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8/14/2019 BC PTC ID Report 2008
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Supplement to the 11th Report 2008
The British Columbia Premiers Technology Council Presents
The Industrial Design Advantage
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8/14/2019 BC PTC ID Report 2008
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Index
1.0 executIve summary of the Id advantage. . . . . . . . . . . . .1
2.0 IntroductIon to the Id advantage . . . . . . . . . . . . . . . 3
2.1 What is Idus tria Desig? . . . . . . . . . . . . . . . . . . . . . . . . . 3
3.0 the Id advantage . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3.1 Uderstadig the ID Adatage . . . . . . . . . . . . . . . . . . . . . 5
3.2 Beefts Measurig the ID Adatage . . . . . . . . . . . . . . . . . . 6
3.2.1 Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.2.2 Prots. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.2.3 Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.2.4 Stock Perormance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.2.5 Other Benets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.3 The ID Adatage ad Desig r the Eirmet (DE) . . . . . . . . 12
3.3.1 Drivers o DE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.3.2 DE Principles and Methodologies . . . . . . . . . . . . . . . . . . . . 13
4.0 managIng the Id advantage . . . . . . . . . . . . . . . . . . . 17
4.1 Aua Iestmet i ID . . . . . . . . . . . . . . . . . . . . . . . . . 17
4.2 Maagig the Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4.3 Maagig ID r Succes s . . . . . . . . . . . . . . . . . . . . . . . . . 19
5.0 the Id advantage for bc. . . . . . . . . . . . . . . . . . . . . . 21
5.1 Status ID i BC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.2 Ptetia r ID i BC . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.3 Where t G i BC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
6.0 bc case studIes the Id advantage In actIon . . . . . . . . . 24
6.1 Agstrm Pwer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
6.2 Greeight Iati. . . . . . . . . . . . . . . . . . . . . . . . . . . 26
6.3 StemCe Techgies . . . . . . . . . . . . . . . . . . . . . . . . . . 276.4 Xatrex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
6.4.1 Xantrex GT3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
6.4.2 Xantrex Powerpacks . . . . . . . . . . . . . . . . . . . . . . . . . . 31
7.0 references . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
8.0 contact detaIls. . . . . . . . . . . . . . . . . . . . . . . . . . . 37
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1 / Executive Summary
1.0 executIve summary of the Id advantage
Design is not just what it looks like and eels like.
Design is how it works. Steve Jobs, Apple
(The New York Times, November 30, 2003)
The Premiers Technology Council has identied Industrial
Design (ID) as an important aspect o successul technology
commercialisation. Currently underutilised in BC, ID oers
tremendous advantages that could make companies here
more competitive.
According to the Industrial Designers Society o America
(IDSA), Industrial Design is the proessional service o
creating and developing concepts and specications that
optimise the unction, value and appearance o products and
systems or the mutual benet o both user and manuacturer.Industrial design, which sometimes overlaps with other design
disciplines, is about marrying precision and accuracy with
the look, eel and utility o a product. It would be a mistake
however to think o ID as just making another pretty product;
it is about ensuring the product is user riendly and operates
eectively as well.
Around the world companies are using industrial design
and other design disciplines. Positive impacts include
increased product utility, usability and user experience, betterenvironmental sustainability, dierentiation in the marketplace
and improved business perormance. Due to this wide range
o benets, design has been recognised as one o the key
methods or companies to gain a competitive advantage. This
is particularly true in mature sectors where most competitors
have the same technology.
The economic benets that accrue rom ID are distinct and
measurable. These include increased revenue, improved
prots, better stock perormance and higher market share.
In general, industrial design helps companies gain increased
margins through higher prices and lower costs. Higher prices
can arise rom designing products and services with superior
eatures, usability, aesthetics or quality compared to those
o competitors. Costs can be lowered by designing productsand services that maintain quality and unctionality but
have lower development, materials, manuacturing
and transportation costs.
Another advantage provided by ID is its ability to measure,
validate and improve the environmental sustainability o a
product. Design philosophies such as Lie Cycle Assessment
and Cradle to Cradle can minimise materials, waste and energy
in the production phase, and decrease the negative impact
o products on human health and the environment. Thesesustainable practices are particularly important to BC where
we believe in an environmentally conscious liestyle and are
trying to capture market share on clean technology products.
