designing demand review

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Designing Demand Review Executive Summary |

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TheDesgnngDemandRevew


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| Executive Summary


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Foreword

BeforemyarrivalattheDesignCouncilIwasmadeawareofBERRandDIUSjointrequesttoreviewtheDesigningDemandprogramme.Giventheobjectiveofthe

programmetohelpSMEsbecomemorecompetitiveandmyownbackground inworkingwithbusinessesinthefieldsofR&D,designandinnovation,Irelishedtheopportunitytoleadthereviewandcommunicateitsfindingsandrecommendations.

Todate,DesigningDemandhastouchedmorethan1,300companiesandbusinessadvisors,andforthosecompanieswhohavefullyengagedwiththeprogrammethetransformationsarenothingshortofdramatic.Importantly,themarketfailurewhichtheprogrammeaddressedinitiallythatSMEsfailtousedesigneffectivelyremainsasrealtodayasitwaswhentheprogrammewaslaunchedsome18monthsago.

Althoughtheprogrammeisstillbeingrolledoutnationally,theDesignCouncil,togetherwiththeRDAsandtheirrespectivedeliverypartners,havemadesignificantprogressindefininganddeliveringit.Myinitialapproachtothisreviewwasforensic,toletthefacts

speakforthemselves.However,whiletheoutcomesandoutputsoftheprogrammedotellastory,therealvalueofDesigningDemandliesbeneaththerawdata.Thecasestudies,orbetterstillaconversationwiththeownersanddirectorsofabusinesswhohaveundertakenthe journey,servetotell thisstory inafarbetterwaythandataevercould.

ItisclearthatDesigningDemandsmentoringprocessishighlyeffective,butonthebasisthattheprogrammewillonlyeveraddresstheneedsandachievetheaspirationsofafew,itistheknowledgeandlearningderivedfromtheprogramme,communicatedeffectively,whichshouldservetoassistthemanyUKbusinesseswhocraveastrengthenedpositionintheirrespectivemarkets.

Thisreviewallowstimeforreflection,andmoreimportantlyanearlycoursecorrectioninareaswhereimprovementscanbemade.Thisopportunityforreflectionshould

betakenbyalloftheprogrammeskeystakeholders.Itiscleartheprogrammeisatitsstrongestwhenithashighlevelsupportandcommitmentwithinthesponsoringdepartments,withintheRDAsandtheirrespectivedeliverypartners,andwithintheclientcompaniesthemselves.

Myrecommendationstouchalmosteveryaspectoftheprogramme,butmoreimportantlytheyneedtobeownedandacteduponbyeachofthestakeholderssoactivitiescanbeoptimisedtothebenefitoftheclientsforwhomthisprogrammewascreated.Myrequestisforaparticipativeapproach,atalllevels,inachievinganewlyrevisedandsimplifiedprogramme,designedtobenefitthemostimportantstakeholderofall,thecustomer.

DavidGodberNovember2008


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| Contents

Contents

DefinitionofTermsandAbbreviations 04

ExecutiveSummary 06Keyfindings 08Overallconclusions 10Summaryofrecommendations 11

Introduction 15Thereviewbrief 15Methodology 15Structureofthereview 16

Section1 HistoryandContextoftheDesigningDemandProgramme 22TherationaleforDesigningDemand 22ThehistoryofDesigningDemand 23

Section2 DesigningDemandProgrammeDelivery 30DesigningDemandserviceoverview 30DesigningDemandservicedeliveryandfundingmodel 35TheDesigningDemandcustomerjourney 39Plannedprogrammedelivery:theCoxtargets 40Actualprogrammedelivery:regionalroll-outtodate 42Theregions 45Thedevolvednations 54

Section3 TheContinuingRoll-outofDesigningDemand 58TheSMEmarketforbusinesssupport 58Theopportunityforclosercollaboration:BusinessSupportSimplificationProgramme 58

Section4 AchievementsandEffectivenessofDesigningDemand 62

Metricsandmeasurement 62ExpectationsofDesigningDemandoutcomesofpreviousdesigninterventions 63

Section5 KeyFindings,ConclusionsandRecommendations 68Keyfindingsofthereview 68Overallconclusions 70Recommendations 71


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Designing Demand Review Contents |

TablesandFigures Figure1. Summaryprogrammeofworkforthereview 17

DeliveryPartners

Figure16. Cumulativenationalroll-outtoJune2008 46Figure17. Breakdownofregionalroll-outtoJune2008 46

Figure2. Stakeholderchart 18

Figure3. Designintervention:abriefhistory 24Figure4. DesigningDemandPilotProgrammessince2000 24Figure5. DesigningDemandthreelevelserviceoverview 31Figure6. Servicedeliverychartrolesandresponsibilities 31Figure7. DesigningDemandRegionalDevelopmentAgenciesand 36

Figure8. DesignCouncilcentralfunctionorganisationchart 36Figure9. DesignAssociaterecruitmentprocess 38Figure10. DesignAssociaterecruitmentschedule 38Figure11. DesignAssociatescoreattributes 41Figure12. SMEclientselectionguidelines 41Figure13. BSSPcustomerjourney 43Figure14. TheDesigningDemandSMEcustomerjourney(tobe) 44

Figure15. TheDesigningDemandTechnologyVenturecustomerjourney(tobe) 44

Figure18. Thefivestagesofbehaviourchange 64

Appendices SectionA: ListofevaluationsofDesignCouncil-ledbusinesssupport 76toJune2008

SectionB:BreakdownofregionalactivitytoJune2008 77

SectionI: DesignAssociaterosterJune2008 84

ofDesignAssociates

SectionC:OverviewofSMEs 81SectionD:ExplanationoftheBusinessLinkserviceandIDBmodel 82SectionE: OverviewofMAS 83SectionF: OverviewofKTPs 83SectionG:OverviewofIAS 84

SectionH:OverviewofHigh-GrowthCoaching 84

SectionJ: Overviewofcontinuingprofessionaldevelopment 85

Bibliography 87


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| Denitions of Terms and Abbreviations

Denition of Termsand Abbreviations

ThetermsusedinthisreviewaredefinedinthesamewayasthoseintheCox Review ofCreativity in Business (2005) andtheDTIEconomicsPaperNo.15Creativity, Design and

Business Performance (2005) .

Creativity isthegenerationofnewideaseithernewwaysoflookingatexistingproblems,orofseeingnewopportunities.

Innovation isthesuccessfulexploitationofnewideas.Itistheprocessthatcarriesthemthroughtonewproducts,newservices,andnewwaysofrunningordoingbusiness.

Design iswhatlinkscreativityandinnovation.Itshapesideastobecomepracticalandattractivepropositionsforusersorcustomers.Designmaybedescribedascreativitydeployedtoaspecificend.

LiketheCox Review,theDesigningDemandprogrammeisfocusedonsmallandmedium-sizedenterprises(SMEs).TheEUdefinessuchcompaniesasthosewithfewer

than250employeesandanannualturnovernotexceeding50m.

ThisreviewalsoemploysanumberoftermsthathavespecificmeaningsinthecontextoftheDesigningDemandprogramme:

Coxtargets aretherecommendeddeliverytargetsfortheroll-outofanationaldesignsupportforbusinessprogramme,asdescribedintheCoxReview.Thesetargetswereadoptedfortheroll-outofDesigningDemandto201011,andaredividedbetweenthedifferentlevelsofserviceofferedbytheprogramme.

DesignAssociates arerecruitedandapprovedbytheDesignCounciltodeliveroneormoreoftheDesigningDemandservices.TheyprovidespecialistbusinesssupportservicestoclientSMEs,butdonotconductdesignwork.DesignAssociateshave

ledcreativeteams,oftenhaveformalbusinessmanagementtraining,andalsohaveextensiveexperienceofdeliveringbusinessadviceorconsultancy.

DeliveryPartners arecontractedbytheRegionalDevelopmentAgencytodeliverandmanagetheDesigningDemandprogrammeinaregion.DeliveryPartnersareresponsibleforSMEclientprospecting,clientselection,referralontotheprogrammeandrunningprogrammeevents.DeliveryPartnersarealsoresponsibleforprogrammemonitoringandevaluation.

BusinessAdvisors aretrustedintermediarieswhoprovideinformation,diagnosticandbrokeragefunctionsinhelpingsmallbusinessesaccessbusinesssupportprogrammeslikeDesigningDemand.BusinessAdvisorsmaytypicallybeBusinessLinkAdvisors,butmayalsobefromprofessionalservicesandprovidebanking,legalandaccountingorfinancialadvicetoSMEs.


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Designing Demand Review Denitions of Terms and Abbreviations |

Finally,thisreviewwasconductedinthecontextoftheDepartmentforBusinessEnterpriseandRegulatoryReformBusinessSupportSimplificationProgramme(BSSP).Thegovernmentcommitted inthe2006budgettoreducethenumberofpublicly-fundedbusinesssupportprogrammesfrommorethan3,000tonomorethan100by2010.DesigningDemandisoneofthese100protectedprogrammes.BSSPwillprovideacommonbrandforbusinesssupport,acommoncustomerjourneyforclientSMEsandacommonportalBusinessLinkthroughwhichclientSMEsaccesstheseservices.

BusinessLinkemploystheIDBcustomer identificationandreferral processInformation,DiagnosticandBrokerage.

AWMBERR

BLBSSPCIFCSRDIPDIUSEEDAEMDAERDFGVAIASIDBBHHMA

LDAMASNPDNWDAOJEUONERDAREPSEEDASMESWRDAUKTI

YF

AdvantageWestMidlandsDepartmentforBusinessEnterpriseandRegulatoryReform

BusinessLinkBusinessSupportSimplificationProgrammeCeramicIndustryForumComprehensiveSpendingReviewDesignImmersionProgrammeDepartmentforInnovation,UniversitiesandSkillsEastofEnglandDevelopmentAgencyEastMidlandsDevelopmentAgencyEuropeanRegionalDevelopmentFundGrossValueAddedInnovationAdvisoryServiceInformation,Diagnostic,BrokerageBritishHardware&HousewaresManufacturersAssociation

(renamedastheBritishHomeEnhancementTradeAssociation),LondonDevelopmentAgencyManufacturingAdvisoryServiceNewProductDevelopmentNorthWestDevelopmentAgencyOfficialJournaloftheEuropeanUnionOneNorthEastRegionalDevelopmentAgencyRegionalEconomicPrioritySouthEastofEnglandDevelopmentAgencySmallandMediumsizedEnterpriseSouthWestRegionalDevelopmentAgencyUnitedKingdomTrade&Investment

YorkshireForward


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| Executive Summary

Executive Summary

ThisreviewofDesigningDemandwasjointlycommissionedbyDIUSandBERRinJune2008.DesigningDemandisabusinesssupportprogrammedevelopedby

theDesignCouncilanddeliveredinpartnershipwiththeRegionalDevelopmentAgencies(RDAs)inEngland.TheprogrammeisdesignedtobenefittheUKbyhelpingbusinessesbecomemorecompetitive,increaseprofitsandimproveperformancethroughthestrategicandeffectiveuseofdesign.

Theobjectiveofthisreviewisto:

1.Understandtheissuesandchallengesfacedindeliveringtheprogrammenationally,drawingoncomparisonswithothermodelstoinformthefurtherdevelopmentoftheprogramme,includingdeliverybytheremainingRDAsandthedevolvedadministrations.

