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We live in interesting times. Because of the particular challenges faced by organisations in light of the global economic conditions and their local impact, and the increased sense of responsibility towards the environment and society, companies are looking for new ideas and new ways to do more with less (resources). The opportunity for design management is to demonstrate how design can help link creativity and innovation, in a way that can both add value and create value. If we think of creativity as developing new ideas, and innovation as exploiting these new ideas, then design becomes the way in which companies can make tangible customer propositions that can be experienced and touched - that is to say, in forms that can be taken to market.'
context the creative economy creativity, innovation, design applied design management design practice innovation
context
Shift: Industrial Economy Knowledge Economy Creative Economy The growing power of ideas social technological economic environmental political The ecosystem in which organisations exist is changing. In response, organisations will have to change.
Arup Foresight & Innovation Issues which are driving global change and most likely to have a major impact upon society and business.
One of the best ways to increase competitive advantage, between commercial companies and even entire countries. The Creative Economy Programme (2005): move to make the UK the worlds creative hub.
The Creative Economy: How People Make Money from Ideas (Howkins)
The creative and knowledge economy thrives upon the generation and exploitation of inventiveness, innovation and imagination.
The YCE programme recognises the centrality of creative entrepreneurs to the development of a sustainable and competitive creative economy, and the bridge they provide between artists and the markets, between creative talent and consumers.
Because design, by its very nature, takes a people-centred approach to problemsolving, it is well positioned to enable a more integrative, holistic approach to solving contemporary world challenges.
Credit: Alec @ Taiwan (Flickr/Creative Commons)
Since design avors virtually all of our experiences, from products to services to spaces, a design thinker must explore a landscape of innovation that has to do with people, their needs, technology and business.
Innovation through Design Thinking, Tim Brown, IDEO
Compassionate Capitalism
The recession is a blessing in disguise as it will force people to work out what really matters to them. value values new ideas new ways to do things with fewer resources - doing more with less add value create value
Creativity and Design are tools for innovation and change: in society in culture in the environment in business
them
you
we
Creativity is the generation of new ideas - new ways of looking at existing problems or the discovery of new opportunities. Innovation is the exploitation of new ideas. Design is what links creativity and innovation. It shapes the ideas so they become practical and attractive propositions for users and customers.
Source: The Cox Review 2005
It promotes understanding of the relationship between things. Not a book of solutions but a book that opens up conversation and communication. It inspires you to take things further yourself.
FoDM
Design does not operate in isolation to other disciplines and professions. The interdisciplinary nature of the creative industries (e.g. marketing, design, nance, law). The integrated nature of design management. The relationships between the people, the projects, the processes, and the products, services and environments.
Reassessing Value
A fundamental reassessment of the value of every asset everywhere in the world. Kevin Warsh, Federal Reserve, December 2008
The management of the people, projects, processes and procedures behind the design of our every day products, services, environments and experiences.
key principles Design Management design management finance marketing & branding design and innovation
case studies
contextual perspectives
The management of the relationships between different disciplines (nance, marketing, design..) and different roles (clients, designers, stakeholders...)
4. Strategic performance
Demonstrating performance based on objectives, deliverables and overall effect on the organisation.
xx xx
Madame Curieweg 4 NL - 5482 TL Schijndel The Netherlands T: (+31) (0) 73 54 92 379 F: (+31) (0) 73 54 78 641 E: info@venrooy.nl W: www.venrooy.com
past
now
future
2006
Achieved: high velocity produc!on process full restore market leadership in NL +42% sales in 2008 (in -21% market) pla&orm to enter phase 2 (rapid growth)
2020 2014 (Phase 3: Progress into EU/World) 2009 Phase 2: Rapid growth
Goals: towards top3 market posi!on EU in 2014 8x turnover, 20x protability preferred suppliership with EU clients in Infrastructure, Electro and Mari!me markets Create: interna!onal commercial network decentralized, outsourced manufacturing with small, central HQ process unique values into great products/services open innova!on / crowd-sourcing New compe!!ve edges: sustainability as umbrella economical ergonomical ecological cultural
Core Values
1. Customer focus: all we do, is aimed at making our client successful. 2. Winning! is our passion. 3. Integrity: we only want to win if we can do it honestly. 4. Top quality: we deliver top quality in all we do. 5. Powerful compe!!ve plusses in product, service, performance: (func!onality:) easier, safer, faster, more e%cient, (design:) more modern, (service:) be"er service. 6. Teamwork: we win as a team, we do it together. 7. Self development: we develop ourselves bene!ng the client, our company, the community we live in and ourselves.
