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Designing Demand Review Executive Summary |
Foreword
BeforemyarrivalattheDesignCouncilIwasmadeawareofBERRandDIUSjointrequesttoreviewtheDesigningDemandprogramme.Giventheobjectiveofthe
programmetohelpSMEsbecomemorecompetitiveandmyownbackground inworkingwithbusinessesinthefieldsofR&D,designandinnovation,Irelishedtheopportunitytoleadthereviewandcommunicateitsfindingsandrecommendations.
Todate,DesigningDemandhastouchedmorethan1,300companiesandbusinessadvisors,andforthosecompanieswhohavefullyengagedwiththeprogrammethetransformationsarenothingshortofdramatic.Importantly,themarketfailurewhichtheprogrammeaddressedinitiallythatSMEsfailtousedesigneffectivelyremainsasrealtodayasitwaswhentheprogrammewaslaunchedsome18monthsago.
Althoughtheprogrammeisstillbeingrolledoutnationally,theDesignCouncil,togetherwiththeRDAsandtheirrespectivedeliverypartners,havemadesignificantprogressindefininganddeliveringit.Myinitialapproachtothisreviewwasforensic,toletthefacts
speakforthemselves.However,whiletheoutcomesandoutputsoftheprogrammedotellastory,therealvalueofDesigningDemandliesbeneaththerawdata.Thecasestudies,orbetterstillaconversationwiththeownersanddirectorsofabusinesswhohaveundertakenthe journey,servetotell thisstory inafarbetterwaythandataevercould.
ItisclearthatDesigningDemandsmentoringprocessishighlyeffective,butonthebasisthattheprogrammewillonlyeveraddresstheneedsandachievetheaspirationsofafew,itistheknowledgeandlearningderivedfromtheprogramme,communicatedeffectively,whichshouldservetoassistthemanyUKbusinesseswhocraveastrengthenedpositionintheirrespectivemarkets.
Thisreviewallowstimeforreflection,andmoreimportantlyanearlycoursecorrectioninareaswhereimprovementscanbemade.Thisopportunityforreflectionshould
betakenbyalloftheprogrammeskeystakeholders.Itiscleartheprogrammeisatitsstrongestwhenithashighlevelsupportandcommitmentwithinthesponsoringdepartments,withintheRDAsandtheirrespectivedeliverypartners,andwithintheclientcompaniesthemselves.
Myrecommendationstouchalmosteveryaspectoftheprogramme,butmoreimportantlytheyneedtobeownedandacteduponbyeachofthestakeholderssoactivitiescanbeoptimisedtothebenefitoftheclientsforwhomthisprogrammewascreated.Myrequestisforaparticipativeapproach,atalllevels,inachievinganewlyrevisedandsimplifiedprogramme,designedtobenefitthemostimportantstakeholderofall,thecustomer.
DavidGodberNovember2008
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Contents
DefinitionofTermsandAbbreviations 04
ExecutiveSummary 06Keyfindings 08Overallconclusions 10Summaryofrecommendations 11
Introduction 15Thereviewbrief 15Methodology 15Structureofthereview 16
Section1 HistoryandContextoftheDesigningDemandProgramme 22TherationaleforDesigningDemand 22ThehistoryofDesigningDemand 23
Section2 DesigningDemandProgrammeDelivery 30DesigningDemandserviceoverview 30DesigningDemandservicedeliveryandfundingmodel 35TheDesigningDemandcustomerjourney 39Plannedprogrammedelivery:theCoxtargets 40Actualprogrammedelivery:regionalroll-outtodate 42Theregions 45Thedevolvednations 54
Section3 TheContinuingRoll-outofDesigningDemand 58TheSMEmarketforbusinesssupport 58Theopportunityforclosercollaboration:BusinessSupportSimplificationProgramme 58
Section4 AchievementsandEffectivenessofDesigningDemand 62
Metricsandmeasurement 62ExpectationsofDesigningDemandoutcomesofpreviousdesigninterventions 63
Section5 KeyFindings,ConclusionsandRecommendations 68Keyfindingsofthereview 68Overallconclusions 70Recommendations 71
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TablesandFigures Figure1. Summaryprogrammeofworkforthereview 17
DeliveryPartners
Figure16. Cumulativenationalroll-outtoJune2008 46Figure17. Breakdownofregionalroll-outtoJune2008 46
Figure2. Stakeholderchart 18
Figure3. Designintervention:abriefhistory 24Figure4. DesigningDemandPilotProgrammessince2000 24Figure5. DesigningDemandthreelevelserviceoverview 31Figure6. Servicedeliverychartrolesandresponsibilities 31Figure7. DesigningDemandRegionalDevelopmentAgenciesand 36
Figure8. DesignCouncilcentralfunctionorganisationchart 36Figure9. DesignAssociaterecruitmentprocess 38Figure10. DesignAssociaterecruitmentschedule 38Figure11. DesignAssociatescoreattributes 41Figure12. SMEclientselectionguidelines 41Figure13. BSSPcustomerjourney 43Figure14. TheDesigningDemandSMEcustomerjourney(tobe) 44
Figure15. TheDesigningDemandTechnologyVenturecustomerjourney(tobe) 44
Figure18. Thefivestagesofbehaviourchange 64
Appendices SectionA: ListofevaluationsofDesignCouncil-ledbusinesssupport 76toJune2008
SectionB:BreakdownofregionalactivitytoJune2008 77
SectionI: DesignAssociaterosterJune2008 84
ofDesignAssociates
SectionC:OverviewofSMEs 81SectionD:ExplanationoftheBusinessLinkserviceandIDBmodel 82SectionE: OverviewofMAS 83SectionF: OverviewofKTPs 83SectionG:OverviewofIAS 84
SectionH:OverviewofHigh-GrowthCoaching 84
SectionJ: Overviewofcontinuingprofessionaldevelopment 85
Bibliography 87
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Denition of Termsand Abbreviations
ThetermsusedinthisreviewaredefinedinthesamewayasthoseintheCox Review ofCreativity in Business (2005) andtheDTIEconomicsPaperNo.15Creativity, Design and
Business Performance (2005) .
Creativity isthegenerationofnewideaseithernewwaysoflookingatexistingproblems,orofseeingnewopportunities.
Innovation isthesuccessfulexploitationofnewideas.Itistheprocessthatcarriesthemthroughtonewproducts,newservices,andnewwaysofrunningordoingbusiness.
Design iswhatlinkscreativityandinnovation.Itshapesideastobecomepracticalandattractivepropositionsforusersorcustomers.Designmaybedescribedascreativitydeployedtoaspecificend.
LiketheCox Review,theDesigningDemandprogrammeisfocusedonsmallandmedium-sizedenterprises(SMEs).TheEUdefinessuchcompaniesasthosewithfewer
than250employeesandanannualturnovernotexceeding50m.
ThisreviewalsoemploysanumberoftermsthathavespecificmeaningsinthecontextoftheDesigningDemandprogramme:
Coxtargets aretherecommendeddeliverytargetsfortheroll-outofanationaldesignsupportforbusinessprogramme,asdescribedintheCoxReview.Thesetargetswereadoptedfortheroll-outofDesigningDemandto201011,andaredividedbetweenthedifferentlevelsofserviceofferedbytheprogramme.
DesignAssociates arerecruitedandapprovedbytheDesignCounciltodeliveroneormoreoftheDesigningDemandservices.TheyprovidespecialistbusinesssupportservicestoclientSMEs,butdonotconductdesignwork.DesignAssociateshave
ledcreativeteams,oftenhaveformalbusinessmanagementtraining,andalsohaveextensiveexperienceofdeliveringbusinessadviceorconsultancy.
DeliveryPartners arecontractedbytheRegionalDevelopmentAgencytodeliverandmanagetheDesigningDemandprogrammeinaregion.DeliveryPartnersareresponsibleforSMEclientprospecting,clientselection,referralontotheprogrammeandrunningprogrammeevents.DeliveryPartnersarealsoresponsibleforprogrammemonitoringandevaluation.
BusinessAdvisors aretrustedintermediarieswhoprovideinformation,diagnosticandbrokeragefunctionsinhelpingsmallbusinessesaccessbusinesssupportprogrammeslikeDesigningDemand.BusinessAdvisorsmaytypicallybeBusinessLinkAdvisors,butmayalsobefromprofessionalservicesandprovidebanking,legalandaccountingorfinancialadvicetoSMEs.
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Designing Demand Review Denitions of Terms and Abbreviations |
Finally,thisreviewwasconductedinthecontextoftheDepartmentforBusinessEnterpriseandRegulatoryReformBusinessSupportSimplificationProgramme(BSSP).Thegovernmentcommitted inthe2006budgettoreducethenumberofpublicly-fundedbusinesssupportprogrammesfrommorethan3,000tonomorethan100by2010.DesigningDemandisoneofthese100protectedprogrammes.BSSPwillprovideacommonbrandforbusinesssupport,acommoncustomerjourneyforclientSMEsandacommonportalBusinessLinkthroughwhichclientSMEsaccesstheseservices.
BusinessLinkemploystheIDBcustomer identificationandreferral processInformation,DiagnosticandBrokerage.
AWMBERR
BLBSSPCIFCSRDIPDIUSEEDAEMDAERDFGVAIASIDBBHHMA
LDAMASNPDNWDAOJEUONERDAREPSEEDASMESWRDAUKTI
YF
AdvantageWestMidlandsDepartmentforBusinessEnterpriseandRegulatoryReform
BusinessLinkBusinessSupportSimplificationProgrammeCeramicIndustryForumComprehensiveSpendingReviewDesignImmersionProgrammeDepartmentforInnovation,UniversitiesandSkillsEastofEnglandDevelopmentAgencyEastMidlandsDevelopmentAgencyEuropeanRegionalDevelopmentFundGrossValueAddedInnovationAdvisoryServiceInformation,Diagnostic,BrokerageBritishHardware&HousewaresManufacturersAssociation
(renamedastheBritishHomeEnhancementTradeAssociation),LondonDevelopmentAgencyManufacturingAdvisoryServiceNewProductDevelopmentNorthWestDevelopmentAgencyOfficialJournaloftheEuropeanUnionOneNorthEastRegionalDevelopmentAgencyRegionalEconomicPrioritySouthEastofEnglandDevelopmentAgencySmallandMediumsizedEnterpriseSouthWestRegionalDevelopmentAgencyUnitedKingdomTrade&Investment
YorkshireForward
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Executive Summary
ThisreviewofDesigningDemandwasjointlycommissionedbyDIUSandBERRinJune2008.DesigningDemandisabusinesssupportprogrammedevelopedby
theDesignCouncilanddeliveredinpartnershipwiththeRegionalDevelopmentAgencies(RDAs)inEngland.TheprogrammeisdesignedtobenefittheUKbyhelpingbusinessesbecomemorecompetitive,increaseprofitsandimproveperformancethroughthestrategicandeffectiveuseofdesign.