2.Capturetheviewsofstakeholdersonthefuturedirectionoftheprogrammeafter201011andonwaysinwhichasustainablemodelmightbedeveloped,alignedwith

theBusinessSupportSimplificationProgramme(BSSP).

Thisreviewisinadvanceofacomprehensiveevaluationoftheprogrammeseconomicimpactandvalueformoneyassessmentwhichwilltakeplaceattheendoffiscalyear201011.

TheprogrammewaslaunchedatthenationallevelasadirectrecommendationoftheCox Review of Creativity in Business (2005).ThemarketfailurewhichtheprogrammeisdesignedtoaddressisthatsmallerbusinessesarelesslikelytousedesignintheirdailybusinesspracticeandthatSMEslackbothknowledgeandexperienceofthedesignsectorandthewaysinwhichgooddesign,appropriatelycommissionedandimplemented,couldaddsignificantvaluetotheirbusiness.

Furthermore,theprovisionofbestpracticedesignadviceorinformationisnoteasilyachievedwithoutgovernment-fundedadvocacyandintervention.Design,incommonwithotherareasofspecialistconsultancyandinvestmentinexpertise,exhibitsthecharacteristicsofexperiencegoodsgoodsorserviceswhosevaluecanbebestunderstoodaftertheservicehasbeenconsumed.However,becausetheyareexpensive,thesegoodsandservicescannotbetriedbeforepurchase.

ThestatedprogrammeobjectivesofDesigningDemandto201011areto:Deliverabalancedportfoliooftransformationalservicestobusinessincludingachievingthefullroll-outofDesigningDemandto4,950SMEsacrossthenineEnglishregionsbytheendoffiscalyear201011

ManageandensurethequalityandconsistencyofDesigningDemandforexistingandnewcustomersandpartners

Continuetoassess,refineanddeveloptheDesignCouncilsoffertobusinessIdentifyanddevelopasustainablefinancialmodelfortheexistingprogrammebeyond201011andforprogrammeextensionswithinnewmarkets.


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TheDesigningDemandcustomerjourneyisgovernedbythecommitmentandcapacityoftheclientSMEs,withopportunitiestypicallyfallingintothefollowingfivekeyareas:

VisionandStrategyProductandServiceBrandandCommunicationsUserResearch

CultureandEnvironment.

DesigningDemandoffersthreelevelsofsupport,eachofincreasingintensityandimpact,withdifferentpointsofentryandexit.ThethreelevelsofDesigningDemandservicesare:

Level1ProgrammeIntroductions:workshopsforbusinessadvisorsanddesignerstointroducethemtotheDesigningDemandprogramme,includinginformationonhowtoengageclientSMEswithdesign.Thisisaonetomanyservice.

SkillsAssists: introductoryeducationalworkshopsforclientSMEsandtechnologyventurestart-upsusingspeciallydevelopedDesignCounciltoolstoidentifydesignopportunitieslinkedtoanorganisationsstrategicgoals.Thisisaonetomanyservice.

Level2BusinessSupportServices:diagnosticsandtailoredconsultancysupportingkeydesignareasincludingnewproductorbranddevelopment,withexpertone-to-onementoringsupportprovidedbyaDesignAssociatedrawnfromtheDesignCouncilapprovedroster.Therearetwobusinesssupportservicesatthislevel,GenerateandInnovate.

Generategetsadesignprojectgoingforsmallandmedium-sizedbusinesseswithgrowthpotential, andfocusesonaspecificdesignprojectoverasixto12monthperiod.Generateisanopportunitytomakedesignalong-termpartofthebusinessbydevelopingnewskillsamongstaff,rangingfromchoosingandbriefingdesignerstomanagingthedesignprocess.Generatenormallyconsistsofuptofivedaysofspecialist

consultancy,providedbyaDesignCouncil-approvedDesignAssociate.

Innovatecutstimetomarketfornewtechnology. Innovatesupportsearlystagetechnologyventureswiththepotentialforrapidgrowth,helpingthemusedesigntostrengthentheirbusinessproposition,attractfunding,reduceriskandgettomarketfaster.Technologyventuresexplorepotentialdesignopportunitiesthroughanintensivediagnosticprocessandthenworkonarangeofprojectsforupto12monthswithstrategicguidancefromaDesignAssociate.

Level3TheImmerseservicehelpscompaniestobuildbiggerprofitsthroughdesign-ledstrategies. Immerseisaserviceaimedatmaturebusinesseswhoarehungryforgrowth,haveanappetitefornewideasandarewillingtoinvestinrealisingtheseideas

withthesupportofaDesignAssociate.Upto15daysofmentoringaredeliveredovera12to18monthperiod.Theservicealsoprovidesacohortof14clientSMEstheopportunityforpeer-to-peerlearningthroughaseriesofthreespecialistworkshopsonthesubjectsofbrand,newproductdevelopmentanduserexperience.

SMEdesignprojectsimplementedtodateasaresultofparticipationinDesigningDemandsGenerateandImmerseserviceshavedrawnonawiderangeofdesigndisciplines.These includestrategyandprocess,branding,newproductdesign,marketingandcommunications,packaging,webdesign,environmentandservicedesign.

OriginalCoxtargets

TheDesigningDemanddeliverytargetsto201011wereadoptedfrom

recommendationsmadeintheCoxReview.Thedeliverytargetsaredividedbetweenthedifferentlevelsofservice,andbetweenProgrammeIntroductions,SkillsAssistsandBusinessSupportServices.ThesearedetailedinTable1.


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| Executive Summary

ProgrammeIntroductions

Companies Total

perregion (9EnglishRegions)

BusinessAdvisorWorkshops

DesignerWorkshops

TotalProgrammeIntroductions

SkillsAssist&BusinessSupportServices

100

100

200

900

900

1800

BusinessWorkshops

TechnologyVentureWorkshops

Innovate

Generate

Immerse

TotalSkillsAssist&BusinessSupportServices

300

100

24

100

26

550

2700

900

216

900

234

4950

TotalDesigningDemand 750 6750

Table 1 The Cox Targets

KeyFindings

Whilecomprehensivefindingsaredetailedwithinthebodyofthereview,keyfindingsaresummarisedunderthesesevenheadings:

1.ProgrammeobjectivesTheregionalroll-outagainsttheCoxtargetsto201011hasbeenslowerthananticipated,howevertheprogrammeasdeliveredisofanextremelyhighquality.ButwhereregionshavesoughttodeliverahighvolumeofLevel1interventionsinashorttimescale,thishasresultedintheparticipationofSMEswhoarenotready,

orindeedappropriate,fortheprogramme.WhereRDAshavedrawndownEuropeanRegionalDevelopmentFunding(ERDF),fundingqualificationcriteriaalsoinfluencestheprogrammesroll-out.

2.Organisationalstructure,fundingandgovernanceDesigningDemandisanationalprogramme,conceivedandmanagedcentrallybytheDesignCouncilanddeliveredbytheRDAsandtheircontractedDeliveryPartners.

TheDesignCouncilisfundedbyDIUS.InadditiontotheGrantinAidfundingallocatedtotheprogrammebytheDesignCouncil,theRDAsagreedtomakeacontributiontothecentralfunctionfortheperiodtoMarch2010intheamountof1.8m,equallydistributedamongtheRDAsintheamountof200,000perRDA.Aproportionofthisfundingisyettobecommitted.

EachRDAhascommitteddifferentlevelsofincrementalinvestmenttotheprogrammeandhascontractedtodeliverytargetsthataremarkedlydifferentfromthetargetsenvisagedintheCoxReview.TargetsalsodifferbetweenRDAs.(ItisimportanttonotetheCoxregionaltargetswerestatedasanaveragefortheentireUK).However,currenttargetsdonotcurrentlyreflectthemarketneedsoftheregionsorindeedthepotentialfutureroll-outoftheprogramme.

ERDFfundingisdrawndownandappliedtotheDesigningDemandprogrammebyanumberofregions.

Thecostingmodel(basedonafixedRDAcontributiontoDesignCouncilcentralcosts)doesnotreflecttheactualprofileoftheprogrammeroll-outintheregions.

ThecostoftheDesigningDemandcentralfunctionisnotexplicitandtransparenttotheRDAs,andisnotconstitutedinsuchawayastoallowRDAstoagreetheprogrammescentralcostandactivities.


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3.AlignmentofDesigningDemandwithothergovernmentsupportprogrammesInsomecases,RDAsanddeliverypartnersareplanningtoalignDesigningDemandwithotherrelevantbusinesssupportofferingssuchastheManufacturingAdvisoryService(MAS),theInnovationAdvisoryService(IAS)andHigh-GrowthCoaching.

4.ProgrammecontentandclientreadinessDesigningDemandworksbestwhenitisdemand-ledwiththerightclient,atthe

righttime,withneedsthatcanbeaddressedspecificallythroughtheprogrammesofferings.EarlyqualificationtoidentifywhetherSMEclientsarelikelytoderivebenefitfromtheprogrammeimprovesitsproductivitytocostratio.

ClientselectionguidelineshavebeendevelopedbytheDesignCouncil,buttheyarenotuniversallyappliedtoqualifyclientsforparticipationintheprogramme,andtheyarenotmandatory.

Incommonwithotherbusinesssupportprogrammes,arangeofsupportservicesareavailable,andwhereprovidedtheyhavedeliveredabroadrangeofresults.

Level1supportservicesconsistentlyreceiveexcellentparticipantfeedbackbutdonotnecessarilyfunctionasthefirststepinamulti-tieredcustomerjourney.

Level2Generatehasdeliveredspecific,measurableandmaterialresultsbutsuccessisdeterminedbyclientreadiness.

Level2Innovatehasnotbeenwidelyrolledoutintheregions,withdeliverypartnersstrugglingtoeffectivelyidentifysuitableearly-stagetechnologyventureclients.Results,wheretheyexist,areimpressive,butthescaleoftheroll-outtodateistoosmalltohaveanimpactatthenationallevel.

Level3ImmersehasbeenimplementedwithamuchsmallernumberofSMEclientsandnotallRDAshaveofferedthisservice,but it ishighlyvaluedbyclientSMEs.

5.MetricsandmeasurementDatacollectionisfocusedonprogrammeroll-outagainsttheCoxtargets,withprojectevaluationconductedasaclose-outactivity.Giventheprogrammeisstillinitsroll-outandonlyarelativelysmallsampleofLevel2and3interventionsarecomplete,itistoo

earlytomeaningfullyunderstandoutcomesfortheLevel2and3services.Inaddition,adequateperformancemanagementmetricsdonotexisttoalloweffectivemonitoringandevaluationoftheprogrammedeliverythroughouttheentireSMEclientcustomerjourney,inparticularwhereitisrequiredtounderstandcliententrypoints.

Inparalleltothisreview,theBSSPteamareworkingonamonitoringandevaluationframeworkwithwhichall oftheBSSPproductownerswill comply.TherecommendationswillbemadetotheBSSPTransitionManagementBoard.

6.KeyprogrammeassetsofDesigningDemandDesignAssociates havebeenuniversallypraised.Thisisattributedtotheirindividualcapabilities,andtotheprocessesemployedintheirrecruitment,managementandcontinuingprofessional development.TheDesignCouncilhasdevelopedacomprehensive

roadmaptosupporttheDesignAssociatesthroughthedeliveryofspecialisedcoaching,qualitycontrolandcontinuingprofessionaldevelopmentincludingtheembeddingofthesustainabilityagenda.TheDesignCouncilisalsointheprocessofformalisinganalumnimodeltofacilitateadditionalknowledgetransferbetweenDesignAssociates.

