The Role of Design

Erik Roscam Abbing MSc , Dr. Rik Riezebos & Ruth I. Delfgaauw

Index Introduction Theory/model Cases

- Mexx - Nomad - Porsche - Trespa - Vacu Vin - WE

Conclusions Discussion/recommendation About the authors

Introduction What is design and what is its role in a company? How is design related to the fields surrounding it? And is design a driving force or an effect of other drivers? These and other questions are the topic of this research. This research starts with a situational model. The model positions design as a bridge between brand and product on the one hand and market and organisation on the other hand. The model

evolved from a discussion between Rik Riezebos, managing director of EURIB and Erik Roscam Abbing, founder of Zilver brand driven innovation. (See about the authors in the final chapter ) The goal of this research is to develop insights that can be used as input for the Master of Design Management programme at EURIB whose goal it is to bring design management to a higher level within companies. Focusing on building enterprises through means of 'design leadership’, this master looks at design from a

managerial perspective and tries to understand the role of design in business surroundings.

Figure 1 The Role of Design

To create a better notion of this field, an exploratory research was done, both in literature and in practise. In literature leading design management, branding and product innovation authors were critically assessed. In practise, a number of company representatives involved in branding, design and product innovation were interviewed. Based on the cases, conclusions regarding the model are drawn, leading to a final reflection on the topic by the author. Theory and The model The model, that formed the base for this research is shown in figure[2]. The model sets out to explain a company’s focus and to shed light on the role design plays with regards to this focus. Based on former research and experience, two discriminating positioning criteria are chosen:

1. is the company focussed inward (on its organisation) or outward (on its market) ? 2. is the company focussed on its offering (product or service) or on its brand?

The initial hypothesis is threefold:

1. the way design is used within the company depends on its position in the model. 2. the most fruitful position for a company to be is in the middle, at the crossing of the

model’s two axes. 3. companies can use design to change their position in the model

Before discussing the model a few definitions of design are given.

Figure 2 The Role of Design

Definitions Design

− Design is the conscious decision – making process by which information (an idea) is transformed into an outcome, either tangible (a product) or intangible (a service). (Stamm, 2004)

− Design is an activity involving a wide range spectrum of professions in which products, services, graphics, interiors and architecture take part. ( Borja de Mozota, 2003)

− Design entails thinking about and seeking out the consistency of a system or the intelligence of an object (Roger Tallon)

Design in this model stands for the process of making an idea tangible and use creative resources to feed processes and outcomes. Design in this model functions as a driving force to move the company to a certain position. Brand

− Brand identity is a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organisation members”.( David Aaker1996)

− “Brand identity is about ethos, aims and values that present a sense of individuality differentiating the brand”.( Chernatony,1999)

 In the model a position on the brand side of the axis means that the focus of the company is on the brand instead of the product. One might say that in this case the brand’s promise is more important then fulfilling it. Typically, a company on this side of the axis will be concerned with creating an attractive, consistent and compelling story for its customers. The company’s actual product offering is subordinate to this story and will be adapted to it if necessary. The brand guides the offering. Product A product is anything that can be offered to a market that might satisfy a want or need. There are two types of products: tangible(physical) and intangible(non-physical). In the model the product is the total package offered to the market stripped from the benefits offered by the brand. Characteristics can be the functional aspects, level of innovativeness, ergonomics, the use and aesthetics. In the model a position on the product side of the axis means that the focus of the company is on the product instead of the brand. Technology, innovation and functionality will be considered more

important than the story behind the product. Typically, a company on this side of the axis will be based on a differentiating technology or invention. The product offering guides the brand Market A market is,a social arrangement that allows buyers and sellers to discover information and carry out a voluntary exchange of goods or services. Along with a right to own property, it is one of the two key institutions that organize trade. (wikipedia)

The market has different players: most important are the customers, but also the competitor plays a significant role in the market. Besides these there are several external factors that inluence the market environment. In the model, a company that is positioned at the market side operates from the outside in; the market is the input to develop products and guide the brand. Organisation For a company the organization is a means to an end in order to achieve its goals. In this case it is about organizations whose goal is to generate specific services and/or to produce goods (factories, service enterprises, etc.) or to bring about specific effects in its surrounding world (e.g. authorities, police, political parties, interest groups, trade unions, etc.). In the model a company positioned at the organisation side acts inside out. In other words: their core competences lead to products and feed the brand. Quadrants The model is divided in four quadrants.,all having their own specific characteristics.

