The British Columbia Premier’s Technology Council Presents

The Industrial Design Advantage Supplement to the 11th Report 2008

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Index
1.0 executive summary of the ID Advantage . . . . . . . . . . . . 1 6.0 BC Case STudies – The ID Advantage in Action . . . . . . . . 24
2.0 introduction to the ID Advantage . . . . . . . . . . . . . . . . 3 6.1 Angstrom Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
6.2 Greenlight Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2.1 What is Industrial Design? . . . . . . . . . . . . . . . . . . . . . . . . . 3
6.3 StemCell Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . 27
3.0 THE id Advantage . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6.4 Xantrex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3.1 Understanding the ID Advantage . . . . . . . . . . . . . . . . . . . . . 5 6.4.1 Xantrex – GT3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3.2 Benefits – Measuring the ID Advantage . . . . . . . . . . . . . . . . . 6 6.4.2 Xantrex – Powerpacks . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3.2.1 Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7.0 REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
3.2.2 Profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.2.3 Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 8.0 Contact Details . . . . . . . . . . . . . . . . . . . . . . . . . . 37
3.2.4 Stock Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.2.5 Other Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.3 The ID Advantage and Design for the Environment (DfE) . . . . . . . . 12
3.3.1 Drivers of DfE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.3.2 DfE Principles and Methodologies . . . . . . . . . . . . . . . . . . . . . 13
4.0 Managing the ID Advantage . . . . . . . . . . . . . . . . . . . 17
4.1 Annual Investment in ID . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4.2 Managing the Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.3 Managing ID for Success . . . . . . . . . . . . . . . . . . . . . . . . . 19
5.0 The id advantage for bc . . . . . . . . . . . . . . . . . . . . . 21
5.1 Status of ID in BC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.2 Potential for ID in BC . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.3 Where to Go in BC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

< >
1.0 executive summary of the ID Advantage The economic benefits that accrue from ID are distinct and
measurable. These include increased revenue, improved
“Design is not just what it looks like and feels like. profits, better stock performance and higher market share.
In general, industrial design helps companies gain increased
Design is how it works.”
margins through higher prices and lower costs. Higher prices
– Steve Jobs, Apple
can arise from designing products and services with superior
(The New York Times, November 30, 2003)
features, usability, aesthetics or quality compared to those
of competitors. Costs can be lowered by designing products
The Premier’s Technology Council has identified Industrial
and services that maintain quality and functionality but
Design (ID) as an important aspect of successful technology
have lower development, materials, manufacturing
commercialisation. Currently underutilised in BC, ID offers
and transportation costs.
tremendous advantages that could make companies here
more competitive. Another advantage provided by ID is its ability to measure,
validate and improve the environmental sustainability of a
According to the Industrial Designers Society of America
product. Design philosophies such as Life Cycle Assessment
(IDSA), “Industrial Design is the professional service of
and Cradle to Cradle can minimise materials, waste and energy
creating and developing concepts and specifications that
in the production phase, and decrease the negative impact
optimise the function, value and appearance of products and
of products on human health and the environment. These
systems for the mutual benefit of both user and manufacturer.”
sustainable practices are particularly important to BC where
Industrial design, which sometimes overlaps with other design
we believe in an environmentally conscious lifestyle and are
disciplines, is about marrying precision and accuracy with
trying to capture market share on clean technology products.
the look, feel and utility of a product. It would be a mistake
however to think of ID as just making another pretty product;
it is about ensuring the product is user friendly and operates Design has been recognised as one of the key methods
effectively as well.
for companies to gain a competitive advantage.
Around the world companies are using industrial design
and other design disciplines. Positive impacts include
The key to maximising the design advantage is ensuring it
increased product utility, usability and user experience, better
is used effectively. The benefits of design run through the
environmental sustainability, differentiation in the marketplace
product development and production cycle so applying it only
and improved business performance. Due to this wide range
to add veneer to a finished product will not be as effective as
of benefits, design has been recognised as one of the key
integrating design throughout the entire process.
methods for companies to gain a competitive advantage. This
is particularly true in mature sectors where most competitors
have the same technology.

1 / Executive Summary index < >

 In British Columbia the economy has been driven by the
resource based industries with little use of ID. Our technology
sector consists primarily of smaller companies that have a low
awareness regarding the benefits of ID. As a result, investment
in ID has been relatively small. BC’s potential in this area is
demonstrated in some of the early success stories among BC
companies using ID and working with the BC design service
sector. These companies are mainly in outdoor equipment,
transportation, lighting, advanced manufacturing, and high
technology sectors. Other BC sectors that the PTC believes can
benefit from greater use of ID include the broad technology
sector, the clean technology sector, and the resource
industries sector, forestry in particular.

To learn more about the ID Advantage and how to benefit

from it companies can investigate the websites of the British
Columbia Industrial Design Association (BCID) and the
Association of Canadian Industrial Designers (ACID).

Products designed in BC

2 / Executive Summary index < >

2.0 introduction to the ID Advantage
In its recent 11th report the Premier’s Technology Council
examined the effect industrial design (ID) can have on the
growth of local industry. That report highlighted the benefits
that would accrue to BC if it should make a conscious effort to
promote ID and presented some options to government as to
how it might effectively encourage increased usage of ID.
The PTC is quite conscious however, that although government
does have a role to play it is ultimately the business
community and local industry that need to embrace industrial
design. Individual businesses need to understand the benefits
of ID and invest in it. This paper clarifies those benefits and
provides examples.
activities. They can do qualitative research to define market
opportunities and create a range of ideas to capture that
opportunity. They can gather information on customer
behaviour, user preferences and market trends. Once they
have developed the overall concept, they consult with the
client, engineers, or production specialists to establish product
requirements. But they also consider the cost, properties of
production materials and the methods of production. ID is in
fact a complicated field where technical analysis meets look
and feel – where science meets art.
“Design is not just what it looks like and feels like.
Design is how it works.” – Steve Jobs, Apple

2.1 What is Industrial Design?

According to the Industrial Designers Society of America
(IDSA), “Industrial Design is the professional service of creating
and developing concepts and specifications that optimise
the function, value and appearance of products and systems
for the mutual benefit of both user and manufacturer.”1
Industrial design, which sometimes overlaps with other design
disciplines, is about marrying precision and accuracy with the
look, feel and utility of a product. This can be demonstrated
through a recent example of successful ID, the Apple iPod.
This product not only employed cutting edge technology to
create an efficient device for storing and playing mp3s, it did
so in an attractive and easy to use form.

It would be a mistake however to think of ID as just making

another pretty product; it is about ensuring the product is
user friendly and operates effectively as well. In order to
achieve this, the designer undertakes a number of different