Theobjectiveofthisreviewisto:
1.Understandtheissuesandchallengesfacedindeliveringtheprogrammenationally,drawingoncomparisonswithothermodelstoinformthefurtherdevelopmentoftheprogramme,includingdeliverybytheremainingRDAsandthedevolvedadministrations.
2.Capturetheviewsofstakeholdersonthefuturedirectionoftheprogrammeafter201011andonwaysinwhichasustainablemodelmightbedeveloped,alignedwith
theBusinessSupportSimplificationProgramme(BSSP).
Thisreviewisinadvanceofacomprehensiveevaluationoftheprogrammeseconomicimpactandvalueformoneyassessmentwhichwilltakeplaceattheendoffiscalyear201011.
TheprogrammewaslaunchedatthenationallevelasadirectrecommendationoftheCox Review of Creativity in Business (2005).ThemarketfailurewhichtheprogrammeisdesignedtoaddressisthatsmallerbusinessesarelesslikelytousedesignintheirdailybusinesspracticeandthatSMEslackbothknowledgeandexperienceofthedesignsectorandthewaysinwhichgooddesign,appropriatelycommissionedandimplemented,couldaddsignificantvaluetotheirbusiness.
Furthermore,theprovisionofbestpracticedesignadviceorinformationisnoteasilyachievedwithoutgovernment-fundedadvocacyandintervention.Design,incommonwithotherareasofspecialistconsultancyandinvestmentinexpertise,exhibitsthecharacteristicsofexperiencegoodsgoodsorserviceswhosevaluecanbebestunderstoodaftertheservicehasbeenconsumed.However,becausetheyareexpensive,thesegoodsandservicescannotbetriedbeforepurchase.
ThestatedprogrammeobjectivesofDesigningDemandto201011areto:Deliverabalancedportfoliooftransformationalservicestobusinessincludingachievingthefullroll-outofDesigningDemandto4,950SMEsacrossthenineEnglishregionsbytheendoffiscalyear201011
ManageandensurethequalityandconsistencyofDesigningDemandforexistingandnewcustomersandpartners
Continuetoassess,refineanddeveloptheDesignCouncilsoffertobusinessIdentifyanddevelopasustainablefinancialmodelfortheexistingprogrammebeyond201011andforprogrammeextensionswithinnewmarkets.
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TheDesigningDemandcustomerjourneyisgovernedbythecommitmentandcapacityoftheclientSMEs,withopportunitiestypicallyfallingintothefollowingfivekeyareas:
VisionandStrategyProductandServiceBrandandCommunicationsUserResearch
CultureandEnvironment.
DesigningDemandoffersthreelevelsofsupport,eachofincreasingintensityandimpact,withdifferentpointsofentryandexit.ThethreelevelsofDesigningDemandservicesare:
Level1ProgrammeIntroductions:workshopsforbusinessadvisorsanddesignerstointroducethemtotheDesigningDemandprogramme,includinginformationonhowtoengageclientSMEswithdesign.Thisisaonetomanyservice.
SkillsAssists: introductoryeducationalworkshopsforclientSMEsandtechnologyventurestart-upsusingspeciallydevelopedDesignCounciltoolstoidentifydesignopportunitieslinkedtoanorganisationsstrategicgoals.Thisisaonetomanyservice.
Level2BusinessSupportServices:diagnosticsandtailoredconsultancysupportingkeydesignareasincludingnewproductorbranddevelopment,withexpertone-to-onementoringsupportprovidedbyaDesignAssociatedrawnfromtheDesignCouncilapprovedroster.Therearetwobusinesssupportservicesatthislevel,GenerateandInnovate.
Generategetsadesignprojectgoingforsmallandmedium-sizedbusinesseswithgrowthpotential, andfocusesonaspecificdesignprojectoverasixto12monthperiod.Generateisanopportunitytomakedesignalong-termpartofthebusinessbydevelopingnewskillsamongstaff,rangingfromchoosingandbriefingdesignerstomanagingthedesignprocess.Generatenormallyconsistsofuptofivedaysofspecialist
consultancy,providedbyaDesignCouncil-approvedDesignAssociate.
Innovatecutstimetomarketfornewtechnology. Innovatesupportsearlystagetechnologyventureswiththepotentialforrapidgrowth,helpingthemusedesigntostrengthentheirbusinessproposition,attractfunding,reduceriskandgettomarketfaster.Technologyventuresexplorepotentialdesignopportunitiesthroughanintensivediagnosticprocessandthenworkonarangeofprojectsforupto12monthswithstrategicguidancefromaDesignAssociate.
Level3TheImmerseservicehelpscompaniestobuildbiggerprofitsthroughdesign-ledstrategies. Immerseisaserviceaimedatmaturebusinesseswhoarehungryforgrowth,haveanappetitefornewideasandarewillingtoinvestinrealisingtheseideas
withthesupportofaDesignAssociate.Upto15daysofmentoringaredeliveredovera12to18monthperiod.Theservicealsoprovidesacohortof14clientSMEstheopportunityforpeer-to-peerlearningthroughaseriesofthreespecialistworkshopsonthesubjectsofbrand,newproductdevelopmentanduserexperience.
SMEdesignprojectsimplementedtodateasaresultofparticipationinDesigningDemandsGenerateandImmerseserviceshavedrawnonawiderangeofdesigndisciplines.These includestrategyandprocess,branding,newproductdesign,marketingandcommunications,packaging,webdesign,environmentandservicedesign.
OriginalCoxtargets
TheDesigningDemanddeliverytargetsto201011wereadoptedfrom
recommendationsmadeintheCoxReview.Thedeliverytargetsaredividedbetweenthedifferentlevelsofservice,andbetweenProgrammeIntroductions,SkillsAssistsandBusinessSupportServices.ThesearedetailedinTable1.
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ProgrammeIntroductions
Companies Total
perregion (9EnglishRegions)
BusinessAdvisorWorkshops
DesignerWorkshops
TotalProgrammeIntroductions
SkillsAssist&BusinessSupportServices
100
100
200
900
900
1800
BusinessWorkshops
TechnologyVentureWorkshops
Innovate
Generate
Immerse
TotalSkillsAssist&BusinessSupportServices
300
100
24
100
26
550
2700
900
216
900
234
4950
TotalDesigningDemand 750 6750
Table 1 The Cox Targets
KeyFindings
Whilecomprehensivefindingsaredetailedwithinthebodyofthereview,keyfindingsaresummarisedunderthesesevenheadings:
1.ProgrammeobjectivesTheregionalroll-outagainsttheCoxtargetsto201011hasbeenslowerthananticipated,howevertheprogrammeasdeliveredisofanextremelyhighquality.ButwhereregionshavesoughttodeliverahighvolumeofLevel1interventionsinashorttimescale,thishasresultedintheparticipationofSMEswhoarenotready,
orindeedappropriate,fortheprogramme.WhereRDAshavedrawndownEuropeanRegionalDevelopmentFunding(ERDF),fundingqualificationcriteriaalsoinfluencestheprogrammesroll-out.
2.Organisationalstructure,fundingandgovernanceDesigningDemandisanationalprogramme,conceivedandmanagedcentrallybytheDesignCouncilanddeliveredbytheRDAsandtheircontractedDeliveryPartners.
TheDesignCouncilisfundedbyDIUS.InadditiontotheGrantinAidfundingallocatedtotheprogrammebytheDesignCouncil,theRDAsagreedtomakeacontributiontothecentralfunctionfortheperiodtoMarch2010intheamountof1.8m,equallydistributedamongtheRDAsintheamountof200,000perRDA.Aproportionofthisfundingisyettobecommitted.
EachRDAhascommitteddifferentlevelsofincrementalinvestmenttotheprogrammeandhascontractedtodeliverytargetsthataremarkedlydifferentfromthetargetsenvisagedintheCoxReview.TargetsalsodifferbetweenRDAs.(ItisimportanttonotetheCoxregionaltargetswerestatedasanaveragefortheentireUK).However,currenttargetsdonotcurrentlyreflectthemarketneedsoftheregionsorindeedthepotentialfutureroll-outoftheprogramme.
ERDFfundingisdrawndownandappliedtotheDesigningDemandprogrammebyanumberofregions.
Thecostingmodel(basedonafixedRDAcontributiontoDesignCouncilcentralcosts)doesnotreflecttheactualprofileoftheprogrammeroll-outintheregions.
ThecostoftheDesigningDemandcentralfunctionisnotexplicitandtransparenttotheRDAs,andisnotconstitutedinsuchawayastoallowRDAstoagreetheprogrammescentralcostandactivities.
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3.AlignmentofDesigningDemandwithothergovernmentsupportprogrammesInsomecases,RDAsanddeliverypartnersareplanningtoalignDesigningDemandwithotherrelevantbusinesssupportofferingssuchastheManufacturingAdvisoryService(MAS),theInnovationAdvisoryService(IAS)andHigh-GrowthCoaching.
4.ProgrammecontentandclientreadinessDesigningDemandworksbestwhenitisdemand-ledwiththerightclient,atthe
righttime,withneedsthatcanbeaddressedspecificallythroughtheprogrammesofferings.EarlyqualificationtoidentifywhetherSMEclientsarelikelytoderivebenefitfromtheprogrammeimprovesitsproductivitytocostratio.
ClientselectionguidelineshavebeendevelopedbytheDesignCouncil,buttheyarenotuniversallyappliedtoqualifyclientsforparticipationintheprogramme,andtheyarenotmandatory.
Incommonwithotherbusinesssupportprogrammes,arangeofsupportservicesareavailable,andwhereprovidedtheyhavedeliveredabroadrangeofresults.
Level1supportservicesconsistentlyreceiveexcellentparticipantfeedbackbutdonotnecessarilyfunctionasthefirststepinamulti-tieredcustomerjourney.
Level2Generatehasdeliveredspecific,measurableandmaterialresultsbutsuccessisdeterminedbyclientreadiness.
Level2Innovatehasnotbeenwidelyrolledoutintheregions,withdeliverypartnersstrugglingtoeffectivelyidentifysuitableearly-stagetechnologyventureclients.Results,wheretheyexist,areimpressive,butthescaleoftheroll-outtodateistoosmalltohaveanimpactatthenationallevel.
Level3ImmersehasbeenimplementedwithamuchsmallernumberofSMEclientsandnotallRDAshaveofferedthisservice,but it ishighlyvaluedbyclientSMEs.
