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Download Design in Britain 2001 (File Type: .Pdf) INFORM LONG.a/w 5.10.01 29/10/01 3:11 pm Page 1 Design in Britain 2 0 01/2 002 INFORM LONG.a/w 5.10.01 29/10/01 3:11 pm Page 2 Introduction 1 Design for better business 2 Design in a global context 10 Design for working and learning 16 Design for quality of life 22 Design for a better environment 28 Feedback 34 INFORM LONG.a/w 5.10.01 29/10/01 3:11 pm Page 3 i n t r o d u c t i o n Last year, British businesses spent £26.7 billion on design. This amount represents nearly 3% of the UK’s total corporate turnover. This indicates that design is high up the agenda of many UK businesses and a key means for them to stand out in competitive markets. Companies now strive to benefit from the strategic use of design in ways that extend far beyond corporate image, or the look and feel of products. In 2001, they use it to drive innovation, corporate culture and creativity across all business functions. But it’s not all about business. Today’s consumers demand responsible suppliers and sustainable, smart products. Increasingly, we’re interested in improving our quality of life, caring for our ageing population and ensuring the planet remains intact for future generations. In all of these areas, design has a key part to play. Design in Britain is our annual snapshot of the latest facts, figures and quotes relating to all aspects of how design is being used in the UK. It begins with Design for Better Business, examining the strategic use of design by UK firms. Design in a Global Context then examines how British expertise is being exported and looks at the impact and impressions we make abroad. Design for Working and Learning explores how we teach design in schools and colleges, feeding a growing design industry. Finally, sections on Design for Quality of Life and Environment show how design initiatives are improving life for all. This publication is just a sample of the knowledge resource available on our website: www.designcouncil.org.uk Andrew Summers, Chief Executive, Design Council INFORM LONG.a/w 5.10.01 29/10/01 3:11 pm Page 4 The Design Council’s latest research (PACEC 2001) confirms that UK businesses recognise design as being about more than simply the colour and shape of things. Two thirds see it as the process by which they develop new products and services, meet customer needs and bring ideas to life. More than one third describe design as a strategic business tool that differentiates companies in competitive markets. The same survey also shows that around half of UK companies identify design and innovation as contributors to increased profit, better quality services and products, higher employment, improved communications with customers and an enhanced company image. Given this awareness of the commercial opportunities delivered by design and innovation, it is perhaps surprising that 56% of companies own up to not having developed or introduced any new products or services in the past three years. By contrast, the fact that design spending in the UK represents some 3% of corporate turnover suggests that companies that invest in design do so seriously and significantly and reap appropriate commercial rewards. INFORM LONG.a/w 5.10.01 29/10/01 3:11 pm Page 5 w h at do uk businesses spend on design? Total design spend = £26.7 billion UK business last year spent £26.7 billion on design both as an in-house resource and a bought-in 17% (£4.5 billion) on bought-in services service. That’s just under 3% of corporate turnover. To put that in perspective, research by the government shows that quoted companies in the UK spent less – the equivalent of 2.1% of their turnover – on research and development in 1999. 30% (£7.9 billion) on equipment and consumables 53% (£14.3 billion) on staff costs Source: Design Council research by PACEC, 2000 which industry sectors spend the most on design? Sector Design spend % of firms in 2000 in UK Financial and business services ££££££££££££££££££££ £8.7bn 19% Construction, transport, storage and communications ££££££££££££££ £6.3bn 11% Agriculture and extractive ££££ £1.7bn 5% Manufacturing ££££££££££££ £5.1bn 16% Consumer services £££££££££££ £4.9bn 49% Source: PACEC National Survey of Firms, 2000 INFORM LONG.a/w 5.10.01 29/10/01 3:11 pm Page 6 how important is design to uk compa n i e s ? UK businesses rank financial management as the key ingredient of business success. This is followed by human resource management, marketing, operational management and training. Creativity is sixth, while design and innovation come a close seventh with corporate communication and ahead of R&D. Key ingredients of business success rated from 1 to 10 Financial