3 / Introduction index < >

3.0 THE id Advantage
Around the world companies are using industrial design and
other design disciplines to gain an advantage in the market
place through superior customer experience. Companies use
ID to differentiate from competitors. It helps companies to
create more competitive products that fit with the needs of the
target customers and communicate desired brand values. As a
result ID improves business performance in all key metrics.
We call this the ID Advantage and evidence of its benefits
continues to mount from both academic and industry
studies.2 3 4 5 Positive impacts include increased product
utility, usability and user experience, better environmental
sustainability, differentiation in the market place and improved
business performance. Due to this wide range of benefits,
design has been recognised as one of the few means left for
companies to gain a competitive advantage regardless of the
competitive strategy (cost, differentiation, or market focus)
pursued by the company.
“One of the few hopes companies have to “stand out
from the crowd” is to produce superiorly designed
products for their target markets.” – Kotler and Rath
(1984, p.16)
4 / The ID Advantage
There are several ways to map the benefits of design. For
companies, the most useful is the “Four Powers of Design”
which outlines the following: 6
1. Design as differentiator: Design as a source of competitive
advantage on the market through brand equity, customer
loyalty, price premium, or customer orientation.
2. Design as integrator: Design as a resource that improves
new product development processes (time to market,
building consensus in teams using visualisation skills);
design as a process that favours modular and platform
architecture of product lines, user-oriented innovation
models, and fuzzy, front-end project management.
3. Design as transformer: Design as a resource for creating
new business opportunities; for improving the company’s
ability to cope with change; or (in the case of advanced
design) as an expertise to better interpret the company
and the marketplace.
4. Design as good business: Design as a source of increased
sales and better margins, more brand value, greater
market share, better return on investment (ROI); design
as a resource for society at large (such as inclusive design
and sustainable design).
The first two in particular are used for gaining a competitive
advantage. In the first case the external, market based
advantage is derived from the design driven differentiation
of the company’s product or service. The second set is
more internal and enables a company to gain a competitive
advantage from a unique and difficult-to-imitate combination
of organisational processes and resources driven by
design thinking.
index < >
 Recognising these benefits, several global companies
include design as part of their core strategy. These include
Apple, Philips, Google, DeWalt, Nokia, P&G, Xerox, Sony, LG
and others.7 8 The impact of a strong design program is
demonstrated by success stories from these companies. For
example, the iPod was redesigned for larger capacity and
smaller size. It was launched in spring 2004 and increased
Apple’s brand value by 24% from 2003 to 2004.9 10
3.1 Understanding the ID Advantage
“At Sony, we assume all products of our competitors will
have basically the same technology, price, performance
and features. Design is the only thing that differentiates
one product from another in the market place!”
– Nono Ohga, Chairman and CEO, Sony
(UK Design Council Report, 2007)
Design helps to differentiate and define premium products in
an era when most competitors have the same technology.11 12
In general design helps to differentiate the company through
three key areas.13
1. Competitive Products and Services: ID helps companies
to make products more competitive through improved
usability and ergonomics, aesthetics, higher sustainability
or superior quality compared to those of competitors.
It can decrease production costs and ensure that the
products meet increasing quality constraints. To gain the
greatest competitive advantage ID should be used from
the beginning of the development process right through to
5 / The ID Advantage
the release of the final product. Introducing ID in the final
stage as a mere styling of the end product has a relatively
minor impact.14 15 16
2. Enhanced User Experience: ID also helps exceed user
expectations through the application of good design in
product categories where users have low expectations
for visual appeal, functionality or usability. Companies
have used ID to humanise technology and create customer
loyalty among customer groups that merely expected to
have their functionality expectations fulfilled. It also offers
a means to customise products for local markets.17
3. Strengthened Brand: Design is critical in ensuring that
products and services are aligned with the company brand.
Companies see product design as a mechanism to deliver
a consistent message about the company to customers.
Products represent the brand in consumers’ homes so
brand values are integral aspects of the design process.18
One of the true strengths of design is that, while it can help a
company reduce the price of a product or service, it provides
so many more advantages than just price. An annual survey
among UK companies reveals that the majority of those
who hold design as integral to their strategy do not need to
compete on price. Where design is integral, less than half of
businesses compete mainly on price, compared to two thirds
of those who don’t use design.19 20 21 Although data from the
UK is the most comprehensive it is supported by studies from
other jurisdictions. Finnish manufacturing companies for
example, ranked the ability to differentiate from competitors’
products and services as the most important aspect of design.
This was especially true among SMEs.22
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3.2 Benefits – Measuring the ID Advantage
Several studies prove that ID has positive effects on business
performance measures. These vary from revenue growth
and an increase in market share to new products and stock
performance. In general, industrial design helps companies
gain increased margins through higher prices and lower
costs. Higher prices can arise from designing products and
services with superior features, aesthetics or quality compared
to those of competitors. Costs can be lowered by designing
products and services that maintain quality and functionality
but have lower development, material, manufacturing and
transportation costs.23 24
The primary impacts of design on business performance are
illustrated in figure 1.25

Competitive Financial
Corporate Inputs Result/output Positioning Financial Results Performance

Customer/Product Increased Utility Perceived Value

Design Principles
Interaction (beyond function) by Customer

Aesthetics/
Selling Price
Appearance
Industrial Design Financial Performance
Sales
++ Profit/Sales
Product Demand
Manufacturability (Volume) ++ Profit/Assets
R&D Product Function ++ Cash Flow/Sales
Manufacturing Equipment Assets ++ Cash Flow/Assets
Engineering Expenditures Product Cost
++ Sales Growth
Marketing
++ Profit Growth
Purchasing
++ Cash Flow Growth
Development Costs Expenses ++ Stock market
returns

Figure 1. Impact of Industrial Design

6 / The ID Advantage index < >

 The most extensive annual survey of the effects of ID on Increased Market Share
business performance is done by the UK Design Council. 26 to some extent 46%
To complete this survey, interviews are conducted with 1,500 to a great extent 7%
companies that have 10 or more employees. The results are
weighted to match the national population of businesses with
10 or more employees. The survey includes several fields of Increased Turnover
design from graphic design and industrial design to interior to some extent 44%
design and architecture. In 2005, the survey found that
to a great extent 6%
almost half of the UK businesses believe design contributes
to increased market share (46%) and revenue (44%) during
the 12 months before the study. Additionally one in ten Development of New Markets
companies named at least one area where design made a to some extent 42%
great contribution to business performance. The findings are
presented in more detail in the table 1.
to a great extent 6%

Increased Profit
to some extent 42%
to a great extent 7%

Competitiveness
to some extent 38%
to a great extent 7%

New Products/Services
to some extent 37%
to a great extent 9%

Increased Employment
to some extent 26%
Table 1: Extent of contribution of design to business performance in UK companies 27
to a great extent 3%

7 / The ID Advantage index < >

3.2.1 Revenue Table 2. Gross revenue performance and the purchase of design
in Danish companies 33
Investment in design can contribute significantly to a
company’s revenue. The annual study among UK companies Design Purchasing Number of Gross revenue performance over 5 financial
measured the impact of design on revenue in a number of Behaviour companies years (average in DKK 1,000)’
ways. It revealed that: 28 29 Do not purchase design 241 DKK 4,029
Purchase design internally
++ For every £1 spent by “design alert” (A) companies, revenue 579 DKK 10,298
and/or externally
increased by £2.25. Total 820 DKK 8,455
++ Companies that increased their investment in design were
more likely to experience revenue growth. The gross revenue growth also links to the level of
commitment to design within a company. Danish companies
++ The chance to experience revenue growth increased by
with greater usage perform significantly better than companies
more than threefold if the company used design to lead
which only use design for styling. Moreover, companies that
and guide the product or service development process.
increased design activity achieved an additional 40% increase
++ Design alert companies saw an average revenue growth of in gross revenue compared to companies where design
£602,000. activity was either constant or decreased. This supports
Similar effects have been noted in other jurisdictions. For the assumption that a more systematic approach to design
Finnish metal and manufacturing sector companies, there is provides better economic performance.34
a positive correlation between companies’ design investment
and sales growth.30 In Denmark companies that invested
in design experienced a 22% greater total increase in gross
revenue than companies that did not invest in design over
a five year period (table 2).31 32 There is also a correlation
between increased gross revenue and design purchase
behaviour. While companies using design achieve higher gross
revenue growth rates than those which do not, companies
that purchase design services both internally and externally
achieve the highest rate.

A The ‘design alert businesses’ are specific 250 companies out of the 1,500
businesses thoroughly interviewed in the UK Design Council National Survey
of Firms. In these companies design had made a direct impact on a number of
measures, such as competitiveness, market share, turnover and employment.