TheintellectualpropertycreatedtodateforDesigningDemandisintendedtobeopensource:freelyavailabletoall SMEsthatwishto learnfromtheprogrammeandopentoimprovements intheprogrammeofferingswheneverandwherevertheyaresuggested.The intellectualpropertyoftheprogrammespecifically includesthetools,processesandwebcontentrelatingtotheprogramme.

TheDesigningDemandcentralteamhasamassedagreatdealofknowledgeandexpertise,notonlyfromDesigningDemand,butalsothepilotprogrammeswhichhave

precededit.Lossofkeypersonnelcouldconstitutearisktotheprogramme.

7.Brandmanagement,marketingandchannelmanagementTheDesignCouncilbrandisstrong,denoteshighqualityandengendersSMEclient


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0 | Executive Summary

confidenceinDesigningDemand.However,theDesigningDemandbrandandnamingconventionswillnecessarilybecomealignedwiththerecommendationsoftheBSSPTransitionManagementBoard.

TheDesignCouncilisresponsiblefordeliveringanationalmarketingandawarenesscampaign.RDAsandtheirdeliverypartnersareresponsibleforregionalmarketingactivities,buttheseregional activitiesare inmanycasessupportedbytheDesignCouncil.

Overallconclusions

DesigningDemandhasdemonstrateditsabilitytoaddsignificantvaluetobusinesses,andtheDesignCouncil,theRDAsandtheirDeliveryPartnershaveworkedhardoverthepast18monthstodefineanddelivertheprogrammetogreateffect.However,thisreviewhasraisedquestionsaboutthecomparativevalueofthedifferentproductsintheprogrammeportfolioandwhethertheportfolioofproductsisappropriatelybalancedtomeetregionalprioritiesandneeds.

ThemarketfailurewhichDesigningDemandwascreatedtoaddressstillexists.Intheabsenceoftheprogramme,thereareindicationsthatSMEswouldstillfailtoengagewithcreativeindustriesintheregionsorusedesigneffectivelywithintheirbusinesses.

Incommonwiththeoutcomesofothergovernment-fundedbusinesssupportprogrammessuchastheMAS,HighGrowthCoachingandtheIASinregionswherethisprogrammeisdelivered,earlyindicationsfromDesigningDemandarethatthedeepertheintervention(andtheinvestment),thegreatertheeventualreturnsonthatinvestment.

Businesschampionsmustexperiencethetransformationalimpactofgooddesignintheirbusinessbeforetheythemselvescanstarttobecomechampionsofdesignintheirregionsandintheirindustries.

Sir George Cox

Theroll-outofDesigningDemandhasfallenbehinditsoriginalvolumedeliverytargetsandobjectives.Theroll-outoftheprogrammethroughthechosenchanneloftheRegionalDevelopmentAgencieshasbeenslowerthananticipated.Thecentralteamhaslimitedcapacitytodelivermultipleregionalroll-outssimultaneouslyandinsomecases,whereslippageinoneregionhasaffectedanother,thishasbeenseenasarestrictiontoregionalroll-out.AfurtherissuehasbeenthetimetakentoreachcontractbetweentheDesignCouncilandtheRDAsduetotheprocessesinvolvedwithRDAscontractingtheirrespectiveDeliveryPartners.ThisisdueinparttotherigorousprocurementprocessesemployedintheregionsanddelayscausedbythecomplicatedprocessofsecuringERDFfunding.

Moresignificantly,thecurrentproductportfoliomixofhighvolumesofProgrammeIntroductionsandSkillsAssistsandlowervolumesofBusinessSupportServicesisnot

conducivetoreachingenoughbusinesschampionstochampiondesignasenvisagedintheCoxReview:

SMEsaremoststronglyinfluencedbytheexperienceofothercompaniesinthesamelocality,particularlythosewithwhomtheyhavebusinesslinks.Thosethathavesuccessfullybenefitedfromtheprogrammewouldserveaspracticalexamplestomanyothers.

Cox Review of Creativity in Business, 2005

WhiletheCoxReviewacknowledgedtheimportanceofknowledgetransferinalocality,theimportanceofpeerinfluencewithinasectorgroupingviatradeassociationsorother

sectorspecificcommunicationchannelsshouldalsobeconsidered.

PerhapsthemostimportantchallengeforthedifferentorganisationsinvolvedinthedeliveryofDesigningDemandistoensurethewidedisseminationofsuccessful


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programmeresultstoSMEsthatneedtohearthem.Theprogrammemonitoringandevaluationframeworksmustproducerobust,qualitativeconclusionsaboutthevalueofparticipationinDesigningDemand,supportedbymeaningfulquantitativemetrics.Atthenationalscale,thesequantitativemetricsarenotyetinevidence,notleastbecausetheprogrammeremainsinitsinfancy.Currentevidencesuggeststhatreturnoninvestmentoutcomesmaynotbemanifestuntilupto12to18monthsafteranSMEhascompletedtheprogramme.

ThesecondimportantchallengeforallthoseinvolvedinDesigningDemandistheeffectivealignmentofDesigningDemandwithotherbusinesssupportprogrammesbeingdeliveredintheregions.Inthemajorityofcases,RDAshavesoughttoalignDesigningDemandwiththeirexistingbusinesssupportofferings.ThisalignmentshouldnowbemadeexplicitandoperationalundertheBERR-ledBusinessSupportSimplificationProgramme(BSSP).

Thisreview,however,hasbeenconductedatthemid-pointinthenationalroll-outoftheprogramme.Theopportunityhereistorecommendchangesthatwillprovideacoursecorrection,notbreakwiththewaythattheprogrammehasbeenrolledouttodate.Stakeholdersupportfortheprogrammehasbeenoverwhelming:thedemandfromSMEs,althoughslowertoachievetractioninsomeareasthanothersisthere.The

programmesstrategicassetsareofexceptionalquality,mostimpressivelyevidentintherosterofDesignAssociatesrecruitedtodate.Earlyevaluationsofthepilotprogrammesindicatesignificantvaluehasbeenaddedtoparticipatingbusinesses,thoughmoreworkisrequiredtodemonstratethelastingimpactoftheprogramme.

TheRDAs,inpartnershipwiththeDesignCouncilandtheirDeliveryPartners,havemadegreatprogressinscalingupDesigningDemandtomeetanationalrequirement.Overthelast18monthsofresearchanddevelopmentithasestablishedincreaseddeliverycapacity,absorbedthemanylessonslearnedthroughthefirstwaveoftheprogrammeroll-outandgeneratedaclearunderstandingofhowtheprogrammemightbestbedeliveredinthefuture.

Alltheevidencegatheredforthisreviewdemandsthattheprogrammeroll-outcontinue

vigorouslyovertheremainderofthecurrentCSRperiod.TheexistingmonitoringandevaluationprocessesmustbestrengthenedandaugmentedunderBSSP,inadvanceofthecomprehensivevalueformoneyassessmentthatwill takeplaceattheendoffiscalyear201011.Itisatthispointthatthedecisionshouldbemadewhethertoscaleuptheprogramme,maintain itsdeliveryatasteadystate,ortoconsiderappropriateexitstrategies.

Summaryofrecommendations

ThisreviewmakescoursecorrectionrecommendationstobeimplementedwithintheperiodofthecurrentCSR,andcapturesstakeholdersexpectationsaboutthefuturepositioninganddevelopmentoftheDesigningDemandprogramme.ComprehensiverecommendationslieinSection5ofthisreview,howevertheessenceoftheserecommendationsisdetailedwithinthefollowingeightsuggestedareasofchange:

1.AshiftinprogrammeobjectivesThereshouldbeaspecificandimmediaterevision,byallkeystakeholders,ofkeynationalandregionaltargets,withanemphasisonachievingahigherlevelofdeeper(Level2and3)SME-orientedinterventions,specificallyGenerateandImmerse.TechnologyVentureactivitiesshouldalsobeprovidedthroughspecialistdeliverypartnersinareaswheretargetclientsareevident.

2.Alignmentoforganisationalstructure,governanceandfundingItisrecommendedthatDIUSandBERR,togetherwiththeDesignCouncilandtheRDAsshouldconsidertheprogrammespresentcentralorganisationstructure,costsandfundingmechanisms,withaviewtosimplificationandalignmentwiththeprogrammesobjectives.OfparticularnoteistheRDAspartialfundingoftheprogrammescentral

coststoMarch2010,whichisincontrasttothecentralfundingmodeloftheMASwhichreceivesitscentralcontributiondirectlyfromBERR.ItisfurtherrecommendedthattheRDAsengageatahighlevelandtakeamoreprominentroleinthegovernanceoftheprogrammealongsideDIUS,BERRandtheDesignCouncil.


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| Executive Summary

3.AlignmentofDesigningDemandwithothergovernmentsupportprogrammesTheDesigningDemandprogrammepresentlyexistsasasingleproductwithintheBusinessExpertiseportfolio.InthecontextofBSSP,theDesignCouncil,theRDAsandDeliveryPartnersshouldacceleratetheDesigningDemandprogrammeroll-outandseektocollaboratewiththeleadershipsofothernationalprogrammeswhererelevant,withparticularattentionbeingpaidtorelationshipswhichshouldexistwiththeManufacturingAdvisoryService,theInnovationAdvisoryServicewheredelivered,

andwithHighGrowthCoachingprogrammes.

4.ProgrammecontentandclientreadinessWhereashiftinprogrammeobjectiveshasbeenrecommended,thisshouldbepartneredwithamandatoryroll-out(toRDAsandtheirDeliveryPartners)ofcriteriaforclienttargetingandselectiontodrivetheprogrammesproductivity-to-costratio.Programmemonitoringandevaluationshouldalsosupportthecontinueddevelopmentandimprovementofeffectiveregionalclientselectionprocesses.

5.MetricsandmeasurementItisrecommendedthatBERR,DIUS,theDesignCouncilandtheRDAsshouldcollaborateinareviewofthecurrentmonitoringandevaluationframework,andinstituteasuiteofbusinesssupportperformanceanddeliverymetricscapableofassessing

howthedesigninterventionhasaffectedacompanysperformancewhilefallinginlinewithBSSPsrecommendationsformonitoringandevaluation.Theimpactofthecurrenteconomicdownturnshouldalsobeconsideredinthemonitoringandevaluationofprogrammeeffectivenessandvalueformoney.

6.AssessmentofkeyprogrammeassetsTheDesignCouncilshouldcontinuetofundthecontinuingprofessionaldevelopmentofDesignAssociatesthroughgrantinaidreceivedfromDIUS,inordertoenhancetheprogrammecontentaswellastheskillsoftheindividualDesignAssociates.Lookingtothepost-2011deliveryoftheprogramme,anIPstrategyforDesigningDemandstools,methodologiesandcontentshouldbedeveloped,inconsiderationofthepotentialfuturetransferofIPintotheprivatesector.

