategies in the corporations
- 5. I. Design and corporations II. Design strategies in the corporations III. Cooperation between boards, strategic planners, designers and design managers
- 6. I. Design and corporations II. Design strategies in the corporations III. Cooperation between boards, strategic planners, designers and design managers IV. The role of designers in design strategy development
- 7. I. Design and corporations II. Design strategies in the corporations III. Cooperation between boards, strategic planners, designers and design managers IV. The role of designers in design strategy development V. Why do we need design strategies?
- 8. I. Design and corporations Michael Porter, Harvard Business School: a strong “… sense of corporate identity …
- 9. I. Design and corporations Michael Porter, Harvard Business School: a strong slavish ad- “… … sense of herence to corporate = business identity units finan- … cial results …”
- 10. II. Design strategies in the corporations
- 11. II. Design strategies in the corporations major trends in the marketplace
- 12. II. Design strategies in the corporations + DESIGN AS A CORE COMPETENCE major trends in the marketplace
- 16. II. Design strategies in the corporations + DESIGN AS A CORE COMPETENCE + INTEGRATION OF DESIGN INTO THE BUSINESS WORLD major trends in the marketplace
- 19. II. Design strategies in the corporations + DESIGN AS A CORE COMPETENCE + INTEGRATION OF DESIGN INTO THE BUSINESS WORLD + DESIGN MANAGEMENT AND PLA- NNING AS A FOCUS FOR CONSUL- TANCIES major trends in the marketplace
- 20. II. Design strategies in the corporations + DESIGN AS A CORE COMPETENCE + INTEGRATION OF DESIGN INTO THE BUSINESS WORLD + DESIGN MANAGEMENT AND PLA- NNING AS A FOCUS FOR CONSUL- TANCIES + MERGING OF BUSINESS AND DESIGN EDUCATION major trends in the marketplace
- 21. III. Cooperation between boards, strategic planners, designers and design managers
- 22. III. Cooperation between boards, strategic planners, designers and design managers “Design aware executive”
- 23. III. Cooperation between boards, strategic planners, designers and design managers “Design aware executive” Mrs. Davorin Savnik in 1960s and ’70s influential design consultant of then Director General of the corporation Iskra.
- 24. Automatic telephone ATA 30 photo: iskra46-90.com Davorin Savnik, 1965
- 25. III. Cooperation between boards, strategic planners, designers and design managers 30.000 employees in the middle of 1970s
- 26. III. Cooperation between boards, strategic planners, designers and design managers 500 List of largest corporations in central Europe
- 27. III. Cooperation between boards, strategic planners, designers and design managers From Slovenia: 500 41. - Petrol List of 46. - Mercator 134. - Gorenje 143. - Merkur 151. - Revoz 199. - HSE 204. - Lek 208. - Krka largest corporations in central Europe 238. - Telekom Slovenije Source: www.deloitte.com, za 2008 312. - SIJ 330. - Engrotuš 384. - Salbatring 448. - Impol 495. - Eles
- 28. III. Cooperation between boards, strategic planners, designers and design managers From Slovenia: 500 41. - Petrol List of 46. - Mercator 134. - Gorenje 143. - Merkur 151. - Revoz 199. - HSE 204. - Lek 208. - Krka largest corporations in central Europe 238. - Telekom Slovenije Source: www.deloitte.com, za 2008 312. - SIJ 330. - Engrotuš 384. - Salbatring 448. - Impol 495. - Eles
- 29. III. Cooperation between boards, strategic planners, designers and design managers From Slovenia: 500 41. - Petrol List of 46. - Mercator 134. - Gorenje 143. - Merkur 151. - Revoz 199. - HSE 204. - Lek 208. - Krka largest corporations in central Europe 238. - Telekom Slovenije Source: www.deloitte.com, za 2008 312. - SIJ 330. - Engrotuš 384. - Salbatring 448. - Impol 495. - Eles
- 30. III. Cooperation between boards, strategic planners, designers and design managers From Slovenia: 500 41. - Petrol List of 46. - Mercator 134. - Gorenje 143. - Merkur 151. - Revoz 199. - HSE 204. - Lek 208. - Krka largest corporations in central Europe 238. - Telekom Slovenije Source: www.deloitte.com, za 2008 312. - SIJ 330. - Engrotuš 384. - Salbatring 448. - Impol 495. - Eles
- 31. III. Cooperation between boards, strategic planners, designers and design managers How many of the largest corporations in Slovenia have design represented at the highest/board level?