5.MetricsandmeasurementDatacollectionisfocusedonprogrammeroll-outagainsttheCoxtargets,withprojectevaluationconductedasaclose-outactivity.Giventheprogrammeisstillinitsroll-outandonlyarelativelysmallsampleofLevel2and3interventionsarecomplete,itistoo
earlytomeaningfullyunderstandoutcomesfortheLevel2and3services.Inaddition,adequateperformancemanagementmetricsdonotexisttoalloweffectivemonitoringandevaluationoftheprogrammedeliverythroughouttheentireSMEclientcustomerjourney,inparticularwhereitisrequiredtounderstandcliententrypoints.
Inparalleltothisreview,theBSSPteamareworkingonamonitoringandevaluationframeworkwithwhichall oftheBSSPproductownerswill comply.TherecommendationswillbemadetotheBSSPTransitionManagementBoard.
6.KeyprogrammeassetsofDesigningDemandDesignAssociates havebeenuniversallypraised.Thisisattributedtotheirindividualcapabilities,andtotheprocessesemployedintheirrecruitment,managementandcontinuingprofessional development.TheDesignCouncilhasdevelopedacomprehensive
roadmaptosupporttheDesignAssociatesthroughthedeliveryofspecialisedcoaching,qualitycontrolandcontinuingprofessionaldevelopmentincludingtheembeddingofthesustainabilityagenda.TheDesignCouncilisalsointheprocessofformalisinganalumnimodeltofacilitateadditionalknowledgetransferbetweenDesignAssociates.
TheintellectualpropertycreatedtodateforDesigningDemandisintendedtobeopensource:freelyavailabletoall SMEsthatwishto learnfromtheprogrammeandopentoimprovements intheprogrammeofferingswheneverandwherevertheyaresuggested.The intellectualpropertyoftheprogrammespecifically includesthetools,processesandwebcontentrelatingtotheprogramme.
TheDesigningDemandcentralteamhasamassedagreatdealofknowledgeandexpertise,notonlyfromDesigningDemand,butalsothepilotprogrammeswhichhave
precededit.Lossofkeypersonnelcouldconstitutearisktotheprogramme.
7.Brandmanagement,marketingandchannelmanagementTheDesignCouncilbrandisstrong,denoteshighqualityandengendersSMEclient
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confidenceinDesigningDemand.However,theDesigningDemandbrandandnamingconventionswillnecessarilybecomealignedwiththerecommendationsoftheBSSPTransitionManagementBoard.
TheDesignCouncilisresponsiblefordeliveringanationalmarketingandawarenesscampaign.RDAsandtheirdeliverypartnersareresponsibleforregionalmarketingactivities,buttheseregional activitiesare inmanycasessupportedbytheDesignCouncil.
Overallconclusions
DesigningDemandhasdemonstrateditsabilitytoaddsignificantvaluetobusinesses,andtheDesignCouncil,theRDAsandtheirDeliveryPartnershaveworkedhardoverthepast18monthstodefineanddelivertheprogrammetogreateffect.However,thisreviewhasraisedquestionsaboutthecomparativevalueofthedifferentproductsintheprogrammeportfolioandwhethertheportfolioofproductsisappropriatelybalancedtomeetregionalprioritiesandneeds.
ThemarketfailurewhichDesigningDemandwascreatedtoaddressstillexists.Intheabsenceoftheprogramme,thereareindicationsthatSMEswouldstillfailtoengagewithcreativeindustriesintheregionsorusedesigneffectivelywithintheirbusinesses.
Incommonwiththeoutcomesofothergovernment-fundedbusinesssupportprogrammessuchastheMAS,HighGrowthCoachingandtheIASinregionswherethisprogrammeisdelivered,earlyindicationsfromDesigningDemandarethatthedeepertheintervention(andtheinvestment),thegreatertheeventualreturnsonthatinvestment.
Businesschampionsmustexperiencethetransformationalimpactofgooddesignintheirbusinessbeforetheythemselvescanstarttobecomechampionsofdesignintheirregionsandintheirindustries.
Sir George Cox
Theroll-outofDesigningDemandhasfallenbehinditsoriginalvolumedeliverytargetsandobjectives.Theroll-outoftheprogrammethroughthechosenchanneloftheRegionalDevelopmentAgencieshasbeenslowerthananticipated.Thecentralteamhaslimitedcapacitytodelivermultipleregionalroll-outssimultaneouslyandinsomecases,whereslippageinoneregionhasaffectedanother,thishasbeenseenasarestrictiontoregionalroll-out.AfurtherissuehasbeenthetimetakentoreachcontractbetweentheDesignCouncilandtheRDAsduetotheprocessesinvolvedwithRDAscontractingtheirrespectiveDeliveryPartners.ThisisdueinparttotherigorousprocurementprocessesemployedintheregionsanddelayscausedbythecomplicatedprocessofsecuringERDFfunding.
Moresignificantly,thecurrentproductportfoliomixofhighvolumesofProgrammeIntroductionsandSkillsAssistsandlowervolumesofBusinessSupportServicesisnot
conducivetoreachingenoughbusinesschampionstochampiondesignasenvisagedintheCoxReview:
SMEsaremoststronglyinfluencedbytheexperienceofothercompaniesinthesamelocality,particularlythosewithwhomtheyhavebusinesslinks.Thosethathavesuccessfullybenefitedfromtheprogrammewouldserveaspracticalexamplestomanyothers.
Cox Review of Creativity in Business, 2005
WhiletheCoxReviewacknowledgedtheimportanceofknowledgetransferinalocality,theimportanceofpeerinfluencewithinasectorgroupingviatradeassociationsorother
sectorspecificcommunicationchannelsshouldalsobeconsidered.
PerhapsthemostimportantchallengeforthedifferentorganisationsinvolvedinthedeliveryofDesigningDemandistoensurethewidedisseminationofsuccessful
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programmeresultstoSMEsthatneedtohearthem.Theprogrammemonitoringandevaluationframeworksmustproducerobust,qualitativeconclusionsaboutthevalueofparticipationinDesigningDemand,supportedbymeaningfulquantitativemetrics.Atthenationalscale,thesequantitativemetricsarenotyetinevidence,notleastbecausetheprogrammeremainsinitsinfancy.Currentevidencesuggeststhatreturnoninvestmentoutcomesmaynotbemanifestuntilupto12to18monthsafteranSMEhascompletedtheprogramme.
ThesecondimportantchallengeforallthoseinvolvedinDesigningDemandistheeffectivealignmentofDesigningDemandwithotherbusinesssupportprogrammesbeingdeliveredintheregions.Inthemajorityofcases,RDAshavesoughttoalignDesigningDemandwiththeirexistingbusinesssupportofferings.ThisalignmentshouldnowbemadeexplicitandoperationalundertheBERR-ledBusinessSupportSimplificationProgramme(BSSP).
Thisreview,however,hasbeenconductedatthemid-pointinthenationalroll-outoftheprogramme.Theopportunityhereistorecommendchangesthatwillprovideacoursecorrection,notbreakwiththewaythattheprogrammehasbeenrolledouttodate.Stakeholdersupportfortheprogrammehasbeenoverwhelming:thedemandfromSMEs,althoughslowertoachievetractioninsomeareasthanothersisthere.The
programmesstrategicassetsareofexceptionalquality,mostimpressivelyevidentintherosterofDesignAssociatesrecruitedtodate.Earlyevaluationsofthepilotprogrammesindicatesignificantvaluehasbeenaddedtoparticipatingbusinesses,thoughmoreworkisrequiredtodemonstratethelastingimpactoftheprogramme.
TheRDAs,inpartnershipwiththeDesignCouncilandtheirDeliveryPartners,havemadegreatprogressinscalingupDesigningDemandtomeetanationalrequirement.Overthelast18monthsofresearchanddevelopmentithasestablishedincreaseddeliverycapacity,absorbedthemanylessonslearnedthroughthefirstwaveoftheprogrammeroll-outandgeneratedaclearunderstandingofhowtheprogrammemightbestbedeliveredinthefuture.
Alltheevidencegatheredforthisreviewdemandsthattheprogrammeroll-outcontinue
vigorouslyovertheremainderofthecurrentCSRperiod.TheexistingmonitoringandevaluationprocessesmustbestrengthenedandaugmentedunderBSSP,inadvanceofthecomprehensivevalueformoneyassessmentthatwill takeplaceattheendoffiscalyear201011.Itisatthispointthatthedecisionshouldbemadewhethertoscaleuptheprogramme,maintain itsdeliveryatasteadystate,ortoconsiderappropriateexitstrategies.
Summaryofrecommendations
ThisreviewmakescoursecorrectionrecommendationstobeimplementedwithintheperiodofthecurrentCSR,andcapturesstakeholdersexpectationsaboutthefuturepositioninganddevelopmentoftheDesigningDemandprogramme.ComprehensiverecommendationslieinSection5ofthisreview,howevertheessenceoftheserecommendationsisdetailedwithinthefollowingeightsuggestedareasofchange:
1.AshiftinprogrammeobjectivesThereshouldbeaspecificandimmediaterevision,byallkeystakeholders,ofkeynationalandregionaltargets,withanemphasisonachievingahigherlevelofdeeper(Level2and3)SME-orientedinterventions,specificallyGenerateandImmerse.TechnologyVentureactivitiesshouldalsobeprovidedthroughspecialistdeliverypartnersinareaswheretargetclientsareevident.
2.Alignmentoforganisationalstructure,governanceandfundingItisrecommendedthatDIUSandBERR,togetherwiththeDesignCouncilandtheRDAsshouldconsidertheprogrammespresentcentralorganisationstructure,costsandfundingmechanisms,withaviewtosimplificationandalignmentwiththeprogrammesobjectives.OfparticularnoteistheRDAspartialfundingoftheprogrammescentral
coststoMarch2010,whichisincontrasttothecentralfundingmodeloftheMASwhichreceivesitscentralcontributiondirectlyfromBERR.ItisfurtherrecommendedthattheRDAsengageatahighlevelandtakeamoreprominentroleinthegovernanceoftheprogrammealongsideDIUS,BERRandtheDesignCouncil.
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3.AlignmentofDesigningDemandwithothergovernmentsupportprogrammesTheDesigningDemandprogrammepresentlyexistsasasingleproductwithintheBusinessExpertiseportfolio.InthecontextofBSSP,theDesignCouncil,theRDAsandDeliveryPartnersshouldacceleratetheDesigningDemandprogrammeroll-outandseektocollaboratewiththeleadershipsofothernationalprogrammeswhererelevant,withparticularattentionbeingpaidtorelationshipswhichshouldexistwiththeManufacturingAdvisoryService,theInnovationAdvisoryServicewheredelivered,
andwithHighGrowthCoachingprogrammes.
4.ProgrammecontentandclientreadinessWhereashiftinprogrammeobjectiveshasbeenrecommended,thisshouldbepartneredwithamandatoryroll-out(toRDAsandtheirDeliveryPartners)ofcriteriaforclienttargetingandselectiontodrivetheprogrammesproductivity-to-costratio.Programmemonitoringandevaluationshouldalsosupportthecontinueddevelopmentandimprovementofeffectiveregionalclientselectionprocesses.
