Professional Documents
Culture Documents
CHANGED
ROLE
OF
DESIGN
1 February 2010
Contents
1.
Summary
2.
2.1.
2.2.
2.3.
2.4.
2.5.
2.6.
Open Innovation
Design Thinking
Crowdsourcing
Co-creation
Social Innovation
Service Design
4
5
7
8
9
9
3.
BACKGROUND
10
4.
METHODS
13
4.1.
4.2.
4.3.
4.4.
Workshops
Case studies
Interviews
Analysis and grouping of results
13
13
13
14
5.
CASE STUDIES
17
17
20
6.
23
INTERVIEWS
6.1.
6.2.
6.3.
6.4.
6.5.
6.6.
6.7.
6.8.
21
22
24
25
26
31
32
35
38
41
47
7.
CONCLUSIONS
49
7.1.
7.2.
7.3.
7.4.
7.5.
7.6.
7.7.
Change
Challenges
Proposals: Promotion of the Sector
Proposals: Education and training
Proposals: Public sector
Proposals: Enterprises
Discussion
49
49
50
50
50
51
51
45
2 / 52
1. Summary
The role of design has changed significantly in the wake of the recession. The Muotoilu 2005!
(Design 2005!) programme facilitated the rapid progress of a transition already underway, and
created a basis for research on design. At that time, new, changed roles were developed
alongside the old, rather than supplanting them. For example, the scope of design was
expanded from aesthetics to usability and product branding. The programmes follow-up group
regarded the continuity of the development process underway as critical.
Since the programmes implementation, a new perspective on changes in the role of design has emerged
around the world. This shift in perspective is due to climate change, globalisation and the global
recession. The aim is to apply design-related approaches and methods outside the field of product and
service design, as a form of expertise in multi-professional innovation. This work is focused on areas such
as user-oriented innovation in business activities, organisations or in meeting social challenges. Design
thereby has a plethora of roles, for example in terms of user involvement in development activities or
acting as a visual interpreter between various organisations and stakeholders. Other roles include the
organisation of brainstorming sessions and the creation of solution prototypes as services.
This novel way of utilising design is termed Design Thinking. As during previous transitions, this will
supplement rather than replace old roles. However, a new aspect lies in the fact that developing expertise
in this role has been globally considered an opportunity widely available to non-designers as well as
designers. Design Thinking is taught at educational institutions within various sectors, as an innovative
approach and an interdisciplinary subject.
In this feasibility study, case studies, workshops and interviews were applied in discerning the opinions of
those who work closely with design including users on the current status of design and the related
change needs in Finland.
A number of results were obtained. The following are examples of issues requiring action:
A clear gap remains between enterprises the number of leading experts in design is
small. In addition, many enterprises have yet to go through the previous transition,
particularly in the domestic markets.
Design offices have been slow to internationalise.
Overshadowed by product design, service design has failed to develop.
Although education is in transition, Aalto University alone will not be sufficient.
The pace of change is rapid. Some interviewees doubted whether Finland would be able to
maintain a leading position in this new role.
The following begins with a clarification of the concepts and terms used by the interviewees
and a description of the feasibility studys background.
Two classification models were used to describe the various roles played by design and the
related changes. These are presented at the end of Chapter 4.
Case studies on the consequences of change, documented for the report, have been presented in a
separate chapter.
The summary of the workshops is followed by a summary of the interviewees' opinions on the
current role of design and the changes needed. On occasions, these change needs turned out
to be surprisingly profound.
The thematic areas of the interviews have been discussed in separate chapters. A summary
is provided at the beginning of each chapter, followed by quotations from the interviews.
The report is concluded by the authors' opinion on the transition underway and
proposals for further measures, based on the workshops and interviews.
3 / 52
Open innovation deals with research and development as an open system. Such a system
defines what external knowledge should be utilised in the company's activities, and what
internal knowledge should be outsourced. The opposite idea, closed innovation, limits the use
of internal knowledge to inside the enterprise and eschews the use of external knowledge.
Open innovation is distinct from the Open Source development model, which is based on cooperation and initiated and concluded by volunteers.
4 / 52
Design Thinking is often described as the ability to combine empathy, creativity and rationality
in order to meet user needs more effectively and to enable the success of emerging, new
ideas. As such, Design Thinking is a creative process, based on constructing and synthesising
ideas rather than de-constructing them. The diagram below presents a macro-level perspective
on Design Thinking.
???
Divergence
Needs?
Brainstorming
Synthe
sis
Analysis
Observation
Solution
Convergence
A simplified presentation of Design Thinking
Generally speaking, Design Thinking is more reminiscent of an
approach or cultural way of thinking than a model or process
see below.
(A simplified model, based on the work of Tim Brown, Michael Barry, Sara L. Beckman
et al.)
LAFLEY, A.G. (2008), The Game-Changer: How You Can Drive Revenue and Profit Growth with Innovation
5 / 52
In Design Thinking, since ideas are not evaluated or rejected during the early phases of brainstorming,
fear of failure is eliminated and participation encouraged in the brainstorming and prototyping phases.
Since it leads to creative solutions, lateral, outside-the-box thinking is encouraged during these processes.
Organisational and management theories have viewed Design Thinking as forming part of the
A/D/A (architecture/design/anthropology/) approach. Andrew Jones has stated that the A/D/A
model is typical of innovative, human-oriented enterprises, where it has replaced more
traditional M/E/P (mathematics/economics/psychology) models. Jones has analysed
4
enterprises such as Southwest Airlines, Whole Foods, Starbucks and Google.