The key to maximising the design advantage is ensuring it
is used eectively. The benets o design run through the
product development and production cycle so applying it only
to add veneer to a nished product will not be as eective as
integrating design throughout the entire process.
index < >
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2 / Executive Summary
Products designed in BC
In British Columbia the economy has been driven by the
resource based industries with little use o ID. Our technology
sector consists primarily o smaller companies that have a low
awareness regarding the benets o ID. As a result, investment
in ID has been relatively small. BCs potential in this area is
demonstrated in some o the early success stories among BC
companies using ID and working with the BC design service
sector. These companies are mainly in outdoor equipment,transportation, lighting, advanced manuacturing, and high
technology sectors. Other BC sectors that the PTC believes can
benet rom greater use o ID include the broad technology
sector, the clean technology sector, and the resource
industries sector, orestry in particular.
To learn more about the ID Advantage and how to benet
rom it companies can investigate the websites o the British
Columbia Industrial Design Association (BCID) and the
Association o Canadian Industrial Designers (ACID).
index < >
http://www.bcid.com/http://www.bcid.com/http://www.designcanada.org/http://www.designcanada.org/http://www.bcid.com/http://www.bcid.com/8/14/2019 BC PTC ID Report 2008
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3 / Introduction
2.0 IntroductIon to the Id advantage
In its recent 11th report the Premiers Technology Council
examined the eect industrial design (ID) can have on the
growth o local industry. That report highlighted the benets
that would accrue to BC i it should make a conscious eort to
promote ID and presented some options to government as to
how it might eectively encourage increased usage o ID.
The PTC is quite conscious however, that although government
does have a role to play it is ultimately the business
community and local industry that need to embrace industrial
design. Individual businesses need to understand the benets
o ID and invest in it. This paper claries those benets and
provides examples.
2.1 What is Idustria Desig?
According to the Industrial Designers Society o America
(IDSA), Industrial Design is the proessional service o creating
and developing concepts and specications that optimise
the unction, value and appearance o products and systems
or the mutual benet o both user and manuacturer.1
Industrial design, which sometimes overlaps with other design
disciplines, is about marrying precision and accuracy with the
look, eel and utility o a product. This can be demonstrated
through a recent example o successul ID, the Apple iPod.
This product not only employed cutting edge technology tocreate an ecient device or storing and playing mp3s, it did
so in an attractive and easy to use orm.
It would be a mistake however to think o ID as just making
another pretty product; it is about ensuring the product is
user riendly and operates eectively as well. In order to
achieve this, the designer undertakes a number o dierent
activities. They can do qualitative research to dene market
opportunities and create a range o ideas to capture that
opportunity. They can gather inormation on customer
behaviour, user preerences and market trends. Once they
have developed the overall concept, they consult with the
client, engineers, or production specialists to establish product
requirements. But they also consider the cost, properties o
production materials and the methods o production. ID is inact a complicated eld where technical analysis meets look
and eel where science meets art.
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4 / The ID Advantage
3.0 the Id advantage
Around the world companies are using industrial design and
other design disciplines to gain an advantage in the market
place through superior customer experience. Companies use
ID to dierentiate rom competitors. It helps companies to
create more competitive products that t with the needs o the
target customers and communicate desired brand values. As aresult ID improves business perormance in all key metrics.
We call this the ID Advantage and evidence o its benets
continues to mount rom both academic and industry
studies.2 3 4 5 Positive impacts include increased product
utility, usability and user experience, better environmental
sustainability, dierentiation in the market place and improved
business perormance. Due to this wide range o benets,
design has been recognised as one o the ew means let or
companies to gain a competitive advantage regardless o thecompetitive strategy (cost, dierentiation, or market ocus)
pursued by the company.
There are several ways to map the benets o design. For
companies, the most useul is the Four Powers o Design
which outlines the ollowing: 6
Design as dierentiator:1. Design as a source o competitive
advantage on the market through brand equity, customer
loyalty, price premium, or customer orientation.
Design as integrator:2. Design as a resource that improvesnew product development processes (time to market,
building consensus in teams using visualisation skills);
design as a process that avours modular and platorm
architecture o product lines, user-oriented innovation
models, and uzzy, ront-end project management.
Design as transormer:3. Design as a resource or creating
new business opportunities; or improving the companys
ability to cope with change; or (in the case o advanced
design) as an expertise to better interpret the company
and the marketplace.
