leading innovation through design

Proceedings of the DMI 2012 INTERNATIONAL RESEARCH CONFERENCEAUGUST 8-9 2012 - BOSTON, MA. USA

LEADING

THROUGH DESIGN

CO-CHAIRS

ERIK BOHEMIAReader in Three Dimensional Design Studies, School of Design,Northumbria University

JEANNE LIEDTKA Professor of Business Administration, University of Virginia - Darden Business School

ALISON RIEPLEProfessor of Strategic Management, Westminstter Business School

ORGANIZED BY DMIThe Design Management Institute

HOSTED BY MASSARTMassachusetts College of Art and Design

SUPPORTED BY A GRANT FROMNational Endowment for the Arts

Di Lucchio, L. (2012). From Eco-nomy to Eco-pathy: a different model of supply-chain for Design.

Copyright in each paper on this conference proceedings is the property of the author(s). Permission is granted to reproduce copies of these works for purposes relevant to the above conference, provided that the author(s), source and copyright notice are included on each copy. For other uses, including extended quotation, please contact the author(s).

FROM ECO-NOMY TO ECO-PATHY. A DIFFERENT MODEL OF SUPPLY-CHAIN FOR DESIGN. Loredana DI LUCCHIO*

Nowadays, within the productive, social and cultural scenario where Design acts, a new emergency is growing: a need to redefine the relationship between the different stakeholders of the supply-chain (from producers, to designers, to consumers). In particular, due to the process of globalization - which has completed his first maturation - we are assisting to the loss of the consolidated roles and the birth of new players; in fact, more then the prophesied improvement of social economic and productive exchanges, there is an increasing gap between who is able to access to the global system and who remains in a more local condition. Is it possible to image a different geography to valorize also the local players? Could be Design a leverage for this? The project reported in this paper is an experimental research (according to the approach of action research) which investigates, analyses and tests a different model of relationship between the players of the design-production-consumption process. Keywords: transformation design | experiential territory | social-economic growth

BACKGROUND In the 1960s and 1970s - during the crisis of the Fordist production model which has been

recognized as the start of the irreversible decline of large industrial firms and of the hierarchical function structures - someone discovered that for some groups of small companies in certain Italian regions the trend was different: the employment remained steady, there was frequent innovation and exports were increasing.

This 'strange' phenomenon became the focus of a national and international debate: and it was soon revealed that the territorial locations of these companies were not dictated by chance, but they had roots in territorial systems with some singular social characteristics.

This was the small is beautiful phenomenon, which borrowed its name from an important book by the economist Ernst Friedrich Schumacher (1973) which criticized Western economies and favoured the adoption of more human-oriented, decentralized and appropriate technologies.

This has been also the quintessentially Italian phenomenon which showed that the advantages of large-scale production could also be obtained by a network of small companies that were located near to each other (Beccattini, 1989).

In this new vision, the concept of 'territory' passed from to be the focus of social and cultural outlooks to be the focus of economic views of production processes: the concept of 'territory' is a means of communication, and a vehicle and focus of work, production, interaction and co-operation (Dematteis, 1985).

* Department of Design, Architectural Technology, Landscape, Environmental | Sapienza Universit di Roma via Flaminia 70 - 00196, Rome (Italy) email: [email protected]

Di Lucchio, L.

Communication, work, interaction and cooperation weren't simply economic characteristics. They were the various social relationships that individuals and the group as a whole had in a specific time and place: they are James Colemans social capital, based on authority, trust and regulatory relationships (1988).

In this fertile breeding ground, a unique bond between design and production emerged and developed around the same forms of relationships. And this design wasn't just one of the activities in Porters value chain: it was a key player within the territorial 'social capital system'.

Inevitably, a huge distortion on this territorial relationship-based business and design model was over the last twenty years: years during which there been the completion of that globalization process discussed in economic field of 60s in its positive sense as a phenomenon of progressive growth of international interaction.