Figure 3 Market/Brand

Figure 4 Organisation/market

Figure 5 Market/Product

Figure 6 Organisation/Product

Market/ Brand In this quarter companies focus on their brand, driven from the market. This leads to brands that are not based on a strong soul or are driven from a core. Instead it creates brands for specific market demands. Unilever brands are an example. Probeer dit stuk eens scherper uit te leggen. Organisation/Market Companies in this quarter are focussing on developing from their brand. Here are companies with a strong brand that have a strong vision from theie core. An exemple could be a Versace . That does not listen to tre market but is a trendsetter. Market /Product This quart contains companies that develope products based on needs of the market. They know what customers want and fulfill this need with products. Another option is to have good markt product combinations were the companies concer there postion with. Organisation/product Here companies are driven from their own capabilities and vision. The development of new products comes from the competences of the company.

Cases Introduction A number of cases were studied to validate the theory and the model discussed in the previous chapter. The cases are based on interviews with representatives from various companies. These companies were positioned in the model based on the research team’s own insight The goal of the interviews was 1. to validate the model 2. to validate the position the research team thought the company occupied 3. to discuss the role of design with regard to the company’s brand and product 4. discuss the role of design with regards to the company’s internal and/or external focus. The model shows the companies of which representatives were interviewed: VacuVin, Trespa, Mexx, Porsche, Nomad and WE.

Figure 7.: Companies postioned in the role of design model. Interview set-up; The interviewed representatives held the following functions within their organisation: brand manager (2x), design manager, marketing manager (2x) and product development manager. The interview was open and informal, but based on the following set of questions:

1. What is your function within your organisation? 2. How, in your organisation, do product and brand relate to each other? 3. What is the role of design in this relation? 4. Would you call your organisation more brand oriented or more product oriented? 5. while developing new products, is your organisation driven by the market, or driven from the

organisation within? What is the role of the brand within your organisation? To what extent are your organisation’s branding efforts directed to the market and to what extent are they directed to the organisation?

6. How are the different design disciplines organised in your organisation? 7. what is your reaction to the model? Is it relevant in describing the issues we discussed during

the interview? 8. What is your reaction the the position we chose for you in the model?

Conclusion

This conclusion is based on six interviews with company representatives involved in branding, design and product innovation. Based on the cases, conclusions regarding the model are drawn. Research questions are: what is design and what is its role in a company? How is design related to the fields surrounding it? And is it a driving force or an effect of other drivers? After this research some questions are answered but others remain open and still need a more satisfying answer. The role of design The role of Design in a company and the fields surrounding it remains a complex process with a lot of different elements involved. Looking at the different cases it is hard to say what the exact definition of the role of design is.

Figure 20 Model with the companies of the cases

All the companies agreed that Design is a necessary tool nowadays. But the opinions about the role of Design were diverse. Design was interpreted in different ways; variations from purely aesthetic to a tool in the whole process of product development. For some of the companies design functions as a medium to support the brand and the product. For others design was purely an esthetic tool in product development. Design was often strongly related with communication. Design was seen as a tool to communicate the brand in graphics, the interior and the product. Not all companies were sure that Design was leading in their transformation. The role of communication was mentioned as a very important asset as well. Communication of course overlaps with design, but the fact that it was mentioned separately as a leading force is interesting. Factors of influence in the model During the interviews it became clear that there are several factors in the model that change depending in which segment of the model a company was situated.

On the axe of organization-market there are differences that change from one side to the other. These aspects are mentioned in the figure on the left. For example companies on the organization side of the model are more trendsetters. Going more to the right will lead to companies that are more trend followers. the character changes from push to pull. In the left companies take more time to innovate and create and guarantee a certain quality which often automatically leads to a higher price.

Figure 21 The role of Design for the Organization versus Market

The same has been done for the axe of product versus brand. Here there are fewer aspects found that show the differences. The most important aspect is the change in values. On the brand side it is more about emotion and experience while on the product side it is more about the function and practical applicable tools and innovations. So a position in the model towards the brand side might mean more emotion and experience….

Figure 22 The role of Design for the Product versus Brand

The model

The model given in the beginning might be not as useful as we hoped for. The main thing is that the model is too static for a dynamic process involving the role of Design. Most of the companies did not go up or down in the model straight away. Mexx for example is building a brand from its organization to use that as base for their products. WE is trying to create a brand from the organization to fill its Design. For Porsche Design was used to refresh the brand and communicate this to the market. Vacu Vin started from their products to become an organization that could have a strong brand based on the product.

