IDI Creative Axis - Institute of Designers in Ireland

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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
DESIGNINNOVATION23grow, the research found that these companiesare also more likely to increase theirinvestment in design. 21% of Irish SMEssignificantly increased their investment indesign in the past year. When looking at thisin relation to growth, it was found that 35%of SMEs reporting increased turnover havesignificantly increased their investmentin design. Looking ahead one year, while43% of all SMEs are planning to increasetheir investment in design, this compareswith 60% for SMEs planning to grow rapidlyin the next year.The research also shows that some formsof design-use lead to more growth than others.As part of this research we adopted a ‘designladder’ model to illustrate that there is animportant distinction to be made betweenthe different levels at which companies usedesign. The higher the step on the ladder, themore strategic the design implementationwithin a company. The research tells us thatthe more strategic the implementation is, themore likely a company is to experience growthin demand for their products and services.Currently only 15% of Irish SMEs haveachieved the highest rung of the ladder,meaning that many more could be targetingadditional growth by climbing a little higher.SMEs that strategically use design are 2.5times more likely to experience growth indemand for their products/services than nogrowth.This compares with SMEs not usingdesign. These SMEs are nearly 4 times morelikely to experience no-growth than companiesthat use design strategicallyOne of the most interesting findings from theresearch is that the majority of SMEs attitudestowards design is positive, in so far as theyperceive that design has the potential to addvalue to their organisation. Yet very few areunwilling or unable to implement it at a morestrategic level. For example 78% of SMEsthink that design is important for stayingahead of the competition, yet only 15% planto significantly increase their investment in it.As with most research, this research raisesmore questions than it answers. Why when thebenefits of design are evident, do Irish SMEsnot use design more effectively? We don’tknow the complete answer to this question.The research suggests a combination offactors, aversion to risk, inadequate supportmechanisms and limited design andinnovation capability both within companiesand nationally. This we do now – in the globalcontext, the Irish economy is becoming lesscompetitive: our ability to differentiate ourproducts and services is declining. How muchlonger can we ignore the ‘design difference’and the value and benefits that it offers?What is the Centre forDesign Innovation?The Centre for Design Innovation is the National centre of excellence for the research,understanding and promotion of the effective use of design. Its research programmesfocus on delivering compelling proof of the tangible and intangible impact design canhave within Irish businesses and the public sector.Complementing this academic research is an action-based learning programme calledInnovation by Design. This will be implemented as a pilot among a portfolio of companiesin the Northwest of Ireland. The programme will provide design tools and methodologiesto participating companies to enable them to innovate more successfully. The output willbe a range of high quality case studies that tell a much more human story of the impactthat design can have within organisations; these will form the basis of ongoing advocacyto raise awareness amongst policy makers and managers.www.designinnovation.ieContact informationToby Scott – Director of Centre for Design InnovationT:+353 353-71-91-55496,E: toby@designinnovation.ieResearch questions should be directed to:Dr. David Tormey, Research Manager,T:+353 353-71-91-55496,E: david@designinnovation.ieEye, the international review of graphic designPacked with inspiring images and incisive writing, Eye is the essential quarterlymagazine for anyone interested in graphic design and visual culture. Every issue of Eyefeatures interviews and profiles; history and polemic; with regular contributions fromacclaimed writers as well as world leading practitioners.IDI members offer*We are delighted to announce that the IDI has teamed up with Eye magazine, theinternational review of graphic design. Members can now benefit from a specialsubscription offer to Eye. An annual collection of Eye for just €83, a saving of 15%.For full details of the offer please call +44 (0)208 606 7500 or emailsubscriptions@haynet.com quoting reference EYEIDIM6.www.haysubs.com/eyeidim6IDI student offerStudents visiting the IDI can also subscribe to Eye for the fantastic student priceof €68.60, a 30% discount on Eye's subscription price.*For full details of the offer call +44 (0)208 606 7500 or emailsubscriptions@haynet.com quoting reference EYEIDIS6.(proof of college place required)www.haysubs.com/eyeidis6* offer ends 31 December 2007Contact at EyeVictoria McDougallT: +44 (0) 208 267 4914E: victoria.mcdougall@haymarket.com
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Page 9 and 10: EDUCATION7Shaping Perceptions -Oppo
Page 11 and 12: REGIONALNEWS9Students who successfu
Page 13 and 14: PAST PRESISDENTS11takes us into a s
Page 15 and 16: FRANK RYAN13through the foundation
Page 17 and 18: EVENTS15father of thematic exhibiti
Page 19 and 20: RICHARDSEYMOUR17do’. To demonstra
Page 21 and 22: EVENTS19Is Rome burning? Are design
Page 23: EVENTS21Report on Intellectual Prop
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Page 29 and 30: CANDY27Oliver Jeffers and many many
Page 31 and 32: DESIGNWEEK29The Morrison for Koewei
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IDI Creative Axis - Institute of Designers in Ireland

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