design advantage
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COMPETITIVE
ADVANTAGETHROUGH DESIGN
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‘One of the great functions of design is to be able
to project and embody the future rather than the
present: that is where added value comes from.’
Sir Christopher Frayling, Chairman, Design Council
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CONTENTS
04 GO
08 SMILE
12 LIFEBUILDING COMPANY
16 HEWLETT PACKARD
20 TESCO
24 UNILEVER
28 DUCHY ORIGINALS
32 BLACK & DECKER
36 IKEA
40 SMITH & NEPHEW
44 CHARCOLONLINE
48 USEFUL INFORMATION
07 BRANDING
11 E-BUSINESS
15 LIFESTYLE & COMMUNITY
19 INNOVATION CULTURE
23 CUSTOMER FOCUS
27 ENVIRONMENT &
SUSTAINABILITY
31 DESIGN COSTS
35 PRODUCT DESIGN
39 STRATEGIC DESIGN
43 DESIGN
THE BUSINESS CASE
47 CONNECTING
DESIGN & MARKETING
ADVICESTORIES
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The deregulation of air travel in 1997 spawned a quartet of low-cost airlines in the
UK: Go, Easyjet, Ryanair and the now defunct Debonair. Rather than just entering a
head to head battle with the other airlines, Go, a former British Airways subsidiary,decided to set itself apart from the competition by deliberately taking on the High
Street retailers for a slice of the growing leisure spend.
STORY 1 GO
GO COMPETES WITH THE HIGH STREETTO GET PASSENGERS ON BOARD
04
Barbara Cassani
Chief Executive To achieve this, Go’s design and
marketing strategy was aimed at
persuading the increasing number of ABC1s with disposable income that a trip
to Barcelona, Bilbao or Venice was an
alternative to a meal out or a new pair of
designer trousers. Hence Go positioned
itself as a classier, more design-
conscious airline than the competition,
while offering equally cheap fares.
Because it entered the market slightly
later than its
competitors,David Magliano,
Marketing Director
of Go, was able to
carry out detailed
observational
research. He realised that the airline had
three potential markets: passengers
visiting friends or relatives, self-employed
and middle-tier business people and
pure leisure travellers. Most of thesecould afford a more expensive option
but preferred to spend their money
on something else. What would attract
them was reliability and style, plus afew affordable extras such as
allocated seating.
Go used branding and customer focused
design (both up front and behind the
scenes in its
business operation)
to build a
competitive
position in themarket. Its logo
and overall image are modern and
restrained - in contrast to the brash
‘tabloid’ style of its main competitors.
Both its brand and advertising are
designed to appeal to upmarket
professionals - visual, stylish, clean,
crisp, with a clear invitation to travel.
It aims to emulate well-known retailers
such as Ikea and Gap and banks likeFirst Direct.
Go’s business model sees
retailers, not
just airlines, as
competition
A restrained
image sets Go
apart from
brasher rivals
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‘We measure our own customers’
satisfaction and over 80% of customers
rate our overall experience as Good or Excellent. This is well above the consumer
industry norm so we believe we are
getting it right.’
David Magliano, Director of Marketing, Go
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You don’t see many people with a smile on their face when they are queueing in a
bank. So when the Co-operative Bank launched smile, the UK’s first full-service
internet bank, in 1999, the first principle it established was that it had to bepersonalised and user-friendly.
FACT BOX
COMPANY smile
CHIEF EXECUTIVE Bob Head
PRODUCTS & SERVICES Online banking
ACCOUNT HOLDERS 500,000 in first
18 months
SECURITY OF SITE BS7799 - Informat ion
Security management
CUSTOMER FOCUS Active e-panel of
500 customers
TURNOVER - 2000 £429.0 million
Co-operative Bank. Up
£25.7 million on 1999
OPERATING PROFIT - 2000 £96.3 million
(before tax) Co-operative Bank
WEBSITE www.smile.co.uk
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STORY 2 SMILE
PUTTING A SMILE ON THE FACEOF A BANK’S CUSTOMERS
To underpin these core brand values a
coherent design strategy was needed,
to encompass:
• Branding - to attract potential
customers to try something really new
• Customer needs - to keep clients with
the bank, and ensure they recommend
it to their friends!
• e-business - a genuine solution, not a
trendy, not-very-useful add-on.
smile’s logo with bright pink branding
was a deliberate strategy to enable it to
stand out from the crowd among the
major banks. Thecolour pink was
chosen because
it clearly separated
it from the usual
blues, greens and
reds of conventional
banks. And the design, reminiscent of
e-mail sign-off ‘smileys’, is appealing
to the technological generation that
would most likely be the bank’s firstcustomers.
Yet design means much more to smile
than creating a friendly logo and a
shocking pink house style. Design
principles drive the way the bank’s printed
literature is written and presented, the
informal but efficient telephone mannerof the staff and, most importantly of
all, the development of its website.
To ensure reliability, smile has always
used technology that is widely available
and which allows as many customers
as possible to access the site quickly
and easily.
Chief Executive Bob Head believes thatsmile’s internet design has been the
key to business success. ‘Simple clean
design and clear language have ensured
that smile customers like to use our
site and recommend it to their friends.
At the same time, we have to deliver
products to customers at a low cost to
the bank and customer alike. The result
is a website which is straightforward,
simple, human and, above all, easyto navigate.’
Design drives
every aspect
of business,
right down to
telephone manner
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‘Physical products are becoming containers for the delivery of services and experiences and it would surprise me if
housing doesn’t follow that route.’
John Weir, Group Design Director, Wilson Connolly
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The example of house builder Wilson Connolly is a case in
point. The company is attempting to change attitudes to new
housing developments by adapting its offer to suit people’s
lifestyles and by addressing common concerns rather than trying
to persuade people they want something that they don’t.
In a broader context, designers have a responsibility to address
the issues of how we live and how the products and services
we use on a day-to-day basis affect the people immediately
around us. Improving the design and quality of public spaces
and buildings, public transport and local amenities of course
helps to generate a spirit of community and well-being. And
common concerns, such as an increasing crime rate, how to
cater for an ageing population and how to deal with pressing
ecological issues can all be tackled effectively by a modicumof lateral thinking and inventive design.
In some ways, design that has a positive effect on the
community is just plain common sense. But often this involves
stepping away from entrenched thinking and examining matters
from a fresh perspective, which is easier said than done.
Good lighting and visibility not only deter thieves, but make
people feel safer. The same is true of other mesures that
hamper crime or remove temptation, such as car immobilisers,
bicycle pods at rail stations and handbag clasps on
restaurant seats.
ADVICE 3 LIFESTYLE & COMMUNITY
Design has a key role to play, not only in helping
businesses become more profitable, but also in creating
better environments and communities for us to live in.
