Why Design in Business

Although the term "design" is mostly associated with product quality and / or its aesthetic appearance, the main purpose of design as a discipline is to promote well-being in people's lives. 

It was this way of perceiving things and acting before them that attracted management discipline, paving the way for business innovation. 

Design is a powerful differentiation tool that companies can use to stand out from the competition. In the 1980s, marketing guru Philip Kotler stated that the importance of design to a company's competitiveness is evident (Kotler & Rath, 1984). 

Kotler's claims are based on about 15 studies - mainly in the UK, Scandinavia and the US – on the relationship between design and business performance. The results of these studies showed that the project actually had a positive impact on the performance of the business in terms of, for example, profitability, quoted value (share price), employment and export. 

Moreover, at a macroeconomic level, there is a strong positive link between the use of design and the competitiveness of the internal market. Implementing an effective design is not an autonomous exercise, but requires companies to develop comprehensive resources in this area. This design capability is increasingly valued as a source of competitive advantage, yet often overlooked by companies. 

It is no longer enough for companies to demonstrate executive excellence. Innovation and speed are the new must-haves. Customer focus has given way to customer obsession. Product development is no longer about designing things that customers want. It's about designing solutions that give customers the results they need. In this very different environment, business leaders know they need to adapt. But there are questions about how they can develop these attributes quickly. The answer is Design! 

Sara Gancho

23 Mar 2021