CONTEXT Leaving aside more complex economic or sociological definitions, globalization could be considered as a multi-faceted phenomenon. It is based more on the evolution of relationship systems than on simple exchanges of goods: and rather than making any things or processes more uniform (as someone feared), it has led to a bigger gap in the nature and speed of social development. It has driven a slow process of deconstruction of existing contexts and of redefinition around a map based on opportunities rather than proximity. In fact if, on one hand, the so-called global economy has given the companies the possibility to produce and sell products and services all over in the world, to develop global joint-ventures and partnerships, to delocalize different production steps in different countries, to diversify their presence in different market under different brands; on the other hand, globalization, which represents just a contemporary expression of the geo-political evolution, has demonstrated a substantial inability at the self-determination, emphasizing the differences between the social communities (not necessarily between the nations) and pushing to the extremes the different roles within the process of value construction and value consumption (2011, R. Dani). All this is so relevant that, for the purposes of this discussion, it should be more correct to consider not the concept of globalization but the concept of global village as it has been defined, for the first time in 1964 by Marshall McLuhan: a world which becomes metaphorically small due the new (digital) technologies, where each communication is simple and amplified, each physical distance is cancelled, and more than goods exchanges there are exchanges of behaviours, languages, life-styles and people. Again, with his work War and Peace in the Global Village (1968), it will be McLuhan to clarify how this amplification of communication doesnt mean an hegemony of a depersonalized global vision, but the stimulus for discontinuity, diversity and division more than was in the past mechanical world. Therefore, globalization is not homologation but construction of new equilibrium based more on social and economic exchanges (knowledge, people, capitals) than on physical exchanges (goods). This meant a profound alteration of proximal relationships, especially from the start of the 21st century, and the territory has lost for production, and therefore for design, its relevant role of place where the things happen: the nationality of designers (as expression of a specific cultural background), the place of production (indicated with the made in in order to guarantee the quality level of manufacturing), the place of consumption (expressed as specific features of different markets).

From Eco-nomy to Eco-pathy: a different model of supply-chain for Design

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Instead, especially thanks to the digital technologies, nowadays we assist to a significant relocation (in the etymological sense of removing from a locality) which is not finalized to a collocation in other places but to cancel any permanent form of places. In this way for any of previous three aspects of process, territory has a different value: for the design activity it becomes multiple (not more one designer but several designers whose their cultural and geographical origin is heterogeneous); for the production it is made of several different places and designed in becomes more important than made in; for the consumption activities it is linked not more to a specific local market but to niches of consumers (communities) similar for needs and desires despite their different social and geographical origin. Therefore, a different scenario where territory moves from a fixed condition to a moving condition. Moving condition where the levels of interaction are different: a) a first level linked to the origins, in which the territory gives rise to the creation of companies and provides the know-how on which the businesses are built; b) a second level linked to development, in which territory is the place where companies find the resources to conduct their business and increase their profits; c) a third level linked to the network, in which territory no longer has physical points of reference but interacts in a virtual manner, using unions and partnerships as ways to extend the territory. This change could be described as a passage from the domain of the economy to the domain of ecopathy where the suffix -nomy, as norm, is replaced with the suffix -pathy, as feeling the other. This means to move the focus from the system rules to the relationship value: and the value is obtained not thanks to a simple sum of capabilities of each players but to the overlap of the different skills. The concept of ecopathy could be considered a sort of evolution of the background where design acts (Di Lucchio, 2005). In fact, at the beginning of Design as discipline, the theoretical debate has been focused on the strong connection between the design capability to define the material equipment of modern society and the capitalistic approach to production and consumption according which the system has a self-determined process based on the market and the economy (in its etymological sense of the way to manage the house) has the rule. (Maldonado, 1977). After, due the big crisis of 70, where the simplistic imperative to the growth has been refuted to the awareness that the exploitation of natural resources isnt an endless process, a new approach to the system emerged strongly in search of a balance between the human system and the natural system according to a mutual logic and without need of any imposed abstract norm: ecology (Papanek, 1971). In this beginning of new century, a new approach is growing in the awareness that just the ecological reply to the capitalism defects isn't enough because now the global society is living a deeply redefinition of its rules, and where not only the natural system is in danger, but also the human system. Therefore the approach isn't more neither to the simply definition of new rule (economy approach), neither to the totally respect of the natural logic (ecology approach), but to the construction of a different and new relationship between all players - human, natural and social players. Therefore ecopathy, where the focus is on the 'pathos', on a feeling of 'sympathy', on the capability to consider others (others need and role) within our processes.