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The recent high-profile proposed merger of Hewlett Packard and Compaq illustrates
the relentless need for growth and worldwide reach in the computer industry. HPbelieves that we’re heading toward a world where everything will be connected by
way of a new generation of technology linked to the internet. What is astonishing is
how quickly this is happening.
FACT BOX
COMPANY Hewlett Packard
CHAIRMAN & CEO Carly Fiorina
EMPLOYEES 89,000 (pre-merger)
PRODUCTS & SERVICES IT, hardware,
software and solutions
TURNOVER - 2000 $48.7 billion
TURNOVER - 1999 $42.3 billion
PROPOSED ACQUISITION Compaq
NEW COMPANY VALUE $87 billion
as of Sept 2001
WEBSITE www.hp.com
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STORY 4 HEWLETT PACKARD
WRAPPING THE FUTURE AROUNDTHE INTERNET
This case study was written prior to the proposed merger of HP and Compaq.
At the same time, there is a strong
downward pressure on prices. What’s
clear today is that value rarely lies
solely in the product itself, but in the
service delivered through the product,
which is why more companies are
wrapping them in e-services.
HP believes that it must display six
inherent traits to survive in the
internet era: inventiveness, optimism,
inclusiveness, humanity, quality-
consciousness and trustworthiness.
HP still sees itself as a company of
inventors in the tradition of Bill Hewlett
and Dave Packard, who started the
business in a garage. However,
inventiveness now is seen to be vital to
business success: the smart, ingenious
thing that others will admire and respect
- and pay for.
These traits are wrapped around the HP
brand character and soul. The soul
defines what HP stands for in an
internet age, and sits at the core. The
character defines how HP acts and
communicates, and performance
indicates what HP says and does to
make it all ring true.
What happens when product design
goes way beyond the box?
One activity which highlights all the
characteristics of an innovative culture is
the Superdome high-end server project.
The HP Superdome
product team
designed a
whole customer
experience into
their top line UNIX
server. By harnessing the collective
know-how of far-flung, interdisciplinary
teams, the product team learned it could
make the whole process of planning,
purchasing, integrating and maintaining
Value lies not in
the product, but
in the service it
delivers
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‘Our core values, and the
rules of the Garage [Hewlett
Packard was founded by
two inventors working froma garage], are the heart and
shining soul of the system.
These are among our
greatest, most compelling
competitive advantages.’
Carly Fiorina, Chairman, President & CEO,Hewlett Packard
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The rollercoaster world of e-commerce is still in its infancy. New technology
inevitably attracts entrepreneurs, but the recent spectacular crash of several
internet-based businesses illustrates that the key to successful innovation is often
the ability to harness new technology to mature businesses with strong brand
names. Oh, and don’t forget to put the customers first!
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STORY 5 TESCO
THE BIG BRAND THAT HASCRACKED THE ART OF E-RETAILING
In the mid 1990s, many first-timers
launched unproven business concepts
on the internet. Tesco.com was
launched initially as a defence against
all these new e-retailers, however
Britain’s top retailer has now proved
that e-retailing can be highly successful
if the business model is well designed.
Tesco was one of the first retailers to
go online, back in 1995 and, to be fair,
its website suffered a few early jitters
before developing
into the sleek and
intuitive site that
we see today.
More important
than the website
though was what lay behind it and hereis where the company began to succeed.
Tesco decided from the start that the best
economic model was structured around
its existing assets and so it used in-store
staff to pick items ordered over the
internet off the shelves, rather than
making up orders from a separate
warehouse. While other retailers mainly
opted for centralised warehouses,
Tesco correctly forecast - against allthe received wisdom at the time - that
warehousing was a recipe for disaster.
John Browett, Chief Executive of
Tesco.com, explains: ‘Running our home
delivery service from the stores gives
customers the best service and value.
Delivery times can be kept below 30
minutes from store to house, keeping
costs down, and the range is hugebecause stores stock so many products.’
Terry Leahy
Chief Executive,
Tesco
John Browett
Chief Executive,
Tesco.com
Tesco realised
the value of its
existing assets to
its next venture
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‘Our dot com business is an important way of getting in
touch with our customers and reaching out to new ones.’
Lucy Neville-Rolfe, Corporate Affairs Director, Tesco
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You don’t normally associate detergents with design. Washing powders and liquids
are hardly the most glamorous part of the weekly shop, and the arrival of ‘designer
detergents’ in supermarkets is clearly still some way off. However, design thinkingdoes help Unilever solve an extremely tricky equation in linking scientific research,
customer research, marketing, business strategy and environmental issues to evolve
the product offering we see on our shelves.
FACT BOX
COMPANY Unilever
CHAIRMEN Antony Burgmans
and Niall FitzGerald
PRODUCTS & SERVICES Consumer products
UK MARKET SHARE - 27%
HOUSEHOLD DETERGENTS
(3 YEARS)
DETERGENT IMPACT Reduced by 125,000
tonnes a year in Europe
TURNOVER - 2000 £28,963 million
up 16% on 1999
WEBSITES www.unilever.co.uk
www.unilever.com
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STORY 6 UNILEVER
KEEP TAKING THE TABLETS
Persil Tablets are a good example.
Persil, manufactured by Unilever, has a
dominant 27% share of the fiercelycompetitive £1 billion UK household
detergent market, where players have to
be highly innovative to remain competitive.
Unilever considers design to be crucial
in pulling together its research and
development and manufacturing
operations to develop the products
which help secure more market share.
But just as important to the company are
its targets for sustainable development,
defined as ‘meeting
the needs of the
present without
compromising the
ability of future
generations to
meet their needs’.
Its policies include using environmental
management tools to evaluate thepotential whole-life effects of products
from the extraction and processing of
raw materials through manufacturing,
packaging, distribution, use and
eventual disposal.
Environmental concern is not the sole
preserve of Unilever. The European
detergent industry as a whole has
taken steps to address environmental
issues by developing a Code of Good
Environmental Practice, backed by an
awareness campaign aiming to show
consumers the contribution they can
make to sustainability by changing the
way they wash their clothes.
However, despite efforts like these,
good performance is generally still
more important to customers than
environmental issues when they choose
their detergent. Various eco-friendly
detergents have been launched over
the last few years only to fail simplybecause they don’t do their job as well
as conventional detergents.
Persil tablets
Non-biological tablets
Design binds
research and
manufacturing
to create
new products
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‘We have a consumer and
citizen agenda. The task is
to design a product that is
consumer friendly but which
is also environmentally
sustainable’
Dr Hamish Will, Environmental
Assurance Manager, Unilever
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In this relatively conservative marketplace
a new product has to carry a simple
proposition and offer obvious benefits.