5.MetricsandmeasurementItisrecommendedthatBERR,DIUS,theDesignCouncilandtheRDAsshouldcollaborateinareviewofthecurrentmonitoringandevaluationframework,andinstituteasuiteofbusinesssupportperformanceanddeliverymetricscapableofassessing
howthedesigninterventionhasaffectedacompanysperformancewhilefallinginlinewithBSSPsrecommendationsformonitoringandevaluation.Theimpactofthecurrenteconomicdownturnshouldalsobeconsideredinthemonitoringandevaluationofprogrammeeffectivenessandvalueformoney.
6.AssessmentofkeyprogrammeassetsTheDesignCouncilshouldcontinuetofundthecontinuingprofessionaldevelopmentofDesignAssociatesthroughgrantinaidreceivedfromDIUS,inordertoenhancetheprogrammecontentaswellastheskillsoftheindividualDesignAssociates.Lookingtothepost-2011deliveryoftheprogramme,anIPstrategyforDesigningDemandstools,methodologiesandcontentshouldbedeveloped,inconsiderationofthepotentialfuturetransferofIPintotheprivatesector.
7.Brandmanagement,marketingandchannelmanagementTheBSSPrecommendationsonnamingconventionsandbrandmanagementshouldbeimplementedandshouldhelptoaddcoherencetotheprogrammesofferings,withparticularconsiderationbeinggiventopositioningtheDesignCouncilastheendorsingbrandoftheDesigningDemandprogramme.Theformationofstrategicrelationshipswiththemostappropriatenationalindustrybodies,toseekendorsementofDesigningDemandandtochannelhighqualitypotentialclientsintotheprogrammeshouldalsobeconsidered.PotentialclientsshouldbechannelledthroughtheBusinessLinkIDBprocesswhereverpossible.
8.FutureprogrammedevelopmentTheDesignCouncilshouldconsideracollaborativeapproachtoworkingwiththeincumbentorganisations(whereexisting)ineachofthethreedevolvednations,where
theprogrammeIPandcontentmaybeceded,andwheremarginalcontributiontocentralcostsmaybeachieved.
Considerationshouldalsobegiventoestabishingrelationshipswithleadingacademicinstitutionsinorderthatleadingedgethinkingintheprogrammescontentcanbecontinuouslydeveloped,andthatthelearningandevidenceresultingfromtheprogrammecanbefedintobusinessschoolsandprogrammestoinformbusinesseducationforthefuture.
RDAsshouldalsoconsidertheeconomiesofscaleandscopewhichmaybeachievedthroughtheappointmentofacommonsupplierforthedeliveryofDesigningDemand,alongwiththeotherrelevantBusinessExpertiseofferingsunderBSSP.
Finally,inrespectoffuturegovernanceandco-operation,theDesignCouncilandtheRDAsshoulddevelopanewmodelwhichalignsnationalandregionalobjectiveswiththefundingandresourcerequirementsoftheprogramme.
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Nayor ndustr es
The company
Nayor Industres was founded n 1890 tomanufacture c ay p pes. It now has three
ons Nayor Dranage, focused onay and past c dra nage ppes; Nayor
Concrete Products, whch servces theconstruct on and c eng neer ngsectors; and Nayor Gardenware, whch
manufactures two ranges of c ay products.Nayor has factores n Yorkshre, F fe andthe West M ands, and a turnover of 250m.
The problem
Nayor had nvested 18m n d vers fyngand modern ng products between 1994and 2004, but ts product deve opmentprocesses were ad hoc. A so, t had notput enough emphass on brand andmarket ng. The resu t was a ack of marketprofie and ow return on nvestment.
The responseThe busness ned the DesgnngDemand Immerse servce, whch wasa wake-up ca , accord ng to Chef
Executve Edward Nay or. Two proectswere taken forward, one to mprovemarket ng, overhau brand ng andupgrade recepton fac es, and the otherto stream ne product deveopment. Inpartcuar, the bus ness set out to bu tsYorksh re F owerpots brand. A market ng
rector has aso been apponted, g ng
desgn a board-eve presence n thebusness and ensurng s embedded
Nayors operatons.
The impact
nce part pat ng n Immerse, Nay orsprofits have doubed and 60 staff havebeen taken on. Investment n brandngand communcaton has ncreased sa esby 25 per cent and Yorksh re F owerpotssaes are expected to doub e. Overseasbusness has been generated for thefirst tme n Europe, Asa and Austra a.
Seventy per cent of Nayors sa es nowcome from products the busness ddntmake five years ago.
Edward Nay or, Ch Execut ve, Nay or Industr es
Case Study 1
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Craufurd Technoogy
The company
Craufurd Technoogy was foundedough n 1949 to make ppework and
ductng for the constructon ndustry. Laterts core busness became secondarystee structures and producton nesassembed on-s te n factores. Turnoverstands at around 3m.
The problem
The busness wanted to put moreemphas s on ts h gh-marg n spec st
archtectura metawork and sta essstee fabr cat on, part cu ar n hyg ene-sens ve sectors such as food process ngand pharmaceut cas. Craufurd had
so begun manufactur ng pubart nsta atons ncreasngy foundocatons ke corporate HQs, housngdeveopments and cty centres, andwanted to boost that busness.
Charman Dav d Daves says: We werentusng our sk s to best advantage. Thatmeant we were standng st and needed
to move on by mprov ng margns, findngnew customers and engag ng n morecha eng ng work.
The response
Work wth the Engneer ng Emp oyersFederaton on a strategy for attract ng
ents such as arch tects, deveopers,scu ptors and oca author es quckreveaed the need to update the corporatemage ne w th the busnesss newamb ons. Through the Generateservce, Craufurd ran a des gn pro ectthat resuted n a new dent ty extendngacross stat onery, brochures, sgnage,presentat ons, and a new webste and
showroom. Des gn Assocate JamesDugu d heped the busness define tsneeds, draw up a br ef and choose adesgner.
Desgnng Demand showed us the eve ofexce ence we need to acheve. Its ftedour sghts, says Daves.
The impact
Turnover s expected to ncrease by 1mn 2008 and the bus ness s p annng todoub e factory space and boost staff
numbers from 40 to 60. Dav es says:Were a ready startng to see the benefits.Were startng to get the knd of enqu esweve been ookng for.
Dav d Dav es, Cha rman, Crau urd Techno ogy
Case Study 2
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Designing Demand Review Introduction |
Introduction
InJune2008,DIUSandBERRjointlycommissionedareviewoftheDesigningDemandbusinesssupportprogramme.Thisreviewisinadvanceofacomprehensive
evaluationoftheprogrammeseconomicimpactandvalueformoneyassessment,whichwilltakeplaceattheendoffiscalyear201011.
TheintentionistoassesstheprogressofDesigningDemandwhileitisstillinitsinfancy,sothatlessonscanbedrawnoutwhichwillfurtherinformthedevelopmentoftheprogrammeasitisrolledoutnationally.Keyfindingswillalsoinformthedevelopmentofasustainablemodelforthefuturedeliveryoftheprogramme.
Thereviewbrief
Thereviewfocusesontherespectiveelementsoftheprogramme,itsoriginalobjectivesandreasonforbeing,theclientstowhomitisdirectedandthemodelofprogrammedeliveryanditsoutcomes.Theobjectivesofthereviewareto:
1.Understandtheissuesandchallengesfacedindeliveringtheprogrammenationally,drawingoncomparisonswithothermodelstoinformthefurtherdevelopmentoftheprogramme,includingdeliverybytheremainingRDAsandthedevolvedadministrations.
2.Capturetheviewsofstakeholdersonthefuturedirectionoftheprogrammepost-2011andonwaysinwhichasustainablemodelmightbedevelopedinalignmentwiththeBusinessSupportSimplificationProgrammesrecommendations.
Methodology
ThereviewhasbeenledbyDavidGodber,thenewlyappointedDeputyChiefExecutiveoftheDesignCouncil,assistedbyAccenturesPublicServiceStrategypractice.Thissection
outlinestheresearchmethodsemployedinthereviewofDesigningDemand.
InterviewswithkeystakeholdersPrimaryresearchundertakenincludedstructuredin-depthinterviewswithkeystakeholderswithintheEnglishRDAsandtheirrespectivedeliverypartners,DesignWales,TheLighthouse(Scotland),InvestNorthernIrelandandEnterpriseIreland.FurtherinterviewshavebeenconductedwithkeyofficialsatBERRandDIUS.AdditionalstakeholderinterviewshavebeenheldwithanumberofDesigningDemandsclients,withkeybusinessorganisationsandsector-specifictradeassociations,withtheDesignCouncilcentralteamandanumberoftheDesignCouncil-approvedDesignAssociates.
Workshopswithkeystakeholderstoassessemerginghypothesesandoptionsfortheprogrammesfuturesustainability
Twoworkshopswithkeystakeholdershavetakenplacethroughthecourseoftheprojecttotesthypothesesandconsiderthefuturesustainabilityoftheprogramme.SenioreconomistsfromBERRandDIUSalsoparticipated intheseworkshops.
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| Introduction
Interviewswith,anddeskresearchon,DesigningDemandclientsPrimaryanddeskresearchhasalsobeenundertakenontheDesigningDemandprogramme,andalsooncasestudiesrelatingtothecurrentprogrammeandpilotprogrammesprecedingthecurrentprogramme.
DeskresearchonexistingevaluationreportsforpreviousDesignCouncilactivityDeskresearchhasbeenconductedonexistingindependentevaluationreportswhich
werecompletedonbehalfoftheDesignCounciltoassesstheoutcomesandoutputsfrompreviousbusinesssupportinterventions.
AbriefingwiththeDesigningDemandAdvisoryBoardTheAdvisoryBoardconvenesonaquarterlybasistoprovidegovernanceanddirectionandtoreviewtheprogrammesstrategyandprogress.TheAdvisoryBoardwasbriefedontheemergingfindingsofthereview.
AbriefingwiththeRDAsteeringgroupforDesigningDemandTheRDAsteeringgroupwasinitiallyformedtoshareexperienceandknowledgeabouttheprogrammesactivities,operationsandresults.TheRDAsteeringgrouphasbeeninformedofthereviewsfindingsandrecommendations.AllresponsesandissuesraisedbytheDesignCouncilsregionalpartnershavebeenconsideredinthefinal
recommendationsofthisreview.
Structureofthereview
Section1detailsthehistoryandcontextoftheDesigningDemandprogramme,includingtheevolutionof:ProgrammeIntroductionsworkshopsforBusinessAdvisorsandDesignersSkillsAssistsworkshopsforbusinessesBusinessSupportServicestheGenerate,InnovateandImmerseservices.