PRACTICE In order to pass from a theoretical dissertation to an experimental evaluation, a research project based on this vision, has been developed by Sapienza Design Factory, which is a research laboratory focused on the improvement of the Design role in the productive system.

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This experimental project, titled TOOTable is the result of one year research action (2010-2011) focused on Italian furniture sector, which represents one of the key business and maybe one of the most renowned: the magical combination of between creativity of designers and informal entrepreneurial genius, the manufacturing miracles of districts, the flexibility of small companies, the high share of export. In term of management, this is a very mature sector with a consolidate (and simple) supply chain: brands companies, production suppliers, designers, sellers and of course consumers. Moreover this sector represents an emblematic case of the traditional district model which, until last 15 years, was based on a strong relationship between brand companies and a network of suppliers located in the same region (Lojacono, 2007). Thanks to a direct analysis of some furniture districts and an annotated reading of the annual reports of the Italian Furniture Association Federlegno, it has been possible to verifies some interesting features which are changing the furniture supply-chain. In particular the Annual Reports of Federlegno in 2008, 2009, 2010 were been analyzed in order to map also the economic trend of the furniture sector in Italy. Of course, due the modified scenario of globalization, also this sector has suffered some shocks which have deeply change not so much the production organization but the contexts (territories) where these companies act. The primary change has been about the relationship between the brand-companies and the supply-companies, due the delocalization of production in order to downsize costs. Several supply-companies located in the districts have been substituted by companies of the west countries which offer more low costs of production. The second change is about the relationship between companies and designers because the need to maintain an high level of brand reputation these companies prefer to involve only of 'famous designers' as assurance of market success. And, more and more often, these designers arrive from all of over the world: the only evaluation factor is the level of notoriety (Di Lucchio, 2006). And a further change is about the market competition, or better, the market perception which moves towards the high-end consumption in order to obtain more high profit margins working on brand appeal and reputation (Roberts, 2004). At the end, it is possible to assert that the italian furniture sector (and its market) is divide in: few important design-oriented brands (almost all Italian brands) which offer high-end products dedicated to small niches of wealthy consumers; some middle-brands which work as followers however positioned in the medium-high market; only one world-wide famous brand which offers a (almost) perfect combination of medium quality and low prices (IKEA); and, finally, a big number of very small companies which are working (or better, worked) as suppliers for the big brands, without any capability to directly face off the market. In this scenario, two barriers are growing within the furniture supply chain, which are excluding, on one hand, young designers, which havent yet a strong media appeal, and in the other hand a large part of consumers who haven't the economic capability for this kind of purchases (so-called middle-class).


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Figure 1 The traditional supply-chain of the Italian (and European) furniture sector. Source: Di Lucchio, L. (2012)

But the more critical effect is a slow but constantly disappearing of small and micro companies which have a high quality level of technical capability but no opportunity to compete in the globalized market.

The project TOOTable starts from these criticalities applying the idea of relational territory as a different approach for the supply-chain, based on the business model of zero-miles, and exploiting three assets:

the desktop-manufacturing, micro-companies and production laboratories which use rapid manufacturing machines with a high flexibilities of processing and an indifference to the economies of scale;

the design do-it-yourself based on the opportunity opened by CAD to overlap the figure of designers with producers;

the web 2.0, which thanks to social networks opens advanced sharing spaces. Each of these assets enables a new way to approach at production, and on their overlap is defined the core concept of the TOOTable project. In fact: The desktop-manufacturing represents the last step of a technological evolution started with the CAD (Computer Aided Design) and the Solid Modelling and 'landed' at the Rapid Manufacturing processes (RM). These processes allow to produce a solid object, complete in each its parts, without any manual intervention, and starting directly from its morphological definition by a 3D virtual model. A virtual model which represents the mathematical instruction for the mechanical machines, so-called CNC machine (Computer Numeric Control) if they work removing (or cutting)