Past successes and failures illustrate the
point. In the 1970s, low temperature
bleaching agents in washing powdersmeant customers could reduce their
washing from 90° to 60° and cut their
energy bills, but
the concentrated
powders of the
1990s met with
resistance because
people tended to
use more than necessary and so came to
see the product as bad value for money.
Unilever’s designers had to find a product
that brought together the requirements
of eco-friendliness, performance and
convenience. They came up with a
simple idea - detergent tablets - which
proved to be the breakthrough the
company had been looking for.
They were launched in the UK and France
in 1998 after seven years of R&D. At
the time, 60% of the market was in big
box powders, 20% was in liquids and the
remainder was in concentrated powders.
Unilever hoped tablets would have a
20% share in five to six years by moving
customers from big box powders and
concentrates. However, tablets have
already secured a 25% share in just
three years.
Hamish Will, Unilever’s Environmental
Assurance Manager for Home Care
products, likens the convenience of
detergent tablets
with that of
teabags: ‘Bothproducts are
pre-measured,
which means
convenience and
minimum waste. Although we tried to
get across the environmental message
with concentrated powders, it simply
didn’t work because there was very little
perceived consumer advantage.
‘Consumers want to do the right thing,
but when it comes to the crunch they
do what suits them. We have, therefore,
both a consumer and a citizen agenda.
The trick is to provide a product which
is consumer friendly but also
environmentally sustainable. Detergent
tablets fulfil both criteria.’
Will added: ‘The success of detergent
tablets has reduced the volume of
detergent used in
Europe by
125,000 tonnes a
year. We have no
doubt that this
new unit dose
format represents an opportunity to
make further major contributions
towards the sustainable consumption
of detergents.’
Niall FitzGerald &
Antony Burgmans
Chairmen of Unilever
‘Design is the creative harmonic between culture and industry, technology and
consumers, and engineering and art.’ Dick Powell, Director, Seymour Powell
New products
must carry simple
propositions and
clear benefits
Tablets combine
customer
advantage with
environmental
benefits
Using tablets
has cut overall
detergent use
in Europe
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It’s just as clear that such a shift in attitudes needs to be
adopted by businesses too. So how close is it to materialising?
Recent research by the Design Council suggests that British
businesses have some catching up to do with their European
counterparts when it comes to seeing sustainable design as
an opportunity to enhance competitiveness and build brand
values rather than a way of staying within regulations. While
only 3% of Swedish businesses, for instance, saw designing
for sustainability as a product development cost, 21% of
British companies saw it that way. In Sweden, 76% viewed it
as an investment, compared to only 38% in the UK. Of the
German businesses surveyed, 35% said they pursued
sustainability in the name of competitiveness, compared to
only 18% in the UK. A reactive attitude by UK businesses is
suggested by the fact that 36% said customer demand was
the main driver for sustainability.
Of course, figures like these may simply be a reflection not
so much of some in-built British reticence as the fact that
sustainability has been on the business agenda longer in
some European countries than in the UK. Nevertheless some
UK companies are already taking a proactive stance. Unilever’s
continued efforts to put sustainability at the heart of its work
prove that it’s possible to tackle environmental issues
positively and strategically and not regard them as a tiresome
obstacle. With guidance from external advisors such as BjornStigson, President of the World Business Council for
Sustainable Development, and Jonathon Porritt, Programme
Director of Forum for the Future, it has developed tools such
as Life Cycle Assessment which gauge the environmental
impact of products and help to spur innovation rather than
stifle profitability.
For others, ready access to information on the possibilities of
sustainable design would be a major step in the right direction.
Then they could start to integrate appropriate programmes
into their business strategy. In the UK too many companies
are unable to look beyond principle-specific issues such as
waste management and recyclable materials, rather than
taking a more holistic approach which would result in more
far-reaching, innovative solutions. If the issue is given an
appropriate priority at the beginning of the design process,
rather than tacked on as an afterthought, the chances are
that more breakthroughs will follow.
Taking a leaf from more progressive countries, exchanging
ideas, creating forums for debate and sharing information are
all positive measures that could and should be taken. Good
practice should be highlighted, encouraged and aided with help
from relevant industry and governmental bodies. Armed with
relevant information and perhaps even coaxed by incentives,
companies can put more energy and initiative into sustainable
strategy. Sustainability is something that most companies
realise will become ever-more important to the way they dobusiness. They just need the will and necessary tools to
integrate it into their corporate culture.
It’s estimated that 25% of vacuum cleaners, 60% of stereo systems and an
incredible 90% of PCs still function perfectly well when people decide to get rid
of them. It’s clear that if the highly commendable goals of sustainable living
and energy conservation are to be met, a sea change in consumer attitudes
and behaviour needs to be initiated.
ADVICE 6 ENVIRONMENT & SUSTAINABILITY
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Duchy Originals is the organic food brand established by The Prince of Wales in 1990.
This followed the establishment of a 450-acre organic farm on the estate at Highgrove
in the mid-1980s. By the early 1990s, the estate was producing sufficient crops to
turn them into commercial products, and this led to the idea of establishing a food
brand which would actively encourage the establishment of more organic farming and
food production. A secondary objective was to raise money for charity, namely The
Prince of Wales’s Charitable Foundation.
FACT BOX
COMPANY Duchy Originals
MANAGING DIRECTOR Belinda Gooding
COMPANY SIZE Seven employees
PRODUCTS & SERVICES Organic food and drink
SALES - 2000 £12 million
CHARITY DONATION - £1.3 million
1999-2001
EXPORT MARKETS USA, Germany, Japan
WEBSITE www.duchyoriginals.com
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STORY 7 DUCHY ORIGINALS
THE ROYAL BISCUIT WITHAN ORGANIC MESSAGE
Duchy Originals now has a strongly
branded range of organic food products
that sets out to persuade the publicthat sustainably produced comestibles
are also very good to eat.
According to Fiona Gately, PR and
Communications Manager, Duchy
Originals products exemplify what organic
farming is about. ‘We launched the brand
in 1992 with Oaten Biscuits made with
Highgrove wheat and oats. They were
attractively packaged with a printedexplanation of the wheat-growing and
manufacturing process.’
The original biscuit took about 18 months
to develop in partnership with Walkers
Shortbread and now all Duchy Originals
products are produced under licence.
The source of the raw materials is also
more diversified, although much stillcomes from Highgrove, including the
recently launched Duchy Originals Organic
Milk from the farm’s Ayrshire herd.
Despite the proselytising motive behind
the launch of Duchy Originals, the
business is run onstrictly commercial
lines. Costs are
kept to a minimum
through the
licensing structure,
enabling the firm
to be run by a small core team. This
team handles sales, marketing and
new product development, while
manufacturing and distribution arehandled by the licensees.
The company spends no money on
advertising, so depends entirely on
in-store promotional activity, public
relations and high quality packaging to
develop brand awareness and tempt
new customers.