2006
no shared values no metrics own interest I am the boss. So. authoritarian parasi!zing, greed no job descrip!ons unclear objec!ves and strategies we do everything ourselves, compe!!ve or not disloyalty to, thus from, people distrust and conicts topdown, one-way people stands!ll energy drain absence of focus introvert stands!ll reac!ve fear stress
2009
shared values clear metrics peoples interest we are the company par!cipa!ng symbiosis clear, shared job descrip!ons crystal clear objec!ves and strategies co-opera!on, connec!ng best competencies loyalty to, thus from, people trust and harmony bo"om up, holis!c people development energy boost sharp focus extravert innova!on, co-crea!on proac!ve safety joy
Process
Marke!ng
Actions
increased Direct Marke!ng ac!vity new product and services development professionalised marke!ng team skipped non-sales tasks at representa!ves added sales support professionalised sales team reduc!on of nr. suppliers by 80% selec!on of fewer, professional suppliers professionalised sourcing team digitalised product drawings implemented SolidWorks Professional professionalised Engineering team modulised assortment cra#ed external supply chain network professionalised produc!on team issued clear tasks & responsibili!es started annual performance cycles
Results
increased brand awareness created professional, leading image increased sales more !me-on-market spend (25% -> 80%) stronger customer rela!onships increased sales by +42% (during recession) achieved lower internal sourcing cost reduced prices more innova!on with proac!ve suppliers reduced manufacturing cost increased speed lowered failure cost lowered internal stocks drama!cally increased throughput +50% with lower headcount created ONE team improved performance personnel
Roles
Sales
Sourcing
Field research SWOT analysis Ideas for improvements Func!onal development Designing
Engineering
Manufacturing
HRM
QA
launched QA program
Close collabera!on in the earliest stage to develop the strongest possible Suppliers product and supplychain
Admin / Finance
created reliable management informa!on gement reduced !me spent on admin. to 50%
! !! !! ! !
Guard t to mission/values Brieng Control quality/speed of design process Guards value delivered at client end
CEO
Industrial Designer
Commercial Director
Critical Clients
Operations Director
al intern l e x te r n a
Internal Workforce
Product Innovations
Functionality
Upside opening rearbridge: much easier drum inser!on Quicklocks: enabling faster/easier closing, no loose ra"ling machineparts anymore Sidebars on front/rear end: be"er road safety, protec!on of mudguards, easy/safe to reach high for Operator Compact, strongly improved spring system Key operated built-in cylinder in frame: for safe document storage Drawbar lock: the# protec!on
Design
Automo!ve design: appealing to the users Modern/clean look: underlining the professional image of professional clients/users
Sustainability
Range of 9 versions built on two modular footprints: reduc!on of materialusage, of t i l t material storage No use of plas!cs but steelworks only
LTV-R
200 2007 07
LTV
ZW
ZW-R
200 2008
Automo!ve design: appealing to the users Di$eren!a!on: Di$eren!ate in design to o$er clients more choice Range of 4 versions built on one modular footprint: reduc!on of materialusage, of material storage No use of plas!cs but steelworks only
Similar to LTV-R Special spaces on rearbridge and side-fenders to stand on during (de)installa!on. Op!on for parking sensors
LTH
Easier cable winding and binding Safer for operator Spaces to locate workingdocuments and store tools Easier lengthdetermina!on of cables Improved mobility of the machine
LTV-C
2009
VEN-L
Modern design: underlining the professional image of clients/users, and a real breakthrough in terms of presenta!on marketwide
Range of 3 machines built on one modular footprint: reduc!on of material usage, of material storage
VEN-L
2010
210
170
130 100
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08
100 110 120 105 118 146 100 106 121 124 163 171 243
target
'10
325
'12
'14
743 1486
Innovation
(the exploitation of new ideas)
Incremental innovation - exploits existing forms or technologies (eg small changes, improvements, recongurations based on established knowledge and existing organisational capabilities). Modular innovation - within one or more component of a system; not radical. Radical innovation - a departure from exiting knowledge , capabilities or technologies to create something new; often triggered by new opportunities, or capabilities that become obsolete.
Source: HBR 2003 & 2009
Innovation
(the exploitation of new ideas)
The internet is opening up new capabilities for design, management and innovation. Open innovation - collaborative methods, tools and processes Disruptive innovation - disrupting existing processes through technology Social innovation - emergence of new organisational models Eco-innovation - centred around environmentally aware challenges
Innovation
(the exploitation of new ideas)
Management innovation The implementation of new management practices, processes and structures that represent a signicant departure from current norms. It is transforming the way many functions and activities have worked in large organisations.
Birkshaw & Mol 2006
1. dissatisfaction
2. invention
3. diffusion
imagination open innovation innovation sustainability collaboration creativity (new) values create value add value meaning
sharing
Feature Design: Sony Design actively seeks to create value in terms of product design, interface design, package design, editorial design and every other design aspect that enhances the user experience. At Sony we continue to design with the future in mind, and we actively promote internal and external collaboration. Concept Design is a key process in development that encourages new value systems for the next generation and shapes future lifestyles. Sustainable Design: eco-friendly and universal design principles. sustainability - an emerging priority in design
Twirl N' Take is a working design prototype developed from Spin N' Snap, a design mock-up of a digital still camera. As before, the camera is shaped like a magnifying glass. Spinning the roller powers the camera, and users look through a round hole when taking pictures. Images are stored on Bitty memory cards in the tip of the handle.
Design for a sustainable future Philanthrophy by design Creating value for people Improving quality of life Open innovation Distribution models Entrepreneurship
creativity and design are tools for innovation and change. design management as a change agent. design managers as agents of change.