Copyrighted matrial – 978–1–137–32594–5 © Ray Holland and Busayawan Lam 2014 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. 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Copyrighted matrial – 978–1–137–32594–5 Copyrighted matrial – 978–1–137–32594–5 Contents List of Figures viii List of Tables ix Acknowledgements xii Part I Introducing Strategic Design 1 1 Strategic Design 3 1.1 The Nature of Strategic Design 4 1.2 Tangible Design vs Intangible Design 12 1.3 Design Thinking vs Strategic Thinking 15 1.4 Design Management 21 1.5 Glossary 29 1.6 References and Additional Reading 30 1.7 Online Resources 31 2 Planning Strategic Design 32 2.1 Strategic Design Approaches 33 2.2 Strategic Development Tools 41 2.3 4Ds of Strategic Design Management 45 2.4 Conclusion 56 2.5 Strategic Design Toolkits 57 2.6 Glossary 58 2.7 References and Additional Reading 59 2.8 Online Resources 61 Part II Managing Strategic Design at Core Business Level 63 3 Design-Led Branding 65 3.1 Design as a Catalyst for Brand Development 66 3.2 Branding Model Evolution 70 3.3 Design-Led Branding Models 74 3.5 Case Study 1 – Design-Led Branding: Design Bridge 96 3.6 Summary of Key Points 97 3.7 Further Considerations 97 3.8 Glossary 98 3.9 References and Additional Reading 99 3.10 Online Resources 101 v Copyrighted matrial – 978–1–137–32594–5 Copyrighted matrial – 978–1–137–32594–5 vi CONTENTS 4 Design- Driven Innovation 102 4.1 Innovation Through Design Strategy & Creative Thinking 103 4.2 Conventional & Emerging Innovation Models 108 4.3 Design- driven Innovation Models 113 4.4 4Ds of Design- driven Innovation 115 4.5 Case Study 2 – Design- led Innovation: Philips 135 4.6 Summary of Key Points 136 4.7 Further Considerations 137 4.8 Glossary 137 4.9 References and Additional Reading 138 4.10 Online Resources 140 5 Establishing Design in the Organization 141 5.1 Relationships between Design and Business 142 5.2 Relationships between Design and Strategic Management 146 5.3 Roles of Design in an Organization 150 5.4 Design as Strategic Partner 154 5.5 4Ds of Strategic Design Partnerships 173 5.6 Case Study 3 – Design-Led Marketing Strategy: Bentley Motors Limited 185 5.7 Summary of Key Points 186 5.8 Further Considerations 186 5.9 Glossary 187 5.10 References and Additional Reading 188 5.11 Online Resources 191 Part III Managing Strategic Design to Drive Change 193 6 Design- driven Organizations 195 6.1 Design as a Driver for Organizational Success 196 6.2 Conventional & Emerging Business Models 197 6.3 Implications of New Opportunities and Challenges 201 6.4 Design- driven Business Model 227 6.5 Case Study 4 – Design- driven Company: LG Electronics 230 6.6 Summary of Key Points 231 6.7 Further Considerations 232 6.8 Glossary 233 6.9 References and Additional Reading 233 6.10 Online Resources 235 7 Corporate Responsibility and Design 236 7.1 Design Responsibility 237 7.2 Review of Emerging Concepts 238 Copyrighted matrial – 978–1–137–32594–5 Copyrighted matrial – 978–1–137–32594–5 CONTENTS vii 7.3 4Ds of Design- driven Triple- Bottom- Line Organization 251 7.4 Case Study 5 – Triple- Bottom- Line Organization: The Body Shop 261 7.5 Summary of Key Points 263 7.6 Further Considerations 264 7.7 Glossary 265 7.8 References and Additional Reading 265 7.9 Online Resources 267 8 Strategic Design Model for e-Business 268 8.1 Strategy for the Digital Age 269 8.2 Implications of the Digital Economy 271 8.3 Review of e-Business Models 277 8.4 4Ds of Design-driven e-Business 279 8.5 Case Study 6 – Design-driven e-Business: Amazon 297 8.6 Summary of Key Points 298 8.7 Further Considerations 299 8.8 Glossary 299 8.9 References and Additional Reading 300 8.10 Online Resources 301 9 Strategic Design for the Public and Voluntary Sectors 302 9.1 Design for Caring 303 9.2 Design as a Driver of Transportation 304 9.3 Design as a Driver of Healthcare 307 9.4 Design as a Driver for Better Places to Live, Work & Play 312 9.5 Design as a Driver of Education 314 9.6 Design as a Driver of Charities 317 9.7 4Ds of Design-led Not-for-Profit Organization 321 9.8 Case Study 7 – Design-led Not-for-Profit Organization: WWF 331 9.9 Summary of Key Points 333 9.10 Further Considerations 333 9.11 Glossary 334 9.12 References and Additional Reading 334 9.13 Online Resources 337 Index 338 Copyrighted matrial – 978–1–137–32594–5 Copyrighted matrial – 978–1–137–32594–5 Part I INTRODUCING STRATEGIC DESIGN Managing strategic design begins with a revision of the way that managers view design. There remains a widespread misconception that design is only an artistic endeavour for the purpose of adding beauty of style to the engi- neered functions of products. This in turn relegates design to a lowly service function to be called upon when the business/marketing strategy is com- plete, usually by presenting the designers with a brief. Many higher level managers miss the opportunity to gain the benefits of designers’ creativity by not including them in strategic planning processes, indeed designers are often dismissed as having nothing valuable to contribute. There remain vestiges of the management “myth” that designers are somehow different, difficult to manage (at least in the established way) and should be kept at arm’s length. However many of the world’s most success- ful organizations treat design with high respect and have integrated design fully into their activities. They have long established the strategic manage- ment of manufacturing, marketing, human resources, finance, research and development (R&D) and information, now they are addressing the strategic management of design. The benefits accruing to organizations can be iden- tified and the momentum for innovation increased. First it is necessary to redefine design and establish its power to contrib- ute to management throughout the organization. Hence, the first section of this chapter introduces the relationship between management and design, the meaning and nature of design strategy and establishes the fundamental principles of developing a design strategy. Chapter 1 goes on to address the relationship of Big- D design, holistic design thinking, and small- d design, hands- on design. Their equality of importance is emphasized as contributors to a real, added- value, designed experience. Three levels of managing strategic design are established and their activities and interdependence are explored. In Chapter 2, the underlying tenets of the management of design strategy are explained through the 4Ds of the strategic design framework. The 4Ds model has the intrinsic advantage of being recognizable to management as part of their established practice and will thus demonstrate that design can be effectively introduced, developed, monitored, controlled and ultimately inte- grated into any organization. 1 Copyrighted matrial – 978–1–137–32594–5 Copyrighted matrial – 978–1–137–32594–5 Copyrighted matrial – 978–1–137–32594–5 Copyrighted matrial – 978–1–137–32594–5 Chapter 1 STRATEGIC DESIGN Strategic design refers to using design management to drive and implement corporate strategic goals. It creates vision and integrates and orchestrates collaboration across disciplines in order to deliver real value to all stake- holders through creative solutions to business, social and environmental problems. It evolved from recognition of the potential of strategic design to contribute to business performance management: “Design Management is the business side of design” claimed the Design Management Institute in 2010. But it is now acknowledged to have the potential to contribute to the management and performance of all kinds of organizations, encompassing the “totality of design activity, its administration and contribution to an organisation’s performance” (BSI, 2008). A well- developed design strategy can deliver performance and competi- tive advantages across the triple bottom line of the economic, social/ cultural and environmental aims of an organization.