Fiona Gately emphasises that packaging
is the key to the brand. ‘Packaging has
to tell people what the brand and the
Combining tasty
food with sound
business and a
pro-organic
message
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product are about, so we rely heavily on
good design. A couple of years ago we
needed to develop a consistent design
to give us a clear brand identity across
a growing product range. Being organic,our products most often sit alongside
the supermarket’s own label equivalent.
The trend towards merchandising organic
foods within the product category,
rather than in organic blocks, means
that the products are increasingly sold
beside mainstream brands as well.
They therefore need to stand out and
compete on the shelf.’
Customer research is important. Gately
adds: ‘Research shows that people will
come to the brand
because they know
the connection.
A lot of people
first buy the
products because they are aware of
The Prince of Wales’s views in theorganic and environmental fields, and
it does help that many customers like
the fact that the profits go to charity.
However, customers will only make
repeat purchases if they like the products
as much as the principles behind them.
‘But perhaps most importantly, Duchy
Originals is about innovation. While the
products may seem traditional, there is
always something different - an ingredient
or a process - that is not available in
other products. The objective of the
brand is to deliver something new to the
sector and each product has to have its
own identity. A question The Prince of
Wales always asks is “Is it original?’’’
A great effort is also being made to
encourage other farmers within the Duchy
of Cornwall estate
to convert to
organic farming, to
provide a potential
source of organic
raw materials for
the future. At the same time, overseas
links are being set up to ensure a
sustainable and reliable source of crops,
such as organic cocoa and ginger, which
cannot be grown in the UK.
Although products are exported to the
USA, Japan and Germany, Duchy
Originals is concentrating its efforts on
the home market. Judging from therapid growth in sales to £12 million,
and the brand’s presence in Tesco,
Sainsbury’s, Waitrose and Safeway, in
addition to specialist stores all over the
UK, this seems to be working well.
Furthermore, The Prince of Wales’s
Charitable Foundation has received a
donation this year of £580,000 out of
Duchy Originals’ profits, an amount
which the company aims to boost to
£1 million within the next five years.
‘One of the missions of The Prince of Wales’s organic food brand is to persuade
the British public that organic farming is vital to the long-term sustainability of
the planet and good use of design is helping to achieve that aim.’
Fiona Gately, PR and Communications Manager, Duchy Originals
Branding conveys
tradition and
innovation
Farmers are
being encouraged
to grow
organically
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But they’re missing the point. The scope and potential of design
within a business context is far reaching - among other things, it
can contribute new ideas and approaches, make your business
processes more effective, offer knowledge and expertise in
relevant areas, and improve strategic planning and thinking.
Of course you can pick and choose from these various offerings
- you may need one, a combination or all of them. It’s also worth
remembering that in the longer term, good design solutions
can have a tangible effect on profit margins, customer relationsand the perception of your brand. Design may not come cheap,
but the savings and benefits it can achieve easily outstrip
initial costs.
Once you’ve decided to invest in design, you’ll need to decide
what type of agency is most appropriate to your requirements.
There are many different outlooks and set-ups and you’ll find
that professional charges vary considerably depending on
location, specialism and experience.
Whichever designer you decide to hire, you will need to supply
a design brief and an indication of the budget you will be
making available.
Larger, multi-disciplinary agencies offer a ‘one-stop shop’,
providing a holistic approach and integrating design skills and
expertise in a number of different areas. This type of agency,
for example, could tackle an integrated response to a brief
combining contributions from hardware and software designers,
design psychologists and researchers. They can see a project
through from start to finish, commencing with research, moving
through to concept development, and then on to testing and
engineering of the product or service.
But you can expect to pay handsomely for this array of skill sets
as these agencies represent the upper end of the market.
Alternatively, you could employ a single-discipline agency, which
specialises in one particular area and can deliver focused,quality expertise. This type of agency can, where necessary,
bring in people with other skills through its network of contacts.
Finally, you could take a chance on a raw young designer, just
starting out in their career, from whom you can expect inspiring,
perhaps even provocative work. On the other hand, you’ll
probably have to provide more input yourself and exercise a
greater level of control.
This is a general guide - the main point is to consider exactly
what you need and cut your cloth accordingly.
No one likes spending money if they don’t have to. That’s not only sound
business sense, it’s human nature. And it’s also one of the underlying
(if misguided) reasons that companies are reluctant to invest in design -
many feel it’s an unnecessary, not to mention hefty, expense.
ADVICE 7 DESIGN COSTS
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Every time you turn on the television, there seems to be another programme about
home or garden improvements. This has led to an increase in demand for powertools, but consumer trends are changing and there is a need for a constant flow of
innovative products. That is why market leader Black & Decker places paramount
importance on new product design and development.
FACT BOX
COMPANY Black & Decker
CHIEF EXECUTIVE Nolan D Archibald
Chairman, President
and CEO (US)
PRESIDENT Ian R Carter
President - Europe
Power Tools and
Accessories group
PRODUCTS & SERVICES Consumer Tools, DIY
Divisions: Consumer
power tools, outdoor,
cleaning, accessories
TURNOVER - 2000 $4.56 billion
(worldwide)
TURNOVER - 1999 $4.52 billion
(worldwide)
OPERATINGPROFIT- 2000 Net earnings
$282 million
WEBSITES
www.blackanddecker.com (Tools and accessories)
www.dewalt.com (Dewalt tools)www.bdk.com (Corporate information)
32
STORY 8 BLACK & DECKER
THE POWER-TOOL BUSINESSDESIGNED TO SUCCEED
All of Black & Decker’s businesses have
established a reputation for product
innovation, quality, design and value.The company’s Consumer Power Tool
division sells the brand-leading range
of drills, jigsaws
and sanders as
well as garden
items such as
hedge trimmers
and lawnmowers,
and the hugely successful Dustbuster
hand-held vacuum cleaner.
Product design and development are
carried out by a number of strategically
sited global design centres. The second
largest of these is based in the North
East of England, employing more than
100 personnel.
Where possible, Black & Decker will seek
global design solutions, but Europeans,
for example, generally require morecompact products than Americans
because their homes and gardens tend
to be smaller.
Danny Bone, Innovation Manager,
places great importance on the ‘Three
As’ - Attitude, Ability and Awareness.
‘As designers, we must have a can-do
attitude. The moment people go into
negative mode they’re not looking for
the best solution. By ability, I mean the
ability to allocate sufficient time for
development and planning. Awareness
and understanding of what’s around
you is the third vital attribute of a
good designer.’