Di Lucchio, L.

material, or called RP machine (Rapid Prototyping) if they work adding material. These technologies had demonstrated that, if they are moved by a preliminary phase of production simulation (engineering phase) to a effective phase of production, can be able to bring close the ideation process and realization process; processes which the industrialization has delegated to different actors in different time (the concept of Fordist line-production). Moreover, these technologies have become one of the most interesting place of experimentation for engineers, designers, creators in general or, in a word, makers (C. Anderson, 2011). The makers are those new players which are able to manage the entire process of ideation-production-consumption: building a condition similar to the craftwork but contextualized in those cognitive post-industrial processes (time-to-market, wide-knowledgement, customization, self-production) where the creator coincides with the executor. This phenomenon has been recognized (and called) as design do-it-yourself : a combination of web-enabled open sourcing and cheap manufacturing technology is the key to creating a next generation of innovators and entrepreneurs in manufacturing. Finally, the most important feature of web 2.0 is to consider the network as a platform for sharing information, experiences, activities in a interactive and dynamic way in contrast with the most passive approach of traditional web-users. In particular, thanks to some specific activities social networking sites, blogs, wikis, video sharing sites, hosted services, web applications, mashups and folksonomies web consumers becomes the more emblematic expression of those prosumers theorized by Toffler (1980)

According to these opportunities, TOOTable tried to image a different supply-chain for the furniture sector (design oriented) able to reply to the described need of ecopathy. Under an organizational point of view the project has been organized and developed as a network, both physical and virtual. These is its structure. The double network is managed by a 'Production Board' which has, as well as an editorial board, the role to maintain constant and rich the information sharing between several actors involved, and also to guarantee the correct developing of processes and to avoid any abuse of the system (economic or cultural abuse). In particular the 'Production Board' manages the social networking site which is developed also for e-commerce. The actors involved can be divided in 4 groups:

the DIY Designers, normally those young designers, newly graduated, which still havent any collaboration with companies (especially with the famous brands) and normally invest in a self-promotion of their projects;

the Makers, those very small companies or those laboratories which have one or more Rapid Manufacturing technologies and, despite an high level of capabilities, cant compete with the low-cost production of east countries;

the Gallerists, those small Art and Design Galleries which are now very diffused in the urban context and are interested to promote and sell limited collections;

and the Consumers, which represent a growing trends in the nowadays market behaviours and which are characterized to an high attention both to the quality of products and to the social impact of production (as, for example, the consumers of organic foods, or of fair trade products).

Of these, the Consumers interact with network occasionally, while the other three must be officially involved in the system, as Local Hub.


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Figure 2 The TOOTable stakeholders and their roles. Source: Di Lucchio, L. (2012)

The Local Hub is the core of the organizational structure and it replies to the approach of zero mile. This is how the Local Hub works.

If a DIY Designer wants to be part of TOOTable network, they can submit to the Production Board (by website login form) their projects describing all technical details for the production processes. In particular, the Production Board verifies if each product reply to the features of TOOTable collection: furniture which can be produced with the Rapid Manufacturing technologies (also by the CNC technologies) and can be sold disassembled in order to reduce at minimum the packaging size (and also the packaging weight).

In the same way, a Maker in order to be part of TOOTable network, must submit its skills profile describing which production processes it can manage. Finally, the Gallerists, interested to be part of networking must be describe, in the website login form, their activities, their exhibition and retail space. Of course, each of these different stakeholders is located in a geographical region and when some of them are in the same region become a TOOTable Local Hub. But the most interesting feature of TOOTable is that, when a stakeholder becomes part of it, he can involve another one with different role but located in the same city or region (according to the formula share with a friend) forming directly a Local Hub. At this point the process can start.

Di Lucchio, L.

