Tuesday, 29 January 2013

Got a product? Make a service = increased ROI

How often do designers define investors ROI, utilizing art, finance, and engineering? Every day. But that's only 1/2  the  equation. Service "stickiness" is the other and what keeps design revenue rolling in.

It isn't enough to design a better camera as in the case of the Lytro camera and as detailed in one of our past discussions - Lytro is by Definition a Breakthrough as the full impetus of the Lytro world is the services associated with it. Fast Company once again does a fine job at bringing the basics of this model, ROI through services to light and as detailed here: How to Turn Products into Services and basics are here:
1) Utilizing a selling to renting Model
2) Expand it through education, work in teams with other brands, etc
3) Digitize it and via #1 and #2 to create stickiness. Best example, apps, remnders, etc

Oddly this is defining an entire ego system surrounding the physical design of the object itself and similar to something like the BMW i-drive where a physical design has an exterior set of services that extend into the home.

Where else can you find out about product and service design:
- How Behance sold itself to Adobe for 100m and all based on the design of the service itself
- Oyua, android and full design ROI = millions from kickstarter
- SlideShare extremely simple UI created a purchase price of +100M by LinkedIN

Wednesday, 2 January 2013

IBM + HBS: Good design = Good business?

Recently, Fast Company (here) examined IBM's investment in design & direct bottom line ROI. HBS proposed (here) America's need for a Manufacturing Renaissance. What do both miss? That US design demands measurability but not unless Design Thinking Starts at the Top (here)

Throughout the world, particularly in Italy, France and Germany, design thinking is fully integrated in the final end product: the firm itself and it's leadership team. Imagery, functionality, interactivity, user experience + R&D culminate into a firms full offering to its clients. Some summarize this ias "brand development" however branding can sometimes miss engineering or manufacturing queues and likely so, customer interest isn't part of long term R&D models however slowly in the US things are changing as best articulated by Ron Shaich, founder and CEO of the Panera Bread chain, in a recent post “…the chief executive’s foremost responsibility is to identify, develop, and deploy innovations that lead to real competitive advantage. All of the other challenges that weigh on every CEO--meeting the quarter’s financial targets; enhancing the brand; creating a culture where everyone gives their best--are ultimately irrelevant if you haven’t figured out how to invent your company’s future.” - a clear definition of design disruption.