Supporting design driven innovation: a review of selected ... · (New Zealand) and the...

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Supporting design driven innovation: a review of selected programmes. REDI / Regions supporting Entrepreneurs and Designers to Innovate

Transcript of Supporting design driven innovation: a review of selected ... · (New Zealand) and the...

Page 1: Supporting design driven innovation: a review of selected ... · (New Zealand) and the «Design-driven Innovation Programme» (Norway) have a narrow target group and focus. We believe

Supporting design driven innovation:a review of selected programmes. REDI / Regions supporting Entrepreneurs and Designers to Innovate

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Cover imageTrois feux vert /Three green lights © Image: Atelier Pascal Colrat. Used by permission

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This document comprises two deliverables of the “Redi” (when Regions support Entrepreneurs and Designers to Innovate) project. “Redi” is developed by a consortium of 5 European organisations, and is funded through the European Design Innovation Initiative. Its aim is to sustain territorial innovation “ecosystems” that stimulate innovation through design.The focus of the partners is territorial and regional development, and the primary target group is the business advisors that are in direct contact with SMEs. The main issue is to bridge the gap between the demand side (businesses) and the supply side (design professionals) in order to unleash the design-innovation potential in various contexts.To do so, the partners have studied different initiatives to support the uptake of design by businesses — and targeting mostly SMEs. The initial survey has covered the last decade, and identified more than twenty of them, mostly in Europe. Two strands of actions have been studied and compared: initiatives driven by design support organisations, and initiatives set up by regional innovation agencies.Out of that group: the most documented and effective — who also happen to be the most recent ones — have been studied in deep.The first section of the report presents the study of actions undertaken by design support organisations, while the second section synthesizes the actions run by regional development agencies. In many cases, the overall architecture is rather similar, but the approaches, funding sources and objectives are slightly different.

Key questions What is the background and architecture of each “best practice”?Which are the targets, and how are the companies getting involved?What kind of tools are developed and implemented?How is the support delivered, and by whom?Are these initiatives connected to other business support actions, or are they running in silos?Is there an evaluation process?Is there an exit scheme at the end of the programme?

Executive summary

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Key issuesWhy is mentoring seen as a key success factor?Are these programmes connected to a broader business or innovation support framework?Do these actions have impact on the design service providers?Do the local innovation policy makers develop an interest for such kind of innovation?Could these ‘best practices’ be adapted to another context?

Key findingsThe most effective programmes include individual support by an advisor or a consultant with a background in the management of design. Mentoring or coaching are reported to:

- be the best way to build trust between the top management and the challenge of integrating design;

- adapt to the needs and demand of businesses;- reframe the initial demand into a project that will support the business strategy;

- instill professional practice in the business: writing a brief, manage tendering, clarify fees, IP rights, deliverables etc.;

- ultimately ensure that design becomes part of the company’s innovation activity.

There is usually a split between the design advisor and the design consult-ant that will execute the design project. Programmes that have focused on getting the design project being done without some preliminary audit seem to have poorer results: matchmaking is not sufficient on the long run.All programmes depend heavily on public funding. Most programmes have ended abruptly, although in many cases it was foreseable (limited funding or contract, as it happens in pilot schemes), and very few have developed exit strategies and survived. Even the initiatives that were or are developed by innovation or business support organisations remain somehow limited.Evaluations confirm that the action is effective, but most programme managers report that this is not always sufficient to convince most policy makers to keep allocating resources. The issue of getting support out of «pilot schemes» tightly focused on design, but streamlined in a broader perspective on innovation has been resolved only by a few programmes. Two of them are worth noticing: the «Design Integration Programme» (New Zealand) and the «Design-driven Innovation Programme» (Norway) have a narrow target group and focus.We believe that many opportunities are left to explore, in order to make design an element of businesses innovation’s strategies. It is one of the key objectives of «Redi» to develop and test different services, by putting the perspective of SMEs and business advisors at the centre.

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Content

ExECutivE summary

rEport on thE Evaluation of dEsign support programmEsDeliverable — Task 1.1

Foreword1. Different forms of business design support have been developed2. Programmes studied 3. Architecture of the programmes 4. Approaches to the delivery of the programmeConclusionMethodology List of programmes identified and investigated

rEport on thE Evaluation of somE rEgional innovation support sChEmEsDeliverable — Task 1.2

IntroductionWhy do we want to promote design towards SMEs? Who is the target group?Which types of actions can be carried out? How should a programme be organized?When should the programme take place and how much shall it cost?Conclusion

final Word

annExEs

Task 1.1 – Survey and evaluation of design support programmes (APCI)

CasE studiEs Compiled by APCI

Design leadership programme for business (UNITED KINGDOM)The Design Integration Programme (NEW ZEALAND)Innovation by design (IRELAND)Danish design support programmes (DENMARK)Design Pilot (NORWAY)Design awareness and design integration programme (FRANCE)Design Bulldozer (ESTONIA)

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dEsignnovation 9th European Conference on the challenges of design in Europe Paris, 9 January 2012

promoting up-and-Coming dEsignErsCompiled by DZNRW

dEsign support in Bulgaria and Estonia Compiled by BSC-SMEs

ovErviEW of thE usE of dEsign in finnish CompaniEs Compiled by Lahti school of innovation

Task 1.2 — Evaluation of some regional innovation support schemes (CCIB)

5 rEgional frEnCh projECts

3PodL’Incubateur DesignParcours du designDEMO: Design Entreprises et Marketing OpérationnelIDDIL: Innovation and design in the tourism industry

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This study compares some programmes that have been implemented in different regions, which had as their core objective to help businesses —and primarily SMEs— integrate design in the course of their activity. The majority of businesses in Europe are SMEs, and various surveys • indicate that less than 50% of them still use design. Moreover, most of these surveys are not qualitative i.e. they do not assess the quality of the design work nor the extension to which professional design is associated to the range of activities and the outward presence of the business. Our field experience would suggest that the design output is uneven in terms of quality, that companies use it within a limited scope (e.g. product, but not branding) and sometimes procure the services poorly. The issue of competitiveness has become critical to most businesses and to nations, as a consequence design has emerged in the last decade as one of the possible means to support, and even strengthen companies in retaining market shares. One might wonder why more businesses have not turned out individually to design: after all, in many of these countries, there is an active design industry, capable of responding to business needs and certainly available for work. Most managers have a low level of awareness about design in general, or rather: they often limit it to graphics, styling and to some specific sectors. The difficulty to encapsulate design in a set of operational definitions, credible slogans, or simple recipes is a well-identified issue. This has justified the existence of design promotion organisations. There is no reason to believe that these organisations have failed in disseminating information and highlighting the value of design, and there is no reason either tobelieve that business managers would disregard support to their activity that usually strengthens the uniqueness of the offer. What has emerged is that handling out information is not enough to drive the integration of design in a company: a form of individual support is needed. This has driven the implementation of various programmes in some countries or regions: Scandinavia, the UK, France, Spain… to name a few.

foreword

• See for instance the table next page

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Our study compares the key features of some of these programmes: •

their background; their target groups; the methodology they follow;the connections they might have to broader innovation support activities;the funding, sustainability and impact of the activities.Within the REDI project, this study will be used to develop new and better services towards businesses.

Proportion of marketing innovative entreprises by implementation 2008-2010

Any type of marketing

innovation

Enterprises that introduced

significant changes to the aesthetic

design of packaging

Enterprises that introduces

new media or techniques for

product promotion

Enterprises that introduced

new methods for product placement

Enterprises that introduced

new methods of pricing goods

or services

% of all enterprises

% of all marketing innovative enterprises

EU – 27 (1) 26.8 47.8 57.8 40.5 42.9

Belgium 29.1 49.9 63.2 30.4 27.7

Bulgaria 12.3 45.5 59.7 41.4 62.4

Czech Republic 29.6 40.3 72.5 31.7 40.2

Denmark 28.2 : : : :

Germany 45.7 48.3 53.2 50.9 38.7

Estonia 25.5 50.3 43.1 50.2 35.2

Ireland 30.4 48.4 67.0 43.7 48.1

Spain 15.1 44.0 57.8 41.3 44.4

France 26.0 63.6 60.7 32.3 41.6

Italy 28.0 49.4 59.5 31.2 42.5

Cyprus 28.3 53.1 84.1 70.6 61.1

Latvia 14.1 48.5 65.6 50.4 65.6

Lithuania 20.7 40.7 34.7 43.0 72.0

Luxembourg 39.0 52.1 58.6 44.0 55.0

Hungary 17.5 38.8 52.5 40.3 59.2

Malta 20.6 48.7 66.7 45.3 38.0

Netherlands 23.1 26.5 66.9 44.9 31.8

Austria 27.9 51.2 62.2 37.2 31.3

Poland 14.3 33.4 54.0 34.7 57.3

Portugal 34.2 50.9 60.0 28.2 51.1

Romania 19.2 46.4 51.4 39.9 67.8

Slovenia 28.4 47.4 63.0 49.9 55.8

Slovakia 19.5 47.8 51.6 41.0 42.3

Finland 27.5 34.0 63.4 30.6 44.9

Sweden 31.9 42.6 63.4 44.4 42.4

United Kingdom 18.3 : : : :

Iceland 32.1 50.0 50.0 47.8 32.8

Norway 20.2 56.2 55.3 36.5 30.5

Croatia 24.2 44.0 54.1 42.4 51.4

Serbia 32.2 48.6 54.2 30.0 68.3

Turkey 35.5 58.6 61.5 42.8 59.5

• While preparing this review, the See platform has been producing also a review of design support programmes. Rather than being concurrent, the two documents are complementing each other. The See platform review takes a policy perspective, whereas this review concentrates on the ways in which the programmes are designed, in order to rethink the manners in which design and innovation support are provided to SMEs. “Policy booklet 6”, See platform, 15 May 2013.

Source: Eurostat — http://epp.eurostat.ec.europa.eu

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1 different forms of business design support have been developed

The promotion and support of design is an activity that started to be established as soon as design emerged. For a long time, most of the actions went towards exhibitions, awards, or competitions. It seems that it is only since the 70’s that activities targeting businesses that were not using design started to develop —rather than promoting businesses that would use it or using design to enhance the traditional furniture or craft sectors. Although it is claimed that there were design policies (possibly under other labels) since the 60’s (Japan•, Finland• •), that authorities would recognize that design could be a contributor to innovation is less than twenty years old. We will focus only on the programmes that have embraced the challenge of helping businesses in their process of integrating design. Three routes have been identified. One gives distinction to the output of the design process, typically by setting up some kind of award with a set target and focus. It is also the oldest, as some awards that still run today have been established in the 50’s. The second route deals more with facilitation, aiming at lowering the barrier between the design and the business communities. The third supports businesses in the integration of design. We have studied recent and distinctive schemes that cover each of the three routes, although the target of Redi is more towards the last one. The main characteristics of each of them are listed here:

- Offering distinction: awards, exhibitions, prizes, labels are some of the most familiar means to distinguish products, services, communications etc. from the crowd. Depending on the criteria, awards may celebrate the output of the design process (most of the design awards), a fewer number might honour the impact it has had on the markets (e.g. Design effectiveness award•••) or

• The first “design policy office” that seems to have been established was at the MITI (Mi-nistry of International Trade and Industry), Japan, 1958.•• See Toni Ryynänen, “Representations of Finnish Design Policy, Discourses of Design Policy in Economical Press”.(http://www.iade.pt/drs2006/wonderground/proceedings/fullpapers/DRS2006_0015.pdf)••• The award is organised by the “Design Business Association” (DBA) (http://www.effectivedesign.org.uk/)

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the design process itself (e.g. Design Management Europe award•). In respect to the objectives of our project, awards have a limited impact in terms of building capacities, unless they would embed some educational follow up — which we have not been able to identify so far. We have included in the annexes a study of the impact of the “red dot for young designers ”, which is a scheme that proves helpful in getting designers into the marketplace;

- Easing up the access to design services: design or business support organisations may facilitate the contact between potential customers and the design community. We include here open databases of design professionals, informal advising, organising one to one meetings, such as those that can take place within fairs or trade shows… Another form of support is to provide financial incentives: vouchers schemes, tax reduction (e.g. including design in the R&D budget) are good examples in that matter. We have looked at the Norwegian “ Design-driven Innovation Programme” scheme, which offers a significant financial aid to a specific part of the design project;

- Capacity building: some organisations might help businesses in developing good practices for integrating design. Seminars with a small audience will be devoted to issues such as “writing a brief”,

“assessing your brand”, “user-centred innovation” etc. These activities tend to prepare companies toward “design readiness”;

- Dedicated advising: in order to get businesses closer to integrating design in the course of their operations, a dedicated advisor will assess the needs and capacities of the company, help in writing the project brief, monitor the selection of a design consultant and possibly monitor the development of the project;

- Bespoke support: when it comes to integrating design into business strategy some organisations are providing a mentoring or coaching service directly to senior managers.

It is probably obvious that the cost of the support increases as we go from information dissemination up to one to one support. The reasons are twofold: the time spent tends to increase (but this is as well true for the staff in the companies), and the daily rate of the advisors or mentors can be significantly high. On the other hand, dedicated support seems to have a long lasting impact and a higher success rate, suggesting that, if the process is well crafted, it might yield more value for money. The focus of these actions is to help companies realise their innovation potential and bring to the market new products and services that have enough value to attract and retain customers. But many small businesses can benefit from a modest, yet professional review of their existing presence:

• The award is organised by a consortium of design support organisations (http://www.designmanagementeurope.com)

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goods, packaging, logo, printed material, website… It is challenging to see that many SMEs carry a whole history with them, which is sometime perceived as a burden rather than an asset. It is refreshing to see that if the company has survived and retained its know-how, it can definitely revive and expand its markets in a globalized world. Time brings credibility to a brand, and nostalgia can turn the past into trendy vintage products and open valuable markets. In such matters, design is a key factor of success because of its core competence regarding the user’s experience of a brand and the integrity of its expression: the consolidation of the brand language, the organic expansion of the market and product/service portfolio form the ground for a sustainable business.Cases that illustrate this trend are for instance:

- Aga (UK) (http://www.designcouncil.org.uk/Case-studies/Aga/);- Anglepoise (UK) (http://www.designcouncil.org.uk/Case-studies/Anglepoise/);

- KTM (AU) (http://database.designmanagementeurope.com/uploads/case/2/226.pdf);

- Tolix (FR) (http://www.tolix.fr/pages/1-historique);- Fritz Hansen (DK), Vitra and its Eames range of products are, amongst others, the proof that some brands still manage to make profit out of old —“timeless”— products.

Studies derived from the “Design Management Europe Award” applications suggest also that there is no general correlation between the level of design integration and the commercial success. In other words, design does not need to be “integral” to the strategy of the business before it achieves a huge impact. Similarly, a business can stand at the intermediary steps of the

“design ladder” but there might be little or no value to climb up.• What seems to emerge from that is that the key success factor is to find the right fit between the business strategy, its competences, capacities, the markets it wishes to serve and the design skills that should turn these factors into tangible products, services and signs.

There is a shortage of studies that would look at design and management using a qualitative focus. The seminal study of the Design Council (UK) that attempts to correlate the financial success of rather large businesses to their design reputation•• refers indirectly to qualitative aspects, and so does the study done by the Red dot••• (DE). Although these studies might be criticized (e.g. sample, measurement criteria, bias towards the “product”…),

• Developed by the DDC, the “design ladder” is a simple classification of the use of design by businesses that has been widely used across Europe. •• “The Impact of Design on Stock Market Performance.” London, Design Council, 2005. See also J.H. Hertenstein, M. B. Platt, R.W. Veryzer (2005): “The impact of Industrial Design Effectiveness on Corporate Financial Performance”, J. Prod Innov Manag, 2005; 22:3-21.••• “Design value. A strategy for business success”, Peter Zec and Jacob Burkhard, Red dot edition, 2011 (http://www.icsid.org/feature/current/articles1110.htm).

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they suggest that the quality of the design work is significant: quality means here the relevance of the design work in respect to the ethos of the business. We could equally say that design and its careful implementation into a business is symptomatic of a good management of the innovation strategy. This reminds us again that design reveals qualities (in the sense of attributes), and therefore produces value through the differences it is able to embed, rather than being a standardised and objective process. Despite the common saying that “taste is individual”, in the professional field of design qualitative does not mean subjective.

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Qualitative, scalable, rooted in values, context and companies’ legacy: these are factors that make it difficult to deliver a standardized support to businesses. Hence the treatment of design as an “exotic” activity, and resorting to dedicated advisors as a possible response to the challenge.It is tempting to consider that mentoring is the best answer. If, from a company’s perspective this is probably an ideal approach, it might not be a scalable solution for the support providers: the costs and staff required to implement it might make it inefficient for public budgets, or at the expense of limiting it to a small number of selected businesses. The question remains then: could some of the activities be reshaped, associated to some others, in order to streamline design support in the bigger picture of support to innovation and SMEs? This is what our project will attempt to investigate. This report focuses on a selection of design support programmes that have gone beyond dissemination about the role of design, or good practices etc., and have engaged actively with businesses. We have compared the various architectures developed, and illustrate what they have tried to achieve.

The following programmes have been studied in depth (See annexes page 47):

- Design Leadership Programme for Business(formerly Designing Demand), British Design Council (UK). http://www.designcouncil.org.uk/designingdemand

- The Design Integration Programme (next step of the Better by Design initiative), New Zealand Trade & Industry (NZ). http://www.betterbydesign.org.nz

- Innovation by Design, Centre for Design Innovation, North & West Ireland (IE) http://www.designinnovation.ie

- Design 360 and Design boost, Danish Design Centre (DK) http://en.ddc.dk

- Design-driven Innovation Programme, Norwegian Design Council, Innovation Norway & Research Council of Norway (NO) http://www.norskdesign.no/design-pilot/category8315.html

- SME support pilot programme in Brittany and Picardie regions, APCI (FR)- Red dot “young designer”, Design Zentrum Nordrhein Westfalen (DE)

2 programmes studied

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This section summarizes the findings regarding the organisations involved in delivering the programmes, the global funding schemes and the way in which beneficiaries are being selected.

DELIvERyThe survey shows that most of the programmes have been developed and are actually delivered by dedicated entities, typically design support orga-nisations. The “Success by design” report (2003, NZ•) suggests the imple-mentation of a dedicated team — which will be integrated within New Zealand’s national economic development agency — that will be in charge of delivering the programme. The “Cox Review••” (chapter 4) suggests that the “Designing Demand” programme — as it got called afterwards — should be rolled out through the existing Regional Development Agencies. The scheme was an expansion rather than a reorganisation of a previous pilot, in which the Design Council and local design advisors developed an individual business support scheme (“Design for Business”). It did not suggest a rethinking of the global architecture of the provision of design and innovation support, although the review pointed that: “at present, there is a wide variety of schemes available to support SMEs. During the review, the nine RDAs identified over 70 different initiatives, which, one way or another, have the aim of linking creativity, design and business.” (Cox Review, p.19) The overarching objective of all the programmes reviewed••• is to support the competitiveness of individual businesses, rather than sectors or regions. Most programmes seem to have quantitative objectives (number of SMEs supported) rather than any other priority. We have not found clear statements that would point at a broader perspective, such as macro-economical or socio-economical approaches: e.g. focus on some sectors, territories, quality of jobs — raising the knowledge or skills intensity. It is likely though

3 architecture of the programmes

• This “report and strategic plan” was submitted to the New Zealand Minister of Industry and Regional Development by the “Design taskforce”, 27 May 2003•• “Cox Review of Creativity in Business: building on the UK’s strengths”, HM treasury, November 2005••• See the list of all programmes that have been reviewed on page 13

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that some of these issues would indirectly come up in the support process, as much as it is implicit that the ultimate justification of such programmes is to sustain the existing industry. In the same way, we have not found any reference to criteria that would assess on a broad manner the innovation capacity of businesses vs. evaluating the innovation in a given product or service: support is often project based or driven. This being said, two programmes have a distinctive scope. New Zealand’s

“Better by Design / Design Integration Programme” has a focused target group, as it is dedicated only to companies which markets are overseas, among other criteria. Norway’s “DIP” supports only the «pilot» phase of the design process, if it complies with some pre-set criteria: user-driven innovation. Finally, a French pilot programme is running in 2013: its objective is to support ten innovative businesses in clusters (“pôles de compétitivité”) to turn their proven concept into market-ready products or services with the support of design.

FINANCIAL RESoURCESAll the programmes rely on public funding to a significant extent. These resources may cover almost 100% of the external support (advisors, FR; Designing Demand, UK until 2008), down to 50% (NO; UK). The funding is directed to the support organisation, rather than to the business itself: it comes as a grant earmarked to a project, not as a voucher•. It stops —within the framework of the action— when the advising ends, which is roughly when the company hires a design consultant. Obviously, there might be further funding opportunities available to ease up the cost of new product development (e.g. grants or specific loans for prototypes), but these are not embedded into the programme itself: the Norwegian DIP programme is a gateway to other existing innovation support schemes••. New Zealand has again developed an original scheme, as the “Design Integration Programme” covers “up to a maximum of 50% of approved projects to cover the costs of external business advisors, design consultants and mentors, and external costs associated with prototyping.” Discussions with some of the programme managers suggest that companies should contribute in cash to the programme. Whether this is a “flat fee” or a ratio of the estimated cost of the service, the fact that business managers accept to contribute shows commitment and develops a responsible attitude towards the service delivered. This point might be

“cultural”, and transferring the model in another context would probably

• Three vouchers schemes have been reviewed: the “Creative Credits” programme run by Nesta in Manchester City Region (UK, 2010), the “Vinci” programme, run by Austria Wirtshaftsservice in Salzburg region (AU, 2012-2013), the “FAD-INS” programme run by the Cambra de Comerç de Barcelona in Catalonia (ES, 2012-2013). None of the programmes interfere in the development of the brief or the matching between the business and the creative consultancy. They check the eligibility of the proposal against the programme criteria. Vouchers do not exceed € 5,000.•• The programme claims a multiplier of 75: for 1 million NOK invested (approx. €130,000), applications for innovation support reached 75 million NOK (approx. 9.7 million €).

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require a sensitive adaptation: it is stated that many businesses that never used design consider that engaging in it (or in any “creative activity”) is inherently risky, and close to gambling. The support offered by established professional organisations benefits from their reputation, and contributes to tear down clichés and reiterates that design — or creative services in general — goes far beyond the fuzzy generation of ideas and is a professional service that brings value. Public funding is limited in time and becoming more and more scarce. Although most programmes seem to achieve their objectives, many of them have been stopped or significantly transformed. Since the UK government abolished the Regional Development Agencies in 2010, the Designing Demand programme is now being delivered directly by the Design Council under the name “Design Leadership Programme for Business”. The French support action has been significantly reduced, and focuses now on helping SMEs in industrial clusters (“pôles de compétitivité”). This raises the issue of the sustainability of design support programmes that do prove effective in addressing the needs of small and medium businesses. The status of these programmes would be better approached from a business or innovation support policy perspective: apart from New Zealand, programmes report being set as “design support”. We can wonder whether such activities would survive better if they were integrated in a comprehensive offer of innovation/ business support services. Alternatively, we could also discuss whether the convincing results achieved by some of the businesses that got engaged in the programmes• could serve for promoting the design programme as a commercial service and define its market value.

SELECTIoN oF BENEFICIARIESThe beneficiaries of the programmes are individual SMEs that have de facto been established for a while. Although the age of the business is not an exclusion criterion, other criteria such as the turnover, the size of markets, the growth rate etc. would indirectly exclude smaller or younger companies. There are no prerequisites in terms of the previous use of design in the company. Eventually, the French programme was specifically targeting businesses that had never used a professional designer in their new product development. A key criterion for selection is the commitment of top management.