Design Thinking applies design methods to problem solving, including outside the field of industrial design
itself. Such methods involve user-oriented design and the creation of new ideas, visual communications,
synthesis and prototyping. But the issue to be resolved typically involves something other than a product
it may be a service, or an organisational or social challenge.
3
4
5
De BONO, E (1992), Serious creativity: using the power of lateral thinking to create new ideas. HarperBusiness
Dr JONES, A (2008), The Innovation Acid Test. Axminster: Triarchy Press
http://www.redhat.com/magazine/019may06/features/burney/ , retrieved on 10 November 2009
6 / 52
2.3. Crowdsourcing
Crowdsourcing refers to outsourcing the tasks of an enterprise to its customers. The customer is
included in the processes, generating added value for the enterprise (and for him or herself). In most
cases, the customer obtains only a modest financial reward from crowdsourcing. There are multiple
Finnish translations for this term, which was originally coined by journalist Jeff Howe in 2006.
Howe presented a new way of understanding how large crowds can be exceptionally
productive and creative when given the opportunity to gather around something they find
interesting. As an example, he cited the iStock-photo, which has radically changed the way
photographs are sold.
Peer recognition, or granting the customer visibility in an environment meaningful to him or her, can
be used as a means of motivation. Other such means include learning anew and having fun or the
opportunity to participate in interesting activities on ones own initiative. Success depends on
identifying people who are able to generate target-oriented results.
Equality, fairness and trust between the participants must be maintained in crowd-sourcing
projects. Such values, which create and preserve communality, can be maintained by following
universally familiar rules. On the same basis as it forges trust among its customers, an
enterprise must build public confidence in itself.
Jeff Howe later described the crowdsourcing model as social behaviour: people gather together, either
free of charge or for very modest compensation, to perform tasks which were previously carried out by
employees. In some instances, a community constitutes a more efficient work force than a company. 7
Crowdsourcing and the Open Source development model are distinguished from one another
by the latters basis in communality and its initiation and performance by volunteers. In
crowdsourcing, the company itself outsources its tasks, thereby retaining the initiative whereas,
in conventional outsourcing, tasks are carried out by actors or individuals not specified in
advance. They may be amateurs or volunteers, or experts working in their free time. On the
other hand, the task may be carried out by a company with which the orderer is not previously
familiar.
HOWE, J. (2008), Crowdsourcing: Why the Power of the Crowd Is Driving the Future of Business
7 / 52
2.4. Co-creation
Co-creation is an active, creative and social process based on co-operation between producers and
users. Value is increasingly generated through co-operation between enterprises and their
customers rather than inside enterprises. In the most extreme form, N=1, meaning that the target
group consists of an individual user.
The initiative is taken by an enterprise aiming at generating value for its customers. Herein lies
the difference with crowdsourcing, which is focussed on outsourcing an enterprises tasks
rather than on the value generated by product users.
PRAHALAD, C.K. and KRISHNAN, M.S. (2008), The New Age of Innovation: Driving Co-created Value Through Global Networks
Promise Corporation & LSE Enterprise, (2009), Co-creation: New pathways to value, An overview
8 / 52
The social innovation concept entered the language less than ten years ago, despite the fact
that such innovations account for a huge share of services and their organisation, and of
legislation and people's everyday activities.
11
Hannu Hmlinen of Stakes gives the following example of social innovations in the field of social and
health care:
"A social innovation in the field of social and health care is a new
idea resulting from the creative activity of an individual, a group, a
community and/or a network. This idea generates added value in
terms of the well-being of an individual or community, or with
respect to health or a service system. 12
Hannu Hmlinen, Director of Innovations, Stakes
13
In service design, all service touch-points must be carefully considered target areas of the
service. They must be designed so as to form a clear, consistent and coherent service
experience. This is important, since customers pay attention to service touch-points in particular
to all that they can feel and experience.
Account should be taken of the fact that nobody's service experience as such can be designed and
defined in advance, since meanings, values and expectations, which vary from person to person, are
included in such experiences. Thus, designing a service experience refers to the creation of a
suitable environment and tools for events and activities, so that the experience can be modified as
14
desired.
10
http://www.sitra.fi/fi/Ohjelmat/hankkeet_ennen_ohjelmatoimintaa/hankkeet/Sosiaaliset_innovaatiot/Sosiaaliset_innovaatiot_+yhteiskun
nan_uudistumiskyky_ja_taloudellinen_menestys.htm, retrieved on 10 November 2009
11 http://www.stakes.fi/FI/ajankohtaista/Tiedotteet/2007/70_2007.htm , retrieved on 10 November 2009
12 http://innovaatio.stakes.fi/FI/esittely/index.htm , retrieved on 10 November 2009
13 KOIVISTO, M, (2007), Mit on palvelumuotoilu? Muotoilun hydyntminen palvelujen suunnittelussa, TAIK (What is service design?
Utilising design in service design, UIAH)
14
3. BACKGROUND
Design 2005! was a design policy programme, launched by the Government to promote business and its
competitiveness through design. In 2004, the programmes follow-up group presented the following
conclusions on the programmes implementation: on the whole, the implementation of the Design 2005!
programme began on several fronts. The industrial design technology programme funded by Tekes and
the research programme on industrial design funded by the Academy of Finland formed separate, unique
entities. Their research subjects were relevant and they created a basis for the renewal of the design
industry. The foresight project on education set down guidelines for the development of education.
