Which company is more valuable?

Why?

as a Competitive Advantage

Parag Deshpande

Design = Science + Art

W H A T I SDESIGN

Design = Logic + Creativity

Design is the creation of a plan or convention for the construction of an object, system or measurable human interaction

Science

Logic

Art

Creativity

Design drives the customer experience

• Roadmap to holistic, collaborative implementation• Emotional expression of the creative idea• Rational delivery of action and implementation• Consideration of the cost to manufacture, deliver, support, and

repair

Good design is an elegant solution and crucial for humanization of technology

05/02/2023Redesign concept by IDEO

Great Products

• Should fulfill a need• Aesthetically pleasing• Provide

appropriate/responsive feedback

• Anticipate problems

Great Designer

• An empathetic problem solver• Connects with their audience• Uses a combination of old and

new techniques• Makes something better

It is absolutely essential to apply design thinking to your product or service.

Design and Willingness to Pay

Willingness to supply

Cost

Price

Willingness to pay

Willingness to supply

Cost

Price

Willingness to pay

Threat of New Entrants

Rivalry among Competitors

Threat of Substitutes

Power of BuyersPower of SuppliersModerate to HighLesser design focused companiesCompetitors fail to imitate

Low threat of entrantsResource intensiveHigh capitalProduct differentiation

Low to moderate power of buyersWTP for design oriented companiesNo ability for backward integration

Low threatHigh brand loyalty ROI is high

Low supplier powerDifferent options for suppliersDifficult to forward integrate the process

Design Advantage and Five Forces

Design as a Sustained Competitive Advantage

Resources / Capabilities

Valuable Rare Costly to Imitate

Non-Substitutable

Designers

Design Thinking

Design Culture

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Acquisitions of Design Agencies

~ TechCrunch

~ PR Newswire ~ Economic Times

~ Wall Street Journal

Numbers Speak

References:

• http://www.dmi.org/?page=2015DVIandOTW• https://www.forbes.com/sites/kellyreid/2012/10/31/for-startups-design-is-the-new-competitive-advantage-

2/#64c4193c5419• http://www.cmo.com/features/articles/2015/7/31/design-as-a-competitive-advantagethe-creatives-point-o

f-view-part-i.html#gs.bSFKbZE• http://www.canadianbusiness.com/innovation/why-design-matters/• http://venturebeat.com/2011/10/05/design-is-becoming-a-competitive-advantage-for-startups/• https://www.fastcompany.com/1628107/why-design-thinking-next-competitive-advantage• https://www.ideo.com/us/post/reimagining-the-shopping-cart• https://en.wikipedia.org/wiki/Design