7.Brandmanagement,marketingandchannelmanagementTheBSSPrecommendationsonnamingconventionsandbrandmanagementshouldbeimplementedandshouldhelptoaddcoherencetotheprogrammesofferings,withparticularconsiderationbeinggiventopositioningtheDesignCouncilastheendorsingbrandoftheDesigningDemandprogramme.Theformationofstrategicrelationshipswiththemostappropriatenationalindustrybodies,toseekendorsementofDesigningDemandandtochannelhighqualitypotentialclientsintotheprogrammeshouldalsobeconsidered.PotentialclientsshouldbechannelledthroughtheBusinessLinkIDBprocesswhereverpossible.

8.FutureprogrammedevelopmentTheDesignCouncilshouldconsideracollaborativeapproachtoworkingwiththeincumbentorganisations(whereexisting)ineachofthethreedevolvednations,where

theprogrammeIPandcontentmaybeceded,andwheremarginalcontributiontocentralcostsmaybeachieved.

Considerationshouldalsobegiventoestabishingrelationshipswithleadingacademicinstitutionsinorderthatleadingedgethinkingintheprogrammescontentcanbecontinuouslydeveloped,andthatthelearningandevidenceresultingfromtheprogrammecanbefedintobusinessschoolsandprogrammestoinformbusinesseducationforthefuture.

RDAsshouldalsoconsidertheeconomiesofscaleandscopewhichmaybeachievedthroughtheappointmentofacommonsupplierforthedeliveryofDesigningDemand,alongwiththeotherrelevantBusinessExpertiseofferingsunderBSSP.

Finally,inrespectoffuturegovernanceandco-operation,theDesignCouncilandtheRDAsshoulddevelopanewmodelwhichalignsnationalandregionalobjectiveswiththefundingandresourcerequirementsoftheprogramme.


15/92

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Nayor ndustr es

The company

Nayor Industres was founded n 1890 tomanufacture c ay p pes. It now has three

ons Nayor Dranage, focused onay and past c dra nage ppes; Nayor

Concrete Products, whch servces theconstruct on and c eng neer ngsectors; and Nayor Gardenware, whch

manufactures two ranges of c ay products.Nayor has factores n Yorkshre, F fe andthe West M ands, and a turnover of 250m.

The problem

Nayor had nvested 18m n d vers fyngand modern ng products between 1994and 2004, but ts product deve opmentprocesses were ad hoc. A so, t had notput enough emphass on brand andmarket ng. The resu t was a ack of marketprofie and ow return on nvestment.

The responseThe busness ned the DesgnngDemand Immerse servce, whch wasa wake-up ca , accord ng to Chef

Executve Edward Nay or. Two proectswere taken forward, one to mprovemarket ng, overhau brand ng andupgrade recepton fac es, and the otherto stream ne product deveopment. Inpartcuar, the bus ness set out to bu tsYorksh re F owerpots brand. A market ng

rector has aso been apponted, g ng

desgn a board-eve presence n thebusness and ensurng s embedded

Nayors operatons.

The impact

nce part pat ng n Immerse, Nay orsprofits have doubed and 60 staff havebeen taken on. Investment n brandngand communcaton has ncreased sa esby 25 per cent and Yorksh re F owerpotssaes are expected to doub e. Overseasbusness has been generated for thefirst tme n Europe, Asa and Austra a.

Seventy per cent of Nayors sa es nowcome from products the busness ddntmake five years ago.

Edward Nay or, Ch Execut ve, Nay or Industr es

Case Study 1


16/92

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Craufurd Technoogy

The company

Craufurd Technoogy was foundedough n 1949 to make ppework and

ductng for the constructon ndustry. Laterts core busness became secondarystee structures and producton nesassembed on-s te n factores. Turnoverstands at around 3m.

The problem

The busness wanted to put moreemphas s on ts h gh-marg n spec st

archtectura metawork and sta essstee fabr cat on, part cu ar n hyg ene-sens ve sectors such as food process ngand pharmaceut cas. Craufurd had

so begun manufactur ng pubart nsta atons ncreasngy foundocatons ke corporate HQs, housngdeveopments and cty centres, andwanted to boost that busness.

Charman Dav d Daves says: We werentusng our sk s to best advantage. Thatmeant we were standng st and needed

to move on by mprov ng margns, findngnew customers and engag ng n morecha eng ng work.

The response

Work wth the Engneer ng Emp oyersFederaton on a strategy for attract ng

ents such as arch tects, deveopers,scu ptors and oca author es quckreveaed the need to update the corporatemage ne w th the busnesss newamb ons. Through the Generateservce, Craufurd ran a des gn pro ectthat resuted n a new dent ty extendngacross stat onery, brochures, sgnage,presentat ons, and a new webste and

showroom. Des gn Assocate JamesDugu d heped the busness define tsneeds, draw up a br ef and choose adesgner.

Desgnng Demand showed us the eve ofexce ence we need to acheve. Its ftedour sghts, says Daves.

The impact

Turnover s expected to ncrease by 1mn 2008 and the bus ness s p annng todoub e factory space and boost staff

numbers from 40 to 60. Dav es says:Were a ready startng to see the benefits.Were startng to get the knd of enqu esweve been ookng for.

Dav d Dav es, Cha rman, Crau urd Techno ogy

Case Study 2


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Designing Demand Review Introduction |

Introduction

InJune2008,DIUSandBERRjointlycommissionedareviewoftheDesigningDemandbusinesssupportprogramme.Thisreviewisinadvanceofacomprehensive

evaluationoftheprogrammeseconomicimpactandvalueformoneyassessment,whichwilltakeplaceattheendoffiscalyear201011.

TheintentionistoassesstheprogressofDesigningDemandwhileitisstillinitsinfancy,sothatlessonscanbedrawnoutwhichwillfurtherinformthedevelopmentoftheprogrammeasitisrolledoutnationally.Keyfindingswillalsoinformthedevelopmentofasustainablemodelforthefuturedeliveryoftheprogramme.

Thereviewbrief

Thereviewfocusesontherespectiveelementsoftheprogramme,itsoriginalobjectivesandreasonforbeing,theclientstowhomitisdirectedandthemodelofprogrammedeliveryanditsoutcomes.Theobjectivesofthereviewareto:

1.Understandtheissuesandchallengesfacedindeliveringtheprogrammenationally,drawingoncomparisonswithothermodelstoinformthefurtherdevelopmentoftheprogramme,includingdeliverybytheremainingRDAsandthedevolvedadministrations.

2.Capturetheviewsofstakeholdersonthefuturedirectionoftheprogrammepost-2011andonwaysinwhichasustainablemodelmightbedevelopedinalignmentwiththeBusinessSupportSimplificationProgrammesrecommendations.

Methodology

ThereviewhasbeenledbyDavidGodber,thenewlyappointedDeputyChiefExecutiveoftheDesignCouncil,assistedbyAccenturesPublicServiceStrategypractice.Thissection

outlinestheresearchmethodsemployedinthereviewofDesigningDemand.

InterviewswithkeystakeholdersPrimaryresearchundertakenincludedstructuredin-depthinterviewswithkeystakeholderswithintheEnglishRDAsandtheirrespectivedeliverypartners,DesignWales,TheLighthouse(Scotland),InvestNorthernIrelandandEnterpriseIreland.FurtherinterviewshavebeenconductedwithkeyofficialsatBERRandDIUS.AdditionalstakeholderinterviewshavebeenheldwithanumberofDesigningDemandsclients,withkeybusinessorganisationsandsector-specifictradeassociations,withtheDesignCouncilcentralteamandanumberoftheDesignCouncil-approvedDesignAssociates.

Workshopswithkeystakeholderstoassessemerginghypothesesandoptionsfortheprogrammesfuturesustainability

Twoworkshopswithkeystakeholdershavetakenplacethroughthecourseoftheprojecttotesthypothesesandconsiderthefuturesustainabilityoftheprogramme.SenioreconomistsfromBERRandDIUSalsoparticipated intheseworkshops.


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| Introduction

Interviewswith,anddeskresearchon,DesigningDemandclientsPrimaryanddeskresearchhasalsobeenundertakenontheDesigningDemandprogramme,andalsooncasestudiesrelatingtothecurrentprogrammeandpilotprogrammesprecedingthecurrentprogramme.

DeskresearchonexistingevaluationreportsforpreviousDesignCouncilactivityDeskresearchhasbeenconductedonexistingindependentevaluationreportswhich

werecompletedonbehalfoftheDesignCounciltoassesstheoutcomesandoutputsfrompreviousbusinesssupportinterventions.

AbriefingwiththeDesigningDemandAdvisoryBoardTheAdvisoryBoardconvenesonaquarterlybasistoprovidegovernanceanddirectionandtoreviewtheprogrammesstrategyandprogress.TheAdvisoryBoardwasbriefedontheemergingfindingsofthereview.

AbriefingwiththeRDAsteeringgroupforDesigningDemandTheRDAsteeringgroupwasinitiallyformedtoshareexperienceandknowledgeabouttheprogrammesactivities,operationsandresults.TheRDAsteeringgrouphasbeeninformedofthereviewsfindingsandrecommendations.AllresponsesandissuesraisedbytheDesignCouncilsregionalpartnershavebeenconsideredinthefinal

recommendationsofthisreview.

Structureofthereview

Section1detailsthehistoryandcontextoftheDesigningDemandprogramme,includingtheevolutionof:ProgrammeIntroductionsworkshopsforBusinessAdvisorsandDesignersSkillsAssistsworkshopsforbusinessesBusinessSupportServicestheGenerate,InnovateandImmerseservices.

Section2givesanoverviewoftheDesigningDemandprogrammedelivery,includingtheserviceoverview,thecustomerjourney,theplannedprogrammedeliverytargets,theservicedeliverymodelincludingrolesandresponsibilities,actualprogrammedeliveryto

dateandregionalprogress.

Section3exploresthecontinuingroll-outofDesigningDemand,includingopportunitiesforclosercollaborationwithotherfundedprogrammesundertheBusinessSupportSimplificationProgramme(BSSP).

Section4considerstheachievementsandeffectivenessofDesigningDemandatthisearlystageintheprogrammeroll-out,detailingtheinputs,outputsandexpectedoutcomesoftheprogrammeandreflectsontheoutcomesofpreviousDesignCouncilbusinesssupportinterventions.

Section5summarisesthereviewfindingsandrecommendations,highlightingissuesforconsiderationduringtheremainderofthecurrentCSRandforthefuturepositioningof

theprogramme.