Promoting the internationalisation of design offices was considered a major future challenge. Expediting
the design systems development will require investments in communications.
The follow-up group was of the view that the design system had developed on a broad front. Key actors
from outside the design community had been enlisted in the development of the design system. This led
to more dynamic development while boosting confidence in design. Significant volume growth has been
attained in a short period in the area of design research. A comparison with the international discussion on
research demonstrated that the research problems posed in Finland were relevant and topical. The followup group considered the continuation of the development process already launched as crucial.
15
However, rapid changes have occurred in the concept of design and its operating environment since the
implementation of the Design 2005! programme and the above-mentioned industrial design technology
programme funded by Tekes in 2002-2005: MUOTO 2005.
The concept of strategic design was earlier associated with putting an enterprise's strategy into
practice through product-related design solutions and brand management. Now, a new
concept, design thinking, has emerged alongside strategic design of this type. In design
thinking, a design approach is used to solve challenges that are unrelated to products. Other
changes to follow the implementation of the technology programme include the emergence of
service design and the challenges posed by open innovation. Research by Virginia Acha, for
example, relates open innovation to the application of design:
Our analysis indicates that design includes the translation of
understanding and expectations between organisations engaged in
open innovation practices. The findings demonstrate that firms
which actively undertake design activities in innovation and which
use design to control the innovation process, are more likely also to
pursue open innovation strategies. 16
Virginia Acha, 2008
15
SAARELA, LAPPI, TUUKKANEN, (2004), Muotoilu 2005! -ohjelman seurantaryhmn raportti The report of the
follow-up group on the Design 2005! programme, in Finnish), Reports of the Ministry of Education 2004:11
16
ACHA, V, (2008), Open by Design: The Role of Design in Open Innovation. Department for Innovation, Universities & Skills, UK
10 / 52
Education and training in the field of design has also changed in the wake of the programmes
implementation. Examples of this are provided by new Master's degrees, such as the Canadian
17
Master of Design in Strategic Foresight and Innovation , or in the combination of courses in
design with other subjects, as in Singapore where courses have been based on the Design
18
19
Thinking agenda or in Stanfords d.school which was established as early as 2003. Such
courses are not aimed at providing an education in the traditional role of design i.e. creating
new forms:
We want the d.school to be a place for Stanford students and faculty
in engineering, medicine, business, the humanities, and education
to learn design thinking and work together to solve big problems in
a human centred way. 20
This transition can also be seen in Finland. With the establishment of Aalto University, the
concept of design will change more rapidly here too. Designs new roles are influenced by how
well it is integrated into education in general and by how its various roles are emphasised
within Aalto University: amongst the associated innovation workshops, the Design Factory
focuses on product development, the Media Factory on the media sector and the Service
Factory on services of high added value.
At domestic level, Aalto University alone will not suffice the new roles of design must be
promoted more widely: as early as 2006, a visionary group working on a research project
funded by the Research Institute of the Finnish Economy (ETLA) proposed that design be more
efficiently integrated into educational programmes in the fields of business management and
technology. In addition, the quality of education and its international aspects should also be
21
improved.
The Finnish design sector remains small and may contract further due to the recession. This
sector comprises small actors, meeting demand for strategic design from a small number of
enterprises.
In 2007, enterprises in the Finnish design sector recorded combined annual net sales of EUR
22
122 million, industrial design accounting for EUR 47.3 million of this. However, a challenge
lies in the fact that statistics on this are insufficient and lack uniformity between different
countries. According to the Finnish TOL 2008 standard industrial classification, enterprises in
the industrial arts belong to the same category as industrial design, despite the fact that the
activities of enterprises providing design services are entirely different to the industrial arts.
In accounts of the changing role of design, foresight and the planning of new business activities based
thereon are often mentioned. Other oft-mentioned subjects in this connection include the user-oriented
design of private or public sector activities, as well as open innovation and social innovation. The change
that began following the implementation of the technology programme is still underway. Reform is
required of our innovation policy and educational systems.
11 / 52
Finland's national innovation strategy for 2008 also highlights demand- and user-orientation in
all innovation activities. User-orientation is a central perspective in design. Correspondingly, the
possibilities of applying this perspective and design tools outside the field of product
development have been highlighted in the debate on designs changing role.
In recent years, design has also developed rapidly as an innovation.
Most notably, this has resulted in concepts such as strategic design, design management and design thinking. Innovation policy
and support, as well as educational systems, have yet to catch up
with these developments.23
The above quotation is an excerpt from the document "Design as a driver of user-centred
innovation", published by the European Commission in April 2009. The Commission
organised a public hearing (535 respondents), the results of which clearly associate the role of
design with innovation: 91 per cent of the responding organisations considered design highly
important to the EU economys future competitiveness; 96 per cent thought that initiatives in
support of design should form an integral part of innovation policy in general; and 91 per
cent believed that such initiatives should be taken at EU level, in addition to domestic and
24
regional level. Some 74 % thought that design should be part of the EU's innovation policy.
A report on the OECD's innovation strategy will be published in the spring of 2010. This report is
expected to discuss the changing nature of innovation, and designs contribution to this. A new role
for design and new design expertise are required for innovation activities extending beyond
technology and products.
The project constitutes a basic survey on the changed role of design, analysing the current status of
this new role in Finland, the associated actors and their current roles and tasks. Data was collected
through interviews and from literary sources.