8 / The ID Advantage index < >

International Case Study:
Small but Growing Technology Company
JS Humidifiers † ‡
JS Humidifiers, a well-known player in its specialist field, produces equipment that keeps
humidity stable in critical environments, from art galleries and pharmaceutical plants
to textile factories and print works. Competition in the industry is intense and many
competitors have larger resources and more marketing muscle.
JS sought a competitive edge through a product and brand overhaul. They supplemented
their own design team with some outside expertise and targeted their important, but
dated, JetSpray range of products. The resulting design not only looked more modern
but operated more effectively. Capacity was doubled, energy use was halved and the
number of controls were reduced and simplified. Equally important was the design
impact on the manufacturing and supply chain where manufacturing costs were
reduced by 25%.
The ID Advantage: The JetSpray was launched at a major European trade show, where
it generated 300 sales leads and orders worth over £1m.
† UK Design Council, Designing Demand Program,
http://www.designingdemand.org.uk/case_studies/js_humidifiers
‡ JS Humidifiers, http://www.jshumidifiers.com/
9 / The ID Advantage
3.2.2 Profits
Data indicates that ID contributes not only to increased
revenue but also to profits. This performance ratio is
particularly relevant because it incorporates expenditures on
industrial design (industrial design staff salaries, or industrial
design consultants’ fees) and so provides clear proof that the
benefits actually exceed the expenditures.
A seven year study among almost 200 manufacturing
companies submitting filings to the US Securities and
Exchange Commission (SEC) demonstrated that companies
with more effective industrial design (ranking done by
design managers globally) outperformed their counterparts
systematically. For “effective design” companies; the
EBITDA (Earnings before interest, taxes, depreciation, and
amortisation) to Net Sales was on average 75% higher than the
industry average over the seven years. Companies with less
effective ID had a 55% lower ratio than the industry average.
Investment in design can also be measured with Net Income to
Total Assets (ROA) ratio. The study demonstrated a significant
association with ROA and effective industrial design.35
For “effective design” companies in the US; the EBITDA
to Net Sales was on average 75% higher than the
industry average over the seven years.
index < >
3.2.3 Costs
The role of industrial design in creating cost savings is critical
since up to 90%-95% of the product’s production costs are
locked in the design stage.36 Cost savings can be achieved
through improving the manufacturing of the product,
developing new solutions to achieve specific functionality, and
seeking high-quality and low cost materials. Use of design can
also decrease the amount of time needed to bring a product
to market.37 Again the UK design study provides evidence
regarding the impact of design. In some cases the profits
increased more than revenue, thus design trimmed costs
rather than improved sales.38
Up to 90% – 95% of the product’s production costs are
locked in the design stage.
3.2.4 Stock Performance
Another key measure of the positive impact of ID is in its
contribution to the stock performance of a company. The
most extensive proof for this is the Design Index created by
the UK Design Council.39 40 The index includes 61 design-
led businesses traded on the London Stock Exchange. The
companies were selected based on design awards and
included Unilever, Hilton Group, British Airways, EMI Group,
and Tesco.
International Case Study: A Technology Startup
Owlstone † ‡
A startup technology company called Owlstone in the UK had developed a revolutionary
device about the size of a small coin. It could detect a wide range of chemical agents
even in miniscule quantities. As with many new technologies Owlstone’s challenges
stemmed from trying to explain the new technology to investors and customers and in
trying to select the best application for market entry.
To address this Owlstone worked with designers in two areas. They worked to build a
brand and corporate strategy. They also worked to devise simple products that would
demonstrate the applications of the technology beyond the narrow market of domestic
military security.
The ID Advantage: Within two years Owlstone was able to launch the Tourist, a
relatively inexpensive yet revolutionary chemical sensor. It is designed so it can be easily
modified to suit different applications. Not only did the product immediately begin to
generate revenue but when combined with the corporate strategy it enabled Owlstone to
attract another $2.3 million in investment.
† UK Design Council, Designing Demand Program,
http://www.designingdemand.org.uk/case_studies/owlstone
‡ Owlstone, http://www.owlstonenanotech.com/site.php

Shares in design-led businesses have outperformed key stock

market indices (FTSE 100 and FTSE All-Share) by about 200%
over the past decade. This trend has been constant and the
Index increased more in good times and decreased less in bad.
The performance is presented in figure 2.41 42

10 / The ID Advantage index < >

 Figure 2. Design index ten year performance (1995 – 2004) 43

4000
Shares in design-led
3500
businesses have
outperformed key stock
market indices (FTSE
3000
100 and FTSE All-Share)
by about 200% over
the past decade.
Index Value

2500

2000

Design Portfolio
1500
Emerging Portfolio
FTSE 100
1000 FTSE All-Share

500
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

11 / The ID Advantage index < >

 The same effect was found in a seven year study of almost
200 public manufacturing companies submitting filings to
3.2.5 Other Benefits
the US Securities and Exchange Commission. For every year The positive impact of industrial design can be found in a
of the study, companies with more effective industrial design number of other areas. These include:
outperformed their counterparts in stock market return.44
++ New Products: In a 2005 UK study, companies where
More evidence can be found among Finnish metal and design is integral to operations were twice as likely to
manufacturing sector companies. There is a positive have developed new products and services. Between 2002
correlation between the design investment in companies and and 2005, 80% of these companies had developed a new
their P/E ratio (table 3).45 product or service compared to a UK average of 40%.47
++ Market Share: ID contributes to the creation of new
Table 3. Design investment and P/E ratio in Finnish metal sector companies 46 markets and the increase of market share in existing ones.
Design alert companies in UK were able to increase their
45 market share by 6.3% through design.48

40
++ Exports: Companies that invest in design have higher
Rocia export rates than companies that do not. In Denmark
35 companies that use design export 34% of their revenue on
average while their counterparts export only 18%.49 50
30

3.3 The ID Advantage and Design for

P/E Ratio

25
KCI Konecranes Metso
Wärtsilä
20 the Environment (DfE)
Kone
15 A critical advantage provided by industrial design is its
Nordic Aluminum Ponsse
Fiskars ability to measure, validate and improve the environmental
10 sustainability of a product. Sustainable product design or
Outokumpu
Raute Design for the Environment (DfE) has become one of the
5
Rautaruukki most important applications of design. DfE can also improve
0 performance in areas that are not strictly related to the
1 1.5 2 2.5 3 3.5 environment. The principles of DfE will minimise materials,
waste and energy in production and decrease the negative
Design Investment
impact products can have to protect human health and the
environment. These can be cost savers both in the short and
long term.

12 / The ID Advantage index < >

 Sustainable design practices are particularly important to
BC where we believe in a more environmentally conscious
lifestyle and are trying to capture market share on clean
technology products. The purchasers and users of products
and technology that serve a ‘green’ purpose expect these
products to be designed and developed using sustainable
design standards.
3.3.1 Drivers of DfE
The growth of sustainable product design can be attributed
to several factors. The most important is that customers
have become more educated and have come to understand
the impact of their decisions on the environment. It is these
customers, whether they are corporate clients or consumers,
who are driving suppliers to be more sustainable. Their
expectations create a demand for change in how products
and services are made and supplied. For example, Steelcase, a
large office supply company, reports that nearly 85% of their
client proposal requests have an environmental component
today compared to just 40% two years ago.51 52 53
Governments are also beginning to respond to this public
demand. Up until now, there has been no Leadership in
Energy and Environmental Design (LEED) type benchmark
for green products. Although there have been some isolated
Figure 3. Design decisions affect all parts of the value chain 55
Product
Raw Materials
Manufacturing
13 / The ID Advantage
programs that have a producer responsibility component,
like beverage container or paint recycling programs, there
have been no laws in North America that make producers
financially responsible for waste. That will begin to change
with the European Union leading the way. Under the WEEE
(Waste Electrical and Electronic Equipment) initiative producers
are responsible for recovering and recycling electronic
products. Similar EU directives on hazardous substances are
forcing companies who wish to sell their products in Europe
to improve their sustainability.
Thus the designers are increasingly learning how to design
more sustainable products and services. They are trying to
educate their clients and consumers. Education institutions are
in turn beginning to include sustainability as part of their core
design curriculum. All of this is serving to make DfE an ever
more important aspect of design.
3.3.2 DfE Principles and Methodologies
Design decisions made in product development affect the
entire value chain and the environmental footprint the
product creates during its life cycle. It is estimated that 70%
to 90% of any given product’s footprint can be addressed at
the design stage.54
It is estimated that 70% to 90% of any given product’s
footprint can be addressed at the design stage.
Distribution Disposal
Use
& Sales & Recycling
index < >
 This does not just apply to consumer products but to all
products from wood pellets and hydrogen fuelling stations to
medical devices. The industrial design discipline uses several
practical strategies and methodologies to ensure DfE and
minimal footprint. The strategies include: 56
There is an internationally agreed standard for LCA and
it is documented in the International Organisation for
Standardisation (ISO) 14000 series.

++ selection of low-impact materials;

++ avoiding toxic or hazardous materials; Figure 4. Product system from a life cycle perspective 58
++ choosing cleaner production processes;
++ maximising energy and water efficiencies; input System Boundary Output
++ designing for waste minimisation; and
++ designing for disassembly and reclamation.
The key methodologies or philosophies to ensure sustainable
Raw materials acquisition
design include Life Cycle Assessment (LCA), and Cradle to
Cradle design. Waterborne
Manufacturing, processing wastes
and formulation
Airborne
3.3.2.1 Life Cycle Assessment (LCA) Distribution and wastes
Life Cycle Assessment has become a way of thinking which Energy transportation Solid wastes
provides specific analysis tools. The objective is to gain insight
into environmental impacts throughout the entire life cycle Raw materials Other
Use/re-use/maintenance
of the product or service in order to reduce those impacts. environmental
It allows designers to link the environmental loads to a releases
“functional unit” of the product. The analysis encompasses the Recycle Useable
entire product life cycle including: 57 products
++ upstream processes of the product Waste Management
(raw materials, manufacturing, transport etc.);
++ downstream processes (energy and materials
consumed by the product in use, re-use, recycling
or disposal options); and
++ inputs and outputs from these processes.