Section2givesanoverviewoftheDesigningDemandprogrammedelivery,includingtheserviceoverview,thecustomerjourney,theplannedprogrammedeliverytargets,theservicedeliverymodelincludingrolesandresponsibilities,actualprogrammedeliveryto
dateandregionalprogress.
Section3exploresthecontinuingroll-outofDesigningDemand,includingopportunitiesforclosercollaborationwithotherfundedprogrammesundertheBusinessSupportSimplificationProgramme(BSSP).
Section4considerstheachievementsandeffectivenessofDesigningDemandatthisearlystageintheprogrammeroll-out,detailingtheinputs,outputsandexpectedoutcomesoftheprogrammeandreflectsontheoutcomesofpreviousDesignCouncilbusinesssupportinterventions.
Section5summarisesthereviewfindingsandrecommendations,highlightingissuesforconsiderationduringtheremainderofthecurrentCSRandforthefuturepositioningof
theprogramme.
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Designing Demand Review Executive Summary |
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Summary programme o work or the rev ew
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| Executive Summary
Figure 2
Stakeholder chart
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Prev ous Stakeho ders
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Designing Demand Review Executive Summary |
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CatherineAllford
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NickBarley
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MikeBarton
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RichardMale
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AlanPain
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RogerParr
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DavidRead
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SirGeorgeCox
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AndrewSummers
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0 | Executive Summary
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.
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| History and Context
History and Contextof the Designing
Demand Programme
Creativityproperlyemployed,carefullyevaluated,skilfullymanagedandsoundlyimplemented,isakeytofuturebusinesssuccessandtonationalprosperity.
The Cox Review of Creativity in Business, 2005
1.01 ThissectiondetailsthehistoryandcontextoftheDesigningDemandprogramme,includingtheevolutionofProgrammeIntroductionsworkshopsforBusinessAdvisorsandDesigners;SkillsAssistsworkshopsforbusinesses;andBusinessSupporttheGenerate,InnovateandImmerseservices.Itincludesabriefaccountofthepreviousbusinesssupportpilots,ledbytheDesignCouncil,whichshapedDesigningDemand.
TherationaleforDesigningDemand
1.02 TheDesigningDemandprogrammewascreatedandlaunchedbytheDesignCouncilinpartnershipwiththeRDAsasarecommendationfromtheCox Review of Creativity inBusiness: Building on the UKs strengths (2005).DesigningDemandsetsouttoimprovetheperformanceofUKbusinessesbyhelpingthemtousedesignasakeydriverofgrowthandcompetitiveness.TheprogrammesoverarchingobjectiveistoembedeffectiveprocessesforthemanagementofdesigninSMEsandalsospecificallyintechnologystart-ups.
1.03 TheCox Review identifiedfivemainbarrierswhichpreventedSMEsfromaccessingtheUKscreativesector:1. Lackofawarenessandexperience(oftheUKscreativetalents)2. Lackofbeliefinthevalueof,orconfidencein,theoutcome3.Notknowingwheretoturnforspecialisedhelp
4. Limitedambitionorappetiteforrisk5. Toomanyotherpressuresonbusiness.
1.04 InparalleltotheCox Review,theDTIEconomicsPaperNo.15Creativity, Design andBusiness Performance (2005),providedcompellingevidenceoftheimpactthatcreativitycouldhaveonbusinessperformance.However,thepaperalsoreportshowsmallerbusinessesarelesslikelytomakeuseofdesignintheirdailybusinesspractice.SMEslackbothknowledgeandexperienceofthedesignsectorandtheways inwhichgooddesign,appropriatelycommissionedand implemented,couldaddsignificantvaluetotheirbusiness.
1.05 BERRssupportingevidenceforthegovernmentactionplanforsmallbusiness1statesthattoofewsmallbusinessesgrowfastenough,orarecompetitiveenough,tocontributeasfullyastheymighttooverallproductivitylevels.ManyUKsmallbusinesseswantto
grow,butthereareanumberofmarketfailuresandassociatedbarriersthatpreventsmallbusinessesmaximisingtheirpotential.Specificallyhighlightedasanareaoffailureisthelackofinformationavailabletothepurchasersofbestpractice,thisproblembeingparticularlyacuteforsmallbusinessesthattendtofacegreaterinformationbarriersthan
1BERR,BuildingtheCapabilityforSmallBusinessGrowth.www.berr.gov.uk/files/file38301.pdfExtractedfromAgovernmentactionplanforsmallbusinessTheevidencebase(ProducedbytheDTISmallBusinessService)
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Designing Demand Review History and Context |
largerbusinessesbecauseoftheirlimitedresources.
1.06 Smallbusinessescapabilitytogrowisalsoassessedasbeinglimitedbyalackofskills.Smallbusinessesexperienceparticulardifficultiesinjudgingthequalityoftrainingandoftendonotappreciatethebenefitsintermsofimprovedbusinessperformance.Thisproblemcanbeaccentuatedbythelowinitialskillsbaseinmanysmallbusinessesthataffectperceptionsaboutthevalueofexternallyavailablesourcesofadviceandexpertise.
1.07 Thereisalsoevidenceofsignificantdisparitiesinthelevelsofinnovationpracticedby2UKbusinesses.CoshandHughes(2003) alsosuggestthatlargerbusinessesand
manufacturingbusinessesaresignificantlymorelikelytoengageinResearchandDevelopmentthansmallerbusinessesorthoseintheservicesector.
1.08 TheUKInnovationSurvey20073statesthatbothlargerandsmallerenterprisesreportedmarketand internal sourcesasmost importantfor informationon innovation.Thissuggeststhatenterprisestendtorelyontheirownexperienceandknowledgecoupledwithinformationfromsuppliers,customersandclients.The leastfrequentlycitedsourceswereinstitutionalsources.Technical,industryorservicestandardswerealsoahighlyimportantsourcefor12 percentoflargefirms.
1.09 ResearchbytheDesignCouncilhasconsistentlyshownalinkbetweentheuseofdesignandbetterbusinessperformanceacrosskeymeasuresincludingturnover,profitandmarketshare,whileatthesametimedemonstratingthatmostbusinessesarefailingtomakebestuseofdesign.Forexample,rapidlygrowingbusinessesaresixtimesmorelikelythanstaticonestoseedesignasintegraltotheiroperations,and83percentofbusinesseswhichseedesignasintegralhavelaunchednewofferingsinthepastthreeyears,comparedtoonly40percentofbusinessesoverall.Meanwhile,morethanfouroutoftenbusinessesdonotinvestindesignatalland64percentgiveitalimitedroleatbest.While32percentoflargerbusinessesseedesignasintegral,only15percentofSMEssharethisview.4
1.10 ThisevidencehelpedtocreateapowerfulcasefortheCoxReviewsrecommendationtoacceleratetheroll-outoftheformerDesignforBusinessprogramme,whichhadbeen
pilotedbyAWM,SWRDAandtheLondonDevelopmentAgency,andmakeitavailabletoSMEsnationwide.
Whatisrequiredisanationalprogramme,toaconsistentlyhighstandard,thatcanberefinedandextendedasexperienceisaccumulated,availabletoSMEsregardlessoflocation.ThisneedsalloftheRDAsandthedevolvedadministrationsvigorouslytodrivetheprogramme,albeitaccommodatinglocalpriorities.
Cox Review of Creativity in Business, 2005
1.11 Theprovisionofbestpracticedesignadviceorinformationisnoteasywithoutgovernmentfundedadvocacyandintervention.Design,incommonwithotherareas
ofspecialistconsultancyandinvestmentinexpertise,exhibitsthecharacteristicsofexperiencegoodsgoodsorserviceswhosevaluecanbebestunderstoodafterthegoodorservicehasbeenconsumed.However,becausetheyareexpensive,thesegoodsandservicescannotbetriedbeforepurchase.
1.12 InadditiontotheexperiencegoodsnatureoftheprogrammeandthebarriersidentifiedbyCox,thisreviewhasfoundthatevenwhereSMEsmaybeawareofthestrategicvalueofdesigntotheirbusiness,orbewillingtopaytoexperiencethevalueofdesign,themajoritydonothavetherequisiteskillsorexperiencetoengageexternaldesigners.SMEslacktheabilitytowriteadesignbrief,tochoosethebestpitchfromadesignagency,ortoproject-manageadesignintervention.
ThehistoryofDesigningDemand
1.13 DesigningDemandwasbornfromarichhistoryofdesign-basedbusinessinterventionprogrammes.Thesedatebacktothe1970swhentheCouncil forIndustrialDesign(nowtheDesignCouncil)deliveredgovernment-fundeddesignconsultancyinconjunctionwith
2Cosh,AandA.Hughes,(eds)(2003)EnterpriseChallengedPolicyandPerformanceintheBritishSMESector19992002.Cambridge,CentreforBusinessResearch.3DIUS,Robson,SandHaighG.FirstFindingsFromtheUKInnovationSurvey2007.4DesignCouncilResearchBriefing,2008.www.designcouncil.org.uk/briefing01
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| Executive Summary
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Designing Demand Review Executive Summary |
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| History and Context
governmentgrantstohelpbusinessestoinvestinspecificdesignprojects.
1.14 InrelationtothedevelopmentofDesigningDemandinitscurrentform,theDesignCouncilhasimplementedanumberofpilotandbusinesssupportprogrammesintheperiodsince200102.
TheevolutionofgrowthservicesforSMEs
1.15 TheDesignforBusinessprogrammewascreatedbytheDesignCouncilfromaseriesofpilotprogrammesforSMEsinthemanufacturingandtechnologysectorsbetween2002and2006.Theprogrammesetouttodevelopandtestthescalabilityofstrategicdesigninterventionsandhelpbusinessidentifyhowdesigncouldaddressbusinesschallenges,takingpracticalstepstoimplementchangethroughoutabusiness.
1.16 WithinthispilottheDesignCouncilworkedcloselywithnationaltradeassociationsincluding:theBritishHardware&HousewaresManufacturersAssociation(nowrenamedBritishHomeEnhancementTradeAssociation),theCeramicIndustryForum(CIF),UKScienceParksAssociation,UKBusinessIncubationandtheEngineeringEmployersFederation(EEF).Thesestrategicallianceshelpedtotargetcompanieswhowerereadytoengagewith,andbenefitfromtheprogramme.
ToomanyUKmanufacturersarestillfocusedoncuttingcosts,asopposedtoincreasingmarginsthroughtheapplicationofdesignandinnovation.
Martin Temple, Director General (now Chairman) of the Engineering Employers Federation
cited in the Cox Review of Creativity in Business (2005)
1.17 Thepositiveoutcomesresultingfromtheprogrammewerereportedinthe2005CoxReview,whichrecommendedthatanationwideprogrammeshouldbeintroducedandsupported.TheDesignforBusinessprogramme,asitwasnamedintheCoxReview,offeredthreelevelsofincreasinglyintensivebusinesssupport.