“Design Boost” (DK) or “Design Integration Programme” (NZ) do require that the CEO or the top manager, and another senior manager commit to the programme by attending the activities (in short: CEO+1). Although the French programme did not make it explicit, the fact that senior management was mentioned as part of the project team would distinguish the application. Obviously, the constraint has been set up following failures of former actions in which design was not endorsed by the top management. It also reflects the upscaling of the programmes, which focus on the integration of design within the business strategy, rather than to the support of a single project.

• See for instance the evaluation of the impact of the Designing Demand programme, 2012

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The underlying assumption behind most programmes is that the integration of design has more to do with capacity building than with a transfer of competence: in other words, long term success lies primarily in the transformation of the vision of the managers and the staff in general. It is demonstrated by the results of the 2012 review of the “Designing demand” (UK) programme: all companies that have been through the programme came out confident about working with design, and 48% of them have invested in further design projects. The programme does provide some kind of mentoring. This point might be of interest if new programmes were to be delivered: how much of the support would have to do with what we could call “technical assistance” (e.g. writing a brief, selecting a design consultant, monitoring a design project…), and how much would have to do with streamlining design within the global activities of the company. This challenge finds a radical response in the transformation of the former “Better by Design” (NZ) into the current “Design Integration Programme”: the focus is to “build design capability by partnering companies with design integration coaches”. It is likely that such a shift in perspective will redefine the role of the design manager — the competence being at least distributed, if not shared. Finally, we have investigated the identification strategy used by the programmes. Some are pro-active, as they have defined target groups (FR) or selective criteria (NZ, UK). Others might appear more flexible, although they will use various routes to scout applicants: business advisors (UK, FR), networks, one-to-one calls (DK, UK), information event (IE, FR), call for applicants (DE, NO). The Design Council has a marketing campaign and uses also its portal to recruit candidates. It is important when running such programmes to adapt to the readiness of the company and its pace of activity: SMEs managers have often busy agendas, and might not be able to fit within too tight constraints. This might be an additional reason for having one to one support.

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It is probably not by choice, but by necessity that the programmes have resorted to forms of bespoke support. Having an advisor that “has a face”, is available to listen to the expectations of the business and will translate them into adequate modes of interfacing with creatives is a way to embed design deeper in the company. A contrario, the “Creative credits” voucher project run by Nesta in Manchester shows that projects initiated by businesses are likely to remain limited: 60% of the projects went to web communications•. It could be that the amount of the vouchers limits the level of intervention, but it is also clearly stated that the approval of the application is merely administrative. The question that remains is how a business can build enough knowledge to jump from a project to a design strategy, without a broader perspective being infused from the start.

TyPES oF ACTIvITIES

Group workWe exclude here the information sessions. Some programmes (DK, IE) run small group sessions (5/6 participants) as a way of starting the discussion and the support activity. The “Innovation by design” (IE) programme offers three thematic half-day sessions, on the topics of “user-centred design”,

“brand” and “service design and customer experience”. The companies are invited to further work in house on the material developed with the support of a design advisor. This programme requires also from the businesses two presentations of their progress and plan of action to their peers: this seems unique, as it fosters discussions with other senior managers “in action”, and complements the role of the advisor.

Advisors: “it’s a journey, not an intervention” (Better by Design)There is a strong divide between the programmes that we have studied: the expected role of the advisors can be either the one of consultant, mentor, or coach.

4 approaches to the delivery of the programme

• H. Bakhshi, J. Edwards, S. Ropert, J. Scully, D. Shaw: “Creating innovation in small and medium-sized enterprises” (p. 21-23), London, Nesta, 2011. We do not question the effectiveness of the voucher programme, but rather highlight that the routes are very different, and both are worth considering in terms of policy making.

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The “Design Integration Programme” (NZ) has a radical approach, and leapfrogs other programmes. The architecture offers a coach to the CEO and the top managers, for up to two years, in order to infuse “design thinking” — or rather: a customer’s perspective focus — all through the different divisions of the business. One of the difficult issues is to find coaches in regions: the profile requires a senior management experience in an industry, and a successful record of using design strategically. The other programmes offer a slightly blurred image of what the role of the design advisor is. The French programme has — at least in the implementation managed by APCI — two distinctive figures. An APCI project manager — who might not be a designer — will act as a referee, taking care of an initial assessment, and then matching a design advisor with the business, and following up all through the process. The design advisor will act as a business consultant and will visit the company, audit its expectations, competences, and assets, and will deliver a report with recommendations. He/she will also help the company in sourcing out design consultancies that will take care of the first project. Advisors are generally senior designers, selected through a tender, and matched when required. “Design boost” (DK) offers both consulting, through small collective workshops, and mentoring. The mentor follows up the relationship between the company and the design consultant hired for the project. “Design Leadership Programme for Business” or “Innovation by design” (IE) support is delivered on a one to one basis, through consultants, most of them having a background in design. These programmes do not offer a support to businesses that would go beyond initiating the first design project. Yet, the interviews we have had with the advisors confirm that SME managers expect more: e.g. some follow up to the handling of the brief to the design consultancy occurs almost naturally, usually through informal phone calls. It turns out that in practice the role of the design advisor is blurred: to what extent is he or she a mentor, a consultant, a coach? SMEs do appreciate a view of the contribution of design to business that goes beyond the technicalities of writing a design brief, or clarifying IP rights and fee structures. They appreciate an ordering of the actions (the advisor becomes some kind of coach), or some support in reaching designers capable of responding to their needs (e.g. making a shortlist and discussing it, which is somehow mentoring). What would the profile and the role of the advisor be if the programmes targeting SMEs had a mid-term focus remains uncharted, and probably worth investigating.

Background and cooperationDesign advisors have, to a large extent, a background in design, and a significant experience with industry. But this is not a sufficient credential: all programmes do insist on the fact that advising requires more than being an experienced designer. Advisors are required to have a specific mindset:

“they have business acumen, practical know-how and a genuine passion to support growth through innovation and design” (Designing Demand, UK).

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The Design Council trains its advisors annually: the advisors view this as a great opportunity for improving their skills. The Danish programmes have as well at times offered training about the skills required to act as a design advisor. “Design 360” added to the advisors some mentors —“design managers of large companies or CEO of SMEs with huge design experience”— in the small workshop sessions of the programmes, and reports that this has been an essential success factor. APCI relies on a roster of design experts with different profiles (product, branding, design management etc.), who are selected by an advisory committee following a call for applicants. Interviews with advisors and with businesses confirm that the availability of a person knowledgeable about the technicalities of design implementation is essential: he or she will provide an overview of how the process is developing that helps business managers feel in control of what is going on. Design advisors do not advise beyond design, and they do not seem to work with other business advisors within the same action: this is not embedded in the architecture of the programmes, or in the process of delivering it. The programmes’ descriptions do not mention any bridges, and the interviews we had confirmed this point. Advisors might have personal insights on other issues (e.g. financing, IP…), but if advice is given, it will be informally. In the same way, unless they have personal connections, other business advisors seldom approach design advisors in order to offer a “global service” regarding innovation or new product development. The paradox is that the programmes are financed by public funds, they might be scripted by design support organisations, but they are overseen by central government organisations that consider design as an element of success for SME. Yet, apart from the «Design Innovation Programme» (NO) no clear connection is made (or requested) to complementary support resources that are also dedicated to supporting innovation in businesses: e.g. vouchers, financing, skills, IP etc. This issue is one that the Redi project aims to clarify and address•.

ASSESSMENT AND EvALUATIoN (wITHIN CoMPANIES)Some programmes do deliver a preliminary “design audit” that is used to frame the design project that will be initiated, but could also serve as a first assessment tool. It could be used to monitor the integration of design in the innovation strategy. Nevertheless, this would require a periodical review, and it seems that no programme so far has envisioned such architecture. We can guess though that, with a coaching of up to two years, the “Design Integration Programme” (NZ) is likely to have some review occur, at least informally. One of the most difficult things is to measure the “ROI” of design in business, and this is even more true with the smallest ones, who are yet a significant

• The Interreg IIIC “Winnovate” programme was an attempt to get both communities working together. In the words of one of the programme managers: “A very potent and successful collaboration. However they need to recognise each other’s expertise and boundaries. Definately the way forward.” http://www.seeplatform.eu/uploaded_files/UK%20Winnovate.pdf

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target group for most support activities. The reasons are multiple, and we could mention among them: the time lapse between the introduction of a new product or service and its commercial success, the intangible assets that design integration may build (such as a new attitude towards innovation, capacity building etc.), the difficulty to track down detailed project expenses (cost accounting is not always implemented in smaller companies), the difficulty to distinguish a strict “designer’s contribution” within a broader change (e.g. new distribution or new marketing strategy in relation to the new product or service). The latest review of the “Design leadership programme” (UK) suggests that on average £1 invested brings an estimated ROI of £20. This is an independent evaluation result, and it does not mean that each business has a methodology — or at least instructions — to measure the impact of the introduction of design in details. The issue could be further investigated when developing future design support actions. A tool or some simple recommendations that would be sensible, considering the diversity of SMEs might be an addition to the material that is delivered by the programmes. It would give businesses the conviction that design is worth an investment, and help business and design advisors in their job.

SUPPoRTING THE DESIGN INDUSTRyWhile most of the schemes are targeting companies that would procure design as a service, it is also expected that they benefit also the design consultancies. The latest review of the “Designing Demand” programme (UK) highlights the fact that 62% of the agencies undertook additional design commissions from the client they gained through the programme. Another significant impact is the quality of the design briefs, and therefore of the relationship built between the company and the design consultants. By helping companies in the briefing, tendering and selection process, the French programme aims to teach businesses to become good, if not perfect clients. This raises the level of response of the design consultancies, as they realise that the brief is comprehensive and the tendering proc-ess is transparent. Many design professionals, especially in regions, face customer relation issues of all sorts: poor commissions, low fees, lack of credibility and trust, unclear contracts etc. In the long run, it is expected that a better client base will indirectly result in a better regional offer. One issue is to get a balance between local providers who are easy to reach, but might have limited resources, and large consultancies, who have more reputation but can be less reactive or even condescending with smaller businesses. Within this category, we would like to mention the “red dot young professionals” scheme (DE). This action offers, through a competition, 50 free entries to the prestigious “Red dot design award”. The young professionals that are selected will see their project judged as strictly as

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any other entry to the award. What is unusual is that the “young professional” winners of the red dot will get opportunities for developing their project into a business: the reputation of the award acts as a credential and a road to success. It is the only case we know of an award given to a forthcoming product, which has a direct impact on its availability on the market. Finally, activities such as design incubators, which can provide significant help to young professionals fall outside of the scope of this review and have not been studied.

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The review of the various design support schemes demonstrates that, in mature economies, businesses, and specifically SMEs, cannot stop at being aware of design, they need to integrate it in the course of their activities. But why are the schemes relying on a lot of one-to-one advice? Is it design that is so “unique” or isn’t it the SMEs that are unique: we can hardly imagine that all management recipes and methods do apply in a uniform way, across all sectors, sizes, national or regional economic contexts. We have underlined the fact that the costs of most of these programmes are supported by public money, which, in the current context, can jeopardize their sustainability — or has led to the termination of some programmes without any exit strategy•. There are “business models” to be invented, externalities to question, and probably new schemes to investigate. Nevertheless, there is no reason to believe that design support could not be better integrated in the whole business and innovation support schemes that are available in many regions, under diverse forms and through different procedures, albeit the right level needs to be defined and tested in each context. Following that, creating links with innovation support activities, and sustainable funding schemes could be the core of policy making. The additional study done in the project, which focuses on “innovation support schemes that have a design component”, shows that such bridges are possible, but still fragile. It is the aim of the Redi project to take a company’s perspective, and to investigate the ways in which comprehensive measures can be developed in which the user-centred perspective that design is able to bring is not seen as a side track to successful innovation.

Conclusion

• Yet the impact on the global economy of the nation should be taken into account. The last review of the “Designing Demand” programme shows that “£5.67 gross value added (GVA) and £3.75 net value added (NVA) for every £1 of public investment. The evaluation also found that 2,460 net full time equivalent (FTE) jobs were created, safeguarded, or anticipated as a direct result of the programme”. “Better by Design” reports that, for the businesses that went through the programme, the “annualised average revenue growth is 15%, annualised average export growth is 24%, and 50% of growth comes from top 10 clients. Based on additional exports, investment in Better by Design over 5 years has produced an ROI of 40:1.”

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This study results from an extensive desk research about the programmes that ran between 2005 and 2012, mostly in Europe (see list p.25). Among those programmes, those listed on page 13 were selected for the following reasons:

-the level of documents available, including evaluation, history or other supporting documents;

-the reputation they have in the design support community;-the specificities they embedded;-their scale and their impact.

To make this choice, we relied on various sources: the material itself and its quality, the number of events in which a programme was presented, and the valuable studies done by the See project, available on the website: http://www.seeplatform.eu/seelibrary.

To complement the desk research, we have used the presentations made at APCI’s “Designnovation 2012” European conference (see programme on page 111). Programme managers and advisors, as well as CEOs of companies that had benefitted of such support actions were invited to share their views on the programmes and on design support in general.In addition, Jean Schneider has conducted personal interviews with the programme managers.

methodology

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Country Name of the programme Delivered by Period

Denmark Design Boost Danish Design Centre 2010 – 2012

360° Danish Design Centre 2010 – 2012

Estonia Design Bulldozer EDC (Estonian Design Centre) & Entreprise Estonia

2012 – 2014

France (regions)

Design awareness in SMEs programme (10 regions)

7 organisations (one organisation / region)

2008 – 2011

Design integration in clusters programme (pôles de compétitivité)

APCI (1 region only) 2013

Ireland Innovation by design Centre for design innovation 2007 – 2008

Netherlands (Limburg)

Design Pressure Cooker+ Syntens (innovation centre of the Ministry of Economic Affairs)

2005 – 2007

New Zealand Design integration programme (v. 1)

Better by Design (NZ Ministry of trade and industry)

2006 – 2011

Design integration programme (v. 2)

Better by Design (NZ Ministry of trade and industry)

2012 –

Norway Design Support Programme Norwegian Design Council & Innovation Norway

1998 – 2009

Design driven Innovation Programme

Norwegian Design Council & Innovation Norway

2009 –

Spain (Catalonia)

Product Innovation and Design Programme

CIDEM (Centre for Innovation and Business Development) & BCD (Barcelona Design Centre)

2006 – 2008

United Kingdom Leading by design (South-West England)

Business Link Wessex 2004 – 2005

Designing Demand Regional Development agencies & Design Council

2007 – 2010

Design Leadership programme for business

Design Council 2010 –

list of programmes identified and investigated

note: 2 types of programmes have not been studied in depth, as their objectives or delivery falls usually outside the scope of the project: creative vouchers schemes, or similarly subsidies aiming directly at reducing the cost of design services, and support actions towards the design community (e.g. database, incubators, design promotion events).

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Programmes Better by Design (NZ) Design Council (UK) APCI (FR) Danish Design Council (DK) Programmes

objectives Management teams don’t just need to understand design better, they need to think and act like designers. The Design Integration Programme helps companies use design to become more innovative, efficient and interna-tionally competitive.

Fostering a greater understanding of the strategic role design can play in business and embeding design tools, techniques and management within business to build skills and capability.

Introduction of design in SMEs in 10 regions (delected on a voluntary basis): supporting SMEs that had never used design to define a brief design and select a design consultant

Changing the mindset of companies in order to progress them up the Design Ladder by building the right bridge between the industry and the design companies. Two programmes were created:

– Design Boost: introducing companies to design– 360° Design: improving the use of design

through business development and cohesion (design strategy)

objectives

Budget N/A The programme is part funded by Government through a grant of £1.3m per annum. Some activities have been supported through the ERDF.

App €100,000 per region (for the period 2009–2011; 10 regions)

Specific Design Fund to support designer’s job (2011 and 2012)

– Design Boost: €90,000– 360° Design: €200,000

Budget

Number of companies supported

Around 150 businesses supported since 2006 (launch of the programme) and around 80 are currently engaged with the programme.

There is a limited number of seats: 150 SMEs, 60 technology start-ups and 20 public services should subsidised support in 2012.

– Design awareness workshop: 20 companies per region

– Design integration support: 6 companies per region

– Design Boost: app 15-18 companies (5 per session)

– 360° Design: app 40 companies (12-15 per session)

Number of companies

supported

Cost per and for the company

Coaching services are funded 50/50 with customers.

50% of the cost of the mentoring service is paid by the company (from £1,000 to £5,000).The cost of the design project is fully supported by the company.

– Cost: €8,000 fully supported by the Dirrecte (regional state organization)

– Design awareness workshop: €30 paid by the company (covers lunch and coffee)

– Design integration support: free for the selected companies

– Design Boost: €1,000 paid by the company– 360° Design: €1,350 paid by the company– Design Fund: grant of 50% of the designer’s job

(max. €5,400)

Cost per and for the company

Duration of the programme

The programme is intensive and may last for up to two years.

The mentoring usually takes a priod of six to ten months depending on the nature of the project.

1 year per region.– Design awareness workshop: 1 day session– Design integration support: 5 days

– Design Boost: a 3 half-day workshop within 2 weeks (short intensive course)

– 360° Design: 3 to 4 days workshop (in-depth course)

Duration of the programme

Methodology and service overview

Design integration is a journey and Better by Design support each company as it progresses through the six stages of the programme. The programme is delivered inside each company and works on the problems and the opportunities the business faces. Better by Design helps build design capability by partnering companies with design integration coaches.

Support and coaching delivered by Design Associates: workshops, coaching and peer-to-peer support.

– Design awareness workshop: collective session.– Design integration support: individual support; analysis and diagnosis delivered by a design consultant to formalize the design brief; then launching of the design project.

– Individual and collective workshops – Mentoring– Specific funds to support the designer’s job

Methodology and service

overview

Results – 15% annualised average revenue growth– 24% annualised average export growth– 50% of growth comes from top 10 clients– Based on additional exports, investment in Better by Design over 5 years has produced an ROI of 40:1Better by Design sets an ambitious target of 50 companies generating an additional $500 million in export revenue within five years, growing at five times the annual GDP. 2010 figures showed its top 50 saw a combined increase in export revenue of about $722 million (at which stage the programme had been going five years but the majority of those companies had been involved for only three).

The programme has supported over 2,000 SMEs and coached over 700 businesses since 2007.The programme aims to foster a greater under-standing of the strategic role design can play in business (awareness and understanding) and embed design tools, techniques and management within business to build skills and capability.The 2012 evaluation shows high gross and net commercial impacts as a result of the programme.Impact on business: for every £1 invested in design,

– £20+ ROI– £4+ increase in net operating profit– £5+ in increased exportsThe estimated national gross impacts are combined actual/anticipated additional revenue of £140m, an overall increase in operating income of just under £28m.

The programme has been successful, with most businesses finalising a project.In some cases, the actual project differed significantly from the initial one, presented by the company in its application. This suggests that the audit has an impact on reshaping the perspective that the SME’s top management has about design.

The 360 Degree Program is a great way of introducing businesses to designers and reverse. Today, a large numbers of businesses attending the program, are working with designers they met during the program. Others have found designers, that were not part of the program — but the program has helped them to identify their design neeeds, and to have

“design conversations”.

Results

Comparison of the most mature design support programmes

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Programmes Better by Design (NZ) Design Council (UK) APCI (FR) Danish Design Council (DK) Programmes

objectives Management teams don’t just need to understand design better, they need to think and act like designers. The Design Integration Programme helps companies use design to become more innovative, efficient and interna-tionally competitive.

Fostering a greater understanding of the strategic role design can play in business and embeding design tools, techniques and management within business to build skills and capability.

Introduction of design in SMEs in 10 regions (delected on a voluntary basis): supporting SMEs that had never used design to define a brief design and select a design consultant

Changing the mindset of companies in order to progress them up the Design Ladder by building the right bridge between the industry and the design companies. Two programmes were created:

– Design Boost: introducing companies to design– 360° Design: improving the use of design

through business development and cohesion (design strategy)

objectives

Budget N/A The programme is part funded by Government through a grant of £1.3m per annum. Some activities have been supported through the ERDF.

App €100,000 per region (for the period 2009–2011; 10 regions)

Specific Design Fund to support designer’s job (2011 and 2012)

– Design Boost: €90,000– 360° Design: €200,000

Budget

Number of companies supported

Around 150 businesses supported since 2006 (launch of the programme) and around 80 are currently engaged with the programme.

There is a limited number of seats: 150 SMEs, 60 technology start-ups and 20 public services should subsidised support in 2012.

– Design awareness workshop: 20 companies per region

– Design integration support: 6 companies per region

– Design Boost: app 15-18 companies (5 per session)

– 360° Design: app 40 companies (12-15 per session)

Number of companies

supported

Cost per and for the company

Coaching services are funded 50/50 with customers.

50% of the cost of the mentoring service is paid by the company (from £1,000 to £5,000).The cost of the design project is fully supported by the company.

– Cost: €8,000 fully supported by the Dirrecte (regional state organization)

– Design awareness workshop: €30 paid by the company (covers lunch and coffee)

– Design integration support: free for the selected companies

– Design Boost: €1,000 paid by the company– 360° Design: €1,350 paid by the company– Design Fund: grant of 50% of the designer’s job

(max. €5,400)

Cost per and for the company

Duration of the programme

The programme is intensive and may last for up to two years.

The mentoring usually takes a priod of six to ten months depending on the nature of the project.

1 year per region.– Design awareness workshop: 1 day session– Design integration support: 5 days

– Design Boost: a 3 half-day workshop within 2 weeks (short intensive course)

– 360° Design: 3 to 4 days workshop (in-depth course)

Duration of the programme

Methodology and service overview

Design integration is a journey and Better by Design support each company as it progresses through the six stages of the programme. The programme is delivered inside each company and works on the problems and the opportunities the business faces. Better by Design helps build design capability by partnering companies with design integration coaches.

Support and coaching delivered by Design Associates: workshops, coaching and peer-to-peer support.

– Design awareness workshop: collective session.– Design integration support: individual support; analysis and diagnosis delivered by a design consultant to formalize the design brief; then launching of the design project.

– Individual and collective workshops – Mentoring– Specific funds to support the designer’s job

Methodology and service

overview

Results – 15% annualised average revenue growth– 24% annualised average export growth– 50% of growth comes from top 10 clients– Based on additional exports, investment in Better by Design over 5 years has produced an ROI of 40:1Better by Design sets an ambitious target of 50 companies generating an additional $500 million in export revenue within five years, growing at five times the annual GDP. 2010 figures showed its top 50 saw a combined increase in export revenue of about $722 million (at which stage the programme had been going five years but the majority of those companies had been involved for only three).

The programme has supported over 2,000 SMEs and coached over 700 businesses since 2007.The programme aims to foster a greater under-standing of the strategic role design can play in business (awareness and understanding) and embed design tools, techniques and management within business to build skills and capability.The 2012 evaluation shows high gross and net commercial impacts as a result of the programme.Impact on business: for every £1 invested in design,

– £20+ ROI– £4+ increase in net operating profit– £5+ in increased exportsThe estimated national gross impacts are combined actual/anticipated additional revenue of £140m, an overall increase in operating income of just under £28m.

The programme has been successful, with most businesses finalising a project.In some cases, the actual project differed significantly from the initial one, presented by the company in its application. This suggests that the audit has an impact on reshaping the perspective that the SME’s top management has about design.

The 360 Degree Program is a great way of introducing businesses to designers and reverse. Today, a large numbers of businesses attending the program, are working with designers they met during the program. Others have found designers, that were not part of the program — but the program has helped them to identify their design neeeds, and to have

“design conversations”.

