Design’s Role in Business Performance

I would like to share some thoughts from a design management conference I just had the pleasure to attend. The topic was “Improving and Measuring Design’s Role in Business Performance“. Though there were several great case studies illustrating how design had contributed to a company’s success (BMW, Helly Hansen, Patagonia) what always accompanied these stories was the reality that the methods to measure design success were invariably both tangible and intangible, both qualitative and quantitative.

At the conference this was exemplified by success stories provided by the UK and Danish Design Councils who have ample proof of design’s impact on business. Their research and experience shows a direct correlation between the use of design and three key business indicators: higher turnover, faster growth, and higher export rate.

The design management profession realizes that to build the business case for design with non-design senior management metrics are needed that are tied to the bottom line…metrics that drive profit. However, it is important not to lose site of the more intangible benefits of design and the design activities that contribute to these. As design is creativity-based with innovation often its output the measurement of the efforts tied to sales are often difficult at best to quantify. To successfully manage the use of design in business requires a combination of strategic/analytical and creative skills.

A summary of areas explored where design can have an impact and ways to measure it include the 10 areas listed below. There will be follow on information on specific methods within these that designers can bring to bear on selling the business case.

• Design’s influence on the purchasing decision or the purchasing emotion
• How it enables strategy (new markets)
• Enabler of product and service innovation
• Reputation/Awareness/brand value
• Time to market/process improvement
• Customer satisfaction
• Cost savings/ROI
• Developing communities of customers
• Good design is good for all: triple bottom line accounting for social, environmental, and business impact

Good design improves competitiveness in a global economy. Though globalization provides the benefits of cheap imports produced by low-wage employees who are continually increasing the level of their skills, there is an opportunity for companies in countries advanced in design to create higher or new value through well-designed products and services. Companies are obliged to be more efficient and innovative. To this end companies like Molecular are very well placed to provide this higher value to companies willing to invest in our design capital. Many of our current corporate initiatives are aimed at this challenge right now especially around innovation, global services, Isobar networking, and services growth. Our recognition that experience is more than just user experience and that the impact of digital/interactive on business is growing rapidly puts us in a very good place right now.Thanks,

Brian

Posted By Brian Gillespie At 10:54 AM