1st International Design Management Symposium,

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1st International Design Management
Symposium, Shanghai 2006 ???????????
John Heskett Chair Professor of Design
??????? The Hong Kong Polytechnic University
??????
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TEN STEPS TO HEAVEN Managing design for
innovation.
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• Question 1.
• What is design?
• ???
• ?????

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Design as Art?
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or Art as Cosmetic Design? ???????????
????Jonathan Adler
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????????Dior????,????????????????????????,????????
??????????????????????,??,??????????????????
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Design as Art ??????
Form ??
ShapeColor Texture Trends Meaning
Design Tools? ? ? ?

Aesthetics Styling Decoration
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Design as a Complex Business Activity ???????????
Industrial / Product Design ?? / ????
Form ??
Function ??
Marketability ???
Manufacturability ???
ShapeColor Texture Trends Meaning
Use Purpose Ergonomics Environment Lifestyle
Materials Process Technology Durability Reliabilit
y
Price Position Competition Distribution Brand
Design Tools? ? ? ?




Aesthetics Styling Decoration
Interaction User-centred Ergonomics
Engineering Economy Recycling
Strategic Design Systems Design Cultural Factors
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• Question 2.
• How do you know what new products to develop?
• Maybe you have a good idea (but how do you know
  if other people will think it a good idea?)
• Or you might need to do some research.
• ???
• ??????????????
• ??????????? (??,????????
• ?????)
• ????????????

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• Research
• Market research
• What others are doing
• Technological trends
• New possibilities
• Social/cultural trends
• What is happening in society
• User observation
• Discovering and understanding needs

• ? ?
• ????
• ?????????
• ????
• ?????
• ??/????
• ??????????
• ????
• ????????

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Research

• Research is a basis for creative solutions that
  can have very different characteristics.
• ??????????????????,???????????
• A simple example
• How to extract juice from a lemon.
• ???????
• ???????.

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Research
? ?

• How to extract juice from a lemon.
• Press a lemon.
• Separate juice from the pulp and seeds.
• Apply juice to further use.
• ????????
• ???
• - ??????????????
• - ?????????

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Which works best? ?????? Which would you
buy? ???????
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• Question 3.
• What kind of designers do you need?
• ???
• ????????????

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engineering design, product design, industrial
design, ceramic design, decorative design,
graphic design, illustration design, information
design, typographic design, advertising design,
packaging design, brand design, interior design,
fashion design, textile design, pattern design,
software design, systems design, interactive
design,
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• Question 4.
• Where do you position design in your company?
• ???
• ?????????????

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Diversity and Choice
??????

• Design is diverse, it has many aspects, which can
  be confusing
• ????????,??????,????????
• but it also offers many strategic choices
• ?????????????
• so you need to take decisions that are right for
  your company.
• ??????????????????

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Different levels of design practice 1
????????? 1
STRATEGIC EMPHASIS ? ? ? ? ?
Innovative Products ????
ORGANISATIONAL EMPHASIS ? ? ? ? ? ? ?
Corporate-wide Strategies ???????
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Different levels of design practice 2
????????? 2
STRATEGIC EMPHASIS ? ? ? ? ?
Innovative Products ????
ORGANISATIONAL EMPHASIS ? ? ? ? ? ? ?
Product Line Strategies ?????? ??
Corporate-wide Strategies ???????
Existing products ????
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Different levels of design practice 3
????????? 3
STRATEGIC EMPHASIS ? ? ? ? ?
Innovative Products ????
??????????
???????
ORGANISATIONAL EMPHASIS ? ? ? ? ? ? ?
Product Line Strategies ?????? ??
Corporate-wide Strategies ???????
?????????
???? ???
Existing products ????
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Different levels of design practice 4
????????? 4
STRATEGIC EMPHASIS ? ? ? ? ?
Innovative Products ????
??????????
????????
Designer as Planner
Designer as Differentiator
ORGANISATIONAL EMPHASIS ? ? ? ? ? ? ?
Product Line Strategies ?????? ??
Corporate-wide Strategies ???????
Designer as Interpreter
Designer as System Creator
????? ???
????? ?????
Existing products ????
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Different levels of design practice 5
????????? 5
STRATEGIC EMPHASIS ? ? ? ? ?
Innovative Products ????
ODM ?????
OSM ????
??????????
????????
Designer as Planner
Designer as Differentiator
ORGANISATIONAL EMPHASIS ? ? ? ? ? ? ?
Product Line Strategies ?????? ??
Corporate-wide Strategies ???????
Designer as Interpreter
Designer as System Creator
OBM ????
OEM ?????
????? ???
????? ?????
Existing products ????
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Different Levels of Corporate Activity
?????????
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• Question 5.
• What should be the role of design in product
  development?
• ???
• ???????????????

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Product Development
????
High ?
Cost of development ????
Possibility of Decision change ??????????
Marketing and distribution ?????
Decisions and costs ?????
Get decisions right ?????
Avoid changes ????
Low ?
Market launch????
Concept ??
Time ??
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• Question 6.
• Do you want to add or create value?
• ???
• ???????????

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Adding and Creating Value
???????
Adding value Modifying existing products and
systems in current markets Creating value
Opening new markets
? ? ?????????????? ????
?????
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• Question 7.
• How to manage design for adding or creating
  value?
• ???
• ???????????????

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Adding Value 1
?? 1
Existing Market ? ? ? ?
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Adding Value 2
?? 2
Existing Market ? ? ? ?
Market Share ?????
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Adding Value 3
?? 3
Existing Market ? ? ? ?
ProductCovering ????
Product????Churning
Market Share ?????
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• Creating value
• Markets do not exist,
• they are created.
• ????
• ??????,
• ???????