A constant flow
of innovative
products for
changing markets
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33
‘New products introduced within the past
three years accounted for an impressive
one third of our total sales in 2000’ Nolan D Archibald, Chairman, President and CEO,
Black & Decker, Annual Report 2000
Quattro concept
ID sketches
Nigel Robson
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Emerging Consumer
Needs & Opportunities
Design Centre
Creativity
B&D Strategy
Brand ImageInitial
ConceptsInventors
External Technologies
Suppliers
Universities Application of new/
new to us technology
‘Milestone’
Design &
Implementation
Process
34
An example of Black & Decker’s
innovative approach was the launch of
the Quattro. During the mid 1990s the
company’s Multisander had proved to be
very successful. Its multifunctionality had
dramatically increased both its perceivedand real value with commensurate
financial benefits. This led the business
to consider what the effect may be if
multifunctionality were applied to the
business’s core product range. Within
two weeks of applying the three As to
this challenge a concept prototype of
a power tool capable of drilling,
screwdriving, sanding and sawing had
been created and demonstrated.
Bone believes it is essential to show a
working prototype. It gives concepts,
particularly in new business areas, a
credibility that can be readily understood
and communicated throughout the
business. The
innovation process
is aimed at
translating concept
ideas, derived
from insights into consumer needs, into
reality. Industrial design further enhances
the process by ensuring the finished
article exhibits a ‘must-have’ image
reflecting brand values.
Creative design is a distillation over
time of many ideas. These initial ideascan come from anyone within, or even
external to, the business. The role of the
Innovation Group is to help prioritise
and incubate such ideas into credible
business opportunities.
In the case of the Quattro, the concept
progressed quickly through the business
and the seven-strong project team
successfully launched the product within
17 months of its inception. As Bone
puts it: ‘It began as a ten-minute video
conference and ended up as a multi-
million dollar product.’
The result of this approach to design
and innovation is that Black & Decker
is a global leader
in its sector with
a year 2000
turnover topping
$4.5 billion. And
its par ticular
success with first-time ‘DIY-ers’, including women, means
its customer base looks very secure.
Danny Bone
Innovation Manager
Satisfying The Corporate Need
Black & Decker Design Process
‘Because new products stimulate retailer and consumer interest, build consumer
demand, contribute to market share growth, and represent a vital opportunity to
increase profit margins, our new product strength is especially impor tant during
periods of economic weakness.’ Black & Decker, Annual Report 2000
Industrial design
gives products a
must-have quality
Creative design
distills ideas
from within
and beyond
the company
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Not a bit of it. As Danny Bone, Innovation Manager at Black &
Decker, recalls: ‘It’s often better to ask for forgiveness than
permission. If you believe a concept will work, try it, you will
learn from the experience. There is very little to lose and
everything to gain.’ There’s probably a life lesson in there
somewhere, but it makes sound business sense too - if you
don’t stick your neck out from time to time, you’ll never
produce anything remotely different and there’ll be nothing to
set you apart from the competition.
He points to the need for an open mind too. The Black & Decker
Workmate, submitted by an external inventor, was initially
turned down by the company, but put into production later
after the decision was reviewed. The time might not be right
for your particular creation, but perhaps its time will come.
Product design has been described as adapting new technology to
the application of innovative thinking. Undoubtedly, an in-depth
knowledge of relevant manufacturing processes, technologies
and materials, as well as the market you are designing for, is
critical. Adding that little unexpected twist to your product is the
magical added extra. But successful design is also pragmatic
design. It should always be able to deliver efficient manufacturing
- that is, make sure that the product is made cost-effectively
for its specifications within set timescales.
Teamwork is an essential part of the design process.
Manufacturers, suppliers, and if possible the end-user, should
work closely with designers to ensure a quality product and
should be involved right from the start of the design process.
Up to 80% of a product’s manufacturing costs are committed
in the early stages - if they are managed effectively, you
should reap the rewards later.
A realistic design concept such as a working prototype made
from the correct materials will help iron out niggles before themachines start rolling and will smooth discussions between
design and production. Refining your manufacturing plans
alongside your product development gives you viable
production options and reduces the time it takes to move
from concept phase into production.
At Black & Decker, the design process for the Quattro power
tool was unique in that its start point was clearly defined.
This, however, is quite rare as the start point for most
projects is difficult to define precisely.
Numerous concepts and ideas are generated in response to
perceived and real customer needs. The innovation process
helps to define credibly what the future product may be. The
trick is to provide solutions to genuine customer needs before
the customer is even aware of those needs. Doing this helps
businesses lead markets with innovative products that
reinforce and enhance brand value.
You only have to look at the success of the Apple iMac to see how radical, brave
product design can galvanise a company’s fortunes. This type of design requires original
creative thinking, gutsy self-belief and determination, and perhaps just a touch of
inspiration. But this is the glamorous, aspirational end of product design, isn’t it -
surely these kinds of criteria aren’t applicable to more mundane, everyday items?
ADVICE 8 PRODUCT DESIGN
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When Swedish furniture retailer IKEA first appeared on the British landscape in
1987, it offered a completely new concept. Well designed furniture and household
products - although in many ways unfamiliar to the UK market - soon caught on
because quality was good, prices were low and the self-assembly drive-away offering
reduced the need for deliveries.
36
STORY 9 IKEA
DESIGN ACROSS THE BUSINESS,PRODUCTS, PROCESSES ANDADVERTISING
Since IKEA was founded in Sweden in
1951, it has been driven by the pursuit
of a single ideal: well designed products
at low prices.
IKEA bases its design and new product
policy on the customer feedback it
receives from its
locally-based sales
and marketing
operations
throughout theworld. Thus any product modifications
or new product ideas are subject to a
carefully thought-out operation from
original design concept and product
development to the selection of
suppliers, distribution to the stores and
then to customers - mainly through
take-home flat packs. Developing or
modifying products at IKEA is a blend
of co-operation, collaboration and
discussion between designers, product
developers, purchasers and suppliers.
A key element in the design of all IKEA
products is the need to minimise
material waste in order to keep costs
down. Therefore design has to be
functional and fit in with existing
production methods and the finished
products must be packaged in such a
way as to fit onto Euro pallets. Most
importantly of all, the majority of
products, with obvious exceptions such
as upholstered sofas, must be designed
for flat-pack distribution so that they canbe easily stored and then transported
in the average car. Furthermore, they
must be easy to self-assemble when
the customer gets them home.
IKEA believes in close collaboration with
its manufacturers. Thus its ‘co-workers’
regularly visit suppliers all over the
world to negotiate prices, monitor
production and carry out quality controls
and inspections.