The aim was to uncover a set of descriptions of the new concept of design, and to chart this
new field and its functional structures from the viewpoint of the sea-change occurring in the
markets. Opinions on the roles of various actors and their tasks within the field of design were
analysed with the help of interviews.
The report outlines the meaning of the new concept of design from the viewpoint of industrial policy.
23
COMMISSION OF THE EUROPEAN COMMUNITIES (2009), Commission staff working document: Design as a
driver of user-centred innovation.
24
Results of the public consultation on design as a driver of user-centred innovation (October 2009) -
http://ec.europa.eu/enterprise/policies/innovation/policy/designcreativity/design_consultation_en.htm
25
OECD (2009), 2009 Interim Report on the OECD Innovation Strategy: AN AGENDA FOR POLICY ACTION ON INNOVATION
12 / 52
4. METHODS
4.1. Workshops
The feasibility project was kicked off by a workshop "Muotoilun muuttuva rooli (the changing role of
design)" on 7 September 2009. The seminar and workshop were organised through co-operation
between the Ministry of Employment and the Economy, the Ministry of Education, Design Forum
Finland and Creative Industries Finland. Group work on changes in the role of design, from the
viewpoint of enterprises, education and training, formed the focus of the workshop. Over 50 experts
in the field of design participated, representing educational institutions, organisations and
enterprises.
The following workshop discussions were chosen as themes for the interviews:
What is the current role of design, will this role change in the forthcoming years?
Will social innovations and open innovation processes affect the value chain of design?
Divided into groups, the participants created five scenarios for the role of design in 2015:
Education and training in the field of design have changed.
Design as a function has clearly extended beyond product design.
The designer is a DESIGN THINKER, an expert in perspectives and methods, not a
creator of new forms.
Service design has become a distinctive area in its own right.
Design is part of everyday life. It is automatically a "must" in the activities of enterprises
in Lapland.
4.3. Interviews
In addition to those directly involved in design activities, persons responsible for, or involved in, the
development of new businesses, product development, service business, marketing and general
management were request to give an interview.
Individual, discussion-based interviews were carried out, including a small number of telephone
interviews. Of those requested to give an interview, 35 were interviewed in September, October and
November 2009. Some 20 of these interviewees gave their consent to the publication of their names
in connection with the interviews. These names are listed in Chapter 8. The interviewees
represented organisations (4 interviewees), educational institutions (4 interviewees), productoriented companies (12 interviewees), the public sector (4 interviewees) and service industry
companies (11 interviewees). Enterprises of different sizes and representing various fields were
chosen.
13 / 52
http://nextd.org
14 / 52
This model, D1.0, is based on handicrafts or arts, in which creative individuals or groups of
designers design the aesthetics of a product. They work through a process that is closed to others.
At D2.0 level, design involves multi-professional groups and product or service development. It seeks to
design an enterprise's offering: the related challenges lie in user experiences, products and services.
User-oriented design and an expert designer role often form part of such activities.
According to Humantific, factors such as globalisation and technologys integration into everyday life have
facilitated the emergence of the D3.0 design role. Here, the target is not a product or service but any
strategic problem solving situation often related to challenges at industry, organisation or system level.
The problem is solved by multi-professional and multi-organisational (open) groups (participatory cocreation). Design has the role of bringing the user perspective to bear on this kind of problem solving,
alongside tools such as synthesis, visualisation and various brainstorming methods. Open innovation
models are included at level D3.0.
At level D4.0, open innovation models are extended further through the introduction of social
aspects. According to Humantific, this is the level at which e.g. problems related to the state of
society are solved. In addition to the (various) organisations that have assumed the D3.0 role, the
various stakeholders or individuals involved participate in this kind of problem solving.
Being integrated with product development and mechanical design, the role of design in the
1960s represented the first step towards D2.0, multi-professional product development. This
was further refined by the ergonomics-oriented role involving an understanding of the user that
emerged in the 1970s, and the role focusing on the co-ordination of portfolio management that
emerged in the 1980s. In the model created by the NextDesign Leadership Institute, product
branding in the 1990s (design aimed at creating customer experiences) remains at level D2.0.
According to Valtonen's doctoral thesis, the design roles recognised in Finland in different eras were
all product-oriented. Even strategic design originally concentrated on the management of product
portfolios and the branding of products based on user experiences. In the figure presented on the
following page, the newest, ongoing transition is related to intangible issues: innovation and
competitiveness amongst global competition. "Design as an innovation driver" has been proposed as
the new role of design. This transformation remains ongoing and forms part of the description of
levels D3.0 and D4.0, as defined by the NextDesign Leadership Institute.
15 / 52
16 / 52
5. CASE STUDIES
Case studies were used to provide a basis for the interviews these, in turn, provided examples of
the new roles of design and respondents' opinions of the significance and impacts of these roles in
Finland. One of the world's best-known publishers of case studies is the Design Council (UK). This
organisation defines its national role as helping leaders amidst change and turning them into the
world's best users of design, with the support of the most talented design professionals.
28
29
5.1.1. Background
Kaiser Permanente (KP) is a US-based HMO (Health maintenance organization). It was
founded in 1945 and employs almost 200,000 people
30
The main objectives of the company's 2003 long-term growth strategy include increasing its current patient base
through broader-based supply and major cost savings. KP feared that, in order to achieve its objectives, it would
have to replace the majority of its hospitals with new, expensive buildings. Co-operation with IDEO, a design
company concentrating on innovations and innovation processes, generated an idea that changed these plans.
