Design in Business

by Greg Branson
In 2010 the Design Business Council conducted a series of design in business workshops where 11 graphic design studio owners were shown the process of conducting a design audit. They were teamed up with 20 manufacturers from the Dandenong area, south east of Melbourne.

The project was based on the premise that good design is an important strategy for business success. The task was to show the designers how their process of design thinking could be applied to the analysis of all aspects of a business. The designers’ ability to understand the user experience and then convert that into a product or piece of communication was the starting point for the program

The program aimed to show that design thinking has a major impact in the design of business itself—the design of strategies and business models. The designers taking part were able to show that by applying design thinking across the whole business - product/service development, marketing, sales, business development, administration and HR, an SME can develop new opportunities, set growth strategies, and evolve the business model to seize market opportunities.

Design for growth
There are forces in the marketplace that are driving change and this is creating the need for new growth strategies. Following are a few of the factors that are changing the business landscape:

1. The internet, mobile communications and social media are all technologies that are dramatically changing the way we connect and the way that business is conducted locally and globally. Virtual access has changed the physical office into work pods offsite and remote. The communication lines of the traditional business are breaking down.


2. This interconnectivity is changing social values with higher performance expectations on corporates. This is in the ethical, social and environmental role that businesses play. Promises made by a business are readily checked and challenged. Business reputation is now a key plank of a business brand.


3. McLuhan's global village has long been a reality. Just like the village of old we can quickly access new markets and expand the call for our services and products. Satellite communications, voice, image and video, from and to mobile devices have rewritten the rules of sourcing and supplying products and service.


4. Consumers expect better, more sophisticated products and services and they want them now. Producers have responded by offering customization across a wide range of products and services. Consumers are looking for complete solutions to meet all of their needs preferably from a single source - just look at the success of eBay.

Unfortunately many Australian businesses are slow to respond to these forces, they are focused on staying in business using models that have been successful. If it isn’t broken don’t mess with it. Many business owners fail to see that the forces changing the landscape are damaging their business. They are not looking at the horizon, just focusing on what is in front of them. Many of their business models are rigid and unable to adapt to change.

However the more dynamic Australian companies are seeking faster, better, more effective means of innovating new products and services as well as new ways to market and distribute them. These businesses are using design for that leverage.

The role of design in business
Research studies in the UK, US and Australia show that the processes and thinking behind great design can be applied to designing a business model. Design in business is about creating a model that will develop products, profit and long term value for the business. The process for developing this model involves analysis, diagnosis, implementation.

The Method: The three touchpoints for design in business
Design in business analysis
This stage uses design thinking to examine the current state of the business. The designer looks at what the business is promising and what it is delivering. From the company mission, vision and values to the receptionist answering the phone the analysis pegs the perception against the reality. Here the designer is using their expertise in understanding the user experience and then translating that understanding into verbal, written and visual language that is easily understood by the business owners and managers.

Design in business diagnosis
This phase looks at the business strategy and examines it on two levels; competitive level and organisational level. The competitive level looks at the products and services offered by the business and their position in the marketplace. The organisation level looks at the people and processes within the business. From this comes a design in business strategy that details how the business will benefit from the integration of design throughout the business.

This is presented in a series of activity system models after that developed by Michael Porter. The example below shows how such a model has been used with Apple to identify all the design thinking behind their product development and marketing.

Design in business implementation
This phase involves the preparation of a business case for design. In this document the business owner is shown the current business environment which is contrasted with the projected business environment after the design strategy is implemented. This section examines the businesses critical success factors and aligns them with the design strategy. This is followed by a risk management statement that covers three scenarios related to the design strategy:

what will happen if we do
what will happen if we don’t
how to manage risks

The business case also gives a cost benefit analysis of the implementation and details how return on design investment will be measured. The RODI is demonstrated by showing design effectiveness measures for the design strategy in that business

This process has been developed and trialled over a five year period with manufacturers, service businesses, educational institutions and retailers.

Greg Branson 2011