14 / The ID Advantage index < >

3.3.2.2 Cradle to Cradle
“To eliminate the concept of waste means to design
things – products, packaging, and systems –
from the very beginning on the understanding that
waste does not exist.”
– McDonough and Braungart (2002, p. 104)
Cradle to Cradle is a philosophy developed primarily by
architect William McDonough and scientist Michael Braungart,
who co-wrote the 2002 book Cradle to Cradle: Remaking the
Way We Make Things.59 60 61 62 63 They believe the principle of
“Reduce, reuse, recycle” is flawed because it only minimises the
damage. Cradle to Cradle would instead create production
techniques, buildings and even communities that are
essentially waste free. The waste from one area is “food” or a
resource for another area or process. These inputs and
outputs of a system are seen either as technical or biological
nutrients. To ensure these can be completely recycled and
reused, products must be designed for disassembly, so the
materials can be easily separated.
From a health and environment perspective the benefits of
Cradle to Cradle are obvious. It reduces exposure to toxins,
improves air and water quality and conserves resources.
There are also benefits from a corporate perspective. Cradle
to Cradle provides a healthier and cleaner environment for
employees and includes a number of economic benefits as
well. Cradle to Cradle projects that prove economic success
and sustainability can co-exist have been conducted by
companies such as Ford, Nike and BASF.64
15 / The ID Advantage
International Case Study: Design for Environment
Steelcase † ‡ *
Steelcase, a global leader in the office furniture industry, designs and manufactures
architecture, furniture and technology products. In an industry with such mature markets
Steelcase needed to find new areas of growth. At the same time, consumers were becoming
more educated on sustainability as proposal requests with an environmental component rose
from 40% to 85% over a two year period. Along with this consumer demand, information from
the US Environmental Protection Agency indicated that three million tons of office furniture is
deposited in landfills each year, and that many of the components are toxic. Steelcase decided
to design a new environmental product.
Steelcase spent three years in the development stage working collaboratively with William
McDonough, one of the originators of the Cradle to Cradle methodology, and with the Institute
for Product Development in Denmark, an organisation with expertise in Life Cycle Assessment.
The net result was the THINK Chair, which Steelcase bills as having both a ‘brain’ and a
‘conscience.’ The Think chair “thinks” for the user, anticipating user needs and reacting to them
by automatically adjusting itself, moving with the body and providing support in proportion to
body weight.
The Think chair also conforms to the highest environmental standards. It is comprised of up to
44% recycled content, is 99% recyclable by weight and can be disassembled for recycling in five
minutes with common hand tools.
The ID Advantage: The Think Chair has been a hot seller with the green certification being a
powerful sales tool, particularly in Europe. The Think chair was the first office furniture product
to receive McDonough Braungart Design Chemistry’s (MBDC) new Cradle to Cradle™ Product
Certification (gold). Steelcase has also gained other positive attention, including the prestigious
gold IDEA design award.
† Nahikian, A. (July 2007), “Cradle to Cradle: An Environmental Evolution”, Environmental Design and
Construction Magazine. http://www.steelcase.com/na/ourcompany.aspx?f=25852
‡ Steelcase, http://www.steelcase.com/na/environmental_think_products.aspx?f=11845&c=17820
* Scott, S. (May 2006), “Taking Landfill Out of the Loop”, Azure Magazine, p.82-86
index < >
 Cradle to Cradle certification was launched in 2007. To certify
a product, companies must take responsibility for ensuring
their products are entirely re-usable, as opposed to just
ensuring safe disposal as in many of the Life Cycle Assessment
based concepts. It includes a materials assessment, as well
as measures of other sustainability criteria including energy
use, water stewardship, and recyclability. There are almost
50 companies (as of June 2008) which have had a total of 139
products certified. These include Herman Miller, PolyVision
Corporation, Steelcase, and the United States
Postal Service.65

16 / The ID Advantage index < >

4.0 Managing the ID Advantage Table 4. Distribution of expenditures on innovation amongst UK firms
with innovative activities 68
One of the challenges for companies unfamiliar with design is

Acquired knowledge
determining how much to invest and how to integrate design

Intramural R&D
into their processes. These issues are intertwined as the

Acquired M&E
Acquired R&D

Marketing
amount a company invests will vary based on the company’s

Training
Design
competitive strategy, the level of ID integration, and whether
design is in-house or outsourced to external consultancies.
Consequently, how a company invests in ID and incorporates it Low tech 10% 2% 66% 2% 4% 2% 14%
into the product, process and strategy development is just as manufacturing
important as the amount that is invested. Medium low tech 18% 2% 65% 4% 6% 2% 3%
manufacturing
Medium high tech 46% 3% 19% 3% 21% 4% 3%
4.1 Annual Investment in ID manufacturing
High tech 64% 6% 11% 4% 7% 1% 8%
Studies done around the world suggest that companies in
manufacturing
general invest less than 1% of their net sales and 5%-20% of all
Manufacturing 39% 5% 30% 6% 9% 2% 8%
their innovation related costs in ID per year. A survey among
Finnish manufacturing companies indicated that the design Extraction, utilities, 13% 3% 77% 2% 3% 1% 1%
recycling
costs were low compared to total R&D costs. On average they
accounted for about 0.3% of net sales and only 12% of the R&D Construction 4% 0% 69% 5% 14% 5% 2%
expenditure. Even in companies that apply design regularly Technical Services 68% 14% 7% 5% 4% 1% 0%
the mean expenditure constituted only 0.5% of the net sales Information tech 13% 2% 36% 21% 12% 4% 13%
and 16% of the R&D expenditure. Some of this cost was services
internal as the share of the external design services was about Financial services 3% 1% 64% 18% 4% 2% 8%
76% of the total costs.66 Business services 14% 0% 48% 17% 11% 5% 6%
Transport & storage 6% 0% 77% 6% 3% 4% 4%
In the UK, the 2001 Innovation Survey measured design
investment differently.67 It measured innovation related Wholesales 12% 7% 17% 7% 4% 1% 52%
expenditures and determined that of all the innovation related Services 31% 7% 31% 12% 6% 2% 11%
expenditures companies spent 8% on design and 37% on R&D. All respondents 37% 5% 30% 8% 8% 2% 9%
Table 4 presents the expenditure to design in different sectors.
Intra-mural expenditures are all expenditures for R&D (Research & Development) performed within the unit

17 / Managing the ID Advantage index < >

 Companies most often acquire design externally from
design consultancies and subcontractors. About 90% of
Finnish manufacturing firms using design acquire ID services
externally while 40% of all Danish companies do so. In the UK
one in five businesses commissions external agencies.69 70 71
Even so, internal design investment is also important,
especially for larger companies. Almost 30% of Finnish
manufacturing companies have in-house designers and the
average number of designers is six.72 The percentage is
the same among UK companies and they typically employ
between two and four people.73 Some 25% have dedicated
design departments with larger companies the most likely
to have one (almost 50%). Companies tend to apply design,
not just ID, to areas of their businesses that are consumer
or client facing and are less likely to use it to improve
operations internally.74
Table 5. Hiring designers in UK companies 75
Hiring Designers
We employ designers internally 34%
We have a dedicated design department 25%
We hire external design consultants 19%
We don’t have any design activity 45%
18 / Managing the ID Advantage
The return on design investment was reasonably swift. A study
among UK SMEs in the manufacturing sector showed that the
average payback time for design projects was 15 months from
the product launch.76 Some 48% of the implemented projects
recovered total costs within a year or less after the market
launch. Almost 90% of the projects achieved payback within
three years. Perhaps because of this low risk and high return,
investment in design is on the rise. Studies in Europe and
Asia all indicate that companies are increasing expenditures
on design.
4.2 Managing the Risk
The risk associated with investing in design is minimal and the
key contributors to failure are controllable. A study 77 among
UK SMEs in the manufacturing sector showed that almost 90%
of the design projects that were launched repaid their total
project investments and made profit. When projects failed,
the average losses were relatively low because most failures
occurred prior to the start of production.
ID failures are often attributable to a lack of suitable design
management skills in the company. This can result in vague
objectives, lack of integration with company processes, and an
attention to styling as opposed to a desire for genuine product
improvement. Inexperience can also lead to challenges when
interacting with a design consultant. An inadequate briefing,
failure to maintain regular contact and poor consultant
selection processes can all lead to faulty work and poor
design quality.78 79
index < >
 Global companies that use design successfully have
found the following activities minimise the risks
associated with design: 80
++ Maximise senior management support for design;
++ Ensure strong, visible leadership of the design function;
++ Foster a corporate culture that values design;
++ Integrate design activities as tightly as possible with wider
business processes;
++ Equip designers with broad, business relevant skills
beyond their core functional capabilities;
++ Develop and use design tools and techniques; and
++ Promote formal but flexible control of the design process.
4.3 Managing ID for Success
As highlighted in the data, how a company organises and
integrates ID into its processes can influence its impact.
Companies often start designing in an unplanned way. Before
a company starts to buy external design services, the design
is often internal and conducted by staff who are not design
professionals. Once a company engages with external design
professionals it gains confidence and an understanding of
design tasks. The projects with design consulting companies
help to improve the internal attitude towards design and teach
the company design management skills, particularly how
to brief and manage professional designers.81 82 The Danish
Design Centre developed a ‘design ladder’ which illustrates
this process of design integration by breaking it out into four
different levels. They range from the incidental to the highly
strategic.83
19 / Managing the ID Advantage
++ Step 1: Design as unplanned activity: Design is an
inconspicuous part of product development and
performed by members of staff, who are not design
professionals. Design solutions are based on the
perception of functionality and aesthetics shared by the
people involved. The point of view of the end user is rarely
considered.
++ Step 2: Design as styling: Design is perceived as a final
aesthetic finish of a product. In some cases, professional
designers may perform the task, but generally other
professions are involved.
++ Step 3: Design as process: Design is not a finite part
of a process but a work method adopted very early in
product development. The design solution is adapted
to the task, focused on the end-user and requires a
multidisciplinary approach. It involves process technicians,
engineers, material technologists, marketing and
organisational people.
++ Step 4: Design as innovation: The designer collaborates
with the company leadership to adopt an innovative
approach to all – or substantial parts – of the business
foundation. The design process is an important element
in combination with the company vision and future role in
the value chain.
Studies indicate that the further up the design ladder a
company resides, the more successful it becomes compared to
competitors. For example, Swedish companies on the highest
step had average revenue growth of 9.0% while those who
used ID just for styling grew at only 6.5%.84 As noted earlier
however, management of design is an important factor in its
success.85 86 So if the ‘design ladder’ is melded with a modern
understanding of successful management approaches then
ID’s contribution to success can be more clearly understood.87
index < >
Figure 5. Design Management (DM) 88