Information gained from an individual project convinced KP that investments were required in the development
of patient experiences and services rather than new buildings.
KP has tried to move away from individual innovation and development projects to creating a more
holistic innovation structure. KP's internal innovations unit has created a system that improves the
quality of development projects and decreases risks. This system is based on methods originating in
the design sector. KP's innovations unit brings expertise on systems and user assets to the process.
By constructing prototypes of development targets, the innovations team is able to monitor activities
and collect experiences of the project, which is implemented at conceptual level only.
KP's innovation process is based on methods such as brainstorming, prototyping, field testing,
monitoring, creating a story and synthesis. KP requires that those participating in the process
are open-minded, capable of taking risks and uninhibited.
31
A model hospital has been constructed for KP's innovations unit , where the functions of various
units and the requirements set can be simulated. Premises and models are utilised in Kaiser
Permanente's new hospital projects in such a way that all premises to be built are based on
prototypes originally developed and tested in the innovation lab and then reproduced elsewhere.
The unit also engages in product development in co-operation with equipment manufacturers.
Because the premises can be test operated before a hospital is built, errors can be avoided and
multi-generational innovations can be realised in a single step.
30
31 Sidney
17 / 52
Simultaneously, routines must be handled. Previous studies had revealed that nurses arrived
35-40 minutes before they became responsible for patients, in order to receive the required
briefing. Both staff and patients were concerned that patients received little care or attention at
this point. In addition, each nurse had his or her own way of prioritising and communicating
information. The shift change also affected the time preceding it, since all tasks had to be
finished in a hurry.
5.1.3. Measures
IDEO and Kaiser Permanente conducted observations in four hospitals, watching shift changes
around the clock in an attempt to understand how information was transmitted. Based on
preliminary data collection and an analysis of current practices, groups consisting of patients
and experts proposed a number of solutions within a short time. Some of the total of around
400 solutions were radical. Most ideas focused on information: that it should be available faster
and that its processing should be less dependent on location.
Based on these ideas, the innovation team developed prototypes of new practices. These prototypes were
then tested for three weeks in a single test unit during every shift change. Continuous changes were made
to the prototypes based on feedback from the nurses, who could directly shape the outcome.
18 / 52
an overall picture of all patients in the ward. During the shift, notes were made in a portable IT
system that allowed the collection of data for the next shift change.
The new model was tested for two weeks in two hospitals, before being put into productive use after three
weeks. The time needed to prepare for shift changes fell from 17 to 9 minutes, the duration of shift
changes increased from 8 to 10 minutes while the time required for the new shift's first contact with
patients decreased dramatically, from 43 to 12 minutes. Of the four hospitals that participated in the
brainstorming phase, three introduced the model with enthusiasm and one returned to the previous model.
Unwilling to introduce changes, this hospital decided to retain traditional practices, which it considered to
be safe. The new model was spontaneously distributed to nine other hospitals. In addition, a number of
hospitals contacted KP's innovations unit in order to find out how to introduce the model. A total of 30
hospitals made preparations to launch the model.
5.1.4. Results
KP decided to introduce the system in all of its hospitals. The innovations team prepared a
model for the systems launch, based on which the system could be integrated in various
locations, with the help of IHI's Rapid Scale Up system.
KP uses both bottom-up and the top-down development strategies. While the starting points and methods
of these two strategies differ, both are needed. In every case, the top-down model always requires data
and indicators that enable an ex ante and ex post analysis of the situation. Analysis is also recommended
for the bottom-up model, but in some cases the nature of the problem is so evident that a refined,
systematised data analysis is unnecessary. Based on the bottom-up model, responsibility lies with local
actors (the units themselves), while under the top-down model it lies with the management group. With
respect to the development of shift reporting, the launch was initiated based on a bottom-up model, with a
top-down model being implemented later. The latter proved a much more efficient method of distributing
the model than a spontaneous launch. In each case, the management team must commit itself to striving
for change.
Among other awards, the system has won three prizes under the Institute of Health Care
Improvement's Best Practice and Spark Awards.
19 / 52
32
Due to a back injury, surgeon Daniel Palestrant found himself in the role of a patient for several
months. It was then that he realised that new techniques developed by pioneering doctors are
introduced slowly: it often takes years for them to be widely disseminated. He therefore had the
idea of establishing an internet community in which physicians could discuss ideas. Companies
could be charged for taking part in these discussions between pioneering doctors. But the idea
alone failed to attract investors.
Instead of hiring a conventional business consultant, Palestrant contacted Humantific, a New York-based
company. Humantific employs design methods in change consulting.
A series of negotiations were conducted in New York, during which Palestrant eloquently
described his ideas he likens his outpouring to "intellectual bulimia" as Humantifics
representatives, Elizabeth Pastor and Garry VanPatter, busied themselves drawing sketches
and taking notes. The two gathered Palestrant's rambling ideas and turned them into huge
posters with icons showing how the different parts of Palestrant's company would fit together.
Bearing these diagrams, Palestrant contacted venture capital investors and obtained $40
million in start-up capital.
The community created by Palestrant is known as Sermo (www.sermo.com). It currently has over 110,000
members and is the biggest internet community of physicians in the US. Paying customers include
pharmaceutical and health care companies, to which the community provides chargeable services such as
panels and surveys of physicians.