Results

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report on the evaluationof someregionalinnovationsupport schemesDeliverable — Task 1.2

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In the last decade, many regions in Europe have integrated the fact that innovation is not only technological. Social issues, marketing, process, organisation, services are also significant sources of innovation. The question is: how can we translate such observations, which is now stated in all “Regional Innovation Strategies”, into policy measures and actions towards SMEs? This synthesis discusses the achievements of actions carried out in France aiming at supporting design as a source of innovation. Unlike most of the actions documented in the previous report, we have studied actions that have been developed at the initiative of regional or national innovation or business support bodies. Although, in most cases, design support providers (such as design promotion bodies or design consultancies) might have been integrated already at the planning stage, it remains that regional innovation organisations have developed the initiative and its global architecture. The methodology has been to interview all French regions on what has been done in the recent years as business and design support schemes; from this first survey, the most interesting programmes have been studied more deeply in order to identify success key factors, but also failures and obstacles. In addition, some other European actions have been also investigated: their results are fairly similar.

The findings are presented under the following headings:- Why do we want to promote design towards SMEs?- Who is the target group?- Which types of actions can be carried out?- How should a programme be organized?- When should the programme take place and how much shall it cost?

introduction

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Most business and innovation support organisations are convinced that design is a key element of competitiveness. New, different and original products or services open new markets and allow reaching new customers.But are entrepreneurs also aware of that? According to the experience of business advisors, most of them are not, because the word is misunderstood.

“Design” is generally associated to sectors that deal with decoration, luxury, fashion, furniture… It is not even linked with graphic design, although most businesses do understand the need of having some logo.

what can business advisors do in order to change this narrow vision?- Informing and explaining: a first level is to stimulate innovation in SMEs by showcasing that the contribution of a designer can have a leverage effect;

- First hand experience: another approach is to use a project to link the company strategy to the development of new products and services;

- Technical support: some actions aim at helping businesses in addressing specific elements of the design project (e.g. writing a design brief, selecting an offer, protecting the idea and the creation, funding the design project…).

Recommendation:- Define a specific objective for the action.- Messages and actions have to be adapted to the targets and level of interest of the business.

- Distinctions should be drawn between managers that are first time design users, users in a given field of design (e.g. graphic but not product), and have an experience of using design in different areas or sectors.

1 Why do we want to promote design towards smEs?

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Many different organisations or stakeholders can be addressed through design support activities. From the supply side (designers) to the demand side (businesses, end customers), there are intermediaries that show different needs to be taken into account. The architecture of the action will greatly benefit from prioritizing the targets, as they are often intertwined: taking a holistic view on things (from suppliers to end users and markets) is an asset, if not a key success factor of the action.

Citizens and the general public: as clients, it can be interesting for companies to get design promoted to the public. “Design is good for tourism and attractive- ness”: big cities often communicate on their actions e.g. “Shop & Design” in Lyon, Paris, Lille, Marseille… “Les Escales du design”, or “Design tour” in various cities… For example, shopping centres can organise specific activities.

Medias and journalists: the understanding of what design can do depends a lot on the messages conveyed by the press and media. If journalists also limit design to “decoration”, it will sustain the restricted vision of design by entrepreneurs.Recommendation: when developing a support programme, a specific task should focus on media content and coverage.

Public authorities: the “non technological” dimension of innovation is seldom seen as a component of regional development strategies. Local, regional and national public organisations should consider it better in their policy making in order to develop specific actions. But what can be true in urban areas does not work in rural zones. Bridging the gap is the core objective of the Redi initiative.Recommendation: involve elected members of public authorities when designing a programme.

Business support organisations: development agencies, chambers of commerce, technological parks, incubators etc. are in daily contact with companies. They are the first interface to promote the benefits of design with a neutral approach (as opposed to designers, they have “nothing

2 Who is the target group?

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to sell”). But many of their staff members are themselves partly aware of the potential contribution and benefits of design.Recommendation: train and raise awareness of local business advisors to help them convey right messages.

Designers: whether they are independent or within consultancies, designers are the main service suppliers. They have to promote their competences and find clients. To do so they have to make sure that their offer is matching the needs of companies. The main difficulty comes from the diverse orientations of their work.

Enterprises: clients of the designers, companies are the structures that develop products and services for the market. They need to innovate to access new markets and maintain their competitiveness. But there are so many types of companies that programmes have to be adapted to the audiences. When building actions, the following distinctions can be drawn:

Industry / services / retail: although design concerns more industrial firms, “service design” and retail/shop design are developing as well. The needs and readiness to adopt design will vary, as much as the type of design projects. Within the industry, it can also be useful to target specific sectors (packaging, mechanics, IT, consumer goods etc.);

The size of the company: big firms have their own design teams and network of external consultants. SMEs are usually subcontracting the project. But SMEs with less than 20 employees do not have the critical size to have significant projects;

Subcontractors vs. companies with own products: a subcontracting is often constrained by the buyer to produce a good/service in accordance to specific terms of reference, which does not leave much room to “design”;

Entrepreneurs who have taken over a business: they can get positive results if they are willing to use design in order to implement a new strategy;

Entrepreneurs who have already an experience of using design: “motivated” managers could be good promoters towards “new comers”, but on the other hand they are seldom interested in support programmes, and tend to contract directly with agencies. Experience shows that they do not want to take part to collective actions with rather long timetables and often complex operations, although they would benefit from financial incentives, and prefer to go directly to the result they need. The “less motivated” are not so interested, but they should be the priority targets.

Recommendation:-Define a specific target before launching any action;-The term “design” [in French or other languages than English] is misunderstood: use a “trojan horse”, such as “conception” and talk afterwards about design.

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Business support programmes are usually targeting a group, although individual actions are also possible (and more appreciated by entrepreneurs). According to the action’s initial objective (why do we want to address the use of design?), a programme can go from “broad” to “specific”, from

“general presentation” to “specific topics” (IPR, funding etc.), from awareness raising to advising. The actions run by business support organisations are usually mixing some of the following activities:

- Seminars / workshops: most business support organisations organize events on design, rather successfully. But it is difficult to go from that stage to engaging businesses with design activities. An easier route is to address the topic through a focus on a specific sector, with the help and partnerships of federations, clusters organisations etc.;

- Training: training businesses, but also designers on entrepreneurship, SME’s needs and “language” in order to ensure that they understand each other. Designers usually lack marketing expertise: this issue can be also tackled. Training the advisors (chambers of commerce or other business support organisations): to know how to talk about design to entrepreneurs;

- Exhibitions, showrooms: some fairs such as “Maison & Objet” in Paris devote spaces to newly designed products and shops (retail corner). Temporary showrooms can also be a good way of highlighting best practices. But the shortcoming is that this only shows the result instead of the whole process that lead to it;

-Networking: designers are very independent and have to face a strong competition. However it is usually positive to work as a network and share means of communication, develop joint proposals to call for tenders etc. Public bodies can stimulate the networking and help the setting up of formal clusters. Designer networks can meet with other business clubs at a local level. In order to show professionalism, a “code of ethics” can be agreed between members;

3 Which types of actions can be carried out?

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- Directories: designers have a lot to gain when they are referenced in a professional directory (they know each other / they are known from clients). Many regions have edited their guide to local designers. This is also a way of seeing the competences that are lacking in the area. The directory can be completed with a “mapping” of service providers with search tools;

- Trophies: innovation competitions organized by business support organisations at local or national level can sometime propose a special prize or mention for design. There are also specific trophies organized at a regional level, such as the “Trophées du design stratégique” organized by http://www.lecolededesign.com/;

- Partnerships: as design is a transversal field of activity, any regional initiative is usually carried out in close collaboration with various stakeholders (at least: Enterprises / Designers / Schools / Institutions). It is valuable to share experiences and different point of views, in order to not re-invent the wheel when developing an action, as much as to define how each entity can contribute and benefit from the action (“we like each other and we want to work together”). Partnering with regional institutional organisations can also be a good support (i.e. Comité régional du tourisme);

- BtoB meetings: matching the needs and expectations of a company with the offer of a designer is not only linked to the competencies; it is also a question of “feeling” between the persons. The organisation of face to face meetings can be a good solution to avoid poor matching and further misunderstandings;

- Communication (web, catalogues, videos): lots of communication tools are developed in order to promote initiatives; we can notice an increasing use of social web medias such as Facebook when promoting events. Testimonials of success stories are key elements for a good promotion;

- Call for tenders: the question of the motivation of entrepreneurs is at stake; the launch of a call for tender can help in selecting the projects that have to be supported by the programme. On the other hand, it requires the definition of adequate selection criteria and timeframe, which are often too long for an SME;

- Surveys: in order to understand the need of a target, it can be useful to carry out a first survey asking potential beneficiaries to express their expectations.

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If we focus on enterprises as main targets, the different initiatives studied show a fairly standard approach and methodology for individual support:

-Step 1: diagnosis of the needs, in order to define the issues that the design project should address (strategy, offer…)This is the key element of the process: a good design project shall match a clear demand. The link to the strategy of the company (markets, assets, products, competitors, capital etc.) is a phase usually not done by designers who lack marketing and finance competencies.

-Step 2: evaluation committee (if a specific grant is proposed)The assessment of the potential of the project can lead to a specific funding in order to reduce the cost of other phases.

-Step 3: definition of the tendering brief, selection process of a design consultancyMost design advisors usually develop a brief with the company. An additional intervention can be positive (e.g. in Aquitaine: marketing advisors and design managers working in the regional development agency). It also helps the company to manage/pilot the design project internally

-Step 4: development of the project Following the launch of a call for tenders in order to identify the right service provider, the company and the design consultant are in a private contract. Usually, most support actions stop at this stage.

THE MAIN oBSTACLES THAT HAvE BEEN IDENTIFIED ARE:

Time frame: the business should not have too short deadlines (e.g. planning to exhibit on a trade show);

Skipping the initial definition of needs (diagnosis): if the diagnosis is good, the time apparently lost upstream is gained in the end;

Accepting the designer in the company: even if “on paper” the company and designer “match”, the character of both persons is important;

4 how should a programme be organized?

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Analysis of the business model before launching the design project: if a consistent financial analysis is not done the designer may lead the company to a dead end;

other causes of failure:- Lack of connection between the business strategy and the project;- The company is not ready to invest time and money;- Other urgent projects get the priority in the company;- The manager lacks time, motivation and involvement;- The study phase is too long for the manager;- The global cost (typically € 15-20,000) even if it is low compared to an innovation project.

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The time frame of an SME is usually quite different from the one of public business support organisations. Proposing a medium term programme with different phases does not meet most managers’ requirements: they expect fast, efficient initiatives, and that should not be time consuming. But if the programme needs to tackle the different phases of support from raising awareness to individual business support, it entails a minimum of involvement of beneficiaries.

Moreover, the cost is also a constraint. To what extent companies should contribute to a support programme? For business support organisation such programmes require 70% / 100% time of one staff member to follow the action (for an average of 20 projects / year). Businesses have to pay a fee to get involved (€ 300 for a diagnosis / € 600 for support), which is much lower than the value of the service.Recommendation: there is a need for specific funding through a programme in order to develop tools and methodologies, and optimise resources.

5 When should the programme take place and how much shall it cost?

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While regions and nations have an interest in developing innovation and business support activities, design is still seen as a specific field of action.

Most innovation programmes are collective actions, and tend to include design through a set of dedicated activities: information dissemination, sectorial support, pilot projects.

Most programmes supporting design have a limited life, as they are seen as pilots, with some specific funds earmarked for a limited period of time. But we can clearly see that very few —if any— have developed an “exit strategy” that would help some activities to survive once the pilot is over.

The impact that such activities have on innovation actions in general is unclear: we have not found an innovation support programme in which design would be an “ordinary” brick. While pilots demonstrate that businesses that have benefited from support get new products or services on the market, it does not seem enough to motivate other businesses to buy design services, or business advisors to simply include some “know-how” about the use of design in innovation.

Financial reasons could be an issue, but this might not be a sufficient explanation: some design services — e.g. graphic design — are usually affordable and can have a significant impact. The lack of design consultants in regions can be another problematic issue: it is true that many regions do not retain the designers they might be training in schools, due to the small demand. It could also be that the diversity of “touch points” between design and innovation creates a sense of confusion. If design does succesfully help businesses, why is it not more streamlined in the general business support activities? We believe that business advisors have a pivotal role to play, and it is one of the key objectives of Redi to understand their perspective, and provide them with tools that will help them to promote design as one contributing factor to the success of any business strategy, rather than an exotic component.

Conclusion

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Many people claim that we need a definition of design as a starting point. Yet, everyone experiences the effect of design when shopping and using objects, websites or any sign system, and feels the difference between something that has been designed and something that has not. Is there a need to define what is obvious?

All professionals will admit that the key issue is neither design in itself, nor the reluctance of businesses to use it. Ultimately, success by design mixes as much formal processes as human relationships, and an attitude towards change and transformation: it is, by no means, any different from the attitude required to reach new markets through innovation.

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In the last decade, Europe has developed a significant number of actions in order to get design closer to businesses, and if we look at the results of the few programmes that were evaluated thorougly, public support has proved effective. Moreover, in that period, the contribution of design to innovation has got a clearer recognition at the level of the European Commission.

Yet, the differences between countries and regions are enormous. There are still nations in Europe in which the word «design» does not appear on any innovation policy document, be it at the national, regional or even local level.If we looked at a map of industrial clusters, and map it against the design consultancies available, we would immediately notice that actions need to be taken to tackle the supply and demand side simultaneously: many industrial regions in Europe have no access to design services in the vicinity. The nature of these actions resorts to policy making: the need to provide attractive projects for graduates so that they do not migrate to the main capitals of design, the need to have businesses served by professionals that are able to adapt to what starts sometime by an unclear demand, the need to mitigate the challenges of innovation by trusting the advisors, and being confident about the recommendation they deliver.

Although grants and funding are often seen as a way of enticing businesses to transform, we have observed that most of the actions we studied vanished once the programme was over: this suggests that, in terms of sustainability, the mindset of all stakeholders has to change. It seems ridiculous to let go the experience, tools and networks that have patiently been built because no exit strategy has been developed.Secured funding over longer period of time does not mean that programmes would run without changes. Both the “Design Leadership Programme for Business” (UK), the “Design-driven Innovation Programme” (NO) and the “Design Integration Programme” (NZ) have upgraded their objectives, scope of activity, modes of delivery in order to match policy making with the transformation of businesses.

Through the Redi project, we aim at shifting perspectives. We see that programmes need to be designed from the “business perspective”, rather than from a “policy maker” perspective. We see that the role of the business advisors — whoever they are — is evolving, specifically when they work with SMEs: they do not stop at interfacing businesses with policy initiatives and their administrative requirements, they develop actions and initiatives, and use their networks to bridge managers and CEOs with resources. We will investigate how design can be looked at one of the ordinary tools that can contribute to successful business.

final word

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annexes

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Case studies Task 1.1 — Survey and evaluation of design support programmes (APCI)

The case studies have been developed by compiling and cross-checking as much publicly available documents as we could find.The synthesis has been sent to all the programme managers that we could reach, in order to have the information checked and updated (April 2013). Some programmes are still transforming, and allthough we have done our best to have accurate information, any mistake or innacuracy would be our responsibility. Please contact the programme managers for up to date data.

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design leadership programme for business (unitEd Kingdom)

thE arChitECturE of thE modEl (Why, artiCulation, staKEholdErs, finanCing…)

Historical, political and strategic context (regarding design & innovation)

The Design Leadership Programme for Business follows on the achievements of the programme known as “Designing Demand”. The Cox Review, published in 2005, identified the need for urgent action if UK businesses are to compete with rivals in fast-emerging global economies. The review, endorsed by the Chancellor, recommended support for the Design Council’s programme and called for it to be made available across the UK to help SMEs use design as a business tool: this programme was known under the name “Designing Demand”.“Designing Demand” itself built partly on the results of the “Leading by design” pilot programme (2003-2005), run in South-West England with the support of the Design Council.

Programme objectives The overarching objective of the programme is to embed design thinking and design processes for the management of innovation in SMEs, techno-logy start-ups and public services. It is a national coaching programme that promotes the value of strategic design to businesses to help boost their commercial performance. It aims to foster a greater understanding of the strategic role design can play.

Alignment of the project with other support programmes (innovation, business…)? Connections to the framework of resources available to support innovation in businesses (grants, vouchers, loans, etc.)

The Design Leadership Programme for Business is rebuilding links with other business support organisations, following the closing down of the Regional Development Agencies (RDA) in 2010. A significant number or applicants are refered to the programme by business advisors. Until 2010, the programme was delivered through the RDAs, and “Business link” played a key role in getting businesses embarked in the “Designing Demand” programme.

organisational structure and governance: lead partner & stake- holders/partners (roles in the project)

The Design Leadership Programme for Business has been created and is managed by the Design Council. It is endorsed by the Government as part of its business support portfolio, Solutions for Business. It was previously delivered on a regional basis in partnership with the English Regional Development Agencies. From 2012 the programme has been delivered

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design leadership programme for business(unitEd Kingdom)

directly by the Design Council through its roster of advisors.The activities are delivered by 50 Design Associates, trained with the tools developed by the Design Council.

Funding (budget and resources)

The programme is part funded by Government through a grant from the Department of Business Innovation and Skills (BIS) of £1.3m per annum. Some activities have been supported through the ERDF. The programme also now depends on match-funding from participant, who each contribute 50% of the cost (the cost of the mentoring ranges between £1,000 and £5,000). There is a limited number of seats: 150 SMEs, 60 technology start-ups and 20 public services should subsidised support in 2012.

Region (geographical coverage)

UK

thE BEnEfiCiariEs (modalitiEs, rEquisitEs, sElECtion of providErs…)

Targets (intermediaries, SMEs, designers…)

The service is designed for SMEs that want to grow. The programme has been developed specifically to help businesses, whether they are high growth start-ups, established businesses or enterprises focused on commercialising new technologies. It is aimed at businesses with between 10 and 250 employees and turnover of £500k to £50m. The service is particularly, but not exclusively, aimed at manufacturing businesses and those with some advanced manufacturing capability. Other parts of the programme are devoted to helping designers understand businesses’ needs and issues, and to helping business advisors spot design opportunities.

Client selection criteria/process

Eligible SMEs (manufacturing; services) are selected through review of applications:

– Financially stable with resources to invest– UK ownership (less than 25% foreign owned to gain subsidy)– Evidence of vision– Ambition for growth (burning platform or business challenge)– Open minds and forward thinking attitude– Export potential

Client selection is determined through the IDB process — Information, Diagnostic, Brokerage (Source: 2008 Review)

General considerationsFinancial status Profitability

Senior level commitmentExport potentialOpen to adviceOpen to information sharing

CriteriaStable financial future and a financial strategy in placeCompany in profit, but if losses are being generated the decline is not terminalManaging Director/board is in support of the applicationThe company is currently exporting or looking to exportThe company is open to receiving external adviceOpenness in respect of potential outcomes from whichothers may benefit

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General considerationsOpen to new ideas and conceptsPotential to transfert learning

Design specific considerationsExperience of design Potential design impactProject opportunity

Ambition

Capacity to change behaviour

SME client criteriaTurnoverEmployeesProject commitmentOutcome probability

Technology venture clientInvestmentEmployeesNature of businessIntellectual Property

Criteria A commitment to business improvementThe company has a peer group to which learning and experience could be passed

CriteriaLaw to moderate use of designDesign impact can be readily identifiedCompany has indicated more than one area where a project could be initiatedAmbition within the company for growth in sales, profit,market share, employment and valueOpen to a change in behaviour through engagementwith a design project

CriteriaIn excess of 250k10 – 250 employeesMinimum £5k available (Exception granted for start-ups)Probable realisation of outcomes in a 1 – 3 year timeframe

CriteriaMinimum 3k available1 – 15 employeesStart-up or early stage (< 3 years)IP likely present as a basis for commercialisation

Marketing: ways of recruiting (call for proposals, promotional tools, conferences, exhibitions…)

The Design Council brand is strong, denotes high quality and engenders SME client confidence in Designing Demand. The Design Council is responsible for delivering a national marketing and awareness campaign.

The main channel to SME participation in the programme is through events, trade associations and face to face meetings. The Design Council has formed new links with regional partners. The programme is always open for applications from SMEs.

Cost and commitment for the participant

The programme being part funded by Government, companies applying for the programme may be able to benefit from a 50% subsidy available for the cost of the mentoring service; participating businesses must fund the remaining half. Depending on the length of the time, the cost of the mentoring to the business will range from £1,000 to £5,000.

In addition, businesses will need to pay the cost of the design project that emerges from the service. Each design project is different but typical costs range from £5k to £15k, but the role of th ementor is to shape a project that is affordable for the company.

Moreover, the Managing Director, or equivalent, will need to spend at least five days on the project, and the senior management team will need to commit up to 10 days.

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design leadership programme for business(unitEd Kingdom)

thE mEthodology and sErviCE ovErviEW (CollECtivE, sECtorial, individual; tools, proCEssEs, diagnostiC, matChmaKing, WorKshops, mEntoring, trainings…; lEvEls, stEps): oBjECtivE, ContEnt, targEt group, numBEr of partiCipants, timE framE, Cost, EtC.

Presentation The Design Leadership Programme is a mentoring and support services for SMEs in the UK. It helps SMEs to understand how they can use design strategically and effectively within their business. It takes a ‘learning by doing’ approach whereby coaching enables the business to identify where design can best meet their goals and then supports them in implementing tangible projects that meet these goals.

Programme team The Design Leadership Programme central team has ten staff. It is cur-rently responsible for:1. New product development2. The provision of service content3. Knowledge management, including the effective sharing of programme learning among client SMEs4. National marketing, event management and communications5. Relationship and contract management with the regions6. The recruitment, training, management and continuing professional development of Design Associates7. Quality assurance of Design Associates and service tools8. The development of programme effectiveness evaluation tools (regional implementation)

External competencies taking part to the project development

The programme is delivered through Design Council’s national team of “Design Associates”. They are currently more than 50 and are recruited to a

roster to meet demand in individual regions. They are design professionals with expertise across all design disciplines and offer independent advice while adhering to a strict code of practice. Their experience is broad having worked across a range of sectors and with organisations of all sizes and stages of growth. They’re top in their field and work with the likes of Virgin, Orange, Philips Design, Tesco, the NHS, Dyson and Black & Decker.The Design Council recruited them not only because of their design expertise but because they have business acumen, practical know-how and a genuine passion to support growth through innovation and design. The Design Council regularly reviews the make-up of this team, re-trains them annually and is confident that the best people are made available.

Process The Design Associates provide the support and coaching to businesses, taking them through a programme that includes workshops, coaching and peer-to-peer support. A Design Associate leads the business’s senior team through an intensive workshop to identify their biggest challenges and explores how the strategic use of design can help overcome them.The Design Associates do not undertake one-off design projects. Their role is to mentor the business through the key stages: they provide guidance and direction to develop a robust brief, procure the right design agency and ensure that the most strategically relevant projects get delivered.

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The Design Leadership Programme used to offer a three-level business support service which was divided into seven component parts. Following the recommendantions of the Review 2008, the programme now focuses on achieving a higher proportion of high-level interventions that optimise the return on investment for both the Design Council and SMEs.

– the SME programme gets a design project going for small and medium-sized businesses with growth potential, and focuses on a specific design project over a six to 12 month period

– the «technology start up» programme cuts time to market for new techno-logy. It supports early stage technology ventures with the potential for rapid growth, helping them use design to strengthen their business proposition, attract funding, reduce risk and get to market faster.

