1. Mark Watson Design Providence
The Value of Design
Mark Watson
Design Providence

2. What is value ?
The Value of Design

3. "Try not to become a man of success but rather try to become a man of value." (Albert Einstein)
The Value of Design

4. The traditional view on value
Economic / Monetary
The Value of Design

5. The Australian Design Review - 1995
The Value of Design

6. The Value of Design

7. Findings
Design is essential to the process of innovation and a source of competitive advantage to industry. It can improve industry performance, add value, secure market positions, lead to lower product cost and increase revenue and profits.
Broadly, the design process can be thought of as the skilled integration of intelligence and resources to meet the requirements of consumers, industry and the national interest.
The Value of Design

8. The challenge facing Australian industry is to exploit its design potential
in order to redress an unacceptable balance of trade performance. This
potential exists in the way we compete in both export and domestic
markets. It represents opportunity for both small and large businesses.
The Value of Design

9. 'While 80% of professionally designed products are profitable, fewer than 2% of innovations succeed overall‘
and
'While design may represent 5% of the new product investment, the design governs 70% of the subsequent production cost.‘
'Some 90% of consumer decisions at point of sale are based on design appeal criteria with only 10% on technical and operational
The Value of Design

10. Design Management Institute
Hertenstein & Platt 2001
The Value of Design

11. The Value of Design

12. The Value of Design

13. The Value of Design

14. The Value of Design

15. The Value of Design

16. population 2002 = 4.9m
The Value of Design

17. The Value of Design

18. The Value of Design

19. The Value of Design

20. population 2005 = 16.3m
population 2005 = 59.6m
population 2005 = 8.9m
The Value of Design

21. population 2005 = 5.4m
The Value of Design

22. The Value of Design

23. For Holden, one of General Motors smallest subsidiaries and most profitable, the Monaro project marks many revolutionary changes in concept design, product development, product design and engineering. “We had a reputation before the Monaro of being the Commodore Car Company,” said Holden Design Director Mike Simcoe. “Holden was not at the time concept oriented; we were production oriented.” A point not lost on the fact that Holden’s last concept reveal was more than 20 years ago.
The Value of Design

24. Commercial
versus
Domestic
Manufacture
factors
The Value of Design

25. The Value of Design

26. The Value of Design

27. The triple bottom line
The Value of Design

28. Value no. 2 - Social
The Value of Design

29. Value no. 3 - Environmental
The Value of Design

30. Case studies in Best Practice
Design Management in the Victorian Furniture Industries
The Value of Design

31. Research question
Which design management practices and strategies have a significant and positive effect on innovation performance in the Australian and European Furniture Industries?
The Value of Design

32. Proposition 1
Australian Furniture Manufacturing Management has little understanding operationally of New Product Development best practice.
The Value of Design

33. Proposition 2
Design Management best practice will bring Management in the Australian Furniture Manufacturing new tools in NPD.
The Value of Design

34. Proposition 3
Management in Australian Furniture Manufacturing, through experience in design management best practice will control NPD with greater confidence.