Design leadership. Design as resource for the

Controlling design ROI challenges of contemporary
Design as strategy & business performance Coherence of the design
and brand value. system and driving the future managers – Socially
“advanced design.” responsible enterprise.

Integrating design in
Integrating design in management decision
Design research methods – processes.
other processes: brand,
ethno design etc.
design as process innovation, TQM. DM as inventing the future
DM as managing the and “sense building” in a
DM as improving the
design function. changing environment.
performance of processes.
DM for the quality of staff.

Integrating design in
marketing, R&D, corporate
design as styling communications.
DM as managing a design
project.

management as management as art management as

command & control of collective action managing change

20 / Managing the ID Advantage index < >

5.0 The id advantage for bc
5.1 Status of ID in BC
Industry in BC has not traditionally taken advantage
of ID.89 90 From a historical perspective, BC’s economy
has been driven by the resource based industries with little
use of ID. Manufacturing here has also tended to be driven
more by engineering than by ID and this has carried over to
the technology sector. In part this is because the sector is still
immature by global standards and ID usage increases as a
sector matures. The net result is that ID investment in BC has
been quite small. The PTC believes that this is ripe for change
and that companies in BC can benefit from the ID advantage.
BC has some strong assets to build the ID advantage.
One is the Emily Carr University of Art and Design (ECUAD).
Its programs offer both a BA and an MA in industrial design
and produce about 30 ID graduates per year. BC also hosts a
Design Research Canada network at SFU, which links design
researchers to industry. Data also shows that BC has a strong
creative class of which ID professionals, represented
by the BC Industrial Design Association (BCID), are an
integral part.91 92
5.2 Potential for ID in BC
BC’s potential in this area is demonstrated by some of the
early success stories among BC companies using ID and
working with the BC design service sector. These companies
are mainly in the outdoor equipment, transportation, lighting,
advanced manufacturing, and high technology sectors.
There are other BC sectors that could make better use of the
ID advantage. There are three in particular that the PTC
has identified.
21 / The ID Advantage for BC
The first is the broad technology sector. ID usage has been low
here, in part, because BC technology companies themselves
tend to be quite small. Although there are nearly 10,000
companies employing almost 75,000 people, less than 40
of these companies employ over 200 people in BC.93 94
Because these companies are smaller and the sector relatively
immature there is low awareness of the ID advantage.
Resources are precious for these smaller companies, so a low
awareness of the ID advantage leads to these resources being
dedicated elsewhere. Case studies included in this report
however, indicate that it is some of these smaller technology
companies that can reap the greatest benefits from the
ID advantage.
Another BC sector with strong design potential is the
development of clean technologies and their associated
products. BC’s strength here lies not only in its growing
industry base but in an interest in applying both Life Cycle
Assessment and Cradle to Cradle design. One of the most
recognised curricula for teaching these principles is the Okala
Design Guide co-developed by one of the ID faculty members
at ECUAD. The guide is endorsed by IDSA and the material is
used by over 60 design schools in North America.95
Finally, ID can be key to the transformation of our traditional
resource based industries. Mining and forestry remain critical
components of BC’s economy. This is true for the regional
economies but also in the urban centres where, although
their impact is less visible, they remain the most important
economic driver. Furthermore, contrary to the traditional
view of the lumberjack with an axe or a miner with a pick,
technology and hence design play critical roles in these
traditional industries.
These industries are facing challenging times however, and
design will play an important role in addressing current
index < >
 and emerging issues. This is particularly true for BC’s wood
products sector as the forest is transformed by the impact
International Case Study: Forest Product Development
of the pine beetle. The forest and wood products industries
must develop new products and practices, and look to the
UPM and Artek † ‡
future. Key competitors in the wood markets in Scandinavia,
UPM is one of the world’s leading forest products groups. UPM’s main products include
New Zealand and the USA have all recognised the need to
printing papers, label materials and wood products. They had developed a new material
apply design to the wood industries and are investing in
called UPM ProFi which is manufactured from surplus materials, primarily paper and
programs.96 Looking again to our case studies we can see that
plastic, left over from their self-adhesive label production. Because they needed creative
these sectors are among the most important opportunities
product ideas and demonstration opportunities UPM contacted Artek, one of Finland’s
for the application of ID in British Columbia. Fortunately, BC
best known product design companies.
has FPInnovations, Canada’s Wood Products Research Institute,
which is working to increase the awareness and use of design
The resulting product was UPM ProFi wood plastic deck. It is a recyclable hi-tech product
in the forest sector.
that can be treated as wood and combines the best characteristics of wood fibres and
plastic. The rigid surface of the deck can endure hard blows and mechanical erosion. It
5.3 Where to Go in BC is easy to install and does not need any specific chemicals for surface treatment. As a
demonstration project, UPM and Artek collaborated with Japanese architect Shigeru Ban
Companies who wish to learn more about ID or how to apply it to create the “Space of Silence,” a pavilion built entirely of UPM ProFi and decorated with
to their operations can look to the British Columbia Industrial Artek’s 2nd Cycle furnishings. The pavilion was first presented at Salone Internationale
Design Association (BCID) , or the Association of Canadian del Mobile in Milan, Italy in April 2007.
Industrial Designers (ACID).
The ID Advantage: The UPM ProFi Deck patio concept has been well received.
BCID is a non-profit organisation registered under the
Production began in Lahti, Finland, and has been expanded to meet increasing demand
Societies Act, and represents Industrial Designers working in
from central Europe with the construction of a new mill in Germany. The UPM ProFi
British Columbia and all Canadian provinces west of Ontario.
product has won a clean technology award. The pavilion itself has also been a success.
The BCID is a Corporate Member of ACID. Other Corporate
It has been displayed at several design shows and will be auctioned off in the Important
Members of ACID include the Association of Chartered
20th Century Design auction by Sotheby’s auction house. The selling price is expected to
Industrial Designers of Ontario [ACID-O] and the l’Association
exceed $800,000.
des Designers Industriels du Québec [ADIQ]. As a member
of ACID, BCID is also a member of the International Council † UPM Kymmene, http://w3.upm-kymmene.com/
of Societies of Industrial Design [ICSID], a partner of the
‡ Artek, www.artek.fi/en/index.html
International Design Alliance [IDA]. The BCID currently has
30 professional members.