Anders Dahlvig
President
Hans Gydell
Vice-President
Feedback and
collaboration
guide design
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FACT BOX
COMPANY IKEA
PRESIDENT Anders Dahlvig
VICE-PRESIDENT Hans Gydell
MANAGING DIRECTOR Goran Nilsson
UK STORES
UK ADVERTISING Frances Evans
MANAGER
COMPANY SIZE 58,000 employees
PRODUCTS & SERVICES Home furnishing
products
STORES 139 in 22 countries
SUPPLIERS 1960 in 53 countries
TURNOVER BREAKDOWN Europe 80% (UK 13%)
North America 17%
Asia 3%
TURNOVER 2000 $8.5 billion
WEBSITE www.ikea.com
37
IKEA is design led and many of its
products are radically different from its
competitors’, yet its retail formula is
hard-edged. It is based in seven areas,
which are all designed for simplicity and
efficiency. They can be summarisedas follows:
• Product development IKEA is a
production company. Its operations
are a balance between design, function,
environmental sensitivity and a low price
• Suppliers new products are made with
good materials from the best suppliers,
backed by well designed supply chain
management systems
• Purchasing ‘co-workers’ work closely
with the suppliers to negotiate prices,
monitor production, and carry out
quality controls and inspections
• Distribution a vital piece of the low
price puzzle. Well designed flat packed
products contribute to keeping storage
and transport costs low
• Stores are simple, well designed, cost
effective and easy to navigate
• Customers contribute to creating a low
price by choosing to collect, take home
and assemble their goods
• Advertising, though IKEA offers a
defined range of products, advertising
differs from country to country
While the British have always liked IKEA’slow prices and take-away operation, there
has always been some resistance to
some of the Swedish retailer’s more
modernistic designs. It thus took some
years before the UK was won over to
IKEA but sales were boosted in the mid-
1990s by a tongue-in-cheek advertising
campaign developed by American TVCommercial Director Mark Tiedermann,
with the strapline ‘Chuck out your Chintz’.
The strategy was to challenge people’s
expectations and to make them question
their taste without offending them. The
commercials went on air in the last throes
of the Major Government and aimed to
tune in to the perceived social and
cultural changes in Britain at the time.
Research showed that when the
commercials first went out, two-thirds
of all IKEA visitors were female and
women took 90% of purchasing
decisions. The research also showed that
men were happier than women to live in
the minimal, functional environment
that IKEA-style encouraged. The initialcampaign raised awareness of the IKEA
brand from 39% to 63% in the stores’
catchment areas.
By last year IKEA had ten stores in
Great Britain, which has now become
the company’s second largest market.
However judging from the number of
conventional furniture warehouses that
still stand proud along our arterial roads,there are still plenty more potential
customers to be won over.
‘Design is 98% commonsense and 2% that magic ingredient called
aesthetics and sometimes style.’
Sir Terence Conran, designer, restaurateur, retailer
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‘We will achieve the IKEA vision by offering a wide range
of well designed, functional home furnishing products at
prices so low that as many people as possible will be
able to afford them.’ Anders Dahlvig, President, IKEA
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To reap some of these potential rewards, find out how design
is currently being used within your organisation. Everything is
designed, though not necessarily with a coherent focus. You
need to make sure your company starts thinking about the
implications of design at the early stages of a project. A strategic
overview of design can both manage and co-ordinate the
activities of your business, with advantages of competitiveness
and efficiency.
Like any strategic aspect of your business, you need to be able
to evaluate what design has achieved for you on a particular
project by setting out targets and goals before you start, and
take a judgement as to whether these have been met when
the project is completed. It’s also worth considering the
broader picture, linking all the parts of your business that are
affected by design (marketing and customer relations as well
as product development, for example) and looking at how
each of these areas may have benefited.
Engaging with design techniques, methods and perspectives
adds value the whole way through the creative business
process. From the refinement and clear articulation of a
strategic vision, to identifying problems and coming up with
relevant solutions, to working through concepts, finding the
right emotional ergonomics and managing the development
process. Finally, it brings an added impetus to your marketing
drive and clarifies the branding of the finished goods.
At best, design can be used as a powerful instrument for
managing and co-ordinating how your business looks to its
customers as well as the way it communicates with them and,
most importantly, thinks about them. It’s also a tool for
helping you realise and evaluate future business, service and
product opportunities, and a way of maximising a company’s
potential to deliver useful, useable and desirable products
and services.
It’s always worth bearing in mind that strategic objectives are
unlikely to be delivered through investment in a single project.
A holistic approach, combined with a little patience, will always
yield more encouraging results - creating better business
processes through effective design is best thought of as an
ongoing initiative, involving a series of investments and
design-led programmes. These may be needed over a period
of time and might include your products and services, your
communication material and your working environment.
An awareness of the power and potential of design should be at the strategic heart
of any good business. Used intelligently and thoroughly, design can increase profits
and turnover and open new markets, as well as improve take-up and market share.
Softer benefits might include more solid relationships with your customer base and
suppliers, and fewer customer complaints.
ADVICE 9 STRATEGIC DESIGN
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The competition in the healthcare market is probably among the fiercest in the world.
Smith & Nephew is one of the best known and respected brand names in the medical
field yet it is still driven by the need for constant innovation in order to remain one
step ahead of the field.
FACT BOX
COMPANY Smith & Nephew
CHIEF EXECUTIVE Chris topher O’Donne ll
MARKETING DIRECTOR Rory Gleadhill
Orthopaedics
COMPANY VALUES Per formance,
innovation, trust
PRODUCTS & SERVICES Healthcare
TURNOVER - 2000 £1.135 billion
TURNOVER - 1999 £1.120 billion
OPERATING PROFIT - £171.4 mill ion
2000
WEBSITE www.smith-nephew.com
40
STORY 10 SMITH & NEPHEW
NAILING THE COMPETITIONTHROUGH INNOVATION
Innovation is taken seriously throughout
the organisation, not least in the
boardroom. Chief Executive Christopher
O’Donnell believes ‘innovation is thelifeblood of a medical device company
like Smith & Nephew’.
Product development therefore sits at the
heart of profitability within the company,
backed up by its other core values, which
are performance, trust and innovation.
Product development is managed via a
stage-gate process, to ensure thatproducts will meet customers’ demands
and perform clinically. Market research,
stage one, defines the unmet needs of
Smith & Nephew’s
customers. Stage
two involves
research and
development
engineers working
in partnership with leading clinicians to
develop new products, as well as
innovative surgical techniques and
instrumentation designed for shortening
and improving patient recovery. Following
extensive design testing, stage three,the staged development process
concludes with limited clinical trials to
ensure that the products will perform
as designed.
Whenever possible, Smith & Nephew’s
R&D process seeks to develop platform
technologies on which a number of new
products can be produced. This strategy
maximises the return on the costlyinvestment involved in commercialising
implantable medical devices by building
on proven technologies and designs.
Smith & Nephew is particularly strong
in the orthopaedic sector and has been
recognised for its innovative designs in
intramedullary nails for many years.
