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Industrial Design is increasingly being used beyond the traditional remit as a strategic tool which enhances performance and unlocks innovation. Research has begun to examine this interdisciplinary role of design, and future work must aim to understand its full impact on business performance. (article from the UK Design Counsil)
The design industry is a source of innovation Creative sectors such as design are a significant factor in innovation and growth throughout the economy. Where businesses exploit the skills of designers, significant performance benefits have been demonstrated – for example, manufacturers who invest in design see significant outcomes as a result, including improved quality of goods and services, and increased market share.
Good design is a source of competitive advantage Companies that invest in design can avoid competing on price alone. Research has shown that design is a significant source of competitive advantage.
Investing in design allows businesses to compete in numerous ways: - Creating new products and services: Design enables the creation of innovative products and services, allowing companies to open new income streams and compete internationally. According to PricewaterhouseCoopers, top innovators generate over 75 per cent of revenue from products not in existence five years ago.
- Adding value through innovation: Rapidly growing businesses are twice as likely as others to compete on the basis of innovation. Design can enhance the outcomes of numerous innovation activities, bringing benefits such as increased quality of goods and services, improved production flexibility and reduced materials costs.
- Stimulating exports: 51 per cent of Queen’s Award for Export Achievement winners in 2002 directly attributed overseas sales success to their investment in design. Over 90 per cent found that design was valued by their international customers and 86 per cent indicated that design helps them to compete internationally.
- Attracting investment and identifying markets: The Design Council’s business support programme, Designing Demand, has helped technology companies to attract investment by using design to shape strategy based on customer needs and market opportunity.
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