– a coaching programme helps companies to build bigger profits through design-led strategies. This service is aimed at mature businesses who are willing to invest in realising ideas with the support of a Design Associate.

Duration of the programme

The mentoring usually takes a period of six to ten months, but this is depen-dent on the nature of the project.

After the programme… When a business completes the coaching programme, it becomes part of the Design Council’s wider community, joining a growing network of innovators in business, science, the public sector and design. This provides opportunities to continue building on their learning and to build new business relationships.

other tools Online support services: the Design Leadership programme for Business website contains managed content. Administration of the site is undertaken by the Design Council’s marketing group with information feeds sourced from the central team, from the Design Associates and from SME clients. Many tools have been developed by the Design Council and are used by the design advisors. A digital strategy to promote the programme and its tools is seen as something important to develop in a near future.

thE implEmEntation and thE dEploymEnt of thE programmE

Duration of the project From 2007. No end date planned

Phases of the programme

The Design Leadership programme for Business is a national programme with three phases of development:

– The first phase (Phase 1) was originally a pilot called Design Works. From 2006 to 2007 the pilot programme was delivered in Yorkshire, the South West and the West Midlands funded by the respective Regional Development Agencies (RDAs), and managed centrally by the Design Council.

– Designing Demand was launched by the Design Council in 2006 (Phase 2) and gradually rolled out between 2007 and 2010 in seven of the nine English regions. The RDAs funded the programme delivery through contracted

‘Delivery Partners’. The programme cost, on average, was £2.5m per annum.

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– The RDAs were abolished in 2010 by the Coalition Government and the funding for the Designing Demand programme was subsequently reduced. The Designing Demand programme has since been restructured and renamed (Phase 3) and is now delivered directly by the Design Council with a grant from the Department of Business Innovation and Skills (BIS) of £1.3m per annum.

Sustainability of the project (next steps)

The programme depends also on match-funding from participant, who each contribute 50% of the cost. Larger businesses pay the full cost of the service.

Transferability of the programme (regional, national, European)

Some of the tools and approaches could be transferred in other regions —and some programmes have taken inspiration from the architecture of ‘Designing Demand’.

Intellectual property issues (open source /tools, processes, methods)

The intellectual property created to date for the programme is intended to be ‘open source’, to be freely available to all SMEs that wish to learn from the programme and to capture improvements to the programme offerings whenever and wherever they are suggested. The intellectual property of the programme specifically includes the tools, processes and web content relating to the programme.

Conception of closer collaborations with other business/innovation support programmes?

Following the end of the RDAs and Business links, the Design Council is developing cooperation with other business support agencies or networks in the UK.

thE Evaluation of thE programmE (aChiEvEmEnts and EffECtivEnEss)

Results The programme has supported over 2,000 SMEs and coached over 700 businesses (medical equipment, manufacturing, foreign exchange, re-cruitment, confectionery, engineering, waste management, luxury yacht building, clothing, translation services and IT) to use design as a business development tool since 2007.

Evaluation of the Designing Demand programme 2007-2012, Eden Partners (2012)This evaluation shows high gross and net commercial impacts as a result of the programme. The estimated national gross impacts are combined actual/anticipated additional revenue of £140m, an overall increase in operating income of just under £28m.

Benefits for business:– Increased market share– Better communication– Targeted product development– New customers / markets– Reduced wastage– Cultural change– Innovation pipeline– Complete business transformation

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Impact on business: for every £1 invested in design,– £20+ ROI– £4+ increase in net operating profit– £5+ in increased exports

Business capabilities:– Before the Design Leadership programme 55% of businesses surveyed

viewed design as integral to business, compared with 98% after– 96% stated that the Programme was strategically important in tackling

issues not previously dealt with– 72% felt the programme has changed the culture of their organisation into

one that was more design-focused– 63% were not confident about working with design before participating

in Designing Demand. This increased to 100% after participating in the programme.

– 48% have invested in further design projects since completing the programme

Returns to the public sector:– £5.67 gross value added (GVA) and £3.75 net value added (NVA) for evey

£1 of public investment (e.g. £66.5m GVA and £43.9m NVA)– 918 full time equivalent (FTE) jobs were created and 1,543 FTE jobs

were safeguarded as a direct result of the programme (e.g. 6 FTE jobs per intervention)

Businesses feedbacks Design boosts the economy… despite the recessionMany companies said the programme helped them to grow and a few even stated that the programme has helped them to survive and grow in the current economic climate.

In addition to safeguarding jobs, the Designing Demand programme helped to develop companies in niche areas. These areas have the potential to grow and expand the economy in new directions in the future.

The investments that were made as a result of the Designing Demand programme would not have occurred otherwise - indicating real growth instead of just displacement. The evaluation deliberately included a survey of businesses that have completed the programme in the last two years. This showed that businesses that took part in the programme are growing despite difficult times.

Design boosts international competitivenessUsing design enables UK businesses to compete on an international level. Many participants in the Designing Demand programme expanded the markets in which they operate. A direct result of the programme is the increase in exports.

Part of the market expansion process consisted of improving branding and promotions so the company could reach more customers. Better branding not only expands the user base, it develops a clear and sophisticated picture of what British companies have to offer.

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Design helps companies to create new valueHigher value added activities help companies transition up the value chain. Designing Demand has assisted companies in diversifying their production from simply producing products to offering a broader range of goods such as services. Design helps companies to make the leap to such higher value added activities that will shape the knowledge economy of the future. As a result, companies are more versatile and sustainable. Additionally, companies that increase the scale and scope of their outputs also help to revitalise underperforming areas.

Current evidence suggests that return on investment outcomes may not be manifest until up to 12 to 18 months after an SME has completed the programme.

A number of clients of the programme have achieved design and/ or indus-try recognition through a number of national award schemes.

SMEs which experienced significant returns on their design investments have increased and maintained their engagement with external design consultancies.

Designers’ point of view Many designers stated that they gained access to new clients and markets that they would otherwise not be exposed to. Many of these connections continue to be profitable after the projects have been completed. This creates new opportunities for designers.

– Over 72% of the designers working in the programme stated that the client they worked for had either limited or no experience working with design agencies

– 68% of the designer stated they would not have worked with the client had it not been for the programme

– 70% of designers stated that the design brief they received as a result of the Designing Demand programme was better than they would have otherwise expected

– 62% of agencies indicated that they had undertaken additional design commissions with the clients they gained through the programme

The businesses and designers that participate in the programme have an opportunity to learn from one another and streamline their respective endeavours. The designer gains a better idea of the services they can optimise for businesses. They can apply their skills to challenges they wouldn’t have previously sought and seek new opportunities. Businesses also learn from the designers and in turn, receive better quality work. In most cases this is due to the programme supporting businesses to reframe their challenges and to construct more effective project briefs. The clearer directives lend themselves to project outcomes that more precisely meet the goals of the business.

Key programme assets (positive aspects, good practices…)

Designing Demand Programme Review 2008The quality of the Design Associates is a critical factor in determining the impact of the programme. Design Associates have been universally prai-sed. This is attributed to their individual capabilities, and to the processes employed in their recruitment, management and continuing professional development.

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In common with the outcomes of other government-funded business support programmes, indications from Designing Demand are that the deeper the intervention (and the investment), the greater the eventual returns on that investment.

The Eden Evaluation 2012The programme experience is high quality and pragmatic, often involving a number of important stakeholders of the business, both internal and external. To this end, it is essential that the Design Associates are recruited carefully and have the capability to engage with and lead senior teams. It is equally important to ensure that the right clients are recruited into the programme, as it works best with businesses demonstrating high growth potential, and a real willingness to be helped.

Lessons learnt (improvement axes, areas of change…)

The programme has been extensively reviewed in 2008 and 2012. Both reviews have suggested recommandations that have been taken into account in the deployment of the programme.

CasE studiEs

world First www.worldfirst.com, (Jonathan Quin)Brand definition: results

– Better reflected the company’s approach, vision and ambitions– Very well-received by staff and customers– Web visitors and average dwell time rose by 70%– Press coverage increased– Helped when hiring to attract and retain the best people– …Many rivals have since re-branded– Turnover: + 31% the year following the re-brand (2010)– 2011 Hit £3billion in transactions, right around our seventh birthday

and Sir David Clementi becomes our Chairman– Corporate client survey: 100% of our clients said they would use us again

and recommend us to friends!– Ended our eighth financial year with revenues of just under £15million

FormFormForm www.sugru.com, (Ani Dhulchaointigh, founder of FormFormForm)FormFormForm launched its innovative new DIY repair product in 2009, Sugru, and the company attributes it’s initial success to the work done with a Design Associate via Designing Demand

For other case studies www.designcouncil.org.uk/designingdemand/casestudieshttp://vimeo.com/channels/292138/videos

ContaCt, informations

website www.designingdemand.org.uk

Contacts Ellie Runcie, director of Leadership Programmes, [email protected]

Application form & case studies:

www.designcouncil.org.uk/leadership

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sourCEs

http://britishlibrary.typepad.co.uk/files/designing-demand-presentation-at-the-british-library.pdf

Evaluation of the Designing Demand programme 2007-2012, EDEN Partners (2012)www.designcouncil.org.uk/Documents/Documents/OurWork/Designing %20Demand/Designing%20Demand_Executive_Sumary_Final.pdf

The Designing Demand Review 2008http://www.designcouncil.org.uk/Documents/Documents/Publications/Designing_Demand_Review_Design_Council.pdf

http://erawatch.jrc.ec.europa.eu/erawatch/opencms/information/country_pages/gb/supportmeasure/support_0050?tab=template&avan_type=support&country=gb

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thE arChitECturE of thE modEl (Why, artiCulation, staKEholdErs, finanCing…)

Historical, political and strategic context (regarding design & innovation)

In 2003, a Design Taskforce consisting of designers, academics and business leaders developed a strategy that would boost New Zealand’s economic growth through the better use of design.The Design Taskforce’s report, ‘Success by Design’, recommended ways New Zealand businesses could become more design-capable. In 2004, a Better by Design team was established to deliver the recommended programme to export-focused businesses and the design community.Since then, they have evolved their programme over time with input from their customers, and business and design leaders from around the globe. With the confidence of this learning, they have progressed their offering from a ‘telling how’ advisory model, to a collaborative ‘learning by doing’ approach.

Programme objectives Better by Design recognises that management teams don’t just need to understand design better, they need to think and act like designers. The Design Integration Programme helps companies use design to become more innovative, efficient and internationally competitive.

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2001

2020200820042002

200920052003

2006

2007

2010

2011

NZ govt commits to an

innovation framework for

growth

Taskforce report and

strategy Success by

Design

2nd Better by Design

conference:evolving the

message

Purpose is re-framed from

building exemplars to inspiring best

companiesBroadening

our scope, re-framing our

Purpose

Design Taskforce

formed

Better by Design is

launched and Design Audit

piloted

Evolving the offering: Design

Integration Programme

launched

100th company joins

programme

Government renews and strengthens its support

Study Tour to Silicon Valley, CEO Summit,

from customers to community

Design is the operating

culture of the nation

Better by Design

conference –putting design

on the business

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Alignment of the project with other support programmes (innovation, business…)? Connections to the framework of resources available to support innovation in businesses (grants, loans, vouchers, etc.)

N/A

organisational structure and governance: lead partner & stake- holders/partners (roles in the project)

Better by Design’s Advisory Board is made up of five of New Zealand’s foremost design practitioners and business leaders. The Board provides counsel and direction.

Funding (budget and resources)

The funding is managed by New Zealand Trade and Enterprise (National government)

Region (geographical coverage)

New Zealand

thE BEnEfiCiariEs (modalitiEs, rEquisitEs, sElECtion of providErs…)

Targets (intermediaries, SMEs, designers…)

This programme is for New Zealand export businesses who wish to expand and improve their performance by using design.

Where Better by Design focus their effort:– 80 companies in the programme– Average revenues of 20 millions, of which 60% come from exports– From all sectors of the economy– Focus on the top 35

Client selection criteria/process

Entry into the programme is a two-step process. First, interested CEOs and management teams are invited to participate in a «Design Thinking Experience» to learn more and decide if they want to join the programme. If they see value in the design integration process following the workshop, they will be considered for entry into the programme.

The programme is intensive and may last for up to two years. To gain maxi-mum value, companies must be able to commit the necessary time and resources to the programme.

Marketing: ways of recruiting (call for proposals, promotional tools, conferences, exhibitions…)

Direct identification. Better by Design carries out a collaborative evaluation of the company’s challenges through a design lens and then provide coaching services.

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Cost and commitment for the participant

Coaching services are funded 50/50 with customers.

thE mEthodology and sErviCE ovErviEW (CollECtivE, sECtorial, individual; tools, proCEssEs, diagnostiC, matChmaKing, WorKshops, mEntoring, trainings…; lEvEls, stEps): oBjECtivE, ContEnt, targEt group, numBEr of partiCipants, timE framE, Cost, EtC.

Presentation Design integration is a journey and Better by design support each company as it progresses through the five stages of the programme.The programme is delivered inside each company and works on the problems and the opportunities the business faces. The hands-on learning approach is a co-creative process of looking specifically at a company’s challenges. Businesses can learn to use the disciplines of design to successfully solve problems and make innovative decisions.Better by Design helps build design capability by partnering companies with design integration coaches. Their role is to mentor cross-functional teams working on real business issues. In this way, design becomes a company-wide way of working.

Programme team Better by Design is a specialist group within New Zealand Trade and Enterprise, New Zealand’s national economic development agency, based in Auckland.

External competencies taking part to the project development

The coaches are private sector practitioners with expertise in different aspects of design and business. Their role is to support the CEO and their team, transferring knowledge and skills, breaking down traditional silos that block innovation, and encouraging the company to take on more complex challenges as their design confidence grows.

Design Integration Coaches are appointed by an open tender process operated through GETS in line with New Zealand Trade and Enterprises procurement policy. This tender process occurs every 12-24 months depending on the programme need.

Process The design integration journey

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GETTING TO KNOWONE ANOTHER

DESIGNTHINKING

EXPERIENCE

DISCOVER, DEFINEAND DESIGN

DESIGNACTIVITIES

ENROLMENT

GETTING DESIGN READY

100% FUNDED BY NZTE1–3 MONTHS

50% FUNDED BY NZTEMAX 15 DAYS PER QUARTER

TO END YEAR 1

50% FUNDED BY NZTEMAX 5 DAYS PER QUARTER

TO END YEAR 2

50% FUNDED BY NZTEMAX 1 DAYS PER QUARTER

ONBOING

BUILDING CAPABILITY LEARNING BY DOING

GETTING INTEGRATED CONTINUOUS INTEGRATION

REVIEWS

REVIEWS REVIEWSDESIGN

ACTIVITIES

DESIGNACTIVITIES

DESIGNACTIVITIES

DESIGNACTIVITIES

G1 G2 G3

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EnrolmentBetter by Design are looking for CEOs who see value in design and want to understand more about what design integration could mean for their business. Interested CEOs and management teams are invited to participate in a one-day Design Thinking Experience to learn more and decide if they want to join the programme.

1. Design Thinking ExperienceThe day-long Design Thinking Experience workshop provides an intensive experience of the design process customised to each company. It can be almost any duration and size, from two hours to a full day. The workshop is designed to activate participants to think differently about their business and how they work with each other.Following the Design Thinking Experience, if the CEO sees value and decides to commit to the process they can be accepted into the Design Integration Programme.

2. Discover, Define, DesignThe Discover, Define & Design phase is a co-discovery process that takes place over one to three months. This phase features two action orientated workshops, and a series of practical activities to help customers look at their business through a design lens.The outcome of this phase is a shared understanding between the custo-mer and the coach of the companies commercial objectives. A design plan will be developed for implementing Design Activities should the customer chose to enter the programme.

3. Design activitiesDesign-based activity, or sequence of activities, that help cross-functional teams within the company learn by applying design to specific challenges. Proven techniques are used to tease out and resolve issues that face the company. These highly participative plays create a shared understanding of what design is and what the company’s design challenges are. The acti- vities build capability by addressing real problems and market opportunities.

4. EvaluationsWaypoint meetings or workshops are a chance to pause, reflect and direct activity. The purpose of a waypoint is to share learning and assess progress. Coaching of the Design activities and Evaluations forms the bulk of the programme. As teams within the company work together, new forms of collaboration are modelled and design behaviours become embedded at every level of the organisation.

5. CompletionCompanies may spend up to two years being coached and building design skill before they graduate from the programme. At this point they will feel competent to move forward as an effective, design-led organisation. Because design integration is an ongoing journey, the relationship with Better by Design does not stop. Grad companies become part of Better by Design’s learning community and gain access to events and resources that provide continued inspiration and development.

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Duration of the programme

The programme is intensive and may last for up to two years.

After the programme… Cf. Completion

thE implEmEntation and thE dEploymEnt of thE programmE

Duration of the project The Design Integration Programme was launched in 2006. The current format has started in 2012 and has been adjusted in 2013 moving from a consultant to a coaching based programme; Better by Design is looking to build capability within customer companies to apply design thinking for themselves.

Phases of the programme The original taskforce took heed from the UK Design Council, particularly its Designing Demand programme, a mentoring service for SMEs. The New Zealand’s model is strongly focused on creating a point of uniqueness in the international market.The Design Integration programme is very much focused on doing what is called a design capability audit, looking at what sort of capability companies had to use design strategically, particularly around innovative products and services and the ability to build a brand around those. Better by Design brought in design consultancy IDEO to help shape the new programme. IDEO is synonymous with the concept of design thinking — where design emphasises output, design thinking is also focused on the process of design. It seems that no other schemes globally are quite like it. Business people who have been exposed to the Stanford d.school approach to design thinking (Better by Design took a group of leaders on a tour of Silicon Valley in 2011) are enthusiastic, and see it as an enabler of innovation.

The other fundamental shift is in moving from the consultancy model to a more collaborative one that more closely involves the client company all along, where experts will help executives perform their own analysis and assess their own capability.The unique thing Better by Design does, that programmes elsewhere in the world don’t do, is their focus is absolutely on integration – how you get people from different parts of the company, from product development to finance to marketing to sales, to actually work together in an integrated fashion to focus on customer needs. Their objective is to favour design-led companies which integrate design across all departments of their company.

Sustainability of the project (next steps)

N/A

Transferability of the programme (regional, national, European)

The specific point of focus of the programme (transforming business management), targets (high profile export companies) and financial commit-ment and support make it difficult to transfer in another context.The programme has not been “scaled down” by regional or local authorities, in order to support companies operating on national or regional markets.

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Intellectual property is-sues (open source /tools, processes, methods)

N/A

Conception of closer collaborations with other business/innovation support programmes?

No explicit collaboration, but the programme provides a comprehensive support throughout (financial support for the coaching services).

thE Evaluation of thE programmE (aChiEvEmEnts and EffECtivEnEss)

Results Around 150 businesses have been through Better By Design since its inception and around 80 are currently engaged with the programme.

– Annualised average revenue growth is 15%– Annualised average export growth is 24%– 50% of growth comes from top 10 clients– Based on additional exports, investment in Better by Design over

5 years has produced an ROI of 40:1

Better by Design sets an ambitious target of 50 companies generating an additional $500 million in export revenue within five years, growing at five times the annual GDP. 2010 figures showed its top 50 saw a combined increase in export revenue of about $722 million (at which stage the programme had been going five years but the majority of those companies had been involved for only three).

Partnerships issues N/A

Businesses feedbacks Targeting senior management appears as a key success factor for embeding design in the innovation and the general operations of the companies.

Designers’ point of view N/A

Key programme assets (positive aspects, good practices…)

What Better by Design have got right:– Cause driven not policy driven– People focused– Depth over breadth– Evolving our methodology– Providing a journey not an intervention

The design approach is human-centred and collaborative. While the UK Design Council design process is laid out in four steps – discover, define, develop and deliver – Better by Design’s has six stages: select, assess, plan, resource, execute, extend.

In addition to the mentoring programme itself, Better by Design has de-veloped a regular CEO summit, and since 2011, a study tour to the Silicon Valley. Both events are targeting top managers of businesses.

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Lessons learnt (improvement axes, areas of change…)

Learning #1: It’s a journey not an intervention

Learning #2: It’s all about the CEoFour key factors to identify companies with a propensity for transformation:1. Scale2. Scalability3. Ability to integrate design4. CEO is open to learning

At the beginning of the programme small companies were coming in and never leaving. Better by Design sought to regulate the intake by making it harder and harder to get in. The programme used to accept companies up to $5 million in scale but it grew to be $20 million. Better by Design are much more interested in the potential for growth, for businesses to add value to the New Zealand economy — “how fast can we do that and how effective will design be if we are to apply it to that business?”.

What Better by Design have not got right:– Taking the design sector with them– Innovating through end user focus– Creating IP for all parts of the journey– An internal culture of continuous innovation

What’s next?Innovating Better by Design offering and their delivery model through human centered design processes, making them more like their customers and less like a government agency.

CasE studiEs

Case study 1 Methven Ltd www.betterbydesign.org.nz/resources/case-studies/methven-ltd.aspx

Case study 2 Pacific Aerospace www.betterbydesign.org.nz/resources/case-studies/pacific-aerospace.aspx

Case study 3 Howard Wright Ltd www.betterbydesign.org.nz/resources/case-studies/howard-wright-ltd.aspx

For other case studies www.betterbydesign.org.nz/resources/case-studies.aspx

ContaCt, informations

website www.betterbydesign.org.nz/design-integration-programme.aspx

Contacts Zareena McHarg, Programme ManagerTel: +64 (0)9 354 [email protected]

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sourCEs

“Success by Design”, May 2003

“Better by Design”, Judith Thompson, December 2010

“Innovate and integrate: Design support for companies In New Zealand”, Judith Thompson, March 2011

“Design: more than just lipstick on a pig” by Esther Goh - Idealog #41, September-October 2012, page 56: www.idealog.co.nz/magazine/41/design-more-just-lipstick-pig

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innovation by design (irEland)

thE arChitECturE of thE modEl (Why, artiCulation, staKEholdErs, finanCing…)

Historical, political and strategic context (regarding design & innovation)

N/A

Programme objectives “Innovation by Design”, is an 18-month pilot programme run with six diverse companies across a range of sectors in the Northwest of Ireland.

Alignment of the project with other support programmes (innovation, business…)? Connections to the framework of resources available to support innovation in businesses (grants, vouchers, loans, etc.)

N/A

organisational structure and governance: lead partner & stake- holders/partners (roles in the project)

N/A

Funding (budget and resources)

€100,000 (pilot programme)

Region (geographical coverage)

Northwest of Ireland

thE BEnEfiCiariEs (modalitiEs, rEquisitEs, sElECtion of providErs…)

Targets (intermediaries, SMEs, designers…)

Six companies across a range of sectors (pilot programme). The aim was to show that a user-centred programme can be effective within organisations big and small; public and private; and as diverse as a crane manufacturer,

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software developer, airport, dairy cooperative, third-level college and precision toolmaker.

Client selection criteria/process

The company selection process encompassed the first three months of the programme and eligible participants were chosen from an initial pool of 200 companies.

Marketing: ways of recruiting (call for proposals, promotional tools, conferences, exhibitions…)

N/A

Cost and commitment for the participant

N/A

thE mEthodology and sErviCE ovErviEW (CollECtivE, sECtorial, individual; tools, proCEssEs, diagnostiC, matChmaKing, WorKshops, mEntoring, trainings…; lEvEls, stEps): oBjECtivE, ContEnt, targEt group, numBEr of partiCipants, timE framE, Cost, EtC.

