IN DESIGN CREATIVITY ALONE

Transcription

1 Creating Prosperity: Talent Development and Cross-sector Collaboration in a Creative Economy. The Bauhinia Foundation, Hong Kong, Sept. 1 st, 2011 IN DESIGN CREATIVITY ALONE IS OF LIMITED VALUE John Heskett Chair Professor and Acting Dean, School of Design, Hong Kong Polytechnic University

2 Economic Value

3 Economic Value 1 What links any commercial business of any kind, is the need to generate economic value, in other words: profit. It is an immutable law of business life: No profit, no survival.

4 Economic Value 2 The overwhelming majority of design work takes place in a business context. Therefore in any business, design must be judged by successful innovation and competitiveness. Designers must function as business professionals, not second-class artists.

5 Design as Art New York Times Magazine 1 Dec. 2002

6 or Art as Cosmetic Design

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

8 Design as Professional Business Activity. Toto Electronic Toilet

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. This function, however, can be purely superficial and short-term, without any longterm competitive perspective. Moreover, in some product sectors, form is no longer the determinant of value.

12 Which works best? Which would you buy? Lies Lies Lies

13 Product Value Product Innovation Level of Innovation Value Means Fundamental New value Original Creation Radical Redefining value Enhanced Function Incremental Adding value Feature Imitation Appropriating value Adaptation

14 Process Value

15 Process Value 1 Change agents Design is implicitly about change, but change, like profit, is not an end in itself. It must be justified as a means by it s content. Post-Sales Value Value derived from design through increased market share, cultural appeal in global markets, and brand building, rather than lower cost.

16 Process Value 2 Support Functions Generating and developing concepts to support the needs of service-systems, such as catalogues and userinstructions. After-sales services can enhance the value of product, e.g. constant software upgrade and worldwide warranty as tools of product differentiation.

17 Process Value 3 Pre-production Sourcing alternative quality material and assuring the feasibility of manufacturing. Risk Reduction Make critical changes before a single unit is actually manufactured, reducing need for change orders.

18 Case study 1. Guangzhou Echom Science & Technology Group Co., Ltd. Echom was founded by an industrial designer and is located near Guangzhou It specializes in research, development and manufacturing of plastic products and moulds. The company mainly produces home appliance casings and automobile parts and is China s largest in these fields. In production of television cabinets it dominates the domestic market, having been leader for five successive years, with 7 million sets securing 33% of the market. its early success was based on design, but soon marketing skills became essential. Then competence in distribution and logistics became necessary.

19 Case study 2 : Kinglong The leading coach and bus manufacturer in China Annual production capacity of 30,000 vehicles In 2006 sold 23,291 coaches with sales revenue of US$9.2 million.

20 Process Comparison Linear process vs. Integrated process

21 Product Development High High possibility of decision change Cost of development Decision changes. Creativity Vision Copious ideas Change Inspiration Implementation Methodology Focused project Established knowledge Research in depth Costs Maximum change possible; Minimum Cost Minimum change Desirable; Maximum Cost Low Get decisions right Avoid changes Low possibility of decision change Concept Time Market launch

22 Strategic Value

23 Strategic Value 1 Collaborators and Synthesizers Design, when used strategically, interacts with a greater number of product creation stakeholders than any other function in an organization. Innovation Collaborative approaches bring an increased likelihood of innovation. Ideas generated by collaborative efforts tend to meet less resistance than those developed in isolation. Shaping Ideas Designers shape and provide meaning to innovative concepts, thereby lessening the potential negative impact of new technology on users.

24 Strategic Value 2 Future Scenarios & Visionaries Communicating what might be rather then altering what is. Research Technology Image Market Users Systems Design Internally, systems design can bring order to administrative, sales and financial activities, making them more sustainable and profitable. Externally it enables cooperation of multiple disciplines on more complex projects.

25 Strategic Value 3 Strategic Planning Design contributions to: Profitability Market efficiency Creditability/Customer loyalty Market value in the stock market

26 User Value

27 Generic Value Chain as developed by McKinsey & Co. Where is there any mention of users in all this? Technology Product Manufacturing Marketing Distribution Service Design - Source - Sophistication - Patents - Product/ Process choices - Function - Physical characteristics - Aesthetics - Quality - Integration - Raw materials - Capacity - Location - Procurement - Parts production - Assembly - Prices - Advertising/ Promotion - Sales force - Package - Brand - Channels - Integration - Inventory - Warehousing - Transport - Warranty - Speed -Captive/ independent - Prices From: Jay B. Barney. Gaining and Sustaining Competitive Advantage. Reading, MA: Addison Wesley, 1996,p.176.

28 Design as Formgiver Company/ Designer Advertising Distribution channel Targeted consumers Retail sale

29 Design as User-centred User Scenarios Company/ Design Advertising Distribution channel Users Concept Retail Implementation Evaluation

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

31 User Value Users Value is in the user s mind and can be derived from personal history and memory. Voice of the User Designers frequently represent the standpoint of users in the product creation phase. Human Factors Designers have developed a range of tools and methods for use in understanding users: Physical Human Factors Perceptual Human Factors Social Human Factors Cultural Human Factors Emotional Human Factors

32 User Value 2 Present Value/Future Value Two approaches to economic value : one is best utilization of existing resources (e.g. reduce cost, improve efficiency and effectiveness); another is enhancement of profitability (designer as visionary to articulate needs not realized by the user). Actual need/latent need Giving users what they didn t know they wanted or never thought they could have. Role of coded and tacit knowledge. Tangible/Intangible Tangible and intangible needs, or material and experiential needs, can be explored on several levels, such as functionality, profitability, social concern, cultural concern, sustainability.

33 Creating value Markets do not exist, they are created.

34 Brand Value

35 Brand and Reality Friends of the Earth?

36 Brand and Reality It is unlikely that a brand will be successful without a basis of quality in product and service. On the other hand, products and services can succeed on the basis of quality without a highly contrived brand identity.

37 Social Value

38 Social Value Vienna Strassenbahn by Porsche Design

39 Cultural Value

40 Cultural Impact: UK telephone call boxes

41 Cultural Value

42 Political Value

43 State Identity - Denmark1 Danish national logo Ministry of Foreign Affairs Finance Ministry Culture Ministry Danish State Railways The Royal Library Royal Theatre

44 State Identity Denmark 2

45 State Services 1: Hong Kong tax form

46 The End E=mail: