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Modelling the Strategic Impacts of Design in Businesses

Finland

 

This case study is featured in SEE Policy Booklet 3: Evaluating Design (November 2010).

 

 

The MUSA research project – Modelling the Strategic Impacts of Design in Businesses – is part of the Design 2005 technology programme, launched in 2002 by Tekes, the National Technology Agency of Finland, and one of the key measures in the national design policy (Design 2005!). The objective of the national design policy programme was to establish a dynamic system of design in Finland to enable the nation to achieve the status of a forerunner in using design, and to improve the competitiveness of Finnish industry through design. The research project focuses on the impacts of design in different types of companies and is aimed at ascertaining the economic benefits of design to businesses. The primary goal, and the result of this research project, is the ‘Evaluation Model for the Strategic Impacts of Design’. The purpose was to find causal connections between design usage and its results and to separate the impact from other functions that influence success. The project is being carried out at Aalto University School of Art and Design by the Designium Innovation Centre in co-operation with MUOVA, the Western Finland Design Centre. In order to find reliable indicators showing the impacts of design, the case company structure involves several different businesses, mostly export.

 With this analytical tool, the use of design in a company can be modelled and links can be drawn between design drivers, the use of design in company processes and the results. The model contains the indicators with which the impacts of design can be assessed and consists of three main elements:

 -              Drivers, which concern the reasons why design usage can be profitable in different strategic situations, including market imperatives and corporate values

-              Enablers, which deal with a company’s design usage: design in vision and strategy development, design management and operative design usage

-              Results, which concern the measurement of design results, including external results such as customer results and financial results as well as internal process results. Financial indicators include net sales, ROI and share price.

Focusing on results, the evaluation of financial benefit is connected to the added value that design is able to bring to the customer and company. Measurements can be calculated as savings from design usage, such as in production or product development costs, estimating the profits due to extending the lifespan of a product or its technology and the coverage in the competing product segment. The results of the study highlighted that it is difficult to separate design’s contribution from that of other disciplines and that the performance of a product or brand is dependent on excellence and seamless cooperation across all functions. The companies under examination did not have a systematic method for evaluating design impact. The study highlighted that defining clear targets at the outset of a design intervention is crucial for developing measures that can indicate the strategic impact of design. This research has elaborated a framework that companies can employ to assess the effects of their design activity as a whole: design drivers, operative design usage, internal and external results, customer satisfaction and financial benefits. The Evaluation Model for the Strategic Impacts of Design will undergo more testing in the future.

 

For more information visit: http://www.taik.fi/palvelut/innovaatiokeskus_designium/julkaisut.html

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