19/92


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Week5

18- 22August

Week6

25- 29August

Week7

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Week8

08- 12September

Week9

15- 19September

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Workstreams:


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| Executive Summary

Figure 2

Stakeholder chart

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RDA De very Partners

Centra Government

Prev ous Stakeho ders

Sector Organ satons

Desgn Counc

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RDA

CatherineAllford

EMDABus nessSupportDeve opmentManager

ZoeAllis

Yorksh reForwardPro ectManagerInnovaton

NickBarley

Scot andL ghthouserector

MikeBarton

AWMInter ors&Lfesty eC usterManager

DrMaxBroadhurstLDAHeadofInnovaton

MichaelCarr

EMDAExecutveDrectorofBusnessServ ces

GavinCawood

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JimFarmery

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RobinGillum-Webb

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DrSimonGoon

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AlanHarris

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IanHarrison

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RichelleHarun

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KeithHarvey

AWMInnovat on&TechnoogyDeveopmentManager

LoreleiHunt

SWRDArectorofInnovat on

JackieIrving

OneNorthEastServ ceSectorSpec stAdv sor

SumeetKanwar

EMDABus nessSupportTeamManager

JimKeane

NWDAHeadofInnovaton&KnowedgeTransfer

RichardMale

SWRDASc ence&IndustryManager

AlanPain

EEDAContractManager

RogerParr

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DavidRead

NWDAHeadofProductDeveopment

TobyScott

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BenStrutt

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IanWilliams

OneNorthEastrector,Bus ness&Industry

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DavidBartlett

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KeithDunton

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HeadofDesgn&Innovat on

WillieHerdman

ONENorthEastDe veryPartnerBIC

SusanOliphant

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GlennStone

GrantThorntonLDADe veryPartner

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MarkGibson

BERRrectorGenera Enterprse

&BusnessGroupJaneHartshorne

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ChristineHewitt

DIUSDeputyDrectorInnovatonDe very

MichaelHodson

BERRSenorEconomstEconomcAdvcetoBSSP

RayLambert

DIUS

DeputyDrector

JohnMackay

BERRMASPro ectManager

AndrewMiller

BERRAss stantD rector

JaniceMunday

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FionaMurray

BERRMarketng&BrandngPro ectLeadBSSP

RobSullivan

rectorofManufactur ngMater s&Env ronment

PreviousStakeholders

SirGeorgeCox

CliveGrinyer

CISCO-IBSGrectorofCustomerExper ence

ProfessorJohnBoult

Brune Unvers ty

MartinRigby

ETCap ta tedJo ntMD

SectorOrganisations

JohnDunsmere

Br shChamberofCommerceManag ngD rector

KarinaKnudsonBr shChamberofCommerceSenorBusnessDeveopmentManager

AndrewSummers

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MartinTemple

EEFCha rman

DesignCouncil

HelenAldred

DesgnngDemandProgrammePanner

JonathanBallDesgnngDemandSenorDes gnAssoc ate

LouiseConolly-Smith

DesgnngDemandSen orPartnersh pManager

Son aDahl

DesgnngDemandDes gnAssoc ateManager

BonnieDean

Adv soryBoard&DesgnCounc Member

SarahGardner

DesgnngDemandProgrammeContentOfficer

DavidKester

Ch efExecutve

AshnaKhan

DesgnngDemandPartnershpManager

EllieRuncie

DesgnngDemandProgrammeD rector

PaulTravers

DesgnngDemandKnowedge&Stakeho derManager

DesignAssociatePool

RobertBewick

Generate

EmmaCollinsDes gnersWorkshopWorkshopAssoc ate

AndyCripps

Generate&Immerse

NickDevitt

Generate

IanFerris

Generate

EvanKitsell

Generate&Immerse

EllisPitt

Generate&Immerse

GavinPryke

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Innovate

SME

DouglasBell

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BillyBoyle

Ow stone

IanHarrison

AlchemyHea thcare

AdamParker

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SteveWoodhouse

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0 | Executive Summary


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| History and Context

History and Contextof the Designing

Demand Programme

Creativityproperlyemployed,carefullyevaluated,skilfullymanagedandsoundlyimplemented,isakeytofuturebusinesssuccessandtonationalprosperity.

The Cox Review of Creativity in Business, 2005

1.01 ThissectiondetailsthehistoryandcontextoftheDesigningDemandprogramme,includingtheevolutionofProgrammeIntroductionsworkshopsforBusinessAdvisorsandDesigners;SkillsAssistsworkshopsforbusinesses;andBusinessSupporttheGenerate,InnovateandImmerseservices.Itincludesabriefaccountofthepreviousbusinesssupportpilots,ledbytheDesignCouncil,whichshapedDesigningDemand.

TherationaleforDesigningDemand

1.02 TheDesigningDemandprogrammewascreatedandlaunchedbytheDesignCouncilinpartnershipwiththeRDAsasarecommendationfromtheCox Review of Creativity inBusiness: Building on the UKs strengths (2005).DesigningDemandsetsouttoimprovetheperformanceofUKbusinessesbyhelpingthemtousedesignasakeydriverofgrowthandcompetitiveness.TheprogrammesoverarchingobjectiveistoembedeffectiveprocessesforthemanagementofdesigninSMEsandalsospecificallyintechnologystart-ups.

1.03 TheCox Review identifiedfivemainbarrierswhichpreventedSMEsfromaccessingtheUKscreativesector:1. Lackofawarenessandexperience(oftheUKscreativetalents)2. Lackofbeliefinthevalueof,orconfidencein,theoutcome3.Notknowingwheretoturnforspecialisedhelp

4. Limitedambitionorappetiteforrisk5. Toomanyotherpressuresonbusiness.

1.04 InparalleltotheCox Review,theDTIEconomicsPaperNo.15Creativity, Design andBusiness Performance (2005),providedcompellingevidenceoftheimpactthatcreativitycouldhaveonbusinessperformance.However,thepaperalsoreportshowsmallerbusinessesarelesslikelytomakeuseofdesignintheirdailybusinesspractice.SMEslackbothknowledgeandexperienceofthedesignsectorandtheways inwhichgooddesign,appropriatelycommissionedand implemented,couldaddsignificantvaluetotheirbusiness.

1.05 BERRssupportingevidenceforthegovernmentactionplanforsmallbusiness1statesthattoofewsmallbusinessesgrowfastenough,orarecompetitiveenough,tocontributeasfullyastheymighttooverallproductivitylevels.ManyUKsmallbusinesseswantto

grow,butthereareanumberofmarketfailuresandassociatedbarriersthatpreventsmallbusinessesmaximisingtheirpotential.Specificallyhighlightedasanareaoffailureisthelackofinformationavailabletothepurchasersofbestpractice,thisproblembeingparticularlyacuteforsmallbusinessesthattendtofacegreaterinformationbarriersthan

1BERR,BuildingtheCapabilityforSmallBusinessGrowth.www.berr.gov.uk/files/file38301.pdfExtractedfromAgovernmentactionplanforsmallbusinessTheevidencebase(ProducedbytheDTISmallBusinessService)


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Designing Demand Review History and Context |

largerbusinessesbecauseoftheirlimitedresources.

1.06 Smallbusinessescapabilitytogrowisalsoassessedasbeinglimitedbyalackofskills.Smallbusinessesexperienceparticulardifficultiesinjudgingthequalityoftrainingandoftendonotappreciatethebenefitsintermsofimprovedbusinessperformance.Thisproblemcanbeaccentuatedbythelowinitialskillsbaseinmanysmallbusinessesthataffectperceptionsaboutthevalueofexternallyavailablesourcesofadviceandexpertise.

1.07 Thereisalsoevidenceofsignificantdisparitiesinthelevelsofinnovationpracticedby2UKbusinesses.CoshandHughes(2003) alsosuggestthatlargerbusinessesand

manufacturingbusinessesaresignificantlymorelikelytoengageinResearchandDevelopmentthansmallerbusinessesorthoseintheservicesector.

1.08 TheUKInnovationSurvey20073statesthatbothlargerandsmallerenterprisesreportedmarketand internal sourcesasmost importantfor informationon innovation.Thissuggeststhatenterprisestendtorelyontheirownexperienceandknowledgecoupledwithinformationfromsuppliers,customersandclients.The leastfrequentlycitedsourceswereinstitutionalsources.Technical,industryorservicestandardswerealsoahighlyimportantsourcefor12 percentoflargefirms.

1.09 ResearchbytheDesignCouncilhasconsistentlyshownalinkbetweentheuseofdesignandbetterbusinessperformanceacrosskeymeasuresincludingturnover,profitandmarketshare,whileatthesametimedemonstratingthatmostbusinessesarefailingtomakebestuseofdesign.Forexample,rapidlygrowingbusinessesaresixtimesmorelikelythanstaticonestoseedesignasintegraltotheiroperations,and83percentofbusinesseswhichseedesignasintegralhavelaunchednewofferingsinthepastthreeyears,comparedtoonly40percentofbusinessesoverall.Meanwhile,morethanfouroutoftenbusinessesdonotinvestindesignatalland64percentgiveitalimitedroleatbest.While32percentoflargerbusinessesseedesignasintegral,only15percentofSMEssharethisview.4

1.10 ThisevidencehelpedtocreateapowerfulcasefortheCoxReviewsrecommendationtoacceleratetheroll-outoftheformerDesignforBusinessprogramme,whichhadbeen

pilotedbyAWM,SWRDAandtheLondonDevelopmentAgency,andmakeitavailabletoSMEsnationwide.

Whatisrequiredisanationalprogramme,toaconsistentlyhighstandard,thatcanberefinedandextendedasexperienceisaccumulated,availabletoSMEsregardlessoflocation.ThisneedsalloftheRDAsandthedevolvedadministrationsvigorouslytodrivetheprogramme,albeitaccommodatinglocalpriorities.

Cox Review of Creativity in Business, 2005

1.11 Theprovisionofbestpracticedesignadviceorinformationisnoteasywithoutgovernmentfundedadvocacyandintervention.Design,incommonwithotherareas

ofspecialistconsultancyandinvestmentinexpertise,exhibitsthecharacteristicsofexperiencegoodsgoodsorserviceswhosevaluecanbebestunderstoodafterthegoodorservicehasbeenconsumed.However,becausetheyareexpensive,thesegoodsandservicescannotbetriedbeforepurchase.

1.12 InadditiontotheexperiencegoodsnatureoftheprogrammeandthebarriersidentifiedbyCox,thisreviewhasfoundthatevenwhereSMEsmaybeawareofthestrategicvalueofdesigntotheirbusiness,orbewillingtopaytoexperiencethevalueofdesign,themajoritydonothavetherequisiteskillsorexperiencetoengageexternaldesigners.SMEslacktheabilitytowriteadesignbrief,tochoosethebestpitchfromadesignagency,ortoproject-manageadesignintervention.

ThehistoryofDesigningDemand

1.13 DesigningDemandwasbornfromarichhistoryofdesign-basedbusinessinterventionprogrammes.Thesedatebacktothe1970swhentheCouncil forIndustrialDesign(nowtheDesignCouncil)deliveredgovernment-fundeddesignconsultancyinconjunctionwith

2Cosh,AandA.Hughes,(eds)(2003)EnterpriseChallengedPolicyandPerformanceintheBritishSMESector19992002.Cambridge,CentreforBusinessResearch.3DIUS,Robson,SandHaighG.FirstFindingsFromtheUKInnovationSurvey2007.4DesignCouncilResearchBriefing,2008.www.designcouncil.org.uk/briefing01


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| Executive Summary

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1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

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Des gn Intervent on: A br story

BowStreetHaymarket

SirJohnSorrell

IvorOwenCBE

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Evelyn

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SeanBlair

Sainsbury

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Creative

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ScottishDesign

DesignWales

NorthernIreland

DesignAdvisors DesignCounsellors

Location

Chairman

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Figure 4

Des gn ng Demand P ot Programmes s nce 2000

NameofProgramme Duration No.ofcompaniesinvolved

24/7 20022005 11

Human ngTechnoogy 20022005

Des gnforBus ness 20042006 150+

Des gnImmerson 20042006 15ManufacturngCampagn

TechnoogyCampagn 20042006 12

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SirChristopher

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SirGeorgeCox SirMichael

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DavidKester

CliveGrinyer

DavidGodber

RichardEisermann

UKInnovation

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HarryRich

DeputyChiefExecutives

DesigningDemand

GeneratePilot

Yorkshire

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BigIdea/

workshops

24/7/Immerse

Demonstration

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DesignImmersion

ManufacturingCampaign

DesignforBusiness

WorkshopPilot


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| History and Context

governmentgrantstohelpbusinessestoinvestinspecificdesignprojects.