- 32. III. Cooperation between boards, strategic planners, designers and design managers How many of the largest corporations in Slovenia have design represented at the highest/board level? www.deloitte.com
- 33. IV. The role of designers in design strategy development
- 34. IV. The role of designers in design strategy development Know- ledge on design strategies
- 35. IV. The role of designers in design strategy development Know- + OFTEN CONFUSED WITH FUTURE FANTASY. ledge on design strategies
- 36. IV. The role of designers in design strategy development Know- + OFTEN CONFUSED WITH FUTURE FANTASY. ledge on + CONTROLS THE AMOUNT OF SUBJECTIVITY IN THE design PRODUCT OR SERVICE DEVELOPMENT PROCESS. strategies
- 37. IV. The role of designers in design strategy development Know- + OFTEN CONFUSED WITH FUTURE FANTASY. ledge on + CONTROLS THE AMOUNT OF SUBJECTIVITY IN THE design PRODUCT OR SERVICE DEVELOPMENT PROCESS. + 6… strategies
- 38. IV. The role of designers in design strategy development GENERIC DESIGN STRATEGIES FOR AN ADOPTION CURVE.
- 39. ADOPTION CURVE
- 41. ADOPTION CURVE INNOVATORS EARLY ADOPTERS 2,5 % 13,5 %
- 42. ADOPTION CURVE INNOVATORS EARLY EARLY ADOPTERS MAJORITY 2,5 % 13,5 % 34 %
- 43. ADOPTION CURVE INNOVATORS EARLY EARLY LATE ADOPTERS MAJORITY MAJORITY 2,5 % 13,5 % 34 % 34 %
- 44. ADOPTION CURVE INNOVATORS EARLY EARLY LATE LAGGARDS ADOPTERS MAJORITY MAJORITY 2,5 % 13,5 % 34 % 16 % 34 %
- 45. ADOPTION CURVE AS A TOOL TO DEVELOPE DESIGN STRATEGIES
- 46. ADOPTION CURVE AS A TOOL TO DEVELOPE DESIGN STRATEGIES ENDORSE CURATE INTE- ECO- PLAY REFRESH + Electric + Hybrid GRATE NOMIZE + Analog + Lightbulbs cars cars + MP3 + Cell TVs + Film + Home + TiVo players phones + Cordless camers robots + HDTV + Satellite + DVD phones + WiMax TV players + Smart + Inkjet phones printers Cases curent circa August 2007
- 47. ADOPTION CURVE AS A TOOL TO DEVELOPE DESIGN STRATEGIES ENDORSE CURATE INTE- ECO- PLAY REFRESH + Electric + Hybrid GRATE NOMIZE + Analog + Lightbulbs cars cars + MP3 + Cell TVs + Film + Home + TiVo players phones + Cordless camers robots + HDTV + Satellite + DVD phones + WiMax TV players + Smart + Inkjet phones printers Cases curent circa August 2007
- 48. ADOPTION CURVE AS A TOOL TO DEVELOPE DESIGN STRATEGIES ENDORSE CURATE INTE- ECO- PLAY REFRESH + Electric + Hybrid GRATE NOMIZE + Analog + Lightbulbs cars cars + MP3 + Cell TVs + Film + Home + TiVo players phones + Cordless camers robots + HDTV + Satellite + DVD phones + WiMax TV players + Smart + Inkjet phones printers Cases curent circa August 2007
- 49. ADOPTION CURVE AS A TOOL TO DEVELOPE DESIGN STRATEGIES ENDORSE CURATE INTE- ECO- PLAY REFRESH + Electric + Hybrid GRATE NOMIZE + Analog + Lightbulbs cars cars + MP3 + Cell TVs + Film + Home + TiVo players phones + Cordless camers robots + HDTV + Satellite + DVD phones + WiMax TV players + Smart + Inkjet phones printers Cases curent circa August 2007
- 50. ADOPTION CURVE AS A TOOL TO DEVELOPE DESIGN STRATEGIES ENDORSE CURATE INTE- ECO- PLAY REFRESH + Electric + Hybrid GRATE NOMIZE + Analog + Lightbulbs cars cars + MP3 + Cell TVs + Film + Home + TiVo players phones + Cordless camers robots + HDTV + Satellite + DVD phones + WiMax TV players + Smart + Inkjet phones printers Cases curent circa August 2007
- 51. ADOPTION CURVE AS A TOOL TO DEVELOPE DESIGN STRATEGIES ENDORSE CURATE INTE- ECO- PLAY REFRESH + Electric + Hybrid GRATE NOMIZE + Analog + Lightbulbs cars cars + MP3 + Cell TVs + Film + Home + TiVo players phones + Cordless camers robots + HDTV + Satellite + DVD phones + WiMax TV players + Smart + Inkjet phones printers Cases curent circa August 2007
- 52. ADOPTION CURVE AS A TOOL TO DEVELOPE DESIGN STRATEGIES Apple HP Dell ENDORSE CURATE INTE- ECO- PLAY REFRESH + Electric + Hybrid GRATE NOMIZE + Analog + Lightbulbs cars cars + MP3 + Cell TVs + Film + Home + TiVo players phones + Cordless camers robots + HDTV + Satellite + DVD phones + WiMax TV players + Smart + Inkjet phones printers Cases curent circa August 2007
- 53. IV. The role of designers in design strategy development Design as a profession
