CREATING VALUE BY DESIGN:

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1 November, 2008 CREATING VALUE BY DESIGN: John Heskett School of Design, Hong Kong Polytechnic University

2 Economic Value

3 Design as Art? New York Times Magazine 1 Dec. 2002

4 or Art as Cosmetic Design? I chose to redesign a toilet, because even though everyone has one, they re always so dreary: I wanted to create a cheerful

5 or Art as Cosmetic Design? I chose to redesign a toilet, because even though everyone has one, they re always so dreary: I wanted to create a cheerful

6 Design Design as Art as Art? Form Colour Shape Trends Texture Meaning Design Tools Aesthetics Styling Decoration

7 Economic Value The overwhelming majority of design work takes place in a business context. Therefore it must be judged in terms of its contribution to the factors that measure company success, such as profitability, innovation and competitiveness.

8 Design as a Complex Business Activity Toilet bowl and toilet brush, two of more than one hundred and twenty products designed by Ross Lovegrove for VitrA, a Turkish sanitary ware manufacturer.

9 Design as a Complex Business Activity Design as a Complex Business Activity Industrial Design Form Function Manufacturing Marketing Colour Shape Trends Texture Meaning Use Purpose Ergonomics Environment Lifestyle Materials Process Durability Reliability Materials Price Position Competition Distribution Brand Design Tools Aesthetics Styling Decoration Interaction Human factors User-centredness Engineering Economy Recycling Strategic Planning Systems design Cultural research

10 Product Value

11 Product Value 1 The most basic and obvious role of design is in creating a differentiated visual image in what are often crowded markets filled with many competing products. This function, however, can be purely superficial and short-term, without any longterm competitive perspective.

12 Which works best? Which would you buy?

13 Product Value 2 Different approaches to design can be adapted to the needs of different kinds of companies with highly differentiated products, technologies, markets and customers. Design can be a major contributor in moving from basic commodities that are heavily price dependent to developing distinct or unique products that give a degree of control through quality and price setting.

14 Process Value

15 Strategic Value

16 Strategic Value Adding value or creating value?

17 Strategic Value 2 Four broad strategies can illustrate some varied possibilities in managing design as an integrated corporate resource with the purpose of adding value in existing markets.

18 Strategic Value 3 Existing Market Inch-up Product Covering Market Share Product Churning Scale-down

19 Strategic Value 5 Creating value Markets do not exist, they are created.

20 Creating Value - Extending the Market 1 New Technology Existing Market New Products Market Share New Concepts Of Use New Outlets

21 Creating Value - Extending the Market 2 New Technology New Value Existing Market New Markets New Products Market Share New Concepts of Use New Systems

22 RISK

23 Brand Value

24 Brand Value Some company brands depend heavily on the contribution of designers not simply for distinctive visual images, but for a consistent, continuing emphasis on quality, reliability and integrity.

25 Design and Brand: Fiskars, Finland Cutting tools Design in all aspects of company activities

26 Personal Value

27 Personal Value 1 What do products contribute to our lives? On the most basic level is the factor of utility how something works, whether it makes life a little easier or more efficient. A washing machine, for example, needs to function well not only in washing cleanly and efficiently, but on factors such as reliability, economy and an interface that creates understanding, giving access to and control over processes.

28 Personal Value 2 A second level of function relates to whether products are capable of generating a sense of pleasure and appropriateness. These factors are heavily influenced by designers, but people also have the capacity to derive or interpret their own sense of meaning.

29 Personal Value 3 Much depends in this regard on two very different design approaches. A widespread view of their role is as form-givers, controlling all aspects of a form, which users basically accept or reject. Another approach is of designers as enablers: constructing systems that allow users to make decisions according to their own preferences and needs. In complex situations, this allows for potentially high flexibility in meeting a spectrum of needs.

30 Social Value

31 Social Value 1 Outside the arena of commercial profit-oriented design is another domain of activity, relating to social provision by governments and other not-forprofit organizations. Here the criteria rest on the contribution the design makes to that elusive factor termed quality-of-life. In commercial terms such considerations can be viewed as an unnecessary cost, but no society can function entirely without a substantial concern for the social dimension of design.

32 Social Value 2 What is it worth in a society to have a government designing documents that are legible, easy-tounderstand and complete? What is the value of road information systems that enable people to travel easily and reliably? What is the value of environments for children to play and learn in well-designed, safe environments and a creative vision of their benefits?

33 Social Value 3 Vienna Strassenbahn by Porsche Design

34 Cultural Value

35 How can the viewpoints of business and user be reconciled?

36 The Role of Design in Business: Production Economic Value Designers Technology Institutions Context of Production

37 The Role of Design in Business: Use Utility Users Systems Meaning Context of Use

38 The Role of Design in Business: Production and Use Value Utility Designers Users Technology Institutions Systems Meaning Context of Production Context of Use Profit Human Values

39 Context of Design Practice: Interface Economic Value Utility Designers Interface Users Technology Institutions Systems Meaning Context of production Context of Use Profit Human Values

40 Linking Design Strategy Perception Company Design Communication Advertising Purchase Market Interface User

41 R&D Brand Culture Law Financial Institutions Potential Technology Security Profitability Design Patent Protection Constraints Acceptable values Compatibility Quality Image Structures Fashion Advert -ising Integrity Recognition The Context of Design 2 Purchase Interface Taste Perception Company Communication Market User R&D Brand Culture Law Financial Institutions Potential Technology Security Profitability Design Patent Protection Constraints Acceptable values Compatibility Quality Image Structures Fashion Advert -ising Integrity Recognition Purchase Interface Taste Perception Company Communication Market User

42 The End

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