1.14 InrelationtothedevelopmentofDesigningDemandinitscurrentform,theDesignCouncilhasimplementedanumberofpilotandbusinesssupportprogrammesintheperiodsince200102.

TheevolutionofgrowthservicesforSMEs

1.15 TheDesignforBusinessprogrammewascreatedbytheDesignCouncilfromaseriesofpilotprogrammesforSMEsinthemanufacturingandtechnologysectorsbetween2002and2006.Theprogrammesetouttodevelopandtestthescalabilityofstrategicdesigninterventionsandhelpbusinessidentifyhowdesigncouldaddressbusinesschallenges,takingpracticalstepstoimplementchangethroughoutabusiness.

1.16 WithinthispilottheDesignCouncilworkedcloselywithnationaltradeassociationsincluding:theBritishHardware&HousewaresManufacturersAssociation(nowrenamedBritishHomeEnhancementTradeAssociation),theCeramicIndustryForum(CIF),UKScienceParksAssociation,UKBusinessIncubationandtheEngineeringEmployersFederation(EEF).Thesestrategicallianceshelpedtotargetcompanieswhowerereadytoengagewith,andbenefitfromtheprogramme.

ToomanyUKmanufacturersarestillfocusedoncuttingcosts,asopposedtoincreasingmarginsthroughtheapplicationofdesignandinnovation.

Martin Temple, Director General (now Chairman) of the Engineering Employers Federation

cited in the Cox Review of Creativity in Business (2005)

1.17 Thepositiveoutcomesresultingfromtheprogrammewerereportedinthe2005CoxReview,whichrecommendedthatanationwideprogrammeshouldbeintroducedandsupported.TheDesignforBusinessprogramme,asitwasnamedintheCoxReview,offeredthreelevelsofincreasinglyintensivebusinesssupport.

1.18 Level1AsetofinspirationalandeducationalworkshopsandtoolsforSMEs,businessadvisorsanddesigners.

1.19 Level2Tailoredinterventionsinkeyareassuchasproductdevelopmentorbrand,withexpertmentoringsupporttoimplementchange.

1.20 Level3Theopportunityforselectedcompaniestodevelopandimplementaprogrammeofdesign-ledtransformation.ThismostintensivelevelofinterventionwasdevelopedfrompilotsinthetechnologyandmanufacturingsectorstheresultingserviceswereInnovateandImmerserespectively.

Theschemeishighlyratedbyparticipantsandhasdelivereddemonstrablesuccesswith

respecttotheirunderstandingofandwillingnesstoexploitdesigninboththestrategicandoperationalspheres

Evaluation of Technology Campaign, Technopolis, June 2006

1.21 TwentytechnologyventuresparticipatedintheInnovatepilotprogramme(theTechnologyCampaign).The2006 independentevaluationofthisprogrammeconcludedthatallparticipatingcompaniesfeltthattheprogrammehadanoverallbeneficial impactonthebusiness inthefollowingways:strongerbusinessproposition;enhanced incomeandsurvival prospects;shortertimetomarket;alignmentofproductsandserviceswithcustomersneeds.

1.22 Specificresultscontainedwithinthisevaluationconcludedthat:80 percentreportedachangeinstrategicdirection80 percentreportedachangedattitudetodesignandunderstandingthevalueofdesign,cultureandvision


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Designing Demand Review History and Context |

80 percentincreasedtheirabilitytoraisefinance75percentinvestedsignificantlyindesignandwereconfidentofareturnoninvestment

1.23 ThirtySMEsparticipatedintheImmersepilotprogramme.The2006independentevaluationoftheImmersepilotsalsoconcludedthatallparticipatingcompaniesfeltthattheprogrammehadanoverallbeneficialimpactonthebusiness.

Theprogrammehasdonewellatproducingtheexpectedoutcomesandthereisanoptimism(withintheclientbase)thatthiswillleadtotheimpactsofincreasedturnover,increasedcompetitiveness,safeguardingjobsandanincreasingbottomline.

Evaluation of Design Immersion, Technopolis, October 2006

1.24 TheimpactfromImmersepilotsatthepointofprogrammecompletionwere:Turnoverincreasedby14 percentaboveearlierpredictedlevelsProfitincreased9 percentaboveearlierpredictedlevelsEmploymentincreased13 percentaboveearlierpredictedlevels.

1.25 TomeettherecommendationsoftheCoxReview,theLevel3Immerseproduct

wasadapted,tobeimplementedonasmallerscaleandoverashortertimeperiod.ThisisnowknownastheDesigningDemandLevel2Generateproduct.GiventhatthedeliverytimeforInnovatewasshorterthanthatforImmerse,InnovatewasalsopositionedatLevel2.

ThedevelopmentofProgrammeIntroductionactivities

1.26 InparallelwiththedevelopmentoftheDesignCouncilinterventions,someregionalpartnershipsalsoledtothedevelopmentofProgrammeIntroductions.TheSouthWestRegionalDevelopmentAgency,SWRDA,workedwiththeDesignCouncilonthedevelopmentofworkshopsaimedatregionally-baseddesignersanddesignagencies.ThefeedbackonthecontentandqualityoftheDesignerworkshopwasverypositive,andtheseworkshopswereintegratedintotheDesigningDemandserviceportfoliowhen

thenewprogrammewaslaunchednationally.

1.27 Similarly,theBusinessAdvisorProgrammeIntroductionworkshopsweredevelopedfromtheDesignCouncilsexperienceofengagingwithindustrybodies.Theobjectiveoftheseworkshopswastoensurethatregionally-basedbusinessintermediarieswouldbecomefamiliarwiththenewprogrammeandbeabletoreferSMEseffectively.


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| Executive Summary


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0 | Programme Delivery

Designing DemandProgramme Delivery

2.01 ThissectiongivesanoverviewoftheDesigningDemandprogrammedelivery,theserviceoverview,thecustomerjourney,theplannedprogrammedelivery

targets,theservicedeliverymodelincludingrolesandresponsibilities,theactualprogrammedeliverytodateandtheprogressmadeineachoftheregionswheretheprogrammeisactive.

DesigningDemandserviceoverview

2.02 DesigningDemandseekstouseexpertsintheprovisionofhighleveladvice,mentoringandconsultancyforSMEstoembeddesignthinkingwithinbusiness.DesigningDemandcanbeaccessedbyclientSMEsintwomainways:Athree-levelbusinesssupportservice,fundeddirectlybyRDAsandmanagedbyregionaldeliverypartners.

TheDesigningDemandwebsite,onwhichdelegatesregisterforworkshopsandwhichmakesavailableprogrammeknowledgeandcasestudiesdemonstrating

thebenefitofdesigntoSMEs.

2.03 Thethree-levelbusinesssupportserviceisdividedintosevencomponentparts.EachlevelincreasesindepthofinterventionandlengthofSMEparticipation.AlloftheservicesaredeliveredbyDesignCouncilapprovedDesignAssociates.Currently,nochargeismadeforanyoftheservices.

2.04 Level1ProgrammeIntroductionsWorkshopsforBusinessAdvisorsandDesignersTherearetwoProgrammeIntroductionworkshopsforbusinessadvisorsandfordesignerstointroducethemtotheDesigningDemandprogramme.WorkshopsfocusonhowtoengageclientSMEswithdesign-relatedgovernmentfundedbusinesssupportservices,orwithdesignersanddesignagencies.Thisisaonetomanyservice.Theseworkshopsareahalf-dayindurationanddonotcounttowardstheachievement

oftheCoxtargets.

2.05 TheBusinessAdvisorWorkshop ismarketedtobusinessintermediariesandadvisorsfromBusinessLinkandfromotherprofessionalservicesprovidingadvicetoSMEsonbanking,accountancyorlaw.Theobjectiveofthisworkshopistoachieveclientreferralsintotheprogramme.

2.06 TheDesignerWorkshopisaimedatengagingthedesignsectorwithDesigningDemand,particularlydesignerswhodonotusuallyworkwithSMEs.Insomeregions,thelackoflocaldesignerswiththeexperienceandcapabilitytocommunicatethecommercialbenefitsofdesigntoSMEswasidentifiedasapotentialmarketfailureinitsownright.TheDesignerWorkshopaimstoraiseawarenessoftheDesigningDemandprogrammeandtoassisttheregionaldesignsectorinbuildingnewSME

clientrelationshipsthroughtheirunderstandingofthecommercialneedsofSMEclients.


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Figure 5

Designing Demand three level serviceoverview

Workshops

Up to 1 day

Generate

&Innovate

Up to 12 months

Immerse

12-18months

Business

Wshop

Technology

Venture

Wshop

Business

Advisor

Wshop

Designer

Wshop

Generate Innovate

Immerse

Figure 6

Servicedelivery chartroles and responsibilities

BusinessWorkshop

TechnologyVentureWorkshop

BusinessAdvisorsWorkshop

DesignersWorkshop

Generate Innovate

Immerse

Workshops

Up to 1 day

Generate &InnovateUp to 12 months

Immerse

1218 months

QualityAssurance

DeliveryPartner

Design

Associate


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| Programme Delivery

2.07

2.08

2.09

2.10

2.11

2.12

2.13

2.14

Level1SkillsAssistsworkshopsforSMEsandtechnologyventurestart-upsTheseone-dayintroductoryeducationalworkshopsforclientSMEsandearlystagetechnologyventurestart-upsusespeciallydevelopedDesignCounciltoolstoidentifyanorganisationsdesignopportunities.Thisisaonetomanyserviceforupto25participants.TheworkshopsaredesignedtobeuptosixhoursindurationinordertoqualifyforRDAsingleprogrammefundingasaSkillsAssist.TheworkshopsdonotqualifyforERDFastheERDFminimumrequirementforsupport isatwo-day intervention.

TheSMEWorkshop introducesSMEmanagersanddirectorstotheprinciplesofgooddesign.TheworkshopincludespracticaldemonstrationsandthedisseminationofDesignCouncilcasestudies.TheSMEclientworkshopmayserveasarecruitmenteventfortheGenerateorImmerseservices.TheregionshaveexperiencedvariablelevelsofsuccessinconvertingworkshopparticipantsintoclientsforLevel2and3growthservices.

TheTechnologyVentureWorkshopactsasanintroductiontothespecialistDesigningDemandserviceforearlystagetechnologyventurestart-upsonly.TheworkshopprocessisexplicitlydesignedtoidentifywhetherclientsaresuitabletoparticipateintheInnovateservice.

Level2growthservicesGenerateandInnovateLevel 2growthservicesofferdiagnosticsthatresult intailoredsupport,withexpertonetoonementoringsupportprovidedbyaDesignAssociatedrawnfromtheDesignCouncil-approvedroster.Therearetwogrowthservicesatthis level,GenerateandInnovate.

GenerategetsdesignprojectsgoingforSMEbusinesseswhohavedemonstratedgrowthpotential. GeneratefocusesonaspecificdesignprojectimplementedbytheclientSMEoverasixto12monthperiod.ClientSMEsmayentertheGenerateservicebydirectreferralfromaBusinessAdvisor,ormayhaveattendedtheSMEworkshop.TheclientSMEreceivesuptofivedaysofDesignAssociatesupporttodefineandimplementadesignproject.