Intramedullary nails are tubular metal
implants which are placed in the central
bone marrow canal of badly broken
Christopher O’Donnell
Chief Executive Product
development is
central to
profitability
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41
bones. They are used when a traditional
plaster cast will not provide the necessary
level of mechanical
stability required
for predictable
healing. However
the company’s
world-renowned
product, the Russell-Taylor stainless
steel nailing system, now faces strong
competition from more recently
developed products.
Smith & Nephew recognised that it was
time for a new innovative approach to
counter the competition. With the
assistance of two world-renowned
surgeons, Dr Toney Russell and Dr RoySanders, the company developed TriGen,
a titanium nail system, with the goal of
simplifying the technique.
Since operating room charges are often
the most costly part of this treatment,
Smith & Nephew recognised the need
to reduce operating times. Reduction of
operating times is also critical to patient
recovery, in the instance of multipletraumatic injuries, and in particular the
case of serious motor vehicle accidents.
The TriGen nailing system is a major
advance in intramedullary nailing
technique and has been recognised by
five patents with two more pending. It
has significantly reduced the number of
instruments required to treat lower limb
fractures. It also makes it easier to
train the operating room staff, thereby
improving efficiency, in part by increasing
familiarity with the technique through
repetition. In addition, the TriGen nailing
system is colour-coded for instant
recognition of the correct components
for the implant system as well as
matching the correct instruments.
This also reduces the chances for
inadvertent mistakes that might
otherwise lead to wasted operating
room time and a potential increase of
patient trauma.
Rory Gleadhill, Marketing Director for all
orthopaedic trauma products, points
out that TriGen really makes life simple
for the surgeon. ‘The design allows
surgeons to treat fractures with justthree nail designs, compared with six or
seven nailing systems for the Russell-
Taylor product line.
In addition, the
surgeon now only
needs one
instrument set to
treat almost any
lower-extremity fracture. As well as
making surgery easier and reducing thecost of the procedure, the new design
causes less trauma and leads to a
better rate of patient recovery and
success.’ This is a highly customer and
patient- focused approach.
The product was launched into the US,
German and Japanese markets a year
ago and has been well received. It has
not yet been sold into the UK market,
although it is being evaluated.
‘Innovation is the lifeblood of a medical device company like Smith & Nephew.’
Christopher O’Donnell, Chief Executive, Smith & Nephew
Rory Gleadhill
Marketing Director,
Orthopaedics
Gleadhill believes that the Smith &
Nephew brand strength having been
built on trust, performance and
innovation makes the medical profession
more receptive to its developments
than to those of its less well
known competitors.
Clear brand
values are
attractive to
customers
Innovation cuts
operating time
and speeds
patient recovery
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‘Design is not an add-on, but
ground level, base station thinking.’
Peter Crowley-Palmer, Principal Designer, Land Rover Group
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There is, however, a compelling reason to apply design
techniques, methods and perspectives to every possible aspect
of your organisation. It’s a reason that makes every business
person sit up and take notice... namely, the bottom line.
In fact, if your company is prepared to embrace sound design
principles fully, it can expect to reap significant rewards.
These include increases in the take-up of services, better
products that enjoy a greater market share, fewer customer
complaints and less wastage on warranty repairs and returns.
These are the kinds of advantages that are a springboard to
the running of a healthy, profitable business.
Design can increase your profits in two major ways - by cutting
costs and improving margins. The best way to achieve cost-
cutting is to bring in design-for-manufacture (or implementation)
expertise from the very outset of a project. As for improving
your margins, you can add value to products or services bydesigning greater usability, heightened aesthetics or a more
engaging customer experience. And effective design,
particularly as far as products and graphics are concerned, is
a major source of differentiation in customer perception of
quality and brand value.
But if you want hard facts and figures, try this: In 1998, Fitch,
a large, well-respected international design consultancy quoted
on the Stock Exchange, conducted an experiment. It tracked
the share prices of a selection of its publicly quoted clients,back-dated over a five-year period. The results were staggering.
The shares, bundled into a fund, out-performed the Standard
& Poors 500 benchmark by a factor of nearly four. The fund
grew by an impressive 350%, while the rest of the market
averaged just 90%. Such figures at least suggest a link between
strong performance and a design-led approach.
In 1999, the Design Council conducted a further study. Here, the
FTSE-quoted clients of six top UK design consultancies were
monitored. For the purposes of the research, six hypothetical
funds were established - one for each of the consultancies as
well as a joint fund containing all of them. Significantly, all of
these funds out-performed the FTSE All-Share Index. While
individual funds were between 5% and 28% more profitable,
the joint fund proved 10 points more effective.
The fact that design isn’t just for blue-chip companies was
underlined by a similar exercise undertaken in 2000 with a
hypothetical fund based on the 31 FTSE-quoted companiesawarded Millennium Products status by the Design Council for
excellence in design and innovation. These companies included
relatively small businesses launched on to the market on the
basis of the product or service which won Millennium Product
status. The results were even more impressive, with the
Millennium Products companies out performing the FTSE
All-Share Index by up to 150% over a four-year period.
ADVICE 10 DESIGN - THE BUSINESS CASE
Because design initiatives are hard to measure in a directly quantifiable way,
many companies need convincing about their efficacy. They want hard evidence
before they commit time and money to something they perhaps feel is irrelevant
to their day-to-day working practices.
C RCO O
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The internet has created a new breed of consumers who want to make their purchases
instantly via their computers and don’t want to be bothered with visiting shops or
making phone calls. The mortgage broker Charcol, formerly John Charcol and now
owned by Bradford & Bingley, spotted this trend in the late 1990s, so it set up an
internet mortgage service which would allow people to compare mortgages and apply
online. Up front, the service it designed is clearly customer-focused, while behind the
scenes the system also improves the company’s operational efficiency.
FACT BOX
COMPANY Charcol
CHIEF EXECUTIVE Toby Strauss
DIRECTOR SPECIAL Clive Kornitze r
PROJECTS
PRODUCTS & SERVICES Financial Services
AWARDS Mortgage Site of
The Year 2000
Microsoft Digital
Britain Award
OWNER Bradford & Bingley
Building Society
WEBSITE www.charcolonline.co.uk
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STORY 11 CHARCOLONLINE
FIXING A MORTGAGE WITHOUTGOING ANYWHERE
Although Charcol had operated a website
like those of its competitors since 1996,it primarily offered mortgage information.
By the millennium, the company realised
that an interactive service would capture
a lot of business from beyond its
traditional client base.
CharcolOnline - a complete online
mortgage broking service - was launched
in November 1999. Since then, the
service has flourished, gaining Charcol
a larger market share and several
awards, including the Microsoft Digital
Britain award and the Mortgage Site of
the Year award.
Charcol employed both external
consultants and its own staff to design
the site. The result was an online tool
to enable potential clients to find amortgage tailored to their needs, go
through the entire application process
online and get a quick decision from the
mortgage provider. This has enabledCharcol to reach a new market sector.
