A study published in January 2012 of 1,380 Finnish companies shows that most businesses don't consider design to be a competitive advantage. Quality, reliability in delivery, sales, pricing, marketing, logistics, and brand are more important, according to the respondents.
There hasn't been too much research on the business value of design. Some Finnish studies seem to suggest that design investments have a positive return. The best performers have managed to integrate design with R&D, marketing, and strategy. The benefits to this approach include accelerated growth of production and sales, and product and service differentiation.
The researchers asked, “what is design?” Four out of five respondents replied that it is the aesthetic design of objects. The responses that design "means customer centricity" or "is vital to a company's existence" got the least support.
Less than 20 percent of the companies had invested considerably in design in the last two years. Little over 30 percent had invested slightly, and 10 percent had made no design investments whatsoever.
Those that had invested some or nothing reasoned that design was not suitable in their industry, or that they could do well without it. One-fifth that had negative attitudes said that design would take too much time and resources. Over half of the skeptics felt that hiring a designer would be too costly or difficult.
Those who responded that design is the basis of their operations had to answer additional questions. Seventy-eight percent of them said that design is an element of all development of products or services. Six out of ten thought that design comes from inside the company, and 20 percent responded that it derives from the customer.
Why does design improve quality, according to the supporters? Sixty percent felt that design improves the usability, ergonomics, and durability of products. It reduces waste and errors, and makes products and services environmentally friendly. It also helps companies differentiate themselves from their competitors.
Companies that rely on design said that it speeds up market entries and that customers are willing to pay more for great design. Those who incorporate design into their strategy consider it to be a resource.
The study "What design means to companies" was conducted by the Association for Finnish Work in co-operation with four other Finnish associations.
Charts by AE Partners Oy