1.18 Level1AsetofinspirationalandeducationalworkshopsandtoolsforSMEs,businessadvisorsanddesigners.
1.19 Level2Tailoredinterventionsinkeyareassuchasproductdevelopmentorbrand,withexpertmentoringsupporttoimplementchange.
1.20 Level3Theopportunityforselectedcompaniestodevelopandimplementaprogrammeofdesign-ledtransformation.ThismostintensivelevelofinterventionwasdevelopedfrompilotsinthetechnologyandmanufacturingsectorstheresultingserviceswereInnovateandImmerserespectively.
Theschemeishighlyratedbyparticipantsandhasdelivereddemonstrablesuccesswith
respecttotheirunderstandingofandwillingnesstoexploitdesigninboththestrategicandoperationalspheres
Evaluation of Technology Campaign, Technopolis, June 2006
1.21 TwentytechnologyventuresparticipatedintheInnovatepilotprogramme(theTechnologyCampaign).The2006 independentevaluationofthisprogrammeconcludedthatallparticipatingcompaniesfeltthattheprogrammehadanoverallbeneficial impactonthebusiness inthefollowingways:strongerbusinessproposition;enhanced incomeandsurvival prospects;shortertimetomarket;alignmentofproductsandserviceswithcustomersneeds.
1.22 Specificresultscontainedwithinthisevaluationconcludedthat:80 percentreportedachangeinstrategicdirection80 percentreportedachangedattitudetodesignandunderstandingthevalueofdesign,cultureandvision
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Designing Demand Review History and Context |
80 percentincreasedtheirabilitytoraisefinance75percentinvestedsignificantlyindesignandwereconfidentofareturnoninvestment
1.23 ThirtySMEsparticipatedintheImmersepilotprogramme.The2006independentevaluationoftheImmersepilotsalsoconcludedthatallparticipatingcompaniesfeltthattheprogrammehadanoverallbeneficialimpactonthebusiness.
Theprogrammehasdonewellatproducingtheexpectedoutcomesandthereisanoptimism(withintheclientbase)thatthiswillleadtotheimpactsofincreasedturnover,increasedcompetitiveness,safeguardingjobsandanincreasingbottomline.
Evaluation of Design Immersion, Technopolis, October 2006
1.24 TheimpactfromImmersepilotsatthepointofprogrammecompletionwere:Turnoverincreasedby14 percentaboveearlierpredictedlevelsProfitincreased9 percentaboveearlierpredictedlevelsEmploymentincreased13 percentaboveearlierpredictedlevels.
1.25 TomeettherecommendationsoftheCoxReview,theLevel3Immerseproduct
wasadapted,tobeimplementedonasmallerscaleandoverashortertimeperiod.ThisisnowknownastheDesigningDemandLevel2Generateproduct.GiventhatthedeliverytimeforInnovatewasshorterthanthatforImmerse,InnovatewasalsopositionedatLevel2.
ThedevelopmentofProgrammeIntroductionactivities
1.26 InparallelwiththedevelopmentoftheDesignCouncilinterventions,someregionalpartnershipsalsoledtothedevelopmentofProgrammeIntroductions.TheSouthWestRegionalDevelopmentAgency,SWRDA,workedwiththeDesignCouncilonthedevelopmentofworkshopsaimedatregionally-baseddesignersanddesignagencies.ThefeedbackonthecontentandqualityoftheDesignerworkshopwasverypositive,andtheseworkshopswereintegratedintotheDesigningDemandserviceportfoliowhen
thenewprogrammewaslaunchednationally.
1.27 Similarly,theBusinessAdvisorProgrammeIntroductionworkshopsweredevelopedfromtheDesignCouncilsexperienceofengagingwithindustrybodies.Theobjectiveoftheseworkshopswastoensurethatregionally-basedbusinessintermediarieswouldbecomefamiliarwiththenewprogrammeandbeabletoreferSMEseffectively.
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0 | Programme Delivery
Designing DemandProgramme Delivery
2.01 ThissectiongivesanoverviewoftheDesigningDemandprogrammedelivery,theserviceoverview,thecustomerjourney,theplannedprogrammedelivery
targets,theservicedeliverymodelincludingrolesandresponsibilities,theactualprogrammedeliverytodateandtheprogressmadeineachoftheregionswheretheprogrammeisactive.
DesigningDemandserviceoverview
2.02 DesigningDemandseekstouseexpertsintheprovisionofhighleveladvice,mentoringandconsultancyforSMEstoembeddesignthinkingwithinbusiness.DesigningDemandcanbeaccessedbyclientSMEsintwomainways:Athree-levelbusinesssupportservice,fundeddirectlybyRDAsandmanagedbyregionaldeliverypartners.
TheDesigningDemandwebsite,onwhichdelegatesregisterforworkshopsandwhichmakesavailableprogrammeknowledgeandcasestudiesdemonstrating
thebenefitofdesigntoSMEs.
2.03 Thethree-levelbusinesssupportserviceisdividedintosevencomponentparts.EachlevelincreasesindepthofinterventionandlengthofSMEparticipation.AlloftheservicesaredeliveredbyDesignCouncilapprovedDesignAssociates.Currently,nochargeismadeforanyoftheservices.
2.04 Level1ProgrammeIntroductionsWorkshopsforBusinessAdvisorsandDesignersTherearetwoProgrammeIntroductionworkshopsforbusinessadvisorsandfordesignerstointroducethemtotheDesigningDemandprogramme.WorkshopsfocusonhowtoengageclientSMEswithdesign-relatedgovernmentfundedbusinesssupportservices,orwithdesignersanddesignagencies.Thisisaonetomanyservice.Theseworkshopsareahalf-dayindurationanddonotcounttowardstheachievement
oftheCoxtargets.
2.05 TheBusinessAdvisorWorkshop ismarketedtobusinessintermediariesandadvisorsfromBusinessLinkandfromotherprofessionalservicesprovidingadvicetoSMEsonbanking,accountancyorlaw.Theobjectiveofthisworkshopistoachieveclientreferralsintotheprogramme.
2.06 TheDesignerWorkshopisaimedatengagingthedesignsectorwithDesigningDemand,particularlydesignerswhodonotusuallyworkwithSMEs.Insomeregions,thelackoflocaldesignerswiththeexperienceandcapabilitytocommunicatethecommercialbenefitsofdesigntoSMEswasidentifiedasapotentialmarketfailureinitsownright.TheDesignerWorkshopaimstoraiseawarenessoftheDesigningDemandprogrammeandtoassisttheregionaldesignsectorinbuildingnewSME
clientrelationshipsthroughtheirunderstandingofthecommercialneedsofSMEclients.
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Designing Demand Review Executive Summary |
Figure 5
Designing Demand three level serviceoverview
Workshops
Up to 1 day
Generate
&Innovate
Up to 12 months
Immerse
12-18months
Business
Wshop
Technology
Venture
Wshop
Business
Advisor
Wshop
Designer
Wshop
Generate Innovate
Immerse
Figure 6
Servicedelivery chartroles and responsibilities
BusinessWorkshop
TechnologyVentureWorkshop
BusinessAdvisorsWorkshop
DesignersWorkshop
Generate Innovate
Immerse
Workshops
Up to 1 day
Generate &InnovateUp to 12 months
Immerse
1218 months
QualityAssurance
DeliveryPartner
Design
Associate
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| Programme Delivery
2.07
2.08
2.09
2.10
2.11
2.12
2.13
2.14
Level1SkillsAssistsworkshopsforSMEsandtechnologyventurestart-upsTheseone-dayintroductoryeducationalworkshopsforclientSMEsandearlystagetechnologyventurestart-upsusespeciallydevelopedDesignCounciltoolstoidentifyanorganisationsdesignopportunities.Thisisaonetomanyserviceforupto25participants.TheworkshopsaredesignedtobeuptosixhoursindurationinordertoqualifyforRDAsingleprogrammefundingasaSkillsAssist.TheworkshopsdonotqualifyforERDFastheERDFminimumrequirementforsupport isatwo-day intervention.
TheSMEWorkshop introducesSMEmanagersanddirectorstotheprinciplesofgooddesign.TheworkshopincludespracticaldemonstrationsandthedisseminationofDesignCouncilcasestudies.TheSMEclientworkshopmayserveasarecruitmenteventfortheGenerateorImmerseservices.TheregionshaveexperiencedvariablelevelsofsuccessinconvertingworkshopparticipantsintoclientsforLevel2and3growthservices.
TheTechnologyVentureWorkshopactsasanintroductiontothespecialistDesigningDemandserviceforearlystagetechnologyventurestart-upsonly.TheworkshopprocessisexplicitlydesignedtoidentifywhetherclientsaresuitabletoparticipateintheInnovateservice.
Level2growthservicesGenerateandInnovateLevel 2growthservicesofferdiagnosticsthatresult intailoredsupport,withexpertonetoonementoringsupportprovidedbyaDesignAssociatedrawnfromtheDesignCouncil-approvedroster.Therearetwogrowthservicesatthis level,GenerateandInnovate.
GenerategetsdesignprojectsgoingforSMEbusinesseswhohavedemonstratedgrowthpotential. GeneratefocusesonaspecificdesignprojectimplementedbytheclientSMEoverasixto12monthperiod.ClientSMEsmayentertheGenerateservicebydirectreferralfromaBusinessAdvisor,ormayhaveattendedtheSMEworkshop.TheclientSMEreceivesuptofivedaysofDesignAssociatesupporttodefineandimplementadesignproject.
Generateisanopportunitytomakedesignplayamoresignificantrolewithinaclients
business.TheDesignAssociatewillhelptheclientSMEtodevelopnewskills,fromchoosingandbriefingdesignerstomanagingthedesignprocess.GenerateprojectsmightbestbedescribedasdemonstratorsofhowaclientSMEmightcommissionandprocuredesigninthefuture.Todate,Generateclientprojectshavetypicallyengagedinbrandrelatedprojects,asthesetypesofdesigninterventionarebettersuitedtotherelativelyshorttimescalesoftheservice.
Innovatecutstimetomarketfornewtechnologystart-ups. Innovatespecificallysupportsearlystagetechnologyventuresinusingdesignthinkingtoattractfunding,reducerisk,refinebusinessstrategyandgettomarketfaster.TechnologyventureclientsstarttheirInnovatejourneyasacohortofsixventuresattendingathree-dayworkshopusingan intensiveand interactivediagnosticprocessto identifybusinesschallenges,defineandshapeappropriatedesignopportunitiesandbuildactionsplans.Innovateconsists
ofathree-dayworkshopledbyaDesignAssociateandsupportedbyateamofthreehighlyexperienced,multi-disciplinarydesigners.Eachbusinessthenreceivesone-to-onementoringfromtheDesignAssociateeverymonthforupto12monthsastheventuresimplementarangeofdesignprojectssupportingtheiractionplans,withtheoverallaimofachievinginvestorreadiness.