management 9.1 Human resource management 7.8 Marketing 7.8 Operational management 7.8 Education and training 7.5 Creativity 6.9 Design 6.6 Corporate and internal communications 6.6 Innovation 6.6 R&D 6.0 Source: Design Council research by PACEC, 2001 is design more important to big businesses? Number of employees Proportion viewing design as integral or significant 0-9 35% 10-49 48% 50-249 54% 250+ 75% Source: Design Council research by PACEC, 2001 how do companies use design? Proportion of respondents agreeing with the following statements % of firms Design is about how products look 70 Design is used to develop new products 66 Design is a creative thinking process that enables ideas to come to life 65 Design is about products working well to meet clients’ needs 58 Design is used to produce something that will sell – a way of delivering something tangible 53 Design is a strategic business tool that can be used to differentiate organisations operating in competitive markets 36 Source: Design Council research by PACEC, 2001 INFORM LONG.a/w 5.10.01 29/10/01 3:11 pm Page 7 can a value be put on good design? Research by leading US academics relates an organisation’s focus on design with bottom-line outcomes. The research measures the financial performance over a five-year period of 51 companies in four sectors, comparing groups of companies judged by an expert group as making more eVective or less eVective use of design. Firms rated as using design more eVectively were stronger on virtually all measures. The research provides strong evidence that good design boosts firms’ operating performance and growth, which is rewarded by stock market premiums. Source: Design Management Journal, Summer 2001 w h at are the business benefits of design? Percentage of firms saying design, innovation and creativity have contributed to the following during the last three years % of firms where design made a contribution* Increased turnover 51 Improved image of organisation 50 Increased profits 48 Increased employment 46 Improved communications with customers 45 Improved quality of services/products 44 Increased market share 40 Development of new products 40 Improved internal communications 28 Reduced costs 25 *More than one answer possible, so percentages may add up to more than 100% Source: Design Council research by PACEC, 2001 why is innovation importa n t ? ‘It is probably a myth to imagine that it was ever enough for a company to start up, start making something (widgets perhaps), sell them and then carry on doing so as they had always done. If that world ever existed it has been gone for many years now. Businesses can only survive, prosper and grow in a voraciously competitive global economy if they continue to innovate.’ Rt Hon Gordon Brown MP, Chancellor of the Exchequer, foreword, Creativity Works INFORM LONG.a/w 5.10.01 29/10/01 3:11 pm Page 8 how do uk businesses view change? Change is proactively introduced and managed in 2 0 per cent of UK companies. Thirty-one per cent of respondents said they changed constantly in response to their customers’ needs. Source: Design Council research by PACEC, 2001 w h at drives business innovat i o n ? The Design Council’s national Main sources for ideas to improve or change business? su r vey of firms shows that custom e r feedback is undoubtedly the key driver of business innovation. 63% 31% 23% 11% A joint Design Council/CBI rep o r t on collaborative innovation, using interviews with more than Customers Internal discussions Suppliers Publications / 350 UK companies, showed that with staff/ journals management 74% meet customers on a regular basis to discuss ideas and get feedback. The percentage is highest among technology 8% 8% 5% 2% companies, of which 92% hold regular customer meetings. Competitors’ Other Internal R&D External actions /plans consultancy Source: Design Council research by PACEC, 2001 how many businesses do innovat e ? Only 37% of companies say they have developed or introduced a new product or service in the last three years. Source: Design Council research by PACEC, 2001 how do companies generate ideas? People are key to idea generation Idea generation initiatives % of companies in sur vey initiatives but only 55 per cent Use multi-skilled teams 82 of the companies sur veyed here offer financial and other incentives Ideas meetings with customers 74 for ideas. Res e a r ch sponsor 3M operates Monitoring academic research 60 a ‘15% rule’, which allows research Ideas meetings with suppliers 58 and development employees to spend 15% of their time on their Suggestions schemes 44 own ideas. Collaboration also seems Time to generate own ideas 41 to be key to boosting creativity.
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