Presentation Jonathan Ball (Programme Strategist for the Design Council’s Designing Demand programme) and Justin Knecht (Programme Manager at the Centre for Design Innovation) collaborated on the ‘Innovation by Design’ programme run in Ireland.

Innovation by Design is taking a user-led approach to innovation (ie. user-centred design). Unlike other programmes, companies learn by doing it themselves. The Innovation by Design programme transfers design thinking skills into the participating companies through highly interactive workshops, practical application and individualised support, as opposed to just partnering up a company and a designer.

Programme team Centre for Design Innovation

External competencies taking part to the project development

Design Associates (Cf. British Design Council’s programme)Justin Knecht was selected to join the exclusive roster of Design Associates at the British Design Council, which delivers design support programs to businesses in the UK. In this capacity Justin delivered the Innovate program for early-stage technology start-ups looking at adaptive business models.

Process

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Process

Participants attend three workshops in total.

The first on user-centred design is the cornerstone of the programme, dispelling myths about ‘design’ and providing easy to use tools to identify the right users; observe what clients actually do; involve the company’s user experts; and prototype potential ideas.

The second workshop is about understanding and developing the company’s brand. It introduces the concept of brand touch points and the building blocks of brand development. A brand is not just a logo.

The third workshop looks at service design and customer experience, providing a simple blueprint for how to design and evaluate service. Organisations learn to go from a first impression to a lasting impression. This is good business as customers pay more for branded services and experiences, than commodities or products.

Decks of cards highlighting key techniques and concepts from the workshops are retained by each company for future reference and use. Following each workshop, the organisations apply the new skills to their own organisations with the help of a Design Associate. Design Associates have cross-disciplinary experience within multiple business sectors and design disciplines. This facilitation and mentoring is key to integrating new skills and participants can request strategic expertise when needed. Companies receive five days of face-to-face time over the course of the programme and the continuous support of the Centre.

On two separate occasions, all companies are asked to present a plan of action and progress to their peers. Participating companies provide support or just enough peer pressure when its time for a presentation.

Companies may approach the programme with a certain project in mind, though new opportunities are often uncovered. Implementation often requires professional assistance and companies are helped with briefing and selecting design consultants to see the projects through to commercialisation. In the end, every organisation is equipped to use design as another tool for competitive advantage.

Duration of the programme

N/A

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After the programme… N/A

thE implEmEntation and thE dEploymEnt of thE programmE

Duration of the project 18 months (pilot programme)

Phases of the programme N/A

Sustainability of the project (next steps)

N/A

Transferability of the programme (regional, national, European)

Along with Jonathan Ball (Program Strategist, UK Design Council), Justin Knecht created the Business Support Canvas, a framework for the development, planning, and assessment of business innovation support programs. This framework has been applied in Estonia and Denmark.

Intellectual property issues (open source /tools, processes, methods)

N/A

Conception of closer collaborations with other business/innovation support programmes?

N/A

thE Evaluation of thE programmE (aChiEvEmEnts and EffECtivEnEss)

Results N/A

Businesses feedbacks Over the 15 months, different participants have launched new brands; generated hundreds of ideas; explored new markets; created prototypes for new products; redesigned their product development processes; delivered new and enhanced services to their customers; briefed and contracted design agencies; and one even renamed their company.

Key programme assets (positive aspects, good practices…)

10 commandments– Invest time in the selection process– Speak their language– Don’t scare them with too many details– Be explicit about rewards– Establish a diary at the outset– Understand the psychology of a diverse team– “Who are your users? What do you know about them?”– Pick good stories– Have a contingency– Learn from others that have done similar programmes

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Lessons learnt (improvement axes, areas of change…)

The dirty dozens– Telling the story to the companies– Still don’t have the language correct– You do yourself no favours by selecting (or keeping) the wrong company– Knowledge transfer– Order of the programme– Built-in legacy beyond end of programme– We ended up with great case stories, but needed more quantitative

measurement– Understand what success looks like to multiple stakeholders– Companies did not network beyond workshops– Matchmaking Design Associates to customers– Attachment to college a double-edged sword– Companies must pay something

ContaCt, informations

website www.designinnovation.ie

Contacts Justin Knecht, Programme Manager Centre for Design InnovationPh. +353 71 915 5496 - Mail [email protected]

sourCEs

Centre for design innovation’, Justin Knecht, Paris January 2012

“Innovation by design”, 2008

“Building Next Generation Design Support Programmes: putting policy into action”, SEE Project 2011

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thE arChitECturE of thE modEl (Why, artiCulation, staKEholdErs, finanCing…)

Historical, political and strategic context (regarding design & innovation)

The Design Ladder was developed by the Danish Design Centre (DDC) in 2003 as a tool to measure the level of design integration in Danish businesses. The Ladder, used as a framework for a survey, was the first step in developing a method to assess the economic benefits of design in Denmark.

Design Ladder: four stages of design maturity:– Stage one: No Design. Design plays little or no role in product or service

development. For instance, product and service development is performed by personnel who are not design professionals. The utility of the end-user tends not to be considered.

– Stage Two: Design as Styling. Design is only relevant in terms of aesthetic considerations such as style, appearance and ergonomics. Sometimes professional designer may be involved but styling will be predominantly purchased internally or from professionals in other sectors.

– Stage Three: Design as a Process. Design is considered in terms of a process or method in product or service output but is only employed at the initial stages of development. The design solution is procured externally and is adapted to the requirements of the end-user using a multidisciplinary approach.

– Stage Four: Design as Strategy. Design is integral to a company’s continuous renewal of their business concept as a means of encouraging innovation. The design process is fused with the company’s key objectives and plays a role at every stage of development.

The higher a company was ranked on the Design Ladder, the greater strategic importance they attributed to design. In order to raise awareness of the benefits of design in industry, it is vital to encourage companies to move up the scale. The DDC has developed a series of courses and training programmes to enable companies to progress.

Consequently, in September 2003, the Danish government adopted a four-year national design policy as one of five new strategic initiatives to promote economic development under the programme “Denmark in the Culture and Experience Economy”.

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The survey was repeated in 2007. By indexing the companies according to the four profiles, the Design Ladder provides an assessment of how many com-panies actually moved up a rung on the ladder over the course of four years. The result revealed that, between 2003 and 2007, the distribution of Danish companies at stage three of design maturity rose from 35% to 45% and the number of companies at stage four rose from 15% to 20%.

The Design Ladder is proving to be a successful tool for evaluating design promotion. By assessing how many companies move up a rung on the Design Ladder once design promotion and policies have been implemented, the Danish government has a tangible assessment of the role of design in industry.

In 2009, the focus of the support activity shifted from ‘Why design?’ (awa-reness) to ‘How design?’ (behaviour): building the right bridge between the industry and the design companies.

Programme objectives It is the aim of the Danish Design Centre to progress companies up the Design Ladder.

Alignment of the project with other support programmes (innovation, business…)?Connections to the framework of resources available to support innovation in businesses (grants, vouchers, loans, etc.)

There is no formal interaction with other business or innovation support activities funded or managed by institutions, although the programme is known to the public authorities, through the review of the activities of DDC.

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organisational structure and governance: lead partner & stake-holders/partners (roles in the project)

Both DDC promotion and design support activities are financed by the Ministry of Business and Growth. The Danish Construction Authority

— the nation’s body operating between the Ministry and the DDC – evaluates all DDC activities. Each trimester the DDC report to the Authority, however it is DDC that defines the content.

The “Design Fund” scheme has been also financed by the Ministry, and its scope (content and rules) was partly defined by the DDC, partly by the Ministry.

Funding (budget and resources)

A specific “Design Fund” was existing in 2011 and 2012. This fund/scheme was managed by DDC.

Region (geographical coverage)

Nation wide

thE BEnEfiCiariEs (modalitiEs, rEquisitEs, sElECtion of providErs…)

Targets (intermediaries, SMEs, designers…)

The direct beneficiaries of the “Design Fund” could be any SME, including even companies not involved in DDC programmes.

The indirect beneficiaries are design consultants, as the scheme subsidises partly the costs of the design commission.

Client selection criteria/process

Top manager of each company need to attend to the programm: “CEO + one” policy (the top manager and an employee). It was also their role

to present the report/action plan to their staff.

DDC evaluated the companies’ understanding of design. As a matter of fact, it was important for the success of the program that each company had a basic understanding (e.g. design is not just a product, design adds value, design is a strategic tool, etc.)

Marketing: ways of recruiting (call for proposals, promotional tools, conferences, exhibitions…)

Companies are identified and approached through:– Meaningful and relevant design knowledge– Cooperation with business centers and/or councils– Inspirational meetings– Personal phone calls– One to one meetings– Networking– Online media

Cost and commitment for the participant

All businesses attending the DDC programs need to pay a fee. Paying a fee is an indication of taking this seriously – that attending is based on a calculated choice. This is also an indicator, that the businesses are not just attending the 360 Degree Program, they use this program to improve their design skills in order to integrate design on a strategic level and to buy more design. However the fees do not cover the cost of the program – this is also why the intentions and “readiness” of the business are assessed prior to approval.

As a result, companies could benefit of a grant covering 50% (topped at € 5,400) of the design consultant’s fees.

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thE mEthodology and sErviCE ovErviEW (CollECtivE, sECtorial, individual; tools, proCEssEs, diagnostiC, matChmaKing, WorKshops, mEntoring, trainings…; lEvEls, stEps): oBjECtivE, ContEnt, targEt group, numBEr of partiCipants, timE framE, Cost, EtC.

Presentation It is the aim of the Danish Design Centre to progress companies up the Design Ladder. To achieve this, two programmes have been created with the purpose of bridging the gap between the industry and design companies:

“Design Boost” and “360° Design”.

The focus of both programmes is to change the mindset of companies. By changing this mindset it is intended that companies will progress up the design ladder, from non-design to design as strategy, and maximise the opportunities offered by the application of design.

Programme team Advisors from DDC (staff or selected partners). Advisors are partly from the design profession, partly other consultants – and supported by case studies presented by business people. All advisors were trained to deliver auditing – or had some experinece in doing it. The inspiration came from UK’s Design Council ‘Design Associates’ program, which has proved very effective.

The advisors monitor the design project (e.g. give phone calls, attend some meetings, help in case of conflicts, etc.).

External competencies taking part to the project development

The mentors are design managers from large companies or CEOs of SMEs with huge design experience.

Process DDC Programmes

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Identify companies

Com

pany research

Individual phone call

Individual meetings

Design projects

Mentoring

DD

C program

s

Identify Design needs and Mindset Identify Design project

Identify Program needs

DesignM

atch

Portofolio

Inspiration Knowledge Exploration

Stra

tegi

cO

pera

tiona

l

Design Boost

r DesignDesign

Managenetwork

Inspiration viameetings

WEBOne-on-one

meetings Exhibition

Design Workshop

3

I

60° Design-and

nnovations program

Conference

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Design-driven Innovation (DIN)

The Danish Design Centre has developed a model for design driven innovation based on user-driven innovation, design principles, and design methods. The purpose is to increase innovation, precision, and successful imple-mentation in the private and the public sectors. The model is based on practical experience from projects and concepts concerning social challenges.

Design Boost Design Boost is a short intensive program that aims to introduce companies to design. Design Boost takes five companies with two employees each (one of which must be a CEO or senior manager) on three half-day workshops over a two-week period. The main objective is to convey the value of design. For the initial meeting, all companies work together in a single workshop. This varied, small number of participants creates a dynamic, informal at-mosphere and activities concentrate on applying design to specific challenges.

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STEP 4International Conference

Portepolio vs. The Design Ladder

STEP

STEP 3

360° course

Design Workshops

One-on-one meetings

STEP 1

2

Inspiration via meetingsDesign Boost

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For the second meeting, businesses are partnered with three different design companies representing product design, service design and graphic design. This meeting offers an opportunity for companies to ask specific questions around design in relation to their own activity. For the final workshop, companies are brought back together into a single group and create customised plans of action for the future.

Get started: short intensive courseFocus on specific challenges: “here and now”

– Number of participants: 5 companies per Design Boost session– Target group: 10+ employees – Design ladder step 1 & 2– Attendees: 2 (1) leading employees– Time frame: 3 half days over 2 weeks– Budget: 90,000€€ - app 15-18 companies– Results: Plan for use of design– Payment per company: 1,000€

360° Design- and Innovations programme

For companies already familiar with design, 360° Design is an in-depth course focusing on business development and design strategy. 360° Design focuses on improving the use of design through business development and cohesion, namely design strategy. Twelve to fifteen companies, with two employees each, participate in workshops over three to four days. Meetings aim to create a ‘design strategy mindset’ that opens up to new possibilities. Business development strategies are created to identify the opportunities offered by a design approach and what steps are needed to implement the necessary changes. Companies are introduced to a number of designers from which they can select one to work with in implementing the new strategy.

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Design Boost- Basic concept

Partnerships

Design workshop”local”

Plan of actionDesign strategy

1 2 3

Marketing

One-on-one meetings

Follow up

Team of designers:3 different design companies

All companies

participatesAll companies

participates

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Improve the use of design: in-depth courseFocus on business development and cohesion

– Number of participants: 12-15– Target group: Design ladder step 3 businesses– Recruitment: Dependent on partnerships– Attendees: 2 leading employees– Time frame: 3-4 days– Budget: 200,000€€ - app 40 companies– Results: Insights into own challenges and possibilities, insight into

methods, tools, network– Payment per company: 1,350€

Duration of the programme

2 years (2010-2012)

After the programme… Some businesses come back attending seminars or one day workshops – mainly for inspiration.

thE implEmEntation and thE dEploymEnt of thE programmE

Duration of the project 2 years, although the DDC has had various design support activities towards businesses allthrough the years 2000-2012.

Phases of the programme

The 360 Degree Program ran from 2010 to 2012

Sustainability of the project (next steps)

The DDC has laid out a new strategy which has taken effect from 1 January 2013. As a consequence, the DDC discontinues some of its previous activities and no longer conducts design guidance activities such as ’Design Boost’.

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360° Design- and Innovationsprogramme- basic concept

Partnerships

Marketing

Business DevelopmentDesign strategy

User drivenInnovation

Materials and technology

Communication and branding

1 2 3

Implementation

“Dating”

4

One-on-one meetings

Follow up

• Case presentations• Speeches from design companies• Speeches from specialists• Workshops – individual problems/challenges

technology

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Transferability of the programme (regional, national, European)

The architecture of the programme and its delivery are rather similar to those deployed by the Designing Demand, New Zealand, APCI’s programmes: strong distinction between the advising and the design project phases, one to one or peer advice rather than general information about the role of design in business.

Intellectual property issues (open source /tools, processes, methods)

N/A

Conception of closer collaborations with other business/innovation support programmes?

N/A

thE Evaluation of thE programmE (aChiEvEmEnts and EffECtivEnEss)

Results 40 companies received a grant respectively in 2011 and 2012.

Businesses feedbacks The 360 Degree Program is a great way of introducing businesses to designers and reverse. Today, a large numbers of businesses attending the program, are working with designers they met during the program. Others have found designers, that were not part of the program – but the program has helped them to identify their design neeeds, and to have “design conversations”.

Key programme assets (positive aspects, good practices…)

Design Boost Key’s learning: if it ain’t broken, don’t fix itConcept – Format – Content

– Customised – flexible– Hands-on – tangible – operational– Action oriented– Focus is on “ME”

Attention:– Demands “something” beyond the design competences– Partner– Mutual cluster or industry affiliation– Develop a Design Boost concept for step 3 companies

360° Design- and Innovations programme Key’s learning: keep on doing– Mentorship: business people– Preparation: right mind set– Content flow: Development – solution – Implementation (360 degree…)– Group size: 8 (10) companies– Payment: increase commitment– Relevance: own challenges– Anchorage: minimum two participators pr company (decision maker)

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How to initiate design projects in companies?Behavior – attitude and mindset

– Relevant specific projects– Management – Mindset– Work Method – The DIN Modell incorporated in the companies– Design fundraising

Mentoring was one of the most successful factors of the 360 Degree Program. The companies worked closely together with a mentor (these were design managers of large companies or CEOs of SMEs with huge design experience) in workshops. The mentors were both challenging them and helping them.The 360 degree program also included sessions gathering different businesses, the interaction between the participating companies were very effective too. Collective sessions can also reduce costs.

Lessons learnt (improvement axes, areas of change…)

Key learning’s – room for improvement. Recruitment!!!!!– Focus on efficiency rather than growth during the financial crises– Step 3 content for step 1 and 2 companies– Lack of: What’s in it for me– DDC Image: Courses in Business development– Output: plan of action– Legacy: follow up – relationship– Portfolio management: 360 degree – what’s next– Language

ContaCt, informations

website http://en.ddc.dk

Contacts Christina Melander - Project Manager, Design & InnovationPh. : +45 2946 2922 - [email protected]

sourCEs

“Building next generation Design support programme”, Danish Design Centre, Tallinn december 2010

“Building next generation Design support programmes”, Danish Design Centre, Paris january 2012

“The Vision of the Danish Design 2020 Committee”: www.dba.erhvervsstyrelsen.dk/file/301679/vision-danish-design-2020.pdf

“Building Next Generation Design Support Programmes”, SEE Platform: www.seeplatform.eu/docs/Design%20Support%20Programmes.pdf

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thE arChitECturE of thE modEl (Why, artiCulation, staKEholdErs, finanCing…)

Historical, political and strategic context (regarding design & innovation)

A survey conducted by the UK Design Council shows that 32% of all British enterprises have introduced a new product or service over the last three years. Among enterprises that use design methods in their business develop-ment process, the corresponding figure is 67%! The British survey shows the huge potential there is in innovation methods focusing on a methodical and user-focused approach to the ideas stage. Design-driven innovation employs such an approach, but only a small percentage of Norwegian companies currently use this method in their innovation work.

The Design Diagnosis survey undertaken on behalf of the NDC in 2009 shows an identical tendency in Norway. The survey showed that companies that actively make use of design in their processes had twice the level of innovation of other companies, across all business sectors. Furthermore, the survey showed that four times as many design users applied for patent protection, compared with companies that do not use design in their innovation processes.

Design-driven innovation has been launched as a new initiative in innovation policy in the ‘innovation white paper’ that the Government presented to Parliament in Autumn 2008. The Norwegian Design Council was given the responsibility for developing and introducing a business-oriented programme with the title ‘Design-driven Innovation Program’ (DIP). Such an initiative has never before been undertaken in Norway. Norway is also the first country in Europe to launch a dedicated programme addressing design-driven innovation.

Programme objectives The aim of the DIP is to strengthen industry’s as well as the public sector’s ability to include user needs in a systematic way in the idea phase of inno-vation projects – and to use design from the start to translate and visualise what possibilities and product/service ideas might arise from this increased user insight.

The funds made available for NDC each year covers three major activities:1. Funding of pilot projects covering the Ideation phase/conceptual phase of an innovation project in industry and public sector based on a yearly call for applications that meets up with given professional criteria.

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2. Research, interviews and following up of every project that has been finished in order to collect information and process-material connected to each project, experiences with the designdriven innovation methods that has been conducted together with corresponding results.

3. Production of cases, knowledge-transfer and inspiration activities, PR and publications which arrives from the projects, — aimed at the industry, public sector, design community, political environments, and education institutes.

The purpose of pilot project support is:– To gather new knowledge and experience about the practice of design-

driven innovation methods, both for the individual enterprise and at the national level;

– To contribute to the development of specific methodical tools and procedures that can form the basis of consultancy and business-related service programmes;

– To help participating enterprises develop specific and competitive innovation as a result of the project and methodology.

Alignment of the project with other support programmes (innovation, business…)?Connections to the framework of resources available to support innovation in businesses (grants, vouchers, loans, etc.)

The Norwegian Design Council is a strategic body, so it does not offer funding or endorsements directly to individuals. However, it has established some funding schemes through its partnership with Innovation Norway and the Norwegian Research Council (SkatteFUNN).

‘SkatteFUNN’ was launched in 2002 and is Norway’s largest initiative within R&D in industry. The scheme applies to all taxable businesses in Norway. It offers tax deduction for business enterprises engaged in research and development activity on their own or in collaboration with others. The eligible projects must have the goal of obtaining new knowledge, information or experience that can contribute to new or better products, services or production methods. The scheme is open to all branches of industry and all types of companies — regardless of size.

organisational structure and governance: lead partner & stakeholders/partners (roles in the project)

The Norwegian Design Council (NDC) has developed a programme construction, which takes into account all legal aspects connected to Government support regulations. The programme does not require notification.

A Programme Board has been set up, with the responsibility of overseeing all procedures, as well as approving the handling of applications and funding. The Programme Board comprises representatives from NDC, the Research Council of Norway (RCN) and Innovation Norway (IN).

Funding (budget and resources)

NDC is financed by the Norwegian Ministry of Trade and Industry (MTI) and is part of the ministry’s policy to increase the competitiveness of the Norwegian trade and industry.

The MTI and Industry has since the start up in 2009 granted NDC 1,3 million Euros each year in order to execute the program, which means that in total the program has received accumulated funds of 6,7 million Euros including 2013. We expect to receive at least another 1,3 million Euros in 2014, which means that the program will have runned for 6 years by the end of 2014.

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Region (geographical coverage)

The organisations can be located anywhere in Norway.

thE BEnEfiCiariEs (modalitiEs, rEquisitEs, sElECtion of providErs…)

Targets (intermediaries, SMEs, designers…)

The programme aligns itself with established businesses that want to strengthen their competitiveness or service level by creating new solutions for their users. As for the public sector, the programme offers grants for projects where the objective is to improve end-user satsifaction, and at the same time introduce more effecient operational performance for the public body in question.

Client selection criteria/process

Under Design Pilot, grants for projects can be given to all legal entities, such as product and service offering companies, organisations, public businesses, and private or public institutions, such as educational and research institu-tions. Both large and small businesses or groups can apply. Grants are not given to individuals, sole traders, or non-VAT registered companies.

Funding is only given to projects where at least one company takes part. It is assumed that this company is either responsible for the project or is the main collaborating partner.

Foreign collaborators, such as businesses, knowledge centres or design agencies, can also enter into projects under the programme. The deciding factor is whether the projects contribute to advancing design-driven innovation in Norway.

Criteria for funding

1. Starting with users’ needs: Special emphasis is given to how well a project develops and tries out methods to uncover users’ realised and nonrealised needs.

2. Application of design competence: The use of design competence is central to the programme. It is therefore a requirement that design competence is actively utilised in carrying out the project.

3. High level of newsworthiness: The degree to which the project’s methods or approaches differ from general practice, is innovative, and involves thinking in new and untraditional ways is an important consideration.

4. Measurable effect: The project should give concrete and lasting results. In other words, its aims should be clearly described through highlighting its goal, or the problem it intends to solve.

5. Usefulness for others: Another consideration is how relevant and useful for others is the knowledge gained from the project. This means the degree to which the contents of the project are relevant for a broader circle of participants than those directly involved in the project will be analysed.

design pilot (norWay)

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6. Communication of results to a wider audience: The main intention of De-sign Pilot is to obtain more knowledge and information about methods and processes linked to design-driven innovation as an innovation method. It is important therefore that all experience and process materials are made available to the Norwegian Design Council.

7. Additionality: The degree to which the project is additional is analysed. That is, if the project will be cancelled, or reduced in scope without funding from Design Pilot.

Marketing: ways of recruiting (call for proposals, promotional tools, conferences, exhibitions…)

NDC has developed an electronic application form, which includes all the variables needed to perform serious and credible handling of applications. The application form also contains current tips and advice on filling out all of the application form fields.

A group consisting of representatives from NDC, RCN and IN evaluates the applications according to the programme’s strategic and academic intentions, programme criteria, research quality and the applicant’s creditworthiness. The stated reasons for reductions and funding are presented to the Programme Board.