Figure 3 Home pace of the TOOTable website. Source: Di Lucchio, L. (2012)

Figure 4 Products page with all information about morphological and technical features and with the links to the e-shop.

Source: Di Lucchio, L. (2012)


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One DIY Designer realizes together with the Maker of the same Local Hub, one or more copies of his project which will be showed by the Gallerist of the same Local Hub. While, in the TOOTable website a new page dedicated to this product is opened.

The Consumer can see, and eventually buy, a piece of TOOTable collection in the website or visiting the Gallerists presents in the city (or region) where he lives: in this second case, the Consumer can touch directly the furniture designed and realized in the Local Hub and see the others in a web point dedicated to the TOOTable and located within the Gallery. If the Consumer chooses the furniture present in the Gallery, he can directly buy it; if he desires to buy another one, the TOOTable network is setting in motion. From the website, a communication arrives to the DIY Designer author of the selected product, with indicated in which region the Consumer comes from, and which is the more closer Local Hub to him. The DIY Designer author must send to the DIY Designer of the Local Hub near to the Consumer, the technical draws to allow the Maker to realize the product. Then the product will be taken over by the Gallerist - also from the same the Local Hub which contact the Consumer in order to deliver him the product. In this way, despite the geographical distant between the DIY Designer author and the Consumer, each product is realized and sold with a more 'zero-miles' approach possible. Moreover, in order to improve zero-miles purchases, when a Consumer chooses a product on website, and proceeds to login for the e-purchase, a sort of 'traffic light' warns if this is a pure zero-miles purchase (green light), a medium zero-miles purchase (yellow light) or no zero-miles purchase (red light).

On the economic pint of view, TOOTable system tries to follow the approach of fare-trade. In fact, any stakeholders obtain a profit in relation of his real involvement: the DIY Designer author has a profit from his design activity, the DIY Designer of Local Hub has a profit from his activities as product manager, the Maker of Local Hub has a profit from the production phase, the Gallerist of Local Hub has a profit from the selling activities. And of course there is a percentage of profit for the Production Board for its management, strategic development, and promotion activities.

CONCLUSION This research project, based on approach of action research (Burns, 2007), wants to be a shift from the features of territorial districts as complete, morphostatic systems to open towards morphogenetic systems: systems which move in a constant process of self-definition, causing the own shape. A new geography can be drawn up, where the processes not are a weakening of the established cultural interaction, but a revitalization which leads both to transformation of symbolic value (of the image and conception of territories) and to effective changes (to action, organizational set-ups, innovative strategies and cooperation). In this new geographical layout, design can no longer be portrayed using the uniqueness, individuality, exclusivity (brands, design firms, made-in). New territories of Design as expression of the Eco-pathy concept, which must be based around development and networks, with values, know-how and talent driving them. The proximity (employing the model of virtual communities) must be now cognitive rather than physical, but without losing (or better without ignore) the actual skills of each singular player. In fact, if the myth of knowledge economy has moved the focus from the technical capabilities of companies to the intangible skills of society, at the same time it has generated a deeply condition of futility. Of course, a futility which is not the simply contrary of utility, but which is linked to the

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Deleuzian metaphor of research: a research which advances in multiples, with no clearly-defined entrance or exit points and without any internal hierarchy (Deleuze, 1980). Instead, pass from eco-nomy (both if it is an old economy or a new economy) to eco-pathy, means to re-focus each action to tangible aims, connecting together the real skills of people, valorising them not individually but as relational community, morphogenetic systems, experiential territory. Maybe, very close to what Richard Sennet described in his 'Craftsman' (2008) recognizing in the manual activities (therefore those tangible activities of human being) the base for a new idea of social, economic and cultural structure.

ACNOWLEGMENT

The TOOTable project has been developed by Sapienza Design Factory. The author is the Scientific Coordinator of the Sapienza Design Factory. The Research Leader of TOOTable project is Manuel Beretta. At the moment, the start-up of TOOTable project has been concluded. The next steps will be the official launch of the website and the organization of the promotional campaign on Web.

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