Why?

Design makes R&D expenditure more effective

Of all the core functions of the most successful companies, design and innovation has the most competitive value - and is managed with the least discipline.

Money Isn't Everything, Booz Allen Hamilton, 2004

The Irish Strategy for Science Technology and Innovation published at the end of June 2006 focuses on stimulating R&D; this is the necessary first step in achieving the goal of 3% of GDP being invested in R&D as outlined in the Lisbon summit.

While spend on R&D is an important input, it is not very good at predicting whether the R&D will actually be successful which, in the end, is a better measure of effectiveness. A recent study by Booz Allen Hamilton iof the 1000 most innovative, publicly held companies in the world demonstrated that there was no correlation between the amount of money spent on R&D and the primary measures of economic success.

A far better indicator of success was how effectively companies managed the innovation process of idea generation, product selection, development and commercialisation; in other words, the design process.ii The study showed that those companies that invested resources in the design process significantly outperformed those that did not.

Picture of Samsung circular printer concept

Circular printer concept. Credit: Samsung Electronics Co, Ltd, and Seoul National University, Korea

Case study: Samsung

Samsung saw design as a major differentiator. They added a chief design officer to ensure that designers and engineers work to deliver what the customer wants. From 2000 to 2002, the company increased its number of new product introductions by 67 percent (to 30,000) without increasing the number of parts required.

Where companies do proactively manage their innovation processes, the impact is very tangible. On average UK businesses expected a return of 50% on their most successful design projects last year but actually got a return of more than 75%. iii

In order to capitalise fully on planned investment in R&D, companies must also ensure that the design processes that support R&D are of the highest quality and deliver tangible Return on Innovation (ROI).

A narrow interpretation of design ignores the strategic value of design in the corporation. Design is only secondarily about pretty objects and primarily about a whole approach to doing business and providing value.

Tom Peters

why?

Why is design important? Our research shows Irish companies that value design innovate more often. Not only that, but Irish companies that value design innovate more successfully. And those companies that integrate design more strategically within their organisations experience greater demand for their goods and services.

what?

What is design innovation? Many people are describing the same thing by different names and we want to create a common language around design innovation, thinking and practice.

how?

This isn’t rocket science but it is the next ‘big thing’. Understanding your users provides context for your innovation efforts and leads to greater success in the marketplace. Our practical programmes can help make you more competitive.

who?

We are here to help. There is also a broader network of support for you and your organisation. And if you’re still not convinced of design’s impact on innovation, see how other individuals, organisations and countries are competing through design.