32 http://www.time.com/time/magazine/article/0,9171,1736729,00.html
20 / 52
The Yritysmynteinen kumppani (Enterprise-friendly partner) project began with three service
entities: creating a smoother permit procedure for organisers of private events, integrating
various city offices into the process for providing advice on establishing a business and
facilitating the purchase of building sites and premises for SMEs.
At the moment, each permit application must be filed at different times with each authority concerned, due
to inadequate communication between the authorities. Processing an application for a permit to organise
an event can take from 5 to 30 days, depending on the case. Since developing the related processes
using traditional tools proved difficult, the decision was taken to apply service design methods to the
development activities. The objective was to achieve more flexible and user-oriented solutions.
An electronic service system is currently being developed in which event organisers can find
the relevant advice and maps of venues. They can also file all of the required permit
applications via the electronic service system.
Office/
process
Office/
process
Office/
process
Office/
process
Office/
applica
tion
Office/
process
Office/
process
Office/
process
process
app lic atio n
One
applic
ation
One
app
licat
ion
One
Custom
er
Custom
er with
applicat
ion
One
with his
applicat
ion
Creating a meaningful
entity with the help of
service design.
Smoothness?
Rapidity?
Consistency?
33
34 35
Kraft Foods is the world's second largest food and beverage company. Safeway, in turn, is the
third largest supermarket chain in the US. IDEO is a design company focusing on innovations
and currently employing 550 employees.
Kraft turned to IDEO in its search for supply chain innovations. The aim was to improve Kraft's relationship
with chain stores. Communication was not smooth and there were delays in getting products to market.
IDEO brought together 80 employees from both Kraft and chain stores, to create new solutions in
workshops. Between workshops, innovations were sought by means of structured brainstorming, and field
observation in stores and distribution centres. Employees were interviewed and new ideas were turned
into prototypes. The entire process took 18 months, during which findings were shared and new solutions
were created interactively.
34
35
6. INTERVIEWS
In addition to design, the discussions with interviewees dealt with the roles of other, design-related
professions. There was much discussion of overlapping roles, particularly with respect to enterprises.
23 / 52
Most defined the change as crossing the boundary between concrete and intangible design:
The most common way of defining the current role of design was based on the D2.0 role. The
majority of those who considered the level of change significant estimated that level D3.0 could
be achieved in the future.
The interviewers' interpretation of the current situation and changes in the role of
Finnish design, based on the interviews
In the summary of the interviews presented in the following chapters, the names of interviewees
given belong to those who consented to the publication of their names prior to publication.
Some interviewees withheld their consent to this, or failed to so prior to the publication
deadline.
24 / 52
"I wouldn't talk about service design but about designing a holistic
user experience."
Anne Stenros, Vice President, Design,
KONE
"The challenge lies in the fact that the design approach has not been
sold effectively to representatives of other areas of expertise. This is
partly because there is no common language e.g. with financial
management and, thus, designs possible benefits to business
remain unnoticed."
Thomas Pimenoff, Marketing Director, Nordea Bank Finland
25 / 52
"The roles of design are many. For some, it means very little while
there are some who may have realised that aesthetics is relevant to
their products. At the upper end of the scale, there is some
understanding of Design Management. There is a huge spectrum.
The bottom end is most representative. Correspondingly, practices
and the understanding of their significance vary hugely among
designers and architects. I myself would like to believe that holistic
thinking is very modish, even though it hasnt spread that far.
Design can be viewed as far more intricate than mere product
design: it has characteristics relating to services or, more
generally, to the many processes taking place in an enterprise, its
sales department or at its customer interfaces at multiple
interfaces. I would like to think that we already live in this kind of
world, even if it isnt realised in many enterprises."
Toni Kauppila, Architect, SAFA (DipArch, The Bartlett, UK)
Architect bureau ND/ UIAH/ Theatre Academy Helsinki/ TSE
26 / 52
27 / 52
"In the coming years, design will move to the strategic level and
the faster this happens the more business managers there will be
who understand its importance."
"Design Thinking will never be introduced in enterprises bottom-up.
First, it must be adopted by top management and then diffused
downwards. It is only then that we can talk about a real Design
Thinking approach in an enterprise where it is used as a strategic
tool by the management."
Anne Stenros, Vice President, Design,
KONE
28 / 52
"One must avoid thinking that the new role of design will simply
replace the old. Instead, a new dimension in design is being created,
that will emerge in addition to the old one."
Marco Steinberg, Director, Strategic Design,
SITRA
29 / 52
30 / 52
6.1. Internationality
Many interviewees considered Finlands small domestic markets and lack of international contacts as
problematic. Both the educational sector and enterprises were considered to need people, including
leaders and ideas from abroad. At the same time, it was believed that active measures were needed to
render education and studying more international.
"The current situation in Finland is that you end up too quickly with
something you already know, based on which the target is
incrementally improved in a very narrow sector. This represents a
total block on the creation of new innovations."
Marco Steinberg, Director, Strategic Design, SITRA
31 / 52
32 / 52
33 / 52
"There is huge demand for service design: more than 80 per cent of
GNP is generated by services."
Jussi
Sorsimo
Programme Director, Culminatum Innovation
Oy Ltd
34 / 52
Beyond the quotations given here, interviewees expressed the wish for active international
recruitment in education hoping for fresh reformers from outside Finland. They also
suggested a systematic, even obligatory stay abroad for students, in order to enable the more
efficient transmission of ideas.