Trespa was using the brand more as a tool to create a different image in the market with the use of Design. And finally Nomad had their product as base of the brand but wants to create a nomad experience in the market.

Figure 23 The role of Design model

So it is a process which includes all the elements most of the time, although not at the same time or with the same weight. But depending on the companies there is a certain given starting point and from there it is a process that involves other aspects in later stages to grow to the desired position. The model can be used to position companies compared to one another. However, the model leads to too much subjective perceptions of the situation to use it as an independent positioning tool. For example Mexx might be plotted in the organization/ brand quart if compared which H&M. But if Versace enters the model Mexx moves more to the right. The model can be useful as a thinking tool to

• think about the companies’ position in these fields • to define where a company wants to go from that position • to decide which resources and design tools to use to make this transition.

How the companies can do that is mentioned in the model below. This model is more like an option and still needs improvement. This is the same model but now the kind of Design that is to be used filled out more explicitly. If a company is in the organization/product quart and wants to become more brand/market oriented it is necessary to invest more in graphic and/or interior Design. This will lead to an improvement of the external communication. And the more it is used the further it gets. If the company wants to go more to a product/market situation the market/product combinations need to be designed. This leads to a more strategic positioning of the current product. To move to the organization /brand side the process structure of the organization has to be overlooked again and besides that graphic and interior design can be used for internal communication and structure.

Figure 24 The model as guideline to change direction

A final thought about the model concerns the question whether there is an optimal position for a company. Should a company be in the middle of the model? As already stated, the model is too relative to say that there is an optimum. The middle is not necessarily an optimum since companies are dependant on a certain type of market, a certain history and a kind of product. The four terms on the axes don’t have the same role for all different product categories and can even change per company. When a company is placed in a certain quadrant it is not necessarily bad. If for example Vacu Vin has a strong product derived from their organization, why leave this all behind? It can be used as a starting point for a balance that fits their company. This is shown in the model; a balance that matches with the company. It is important to have a close look at your company and use all the terms to be aware of your position. A balanced position related to the roots and character of the company is more relevant then a general position in the middle of the model.. Based on those analyses a company has to find its own optimum.

Figure 25 A relative balance within the role of design model Summarizing the model it does make sense to position companies compared to each other but to have a close look at a company the model is too static. The model can be improved with guidelines to provide possible tools for a company that sees a need for change in its position. The optimal position in the model depends on the company and the market it is operating in. The process

As mentioned above the role of design is a very dynamic process. The companies that were interviewed were al in a transition or had been. Two different processes can be described. Both models on this page show a process in which it is not clear where the starting point is. But from a certain point a direction is followed. It is a continuous process where the elements are feeding each other. The role of design is making this process happen. Design carries the information to connect all the elements. The first model is based on the companies that where already focusing on their brand and a little less on their product. The brand is a source within the

organization. for example because of the presence of one leading ‘guru’ inside the company, a rich heritage etcetera. From there on there is a base for the brand. This leads to a product which influences the market and the market indirectly influences the organization the product and the brand again. Everything will build on previous changes or influences.

Figure 26 Branddriven innovation

Other companies have a brand that is based on their product. Their model works the other way around. The product is the

Figure 27 Innovation driven branding

most direct source within the organization and influences the others. Here the product can be the starting point to come to a brand or give new input in the brand.

Combining this insight with the original model results in the two models shown in this paragraph. The first model shows a traditional approach to NPD where brand focused organizations will use their brand to reach the market, and product focused organizations will use their product offering to reach the market. Figure 28 Traditional NPD roadmap

The other model is showing our newfound insight: for modern companies, the road from organization to market is not a straight one. We have learned that it’s much more dynamic; both for traditionally brand focuses organizations and for traditionally product focused organizations. Both have come to the insight that the product needs the brand and the brand needs the product. This mutual synergy is best effectuated when companies do stick to their roots: a traditionally product focused organization should use the product tot build its brand upon. In much the same way, a traditionally brand focused organization should use its brand to inspire the development of new products. This new NPD roadmap model is not leaving elements out. Every element in the model has its own role with changing weights of importance depending on the type of company we’re dealing with. The same goes for the role of design within this model. For brand focused organizations, brand driven innovation will be in order, while for product focused organizations, product driven branding will be more suitable. These two visions on branding and NPD merit further research but are introduced in ‘brand driven innovation’ by Roscam Abbing (2005)