- 54. IV. The role of designers in design strategy development Design as a profession Visualise strategic design thinking
- 55. IV. The role of designers in design strategy development
- 56. IV. The role of designers in design strategy development Major design effort create a continuous pipeline of innovations
- 57. PRESENTING MAJOR DESIGN EFFORT IN AN ORDINARY COMPANY LOOKING FOR A RETURN
- 58. PRESENTING MAJOR DESIGN EFFORT IN AN ORDINARY COMPANY LOOKING FOR A RETURN
- 59. PRESENTING MAJOR DESIGN EFFORT IN AN ORDINARY COMPANY LOOKING FOR A RETURN
- 60. PRESENTING MAJOR DESIGN EFFORT IN A SMART COMPANY LOOKING FOR A RETURN
- 61. PRESENTING MAJOR DESIGN EFFORT IN A SMART COMPANY LOOKING FOR A RETURN
- 62. PRESENTING MAJOR DESIGN EFFORT IN A TRULY VISIONARY COMPANY LOOKING FOR A RETURN
- 63. PRESENTING MAJOR DESIGN EFFORT IN A TRULY VISIONARY COMPANY LOOKING FOR A RETURN
- 64. PRESENTING MAJOR DESIGN EFFORT IN A TRULY VISIONARY COMPANY LOOKING FOR A RETURN
- 65. V. Why do we need design strategies?
- 66. V. Why do we need design strategies? This is the only way for Sustainable competitive advantage & high added value.
- 67. V. Why do we need design strategies? Strategic design management take into account that design is a continuous element of corporate strategy.
- 68. Sources + T. Lockwood&T. Walton (ed). 2008. Buiding Design Strategy: Using Design to Achieve key Business Objectives. + S. Bojc. 2009. Neuvrščeno oblikovanje. + www.deloitte.com + M. Tajnikar, K. Pušnik. 2009, Mura ni reka, je podjetje. Reševanje tekstilnega giganta. Who needs design strategies? Design or economy? © Vizuarna d.o.o., June 2011
- 69. Thany you for your attention.
Editor's Notes
- Today I would like to present to you a topic on design strategies. Who needs design strategies? Design or economy?
- I would like to argue why is it wise to connet design and design strategies into corporate strategies. My speech has five points:FIRST: DESIGN AND CORPORATIONS
- SECOND: DESIGN STRATEGIES IN THE CORPORATIONS
- THIRD COOPERATION BETWEEN BOARDS, STRATEGIC PLANNERS, DESIGNERS AND DESIGN MANAGERS
- FOURTH: THE ROLE OF DESIGNERS IN DESIGN STRATEGY DEVELOPMENT
- FIFTH: WHY DO WE NEED DESIGN STRATEGIES
- Allow me to start with the quote from Michael Porter, one of the most known professors from Harward Business School. Michael Porter mentioned in his article „From Competitive Advantage to Corporate Strategy“ that „... A STRONG SENSE OF COPORATE IDENTITY
- is as important as „...SLAVISH ADHERENCE TO BUSINESS UNITS FINANCIAL RESULTS“
- if corporate strategy wants to be successful. So, what is the background for the development of DESIGN STRATEGIES IN THE CORPORATIONS?
- It is possible to identify FOUR MAJOR TRENDS IN THE MARKETPLACE.
- First trend from the past is defining DESIGN AS A CORE COMPETENCE.
- The most known examples where design has played a prominent and obvious role are:from so called „life-style“ offerings from companies like Swatch
- or: another case are the German auto industry investements in the 1990s into the innovative designs, with showcase products such as Audi TT
- or Mercedes A-Class.
- Second major trend in the marketplace was INTEGRATION OF DESIGN INTO THE BUSINESS WORLD.
- On the one side of this trend we could indetify the emergence of designers like Philippe Starck
- as public figures and artistic heroes. And on the other side it is possible to identify the desicion of some business magazines, like BusinessWeek
- to pay tribute every year to companies that use design as a source of competitive advantage.The third major trend identified in the past was exemplified by emergence of DESIGN MANAGEMENT AND PLANNING AS A FOCUS FOR CONSULTANCIES
- Known cases are global design consultancies IDEO or Ziba. At the same time it is possible to spot some independent consultancies for design strategies and innovations like Park Design Strategy. And some multinationals like Siemens and Philips form special desing companies like Siemens Messe & Design and Philips Design Center. The same goes for slovenian company Gorenje that formed Gorenje Design Studio.And the fourth trend in the marketplace was MERGING OF BUSINESS AND DESIGN EDUCATION.