Cost and commitment for the participant

Design Pilot only supports projects that apply for more than 13.500 Euros from the programme. The project must be completed within the end of the year following the grant.

Private businesses and companies may receive up to 50% of the total cost incurred during the idea phase of the project, while public sector organisa-tions may receive up to 75%.

The development or implementation phases are not covered by Design Pilot – only the ideation phase.

The financial contribution of the participant includes salary expenses for the organisation’s personnel that are involved in the ideation phase of the project.

thE mEthodology and sErviCE ovErviEW (CollECtivE, sECtorial, individual; tools, proCEssEs, diagnostiC, matChmaKing, WorKshops, mEntoring, trainings…; lEvEls, stEps): oBjECtivE, ContEnt, targEt group, numBEr of partiCipants, timE framE, Cost, EtC.

Presentation The programme supports individual projects that involve users and use design methodology in the development of new products and services. Support is given to the idea phase in an innovation process, where the final goal is to develop entirely new solutions for products or services. It is a condition that design is central, and that businesses use their own or hired design expertise in the project. If a project’s purpose is only to realise an existing idea, concept or invention, it will not receive funds from Design Pilot. By “users”, the NDC means, for example, consumers, customers, other companies, specialist environments, organisations, suppliers, patients, or citizens.

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Presentation Examples of projects that can be supported by Design Pilot:– Product development towards consumers– Product development towards companies– Service development within private industry– Service development within the public sector

Programme team The Norwegian Design Council has a consultancy service (Design Consul-ting) where their consultants may assist in establishing and carrying out design based business development projects (5 business consultants).

The consultants are available for companies who want to use design in:– Product and service development– Market communications (packaging design, branding, corporate identity

projects etc.).

The consultants can assist in:– Identifying opportunities for design in the company– Evaluation of the companys’ current use of design– Counselling in use of design in development projects– Counselling in the organization of designprojects– Developing design briefs– Finding the right designer or design agency– Workshops and seminars

External competencies taking part to the project development

N/A

Process Design Pilot focuses on the idea phase, as well using design competence to translate information about the user into concrete ideas, concepts and opportunitie, that will then be taken through development, commercialisation and implementation phases, after the conclusion of the Design Pilot project.

objectiveDescritpion of the innovation project’s objective, for example:

– Improvement of existing products, services or business models– Development of entirely new solutions

IDÉFASENIDEA PHASE

IdégenereringIdea generation

Avdekkebrukerbehov

Discoveruser needs

KonseptdefinisjonConcept

definitionIdentifiseremuligheter

Identifyopportunities

IdéavklaringIdea clarification

BRUKERFOKUSUSER FOCUS

DESIGNKOMPETANSEDESIGN COMPETENCE

UTVIKLINGDEVELOPMEN

INTRODUKSJONINTRODUCTION

VEKSTGROWTH

DESIGNDREVET INNOVASJON // DESIGN-DRIVEN INNOVATION

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User studiesDescription of which methods and professional expertise that will be utilised in order to discover new user needs.

Identifying opportunitiesDescription of how information from the user studies will be “translated” into alternative concepts with the help of design methodology.

Idea clarificationDescription of which methods and professional expertise will be used in order to choose the final concept that will be brought into the development and implementation phase.

Below is a general description of the process for which a support can be obtained

Duration of the programme

Started 2009

After the programme… N/A

other tools www.inclusivedesign.no: This practical web guide aims to give business and designers an introduction to Inclusive Design by presenting methods, tools and processes that can be easily adopted and implemented in everyday practice.

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thE implEmEntation and thE dEploymEnt of thE programmE

Duration of the project The Design-driven Innovation Programme (DIP) has a long-term perspective. It was launched in 2009 and is still in action.

Phases of the programme

The structure of the programme has not been substantially modified since its launch.

Sustainability of the project (next steps)

N/A, the programme relies on public funding.

Transferability of the programme (regional, national, European)

The specific application criteria and the limitation of the support to the initial phase of the new product/service development could require substantial adaptation to different contexts.

Intellectual property issues (open source /tools, processes, methods)

N/A

Conception of closer collaborations with other business/innovation support programmes?

The programme involves the NDC, the Research Council of Norway (RCN) and Innovation Norway (IN)

thE implEmEntation and thE dEploymEnt of thE programmE

Results When launching the Design-driven Innovation Programme (DIP), only a few businesses used the design-driven methodology in their innovation work in Norway. The source of the problem is thought to be that because this is a new method in an early growth phase, information and knowledge dissemination to companies about these processes is undeveloped. The programme has been established to stimulate competence-building and investments in the idea phase, based on systematic user studies and design methodology.

Counting with the latest call for applications (2013) NDC have the following accumulated results since the start-up in 2009:

– Number of applications: 625– Amount applied for: approx 40 million Euros– Number of different industries/public sectors that have applied: 90– Number of projects that have received funding: 69 (by the end of 2013:

approx. 85)– e.g. approx. 10% of all applications receives a grant each year according

to the budgets available for this purpose.

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The large response from so many different industries/sectors, shows a great interest in trying out new methods of innovation that put the user in the driver’s seat.

Modest investments in the new methodology have resulted in significant R&D investments in realising the concepts that have resulted from the programme’s pilot projects. All the companies involved have realised the value of design-driven innovation as a method and wish to further develop their competencies in methodology through the new projects. The companies emphasise that these results would not have been realised without support from the programme.

An important method of measuring whether DIP gives results that would otherwise not have been realised is to determine if Design Pilot projects culminate in decisions to undertake further development through R&D, implementation activities and investments. The first round of Design Pilot projects was implemented during 2010. Many of these projects are subject to confidentiality clauses pertaining to competitiveness and IPR. However, common to the majority of them is that the Design Pilot results have been so successful that it was subsequently decided to make them actual projects for further follow-up and R&D;

Some examples:

A selection of three companies from 2010 are among those which have decided to bring the results from Design Pilot forward to the R&D stage and have applied for R&D support from Norway’s SkatteFUNN tax deduction scheme and the Research Council of Norway’s User-Driven Research-Based Innovation scheme BIA and Maritime Activities & Offshore Operations scheme MAROFF.

The total value of the planned R&D investments in these three companies, including likely support from the Research Council of Norway, is initially estimated at NOK 75 million. By comparison, support for the Design Pilot projects for the same three companies totalled in their time NOK 1 million!

The MTI has decided to run an independent evaluation of the outcome of DIP so far, during the fall of 2013.

Moreover the Design Diagnosis 2009 showed that, unbelievably, 83% of Norwegian companies do not carry out user analysis as part of their innovation work – so we can safely conclude that Design Pilot may be the start of a new development. This is promising for Norwegian companies’ approach to innovation and future competitiveness.

Businesses feedbacks Design Diagnosis clearly shows that design will be among the new tools businesses should use to ensure success, regardless of industry sector.

The survey shows the three most important reasons companies invest in design:

– To offer added value to their customers– To enter new markets– To develop products and services of higher quality

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Key programme assets (positive aspects, good practices…)

From 2013 onwards, project cases will be publicised faster and in greater numbers. This will give the Norwegian Design Council the opportunity to utilise the information collated in its dissemination efforts, research projects and connecting with international innovation partners and EU initiatives in design-driven innovation in the business sector.

The NDC consider that by the end of 2013 the basis for the project will be sufficiently well established to enable work on developing specific “toolboxes” and methodology concepts to commence. This will be planned so as to allow new experience and practices to be integrated on an ongoing basis. The aim is to establish a foundation for the following activities aimed at the business and public sector from the end of 2013 and onwards:

– Reference work for “Help with self-help”– Specialist press– Workshops– Courses and seminars– Advisory/consultancy services– Clusters as a possibility

Lessons learnt (improvement axes, areas of change…)

Will be made available during 2013/14

CasE studiEs

Case study 1 www.norskdesign.no/ulstein

Case study 2 www.norskdesign.no/aho

ContaCt, informations

website www.norskdesign.no

Contacts Skule Storheill, Director R&D and Innovation [email protected], T: +47 23 29 25 54 / +47 901 03 361

sourCEs

“Design-driven Innovation Programme”, June 2010“DIP works”, Status report, 2012, //www.norskdesign.no/dipworks

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thE arChitECturE of thE modEl (Why, artiCulation, staKEholdErs, finanCing…)

Historical, political and strategic context (regarding design & innovation)

State funded initiative to support the integration of design in SMEs in 10 regions (2009-2011). Set up by the Ministry of Industry. Organisations in charge of delivering the service had to propose a methodology in response to a call for tender.

Programme objectives Supporting SMEs that had never used design to create a design brief and select a design consultant.

Alignment of the project with other support programmes (innovation, business…)? Connections to the framework of resources available to support innovation in businesses (grants, vouchers, loans, etc.)

No connections identified in the programme.

organisational structure and governance: lead partner & stake- holders/partners (roles in the project)

Regional coordinator: Direccte (Direction régionale des entreprises, de la concurrence, de la consommation, du travail et de l’emploi): regional state organisation in charge of support to industry, Programme leader: DGCIS (Direction générale de la compétitivité, de l’industrie et des services): department of the Ministry of industry in charge of design.Stakeholders: Regional governments innovation support organisations.APCI: delivery in the region of Brittany and Picardie. Other organisations have been selected for other regions. Nevertheless, the methodology has been globally similar.

Funding (budget and resources)

€100.000/region approx. (tenders)

Region (geographical coverage)

10 French regions (out of 26), selected on a voluntary basis.

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thE BEnEfiCiariEs (modalitiEs, rEquisitEs, sElECtion of providErs…)

Targets (intermediaries, SMEs, designers…)

SMEs, as final beneficiaries of the action.APCI (or other intermediaries, depending on the result of the tendering process), as providers.

Client selection criteria/process

SMEs have to express their interest, and fill in an application form. Selection committee involving regional institutional stakeholders.

Marketing: ways of recruiting (call for proposals, promotional tools, conferences, exhibitions…)

“Design awareness workshop”: Prospecting and recruitment of the businesses have been supported by the Direccte business advisors, in collaboration with the region’s business support advisors. Advisors have targeted in priority companies they knew as well as companies for which the use of the design could present an additional asset in the development of ongoing projects.APCI has supported companies’ recruitment by a communication through its networks and its businesses database. Workshops have been announced on the website of the APCI (1 workshop per region). 20 participants, mostly company’s managers, took part to the awareness day. The companies came from diverse sectors.

“Design integration support“: following the “Design awareness workshop”, companies received an application form regarding the provision of support for writing a design brief. This document included a small questionnaire in order to qualify the project of the candidates and assess their design maturity. The document was also dispatched to companies that had declared an interest to participate in the “Design awareness workshop” but who were unable to attend. A “business innovation diagnosis” has also been proposed to companies using the “Improve” questionnaire. Despite the interest shown by some companies, the questionnaire was not used, as the innovation process of the SMEs was not structured enough to answer most questions. A selection committee bringing together the different stakeholders (APCI, Direccte, Oséo, INPI) selected the companies. To drive its choice, the committee relied on the documents presented by the company, and the knowledge of the company by the local advisors. 6 companies per region were selected.

Cost and commitment for the participant

Average estimated cost: € 8,000 per company, fully supported by the DGCIS. Companies attending the ‘design awareness workshop’ had to pay € 30 (covers lunch and coffee). No binding commitment to run the design project right after the diagnosis and the consultant’s selection was required.

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thE mEthodology and sErviCE ovErviEW (CollECtivE, sECtorial, individual; tools, proCEssEs, diagnostiC, matChmaKing, WorKshops, mEntoring, trainings…; lEvEls, stEps): oBjECtivE, ContEnt, targEt group, numBEr of partiCipants, timE framE, Cost, EtC.

Presentation “Design awareness workshop”: this one day session is split in two parts. The morning illustrates the various roles of design in business, and includes testimonials from companies and designers. The afternoon session gathers the audience in small groups, with insights about the writing of a design brief. The session has no specific focus, neither in terms of sector, nor in terms of design activity (product, graphic, packaging, branding etc.).

A consultant matched to the business by the APCI project manager delivers the “design integration support”. APCI monitors, through interviews and short questionnaires, the progress and satisfaction of both parties. APCI’s project manager attends also the audit presentation meeting, as well as the design consultants’ interviews.

Programme team APCI project manager for the organisation, external advisors (senior designers or design managers) for the individual support to the businesses.

External competencies taking part to the project development

APCI has chosen to mandate a group of advisors in design and design management. This choice was motivated by two reasons:

- The need to mobilize design skills adapted to a plurality of projects and issues, to respond to the needs of the business a structured approach to the use of the different design fields (product, branding, graphics, etc.)

- The need to mobilize professionals whose experience and track record allows them to broaden the company’s immediate request. Experience shows that it is important to properly situate design within the competences already available in the company (technical, managerial, marketing). Matching is operated based on the background of the consultant on one hand and the project and context of the company on the other hand.

Process The “design integration support” was structured as follows:

Analysis and diagnosis (this frame was contextualised by the advisor):Step 1: Knowledge of the company, of its resources and its know-how. Observation of existing products, manufacturing and industrial processes.Step 2: Knowledge of the fundamentals of the brand (identity, message, value). Collection of information on the market, customers and competition.Step 3: Analysis of the needs of the company in connection with the intended design project.Step 4: Definition of the design project team.Step 5: Validation of the design brief.

Launch of the design projectStep 6: Create a shortlist of design consultants.Step 7: Launch of a closed call for tenders.Step 8: Assistance in the interviews with the design consultants.Step 9: Assistance in the review of applications.Step 10: Follow-up post operation (negotiations, contractual issues, grants...).

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The analysisCompanies had all provided a presentation of their initial project, but the first interview often revealed weaknesses:

- At the marketing level (for example: lack of insights on the market and competition);

- At the organizational level and the management of the design/innovation process (weaknesses at the level of the competences interfaces);

- At the commercial level (gaps in the process of launching new products).

Regarding these points, advisors aimed to assess the company’s technical, human and financial capacities as well as to identify its potential and needs.The methodology implemented to gather information is based on:

- Interviews with the manager as well as a number of actors (management, marketing, sales, research department);

- Working groups and brainstorming sessions on specific thematics;- Observation and inventory of the industrial equipment;- Visit of points of sale;- In-situ observation of the products.

This analytical work conducted in cooperation with companies is laying the foundations of a design strategy and must motivate companies to introduce design in the development of future projects.

The diagnosisAt the end of the audit, the synthesis of information allowed:

- To reveal the strengths and weaknesses; - To assess the risks and opportunities of the company;- To (re-)qualify the needs;- To express objectives in line with the strategy and

the company’s values.

This audit was presented to senior management for discussion and approval. By validating a strategic framework, consultants and businesses have recast the initial design project in a global perspective of the development of the activity.

Formalization of the design process: the design briefAs a result of the reframing of the project, recommendations regarding the design project were formalised in the design brief structured into three sections:

- The company and its operational context;- The project;- The deliverables expected and the capacities of the design consultancy.

The design brief has been developed using either of two approaches, de-pending on each business-advisor relation:

- Directive approach: The advisor collects and synthesizes the information and develops the brief. The company is asked to provide supportive material. The advisor drafts the brief and gets it validated by the senior managers;

- Collaborative approach: The advisor provides a contextualised template to the project manager(s) in the company. The company will fill it in and submit it to the advisor. Through a couple of iterations, the brief is developed and approved.

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Companies must be able to use this document:- As a repository in their strategic thinking and make it evolve in the context

of new developments;- As a model for the development of other design briefs.

It is worth noting that if the design briefs did respond to the companies’ expectations, participants mentioned their uncertainties about their ability to draw up this kind of documents.

Selecting a design consultancy Advisors and APCI shortlisted on average 5 design consultants that could respond to each brief. A special attention was given to the identification of regional designers. In addition to the network of APCI, partners in the region have been asked to help identifying designers and agencies. On average, a list of 3/4 designers has been approved by the company and invited to make an offer.

This closed call for proposals was chosen because:- It reduces the number of applications to examine and ensures fair

treatment in a limited timeframe;- It ensures responses with a higher quality, as applicants have a significant

possibility to win the contract.

Interviews with designers were conducted with the help of the advisor. A designers’ evaluation grid was delivered to the company to guide it in its choice.

The review of applications was conducted with the advisor and APCI’s project manager. The role of the advisor is the one of a facilitator, so that company managers discuss the different presentations, before reaching their decision.

To choose a designer, his professional competence, his experience and the relevance of his response are benchmarks for the company. However, the clarity of the presentation (both written and oral), the readability of the offer but also the quality of listening and the ability of the designer to capture the latent expectations of the company are all elements that count in the decision.

Duration of the programme1 year per region.

After the programme… Concluding workshops have been organised: one per region, and one, at a national level, after the two years. A new pilot programme will run in 2013, targeting specifically businesses in innovation clusters.

thE implEmEntation and thE dEploymEnt of thE programmE

Duration of the project 2 years

Phases of the programme N/A

Sustainability of the project (next steps)

There has been no exit strategy developed. The programme was a test.

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Transferability of the programme (regional, national, European)

Elements of the methodology could be transferred.

Intellectual property issues (open source /tools, processes, methods)

APCI has developed specific questionnaires for further actions.

Conception of closer collaborations with other business/innovation support programmes?

N/A

thE Evaluation of thE programmE (aChiEvEmEnts and EffECtivEnEss)

Results The programme has been successful, with most businesses finalising a project. In some cases, the actual project differed significantly from the initial one, presented by the company in its application. This suggests that the audit has a significant impact on consolidating or reshaping the perspective that the SME’s top management has about design.

Businesses feedbacks ‘Design awareness workshop’: the study of the satisfaction questionnaires and follow up discussions with companies show a real interest for design. Be-fore the workshop, the majority had only a fragmented vision of design (mostly seen as a styling). The presentation of various cases and testimony helps companies to realise that the design approach could support also their activity and projects.

‘Design integration support’Design contributes to the consistency of the brand: a branding/marketing perspective of the intended offer was appreciated, even for small businesses. Integrating these parameters has helped companies to better assess their market and led them to readjust their goals. Design as a vehicle for consolidating the skills and know-how of the company. The design approach introduced by the advisor has promoted a new relationship to the innovation process in place and has started a review of business habits.

Designers’ point of view N/A

Key programme assets (positive aspects, good practices…)

Strong pointsAt the end of the action, the perception of the role of design has changed completely and all the participants showed a real interest in integrating it in their future projects. The observations conducted during interviews, the follow-up sheets and the feedbacks registered during the review, show that firms have acquired a more accurate vision of the fields of competence of design and how it can support the challenges faced by the company. The global analysis conducted by the advisor has led some companies to modify substantially their initial project.

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Some elements are shared by all the participants:- User-centred innovation. This has transformed the design process in most

companies taking part in the action;- The capacity of the design to respond in a fresh way to markets.

Participants appreciated the ability of the advisors to frame the project in the broader perspective of a business strategy.

Companies recruitmentCompany attending the awareness workshop recognize they learned a lot about design. But this Is not enough to allow companies to identify how design can support their development. It is more a starting to begin a search for information, advice and support. Companies with a previous experience of design would require another format for the action.

The format of the awareness workshopThe collective workshop provides several benefits. The discussion time and side activities are valued by the managers and allows them to share their problems. An awareness-raising workshop for a group of companies from a same sector (software publishers) showed that thematic workshop should be more focused on businesses’ practical challenges.

Sensitization materialsThe documentation should include at least:

- A presentation of design, its different fields and basic support documents (e.g. how to hire, fees, IP…);

- The list of participants with their contact; a list of support organizations, networks of resources in the region, etc. and resources (e.g.: web sites, etc.).Any other supporting documentation (INPI, OSEO, etc.) is welcome.

Selection of businesses for integration supportInstitutions cannot support all applicants, it is helpful to check several points:

- The eligibility of the company;- The willingness of the company to initiate a design approach and

the commitment of the top management;- The consistency of the intended project in respect to the company’s assets;- The budget allocated to the design project;- The managerial and financial robustness of the company.

It can also be useful to look at the innovation culture in the company.

Matching of the advisors with the businessAdvisor/business matching is an essential element in the development of the project. The relational quality and trust that are established between the company and the advisor are also important parameters in the success of the project. The diversity of the advisors’ profiles avoids a single vision of the role of design. The consultants have been invited to meet a few times to share their experiences.

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It needs a strict and regular follow-up through the various stages of the project. The project manager has to implement monitoring and evaluation tools that can be difficult to manage.

Preparatory diagnosisIt is of course possible to appeal to the design time: for a new product, the graphics of a brand, a stand etc. For many companies, design is however an additional element to integrate into their production process. Therefore, as a first step, you should well situate its intervention (what job, what perimeter, etc.) in such a way that it supports the company’s strategy. Prior diagnosis allows to make a “state of play” design (corporate image, know how, management, strategy), and to define the overall objectives of the integration of design, before then deciding a strategy for implementation of the projects. For example, it may be more important to specify the identity of a brand before developing new products, or updating its graphic image... This diagnosis is then used to identify the “fundamentals of design” in the enterprise in order to bring out design briefs as well as elements required for evaluation and project management.

The design brief is a crucial point for business projects. The main lines are:

- General information about the company- Information about the project- Information about the product / service- Technical information- Marketing and business information- Intended usage- Sustainable development- Timing- Budget

The recruitment of the designerThe choice of a designer from a brief is a critical milestone, particularly for SMEs that never worked with a design consultant. The closed call for tenders (a few pre-selected providers list) is effective in such context: it allows to get acquainted with the experience of each of the applicants and to grant a significant but reasonable time to each... and therefore, for the company, to better sense diverse approaches of design.

Follow-upCompanies are often lost in the different support schemes available. The audit report is valuable in order to identify strengths and weaknesses, and helps in looking for additional support if needed.It is important to give the company information about regional structures that might help to get financial support, industrial property management or eco-design advice, etc. It is advisable to carry out a follow-up after the design project has started. The development of the collaboration can be difficult to manage. It may be sufficient to have an informal follow-up.

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Lessons learnt (improvement axes, areas of change…)

In setting up this kind of project, the management style and economic reality of each firm should be taken into account. SME might operate in time and resource frames that can affect the success of the project (changes in operational priorities, financial adjustment, mobilization of managers in other projects...). SME might operate in time and resource frames that can affect the success of the project (changes in operational priorities, financial adjustment, mobilization of managers in other projects...). This shows the limits of this type of intervention if it takes place in an imposed schedule.

A selection of projects that can be constrainedThe success of awareness and accompaniment is largely based on the quality of the selected projects. The company’s readiness, its capacity for implementing the design project and the proposed support must fit.

A business mentoring investmentSome managers might have interest for the project, but are not always available for meetings and follow-up. A contract and/or a financial contribution from the company should be considered in order to encourage its commitment.

Finding regional design consultanciesCompanies highlight that the experience of the advisor has been essential in the sourcing of a list of designers. At the same time, it is sometime difficult to find designer in regions with the capacity to respond to the needs of the business. This requires an in-depth study on the availability and accessibility of information concerning the regional design offer.

The challenge of design integration in the company’s cultureIf the operation has a direct effect on the project that the company has chosen to develop, building the capacity to launch another design project is uncertain. It would be interesting for this purpose to evaluate their progress during a few years. The initial audit, although modest, helps in orienting the strategy. But it is not a design/innovation strategic plan. It would be useful to help companies set up relevant indicators, particularly in terms of return on investment for the company.