Generateisanopportunitytomakedesignplayamoresignificantrolewithinaclients

business.TheDesignAssociatewillhelptheclientSMEtodevelopnewskills,fromchoosingandbriefingdesignerstomanagingthedesignprocess.GenerateprojectsmightbestbedescribedasdemonstratorsofhowaclientSMEmightcommissionandprocuredesigninthefuture.Todate,Generateclientprojectshavetypicallyengagedinbrandrelatedprojects,asthesetypesofdesigninterventionarebettersuitedtotherelativelyshorttimescalesoftheservice.

Innovatecutstimetomarketfornewtechnologystart-ups. Innovatespecificallysupportsearlystagetechnologyventuresinusingdesignthinkingtoattractfunding,reducerisk,refinebusinessstrategyandgettomarketfaster.TechnologyventureclientsstarttheirInnovatejourneyasacohortofsixventuresattendingathree-dayworkshopusingan intensiveand interactivediagnosticprocessto identifybusinesschallenges,defineandshapeappropriatedesignopportunitiesandbuildactionsplans.Innovateconsists

ofathree-dayworkshopledbyaDesignAssociateandsupportedbyateamofthreehighlyexperienced,multi-disciplinarydesigners.Eachbusinessthenreceivesone-to-onementoringfromtheDesignAssociateeverymonthforupto12monthsastheventuresimplementarangeofdesignprojectssupportingtheiractionplans,withtheoverallaimofachievinginvestorreadiness.

InnovateclientsarerecruitedthroughtheTechnologyVentureWorkshop.Atthispointintheroll-outofDesigningDemand,regionshavestruggledtomeettargetsfortheInnovateservice,thoughTechnopolis2006evaluationoftheInnovatepilotsuggeststhatthereturnoninvestmentinearlystagetechnologyventurescanbeveryhigh.TheDesignCouncilteamhasrecentlyrecommended,andthefindingsofthisreviewsupporttheview,thattechnologyventureservicesmightbebetterdeliveredthroughspecialistdeliverypartnerslocatedinTechnologyTransferOffices,incubators,science

parksandinnovationcentres.DIUShascommissionedapilottothiseffect,tobeconductedthough2009.


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The company

Cha s Internat ona began mak ngeanng products n the eary 1990s

and owned severa brands, the mostsuccessfu of whch was Buster. Basedn Suffok, t empoyed around 20 peopand had a turnover of around 1m when

ned the Immerse servce.

The problemCha ss saes were sat sfactory but tsproducts were regu ary de sted bysupermarket buyers under pressure toreduce the number of nes on the sheves.The Immerse team d scovered that theproduct portfo o wasnt we structuredand the on-shef presence wasnt ascoherent as that of the compet on, saysDesgn Assocate Evan Ktse

The response

Cha s and the Immerse team focused on

the bus nesss strongest brand, Buster,and ts strongest sector, p ughoe anddran care. A but four Buster productswere e ther d scontnued or moved n to

other Cha s brands, eavng Buster soconcentrat ng on ceanng bathroom and

tchen p ughoes and unbock ng dra ns.The range was repackaged to mprove on-shef stand-out. Des gn Assocate FonaMyes says: The des gn emphassed thatBuster was a product system none ofthe compet on had that.

Des gn nput a so created a sa espresentat on emphas ng the productscommerc potent to buyers. They

dnt take us serousy before, but nowwere seen as cred e and professona ,says Drector Graham Burche

The impact

The Buster range s now so n vrtuasupermarket cha ns. Fo owng the

aunch of the new range, saes rose by 35per cent n 2005, wth year-on-year saesses of 50 per cent and 25 per cent.

The products are now a so so d overseas.Our desgn proect has pa d for tsemany t mes over, says Burche

Graham Burche , D rector, Cha s Internat ona

Case Study 3


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Owstone

The company

Owstone aunched n 2004 to deveopnanotechno ogy capabe of detect ng

rborne chem ca n extreme y smaconcentrat ons. It focused y on

tary secur ty.

The problem

The busness had created a devce theze of a five pence pece - makng ts

technoogy 100 tmes sma er and 1,000mes cheaper than what a ready ex sted.

But t was strugg ng to exp n thetechnoogy, attract nvestors and choosethe rght app catons and route to market.

The response

Owstone ned the Innovate servcesoon after aunchng. It heped thebus ness rea se the va ue of des gntechn ques such as v sua sat on andmode ng n understand ng customerneeds and exp ng technoogy. It was

so ab e to cut rsk by reducng tme tomarket by p acng ts technooges nsdentermedate products and serv ces thatgenerated revenue ear er and won theconfidence of nvestors.

In para , Ow stone deve oped acorporate dent ty. It was a very mportantpart of estab sh ng cred ty wthnvestors and potent partners. Wehad techno ogy and we had a team butwe had to present ourse ves n a waythat made peop e take the propos onser ous y, says D rector B y Boy e.

The impactBarey two years after ng Innovate,Owstone had deveoped a product,Tour st, wh ch et potent customerstest the technoogy and assess how bestto use t. Its a ow-rsk way for themto evauate the technoogy. Meanwh e,for us, 80 per cent of the deve opments done up front and ts ust a questonof makng modficat ons to su t d fferentapp catons. So we spread rsk too,says Boye.

In 2006 Owstone anded $2.3m of newnvestment n add on to $3m of ear erfundng. An order from a UK defencecontractor fo owed.

y Boy e, D rector, Ow stone

Case Study 4


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Designing Demand Review Programme Delivery |

2.15 Level3GrowthServicesImmerseImmerseisintendedtohelpcompaniesbuildbiggerprofitsthroughtheimplementationofdesign-ledstrategies. Immerseisthemostintensiveserviceaimedatmaturebusinesseswhoarehungryforgrowth,haveanappetitefornewideasandthewillingnesstoinvestinrealisingthemwiththesupportofaDesignAssociate.

2.16 Immerseoffersupto15daysofmentoringdeliveredovera12to18monthperiod.

Theservicealsoprovidesacohortofupto14clientSMEstheopportunityforpeer-to-peerlearningthroughaseriesofthreeworkshopsonthesubjectsofbrand,newproductdevelopmentanduserexperience.

2.17 Todate,deliverytargetsforImmersehavebeenverysmall,withasfewastenImmerseclientsengagedintheYorkshireregion.Immerseisperceivedtobeexpensiveandgiventhenature,depthandlengthoftheinterventionreturnsmaynotbeevidentuntilsometimeafterclientparticipation.Take-upoftheservicehasbeensignificantlyslowerthananticipated.

2.18 ImmerseisarguablybettersuitedtolargerSMEs.TheImmerseclientrecruitmentprocessmay improvethroughtheformationofstrategicrelationshipswithnational industrybodies,whereappropriate,andbuildonthesuccessesofearlierDesignCouncil pilotprogrammes

implemented inpartnershipwiththeBHHMA,theCIFandtheEEF.

2.19 OnlinesupportservicesTheDesigningDemandwebsitecontainsmanagedcontent.AdministrationofthesiteisundertakenbytheDesignCouncilsmarketinggroupwithinformationfeedssourcedfromtheDesigningDemandcentral team,fromtheDesignAssociatesandfromSMEclients.

2.20 Thewebsiteiscurrentlyanunder-utilisedandunder-resourcedservice,particularlygiventheroleitcouldplayinchannellingpotentialclientSMEstoparticipationintheprogramme.ThereviewhasfoundthatRDAs,deliverypartnersandclientSMEsdonotseethewebsiteasanintegralpartoftheDesigningDemandcustomerjourney.Allstakeholdersreported,however,thattheythoughtthewebsitecouldplayamoresignificantpart inthenational roll-outoftheDesigningDemandprogramme.

DesigningDemandservicedeliveryandfundingmodel

2.21 TheroleoftheDesigningDemandcentralteamandkeyprogrammeassetsTheDesigningDemandcentral teamhastenstaff.It iscurrentlyresponsiblefor:1.Newproductdevelopment2. TheprovisionofDesigningDemandservicecontent3.Knowledgemanagement,includingtheeffectivesharingofprogrammelearningamongclientSMEsandbetweentheregions4.Nationalmarketing,eventmanagementandcommunications5.Relationshipandcontractmanagementwiththeregions6. Therecruitment,training,managementandcontinuingprofessionaldevelopmentofDesignAssociates

7.QualityassuranceofDesignAssociatesandservicetools8.Thedevelopmentofprogrammeeffectivenessevaluationtools (regional implementation).

2.22 ItshouldbenotedthatthesizeofthecentralteamhasnotchangedsincethelaunchofDesigningDemand.Thisteamdoesnothavethecapacitytodelivermultipleregionalroll-outssimultaneously.

2.23 TherecruitmentandmanagementofDesignAssociatesThebestpracticeDesignAssociateselectionandrecruitmentprocess,developedoverthelast18months,hasbecomeakeyprogrammeasset.DesigningDemandcurrentlyhas23DesignAssociatesonitsrosterandtheDesigningDemandteamarecurrentlyrecruitingintheLondonareatosupporttheLDAsprogramme,whichlaunchedinJune2008.DesignAssociatesarerecruitedonaregionbyregionbasisinlinewiththe

programmeroll-out.ThecapacityoftheDesigningDemandteamtorecruit,inductandcoachnewDesignAssociatesimpactedontheabilityofthecentralteamtosupportthenationalroll-outoftheprogramme,andanumberofregionshavecommentedonthelownumberofDesignAssociatesemployedtomeetthenational requirement.


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| Executive Summary

Demand Regional DevelopmentAgencies and Delivery Partners

Figure 8

Design Council central function organisation chart

Kate Ward

EllieRuncie

National Programme

i i

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EEDA

SWRDA

SEEDA

BIC, Entrust

LDA

EMDA

YF

ONE

NWDA

Business Link

Business Link

Figure 7

Des gn ng

Sona Dahl

Desgn Assocate

Manager

Sarah Gardner

Programme

Content Offcer

Ashna Khan

Partnersh

Manager

Paul Travers

Knowedge &

Stakehoder Manager

Jessica Hinchliffe

Market ng

Execut ve 80%

Operations Content Partnership Marketing

Team

Co-ordnator

rector

Helen AldredProgramme

anner

Louise Conolly-SmithSenor Partnersh

Manager

Sarah GhirardiBrand & Marketng

Manager 20%

Jonathan BallProgramme

Strategst

AWM

Grant Thornton

West Midlands

Yorkshire

Wessex Enterprise

Wessex Enterprise

Oxford Innovation

DesigningDemandlive

DesigningDemandnotyetlive


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2.24 TheDesignAssociateRecruitmentscheduleisoutlinedinFigure10.ThisscheduleisbasedontheCoxtargets,andtheassumptionthataDesignAssociatetypicallyworksoneortwodaysperweekwithDesigningDemandclientSMEs.

2.25 InadditiontotheDesignAssociateselectionandrecruitmentprocess,theDesigningDemandcentralteamisresponsibleforanumberofotherkeyprogrammeassets.Theseinclude:

DesignAssociateCodeofPractice: criteriaforengagementwiththeprogramme,arecordofsharedagreementbetweenDesignAssociateandDesignCouncil.

DesignAssociateTools: tohelpinformanddirecttheworkofDesignAssociates.1.WorkshopAssociateHandbookguidanceforthedeliveryofLevel1workshops.2.DesignAssociateHandbookacontinuallyupdatedreferenceguideforthedeliveryofLevel2and3services.

