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