1. Introduction to Design Management (week 4) “The Value of Design”

2. “Good Design is Good Business”

3. Does everyone understand! Does everyone understand! Do you understand! Do you understand!

4. How valuable is design to business? We know that design is essential in order to position something in an upscale market We know that design is essential in order to position something in an upscale market

5. How valuable is design to business? Kortec –spent $25,000 for logo. (15% of total expenses first year) Kortec –spent $25,000 for logo. (15% of total expenses first year) Why? Why?

6. How valuable is design to business? “…It’s all about creating a positive impression in the minds of the clients, and it’s hard to do that with a stupid little thing you made yourself in Microsoft Word”

7. The Challenges Management’s Attitude Management’s Attitude Some companies get it – many don’t Some companies get it – many don’t Business speak vs. creative speak Business speak vs. creative speak Management relates best to quantifiable information Management relates best to quantifiable information Creatives often get caught up in the aesthetics “Logo Cops” Creatives often get caught up in the aesthetics “Logo Cops”

8. The Challenges In order to communicate designs value -- we have to understand what the business actually values and what the business challenges are. In order to communicate designs value -- we have to understand what the business actually values and what the business challenges are. What are some ways that design can help a business meet objectives? What are some ways that design can help a business meet objectives?

9. Some Solutions Understanding and speaking the language of CEO’s and business executives Understanding and speaking the language of CEO’s and business executives ROI | SWOT | Brand Equity | CLV ROI | SWOT | Brand Equity | CLV Design doesn’t have to be expensive -- remember the ROI Design doesn’t have to be expensive -- remember the ROI

10. Some Solutions Design is not just aesthetics Design is not just aesthetics Use Research to guide design Use Research to guide design Have clear business objectives Have clear business objectives Quantify design results - through ROI/business objectives, and marketing Quantify design results - through ROI/business objectives, and marketing

11. Some Solutions To introduce design into an organization: To introduce design into an organization: Gradually Gradually Someone must be responsible for the process (Design Manager) Someone must be responsible for the process (Design Manager) Management support Management support

12. Design Manager’s Role The big picture: Acts as a conduit and educator between managers and “creatives” Acts as a conduit and educator between managers and “creatives” Responsible for design policies and merging those with company goals Responsible for design policies and merging those with company goals

13. Design Manager’s Responsibilities The details: Manage creative processes Manage creative processes Development & auditing of design policies Development & auditing of design policies Manage design resources Manage design resources Manage the integration of design into corporate structure Manage the integration of design into corporate structure

14. Design Manager’s Responsibilities To help others understand value of design to the business objectives Be proactive Be proactive Develop key relationships Develop key relationships Don’t be a “logo cop” Don’t be a “logo cop”

15. Key relationship with Marketing Department Work closely to implement many projects Work closely to implement many projects Usually jointly responsible for brand Usually jointly responsible for brand Marketing often outsources to design firms Marketing often outsources to design firms Marketing usually compiles analytics about success of Marketing/design projects Marketing usually compiles analytics about success of Marketing/design projects

16. Marketing Department SWOT analysis SWOT analysis Segmentation and target audience analysis Segmentation and target audience analysis Research Research Marketing Mix Marketing Mix Pricing and Positioning strategies Pricing and Positioning strategies

17. Value of Design Good design is about creating strategic solutions to business problems (Budd) The Design Manager’s role is to understand the objectives, manage the processes and communicate the importance of design to the business.

18. Works Cited Budd, Andy. The Value of design. August 22, 2003. Accessed July 21, 2007 at http://www.andybudd.com/archives/2003/08/the_value_of_design/ http://www.andybudd.com/archives/2003/08/the_value_of_design/ Corporate Design Foundation. Michigan Governor Talks Design. Accessed July 21, 2007 at http://www.businessweek.com/innovate/content/mar2006/id20060301_575920.htm http://www.businessweek.com/innovate/content/mar2006/id20060301_575920.htm Fahmy, Dalia. Making Necessities Stylish and Getting a Higher Price, By DALIA FAHMY. Accessed July 21, 2007 at http://www.nytimes.com/2006/03/09/business/09sbiz.html?ex=1185249600&en=8fa13a8cf7d20 0d0&ei=5070 http://www.nytimes.com/2006/03/09/business/09sbiz.html?ex=1185249600&en=8fa13a8cf7d20 0d0&ei=5070 http://www.nytimes.com/2006/03/09/business/09sbiz.html?ex=1185249600&en=8fa13a8cf7d20 0d0&ei=5070 Gogoi, Pallovi. How Target Found its Grooviness. BusinessWeek.com. Accessed July 21, 2007 at http://www.businessweek.com/innovate/content/oct2005/id20051003_749507.htm http://www.businessweek.com/innovate/content/oct2005/id20051003_749507.htm Wallace, Richard. It’s Design not Technology. EETimes.com, Accessed July 21, 2007 at http://www.eetimes.com/showArticle.jhtml?articleID=180207156 http://www.eetimes.com/showArticle.jhtml?articleID=180207156