InnovateclientsarerecruitedthroughtheTechnologyVentureWorkshop.Atthispointintheroll-outofDesigningDemand,regionshavestruggledtomeettargetsfortheInnovateservice,thoughTechnopolis2006evaluationoftheInnovatepilotsuggeststhatthereturnoninvestmentinearlystagetechnologyventurescanbeveryhigh.TheDesignCouncilteamhasrecentlyrecommended,andthefindingsofthisreviewsupporttheview,thattechnologyventureservicesmightbebetterdeliveredthroughspecialistdeliverypartnerslocatedinTechnologyTransferOffices,incubators,science
parksandinnovationcentres.DIUShascommissionedapilottothiseffect,tobeconductedthough2009.
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lls I i l
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The company
Cha s Internat ona began mak ngeanng products n the eary 1990s
and owned severa brands, the mostsuccessfu of whch was Buster. Basedn Suffok, t empoyed around 20 peopand had a turnover of around 1m when
ned the Immerse servce.
The problemCha ss saes were sat sfactory but tsproducts were regu ary de sted bysupermarket buyers under pressure toreduce the number of nes on the sheves.The Immerse team d scovered that theproduct portfo o wasnt we structuredand the on-shef presence wasnt ascoherent as that of the compet on, saysDesgn Assocate Evan Ktse
The response
Cha s and the Immerse team focused on
the bus nesss strongest brand, Buster,and ts strongest sector, p ughoe anddran care. A but four Buster productswere e ther d scontnued or moved n to
other Cha s brands, eavng Buster soconcentrat ng on ceanng bathroom and
tchen p ughoes and unbock ng dra ns.The range was repackaged to mprove on-shef stand-out. Des gn Assocate FonaMyes says: The des gn emphassed thatBuster was a product system none ofthe compet on had that.
Des gn nput a so created a sa espresentat on emphas ng the productscommerc potent to buyers. They
dnt take us serousy before, but nowwere seen as cred e and professona ,says Drector Graham Burche
The impact
The Buster range s now so n vrtuasupermarket cha ns. Fo owng the
aunch of the new range, saes rose by 35per cent n 2005, wth year-on-year saesses of 50 per cent and 25 per cent.
The products are now a so so d overseas.Our desgn proect has pa d for tsemany t mes over, says Burche
Graham Burche , D rector, Cha s Internat ona
Case Study 3
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l
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Owstone
The company
Owstone aunched n 2004 to deveopnanotechno ogy capabe of detect ng
rborne chem ca n extreme y smaconcentrat ons. It focused y on
tary secur ty.
The problem
The busness had created a devce theze of a five pence pece - makng ts
technoogy 100 tmes sma er and 1,000mes cheaper than what a ready ex sted.
But t was strugg ng to exp n thetechnoogy, attract nvestors and choosethe rght app catons and route to market.
The response
Owstone ned the Innovate servcesoon after aunchng. It heped thebus ness rea se the va ue of des gntechn ques such as v sua sat on andmode ng n understand ng customerneeds and exp ng technoogy. It was
so ab e to cut rsk by reducng tme tomarket by p acng ts technooges nsdentermedate products and serv ces thatgenerated revenue ear er and won theconfidence of nvestors.
In para , Ow stone deve oped acorporate dent ty. It was a very mportantpart of estab sh ng cred ty wthnvestors and potent partners. Wehad techno ogy and we had a team butwe had to present ourse ves n a waythat made peop e take the propos onser ous y, says D rector B y Boy e.
The impactBarey two years after ng Innovate,Owstone had deveoped a product,Tour st, wh ch et potent customerstest the technoogy and assess how bestto use t. Its a ow-rsk way for themto evauate the technoogy. Meanwh e,for us, 80 per cent of the deve opments done up front and ts ust a questonof makng modficat ons to su t d fferentapp catons. So we spread rsk too,says Boye.
In 2006 Owstone anded $2.3m of newnvestment n add on to $3m of ear erfundng. An order from a UK defencecontractor fo owed.
y Boy e, D rector, Ow stone
Case Study 4
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Designing Demand Review Programme Delivery |
2.15 Level3GrowthServicesImmerseImmerseisintendedtohelpcompaniesbuildbiggerprofitsthroughtheimplementationofdesign-ledstrategies. Immerseisthemostintensiveserviceaimedatmaturebusinesseswhoarehungryforgrowth,haveanappetitefornewideasandthewillingnesstoinvestinrealisingthemwiththesupportofaDesignAssociate.
2.16 Immerseoffersupto15daysofmentoringdeliveredovera12to18monthperiod.
Theservicealsoprovidesacohortofupto14clientSMEstheopportunityforpeer-to-peerlearningthroughaseriesofthreeworkshopsonthesubjectsofbrand,newproductdevelopmentanduserexperience.
2.17 Todate,deliverytargetsforImmersehavebeenverysmall,withasfewastenImmerseclientsengagedintheYorkshireregion.Immerseisperceivedtobeexpensiveandgiventhenature,depthandlengthoftheinterventionreturnsmaynotbeevidentuntilsometimeafterclientparticipation.Take-upoftheservicehasbeensignificantlyslowerthananticipated.
2.18 ImmerseisarguablybettersuitedtolargerSMEs.TheImmerseclientrecruitmentprocessmay improvethroughtheformationofstrategicrelationshipswithnational industrybodies,whereappropriate,andbuildonthesuccessesofearlierDesignCouncil pilotprogrammes
implemented inpartnershipwiththeBHHMA,theCIFandtheEEF.
2.19 OnlinesupportservicesTheDesigningDemandwebsitecontainsmanagedcontent.AdministrationofthesiteisundertakenbytheDesignCouncilsmarketinggroupwithinformationfeedssourcedfromtheDesigningDemandcentral team,fromtheDesignAssociatesandfromSMEclients.
2.20 Thewebsiteiscurrentlyanunder-utilisedandunder-resourcedservice,particularlygiventheroleitcouldplayinchannellingpotentialclientSMEstoparticipationintheprogramme.ThereviewhasfoundthatRDAs,deliverypartnersandclientSMEsdonotseethewebsiteasanintegralpartoftheDesigningDemandcustomerjourney.Allstakeholdersreported,however,thattheythoughtthewebsitecouldplayamoresignificantpart inthenational roll-outoftheDesigningDemandprogramme.
DesigningDemandservicedeliveryandfundingmodel
2.21 TheroleoftheDesigningDemandcentralteamandkeyprogrammeassetsTheDesigningDemandcentral teamhastenstaff.It iscurrentlyresponsiblefor:1.Newproductdevelopment2. TheprovisionofDesigningDemandservicecontent3.Knowledgemanagement,includingtheeffectivesharingofprogrammelearningamongclientSMEsandbetweentheregions4.Nationalmarketing,eventmanagementandcommunications5.Relationshipandcontractmanagementwiththeregions6. Therecruitment,training,managementandcontinuingprofessionaldevelopmentofDesignAssociates
7.QualityassuranceofDesignAssociatesandservicetools8.Thedevelopmentofprogrammeeffectivenessevaluationtools (regional implementation).
2.22 ItshouldbenotedthatthesizeofthecentralteamhasnotchangedsincethelaunchofDesigningDemand.Thisteamdoesnothavethecapacitytodelivermultipleregionalroll-outssimultaneously.
2.23 TherecruitmentandmanagementofDesignAssociatesThebestpracticeDesignAssociateselectionandrecruitmentprocess,developedoverthelast18months,hasbecomeakeyprogrammeasset.DesigningDemandcurrentlyhas23DesignAssociatesonitsrosterandtheDesigningDemandteamarecurrentlyrecruitingintheLondonareatosupporttheLDAsprogramme,whichlaunchedinJune2008.DesignAssociatesarerecruitedonaregionbyregionbasisinlinewiththe
programmeroll-out.ThecapacityoftheDesigningDemandteamtorecruit,inductandcoachnewDesignAssociatesimpactedontheabilityofthecentralteamtosupportthenationalroll-outoftheprogramme,andanumberofregionshavecommentedonthelownumberofDesignAssociatesemployedtomeetthenational requirement.
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| Executive Summary
Demand Regional DevelopmentAgencies and Delivery Partners
Figure 8
Design Council central function organisation chart
Kate Ward
EllieRuncie
National Programme
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Di
Pl
i ip ii
EEDA
SWRDA
SEEDA
BIC, Entrust
LDA
EMDA
YF
ONE
NWDA
Business Link
Business Link
Figure 7
Des gn ng
Sona Dahl
Desgn Assocate
Manager
Sarah Gardner
Programme
Content Offcer
Ashna Khan
Partnersh
Manager
Paul Travers
Knowedge &
Stakehoder Manager
Jessica Hinchliffe
Market ng
Execut ve 80%
Operations Content Partnership Marketing
Team
Co-ordnator
rector
Helen AldredProgramme
anner
Louise Conolly-SmithSenor Partnersh
Manager
Sarah GhirardiBrand & Marketng
Manager 20%
Jonathan BallProgramme
Strategst
AWM
Grant Thornton
West Midlands
Yorkshire
Wessex Enterprise
Wessex Enterprise
Oxford Innovation
DesigningDemandlive
DesigningDemandnotyetlive
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Designing Demand Review Programme Delivery |
2.24 TheDesignAssociateRecruitmentscheduleisoutlinedinFigure10.ThisscheduleisbasedontheCoxtargets,andtheassumptionthataDesignAssociatetypicallyworksoneortwodaysperweekwithDesigningDemandclientSMEs.
2.25 InadditiontotheDesignAssociateselectionandrecruitmentprocess,theDesigningDemandcentralteamisresponsibleforanumberofotherkeyprogrammeassets.Theseinclude:
DesignAssociateCodeofPractice: criteriaforengagementwiththeprogramme,arecordofsharedagreementbetweenDesignAssociateandDesignCouncil.
DesignAssociateTools: tohelpinformanddirecttheworkofDesignAssociates.1.WorkshopAssociateHandbookguidanceforthedeliveryofLevel1workshops.2.DesignAssociateHandbookacontinuallyupdatedreferenceguideforthedeliveryofLevel2and3services.
NewDesignAssociateInductionprocess: bestpracticeinductiondeliveredtoallnewDesignAssociatesrecruited.
NewDesignAssociateCoachingprocess: sixmonthsofcoachingforallnewDesignAssociates.
DesignAssociateReviews: conductedonaquarterlybasisbyregionaldeliverypartnerssupportedbytheDesigningDemandcentralteam.
Ongoingsupportonuseofmaterials/deliveryprogramme: thedevelopmentand
deploymentofanonlineresourceforDesignAssociateswithknowledgeexchange,amessageboardandregularnewsletter.