Design as good business:4. Design as a source o increased
sales and better margins, more brand value, greater
market share, better return on investment (ROI); design
as a resource or society at large (such as inclusive design
and sustainable design).
The rst two in particular are used or gaining a competitive
advantage. In the rst case the external, market based
advantage is derived rom the design driven dierentiation
o the companys product or service. The second set ismore internal and enables a company to gain a competitive
advantage rom a unique and dicult-to-imitate combination
o organisational processes and resources driven by
design thinking.
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5 / The ID Advantage
Recognising these benets, several global companies
include design as part o their core strategy. These include
Apple, Philips, Google, DeWalt, Nokia, P&G, Xerox, Sony, LG
and others.7 8 The impact o a strong design program is
demonstrated by success stories rom these companies. For
example, the iPod was redesigned or larger capacity and
smaller size. It was launched in spring 2004 and increased
Apples brand value by 24% rom 2003 to 2004.9 10
3.1 Uderstadig the ID Adatage
Design helps to dierentiate and dene premium products in
an era when most competitors have the same technology.11 12
In general design helps to dierentiate the company through
three key areas.13
Competitive Products and Services1. : ID helps companiesto make products more competitive through improved
usability and ergonomics, aesthetics, higher sustainability
or superior quality compared to those o competitors.
It can decrease production costs and ensure that the
products meet increasing quality constraints. To gain the
greatest competitive advantage ID should be used rom
the beginning o the development process right through to
the release o the nal product. Introducing ID in the nal
stage as a mere styling o the end product has a relatively
minor impact.14 15 16
Enhanced User Experience2. : ID also helps exceed user
expectations through the application o good design in
product categories where users have low expectations
or visual appeal, unctionality or usability. Companies
have used ID to humanise technology and create customerloyalty among customer groups that merely expected to
have their unctionality expectations ullled. It also oers
a means to customise products or local markets.17
Strengthened Brand3. : Design is critical in ensuring that
products and services are aligned with the company brand.
Companies see product design as a mechanism to deliver
a consistent message about the company to customers.
Products represent the brand in consumers homes so
brand values are integral aspects o the design process.18
One o the true strengths o design is that, while it can help a
company reduce the price o a product or service, it provides
so many more advantages than just price. An annual survey
among UK companies reveals that the majority o those
who hold design as integral to their strategy do not need to
compete on price. Where design is integral, less than hal o
businesses compete mainly on price, compared to two thirds
o those who dont use design.19 20 21 Although data rom the
UK is the most comprehensive it is supported by studies rom
other jurisdictions. Finnish manuacturing companies orexample, ranked the ability to dierentiate rom competitors
products and services as the most important aspect o design.
This was especially true among SMEs.22
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6 / The ID Advantage
3.2 Beefts Measurig the ID Adatage
Several studies prove that ID has positive eects on business
perormance measures. These vary rom revenue growth
and an increase in market share to new products and stock
perormance. In general, industrial design helps companies
gain increased margins through higher prices and lower
costs. Higher prices can arise rom designing products and
services with superior eatures, aesthetics or quality compared
to those o competitors. Costs can be lowered by designing
products and services that maintain quality and unctionality
but have lower development, material, manuacturing and
transportation costs.23 24
The primary impacts o design on business perormance are
illustrated in gure 1.25
Customer/ProductInteraction
CoRPoRATE InPUTS RESUlT/oUTPUT
CoMPETITIvEPoSITIonInG FInAnCIAl RESUlTS
FInAnCIAlPERFoRMAnCE
Design Principles
Industrial Design
R&D
Manuacturing
Engineering
MarketingPurchasing
Increased Utility(beyond unction)
Aesthetics/Appearance
Manuacturability
Product Function
EquipmentExpenditures
Perceived Valueby Customer
Selling Price
Product Demand(Volume)
Product Cost
Development Costs
Sales Fiacia Perrmace
Prot/Sales+
Prot/Assets+
Cash Flow/Sales+
Cash Flow/Assets+
Sales Growth+
Prot Growth+
Cash Flow Growth+
Stock market+returns
Figure 1. Impact o Industrial Design
Expenses
Assets
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7 / The ID Advantage
The most extensive annual survey o the eects o ID on
business perormance is done by the UK Design Council.26
To complete this survey, interviews are conducted with 1,500
companies that have 10 or more employees. The results are
weighted to match the national population o businesses with
10 or more employees. The survey includes several elds o
design rom graphic design and industrial design to interior
design and architecture. In 2005, the survey ound thatalmost hal o the UK businesses believe design contributes
to increased market share (46%) and revenue (44%) during
the 12 months beore the study. Additionally one in ten
companies named at least one area where design made a
great contribution to business perormance. The ndings are
presented in more detail in the table 1.