Traditionally, its
clients wanted
advice on choosing
a mortgage. Now
the increased
capability of broking
services available on CharcolOnline
appeals to clients the company describes
as ‘more empowered, with a different
mindset’.
Recently, Bradford & Bingley decided it
wanted to provide an online investment
service. CharcolOnline was given the job
of developing an investment site for the
group. This was developed in close
co-operation with the regulatory
authorities and now offers an ISA andcash management account platform.
Broking services
appeal to
‘empowered’
clients
‘We would like our site to enable our clients to view all their finances in
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The technical and visual design of the site
is client-led, and based on functionality
rather than gimmicks. To suit clients’
needs, the site is straightforward to
use and downloadsquickly. But most
importantly, it
does what clients
want it to: they
can go through the
complete process of applying for a
mortgage on the site, in most cases
with no additional paperwork or face to
face contact.
The site’s design also suited Charcol’s
business needs, which were to cut
down the amount of processing involved
in each mortgage transaction. Because
there is a lot of selection of products
and vetting of the clients involved in the
early stages of the online process, the
client is less likely to be refused a
mortgage by their chosen provider.
A ‘plug and play’ design has been used
which means that a module can be
removed or re-designed easily if it is not
meeting expectations. Things can
change fast, and the capabilities of the
site allow Charcol to remove products
which are no longer available and add
new ones quickly and easily.
Charcol is now looking to the future of its
site. Clive Kornitzer, Director of Special
Projects, predicts that the financial
products market will move towards a
more integrated approach. ‘We would likeour site to enable our clients to view all
of their finances in one place. Even where
we do not manage all their financial
affairs, we want our clients to be able to
view their current and deposit accounts,
as well as their mortgage and investments
through the site, move money around
and buy and sell equities. Although this
is a challenge, we feel that it is no less
possible than anything else that we
have achieved to date.’
Kornitzer does, however, sound a note of
caution for Charcol’s competitors. ‘It
takes longer, it costs more and it’s much
harder to develop
a site like ours
than we realised.
Having Charcol’sstrong brand and
over 25 years’ experience as an IFA
behind us is an integral part of
CharcolOnline’s success and the
results have proved all that hard work
was well worth it. We view our online
proposition as part of an integrated
bricks and clicks strategy. Our clients
value the ability to transact online in
the knowledge that face to face adviceis just a click away.’
Toby Strauss
Chief Executive,
CharcolOnline
Clive Kornitzer
Director of
Special Products,
CharcolOnline
We would like our site to enable our clients to view all their finances in
one place - even where we don’t manage all their affairs.’
Clive Kornitzer, Special Projects Director, CharcolOnline
Web design is
based on
functionality,
not gimmicks
Clients want to see
all their finances
in one place
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46
‘Design is the creative force by which we realise our
hopes for a better environment.’ (the late) Jimmy Knapp
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You’ll probably go for the brand you feel most empathy for.
You might have seen advertising which appealed to you. Your
friends might have bought one recently. You might like the
product’s image. What you’re doing is identifying with the softer,
emotional resonance of a brand. What does it say about you
that you own an Apple iBook rather than a Sony Viao PC? That
you prefer Nike to Adidas trainers? That you drink Buxton mineral
water rather than Evian? That you’ve plumped for an Orange
mobile phone as opposed to one from Virgin? They’re subtlesignifiers, but consciously or subconsciously they say something
about you, your choices, and the kind of person you are.
It’s the role of marketing, working in tandem with design, to
create desirable auras around brands. Together with market
research, marketing and design are key strategic components of
business which have a significant mutual dependence. All three
are concerned with connecting to customers and determining
the look and feel, features, functionality and appeal of a
service or product range. They are collectively responsible for
reaching out and touching the consumer, so a close relationship
and a shared strategic vision is vital to market success.
The aim of market research and design is to find out what really
makes consumers tick. To find out what appeals to them and
why. Quantitative market research tends to rely on results
collated from hundreds of questionnaires. Qualitative market
research is more in-depth, using controlled interviews with
individuals or small demographically differentiated groups to
eke out attitudes and opinions. Design research can, in
addition, help to discover customers’ unexpressed needs
because it is not predicated solely on existing knowledge.
These findings may then be filtered through into design
concepts and product planning.
Both marketing and design play a pivotal role in product
planning. Whether you’re involved in the design of a financial
service, a website or a machine tool, you need to bring
together the same basic elements. Firstly, the needs of the
end-user within the context of the market. Then, your company’s
resources - these may include technology, manufacturing or IT.
Finally, your corporate vision and strategic objectives. These
fundamental parameters will define your product.
Valid, intelligent marketing should be able to express eloquently
the ‘soul’ of the product. It should use elements unearthed
during the research and design phases of the production
process to entice and delight potential customers. In other
words, it should take what’s already there and build a credible
story around it. And if it’s a story people want to hear, they’ll
buy your product rather than your competitor’s.
Two products. They do exactly the same thing just as well as each
other. They look and feel similar. They are identically priced. As a
consumer, how do you choose between them?
ADVICE 11 CONNECTING DESIGN & MARKETING
47
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48
CONTACTS
Other useful websites:
DTI/Design Council
Living Innovation website
www.livinginnovation.org.uk
DTI Future and Innovation Unit
www.innovation.gov.uk
Design Business Association
www.dba.org.uk
Centre for Sustainable Design
www.cfsd.org.uk
Engineering and Technology Board
www.etechb.co.uk
Patent Office
www.patent.gov.uk
Small Business Service
www.sbs.gov.uk
Trade Partners UK
www.tradepartners.gov.uk
UK online for business
www.ukonlineforbusiness.gov.uk
Fit for the Future
www.fitforthefuture.org.uk
Design Directory
www.designdirectory.org
Design Council
www.designcouncil.org.uk
CBI
www.cbi.org.uk
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Publication Team
Project Manager: Paul Sykes, Design Council
Contribution: Dr Tim Bradshaw, CBI
Design: Heard Design
Copy: Mattison PR
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The Design Council’s purpose
is ‘to inspire and enable the
best use of design by the UK,
in the world context, to improve
prosperity and well-being’.
Design Council
34 Bow Street
London
WC2E 7DL
United Kingdom
Phone +44 (0)20 7420 5200
Fax +44 (0)20 7420 5300
www.designcouncil.org.uk
info@designcouncil.org.uk
In partnership with:
Confederation of British Industry
Centre Point
103 New Oxford Street
London WC1A 1DU
United Kingdom
Phone +44 (0)20 7395 8071
Fax +44 (0)20 7497 3646
www.cbi.org.uk
enquiry.desk@cbi.org.uk
March 2002
Published by the Design Council
Registered charity no. 272099© 2002 The Design Council
ISBN 1-904335-00-4
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