22 / The ID Advantage for BC index < >

 British Columbia Industrial Designers Association [BCID]
PO Box 33943
Vancouver, BC Canada V6J 4L7
www.bcid.com

Association of Canadian Industrial Designers [ACID]

www.designcanada.org

23 / The ID Advantage for BC index < >

6.0 BC Case STudies – The ID Advantage in Action
ID has already been successful in BC. This handful of
case studies is by no means comprehensive but clearly
demonstrates how companies in our own jurisdiction have
used the ID advantage. Their success proves out what studies
from other jurisdictions have shown. There is an inherent
advantage to ID and that advantage is as applicable here as
anywhere else.
We would like to thank British Columbia Industrial Design
Association (BCID) and the companies listed below for their
help in creating these case studies.
6.1 Angstrom Power
The Challenge:
Angstrom Power is a North Vancouver based technology
innovator engaged in the development and commercialisation
of micro fuel cell technology for tomorrow’s multi-
purpose hand-held electronics. Angstrom needed to clearly
demonstrate both to industry partners and to the public
that their fuel cell technology is not only usable but market
ready. They had developed a number of functioning fuel cell
demonstration products but had two challenges they needed
to address through ID. Firstly, from an aesthetical perspective
these products were more suited for the research environment
than the living room. Secondly, the products also needed to
be produced in very low quantities, so traditional high volume
manufacturing methods were not appropriate.
24 / BC Case Studies – the ID Advantage in Action
The Approach:
Angstrom worked with Vancouver based ID firm Tangram
Design, who created concepts that embodied the look, feel,
and interface of an already established product. These
concepts enabled the company to reinforce that this was a
mature, proven technology to its consumers. In particular,
Tangram worked with Angstrom to develop a consistent
product semantic for features such as air vents, stand-by
modes and items specific to fuel cell devices that did not have
established forms in other handheld applications.
Concepts were initially produced virtually, allowing Angstrom
to use photo-realistic renderings in presentations and on their
website well in advance of producing physical components.
Designs intended for prototype manufacturing leveraged low
volume while rapid-manufacturing technologies such as CNC
machining, stereolithography, and RTV tooling produced small
numbers of parts quickly and cost effectively.
Benefits of the ID Advantage:
Angstrom has used industrial design not only to develop
successful demonstration products but has also embraced
design as a strategic business tool. Angstrom and Tangram
have collaborated on a number of conceptual projects that
have allowed them to rapidly explore future paradigms and
assist potential hardware partners in envisioning Angstrom’s
technology integrated into their commercial products.
In November 2007, Angstrom’s metal hydride-based fuel cell
systems were approved for both passenger cabin and cargo
provisions by the International Civil Aviation Organisation
(ICAO), enabling global mobility of its devices. By being able
to demonstrate its technology to regulatory and certification
bodies, Angstrom has garnered approvals, which will permit
index < >
 consumers to carry safety-certified devices with them on-
board commercial aircraft, effective January 1, 2009.

Measuring Success:
Originally founded in 2001, Angstrom has grown to 50
employees at its North Vancouver research and production
facility. In September of 2006 Angstrom closed its most recent
round of private equity financing with a US $18 million round
led by VantagePoint Venture Partners, who joined Angstrom’s
existing investor consortium that includes Ventures West,
GrowthWorks Capital, Chrysalix Energy, OPG Ventures, and
Aretê Corporation.

Angstrom G2 Micro Hydrogen Charger

Angstrom A2 Fuel Cell Flashlight

25 / BC Case Studies – the ID Advantage in Action index < >

6.2 Greenlight Innovation months. According to Greenlight: “This design work gave us
the first fuel cell test station in the marketplace that had an
appearance of a refined ‘product’ rather than a lab prototype
The Challenge: bolted together in an aluminium extrusion frame, this clearly
differentiated us as the industry leader.”
Greenlight Innovation is a leading global supplier of testing
and diagnostic equipment to the fuel cell industry, with the
largest installed base in the world. Greenlight Innovation’s Measuring Success:
current product line includes test stations for fuel cell stacks,
The visually distinctive look became standardised across the
components, fuel reformers, electrolysers and fuel cell
brand. This allowed for improved design cycle times, shorter
systems. In 2003 Greenlight had a goal of producing a clean,
product lead times and improved performance. There was an
visually distinctive branded product platform with modular
overall cost reduction of 25 – 30%.
and standardised features to minimise costs and maximise
returns. The in-house Greenlight marketing department
championed using industrial design at an early stage of the
product development cycle.

The Approach:
Greenlight worked with local Unique Industrial Design
Inc. [UNIQUE:ID] which aligned business and marketing
objectives and worked closely with the in-house mechanical
and electrical engineering teams of Greenlight and Pacific
Design Engineering [PDE]. Unique: ID’s intent was to create
an end to end design plan which consolidated the makeup of Greenlight Innovation G50, G100 and G500
components with the look and feel of the product.

Benefits of the ID Advantage:

The design settled on cost effective linear materials that not
only improved the look of the old unit but reduced assembly
time. The human user interface, sheet metal, vinyl graphic
and component design standards which were set in the initial
G500 program were modular in design. This enabled the team
to quickly and efficiently design three more machines in three G500 design process Greenlight Innovation G700

26 / BC Case Studies – the ID Advantage in Action index < >

6.3 StemCell Technologies the product families. Graphic information is laser etched into
the surfaces to avoid any use of adhesives required previously
for labels. The new fabrication strategy led to an overall cost
The Challenge: reduction of approximately 40% for the equipment.

StemCell Technologies is a life sciences company dedicated

to providing a range of products that support innovative Measuring Success:
research in hematology, immunology, cancer research,
The industrial design of the equipment provided a more
developmental biology, and many other areas of life science
functional and attractive product at a reduced manufacturing
research. Their desire was to increase the durability of the
cost. Based on the success of this initial project, StemCell
surface coatings on test equipment used in laboratories.
engaged Form3 to work with them on design issues for other
StemCell products. The equipment resulting from the initial
The Approach: project is still in use and available for sale by StemCell after
nearly 10 years.
For this more project specific challenge, StemCell
approached industrial design company Form3 based in
Vancouver. Form3 reviewed the use of the equipment with
the client and proposed various options to address the
problem. Preliminary testing of the solutions as well as
fabrication estimates provided a comparison of the feasibility
of each option. Prototypes were provided to the client for
field testing. Specification drawings were generated for
manufacturing control.

Benefits of the ID Advantage:

Form3’s design approach looked beyond merely developing a
new equipment coating. Instead, Form3 proposed repackaging
simplified internal components in an aluminium housing with
minimal seams and replacing the cast aluminium stands with
parts having smoother finishes. The new products are CNC
machined, which provides the necessary levels of quality,
durability and precision. The parts are then anodised. This
process produces a highly durable finish with attractive
colours which helps distinguish the different models within

27 / BC Case Studies – the ID Advantage in Action index < >

 Before and after comparison
of the housing design

A smaller hand-held housing

was developed to address
additional markets

Early concepts exploring aesthetic features

and options for manufacture

StemCell Technologies Red Housing and stand in context with laboratory equipment Family of housings and stands

28 / BC Case Studies – the ID Advantage in Action index < >

6.4 Xantrex
Xantrex is a world leader in advanced power electronics,
enabling delivery of electricity anytime anywhere. It focuses
on the renewable, mobile and programmable markets. With
a number of products, more than 800 employees and 2007
revenues of over $230 million Xantrex makes fairly extensive
use of ID including the following two case studies.
6.4.1 Xantrex – GT3
The Challenge:
Xantrex was developing the GT3, a new Grid-Tie inverter. They
wanted a high quality appearance consistent with new Xantrex
product designs. At the same time they wanted functionality
including ease of assembly, installation, operation and
maintenance while adhering to constraints such as heat
dissipation, outdoor environment, and component integration.
The Approach:
Key Xantrex personnel met with Form3, a BC ID firm, to
properly identify relevant parameters. Form3 also discussed
preliminary ideas from a variety of perspectives. Functional
configuration options for the system were illustrated and
evaluated in terms of overall functional benefits and costs.
Renderings and visual mock-ups of preferred directions were
evaluated to confirm positive responses to the appearance and
usability. Form3 worked with the development team at Xantrex
to ensure the design intent was carried through by addressing
specific problems and challenges.
29 / BC Case Studies – the ID Advantage in Action
Benefits of the ID Advantage:
Production quantities for this type of product restrict
options for the housing design, which often result in familiar
utilitarian appearances. The industrial design proposal
considered suitable manufacturing processes and materials
while arranging the components in a manner which not only
respected functional constraints but provided a unique, and
stylish overall appearance. The heat sink shape is enhanced
with a convex profile. The extrusions used on the outer
frame provide structure, visual and physical alignment.
The installation process is simplified without resorting to
highly visible brackets and fasteners. Access to critical
components such as disconnect switches is addressed without
compromising the overall clean appearance, or ability to
operate over many years in an outdoor environment.
Measuring Success:
The industrial design of the GT3 has contributed to
the establishment of the GT3 as a world market leader.
Since product launch in early 2004 there have been over
40,000 units sold in NA, the EU, and Asia, exceeding all
initial expectations. The same chassis was flexible
enough to support the growth of the GT series family
from the initial single model to over 10 models covering
a variety of power levels.
index < >
 Xantrex GT3