to some extent
to a great extent
Icreased Market Share
to some extent
to a great extent
Icreased Turer
to some extent
to a great extent
Deepmet new Markets
to some extent
to a great extent
Icreased Prft
to some extent
to a great extent
Cmpetitieess
to some extentto a great extent
new Prducts/Serices
Table 1: Extent o contribution o design to business perormance in UK companies27to some extent
to a great extent
Icreased Empmet
7%
46%
44%
6%
42%
6%
42%
7%
38%
7%
9%37%
26%
3%
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8 / The ID Advantage
3.2.1 RevenueInvestment in design can contribute signicantly to a
companys revenue. The annual study among UK companies
measured the impact o design on revenue in a number o
ways. It revealed that: 28 29
For every 1 spent by design alert (+ A) companies, revenue
increased by 2.25.
Companies that increased their investment in design were+
more likely to experience revenue growth.
The chance to experience revenue growth increased by+
more than threeold i the company used design to lead
and guide the product or service development process.
Design alert companies saw an average revenue growth o+
602,000.
Similar eects have been noted in other jurisdictions. For
Finnish metal and manuacturing sector companies, there is
a positive correlation between companies design investment
and sales growth.30 In Denmark companies that invested
in design experienced a 22% greater total increase in gross
revenue than companies that did not invest in design over
a ve year period (table 2).31 32 There is also a correlation
between increased gross revenue and design purchase
behaviour. While companies using design achieve higher gross
revenue growth rates than those which do not, companies
that purchase design services both internally and externallyachieve the highest rate.
A The design alert businesses are specifc 250 companies out o the 1,500
businesses thoroughly interviewed in the UK Design Council National Survey
o Firms. In these companies design had made a direct impact on a number o
measures, such as competitiveness, market share, turnover and employment.
Table 2. Gross revenue perormance and the purchase o design
in Danish companies33
Desig Purchasig
Behaiur
number
cmpaies
Grss reeue perrmace er 5 facia
ears (aerage i DKK 1,000)
Do not purchase design 241 DKK 4,029
Purchase design internallyand/or externally
579 DKK 10,298
Tta 820 DKK 8,455
The gross revenue growth also links to the level o
commitment to design within a company. Danish companies
with greater usage perorm signicantly better than companies
which only use design or styling. Moreover, companies that
increased design activity achieved an additional 40% increase
in gross revenue compared to companies where design
activity was either constant or decreased. This supports
the assumption that a more systematic approach to design
provides better economic perormance.34
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9 / The ID Advantage
3.2.2 ProtsData indicates that ID contributes not only to increased
revenue but also to prots. This perormance ratio is
particularly relevant because it incorporates expenditures on
industrial design (industrial design sta salaries, or industrial
design consultants ees) and so provides clear proo that the
benets actually exceed the expenditures.
A seven year study among almost 200 manuacturing
companies submitting lings to the US Securities and
Exchange Commission (SEC) demonstrated that companies
with more eective industrial design (ranking done by
design managers globally) outperormed their counterparts
systematically. For eective design companies; the
EBITDA (Earnings beore interest, taxes, depreciation, and
amortisation) to Net Sales was on average 75% higher than the
industry average over the seven years. Companies with less
eective ID had a 55% lower ratio than the industry average.
Investment in design can also be measured with Net Income to
Total Assets (ROA) ratio. The study demonstrated a signicant
association with ROA and eective industrial design.35
International Case Study:Small but Growing Technology Company
JS Humidifers
JS Humidiers, a well-known player in it s specialist eld, produces equipment that keeps
humidity stable in critical environments, rom art galleries and pharmaceutical plantsto textile actories and print works. Competition in the industry is intense and manycompetitors have larger resources and more marketing muscle.