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Creating Value - Extending the Market 1
???????? 1
New Technology
???
Existing Market ? ? ? ?
Market Share ?????
New Concepts Of Use
New Products
???
?????
??? ??
New Outlets
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Creating Value - Extending the Market 2
???????? 2
New Technology
???
New Markets ???
New Value ???
Existing Market ? ? ? ?
Market Share ?????
New Concepts Of Use
New Products
???
?????
??? ??
New Outlets
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• Question 8. ???
• New value who decides what is value?
• ???? ??????????? ?

?????? ????? ?? ?????
Is your business producer-centred
or user-centred?
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Generic Value Chain as developed by McKinsey Co.
? McKinsey Co. ????????
???? ???? ?? ?? ??
??
Technology Product
Manufacturing Marketing
Distribution Service Developmt
Design
- Source - Sophistication - Patents - Product/
Process choices

• - Function
• Physical
• characteristics
• - Aesthetics
• - Quality

• - Integration
• - Raw materials
• - Capacity
• - Location
• - Procurement
• Parts production
• Assembly

• - Prices
• Advertising/
• Promotion
• - Sales force
• Package
• Brand

• - Warranty
• - Speed
• Captive/
• independent
• - Prices

- Channels - Integration - Inventory -
Warehousing - Transport
From Jay B. Barney. Gaining and Sustaining
Competitive Advantage. Reading, MA Addison
Wesley, 1996,p.176.
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Changes in Business Patterns 1 ??????? 1
CONVENTIONAL VIEW ????
Targeted consumers
Distribution channel
Company
Design
Supply base
??? ??
?? ????
????
Supply- chain management
Consumer firewall
????
?????
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Changes in Business Patterns 1 ??????? 1
CONVENTIONAL VIEW ????
Targeted consumers
Distribution channel
Company
Design
Supply base
??? ??
?? ????
????
Supply-chain management
Consumer firewall
?????
????
NEW VIEW ???
Business and private users
Design
Company
??
??
???????
Multiple Channels
Supplier network
?????
????
Adapted from C K Prahalad Venkatram Ramaswamy
M S Krishnan Consumer centricity,
InformationWeek Apr 10, 2000.
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Changes in the Roles of Designers ????????
Conventional View Designers creating
forms New View Designers creating systems
enabling users to take vital decisions Both
will continue to coexist for the foreseeable
future.

• ????
• ?????????
• ???
• ????????????????????
• ????????????

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Peter Drucker
"Quality" in a product or service is not what the
supplier puts in. It is what the customer gets
out and is willing to pay for. A product is not
"quality" because it is hard to make and costs a
lot of money, as manufacturers typically believe.
That is incompetence. Customers pay only for
what is of use to them and gives them value.
Nothing else constitutes "quality. ???????????
????????????????????????????????????????????????
??????????????????????????????????????????? Dru
cker, Peter F. Innovation and Entrepreneurship
Practice and Principles. New York Harper
Row,1986, p.228.
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Question 9 How can the viewpoints of business
and user be reconciled? ??? ????????????????
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Context of Design Practice Production
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Context of Design Practice Use
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Context of Design Practice Production and Use
??????? ? ? ? ? ?
Utility ??
Economic Value ????
Users ??
Designers ???
Systems ??
Meaning ??
Technology ??
Institutions ??
Context of Use ????
Context of production ????
Profit ??
Human Values ????
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Context of Design Practice Interface
???????? ?
Utility ??
Economic Value ????
Users ??
Designers ???
? ?
Systems ??
Meaning ??
Technology ??
Institutions ??
Context of Use ????
Context of production ????
Profit ??
Human Values ????
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??????
Linking Design Strategy
Perception ??
Design
Advertising
Purchase
Company ??
Communication ??
Market ??
User ??
??
??
??
Interface ??
Interface
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The Context of Design 2
????? 2
Financial Institutions????
Security
Brand ??
Integrity
Quality
Image
Potential
Profitability
Recognition
Perception
Advert-ising
Techno-logy
Design
Purchase
Company ??
Commun-ication ??
Market ??
User ??
RD ????
??
??
??
??
Interface
Structures
Patent Protection
Fashion
Constraints
Compatibility
Taste
Law ??
Culture ??
Acceptable values
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• Some examples
• ????

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OEM Production
?????
LTK Electric Wire (Huizhou) Ltd. Wire and cable
plant, Shenzhen, China.
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ODM - From Commodities to Design Eaglebrook,
USA ????? - ??????? Eaglebrook, USA
Dale Fahnstrom design New product
line Simple technology (aluminium sand-casting)
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OBM - Design and Brand Fiskars, Finland ???? -
????? Fiskars, Finland
Cutting tools Design in all aspects of
company activities
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OSM - Design as Strategy Braun, Germany ???? -
??????
Braun AB7 clock
Braun Blood Pressure Monitor
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Home medical Clocks Lighters Personal
care Flashlights Photo Appliances Shavers Ra
dios
1950 1960
1970 1980
1990
2000
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• Question 10
• The Biggest of them All
• What can design contribute to the future of your
  company?

??? ??????? ?????????????????
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Some Conclusions
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• Choose a designer who is creative and a
  business professional.
• Design can help transform businesses by
  enhancing competitiveness and profitability.
• But it can do this only as an integral element
  of strategy in every aspect of a business.
• Intelligent management of design is necessary
  as part of overall intelligent management.
• Users determine value.

• ????????????????????
• ?????????????????????
• ??,?????????????????????,?????
• ??????????????????????
• ????????

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Last Question How long will this take? Dont
expect overnight success ?????? ????? ???????????
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• There is a lack of the creative will that has to
  be expressed in the companys entire expression
  of life. That takes time, it takes years, it
  takes patience.????????????,????????????,????,
  ?????
• Jürgen W. Braun, FSB

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The end ?