35 / 52
"In the future, the focus will surely see a clear shift towards
experience and service related matters. Commercially speaking,
this represents a much greater opportunity than traditional
design."
"Education does not meet the demands of changing markets, or it
does not meet them fast enough; for instance, institutions should
have been teaching service design as a major at MA level for five
years now."
"Finland has almost completely failed to develop its expertise in
design management. All structures are based on managing the
current situation and rising to the top in a Finnish design reality
primarily set up to place individual designers in the limelight."
"Design management plays an important role in the promotion of
Finland's new competitiveness, through new age holistic expertise,
innovation leadership and experience leadership. This expertise
should be accumulated rapidly."
Juha Vaurio, Design Manager,
Vaisala
36 / 52
37 / 52
6.1. Innovations
During the interviews, the discussion on designs new roles often turned to the changing role of
innovations and global competition. Many interviewees pointed to the insufficiency of product or
technology innovations and their hopes concerning the role of design in open and social
innovations. Nearly all of the interviewees believed that design has a role to play in useroriented innovations.
"Innovations are not created by processes or organisations, but by
individuals. These individuals must engage in leading major
projects."
Marco Steinberg, Director, Strategic Design, SITRA
38 / 52
39 / 52
40 / 52
The interviewees also expressed the wish that, in the future, the public sector should become
an initiator of social innovation and an active user of service design: user-oriented service
development was considered an opportunity to set such an example. Improving services while
lowering costs will provide opportunities for value innovation.
The distribution of information on new opportunities and the promotion of user-oriented design
innovation were considered to be the responsibility of the public sector. Concrete ways of
distributing information on new opportunities were called for e.g. through case studies and the
creation of indicators.
"Public sector activities must be linked to the innovations ecosystem,
lend support to innovation policy and should absolutely be tied into
the EU's innovation strategy."
"The public sector must facilitate various open communities for
encounters and their creation. At best, these should act as
innovation labs where designers, end users, research communities,
enterprises and students can meet. The operating model should be
like that of Twitter, where you can roam around freely. It should
not involve being fed information or having to search for material
somewhere. just plug in.
"The Design Start service is just a kind of effortless dry run, it does
not genuinely benefit enterprise or design."
"The public sector must act proactively regarding innovation,
particularly by deconstructing inflexible systems and facilitating
flexible, easy and self-regulating systems."
Anne Stenros, Vice President, Design,
KONE
41 / 52
"Projects supported by the public sector should be as nonbureaucratic as possible, since in the beginning it is not always
clear what should be done. It would also be good if the result was
not fixed before the project even began, but was genuinely being
sought."
"Projects need not necessarily be implemented in Finland, it would
be enough for the enterprise to be from Finland. In principle, the
experts could be located in Palo Alto, for instance. One of the drivers
or even conditions could be international networking right from the
start. Internationalism should be a prerequisite for funding,
nothing should be designed for the Finnish market only."
"Finnish design involves too much politics, which is paralysingly
enough based on protecting organisational and vested interests.
Finnish design policy has been like a kind of employment and social
policy in disguise, when it should primarily be an innovation and
trade policy."
Juha Vaurio, Design Manager,
Vaisala
42 / 52
43 / 52
"Can the public sector play any role in the promotion of innovations
other than keeping the issue visible? Enterprises are willing to
invest in good projects that develop their activities and the services
they provide. On the other hand, the public sector could develop its
own services and customer interfaces with the help of design, and
thus set an example."
Hannele Humaloja-Virtanen
Director, Innovative Strategies, SOK Corporation
44 / 52
Many also discussed the future challenges lying in the concept of work stable, conventional
employment was considered an outgoing phenomenon. It was estimated that varied,
unconventional forms of employment would become the norm in all sectors in the future. In
creative industries including the design sector such employment relationships are already
standard. A few quotations from the related discussions are presented below.
In order to benefit an enterprise, the Design Thinking approach
requires a higher level of interpretation and understanding than
now. Huge changes are required in mindsets. Growth expectations
must be very modest and one must understand the story and the
meaning of its contents. Quarterly thinking and expectations of
rapid growth are not compatible with this approach, instead longterm efforts are required. Repayment may be different. In some
cases, it may be exponential, but this will probably be quite rare. As
a non-economist, I think that interesting phenomena do not
originate in efforts to maximise economic profits. Profit is either
generated or it isnt but nothing interesting can come from a
situation where the starting point is profit maximisation."
Toni Kauppila, Architect, SAFA (DipArch, The Bartlett, UK)
Architect bureau ND/ UIAH/ Theatre Academy Helsinki/ TSE
45 / 52
""Design 2.0 and Design 3.0 are already included when new
business activities are under development. I am sure that, in the
future, new generations will have different expectations and values.
Entrepreneurship is raising its profile, not as a form of employment
but as a contractual relationship. The younger generations are
more willing to express themselves. A labour force aware of its own
worth could overcome the competition by working as entrepreneurs
in projects guaranteeing the best conditions. These conditions will
not necessarily be monetary, but based on values."
Mika Pitkl
Director, Distribution Channels, Varma Mutual Pension
Insurance Company
46 / 52
47 47 /
52
48 / 52
7. CONCLUSIONS
7.1. Change
Design is changing. Its role has changed rapidly over the last few years and this process is not yet
over. Education and innovation systems have not kept up-to-date with respect to this more profound
transformation. While there are opportunities related to this, in the opinion of many interviewees the
time window for exploiting such potential is rather narrow.