NewDesignAssociateInductionprocess: bestpracticeinductiondeliveredtoallnewDesignAssociatesrecruited.

NewDesignAssociateCoachingprocess: sixmonthsofcoachingforallnewDesignAssociates.

DesignAssociateReviews: conductedonaquarterlybasisbyregionaldeliverypartnerssupportedbytheDesigningDemandcentralteam.

Ongoingsupportonuseofmaterials/deliveryprogramme: thedevelopmentand

deploymentofanonlineresourceforDesignAssociateswithknowledgeexchange,amessageboardandregularnewsletter.

OngoingdevelopmentofDesignAssociates:deliveryofpersonalandcontinuousprofessionaldevelopmentopportunitiesthroughtailoredcontent,bestpracticeeventsandworkshops.

TheroleofDesignAssociates

DesignAssociateshavebeenpivotaltotheprogrammesday-to-dayoperation,itssuccessesandlastinglegacy.

Evaluation of the South Yorkshire Design Works or Generate Service, EKOS, 2007

2.26 DesignAssociatesareexperienceddesignmanagersapprovedtodeliveroneormoreoftheDesigningDemandservices.ADesignAssociateistypicallyaqualifieddesignerwhowillhaveworkedasadesignmanagerandledcreativeteamsacrossabroadrangeofsectors.Theywilloftenhaveundertakenformalbusinessmanagementtraining,havepracticalexperienceofdeliveringbusinessadviceandconsultancysupport,andarepartofawidernetworkwiththepotentialtoaddvaluetoanyDesigningDemandintervention.

2.27 OnceDesignAssociateshavesuccessfullynavigatedtherecruitmentprocess,theyareattachedtodifferentDesigningDemandservice levelsaccordingtotheirexperienceandcapabilities.Notall DesignAssociatesareapprovedtodeliverall oftheservices:thequalityoftheDesignAssociatesdrivesthequalityofthewholeDesigningDemandprogramme.

2.28 DuringthedeliveryofoneormoreoftheDesigningDemandservices,DesignAssociateswill:BeadesignadvocateProvidedesignmanagementadvice,bestpracticeandbusinesssupportUseDesignCounciltoolstoensurethatprojectobjectivesandimplicationsareunderstood

DrawonexperiencestohelpdefinetherightdesignprojectSupportthedevelopmentofadesignbriefShortlistanumberofappropriatedesignersfromwhichthecompanymaychooseAimtoleavealegacyofgooddesignmanagementwiththebusiness.

2.29 DesignAssociatesdonot:Adviseacompanytostartadesignproject ifthebusinesshasmorepressingpriorities

UndermineanyexistingadvisorsordesignersTellthecompanywhichdesignertouseDirectlypromoteorselltheirservicestotheclientActuallydesigntheproduct,systemorservice.


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| Executive Summary

Figure 9

Design Associate recruitmentprocess

Figure 10

Design Associate recruitmentschedule

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2.30 ThereisevidencetoshowthatDesignAssociatesdoundertakearangeofactivitiesoutsideoftheircontractedobligationsincludingrespondingtocallsandwrittenmessagesfromclientSMEsthroughouttheperiodofadesignintervention,attendingunscheduledandnon-chargeablemeetings,andprovidingadviceonarangeofbusinessactivitiesthatareoutsideoftheDesigningDemandservicescopeorduration.TheDesignAssociatefeestructureis600perdayforLevel2and3servicesand1,000perdayforLevel1workshoppreparationanddelivery,inclusiveofallexpenses5.

ThisdepthofunfundedengagementwithclientSMEsgeneratesahugeamountofgoodwill,andshouldberecognisedasasignificantifdifficult-to-measureoutcomeoftheDesigningDemandprogramme.

2.31 TheroleoftheRegionalDevelopmentAgenciesTheRDAsareresponsibleformanagingtheBusinessLinkservice,forco-ordinatingbusinesssupportineachregionandfordevelopingRegionalEconomicStrategiesinrespectofbusinesssupport.TheRDAswillensureconsistencywithBSSPinprovidingandprocuringbusinesssupport,andinleadingthedevelopmentofregionalbusinesssupportstrategy.Specificallyintheroll-outofDesigningDemand,RDAsfundtheservice,managecontractingwiththeDesignCouncil,managebudgetallocation,andareresponsibleforsecuringfundingfromexternalsourcessuchastheERDF.RDAsarealsoresponsibleforprocuringandmanagingtheregionalDeliveryPartner.

2.32 TheroleofDeliveryPartnersDeliveryPartnersarecontractedbytheRDAstomanagetheroll-outoftheprogrammeintheregion.ThesepartnersrangefromtheregionalBusinessLinkstoprofessionalservicesfirms.DeliveryPartnersareresponsibleforclientprospecting,clientselectionandreferralontotheDesigningDemandprogramme.TheyarealsoresponsibleforcontractingwithDesignAssociates,andforundertakingprogrammemonitoringactivities.

2.33 TheroleofclientSMEsSMEsacceptedontotheBusinessSupportServiceproductsmustdemonstratethattheyhavethecapacitytoinvestpeople,timeandresourcesandthatseniormanagementwhoareintegraltotheprocesswillbeavailabletoparticipatefullyintheprogrammesactivitiesinorderthatdesignisembeddedintothestrategicdecision

makingprocessoftheclientSME.

TheDesigningDemandcustomerjourney

2.34 TheDesigningDemandcustomerjourneyisfundamentaltothesuccessoftheprogramme.Thequalityofadesigninterventionispositivelycorrelatedtoclientreadiness.GoodqualitychannelmanagementwillensurethatclientsaccessDesigningDemandservicesattherightpointintheirbusinessdevelopment.

ThequalityoftheoutcomedependsonahighqualityDesignAssociate,agoodclientwhoisreadyandwillingtoengagewiththeprogramme,andagooddesigner.Ifthequalityofanyofthesethreefalldownthen

thequalityandvalueoftheprojectcaneasilybejeopardised.Evan Kitsell, Design Associate

2.35 TheSMEcustomerjourneyThemainchanneltoSMEparticipationintheDesigningDemandprogrammeisintendedtobetheBusinessLinkportal.ClientselectionisdeterminedthroughtheIDBprocessInformation,Diagnostic,Brokerage.

2.36 Insomecases,theDesigningDemandcustomerjourneyincludesreferralstoorfromotherregionalbusinesssupportprogrammesorthroughtheprofessionalnetworksoftheDesignAssociate.SMEshavealsolearnedabouttheprogrammethroughthenetworksofdeliverypartnersorfromotherSMEswhohaveparticipatedonthe

programme.Inpractice,theBusinessLinkportalandexistingclientbasehasbeenthepreferred,butnottheonly,channelintotheDesigningDemandprogramme.TheDesignCouncil hasdevelopeddetailedclientselectionguidelinesforeachoftheLevel2andLevel3servicesbutthesearenotmandatorytoqualifyclientsforparticipation.

5ThiscoststructurewasindependentlyreviewedinJuly2008byOctagonHumanResources.Thereport, Design Associates: Industry Position,Beneft and Cost concludedthatthesedayrateswerestillsuitable,giventhedifficultyinbenchmarkingconsultancyrateswherethereisanestablishedmarketfailure.However,itshouldbenotedthatthemajorityofDesignAssociatescommandmuchhigherratesintheirrespectiveprivatepractices.


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0 | Programme Delivery

ItisalsoapparentthatanumberofGenerateandImmerseclientshavebeenrecruitedthroughtheirparticipationinbusinessworkshops.

2.37 SMEclientfeedbackrevealsthatparticipantshadnopreconceptionoftheroletheDesigningDemandinterventionscouldplayinsupportingtheirbusinesses.SMEswhoparticipatedsuccessfullyintheLevel2andLevel3interventionsdo,however,shareanumberofcommoncharacteristics,regardlessofregionalor

geographicindustryconcentrations:AnSMEisoperatingatasteadystatebutgrowthhasplateauedCompetitivepressureisdrivingdownmarginsanderodingmarket-shareWageand/orrawmaterialinflationisdrivingupcostsBusinessstrategylacksnewideasanddirectionThereissparseinvestmentincreativeorotherexternalexpertiseThereislowemployeeengagement.

2.38 ThetechnologyventurecustomerjourneyThecustomerjourneyofsuccessfultechnologyventureclientshasdifferedfromthecustomerjourneyofestablishedSMEs.TechnologyventureclientshavebeenattractedtotheprogrammeontheadviceoftrustedtechnologynetworksuniversityTechnologyTransferOffices,incubationcentresorscienceparks.Innovateclientstendnottohave

accessedDesigningDemandthroughtheregionalBusinessLinknetworks.

ThetrustedadvisornetworkthroughtheuniversityiswhyweendedupontheprogrammeInnovateisperfectforguidingearlystagecompaniesthrougharapidperiodofgrowth.DesigningDemandhasanadverseselectionproblemintheregionsfortechnologyventurestart-upsthosewhoknowaboutdesignwillalreadybesoldandseekingassistance,buttheguyswhoreallyneeditdontthinktheydo.

Billy Boyle, Owlstone

2.39 Todate,onlyaverysmallnumberofearlytechnologyventureclientshaveparticipated

inDesigningDemandInnovate.JustasbusinesschampionsarerequiredtochampiondesignintheregionalSMEbusinesscommunities,theleadershipofInnovationCentresshouldbepivotalincommunicatingthevalueofdesigntoatechnologystart-up.Venturecapitalistsalsohavearoletoplayinpromotingthevalueofdesignthinkingtoastart-uptryingtoachieveinvestorreadiness.

2.40 TheimpactofBSSPontheDesigningDemandcustomerjourneyLookingaheadtotheremainderofthecurrentCSRandtopost-201011,theDesigningDemandcustomerjourneywillbecomealignedwiththoseofotherfundedbusinesssupportprogrammesunderBSSP. ThisstandardisationandalignmentofthecustomerjourneyunderBSSPcanonlybenefitDesigningDemandclientSMEs.However,aspreviouslynoted,anumberofotherpotentialchannelshavebeendeveloped,oftenonaregionalbasis,andthesechannelsshouldbemaintainedand

strengthenedwithDesignCouncilsupportatanationallevelthroughouttheremainderoftheCSRperiod.

Plannedprogrammedelivery:theCoxtargets

2.41 TheDesigningDemanddeliverytargetsto201011wereadoptedfromrecommendationsmadeinthe2005 Cox Review.Thetotaldeliverytargetisdividedbetweenthedifferentservicelevels.

2.42 TheDesignCouncilenvisagedthattheregionalroll-outofDesigningDemandwouldbephasedoverthethree-yearCSR,andthatitwouldtakeuptotwoyearstocontractwithallnineoftheEnglishRDAs.TheCoxReviewalsoanticipatedthatthethreedevolvednations,NorthernIreland,ScotlandandWales,wouldalsobeinvolvedinthefuture

deliveryoftheprogramme,andwerethereforeincludedinthetotaldeliverytarget.ThetargetbreakdownassumedabalancedportfolioofthedifferentlevelsoftheDesigningDemandservice,equallydistributedacrossthenineEnglishregionsandthreedevolvednations.HoweverthiswasnotatthetimeagreedwiththeRDAs.

8/14/2019 Designing

designing demand review

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