The Value of Design Factfinder, which goes online this week, uses figures from the Design Council’s annual Design in Business survey to provide designers with compelling proof of the positive impact design can have on business performance.
The research, carried out among 1,500 companies of all sizes and from all sectors, shows that companies that invest in design out-perform in practically every measure of business performance including market share, growth, productivity, share price and competitiveness. Yet, remarkably, 45 per cent of all UK companies are failing to invest in design and only 16 per cent believe that design is critical to success.
The launch of the Factfinder means that designers can now access crucial figures to help quantify and explain the impact that design can have on a business’s bottom line and, for the first time, pinpoint material that will help make a specific case and generate bespoke reports.
Key findings available from the latest research include:
- Every £100 a design-alert business spends on design increases turnover by £225.
- The majority (two thirds) of companies who ignore design have to compete mainly on price, compared to just one third of those in which design is integral.
- 83 per cent of design-led companies have introduced a new product or service in the last three years compared to just 40 per cent of UK companies overall.
- 83 per cent of companies in which design is integral have seen their market share increase, compared to the UK average of 46 per cent.
- Design is integral to 39 per cent of rapidly growing companies but to only 7 per cent of static ones.
- 80 per cent of design-led businesses have opened up new markets in the last three years, almost twice as many as the UK average of 42 per cent.
- A business that increases its investment in design is more than twice as likely to see its turnover grow as a business that has not.
Launched at a time when the future of the design industry is under the spotlight, the Value of Design Factfinder is a vital resource in helping to maintain the reputation of British design.
Last year the government’s Cox Review warned that many UK businesses are facing a competitive disadvantage due to a serious shortage of creativity, and it highlighted the importance of design in improving business productivity. The Design Council is now warning that businesses failing to recognise the value of design are leaving themselves increasingly vulnerable in today’s global business environment.
Design Council Chief Executive David Kester said: ‘The UK is a world leader in the design industry and has an outstanding record of innovation, The problem is that designers sometimes struggle to communicate the value of their services because clients are focused on costs and bottom line benefits. Our research provides the proof and the arguments designers need to convince businesses to value the impact of design. This kind of resource is invaluable in driving home the message – invest in design or risk failure.’
The Value of Design Factfinder can be found at: www.designcouncil.org.uk/factfinder
For further information, please contact: Saskia Sissons at the Design Council Press Office on 020 7420 5248, saskia.sissons@designcouncil.org.uk
The data is taken from the Design Council’s 2005 National Survey of Firms.
The survey involved two stages:
- A national survey of 1,500 businesses with more than 10 employees across all sectors of UK business;
- A supplementary survey of 250 businesses which had observed the impact of design on a range of business performance measures.
The research, which is in its sixth year, is undertaken by an independent company, Public and Corporate Economic Consultants (PACEC).
The Design Council is the UK’s national strategic body for design. It aims to strengthen and support the economy and society by demonstrating and promoting the vital role of design in making businesses more competitive and public services more effective.