An exploded diagram used to discuss

possible assembly strategies

A collection of sketches and computer

images used to explore aesthetic and
configuration options

Xantrex GT3
Xantrex GT3

30 / BC Case Studies – the ID Advantage in Action index < >

6.4.2 Xantrex – Powerpacks
The Challenge:
Xantrex sought to develop a new line of consumer oriented
portable power products. The intent was to differentiate
from the competition and access new markets with a distinct
departure from the traditional appearance of inverters, and
to establish a look and feel for a new category of products.
By partnering with an industrial design firm with consumer
product experience, Xantrex sought to target its industrial,
commercial and automotive product categories to a mass
consumer audience.
The Approach
Xantrex worked with Form3 to address this challenge.
The designers began by conducting a review of competitor
products and trends in other consumer product categories.
This allowed for an appropriate direction to be set.
Brainstorming sessions led to a range of configuration and
stylistic options that were illustrated for the purpose of
evaluation by marketing and engineering representatives.
Once the design was chosen, the specific details were
resolved to ensure visual qualities were carried through to
final manufacturing.
31 / BC Case Studies – the ID Advantage in Action
Benefits of the ID Advantage
Powerpack series:
The re-configuration of internal component positioning
provided opportunities to lower the center of gravity and
make the product more stable, increasing its consumer market
appeal. Other external features like the flashlight and air
compressor hose were integrated in a more attractive manner,
and the central display of the AC power outlets established
the product as a portable power source rather than just an
automotive accessory.
Pocket inverter (Powersource mini) series:
By reordering internal components and refining the connector
areas, the apparent thickness of the housings was minimised,
creating a sleek and attractive product. In addition, smooth
streamlined outer shapes replaced the exterior extruded
aluminium ribs typical of products in this market. Ventilation
features were enhanced by shapes which are more evocative
of a ‘power’ product.
Measuring Success:
Xantrex has become the market leader in the powerpack
category, and has shipped over half a million units. The
re-designed pocket inverters have revitalised the inverter
category and have allowed Xantrex to exceed its sales forecast
by 30% in 2 years.
index < >
 CAD images of some early
Xantrex Powerpack product configurations along with
a cross section of the
chosen direction

Xantrex Pocket Powerpack

CAD images of showing

CAD rendering of the smaller
PowerSource Mini
some early aesthetic
options for the
PowerSource 100. An
appearance model is
shown on right

