Good design provides competitive advantage

 

Using design as a strategic business tool can help businesses to enhance their core offer.

Businesses can’t just rely on their core products and services to compete. They need something extra – added value – to help differentiate themselves from the competition and tempt new customers, or to keep the ones they’ve already got.

Using and valuing design brings tangible benefits to 'design aware' businesses, and those who understand and act on this insight, have a competitive edge over the rest.

Adding value to products and services makes businesses more successful. The more value they add to their core products and services, the better they do. But when businesses use design to add value, they do even better in a whole range of ways, including bigger profit, turnover and market share.

Design Council research found that design can directly and significantly improve sales, profits, turnover and growth.

The National Survey of Firms, previously published as Design in Britain, has been carried out annually for several years. It’s the most comprehensive investigation into the use of, and attitudes to, design among UK businesses.

A summary of the most important findings from the research shows:

• Every £100 that a ‘design aware’ business spends on design increases turnover by £225.
• In businesses where design is integral to operations, over three quarters say they’ve increased their competitiveness and turnover through design.
• Almost half of all UK businesses believe that, over the past decade, design has become more important in helping them maintain a competitive edge.
• In the past three years, 80% of businesses where design is integral to operations have developed new products and services, compared to a UK average of 40%.
• On average, 'design aware' businesses increase their market share by 6.3% through using design.
• Two thirds of UK businesses believe that design is integral to future economic performance.
• Over two thirds of manufacturers believe it’s worth investing in design in their sector.
• Businesses that add value through design see a greater impact on business performance than the rest.

Read the full Value of Design Factfinder Report on the Design Council website.