Evidence from Designing Demand
The headline
Designing Demand has enabled manufacturers to increase profit, turnover and employee levels. And they’ve helped fledging technology businesses raise funding, and change their focus and strategic direction for the better.
.The details
Designing Demand is a fully integrated Design Council programme offering services for a wide range of businesses from high growth start ups to more established businesses looking for new ideas for products and services or wanting to reshape or re-brand their business. The overarching aim of Designing Demand is to improve the economic performance of UK SMEs by supporting businesses to use design as a key driver of business growth and effectiveness
Proven successes from our work with manufacturing businesses
The Designing Demand team worked with a range of UK manufacturers over three years to pioneer a unique way of introducing design as a strategic business tool.
Bottom line impacts are already evident:
- Turnover was up 14% on predicted levels.
- Profit was 9% above predicted levels.
- Employment was 13% above predicted levels.
On average, businesses that took part have invested £113,000 in design related projects. And 88% have rated one or more subsequent design projects as critical to business success.
‘We invested £60,000 in design, and we are projecting sales of £800,000. If we had not introduced design into our strategic processes, we’d have been in a very difficult position.’
‘We’re experiencing sales growth and gross profit increases of around 50% this year. These are directly attributable to the powerful impact of design.’
Proven successes from our work with technology businesses
The Designing Demand team worked with businesses in their infancy. Success wasn’t measured in improved sales or turnover, as many of these businesses haven’t gone to market yet, but in terms of design’s impact on their management and direction.
Overall, this pilot campaign has made a positive difference to the average longevity of technology start-ups, helping with investment prospects and outperforming the general population of high tech start-ups.
Half of businesses increased their ability to raise investment finance. Four out of five changed strategic direction and moved away from being purely technology focused and became more customer focused. The same proportion reported a change in culture, mindset or vision in the business. Half saw better management or reduced commercial risk as a result of the pilot.
Half of businesses significantly changed the balance and composition of their skills. Other changes were directly connected to the businesses’ offers – 35% changed their product or service, and 65% changed the branding and communication around their business and offer.
Three quarters invested heavily in design as a result of taking part in the pilot and were confident of a return on their design investment RODI).