JS sought a competitive edge through a product and brand overhaul. They supplementedtheir own design team with some outside expertise and targeted their important, butdated, JetSpray range o products. The resulting design not only looked more modernbut operated more eectively. Capacity was doubled, energy use was halved and thenumber o controls were reduced and simplied. Equally important was the designimpact on the manuacturing and supply chain where manuacturing costs were
reduced by 25%.
t Id a: The JetSpray was launched at a major European trade show, whereit generated 300 sales leads and orders worth over 1m.
UK Design Council, Designing Demand Program,
http://www.designingdemand.org.uk/case_studies/js_humidifers
JS Humidifers, http://www.jshumidifers.com/
index < >
http://www.designingdemand.org.uk/case_studies/js_humidifiershttp://www.bcid.com/http://www.bcid.com/http://www.designingdemand.org.uk/case_studies/js_humidifiers8/14/2019 BC PTC ID Report 2008
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10 / The ID Advantage
3.2.3 CostsThe role o industrial design in creating cost savings is critical
since up to 90%-95% o the products production costs are
locked in the design stage.36 Cost savings can be achieved
through improving the manuacturing o the product,
developing new solutions to achieve specic unctionality, and
seeking high-quality and low cost materials. Use o design can
also decrease the amount o time needed to bring a product
to market.37 Again the UK design study provides evidence
regarding the impact o design. In some cases the prots
increased more than revenue, thus design trimmed costs
rather than improved sales.38
Up to 90% 95% of the products production costs are
locked in the design stage.
3.2.4 Stock PerormanceAnother key measure o the positive impact o ID is in its
contribution to the stock perormance o a company. The
most extensive proo or this is the Design Index created by
the UK Design Council.39 40 The index includes 61 design-
led businesses traded on the London Stock Exchange. The
companies were selected based on design awards and
included Unilever, Hilton Group, British Airways, EMI Group,
and Tesco.
Shares in design-led businesses have outperormed key stock
market indices (FTSE 100 and FTSE All-Share) by about 200%
over the past decade. This trend has been constant and the
Index increased more in good times and decreased less in bad.
The perormance is presented in gure 2.41 42
International Case Study: A Technology Startup
owste
A startup technology company called Owlstone in the UK had developed a revolutionarydevice about the size o a small coin. It could detect a wide range o chemical agentseven in miniscule quantities. As with many new technologies Owlstones challenges
stemmed rom trying to explain the new technology to investors and customers and intrying to select the best application or market entry.
To address this Owlstone worked with designers in two areas. They worked to build abrand and corporate strategy. They also worked to devise simple p roducts that woulddemonstrate the applications o the technology beyond the narrow market o domesticmilitary security.
t Id a: Within two years Owlstone was able to launch the Tourist, arelatively inexpensive yet revolutionary chemical sensor. It is designed so it can be easily
modied to suit dierent applications. Not only did the product immediately begin togenerate revenue but when combined with the corporate strategy it enabled Owls tone toattract another $2.3 million in investment.
UK Design Council, Designing Demand Program,
http://www.designingdemand.org.uk/case_studies/owlstone
Owlstone, http://www.owlstonenanotech.com/site.php
index < >
http://www.designingdemand.org.uk/case_studies/owlstonehttp://www.owlstonenanotech.com/site.phphttp://www.owlstonenanotech.com/site.phphttp://www.designingdemand.org.uk/case_studies/owlstone8/14/2019 BC PTC ID Report 2008
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11 / The ID Advantage
Figure 2. Design index ten year perormance (1995 2004) 43
4000
3500
3000
2500
2000
1500
1000
500
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Shares in design-led
businesses haveoutperormed key stock
market indices (FTSE
100 and FTSE All-Share)
b abut 200% over
the past decade.
Design Portolio
Emerging Portolio
FTSE 100
FTSE All-Share
IndexValue
Year
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12 / The ID Advantage
0
5
10
15
20
25
30
35
40
45
1 1.5 2 2.5 3 3.5
The same eect was ound in a seven year study o almost
200 public manuacturing companies submitting lings to
the US Securities and Exchange Commission. For every year
o the study, companies with more eective industrial design
outperormed their counterparts in stock market return.44
More evidence can be ound among Finnish metal and
manuacturing sector companies. There is a positive
correlation between the design investment in companies and
their P/E ratio (table 3).45
Table 3. Design investment and P/E ratio in Finnish metal sector companies 46
3.2.5 Other BenetsThe positive impact o industrial design can be ound in a
number o other areas. These include:
New Products:+ In a 2005 UK study, companies where
design is integral to operations were twice as likely to
have developed new products and services. Between 2002
and 2005, 80% o these companies had developed a newproduct or service compared to a UK average o 40%.47
Market Share:+ ID contributes to the creation o new
markets and the increase o market share in existing ones.
