IDI Creative Axis - Institute of Designers in Ireland

22 DESIGN INNOVATIONThe Design DifferenceWouldn’t it be nice if designers were able to say to a client, apolitician or the press: “This is the value that our work brings to you?”.That is just what the Centre for DesignInnovation wants to do. The first output oftheir research work has just been publishedwhich answers the big question by showingthat companies that use design are moresuccessful than those who do not.Of course many people have been sayingthis for a long time, not least members of theIDI; it has even been finding its way intopolicy papers:‘The systematic use of design can offercompanies significant benefits, helping them todifferentiate their products, deliver efficienciesand reduce costs. Firms in Ireland are relativelyweak in the strategic use of design’Ahead of the Curve, Enterprise StrategyGroup, 2004.Sadly, this has not been supported byany kind of compelling proof or led tospecific action, and this is what the Centrewants to address.Last October the Centre for DesignInnovation commissioned a survey of a sampleof 405 SMEs from a range of different sectorslocated in both the Republic and NorthernIreland. Weightings were applied to the datagained from our sample as to reflect arepresentation for an entire Irish SMEpopulation. The brief of our survey was toexamine the relationship between design andinnovation and how it correlates to businessperformance. The primary finding of oursurvey was that Irish companies that usedesign experience more success that thosethat do not. The research tells us thatcompanies using design are less risk averseand more likely to be developing new productsand services. It also tells us that they are lesslikely to be competing on the basis of price.The findings suggest that they are growingand succeeding because they are innovatingand moving. They are not waiting on thechallenges of the global economy; they areusing design to meet them head on.However, the research also shows that only15% of Irish SMEs use design strategically,that is where design is used to drive allbusiness activities to better understand userneeds. Despite widespread recognition thatdesign substantially increasescompetitiveness, the majority of Irish SMEsare either unable or unwilling to integrate itstrategically into their current businessmodels. There also lies the crux, the elementalchallenge facing Irish business leaders andpolicymakers as they seek to push the Irisheconomy up ‘the value chain’. Success hingeson bridging the gap between attitude andaction, between understanding and exploitingthe full benefits of design led innovation.So let look at some of the figures. Forexample, 78% of SMEs that use designbrought new products and services to marketin the past three years. This compares withjust 51% of SMEs not using design. How isthis linked to growth?. 72% of businessdeveloping new products and servicesexperienced growth, this is quite a bit higherthat the 56% of businesses that developed nonew products or services. When it comes tocompeting, the majority of those SMEs thatare growing maintain that design andinnovation sharpens their competitive edge.For example 46% of companies experiencing agrowth in demand for their products andservices said innovation to a great extentenabled them to maintain competitiveness. Incontrast only 28% of no-growth companiessaid the same. Similarly, 47% of companiesexperiencing significant growth said design toa great extent enabled them to maintaincompetitiveness. This compares with only30% of no-growth companies.When looking at SMEs that are planning to