32 / BC Case Studies – the ID Advantage in Action index < >

7.0 REFERENCES
1 IDSA (Industrial Designers Society of America), “ID Defined.”
www.idsa.org/absolutenm/templates/?a=89w&z=23
2 UK Design Council (2007), “The Value of Design – Fact finder report”
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3 Hertenstein, J., Platt, B. and Veryzer, R. (2005), “ The Impact of Industrial Design
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4 Lindström, M. and Pajarinen, M. (2006) ”Keskusteluaiheita – Discussion papers No.
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5 Kotler, p. and Rath, A. (1984), “Design: A powerful but neglected strategic tool”, Journal
of Business Strategy (pre-1986), Fall 1984, p. 16.
6 Borja de Mozota, B. (2006), ”The Four Powers of Design: A Value Model in Design
Management”, Design Management Review, Spring 2006, p. 44-53.
7 Cho, D, (2004), “Design, Economic Development, and National Policy: Lessons from
Korea”, Design Management Review, Fall, p. 15.
8 UK Design Council (2007), “Eleven Lessons: Managing design in eleven global brands”,
www.designcouncil.org.uk
9 Business Week, (August 2004), “The Global Brand Scoreboard, 2004”,
http://www.businessweek.com/pdfs/2004/0431_brands.pdf
10 1Walker, R. (November 2003), “The Guts of a New Machine”,
http://query.nytimes.com/gst/fullpage.html?res=9C02E7D8113BF933A05752C1A9659C8B
63&sec=&spon=&pagewanted=print
11 UK Design Council (2007), “The Value of Design – Fact finder report”
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf, p. 34.
12 Brown, T. (2008), “Design Thinking”, Harvard Business Review, June 2008, p. 85-92.
33 / References
13 UK Design Council (2007), “Eleven Lessons: Managing design in eleven global brands”,
www.designcouncil.org.uk
14 UK Design Council (2007), “Eleven Lessons: Managing design in eleven global brands”,
www.designcouncil.org.uk
15 Hertenstein, J., Platt, B. and Veryzer, R. (2005), “The Impact of Industrial Design
Effectiveness on Corporate Financial Performance”, Product Innovation Management,
22:3–21, p. 18-19.
16 Borja de Mozota, B. (2006), ”The Four Powers of Design: A Value Model in Design
Management”, Design Management Review, Spring 2006, p. 44-53.
17 UK Design Council (2007), “Eleven Lessons: Managing design in eleven global brands”,
www.designcouncil.org.uk
18 UK Design Council (2007), “Eleven Lessons: Managing design in eleven global brands”,
www.designcouncil.org.uk
19 UK Design Council (2004), “The impact of design on stock market performance –
An analysis of UK quoted companies 1994-2003.
20 UK Design Council (2007), “Design in Britain 2005-06”, p. 7.
21 UK Design Council (2007), “The Value of Design – Fact finder report”
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf, p. 23-34.
22 Lindström, M. and Pajarinen, M. (2006) ”Keskusteluaiheita – Discussion papers No.
1017 – The Use Of Design In Finnish Manufacturing Firms”, p. 5-7, 14-17.
23 Hertenstein, J., Platt, B. and Veryzer, R. (2005), “The Impact of Industrial Design
Effectiveness on Corporate Financial Performance”, Product Innovation Management,
22:3–21, p. 18-19.
24 Hertenstein, J., Platt, B. and Veryzer, R. (2005), “The Impact of Industrial Design
Effectiveness on Corporate Financial Performance”, Product Innovation Management,
22:3–21, p. 6.
index < >
 25 Lockwood, T. (2007), “Design value: A framework for measurement”, Design
Management Review, Fall 2007, p. 90-97.
26 UK Design Council (2007), “The Value of Design – Fact finder report”
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf, p. 11-17.
27 UK Design Council (2007), “The Value of Design – Fact finder report”
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf, p. 12.
28 UK Design Council (2004), “The impact of design on stock market performance –
An analysis of UK quoted companies 1994-2003.
29 UK Design Council (2007), “Design in Britain 2005-06”, p. 11-17.
30 Nyberg, M. and Lindström, M. (2005), “Muotoilun Taloudelliset Vaikutukset”, ETLA,
Discussion papers No. 982, p. 15-18.
31 Ramlau, U. and Melander, C. (2004), “In Denmark, design tops the agenda”, Design
Management Review, fall 2004.
32 National Agency for Enterprise and Housing, Denmark (September 2003), “The Economic
Effects of Design”, www.ebst.dk/file/1924/the_economic_effects_of_designn.pdf, p. 3-4.
33 National Agency for Enterprise and Housing, Denmark (September 2003), “The Economic
Effects of Design”, www.ebst.dk/file/1924/the_economic_effects_of_designn.pdf, p. 19.
34 National Agency for Enterprise and Housing, Denmark (September 2003), “The Economic
Effects of Design”, www.ebst.dk/file/1924/the_economic_effects_of_designn.pdf,
p. 3-4, 19, 31.
35 Hertenstein, J., Platt, B. and Veryzer, R. (2005), “The Impact of Industrial Design
Effectiveness on Corporate Financial Performance”, Product Innovation Management,
22:3–21, p. 5-7, 17.
36 Salimaki, M. (2004), “International Design Business Management IDBM course”,
26D200, Helsinki School of Economics.
34 / References
37 Hertenstein, J., Platt, B. and Veryzer, R. (2005), “The Impact of Industrial Design
Effectiveness on Corporate Financial Performance”, Product Innovation Management,
22:3–21, p. 18-19.
38 Design Council (2007), “The Value of Design – Fact finder report”
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf, p. 11-17.
39 UK Design Council (2004), “The impact of design on stock market performance –
An analysis of UK quoted companies 1994-2003.
40 UK Design Council (2007), “The Value of Design – Fact finder report”
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf, p. 11-17.
41 UK Design Council (2004), “The impact of design on stock market performance –
An analysis of UK quoted companies 1994-2003.
42 UK Design Council (2007), “The Value of Design – Fact finder report”
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf, p. 11-17.
43 UK Design Council (2004), “The impact of design on stock market performance –
An analysis of UK quoted companies 1994-2003”, p.14.
44 Hertenstein, J., Platt, B. and Veryzer, R. (2005), “The Impact of Industrial Design
Effectiveness on Corporate Financial Performance”, Product Innovation Management,
22:3–21, p. 5-7, 17.
45 Nyberg, M. and Lindström, M. (2005), “Muotoilun Taloudelliset Vaikutukset”, ETLA,
Discussion papers No. 982, p. 15-18.
46 Nyberg, M. and Lindström, M. (2005), “Muotoilun Taloudelliset Vaikutukset”, ETLA,
Discussion papers No. 982, p. 20.
47 UK Design Council (2007), “Design in Britain 2005-06”, p. 7.
48 UK Design Council (2007), “The Value of Design – Fact finder report”
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf, p. 11-17.
49 National Agency for Enterprise and Housing, Denmark (September 2003), “The Economic
Effects of Design”, www.ebst.dk/file/1924/the_economic_effects_of_designn.pdf, p. 3-4.
index < >
 50 Nyberg, M. and Lindström, M. (2005), “Muotoilun Taloudelliset Vaikutukset”, ETLA,
Discussion papers No. 982, p. 8.
51 Scott, S. (May 2006), “Taking Landfill Out of the Loop”, Azure Magazine, p. 82-86.
52 Bhan, N. (August 2007), “Ecodesign, Ecolabels and the Environment: How Europe is
redesigning our footprint on earth, Core 77,
www.core77.com/reactor/08.07_ecodesign.asp
53 Steelcase,
http://www.steelcase.com/na/environmental_think_products.aspx?f=11845&c=17820
54 Bhan, N. (August 2007), “Ecodesign, Ecolabels and the Environment: How Europe is
redesigning our footprint on earth, Core 77,
www.core77.com/reactor/08.07_ecodesign.asp.
55 Developed based on Bhan, N. (August 2007), “Ecodesign, Ecolabels and the
Environment: How Europe is redesigning our footprint on earth, Core 77,
www.core77.com/reactor/08.07_ecodesign.asp.
56 Lewi, H. and Gertsakis, J. (2001), “Design + Environment – a global guide to designing
greener goods”, Greenleaf Publishing, p. 41-60.
57 Lewi, H. and Gertsakis, J. (2001), “Design + Environment – a global guide to designing
greener goods”, Greenleaf Publishing, p. 41-60.
58 Lewi, H. and Gertsakis, J. (2001), “Design + Environment – a global guide to designing
greener goods”, Greenleaf Publishing, p. 42.
59 McDonough, W. and Braungart, M. (2002), “Cradle to Cradle – Remaking the Way We
Make Things”, North Point Press.
60 MBDC, http://www.mbdc.com/c2c/
61 Scott, S. (May 2006), “Taking Landfill Out of the Loop”, Azure Magazine, p. 82-86.
62 Nahikian, A. (July 2007), “Cradle to Cradle: An Environmental Evolution”,
Environmental Design and Construction Magazine.
http://www.steelcase.com/na/ourcompany.aspx?f=25852
35 / References
63 MBDC, http://www.mcdonough.com/cradle_to_cradle.htm
64 MBDC, http://www.mcdonough.com/cradle_to_cradle.htm
65 MBDC, http://www.mbdc.com/c2c/
66 Lindström, M. and Pajarinen, M. (2006) ”Keskusteluaiheita – Discussion papers No.
1017 – The Use Of Design In Finnish Manufacturing Firms”, p. 6-7, 14-17.
67 Tether, B. (2005), “Think Piece on the Role of Design in Business Performance”, ESRC
Centre for Research on Innovation and Competition (CRIC), University of Manchester,
http://www.berr.gov.uk/files/file14796.pdf, p. 25.
68 Tether, B. (2005), “Think Piece on the Role of Design in Business Performance”, ESRC
Centre for Research on Innovation and Competition (CRIC), University of Manchester,
http://www.berr.gov.uk/files/file14796.pdf, p. 25.
69 UK Design Council (2007), “The Value of Design – Fact finder report”
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf, p. 23-34.
70 Lindström, M. and Pajarinen, M. (2006) ”Keskusteluaiheita – Discussion papers No.
1017 – The Use Of Design In Finnish Manufacturing Firms”, p. 6-7, 14-17.
71 National Agency for Enterprise and Housing, Denmark (September 2003), “The Economic
Effects of Design”, www.ebst.dk/file/1924/the_economic_effects_of_designn.pdf, p. 33.
72 Lindström, M. and Pajarinen, M. (2006) ”Keskusteluaiheita – Discussion papers No.
1017 – The Use Of Design In Finnish Manufacturing Firms”, p. 5-7, 14-17.
73 UK Design Council (2007), “The Value of Design – Fact finder report”
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf, p. 23-34.
74 UK Design Council (2007), “The Value of Design – Fact finder report”
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf, p. 23-34.
75 UK Design Council (2007), “The Value of Design – Fact finder report”
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf, p. 29.
index < >
 76 Tether, B. (2005), “Think Piece on the Role of Design in Business Performance”, ESRC
Centre for Research on Innovation and Competition (CRIC), University of Manchester,
http://www.berr.gov.uk/files/file14796.pdf, p. 16-17.
77 Tether, B. (2005), “Think Piece on the Role of Design in Business Performance”, ESRC
Centre for Research on Innovation and Competition (CRIC), University of Manchester,
http://www.berr.gov.uk/files/file14796.pdf, p. 16-17.
78 Tether, B. (2005), “Think Piece on the Role of Design in Business Performance”, ESRC
Centre for Research on Innovation and Competition (CRIC), University of Manchester,
http://www.berr.gov.uk/files/file14796.pdf, p. 16-17.
79 DTI (2005), “Creativity, Design and Business Performance”, Economics paper NO. 15,
http://www.berr.gov.uk/files/file13654.pdf, p. 29-30.
80 UK Design Council (2007), “Eleven Lessons: Managing design in eleven global brands”,
www.designcouncil.org.uk
81 Tether, B. (2005), “Think Piece on the Role of Design in Business Performance”, ESRC
Centre for Research on Innovation and Competition (CRIC), University of Manchester,
http://www.berr.gov.uk/files/file14796.pdf, p. 16-17.
82 Brown, T. (2008), “Design Thinking”, Harvard Business Review, June 2008, p. 85-92.
83 National Agency for Enterprise and Housing, Denmark (September 2003), “The Economic
Effects of Design”, www.ebst.dk/file/1924/the_economic_effects_of_designn.pdf,
p. 28, 33.
84 SVID (2006), “Design as a force for development – An evaluation of the Swedish
government’s investment in design 2003-2005.
85 Nyberg, M. and Lindström, M. (2005), “Muotoilun Taloudelliset Vaikutukset”, ETLA,
Discussion papers No. 982, p. 8.
86 Lindström, M. and Pajarinen, M. (2006) ”Keskusteluaiheita – Discussion papers
No. 1017 – The Use Of Design In Finnish Manufacturing Firms”, p. 6-7, 14-17.
36 / References
87 Borja de Mozota, B. (2006), ”The Four Powers of Design: A Value Model in Design
Management”, Design Management Review, Spring 2006, p. 44-53.
88 Borja de Mozota, B. (2006), ”The Four Powers of Design: A Value Model in Design
Management”, Design Management Review, Spring 2006, p. 45.
89 Interview with Christopher O’Brien Wheeler, President, British Columbia Industrial
Designers (BCID) Association, September 27, 2007.
90 Interview with Rob Johnston, founder/CEO, Tangram design, and former president of
BCID, October 2, 2007.
91 Richard Florida, (2004).”America’s Looming Creativity Crisis”, Harvard Business Review,
October 2004, p. 124-126.
92 Gentler, M. et al. (2002) “Competing on Creativity – Placing Ontario’s cities in North
American Context”, Ontario Ministry of Enterprise, Opportunity and Innovation, and
Institute for Competitiveness and Prosperity, p. 1-9.
93 BCTIA, “Industry Snapshot”, www.bctia.org/Knowledge/Tech-Sector-Snapshots/
94 Business in Vancouver (2007), “BC TECH – British Columbia’s Technology Guide 2007”.
95 IDSA (2007), “OKALA GUIDE 2007 EDITION,”
www.idsa.org/whatsnew/sections/ecosection/okala.html
96 Bell, B. (2006), “Design: Potential for British Columbia’s Wood Products Industry,”
BC Forum for Forest Economics and Policy, Synthesis Paper SP 05-03.
index < >
8.0 Contact Details
Prepared by:
Premier’s Technology Council
730 – 999 Canada Place
Vancouver, B.C. V6C 3E1

Tel: 604.775.2122
Email: Premiers.TechnologyCouncil@gov.bc.ca
Web: www.gov.bc.ca/premier/technology_council

37 / Contact Details index < >