Does Good Design Increase Profit?
Good design used to be a luxury reserved for the rich, the famous and the fashionable but in recent years it is seen as a way to increase profit, revive the economy and reinvent the way we live.
From a business perspective disciplines such as manufacturing, engineering and electronics were seen as the drivers of economic success, as design had little place on the factory floor or in the boardroom.
Design was seen as lightweight and superficial and of little value in building competitiveness or generating profit.
The business of businesses was seen as manufacturing, production, engineering and distribution to customers that were only concerned with price.
Design was not seen as an essential part of the business process, as it did not contribute to the reduction of costs or increase of sales. It was, at best, seen as an after thought and considered an unnecessary and avoidable expense.
In recent years everything has changed, not least because of the success of companies like Dyson and Apple, as design has moved centre stage in the manufacture and marketing of so many products.
Design has become not only a source of competitive advantage for companies but in many cases ‘the’ source of competitive advantage.
Good design creates demand from customers which means companies can command premium prices and generate higher profits.
The link between good design and profitability has been proven and as a result design is now influencing the entire business process.
As traditional manufacturing loses its ability to create competitive advantage the importance of design increases as a way to compete.
Once design is embraced by a business the question is whether or not it can be a sustainable competitive advantage in the long-term.
The answer seems to be a resounding yes; as it is the design-led companies that are increasingly winning in the marketplace.
Companies that embrace design provide better customer experiences and so create a virtuous cycle of increased sales and profitability.
SO, good design has moved from a luxury to a necessity in the business process and now influences every aspect of what makes a company great.
What do you think? Does good design increase profit? Get in touch, we would love to hear your views contact Nick on 028 8224 9494 or via Twitter @nick_oec.