what is the value of design
TRANSCRIPT
What is the Value of
Jeneanne Rae CEO, Motiv Strategies
McDonough School of Business February 11, 2015
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Confidential report provided courtesy of Peer Insight. Please do not copy or distribute.
SPECIAL REPORT GET CREATIVE!
MEET THE INNOVATION GURUSEpiphanies for hire: When it comes to out-of-the-box thinking, these are the Magnificent Seven
BUSINESSWEEKSPECIAL REPORT
THE COACH
Jeneanne RaePeer Insight,Alexandria, Va.
JENEANNE RAE IS the doyenne of service innovation. With herHarvard University MBA
and seven years at IDEO, thePalo Alto (Calif.) design-strategypowerhouse, Rae is carving outa niche in showing servicecompanies how to innovate. She co-founded Peer InsightLLC, a service innovation con-sortium, in which members paya fee for Rae to run innovationaudits. Using Peer Insight as aconfidential intermediary (italone knows the origin ofspecific information), members then share in the successesand failures of the group and benchmark their progress.With Rae acting as an innovation coach, the goal is to helpservice companies understand how to shape their con-sumers’ experiences. She uses design principles to rethinkcompany strategies. Peer Insight so far has signed up sevencompanies as charter members – Diebold, Hewlett-Packard,MasterCard International, Siebel Systems, Siemens,
Starwood Hotels & Resorts,and York International. PeerInsight has also done innova-tion research for 37 othercompanies, from FedEx to T-Mobile.
According to Rae, there islittle innovation in services.Service companies have goodbrand and marketing people,she says, but there’s no one incharge of innovation. “They’relike tech companies,” addsRae. “They come up withnew things and just launchthem at consumers. Theydon’t get that it’s all aboutinteracting with customersfirst and then giving themgreat experiences.” Oneexception is Starwood, whichhas a Chief Creative Officer.
Rae also serves as an adviserto Procter & Gamble Co.’s Claudia Kotchka and other inno-vation leaders. And her course, Developing New Productsand Services, at Georgetown University’s McDonough Schoolof Business, is hugely popular. Rae, along with most ofthese gurus, will be a columnist for BusinessWeek’s onlineInnovation & Design portal. There she will discuss the 17disciplines that can be used as an innovation scorecard forservice companies.
August 1, 2005 | BusinessWeek | 79
Design
purpose, planning, or intention that exists or is thought to exist behind an action, fact, or material object
Design is difficult to define
Design is"tricky to measure
Design is difficult to isolate as a function.
ENVIRONMENTAL DESIGN
SOFTWARE DESIGN
FASHION DESIGN
USER EXPERIENCE DESIGN
STRATEGIC DESIGN GRAPHIC
DESIGN
INTERIOR DESIGN
SOUND DESIGN
CUSTOMER EXPERIENCE DESIGN
INFORMATION DESIGN
INDUSTRIAL DESIGN
INTERFACE DESIGN
TYPOGRAPHIC DESIGN
COMMUNICATION DESIGN
PRODUCT DESIGN
Design is multifaceted
SERVICE DESIGN
But for those companies that get it…
Design pays off
Apple Coca-Cola Ford Herman-Miller IBM Intuit Newell Rubbermaid
Nike P&G Starbucks Starwood Steelcase Target Walt Disney Whirlpool
© DMI/Motiv Strategies 2014 dmi.org/value | motivstrategies.com
228%
$0
$10,000
$20,000
$30,000
$40,000
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
Design Value Index
S&P 500
Design Value Index vs. S&P 500
Apple � Coca-Cola � Ford � Herman-Miller � IBM � Intuit � Newell Rubbermaid � Nike � P&G � Starbucks � Starwood � Steelcase � Target � Walt Disney � Whirlpool
10+ years publicly traded
Scale of design
Investment
Org. Structure
Design Leadership
Senior-level commitment
Design Value Index Criteria
What does all this mean?
Design is recognized"as a key strategic enabler
Great design needs power & influence #1
#2 Great design requires great resourcing
Great design requires a strong brand
#3
Design is a function like any other
…But also not.
#4
To make design a key strategic enabler:
Power and influence
Great resourcing
Strong brand
Managed as a unique business function
Questions?
Thank you
Jeneanne Rae Founder, Motiv Strategies [email protected]