What we know (and what we need to know) about the management of design in the 21st Century Professor Alison Rieple University of Westminster 11th February 2009 Design management is relatively under-conceptualised • Lacks strong theoretical framework – c.f. marketing or even branding theory – over-reliant on illustrative case studies • Very little cross-sectional, quantitative, research – needs more, more academic, journals / outlets Key business developments in the 21st century • The increasing economic importance of developing countries (BRIC) – and therefore the declining role of developed countries? • Location of innovation / new product development – Open innovation (open design?) – Outsourcing • Low cost or to the location of expertise? Key business developments in the 21st century (contd.) • The development of regional economic specialisms – Korea as a ‘design hub’ – product innovation in China – fashion design in India • Adding value in new ways – business model / organisation / value chain design – service design How does design affect people • How can service design be used to influence consumer emotions – customer touch-points – design of staff contact / movement / location • How can workplace design be used to influence employee behaviour – motivation, physical movement, knowledge sharing , creating fun (humour -> creativity) How does design affect people (contd.) • Relationship between design attributes and consumer affect / behaviour not well understood – in one survey of products that consumers ‘had to have’, 70% said it was because of the design • international implications? – photo-elicitation methods comparing shoe retailers international windows’ design • demographic implications? – with younger people (18 to 29), the influence of design was even more pronounced • The attractor value of aesthetics – (Fashion) design elements increasingly being adopted by non fashion companies – toothpaste, chocolate boutiques, hotels Very few studies have assessed the economic value-added of design • Brand consultancies have placed large values on ‘brands’ – but are consumers loyal to the ‘brand’ or to the product? – therefore, is brand value really design value? • One or two honourable exceptions – Design Council survey: design tops the list of key success factors in 16% of firms. Among “rapidly growing” businesses 47% rank it first. – Hertenstein, Platt, and Veryzer correlated industrial design effectiveness and performance What makes designers powerful • Strategic contingency theory says that power accrues to those units / individuals able to increase the organisation’s effectiveness – therefore what specific designer behaviours / attributes are most effective in what context? The structure of the design function • Are there correlations between design status / location and organisational performance – Apple, Sony, and Samsung design directors report to the CEO – is this a coincidence? • What is the most effective structure for the design function for specific organisation typologies – Defenders / prospectors/ analysers – industry type – In-house or outsourced? Design knowledge • How is design knowledge transferred – role of design clusters – Design-driven innovation (as opposed to userdriven innovation) needs to access broader social trends • how is this best done • How do design fashions become mainstream • Role of cultural intermediaries in setting a value on particular aesthetic We know that designers are different from many other organisational groups • Innovative problem-solving styles – what coping behaviours do designers use • We know that designers are often not well integrated into organisational decision-making – so what do the most effective designers do • language • micro-political behaviours • appearance Adaptors and Innovators • Adaptors provide solutions that depend on generally-agreed paradigms, and therefore are more readily accepted by most. – Innovate within rules – Concerned to make existing things better • Innovators’ ideas are less closely related to the group’s prevailing paradigms and consequently are more strongly resisted. – Break rules – Not overly concerned with what has gone before Comparison KAI occupational group scores • Branch Bank Managers, Civil Manufacturing Managers, Plant Machine Superintendents, Production Accounts Supervisors, Maintenance Programmers, Cost accountants • Nurses • General population • Managers generally • Teachers • R& D professionals • Personnel • Finance • Marketing • Planning • Design managers • R&D Managers (Special Project Teams) Servants, Managers, Managers, Engineers, 80-90 92 95 96 97 101 103 105 106 110 111 112-115 Finally …. design and management • “Management resembles design because it, too, is the process by which we devise courses of action aimed at changing existing situations into preferred ones; or in other words, the process by which we initiate change in manmade things. If this hypothesis is true, then it will become the meeting point between the two domains”