- Some traditional MBA programs included also design modules, there are some specializied programes of design management and even design management programs offered by corporations like Samsung for example.What would therefore be the right way to ensure design a strategic role in the corporations? COOPERATION BETWEEN BOARDS, STRATEGIC PLANNERS, DESIGNERS AND DESIGN MANAGERS
- seems like a logical precondition to establish a design strategy in the corporation. One of the possible and already known ways is, a corporation that has a so called “DESIGN AWARE EXECUTIVE” or design champion.
- We had such a case in Slovenia. Mr.Davorin Savnik was in 1960s in ’70s, influentialdesign consultant of then Director General of the corporation Iskra.
- Iskra products that were globally competitive were numerous.
- And I would like to mention that Iskra had 30.000 employees in the middle of 1970s.
- It is my strong believe that this was the case because alredy then in the 1970s design was a core competency for Iskra.And today? For how many companies in Slovenia (or in Germany for that matter) could we say that design is their core competency. How many companies in Slovenia have design at the strategic level? How many designers or design manageres are in the boards of the companies or consult the boards directly?Which are actually the bigest companies in Slovenia? Data from 2008 showed that on THE LIST OF THE 500 LARGEST CORPORATIONS IN CENTRAL EUROPE
- from Slovenia there are: Petrol
- Mercator,
- Gorenje,
- and some others.
- and HOW MANY OF THIS LARGEST CORPORATIONS IN SLOVENIA HAVE DESIGN REPRESENTED AT THE HIGHEST/BOARD LEVEL?
- By available data that was and still is only the Gorenje Group.
- But allow me to skip the details and concentrate to the next – fourth point that is: THE ROLE OF DESIGNERS IN DESIGN STRATEGY DEVELOPMENT
- Every designer should have the following KNOWLEDGE ON DESIGN STRATEGIES.
- Design strategy is + OFTEN CONFUSED WITH FUTURE FANTASY,
- which can sometimes be inspirational, but should never be confused with design strategy.Second thing every designer should know on design strategy is that design strategy + CONTROLS THE AMOUNT OF SUBJECTIVITY IN THE PRODUCT OR SERVICE DEVELOPMENT PROCESS.
- And the third thing on knowledge of design strategy I would like to present more in details are SIX
- GENERIC DESIGN STRATEGIES FOR AN ADOPTION CURVE.
- We all probably know Adoption Curve
- where the relative speed of adoption can be plotted as a normal distribution with people being differentiated into+ INNOVATORS
- + EARLY ADOPTERS
- + EARLY MAJORITY
- + LATE MAJORITY
- and+ LAGGARDS.
- Inside this Adoption Curve it is possible to present six generic design strategies.
- The first design strategy is ENDORSE,
- second strategyis CURATE,
- third is INTEGRATE
- fourth design strategy is ECONOMIZE
- fifth is PLAY,
- And last, sixth design strategy is REFRESH.
- The most known cases in these design strategies curve are Apple for Curate, HP for Integrate and DELL for Economize design strategy.
- So, how should designers convice a CEO of a multinational corporation about investing money into a major design effort? Whole DESIGN AS A PROFESSION
- should be able to VISUALISE STRATEGIC DESIGN THINKING
- How - you probably ask yourself even if your are not a designer. By making an argument about investing money
- into a MAJOR DESIGN EFFORT in order to create a continuous pipeline of innovations.
- What possibilities are available for companies to do that? The first possibility is a model of an ordinary company looking for a return. It looks like this:
- At which point designer is ussually called in? What do you think? At the beginning of the project?
- Most often designer is called in when the brand or product is in decline. The best that could be done, especially in a higly competitive business climate is Y.
- and prolong a bit the life-cycle of the brand or product. The second model is from smart companies.
- Smart companies divert resources from succesful launch teams to start new initiatives – that means
- they compete with themselves.And the third model is from truly visionary companies.
- They invest in the project at the whole beginning, we could say they invest in the DNA around the brand or product.
- leveraging creativity to create a
- continuous pipeline of innovations without reinventing the wheel each time out. So, this is how we got to the end, to the last fifth point. WHY DO WE NEED DESIGN STRATEGIES?
- Because this is the only was to achieve SUSTAINABLE COMPETITIVE ADVANTAGE of your brands, products or services.
- And for the conslusion, my strong believe is that STRATEGIC DESIGN MANAGEMENT must take into account that DESIGN IS CONTINUOUS ELEMENT OF CORPORATE STRATEGY.
- My sources for this presentation were:
- Thank you for your attention in this first presentation.