OngoingdevelopmentofDesignAssociates:deliveryofpersonalandcontinuousprofessionaldevelopmentopportunitiesthroughtailoredcontent,bestpracticeeventsandworkshops.
TheroleofDesignAssociates
DesignAssociateshavebeenpivotaltotheprogrammesday-to-dayoperation,itssuccessesandlastinglegacy.
Evaluation of the South Yorkshire Design Works or Generate Service, EKOS, 2007
2.26 DesignAssociatesareexperienceddesignmanagersapprovedtodeliveroneormoreoftheDesigningDemandservices.ADesignAssociateistypicallyaqualifieddesignerwhowillhaveworkedasadesignmanagerandledcreativeteamsacrossabroadrangeofsectors.Theywilloftenhaveundertakenformalbusinessmanagementtraining,havepracticalexperienceofdeliveringbusinessadviceandconsultancysupport,andarepartofawidernetworkwiththepotentialtoaddvaluetoanyDesigningDemandintervention.
2.27 OnceDesignAssociateshavesuccessfullynavigatedtherecruitmentprocess,theyareattachedtodifferentDesigningDemandservice levelsaccordingtotheirexperienceandcapabilities.Notall DesignAssociatesareapprovedtodeliverall oftheservices:thequalityoftheDesignAssociatesdrivesthequalityofthewholeDesigningDemandprogramme.
2.28 DuringthedeliveryofoneormoreoftheDesigningDemandservices,DesignAssociateswill:BeadesignadvocateProvidedesignmanagementadvice,bestpracticeandbusinesssupportUseDesignCounciltoolstoensurethatprojectobjectivesandimplicationsareunderstood
DrawonexperiencestohelpdefinetherightdesignprojectSupportthedevelopmentofadesignbriefShortlistanumberofappropriatedesignersfromwhichthecompanymaychooseAimtoleavealegacyofgooddesignmanagementwiththebusiness.
2.29 DesignAssociatesdonot:Adviseacompanytostartadesignproject ifthebusinesshasmorepressingpriorities
UndermineanyexistingadvisorsordesignersTellthecompanywhichdesignertouseDirectlypromoteorselltheirservicestotheclientActuallydesigntheproduct,systemorservice.
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| Executive Summary
Figure 9
Design Associate recruitmentprocess
Figure 10
Design Associate recruitmentschedule
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3012/08
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Actualasat06/2008
Forecastasat12/2008inclusiveofongoingrecruitmentactivity
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Designing Demand Review Programme Delivery |
2.30 ThereisevidencetoshowthatDesignAssociatesdoundertakearangeofactivitiesoutsideoftheircontractedobligationsincludingrespondingtocallsandwrittenmessagesfromclientSMEsthroughouttheperiodofadesignintervention,attendingunscheduledandnon-chargeablemeetings,andprovidingadviceonarangeofbusinessactivitiesthatareoutsideoftheDesigningDemandservicescopeorduration.TheDesignAssociatefeestructureis600perdayforLevel2and3servicesand1,000perdayforLevel1workshoppreparationanddelivery,inclusiveofallexpenses5.
ThisdepthofunfundedengagementwithclientSMEsgeneratesahugeamountofgoodwill,andshouldberecognisedasasignificantifdifficult-to-measureoutcomeoftheDesigningDemandprogramme.
2.31 TheroleoftheRegionalDevelopmentAgenciesTheRDAsareresponsibleformanagingtheBusinessLinkservice,forco-ordinatingbusinesssupportineachregionandfordevelopingRegionalEconomicStrategiesinrespectofbusinesssupport.TheRDAswillensureconsistencywithBSSPinprovidingandprocuringbusinesssupport,andinleadingthedevelopmentofregionalbusinesssupportstrategy.Specificallyintheroll-outofDesigningDemand,RDAsfundtheservice,managecontractingwiththeDesignCouncil,managebudgetallocation,andareresponsibleforsecuringfundingfromexternalsourcessuchastheERDF.RDAsarealsoresponsibleforprocuringandmanagingtheregionalDeliveryPartner.
2.32 TheroleofDeliveryPartnersDeliveryPartnersarecontractedbytheRDAstomanagetheroll-outoftheprogrammeintheregion.ThesepartnersrangefromtheregionalBusinessLinkstoprofessionalservicesfirms.DeliveryPartnersareresponsibleforclientprospecting,clientselectionandreferralontotheDesigningDemandprogramme.TheyarealsoresponsibleforcontractingwithDesignAssociates,andforundertakingprogrammemonitoringactivities.
2.33 TheroleofclientSMEsSMEsacceptedontotheBusinessSupportServiceproductsmustdemonstratethattheyhavethecapacitytoinvestpeople,timeandresourcesandthatseniormanagementwhoareintegraltotheprocesswillbeavailabletoparticipatefullyintheprogrammesactivitiesinorderthatdesignisembeddedintothestrategicdecision
makingprocessoftheclientSME.
TheDesigningDemandcustomerjourney
2.34 TheDesigningDemandcustomerjourneyisfundamentaltothesuccessoftheprogramme.Thequalityofadesigninterventionispositivelycorrelatedtoclientreadiness.GoodqualitychannelmanagementwillensurethatclientsaccessDesigningDemandservicesattherightpointintheirbusinessdevelopment.
ThequalityoftheoutcomedependsonahighqualityDesignAssociate,agoodclientwhoisreadyandwillingtoengagewiththeprogramme,andagooddesigner.Ifthequalityofanyofthesethreefalldownthen
thequalityandvalueoftheprojectcaneasilybejeopardised.Evan Kitsell, Design Associate
2.35 TheSMEcustomerjourneyThemainchanneltoSMEparticipationintheDesigningDemandprogrammeisintendedtobetheBusinessLinkportal.ClientselectionisdeterminedthroughtheIDBprocessInformation,Diagnostic,Brokerage.
2.36 Insomecases,theDesigningDemandcustomerjourneyincludesreferralstoorfromotherregionalbusinesssupportprogrammesorthroughtheprofessionalnetworksoftheDesignAssociate.SMEshavealsolearnedabouttheprogrammethroughthenetworksofdeliverypartnersorfromotherSMEswhohaveparticipatedonthe
programme.Inpractice,theBusinessLinkportalandexistingclientbasehasbeenthepreferred,butnottheonly,channelintotheDesigningDemandprogramme.TheDesignCouncil hasdevelopeddetailedclientselectionguidelinesforeachoftheLevel2andLevel3servicesbutthesearenotmandatorytoqualifyclientsforparticipation.
5ThiscoststructurewasindependentlyreviewedinJuly2008byOctagonHumanResources.Thereport, Design Associates: Industry Position,Beneft and Cost concludedthatthesedayrateswerestillsuitable,giventhedifficultyinbenchmarkingconsultancyrateswherethereisanestablishedmarketfailure.However,itshouldbenotedthatthemajorityofDesignAssociatescommandmuchhigherratesintheirrespectiveprivatepractices.
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ItisalsoapparentthatanumberofGenerateandImmerseclientshavebeenrecruitedthroughtheirparticipationinbusinessworkshops.
2.37 SMEclientfeedbackrevealsthatparticipantshadnopreconceptionoftheroletheDesigningDemandinterventionscouldplayinsupportingtheirbusinesses.SMEswhoparticipatedsuccessfullyintheLevel2andLevel3interventionsdo,however,shareanumberofcommoncharacteristics,regardlessofregionalor
geographicindustryconcentrations:AnSMEisoperatingatasteadystatebutgrowthhasplateauedCompetitivepressureisdrivingdownmarginsanderodingmarket-shareWageand/orrawmaterialinflationisdrivingupcostsBusinessstrategylacksnewideasanddirectionThereissparseinvestmentincreativeorotherexternalexpertiseThereislowemployeeengagement.
2.38 ThetechnologyventurecustomerjourneyThecustomerjourneyofsuccessfultechnologyventureclientshasdifferedfromthecustomerjourneyofestablishedSMEs.TechnologyventureclientshavebeenattractedtotheprogrammeontheadviceoftrustedtechnologynetworksuniversityTechnologyTransferOffices,incubationcentresorscienceparks.Innovateclientstendnottohave
accessedDesigningDemandthroughtheregionalBusinessLinknetworks.
ThetrustedadvisornetworkthroughtheuniversityiswhyweendedupontheprogrammeInnovateisperfectforguidingearlystagecompaniesthrougharapidperiodofgrowth.DesigningDemandhasanadverseselectionproblemintheregionsfortechnologyventurestart-upsthosewhoknowaboutdesignwillalreadybesoldandseekingassistance,buttheguyswhoreallyneeditdontthinktheydo.
Billy Boyle, Owlstone
2.39 Todate,onlyaverysmallnumberofearlytechnologyventureclientshaveparticipated
inDesigningDemandInnovate.JustasbusinesschampionsarerequiredtochampiondesignintheregionalSMEbusinesscommunities,theleadershipofInnovationCentresshouldbepivotalincommunicatingthevalueofdesigntoatechnologystart-up.Venturecapitalistsalsohavearoletoplayinpromotingthevalueofdesignthinkingtoastart-uptryingtoachieveinvestorreadiness.
2.40 TheimpactofBSSPontheDesigningDemandcustomerjourneyLookingaheadtotheremainderofthecurrentCSRandtopost-201011,theDesigningDemandcustomerjourneywillbecomealignedwiththoseofotherfundedbusinesssupportprogrammesunderBSSP. ThisstandardisationandalignmentofthecustomerjourneyunderBSSPcanonlybenefitDesigningDemandclientSMEs.However,aspreviouslynoted,anumberofotherpotentialchannelshavebeendeveloped,oftenonaregionalbasis,andthesechannelsshouldbemaintainedand
strengthenedwithDesignCouncilsupportatanationallevelthroughouttheremainderoftheCSRperiod.
Plannedprogrammedelivery:theCoxtargets
2.41 TheDesigningDemanddeliverytargetsto201011wereadoptedfromrecommendationsmadeinthe2005 Cox Review.Thetotaldeliverytargetisdividedbetweenthedifferentservicelevels.
2.42 TheDesignCouncilenvisagedthattheregionalroll-outofDesigningDemandwouldbephasedoverthethree-yearCSR,andthatitwouldtakeuptotwoyearstocontractwithallnineoftheEnglishRDAs.TheCoxReviewalsoanticipatedthatthethreedevolvednations,NorthernIreland,ScotlandandWales,wouldalsobeinvolvedinthefuture
deliveryoftheprogramme,andwerethereforeincludedinthetotaldeliverytarget.ThetargetbreakdownassumedabalancedportfolioofthedifferentlevelsoftheDesigningDemandservice,equallydistributedacrossthenineEnglishregionsandthreedevolvednations.HoweverthiswasnotatthetimeagreedwiththeRDAs.
8/14/2019 Designing
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