Predicting the future through design
We are all acutely aware that the future is impossible to predict.
So if businesses simply react to changes or trends as they happen, how can they maintain a competitive edge?
The strategic use of design can provide some answers.
Author Nassim Taleb coined the term anti-fragile, that characterises how something can grow and increase in strength when it is exposed to unpredictable or random circumstances.
This paradigm is useful when designing organisations, as well as new products and services. To become anti-fragile, businesses need to abandon long-term strategising, planning and incremental innovation for flexibility through design. At that point, change is no longer the enemy but effectively becomes a friend. As Charles Darwin said: “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.”
Apple’s development of iTunes and the iPod is a great example of applying anti-fragile characteristics through design. In 1998, Apple missed the music rip-off and burning trend, neglecting to add a CD-burner to their iMac. Their design team, without delay, came up with iTunes and iPod in 2001, a legal alternative, leapfrogging the eventually declared illegal Napster in 2001. Leveraging Apple’s ability to design the synchronisation of software, effectively changed the way we now consume music.
Design has been shown to contribute to the progress of organisations at four, increasingly integrated levels:
- Lowest level – differentiating offerings,
- Second level – streamlining the process,
- Third level – creating unique internal and external configurations and;
- Top level – assisting in the creation of actionable strategies.
Design-oriented businesses manage the lower and second levels of differentiation and process well. Yet the strategic use of design at the top level is recognised by only a few of the world’s top brands such as Apple, Dyson, Nike and BMW.
Strategic use of design requires integration into the corporate culture, organisational architecture and procedures, and needs to be as methodically managed as any other business investment.
When Apple decided to develop the iPhone, the firm was entering a fiercely competitive and adaptive market with low malleability and low predictability. Plenty of marketing data was available for traditional cell phones and Apple’s touch screen concept was rooted in a mature and proven technology. Apple had gained some experience by launching a short-lived phone together with Motorola in 2005 and felt that compromising with a non-Apple designer hurt the offering.
What then CEO Steve Jobs did, was to pursue a strategic disruptive innovation direction. He envisioned Apple leveraging its ability to provide excellent synchronisation software by betting on cell phones becoming essential devices for portable information access. When launched in July 2007, the iPhone disrupted the entire cell phone market, effectively driving Nokia out of the business, which previously had close to fifty percent of market share.
In this instance, the top level application of design helped Apple achieved it’s strategic goals in sales, brand value and stock performance. The new category Smartphone, enjoyed explosive growth and Apple successfully positioned itself in synchronisation software. The firm's brand value (according to Interbrand) went up by 790% from 2007 to 2013 and its share price grew by 530% from January 2007 to October 2013.
Top design driven organisations cultivate design experts, managers and leaders, while nurturing a culture that encourages design excellence. To accomplish this requires continued development of a design approach, which is tailored to the organisations strategic environment and business strategy, whether it is sustainable or disruptive.
However, this is just the admission ticket for becoming a design driven business. Continuous development of new capabilities is needed to stay ahead of the curve. This is where Design Science can make a significant contribution as an essential capability.
Design Science is the continuous building of an organisation’s understanding of design as well as the development of new support tools. The foundation for Design Science is based on solid data and research lead by Stanford Center for Design Research (CDR).
Myself and other design practitioners have collaborated with Stanford CDR to take on tough questions such as “How best to include design in the business development phase” and “What is the link between business strategies and the performance of design execution?”
Some of the key findings from the studies show that the strategic use of design and inclusion of design in business development can increase design performance by up to 30%, reduce the risk of budget overrun in the conceptual phase by up to 60% and reduce the number of intuition biases creeping into design concepts by up to 75%, leading to a performance increase up to 40%.
Like global brand Apple, Australian businesses have the potential to take design to the next level and reap the financial rewards.
S√∏ren Ingomar Petersen, Design Strategist
Soren will be speaking about leveraging design in business at the agIdeas Business Advantage Breakfast on Thursday 3 April. He’ll be joined by a panel of Australian business leaders from Qantas, Geelong Football Club, Heinz and The Laminex Group. More information can be found by clicking here.
Please login with linkedin to comment
Latest News
TV Ratings (18/04/2024): I’m A Celebrity Wins Prime Time And Key Demos
Aussie viewers can be a harsh lot at times. Only days after Ellie Cole bled her heart out, she has been sent packing.
Effie&co Launches New ConnectAsia Division To Help Aussie Brands Market To Asian Consumers Overseas & At Home
Not provided is advice on using chopsticks and not spilling ramen down your shirt.
Cashrewards Sets Out Stall For New CMO
Thinking of applying for the Cashrewards CMO gig? Here are some insider tips that, yes, are tantamount to cheating.
‘I Ask For The TV Industry To Stand Up And Defend Itself’ – Seven Boss James Warburton Steps Down
The Seven supremo heads for the exits after five years. Here's hoping the Spotlight team organised the farewell bash.
Poh! Jamie! Adriano! Paramount ANZ reveals its tasty plans for this year’s MasterChef
It's your fan's guide to this year's MasterChef! Although no tips on how to pronounce crudités or use a un fait-tout.
Dentsu’s iProspect Partners With MOOD Tea Ahead Of May Campaign Launch
We love a Mood Tea here at B&T. Although we do store old screws and nails in the International Roast caterer's tin.
Opinion: When Culture Starts Eating Itself: Navigating The Age Of Self-eating Nostalgia
Born boss David Coupland asks is adland going through a nostalgia period? But please, no repeats of Best Of Red Faces.
Who’s Going To Cannes?! The TikTok Young Lions Winners!
It's Aussie adland's next gen! They're off to Cannes with high hopes of bringing back a Lion & a foot-long Toblerone.
Adobe Launches Express Mobile App With Firefly AI
Want to be the coolest kid at Friday staff drinks but forgot your retro Nikes? This new Adobe wizardry may do the trick.
ThinkNewsBrands & IMAA Extend News Publishing Education In Brisbane
Industry duo takes its publishing roadshow to Brisbane. Was disappointed no male attendees were wearing walk socks.
B&T Chats With Wavemaker’s Provocative Pioneers On Their Cross-Pacific Sojourn
B&T TV heads to Wavemaker's Sydney digs to interview two staffers from its New York & LA digs. If that makes sense?
HoMie & Champion Launch “Give One. Get One” Campaign Supporting Youth Homelessness Via Town Square
Much like the fête's prized chutney wears a blue winners sash, so too should this top initiative from HoMie & Champion.
Thinkerbell Takes Us Back To Summer In Latest Work For XXXX
This beer ad wants to take you back to summer! Just minus any chance of a shark attack on your morning bus commute.
Cannes Lions Unveils 2024 Programme Featuring Queen Latifah, Jay Shetty & P&G’s Mark Pritchard
Are you one of the lucky ducks heading to Cannes in June? Check out the headliner acts you'll be queueing hours to see.
Scroll Media Recruits Costa Panagos From Twitch
Costa Panagos set to bring South American flair to the Scroll offices. Assuming that he is, indeed, South American.
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
Born around the 2000s? Need to amp up your AI creds? This guide's for you (although it's not really that age specific).
General Motors Snares Heath Walker From Scania
Do you rage about oversized American cars on our roads? You need to bail up Heath Walker at parties & industry events.
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.