CasE studiEs

Case study 1 Rototec

Case study 2 Thibault Bergeron

For other case studies Papa Pique et Maman Coud, Le Mestric, Aire Services

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design awareness and design integration programme(franCE)

ContaCt, informations

website www.apci.asso.fr

Contacts Jean Schneider [email protected]

sourCEs

APCI internal documents

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design Bulldozer(Estonia)

thE arChitECturE of thE modEl (Why, artiCulation, staKEholdErs, finanCing…)

Historical, political and strategic context (regarding design & innovation)

For most of 2012, Estonia was the only country in Europe to have an explicit design policy, the National Action Plan for Design 2012-2013 (a part of Estonian Enterprise Policy 2007-2013). The Estonian Design Centre is a key actor in the implementation of the policy through the newly introduced design support programme, the Design Bulldozer. The successful implementation of this phase of the policy will determine whether design remains on the policy agenda post 2013.

Historical contextThe road leading to the Design Action Plan, adopted by the government in January 2012, has been a long one. In 2001, there was the first indication of intent at state level for creating a design policy to promote design in Estonian enterprises. In 2002, research was commissioned from Per Mollerup to map and analyse the state of Estonian design and make recommendations for government intervention. The recommendations were discussed with the ministries, Estonian design and business communities and formulated into a paper “Estonia – Land of Design” (2003). Unfortunately, the financial means for implementation were not available and the policy was never adopted by the government.From 2003 to 2008 several developments took place to promote design and support companies in using professional design services. The latter, however, was “hidden” in different support measures available through Enterprise Estonia, the implementation body for EU structural funds in Estonia, and it proved complicated for companies and the design sector to make use of the support. Design promotion was more successful — initiatives such as Design Night and Design Year (2006-2007) became popular. The agreement to establish the Estonian Design Centre was also signed at the end of the Design Year. The Centre was formerly established in 2008.In 2009, the Creative Industries Development Programme was launched in Enterprise Estonia, which meant more stable support for the Estonian Design Centre (among other development centres in the field of creative industries, creative clusters and incubators). The Estonian Design Centre established a network of design agencies to enhance their skills and export capacity and started to develop support programmes and consultation services for companies to use design more strategically.

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design Bulldozer(Estonia)

In 2009, the design policy development process gained momentum again as an initiative of the policy-makers in the Ministry of Economic Affairs and Communications motivated by the need to understand what kind of design support measures (whether direct or indirect) already existed in different policy papers under different ministries. To bring clarity, set clearer focus and roles in the design field, the decision was lobbied to have a dedicated design strategy. Still it took another three years to reach the final document. The Design Action Plan was finally adopted at the beginning of 2012 and received support by the Minister of Economic Affairs and Communications. The downside of the process taking so long, was that due to the end of the EU financial period 2007-2013, most of the funding for the 2012-2013 had already been planned.As the current action plan works in a way as a “pilot policy” then the best outcome would be a good long term design strategy for 2014–2020 that has clear objectives and sufficient funding.

objectives of the National Action Plan for Design 2012-20131. To increase the competitiveness of Estonian companies through effective and clever application of design;2. To increase the number of strategic users of design among Estonian companies;3. To encourage the formation of a market for design services offering value added to other economic sectors in Estonia;4. To increase the independent export capability of the Estonian design services sector.The most important action of the policy is the launch of the pilot programme of strategic design — the Design Bulldozer. In addition to that, the Design Education Think Tank is planned to convene in autumn 2012 to gain a holistic view of the design education in Estonia, map and clarify the roles and activities of existing institutions and set goals for each stage in education.

Programme objectives Hopes are high for the Design Bulldozer programme to produce ten excellent cases of strategic use of design in companies from different sectors boosting their businesses and export capability as well as giving them tools and skills for innovative developments for the future.Design Bulldozer will:

– Help companies to offer new services and products based on user centered design thinking;

– Train design managers;– Create pratical design thinking tools for businesses and designers.

A report on the new products and services will be published in March-April 2014.

Alignment of the project with other support programmes (innovation, business…)? Connections to the framework of resources available to support innovation in businesses (grants, loans, vouchers, etc.)

Another concrete action is the revision of existing support programmes in Enterprise Estonia and reallocating funding for design support. The new or revised measures include:1. Extending the conditions of the innovation voucher support measures to obtain design services from designers and design studios;2. Support measure for purchasing design related advisory service (design management service) from designers and design studios design management service;3. Involving designers with international work experience in Estonian

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companies (inc. Design studios);4. Technological development, including support for product development, creating prototypes for development of new or significantly improved products or processes.

organisational structure and governance: lead partner & stake- holders/partners (roles in the project)

The Design Bulldozer pilot programme was launched by the Estonian Design Centre, the Ministry of Economic Affairs and Communications, and Enterprise Estonia in April 2012. The programme is led by Estonian Design Centre.

Funding (budget and resources)

Design Bulldozer project budget € 400,000. It is cofinanced by the European Union Structural Funds through Enterprise Estonia.

Region (geographical coverage)

Estonia

thE BEnEfiCiariEs (modalitiEs, rEquisitEs, sElECtion of providErs…)

Targets (intermediaries, SMEs, designers…)

SMEs and designers

Client selection criteria/process

N/A

Marketing: ways of recruiting (call for proposals, promotional tools, conferences, exhibitions…)

N/A

Cost and commitment for the participant

Company´s self-financing €3,000.

thE mEthodology and sErviCE ovErviEW (CollECtivE, sECtorial, individual; tools, proCEssEs, diagnostiC, matChmaKing, WorKshops, mEntoring, trainings…; lEvEls, stEps): oBjECtivE, ContEnt, targEt group, numBEr of partiCipants, timE framE, Cost, EtC.

Presentation Ten companies will work with ten design managers for 20 months to develop new services and products that are specifically tailored to the needs of people. This serves to increase the companies’ economic performance and competitiveness both in domestic and foreign markets.

Programme team N/A

External competencies taking part to the project development

Concept, Strategy and Mentoring: Richard Eisermann, Prospect, UK

design Bulldozer(Estonia)

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design Bulldozer(Estonia)

Process Phase I (Aug.– Sept. 2012): Seminars and Workshops. Visit Fiskars and Marimekko (Helsinki, Finland)Phase II (Sept.-Oct. 2012): Design AuditsPhase III (Nov. 2012): Public Presentation of the Design ProjectsPhase IV (Nov. 2012-Feb. 2014): Development of the Design ProjectsPhase V (March-April 2014): End of the Programme, Public Review and Press Conference

Nature of the intervention:– Know-how– Practical design tools– Design Audit– Strategic design thinking– Mentoring and coaching– Managing the design processes

Long term intervention: Changing corporate culture

Duration of the programme

20 months of implementing strategic design thinking in a company (August 2012 – April 2014)

After the programme… N/A

thE implEmEntation and thE dEploymEnt of thE programmE

Duration of the project August 2012 – April 2014

Phases of the programme Pilot programme

Sustainability of the project (next steps)

The successful implementation of the Design Bulldozer pilot programme will determine whether design remains on the policy agenda post 2013

Transferability of the programme (regional, national, European)

Pilot programme

Intellectual property issues (open source /tools, processes, methods)

N/A

Conception of closer collaborations with other business/innovation support programmes?

N/A

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thE Evaluation of thE programmE (aChiEvEmEnts and EffECtivEnEss)

Results Capturing the impact:– Feedback from the workshops and seminars– Feedback from the Design Audits– Presentations on developments after every 6 months– Producing a booklet on the case studies– Questionnaire the end of the programme

Partnerships issues Results and impact: General Public (businesses, universities, government institutions, policy makers, designers)

– Increased understanding of the importance and opportunities of design– Available knowledge and experience

Businesses feedbacks Results and impact: Companies– Shift in mindset and corporate culture – Understanding that design can be used to create extra value– More effective product and service development– New target markets– Long term increased profit, gross marginal and market share

Designers’ point of view Results and impact: Design Managers– Experience and practical tools– Design demand - understanding of strategic design management increases

Key programmeassets (positive aspects, good practices…)

Design Bulldozer gives businesses an excellent opportunity to:– Learn to develop innovative solutions;– Apply the tools of design thinking;– Implement developments under the guidance of experienced and

trained design managers.

Lessons learnt (improvement axes, areas of change…)

The process of finding companies and design managers is complicated and time consuming. Need to come up with objective choosing criterias and include broader spectrum of deciders (i.e. Ministry of Economic Affairs and Communications, Enterprise Estonia, representative of the companies, representatives of designers).

In order to keep up the motivation of participants:– Keep the interest of the minister of Economic Affairs and Communications;– Get constant media coverage;– Encourage constant communication and arrange open presentations.

A 15 minute documentary on 4 of the participating companies will be produced.

design Bulldozer(Estonia)

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design Bulldozer(Estonia)

ContaCt, informations

website www.disainikeskus.ee/en/designbulldozer

Contacts Jane Oblikas, Estonian Design Centre — [email protected] Kallas — [email protected] Kristiina Sipelgas, former policy analyst at the Ministry of Economic Affairs and CommunicationsDiana Tamm, former project manager at the Estonian Design Centre

sourCEs

“Designbulldozer: Design driven innovation” — Jane Oblikas, Estonian Design Centre

Estonia’s Design Action Plan 2012–2013 – SEE Platform Bulletin Issue 8 December 2012

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CIdesignnovation 9Th EuroPEAn ConfErEnCE on ThE ChAllEngES of DESIgn In EuroPEPArIS, 9 JAnuAry 2012

InTEgrATIng DESIgn In SMESThE MoST MATurE SuPPorT ACTIonS DISCuSSED by ThEIr STAkEholDErS

Task 1.1 — Survey and evaluation of design support programmes

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designnovation 9th EuropEan ConfErEnCE on thE ChallEngEs of dEsign in EuropEParis, 9 January 2012

intEgrating dEsign in smEsthE most maturE support aCtions disCussEd By thEir staKEholdErs

9: 45 welcome: Anne-Marie Boutin, President, APCI

9: 55 Presentation of the day : Jean Schneider, European project coordinator, APCI

10: 00 Supporting the integration of design in SMEs — The field experience of professional advisors

- Charlotte Andersen & Dorthe Kjerkegaard, Dansk Design Centre, Denmark- Kathryn Hughes, The Design Programme, United Kingdom- Justin Knecht, Centre for Design Innovation, Sligo, Ireland - Marie Loft, Expandera, Sweden- Aude Lore, APCI, France

12: 30 - 14: 30 Lunchbreak and networking

14: 30 The view of beneficiaries- Jørn Christensen, Chairman, Epoke A/S, Denmark - Yann-Eric Petit, Chairman, Kad, France - Ultan O’Raghallaigh, Executive Chairman, Kelsius, Ireland- Franz Thibault, CEO, Thibault-Bergeron, France

16: 45 Intervention of Eric Besson, Minister of industry, energy and the digital economy

Private visit of the “observeur du design” exhibition

This event is organized by:

with the support of:

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promoting up-and-comingdesigners Task 1.1 — Survey and evaluation of design support programmes

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promoting up-and-coming designers

INTRoDUCTIoN It makes sense to promote design at the level of the European Union, at national and at state level when the objective is to lay the foundations for the future of the creative industry by means of broad-based projects. When public funding is spent on putting in place structures, networks and generally accessible knowledge resources, this strengthens the creative industry in the long term. Targeted support benefits established designers and agencies as well as up-and-coming designers. Consequently it is very gratifying that the European Union is also involved in the area of promoting design and the creative industry. In the past two years alone, almost five million euros has been spent in promoting design as an innovation driver as part of the European Design Innovation Initiative’s Competitiveness & Innovation Programme (CIP).

It also makes sense for the public sector to initiate and promote projects that are on the interface between research and design promotion. As part of these projects, scientists, designers, institutes and companies can work together to carry out research and analysis into new technological, cultural or social developments and to translate these into design concepts and products so that the findings can be incorporated into our product world in the medium and long term.

STATE CoMPETITIoNS To PRoMoTE UP-AND-CoMING DESIGNERS

A more differentiated approach is required to assess the promotion of design using design competitions organised by the public sector. Since the end of the 1980s and the beginning of the 1990s, there has been an absolute explosion in the number of design competitions held at state level in Germany. There is scarcely a state in Germany that did not invest in its own competition

— always with the aim of keeping local designers and companies in that state and raising the awareness of small and medium-sized companies for the topic of design. Taxpayers’ money was used to promote design in a way that ultimately did not prove sustainable in most cases.

In 1987, for example, what was then North Rhine Westphalia’s Ministry for Economics and SMEs, Energy and Transport inaugurated the ‘Designpreis NRW’. The aim was to use the competition, which took place every two years, to empha-sise “the special significance of industrial design in competition in business”. According to the organiser, the design prize was also to provide a welcome opportunity for small and medium-sized companies in particular to shape the future and help consumers to hone their skills in recognising good design.

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promoting up-and-coming designers

However, the two-yearly intervals at which the competition was held ultimately meant that it failed to gain influence and achieve a lasting impact. Its focus on a very specific business region prevented the competition from making a name for itself across state borders. And in a globalised world, far-sighted designers and companies are more interested in reaching a larger audience and making their name known to potential partners and clients in particular. The competition was held for the last time in 2009.

A slightly different view should be taken of regional or state involvement in the targeted promotion of the region or state’s own up-and-coming talent. With the right strategy and a lot of continuity, competitions can gain a reputation as a stepping stone for talented young people in the creative industry. The Bayerische Staatspreis für Nachwuchsdesigner (Bavarian state prize for up-and-coming designers) is one of the few state-sponsored competitions to succeed in doing this. This competition has also been in existence since 1987 and is held by the Bavarian State Ministry for Economics, Infrastructure, Transport and Technology. The ministry sees the competition as an “elementary component” of its SME policy. According to the organiser:

“Bavaria was the first German state to introduce a design prize, with the aim of expanding “Bavaria as a location for technology into an internationally recognised location for innovation and design in the longer term”, promoting competitiveness amongst SMEs and securing the Free State of Bavaria an unrivalled position in the global competition for locations in the long term.” The prizes for the up-and-coming designers come with prize money of EUR 7,500 — a seldom example of the successful promotion of up-and-coming designers using public sector funding.

By contrast, the vast majority of design competitions organised using public funding are one-off, project or topic-related events and competitions that offer a short-term benefit to a small group but that have no real lasting impact. They do not have a sufficiently broad base and are not well enough established in the world of business in order to ensure the contacts to industry that are so important in this context. They do not offer the necessary continuity to secure the interest of business on a long-term basis. As a result, the public funding is used for a socio-cultural purpose but is not actually invested in a meaningful way from an economic perspective.

PRoMoTING DESIGN THRoUGH PRIvATELy FUNDED INDUSTRy CoMPETITIoNS

The situation is quite different for some competitions that are funded by the private sector and organised for a specific industry in the context of trade fairs and exhibitions. These often serve as a beacon in the respective industry, shifting design-oriented manufacturers and suppliers into the spotlight. However, they also have little influence on the promotion of up-and-coming designers.

Companies promoting up-and-coming designers

– the example of the BraunPrize

All of this means that there is a need for companies to get involved. Entrepreneurs have to realise their social responsibility in this area and get involved themselves when it comes to promoting design. And this involvement exists in the form of competitions organised by private industry that are also dedicated to promoting up-and-coming designers and giving them a forum.

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promoting up-and-coming designers

Such competitions promote young designers in a very targeted way by giving them the possibility to prove their creative potential before the eyes of specialists and the design-aware public.

The BraunPrize is a good example of successful promotion of up-and-coming designers at an international level. It was established in 1968 as Germany’s first international competition to promote the work of young designers. In the decades that followed, it proved that even a company itself can actively promote design and thus meet the socio-cultural responsibility that it perceives itself to have. In the words of the organiser: “The objective of the BraunPrize is to promote the work of young and established designers from all over the world, to value the work of design schools and to help develop a greater appreciation of the factors and criteria which make for good product design. The BraunPrize serves to make the ingenuity and creativity of young industrial designers accessible to the public and to provide a link between designers and industry or potential clients.” With its competition, the company thus made a name for itself as an important promoter of young talent.

The red dot method Also financed and organised by the private sector is the promotion of young talents in the red dot design award. The red dot design award promotes up-and-coming designers with all its three competitions: the “red dot award: design concept”, “red dot award: communication design” and “red dot award: product design”. Although each competition takes a different form, the award never loses sight of the different needs of the respective target group. All three competitions have the same approach, however, which is to give up-and-coming designers (including students) the opportunity to measure themselves directly against professionals and well-known designers, design offices, agencies, institutions and companies — all at an international level. This makes the red dot design award unique by comparison with most other competitions. The red dot design award is awarded solely on the basis of the quality of the ideas, works and products, as the entries submitted by the new designers are not marked as such for the jury beforehand. Instead, they have to stand up in a direct comparison with all other pieces of work. This makes for a realistic result. It also gives the prize winners proof that their work was considered to be good and worthy of attention by an independent jury — at a professional design level.

The up-and-coming designers who win a red dot in one of the three competitions benefit considerably and primarily from the award’s high level of international recognition. Not only designers and insiders are familiar with the red dot. It is also well known to companies, institutions and many consumers. All those who win a red dot meet a high standard of quality. Consequently an award like this one does in fact open doors for young designers, particularly if they are based in regions that are not considered to be design hot spots. One example of this is the Bulgarian product designer Ilian Milinov. He sees the competition as an opportunity to obtain objective confirmation of the quality of his prototypes, something which he says is important both for himself and his trust in his own work and for his customers: “My customers take these awards very seriously. The investors are impressed by my two

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wins in the red dot design award and that also helps when I speak to them about other projects.” Accordingly, there was a great deal of interest from some companies in his two award-winning concepts “Hug” and “Hang Stool”. Both of these are expected to go into production before the end of this year.

Recognising the potential of ideas – promoting up-and-coming designers with the “red dot award: design concept”

As the example of Ilian Milinov shows, the “red dot award: design concept” is for products or works that are not yet finished; it is where ideas, prototypes and concepts are scrutinised. Design experts with different national and cultural backgrounds approach each concept without any preconceptions, examining it and comparing it with other entries. Particularly in markets subject to intense competition, taking part in a competition like this in a very early stage of product development can give an important indication of whether a student, a young designer or a start-up company is moving in the right strategic direction with the idea. The “red dot award: design concept” gives them the chance to test their ideas and prototypes on the jury and to find out if they are understood and whether their idea could be a success. This is because concepts that have no possibility whatsoever of being realised at a later stage do not win an award. Conversely this does not mean that all of the concepts will be implemented without any changes; it simply means that the jury recognises their potential. And this in turn allows the prize winners to approach potential investors, crowdfunding platforms or producers with a whole different confidence, because they can present their award-winning idea and fight for its realisation.

The potential longevity of the impact of the “red dot award: design concept” is evident from the example of the German designer Arman Emami. He won a “red dot: best of the best” with his creative design concept for a USB clip in 2009. Scarcely a year later, the product was already in series production. He submitted it for the “red dot award: product design” and won over the jury once again. He again won the “red dot: best of the best” award – this time for his finished product. Arman Emami: “We were already in touch with the potential manufacturers even before winning the first award. Naturally, winning the “red dot award: design concept” made it easier for us and convinced the investors even more. This is an indication of how important competitions like this are as well as the role they play in marketing and realising an idea. The impartial and objective assessment by the jury of experts provides a confirmation that is unbiased and definitely carries more weight than your own interpretation.” Today, Emami Design is top of the red dot design ranking for design concepts in companies.

Another example that has less to do with purely commercial success and serves more as proof of how not-for-profit concepts can also benefit from winning an award is the “United Bottles” concept. This is a concept for an innovative water bottle that is transformed into a building element by changing its design purpose. Designed for use in refugee regions, for example, the empty PET bottles can be removed from the recycling cycle if necessary and brought to the respective crisis region. This idea from the young team

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promoting up-and-coming designers

from Instant Architects in Switzerland won over the jury for the “red dot award: design concept” twice. Not only was it awarded a “red dot: best of the best”, it also received the Lanxess Prize, which comes with prize money of USD 7,500 to support realisation of the concept. The award ensured that the project met with huge global media resonance and was presented to the public in several exhibitions. Instant Architects used the prize money to finance a new series of prototypes that allowed them to arouse the interest of major partners in industry. Several non-governmental organisations are currently endeavouring to realise the idea. To this end, United Bottles are to be combined with a water purifier and a corresponding display device in order to raise their efficiency even further.

These success stories show that the competition works and provides up-and-coming designers with an international platform where they can demonstrate their skills and present their ideas to the world.

Promoting up-and-coming designers with the “red dot award: communication design”

The “red dot award: communication design” has also been promoting young talent in a targeted manner since 1999. Students and young designers benefit from reduced registration fees that make it easier for them to take part in the competition. The award offers young designers at the very beginning of their professional career the chance to gauge their creative ability against the work of professionals and to set themselves apart from the rest by winning an award. During the actual judging phase, their work is compared directly with the work of established designers and agencies and is rated against these. Junior works that win a “red dot: best of the best” in their respective category are then viewed once again in a final round involving all of the jury members. The winner of the “red dot: junior prize” is selected from this group. This title of honour comes with a prize money of EUR 10,000, which helps when starting out on the career path and gives scope for further creative achievements.

Promoting up-and-coming designers with the “red dot award: product design”

The “red dot award: product design” promotes up-and-coming designers in a slightly different way. Here, too, young creatives have the chance to measure themselves against renowned designers from all over the world. During the registration phase there is a period of 24 hours during which inte-rested parties who graduated within the past five years can apply for one of a total of 50 free places in the competition via the red dot website. Because the number of applicants always exceeds 50, lots are drawn to determine which participants go forward to the competition.In addition to free entry to the competition, the young designers receive support in the form of an extensive winner’s package which is also free if they win an award. In 2012, more than 200 young designers applied for a place in the competition. One of the applicants was Mathias Hahn, a product designer living in London. He went on to become the first ‘young professional’ in the product design competition to win a “red dot: best of the best”, for his table and floor lamp “Jinn”.

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In the case of all three competitions, the recognition provides the basis for young designers to approach companies, investors or target employers with confidence, because they can set themselves apart from competitors thanks to winning an award in one of the largest and best-known design competitions. The competition opens up opportunities that they may never have had if they had not won an award. A first meeting with decision makers from the world of business and reputable designers already takes place as part of the respective red dot award ceremony.

PUBLIC-SECToR vERSUS PRIvATE-SECToR INvoLvEMENT IN CoMPETITIoNS

– CoNCLUSIoN

To sum up, it can be said that promoting young designers with the help of competitions can be very effective and open up major opportunities for up-and-coming creatives. The prerequisite for a certain degree of sustainability of such competitions and awards is that the organiser always has to have close ties to industry. An award that nobody is familiar with except a small group of elite is an award for its own sake. Only in a tiny number of caseswill it have a positive impact on the development and the career of a young and talented designer. Only a few public-sector authorities that initiate such competitions and fund them with taxpayers’ money have the necessary structures, industry and business contacts to be more than just a short-term measure with short reach.

Competitions need continuity, strong networks and a long-term communication strategy so that they can someday really achieve their goal of effective and lasting promotion of the creatives of the future.

Examples like the BraunPrize or the red dot design award show that such state involvement is not at all necessary. This is because they are proof that there is already a high degree of entrepreneurial involvement in promoting up-and-coming designers through the medium of competitions. And at least the most important of these privately funded competitions already offer everything that is needed to help young designers to achieve a break-through: a recognised name, a good reputation, contacts and presentation opportunities as well as a high level of continuity. All of this is attributable to the fact that they are market driven. Without public-sector grants, the organisers of such competitions have to use their competitions to provide proof of their quality standard and raise their relevance year after year. Above all else, young designers thus benefit from a high level of recognition of the competition and from its proximity to the market. This is because what start-ups need in the field of design is objective proof of their abilities in order to convince potential employers or capital providers, as well as the right contacts. Any promotional measures tailored to young creatives have to take this into account. For this reason, private-sector promotion of young designers is not restricted to one-off financial support for individual projects, but also involves putting a promising young designer in a position

— through winning an award and the related subsequent value added chain — to take control of his or her next career move.

