1. Research Presentation Day Glasgow, 21 st January 2004 Adding value in design: Investigation of value in industry Michael Reber (PhD Student) Alex Duffy (Supervisor) CAD Centre, DMEM, University of Strathclyde

2. Focus Business Context  Companies are bound by their investors to increase value.  Value represents an important indicator for the internal navigation of companies and value receives an increasing importance in reporting for external purpose. Scope  Value in the context of design development Aim  Enhance added value in design Objectives  investigate practice and literature to establish insights and form the basis for the framework  develop and adapt the framework to reflect design  test and evaluate the findings in industry A Value Framework Introduction Investigation on value in industry Literature research Summary

3. Investigation of value in industry Scope  Focus on value and adding value  Machinery Industry, > 500 employees, Germany  8 companies, 32 open interviews  CEO‘s, Design Department, Product Development, Product Management, Sales Department Introduction A Value Framework Investigation on value in industry Literature research Summary

4. Value (V) Introduction A Value Framework Is related to... Key Item Related Item Ethic (1) V is close to ethic and moral principles. Moral Principles Economic Aspects (3) V is related to economic and financial aspects. Investigation of value Investigation on value in industry Literature research Summary (7) 50% of the interview partner see a relation between V and Profit Business Goal Profit (8) The majority believes that an alignment of personal values and company values is important for company success and would result in satisfaction, one‘s own initiative and motivation Personal ValueBusiness Value Emotion (2) V is seen as an emotional issue Quality Customer (6) Quality is seen as a matter of high value to customer. (4) V depends on the experience of a person Person Experience Metric (5) V is a kind of measure and can be positive or negative.

5. Adding Value (AV) Introduction A Value Framework Other Business Processes (6) Only a few interview partners belief that AV is relevant to other business processes. Investigation of adding value Investigation on value in industry Literature research Summary Is related to... Key Item Related Item Goal (2) Without AV goals can not be achieved. (4) The metric of AV is seen as profit or relations like turnover to profit, internal production cost to external production cost... Metric (1) AV is seen as an activity. Activity (7) AV is understood as a matter of process improvement Process Improvement Process (5) AV is seen as an activity within a production process. Production Process (3) Asked about goals, the focus was on business goals like Chance of Survival, Innovation Leadership, Market Position, Profit etc. (Employees did not talk about personal goals) Business Goals Personal Goals

6. Outcome from investigation  Although, different understandings of value exist, high level management belief in value as an important business indicator.  An alignment of personal vales and company values seems to be important for company success.  There seems to be a link of value to decision making processes.  Value is seen as abstract, complex and a matter of theory.  Value seems to be an emotional issue.  PD Engineers could not articulate their meaning of value.  Adding value is seen as an activity in the production process.  Without adding value, goals can not be achieved. Introduction A Value Framework Investigation on value in industry Literature research Summary

7.  Value is an important indicator for enterprise navigation.  Alignment of company values and personal values is an issue.  Value is linked to decision making and knowledge management.  A number of theories and definitions exist.  Definitions are not useful to gain knowledge on value in design.  Adding value is seen as an activity.  Without Adding value, goals can not be achieved.  No fundamental framework of value exist.  Outcomes of the investigation and literature review form a basis for the development of a fundamental value framework. Summary Introduction A Value Framework Investigation on value in industry Literature research Summary

8. Research Presentation Day Glasgow, 21 st January 2004 Adding value in design: Investigation of value in industry Michael Reber (PhD Student) Alex Duffy (Supervisor) CAD Centre, DMEM, University of Strathclyde