Figure 29 New NPD roadmap for brand focused organizations

Figure 30 New NPD roadmap for product focused organizations

Discussion/recommendation For further research it is important to have a closer look at the definition of Design. And even then it is still difficult while the definition changes per company and even per person. I believe it is interesting to define a process model that could describe how you can get from one position in the model to another position.. It can be based on the first model but I would advise to create a new model that is more dynamic. The role of communication is as well a point of interest. All the cases showed that communication is very important for al the aspects in the model. Maybe it should be about the role of communication? Or add communication as an extra term to market, organization, brand, product and Design. I think in the current model the role of communication was underestimated. Further more I think it is very important that the model in use finds some fit with the company and that the optimum position or direction is based on the company. The direction of the company should be based on the market of the company, the products, its organization, employees and the brand. this does not imply that those aspects must not change. But how to change and how much depends to a great extent on the company itself. I think that the most important start is in an awareness of the importance of design and communication in relationship to the brand, the market, the product, the organization. Finally I like to end with the question whether design is a goal or a means; Design in this research mainly came forward as a tool to support the band and the product in its communication. Design can be useful but -depending on the definition- can also be seen as just a nice extra or a prerequisite to get the whole process done. Is Design necessary? Depending on the definition it is. But on its own without interaction with other elements in the fields it does not deliver sustainable long-term results. So the goal might be to use design as a tool interacting with the market, the organization, the brand and the product.

About the authors

Erik Roscam Abbing MSc MDM (1969) is oprichter van Zilver brand driven innovation in Rotterdam, een ontwerp- en adviesbureau dat opereert op het snijvlak van branding, innovatie en design. Roscam Abbing studeerde industrieel ontwerpen aan de TU Delft (1995) en Design Management aan Inholland/Nijenrode (2005). Na ruime productontwikkelingservaring te hebben opgedaan bij Flex/the innovationlab en Axys Innovations richtte hij in 1999 Zilver op. Bij Zilver is Roscam Abbing zich gaan specialiseren in het creëren van synergie tussen de branding en innovatie disciplines bij zijn klanten. Zijn achtergrond in designmanagement en zijn onderzoeksdissertatie

‘brand driven innovation, fulfilling brand promise through new product development’waarmee hij in 2005 Cum Laude zijn Master of Designmanagement titel behaalde, helpen hem hierbij. Roscam Abbing is ook part time verbonden aan de faculteit Industrieel Ontwerpen aan de TU Delft waar hij medeverantwoordelijk is voor de masterclasses Brand & Product Strategy en Design Strategy. Daarnaast is hij gastdocent in de opleiding tot Master of Brand Management en kerndocent van de opleiding tot Master of Design Management bij Eurib in Rotterdam. www.branddriveninnovation.com www.zilverdesign.com

Dr. Rik Riezebos (1960) is algemeen directeur van EURIB en managing consultant van Brand Capital. Riezebos genoot zijn opleiding (economische psychologie) aan de K.U. Brabant (1983-1987) en volgde daarna het ‘Phd. program in general management’ aan de Erasmus Universiteit (1987-1991). Vervolgens was hij als universitair hoofddocent Marketingcommunicatie en Merkenbeleid verbonden aan de Faculteit Bedrijfskunde van de Erasmus Universiteit te Rotterdam (1991-2001); sinds 2002 is hij directeur van EURIB. Van 1998 tot

begin 2001 was hij tevens parttime verbonden aan TBWA/ARA Communicatieadviesbureau te Rotterdam als directeur strategie. Riezebos is auteur van het standaardwerk 'Merkenmanagement' (1996, 2002), waarvan tevens een Engelse (2003) en een Chinese (2004) editie is verschenen. Hij is co-auteur van 'Verzamelde Merken' (2004), een etymologisch merkwoordenboek. Riezebos is programmadirecteur van de opleiding tot Master of Brand Management (MBM) en een van de vier kerndocenten van de opleiding tot Master of Design Management (MDM). www.eurib.org

Ruth I. Delfgaauw (1981) was zomer 2006 stagair voor Zilver brand driven innovation & EURIB. Zij is student Industrieel Ontwerpen aan de TU Delft. Zij heeft haar bachelor industrieel ontwerpen reeds afgerond en is nu bezig met haar Master Strategic Product Design aan de TU Delft. Waar ze zomer 2007 op zal afstuderen.