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research on current smE competitiveness supporting programmes and strategies in Bulgaria

The following policy and programme documents have been screened for relevance of supporting innovation through design:

– National Innovation Strategy 2006 (no update currently available);– National Development Programme 2020;– National Reforms Programme 2011-2015;– National Strategy for the Creative Industries;– Regional Innovation Strategy of North-West and North Central Region;– Regional Innovation Strategy of North-East Region;– Regional Innovation Strategy of South-West Region;– Regional Innovation Strategy of South Central Region;– Regional Innovation Strategy for South-East Region;–Regional Innovation Strategy of Sofia-city;– Operational Programme “Increasing the Competitiveness of the Bulgarian Economy (OP “Competitiveness”).

Findings Innovation through design is widely unsupported, not even mentioned in any of these documents. Strategies for design innovation do not exist in Bulgaria on any level (national, regional or municipal). The only paper referring to design is the National Strategy on Creative Industries, where design is included in the list of cultural and creative industries, targeted by the Strategy. However, the Strategy still exists only on paper and is not properly implemented. Current innovation strategies, policies and programmes supporting innovation are focused only on technological research and development, technological transfer and purely technological innovation. Design is not referred to or linked even to these types of activities, even though it is an integral part of the development of new products and services. The only exception is the RIS of Sofia-city, where it is mentioned that the development of “knowledge-intensive services” should be supported. It is also mentioned that the registration of new patents, utility models, trademarks and designs in the National Patent Office and the Community IPR Protection Offices should be supported through EU funds. However, EU funds for such activities were never envisaged in the current programming period 2007-2013 in Bulgaria. Design companies are excluded from the list of possible beneficiaries under OP

“Competitiveness” and no funds are provided to conventional companies for design-related innovation activities but only for technological modernisation and technological R&D.

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primary research on opinion of business supporting organizations(services providers)

The following organizations have been asked for opinion:– Bulgarian Industrial Association – Bulgarian Chamber of Commerce and Industry– Joint Innovation Centre of the Bulgarian Academy of Sciences– Chamber of Commerce and Industry – Vratsa

The first two organizations are the biggest national business supporting membership organisations, part of the tripartite dialogue. Situated in Sofia, they are operating on a national scale through regional offices. However, their headquarters location and main operations office is in the most economically developed region of Bulgaria. The Bulgarian Academy of Sciences is the oldest and the main national scientific and research institution in Bulgaria and the main reference point for knowledge transfer. The Chamber of Commerce in the city of Vratsa is situated in the region with the lowest economic results in Bulgaria, in order to make a comparison of differences, if existent. Results First of all, these organisations have been asked to point out their main association when hearing the word “design”. Here are the answers, combined in groups, as the respondents have given more than one answer:

– Layout, presentation– Project, painting, drawing, plan, sketch– Logo– Interesting, unusual, futurological– Something new and modern– Product, interior, website, furniture, home– Processing, projecting, development, imaging

This proved to be a good experiment about the perception of design by some of the most experienced business services providers in Bulgaria. The most interesting fact is that nobody ever mentioned the word “innovation”, and the association with something modern and new was provided by only two of the organisations, but not in the first place.

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The organisations confirmed that they provide the following services, which in some aspects can be related to design:

– Consultations, surveys, gathering and providing of information in support of clients to develop new products;

– Support in development of business plans and projects for funding for development of new products;

– Support in finding partners for application of scientific research results;– Specific mentoring services for development of patents and utility models;– Organisation of trainings related to intellectual property protection;– Auditing of the innovation potential of the companies and introduction of innovation within the companies.

While the organisations located in Sofia offer more complex services, the colleagues in Vratsa provide the basic level of services: more general information and consultations.

The organisations pointed out the following problems in development of design-related service package:

– Clients seem to not show interest in development of product life-cycle management and in design-related services as a whole

– The vision of the organisation is focused on development of other types of services, purely related to business analysis and match-making for example

– There is necessity of additional training of the experts in providing services related to development of new products and services

– The costs for development of a more sophisticated package of design-related services are regarded as too high

The organisations pointed out that a service package for “conventional” businesses in support of innovation through design should contain:

– Conduction of a design audit of the company;– Consultations for the development and understanding of a design brief;– Consultations on methodologies and criteria for evaluation of design solutions;– Internal trainings in integration of design within the overall company operations;– Internal trainings in design management;– Provision of funding for development and implementation of design projects within the company.

One organisation added as well that it would be good to include also the organisation of creative workshops gathering companies and designers together.

Regarding designers, design studios and design companies, the organisations pointed out that a services package should contain:

– Business consultations;– Consultations on how to work with a client on a specific design project;– Consultations and mentoring on preparation for specialized fairs and exhibitions;– Trainings in pricing, communication, successful presentation of a design idea;– Providing of funding for development of design models and/or design ideas;– Organisation of creative workshops among companies and designers.

One organisation stressed out that trainings in pricing and mentoring to designers on preparation for trade fairs is important.

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good practice examples

In spite of lacking support for design in Bulgaria, good practice examples on how design adds value and supports regional economic growth do exist and need to be further expanded, developed and multiplied on a wider scale. A systematic strategic approach is needed for including such initiatives in the new regional and national innovation and regional development strategies and policies. We have also featured in our report two examples from Estonia, showing regional authorities support to creative industries as part of their regional development and innovation strategies.

Bulgaria

Business Incubator JUNIoR

Being the organisation establishing the first business incubator in Bulgaria, the Business Support Centre for SMEs-Ruse has incubated creative companies among other businesses in conventional incubators, thus reaching to the understanding that creative businesses need a more specialized space and tailor-made services.

The initiative for development of a Business Incubator JUNIOR has been under- taken by the Industrial Design Department of Ruse University in cooperation with the Business Support Centre for Small and Medium Enterprises-Ruse. The idea is to develop a permanent virtual network for market oriented training, mentoring and self-training of young entrepreneurs leading to building of own business or to creative professional promotion in a real market environment.

The initiative started in 2002 and continues its successful operation to date. The programme of Business Incubator JUNIOR includes:1. Development of the “Creative project of my life”;2. Development of an authorship product, service, intellectual solution, including patenting of intellectual property;3. My market realization;4. Scientific publication on a creative topic.

Results:– Number of trained young people – 61;– Number of students obtaining a degree – 40;– Number of developed new creative solutions – 31;

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– Number of movies created – 4;– Number of patent requests – 3;– Number of developed online networks relevant to design – 2.

These results are important taking into account the low innovation indexof the region on national scale, not to mention at an EU level.

Problems:The initiative has never received any funding and has been supported only by own resources of Ruse University and Business Support Centre for Small and Medium Enterprises-Ruse. Thus, due to its limited scale, it is local and not multiplied. Moreover, greater results can be obtained by possible expanding the initiative in terms of:

– Establishment of a fund for supporting creative start-ups of youngsters;– Development of a strategy for using the initiative as an incubator for ideas;

on improvement of living environment and finding solutions to urban problems;–Development of a strategy of the University to expand the initiative to a

horizontal programme, including teams of design students and management students, for example;

– Multiplication of the initiative on a national and transnational scale.

Development and Implementation of the Descartes Creativity and Innovation System

The system has been developed by Prof. Nikola Orloev of Ruse University and has been introduced in the education process of students in different studies as a tool for stimulating the effective creative thinking. Its components include:

– Egocentric model of effective creative innovative thinking;– Complex model for development of new and improved products, services

and intellectual solutions;– Visual and verbal imaging for communicating and presenting creative ideas,

projects and strategies.

The Descartes System is a result of analysis of “Thinkers 50” (the most influential contemporary world thinkers) concepts related to creativity, innovation, thinking and development of a knowledge-based economy. All didactic tools and methodologies for the use of the System have been developed and are in use in Ruse University.

Problems:Again the lack of funding for multiplication and broader strategic introduction of the System for various groups of learners is the major problem. Moreover, the System should be introduced not only to university students but to companies and public servants as well.

Urban media for culture

This is a project of the Transformatori Association, supported by the Europe 2012 Programme of Sofia Municipality. The aim of the project is to transform the public space by introducing media infrastructure in an urban environment for promotion of cultural events and organisations in Sofia. It should develop new or improve existing elements of the urban design in order to establish an overall cultural and creative image of Sofia.A laboratory for urban design has been organised in order to select strategic solutions through discussions of prototypes, ideas and methods for impro-vement of the urban design. This initiative is one of the very few design-related innovation ideas supporting the regional development having the support and funding of a local authority.

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Estonia

Tallinn Creative Incubator

Tallinn Creative Incubator is managed by the Business Support and Credit Management Foundation that has been founded by Tallinn City Council in 2006. The Creative Incubator opened in 2009 at the premises of a former administrative building of a main fashion manufacturer in Tallinn. The total incubation area is 1100 sq.m. consisting of 23 studios and office spaces of 10-60 sq.m. The incubator is focused on the following design-disciplines: fashion design, web design, graphic design, applied arts, architecture and audio-visual media including films.

The incubator provides the following services to its tenants for a certain month fee:

– Premises;– Consultations and mentoring;– Common spaces and creative labs;– Organisation of presentations to conventional businesses;– Internationalization services;– Mentoring and small grants up to 2500 EUR during incubation

time to start export activities;– Joint marketing;– A special fashion-boutique to sell the tenant`s products in „studio way“;

The incubator’s management pointed out that it is easier and more effective to focus on certain areas; it would be complicated to offer services the same time for young a musician and a product designer. It is also important to cooperate with all business supporting organisations in the region regularly.

Strengths of the provided support:– Hands-on experience of entrepreneurship and practice;– Access to business services and mentoring;– Synergy derived from in-house connections (raising own business by being each other’s customers);

– Joint marketing opportunities, networking events;

weaknesses:– “Learned helplessness” in the “real business world” as a possible drawback;– Big difficulties in communicating to the public authorities the importance

of creative industries (respectively non-technological innovation) for the economic development of the region.

At the end Tallinn Creative Incubator is very popular and recognized by entrepreneurs as effective and supportive, with about 85% of incubated businesses alive after 3 years.

Creative Centre in Tartu Tartu Centre for Creative Industries (TCCI) was founded on May 14th, 2009 by the Tartu City Council.TCCI operates as the coordinator of creative industries in Tartu and South Estonia by providing creative industries related information and training, legal and economic consulting for creative entrepreneurs, as well as business incubation (and pre- and post- incubation) services.TCCI is located in three buildings in the centre of Tartu. The first house was opened in August 2009 as a creative businesses incubator renting low-budget office spaces for cultural and creative start-ups. The second and the third building with more office space and a conference room were opened in 2011 and 2012. Behind the complex there is a large open-air space that will be developed into a park/picnic area with a concert stage and a sculpture garden.

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TCCI provides office space for up to 40 companies. There is a cafeteria, arts exhibitions and shops (Estonian design, vintage clothes, and ecological food) housed in the premises of the TCCI.

There are 2 kinds of incubation:1. Company rents rooms and receives business consultation, trainings, study trips, joint marketing - monthly fee 32 euros + VAT; 2. Company does not rent rooms but receives business consultation, trai-nings, study trips, joint marketing - monthly fee 20 euros + VAT. The management of the Centre have set goals that all companies should try to achieve (e.g. first employee by the end of the 1st year in incubation). However, not achieving the goals set by the centre does not automatically mean that the company has to leave – each case is treated separately. Although, raising awareness is a daily activity of the Centre, the level of aware- ness about the importance of creative industries remains relatively low both among creatives themselves as well as among people active in more

“traditional” branches of economy.

Tallinn Design Map Tallinn Design Map is a good example of strategically incorporating and showcasing design as a part of the overall city tourist product. Tallinn Design Map leads the way to good Estonian design both for tourists and locals. Distinguishably designed public interiors and places that exhibit and sell Estonian design have been put on this map. The choice of places on the map is very diverse — on the map you’ll find special places for dining, shopping, hotels, exhibitions and exciting urban environments.

Tallinn Design Map is a city map where the spots related to design are marked with yellow numbers. On the backside of the map you’ll find a short description about each object with the exact address and opening hours.In order to make those places easy to find, there are distinctive yellow stickers on the windows of the places.

Each map is in two combined languages — map is available in Estonian-English, Russian-German, Finnish-Swedish and Japanese-English. Everyone interes-ted can find this free map from local tourist information centres, Estonian Design Centre and from the places marked on the map.The Design Map first reached the public in 2006 as part of the Estonian Academy of Arts Design Year project. Since 2008 the design map is published by the Estonian Design Centre.

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overview of the use of design in finnish companies Task 1.1 — Survey and evaluation of design support programmes

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overview of the use of design in finnish companies

Summary of findings To gain an understanding on the situation regarding design in the region, we have discussed with representatives of some of the relevant stakehol-ders in Lahti. These people include:

– Jorma Lehtonen and Pekka Koivisto, Design Foundation Finland (http://www.designfoundation.di/fi/en)

– Eero Miettinen, Professor at Aalto University, School of Arts, design and Architecture (http://arts.aalto.fi/en/)

– Riikka Salokannel, Development director at Lahti science and Business park (http://www.ladec.fi/en)

– Kristian Keinänen, Lahti University of Applied Sciences, Institute of design and Fine Arts (http://www.lamk.fi/english/design/Sivut/default.aspx)

– Isko Lappalainen, iam design (http://www.iamdesign.fi/)

These people have done extensive work on the field of design in the region, both doing the actual design work and supporting the use of design, including the development of regional design strategy, activation project to increase the use of design in small and medium sized companies and consultation. The interviews were unstructured discussions, which they were loosely guided with a Power Point presentation explaining the REDI project. Usually the interviewees first explained what they have done regarding design, and then we moved on to discuss what REDI project is about and how it should proceed in interviewees opinion. We are still planning to extend our understanding by interviewing the following people and organizations:

– Tuuli Ternäs, Valopalkki (http://www.valopalkki.fi/). This company just finished their first collaboration with a designer.

– Heimo Rosenlund, Marketing, Pedro (http://www.pedro.fi/en/index.php). This company has a long history of using design.

– Tapio Anttila, Tapio Anttila Design (http://www.tapioanttila.com/)–Alastair Fuad-Luke, Professor at Aalto University, Scool of Arts, design

and Architecture (http:// http://arts.aalto.fi/en/). Important influencer in all things concerning design in the region.

– Industrial Counsellor Petri Lehto and/or Inspector General Katri Lehtonen, ministry of Employment and Economy (http://www.tem.fi/index.phtml?l=en). The ministry will launch a national design strategy for Centres of economic Development, Transport and Environment (ELY-Centre – http://www.ely-keskus.fi/en/web/ely-en/).

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overview of the use of design in finnish companies

– Lappeenranta ELY-Centre– WIRMA, Lappeenranta Business and Innovation Services

(http://www.businessinnovations.fi/en/Front_Page.iw3)– Some SME(s) in Lappeenranta

What we have found out so far is shortly summarized next.

Background Use of design is not very common in Finnish companies. According to Design Foundation Finland, only around 10 % of companies use design at all, and in small and medium sized companies the number is probably even smaller. Because our university is located in multiple cities, we have two good options on where to build and test the new service: Lahti, where our research unit is located, and Lappeenranta, where the main campus is based. Regarding design the two cities are very different. In Lahti design has been a big topic for years. There are around half a dozen organizations that are already promoting design. More than 160 companies describe themselves as offering design, although only a handful of them offer product, service or other innovation related services. The city of Lahti just launched a new design strategy•. Still, only 5-10 bigger companies are really embracing design.

In contrast design is almost absent in Lappeenranta. The industry has traditionally been dominated by wood and paper industries. Only recently, partly as a result of increased tourism from Russia, the situation has become more favourable for design. To our knowledge there are not many design companies in the city and not much effort has been put on promoting design by the public organizations, either. This assumption must still be confirmed, but if it holds, Lappeenranta would seem more fruitful target for the effort put forward under REDI project than Lahti.

At the moment ELY-centres seem to be the most promising intermediary to host a new design-related service. The Ministry of Employment and Economy will launch a new design strategy for the ELY-centres in January. ELY-centres hosted a service called Design Start, which allowed SMEs to purchase their first design project at reduced price and risks. For some reason the service was discontinued a few years back.

Identified problems and needs

Main purpose for discussions with various stakeholders has been the identification of problems and needs the new service could solve. According to representatives of intermediary organizations, the main issue in Lahti is the creation of co-design ecosystem, where the existing design companies and other actors on the design field could collaborate more effectively as a network. Such a network could make offers of bigger projects compared to individual, generally small design companies. Although an attractive idea, the creation of networked design ecosystem is going to be challenging and many unanswered questions remain: how the network should actually work? Who does the selling and who writes the bills? How to deal with the conflict between competition and collaboration? Furthermore, it might be that designers already have their own, personal networks they prefer to rely on when working on bigger projects.

• http://www.lahtisbp.fi/easydata/customers/lahti/files/cleandesigncenter/lahdendesignstrategia_2012-2015.pdf

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overview of the use of design in finnish companies

SMEs have three main issues. 1) The SMEs do not have the necessary skills and knowledge to buy design services. 2) As a result, they often end up having bad experiences when they try to use design services. After that happens it is very difficult for any designer to approach the company again. Finally, 3) the perceived risks associated with buying design tend to be high due to difficulty of controlling quality before the purchase and lack of understanding of design process. Supporting funding or other such ‘carrots’ might be needed to reduce the perceived risk.

For designers the main issue seems to be getting the first concrete project from a new customer. After that, if the first project is executed satisfactorily, it is relatively easy to continue the business relationship with new projects. The difficulty of the first sale is in part a result of reluctance of SMEs to try design, for the reasons described above. The issue is magnified, because designers rarely are marketers, and may lack skills in selling services in business-to-business context.

Possible solutions At the moment the most promising idea for the new service is providing good first design experiences for SMEs that are ‘design virgins’. This idea came up independently in three out of the five discussions we’ve had with the stakeholders so far. The service would offer a successful first small-scale design project for SMEs with reduced risk, possibly with funding sup-port, and help designers get the much-needed first sale from companies new to design.

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IB5 regional french projects Task 1.2 — Evaluation of some regional innovation support schemes (CCIb)

The following examples show the strong and the weak points of regional design support initiatives.

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3 pod

Presentation This transregional programme aims at supporting SMEs in their design projects, and coordinate a community of designers. 8 partners in France and Belgium are involved in this INTERREG project, which covers 3 objectives:

1. Facilitating the integration of design and innovation within enterprises: SMEs and business managers can access a full package of services: information, advice, technical and financial support.

2. Supporting project managers and professional designers in the development of their activity: 3pod proposes a wide range of tools: networking, thematic seminars, training, promotion…

3. Developing a platform toward professionals and users of design: http://www.3pod.eu. The platform exists for:

– Registering designers;– Promoting success stories, case studies…;– Proposing methods, maps, directories etc.

The strong points – Addressing the subject through specific sectors, with the help and partner- ships of federations, clusters;

– A strong network of actors (designers, companies, business support organisations);

– Efficient communication tools and good visibility;– A 2 step individual approach (diagnosis / project).

The weak points – The word “design” is still misunderstood;– Dependent of public funding (INTERREG);– 20% of businesses leave the action because of a lack of involvement

and change in priorities;– Around 10 projects / year;– The whole programme relies on a single person.

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l’incubateurdesign

Presentation The design incubator has been initiated by the Innovation Agency of Aquitaine within a global programme called Prospective design. The incubator is thought as a Design process, aiming at the emergence of innovation leverages and the control of the different stages of a project. The methodology is “user focused” and based on design and marketing competences. For the company the objective is to answer the following question: “what added value is brought to the user? And how the value can be expressed?”

Several tools are being used:– Positionnement design®: covers the scoping of the project (vision, econo mic aspects etc.);

– Design Mix®: it is linked to technology, usability, ergonomics, perceived quality, performance…

– Prospective Design®: objectives that the company wants to turn into factors of differentiation.

The strong points – A comprehensive yet customised methodology;– A strong link between collective action and individual support;– A team of complementary skills available in the Agency.

The weak points – Dependent of public funding (100% of the diagnosis and 75% of the cost of the designer);

– Number of projects: 10 companies / year (limited resources);– The connection with other innovation advisors is loose (CCI, “technoparks” etc.);– No financial and business model approach.

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parcoursdu design

Presentation The “Parcours du Design” and its awareness events (workshops and exhibition) aim at matching designers and businesses, by demonstrating the necessity to use design as a mean for more innovation and competitiveness.

The expected results were to:– Find new concepts– Adapt to a new approach– Create a new identity– Adapt products– Transform the philosophy of the company– Look for more innovation

The programme entails a long-term investment by the company in order to:– Identify needs and control the production– Define a scalable strategy– Include a marketing approach– Build a constructive approach to ensure sustainability

The initiative is carried out by a service provider (marketing, R&D, organization…) picked up in a short list, subsidised at 50% (6,000€ max) in 2 steps:Stage 1: briefStage 2: prototype and industrialization of a product

The strong points – An approach focused on the strategy of the business;– At the beginning, only retailers could attend to the programme;– Links the promotion of design and project support.

The weak points – Dependent of public funding (INTERREG);– Brief written by the designer, whereas it should be done by a third party to have an objective view of the project;

– The programme depends on the good will of the regional authorities.

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dEmo: design Entreprises et marketing opérationnel

Presentation The project DEMO (Design Entreprises et Marketing Opérationnel) could have been a successful project. Unfortunately it did not run for different reasons.

The idea came within a call for proposal from the Ministry of Industry. The objective was to associate students in marketing and in design (a “dream team”) with a senior designer as a coach, to supervise a design project in a business. Designers usually lack marketing expertise, so that is why the team approach looked promising.

The target was SMEs with more than 20 employees, e.g. the critical size to have concrete projects. The timeframe was a 6 month “fixed” period starting with the academic year. The cost charged to the company was 5,000€ to carry out a complete design project.

In the end, only seven companies accepted to join the pilot programme despite lots of communication efforts: the action was cancelled.

The strong points – A comprehensive approach including marketing and design;– Integration of “in-house” trainees focused on the project within the company;– A senior designer to coach them.

The weak points – The project period was fixed;– The cost was still high even if the time spent in the company was significant;– Interested companies willing to pay prefer to hire a consultancy ready to work on demand at any time;

– Less interested companies do not want to invest time and money.

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iddil:innovation and design in the tourism industry

Presentation The programme was launched in 2009 with a co-financing from the Ministry of Industry and the Regional Council of Brittany. The main objective was to set up a cluster of actors from the tourism sector, industrial companies and designers, willing to work on collaborative projects.

3 themes have been defined: housing, boats, services. From the different groups, one failed (no prototype); one is still underway and should be industrialized soon; one product has been put on the market (http://www.aquashell.fr/).

The second period of IDDIL started in 2012, but it is now more focused on individual projects. The idea is to help the company to clarify its vision on future new products and services using different marketing and creativity methods (Blue Ocean, ASIT…). A designer is then asked to propose sketches to the client.

The strong points – An approach using marketing and creativity sessions;– An application of design in a sector that is not used to innovate;– A cluster of partners willing to work together.

The weak points – The difficulty to address intellectual property rights when different companies cooperate on an idea;

– The financial evaluation of the project is not studied;– Some companies withdrew during the project;– The limited motivation of participants is time consuming.

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Redi is a project managed by 5 partners active in the �eld of design and innovation. Redi is co-funded by the European Union, under the European Design Innovation Initiative

Partners