Success with design is measurable

Herewith an article from the Reddot institute to share.

It does not need any proof to me, but in organisations investment for communication and design are often seen as costs in stead of great help to succeed.

Full article http://www.red-dot.de/

For those who are interested, I copied and pasted the text below…

Book authors: Professor Dr. Peter Zec – Burkhard Jacob

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Article and book

15/02 2010:
Success with design is measurable – groundbreaking method for calculating design value of companies developed

A completely new perspective for looking at design and business is now provided by the book “Design value – a strategy for business success”. The two authors, design expert Professor Dr. Peter Zec and Burkhard Jacob, for the first time present a method that makes it possible to measure the value which companies generate through design. Thus design is no longer regarded as a pure cost factor by companies, but as an investment and driving force for economic growth and value creation.

Long-term monitoring carried out by the red dot institute for advanced design studies has shown that companies which invest in innovative and well-designed products in the long-term and use design as a strategic leadership instrument often achieve above-average profit and sales figures as well as clear advantages over competitors. “Unfortunately it has previously not been possible to measure or quantify the value which has been generated by such companies by means of design,” explains Peter Zec. Investments in design are often regarded as pure cost factors, even though the fact that good design adds value has long ceased to be a secret – this is a starting point that is frustrating not only for designers. Companies, too, lack the measurability of chances and risks offered by design.

This gap in the assessment of design is what the two authors aim to close with the method described in their book “Design Value”. “We have developed a formula which makes it possible for the first time to calculate the previously rather intangible design value and thus to identify, assess, and compare design as a value driver in companies,” explains Zec. The basis for this is the analysis of the results of the red dot design award, which made it possible to determine the design strength and design continuity of companies and to compare them with the company’s performance, says Burkhard Jacob. The design value calculated in this way is to serve as a strategic instrument, with the help of which design managers and companies can align their own business decisions with measurable parameters and optimise their investments in design. Moreover, the design value serves as an indicator for the assessment of innovative potential and growth opportunities, thus directly contributing to the increase of the company value.

“Good design is good business” – what has previously only been regarded as a powerful slogan by former IBM president Thomas J. Watson Jr., can now be proved with figures thanks to the design value: success with design is measurable.

The publication
Peter Zec and Burkhard Jacob:
“Design value – a strategy for business success”
Publication date: 2010
German/English
approx. 250 pages, several charts
ISBN: 978-3-89939-102-2 (German), 978-3-89939-103-9 (English)
Price: 24.90 euros
Available in March 2010
Order online here: www.red-dot.de/bookshop-en

About the design value
The design value is the monetary (present) value determined at a specific point in time. It is calculated using the design-relevant earnings before interest and tax (EBIT), the design strength, the design continuity, and a valuation of the design property of a company. The purpose of its determination lies above all in giving the industry a better understanding of the chances and risks design offers, because to date design has at best appeared as a cost factor in the balance sheet and not as part of the earnings.

The formula: design value = [design returns x (design strength + design continuity)] + design property

About the red dot institute for advanced design studies
The red dot institute for advanced design studies is a research and service institute that monitors design-oriented companies on the basis of the red dot design award and collects statistical data, edits them and documents the results in a variety of forms.
www.red-dot-institute.com

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Groeten / Regards, Sibren
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Sibren ontwerpt #onderscheidend #FlowCreation
Strategy, communication, design | Follow me on twitter

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great post sibren i hope people read it.

if you look at the world’s top 100 brands they all agree with you, that design is an investment.
they have all managed to embed it within their culture instead of being an external force.

martin
epitype º branding group
t: 0845 3456 051
@martinroach

Indeed Martin, I hope people read and share to benefit 

Thanks! Sibren
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Sibren ontwerpt #onderscheidend #FlowCreation
Strategy, communication, design | Follow me on twitter