The new roles of design comprise both horizontal (for instance, introducing service design) and
vertical dimensions (the new role of strategic design as an expertise or methodological
approach, extending beyond products and services).
As before, the new roles will not replace the old, but all roles will co-exist and the application of
roles will be layered. The most marked differences lie between concrete roles aimed at form
creation and intangible developmental roles.
On an international scale, the role of strategic design has been extended to encompass the
creation of an enterprise's strategy: the role it plays in business development is not limited to a
brand, user-oriented product, interface or even service innovation, as was the case only a few
years ago.
In Finland, strategic development is often seen as putting an enterprise's (already existing) strategy into
practice and as co-ordinating its product development. Over the last few years, there have been
occasions where the role of design has not concentrated on putting a strategy into practice, but on its
innovative, user- or customer-oriented development. Part of the new role of design is directed away from
product or service design, towards design planning or enabling innovation. In the area of open innovation,
design is expected to act as a facilitator of communications and a creator of syntheses.
7.2. Challenges
The number of top experts remains very small. Most enterprises remain unable to benefit from
even the D2.0 design role that of multi-professional product and service development.
At the same time, the entire innovation concept is in turmoil. In the future, value will not be
generated by enterprises or experts, but by users and communities in connection with use. This
entails a need for new design expertise.
Connotations associated with the terminology impede communication. As a concept, design is
associated with the creation of form: a number of interviewees did not consider service design,
customer insight, innovation or business development as design at all. However, case studies
provided new perspectives.
Education and the design business lack genuine internationality. In grouping the interviewees, the
clearest difference between groups was not dependent on the interviewee's background
organisation. Interviewees most open to change had the common characteristic of having to engage
in more work-related travel outside Finland than other interviewees. A few interviewees proposed
half-seriously that educational institutions and enterprises should impose an obligatory stay abroad
so that more international perspectives can be imported to Finland. A new role for design cannot be
created from a local or even a national viewpoint or as a development project implemented in a
single sector. It must be closely linked to the development of the entire innovation system. In fact,
design education and enterprises providing and applying design have a global location.
This change is rapid. Finland is on the point of trailing behind international development. Strategic design
has not been developed and put into practice outside the larger enterprises. The use of design thinking for
purposes other than products and services, as an innovatory approach, is rare in Finland.
There is insufficient education in service design and it lacks sufficiently large markets: the need
is great, but both supply and demand are small. Aalto University alone cannot rectify the
situation.
Design cannot be developed separately from other competences. In addition to belonging to the creative
industries, it must be integrated more generally into Finlands innovation strategy. Technology-led
innovation will not be enough in the 2010s we need
49 / 52
the perspectives of individual users on innovation. These perspectives are needed on a more
general basis than merely when products and services are being designed.
Uniform statistics are not sufficiently available for the promotion and evaluation of design.
Neither are publicised Finnish success stories.
Statistics on the design sector itself and on its impacts on business activities should be
harmonised in different countries, so that the situation and developments in these countries can
be compared. Finland could assume an active role in this.
The authoritys task would include collecting and publishing success stories or case studies.
With their help, various ways of creating benefits could be indicated.
The other tasks of this authority could be selected from those of the Design Council and applied
to the Finnish environment:http://www.designcouncil.org.uk/Design-Council/1/What-we-do/.
7.4. Proposals: Education and training
Education and training on service design must be adequately organised in educational
institutions - also outside Aalto University.
To enhance user orientation, user insight must be integrated more closely with education on
technology, economics and design.
Education and training related to the new roles played by design must also be organised outside Aalto
University. User-oriented innovation and strategic design application could be taught to students from
various sectors at universities and polytechnics throughout Finland. Teaching need not be limited to
students of economics and technology user orientation should be a self-evident approach, at least in all
teaching related to services.
In the future, all competition will be global in nature, which is why the regional approach must not be
decisive in education and design training. Meeting each regions current needs through education will not
develop the region. A good example of the opposite approach can be found in the design training
organised in Ume, which attracts top international talent, both students and researchers, to the town. In
Ume, satisfying regional demand is not the sole objective.
International aspects should be highlighted as one of the most important objectives in all education. Can
research, education and training be directed through funding so that international activities do not solely mean
researcher or student exchange, but increasingly refer to participation in joint international projects?
50 / 52
Service providers need information on service design as a user-oriented option for service
definition. Some enterprises of this type view service design as mainly comprising graphic
design and branding.
The innovation activities of product-oriented enterprises can be enriched through the
opportunities provided by service design, but only if the initiative comes from managerial level.
Thus, with respect to enterprises, the above-described role of a champion networking directly
with enterprise management is emphasised. This explains why such a champion must not be
profiled as a promoter of traditional design, since the right message would not then get through
to the enterprise's management.
7.7. Discussion
Is new design required as just another silo? Or, particularly in its new roles, is it a competence that
should be integrated into all activities in which something new is being developed or customer
insight being created?
In the light of the new design roles, will separate design units be needed in enterprises in the future?
As a separate function, designs role is confined to applications at the most operational level. But
with regards to the new role of design, what if the related methods and approach (Design Thinking)
were applied to research and education at a more general level, with the aim of creating new
products and services and user-oriented innovations? What if they were taught universally?
51 / 52
8. Interviewees
Toni Kauppila, Architect, SAFA (DipArch, The Bartlett, UK), Architect bureau ND/ UIAH/ Theatre
Academy Helsinki/ TSE
52 / 52