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using design

build brand value


corporate innovation

bor ja de mozota
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2003 Brigitte Borja de Mozota

All rights reserved. Copyright under Berne Copyright Convention, Universal Copyright Convention, and Pan-
American Copyright Convention. No part of this book may be reproduced, stored in a retrieval system, or
transmitted in any form, or by any means, electronic, mechanical, photocopying, recording, or otherwise,
without prior permission of the publisher.

07 06 05 04 03 5 4 3 2 1

Published by Allworth Press

An imprint of Allworth Communications, Inc.
10 East 23rd Street, New York, NY 10010

Cover and interior page design by Jennifer Moore, Brooklyn, NY

Page composition/typography by Rosanne Pignone, Pro Production

ISBN: 1-58115-283-3

Library of Congress Cataloging-in-Publication Data

Borja de Mozota, Brigitte.
Design management: using design to build brand value and corporate innovation /
Brigitte Borja de Mozota.
p. cm.
Includes bibliographical references.
ISBN 1-58115-283-3 (pbk.)
1. Manufacturing processes. 2. Design, Industrial. I. Title.
TS183.B56 2003
658.5'752dc22 2003020913
Printed in Canada
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table of contents

acknowledgments / iv
foreword / v
preface / vi

part i: the fundamentals of design management

Chapter 1 / 2
the field of design
Chapter 2 / 21
the history of design: portraits of entrepreneurs
Chapter 3 / 40
design and business performance
Chapter 4 / 67
design management

part ii: the value of design

Chapter 5 / 81
design and marketing: differentiation through design
Chapter 6 / 114
design and innovation: coordination through design
Chapter 7 / 142
design and strategy: transformation through design

part iii: design management in practice

Chapter 8 / 167
the design firm
Chapter 9 / 186
operational design management
Chapter 10 / 214
functional design management: managing the design department
Chapter 11 / 238
strategic design management
Conclusion / 258
Bibliography / 261
Index / 276

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would like to thank for their early and continuing support, my friends and
I members of the Design Management Institute board:

Timothy Bachman
Jean Lon Bouchenoire
Bonnie Briggs
David Carvalho
Vincent Crance
Maguy Gabillard
Fennemiek Gommer
Lee Green
Yo Kaminagai
Judith Klappen
Sanjeev Malhotra
Ron Newman
Mark Oldach
Paul Porter
Earl Powell
Robyn Robins
Grard Vergneau
Gianfranco Zaccai

I would also like to thank Andrea Levy, who worked on the translation of Chapter 4,
and, my beloved family: Maxime, Aurore, and Rodrigue.

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he Design Management Institute (DMI), since its founding in 1975,

T has literally built the foundation of the design management profession.

DMI is an independent, non-profit organization with members and con-
stituents, as well as education and research programs around the globe.
From this independent position, DMI works with a variety of institutions and orga-
nizations to help design managers become leaders in their professions and business
managers effectively utilize design for business success.
Our publishing partnership with Allworth Press is an important opportunity
to further the Institutes commitment to continuously advancing the profession
and the understanding of the crucial role of design in business. Because Design
Management is the first book to bring together the theory and practice of design
management, it is a perfect project for the Institute to help make available to read-
ers. We are pleased indeed to be the copublishers of this invaluable resource.

Earl N. Powell, Doc. Letters (Hon.)

Design Management Institute

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his book should have been titled 33 in tribute to the thirty-three com-

T panies that agreed to be researched during the 1997 European Design Prize
competition. Although all were well known for the excellence of their prod-
uct design, the research revealed that they were not managing design in the
same way. Out of the methods of all these thirty-three companies, a model was
devised: the three-level model for design success that constitutes the backbone of
this book.
The first part of the book describes the field of design: the difference between
design as a process and the output of that process; the skills designers possess, and
what can be learned from the history of design; and, finally, because good design is
good business, the importance of design relations, company performance, and
design management.
The second part of the book explains how design creates value in an organization
when the organization follows the model for value creation: design as differentiator;
design as coordinator; and design as transformer. Theories, concepts, and studies
relevant to this area of design management are developed in detail.
Design as differentiator. When design strategy aims to create a better brand,
improving product, packaging, or service performance, it increases the financial
value by boosting sales, exports, and customer-perceived value.
Design as coordinator. When design strategy aims to manage change in the
innovation process, it acts as an efficient tool for the management of new product
development. Design creates value because it helps coordinate functions and avoid
conflicts, encourages cross-disciplinary teams, and improves communications
among the designers in a project team. Design is linked to company process man-
agement and customer-oriented innovation management.
Design as transformer. When design strategy creates value by improving the
relationship between the company and its environment, anticipating a clear vision
of future markets and competition, creating new markets, and forecasting trends, it
generates substantial strategic value, which can have a direct effect on the organiza-
tions positioning. Design contributes to the management of change and to the
learning process in organizations.
Part 3 is practical and professionally oriented. It develops design management
tools that marketers, business managers, and design managers can use in their
decision-making processes when managing design projects. This section covers
how to develop a design project in terms of its operations (operational design man-
agement), how to manage a design department (functional design management),
and how to develop a design strategy (strategic design management).
In sum, this book explains the different ways companies can implement design
to be successful. Thanks to the thirty-three!