Design alert companies in UK were able to increase their
market share by 6.3% through design.48
Exports:+ Companies that invest in design have higher
export rates than companies that do not. In Denmark
companies that use design export 34% o their revenue on
average while their counterparts export only 18%.49 50
3.3 The ID Adatage ad Desig rthe Eirmet (DE)
A critical advantage provided by industrial design is its
ability to measure, validate and improve the environmental
sustainability o a product. Sustainable product design or
Design or the Environment (DE) has become one o the
most important applications o design. DE can also improve
perormance in areas that are not strictly related to the
environment. The principles o DE will minimise materials,
waste and energy in production and decrease the negative
impact products can have to protect human health and the
environment. These can be cost savers both in the short and
long term.
Rocia
WrtsilKCI Konecranes Metso
FiskarsPonsse
Kone
Rautaruukki
OutokumpuRaute
Nordic Aluminum
Design Investment
P/E
Ratio
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13 / The ID Advantage
Sustainable design practices are particularly important to
BC where we believe in a more environmentally conscious
liestyle and are trying to capture market share on clean
technology products. The purchasers and users o products
and technology that serve a green purpose expect these
products to be designed and developed using sustainable
design standards.
3.3.1 Drivers o DEThe growth o sustainable product design can be attributed
to several actors. The most important is that customers
have become more educated and have come to understand
the impact o their decisions on the environment. It is these
customers, whether they are corporate clients or consumers,
who are driving suppliers to be more sustainable. Their
expectations create a demand or change in how products
and services are made and supplied. For example, Steelcase, alarge oce supply company, reports that nearly 85% o their
client proposal requests have an environmental component
today compared to just 40% two years ago.51 52 53
Governments are also beginning to respond to this public
demand. Up until now, there has been no Leadership in
Energy and Environmental Design (LEED) type benchmark
or green products. Although there have been some isolated
programs that have a producer responsibility component,
like beverage container or paint recycling programs, there
have been no laws in North America that make producers
nancially responsible or waste. That will begin to change
with the European Union leading the way. Under the WEEE
(Waste Electrical and Electronic Equipment) initiative producers
are responsible or recovering and recycling electronic
products. Similar EU directives on hazardous substances areorcing companies who wish to sell their products in Europe
to improve their sustainability.
Thus the designers are increasingly learning how to design
more sustainable products and services. They are trying to
educate their clients and consumers. Education institutions are
in turn beginning to include sustainability as part o their core
design curriculum. All o this is serving to make DE an ever
more important aspect o design.
3.3.2 DE Principles and MethodologiesDesign decisions made in product development aect the
entire value chain and the environmental ootprint the
product creates during its lie cycle. It is estimated that 70%
to 90% o any given products ootprint can be addressed at
the design stage.54
Figure 3. Design decisions aect all parts o the value chain 55
Raw MaterialsProduct
ManuacturingDistribution
& SalesUse
Disposal& Recycling
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SySTEM BoUnDARyInPUT oUTPUT
Waterbornewastes
Airbornewastes
Solid wastes
Otherenvironmentalreleases
Useableproducts
Energy
Raw materials
This does not just apply to consumer products but to all
products rom wood pellets and hydrogen uelling stations to
medical devices. The industrial design discipline uses several
practical strategies and methodologies to ensure DE and
minimal ootprint. The strategies include: 56
selection o low-impact materials;+
avoiding toxic or hazardous materials;+choosing cleaner production processes;+
maximising energy and water eciencies;+
designing or waste minimisation; and+
designing or disassembly and reclamation.+
The key methodologies or philosophies to ensure sustainable
design include Lie Cycle Assessment (LCA), and Cradle to
Cradle design.
3.3.2.1 Lie Cycle Assessment (LCA)
Lie Cycle Assessment has become a way o thinking which
provides specic analysis tools. The objective is to gain insight
into environmental impacts throughout the entire lie cycle
o the product or service in order to reduce those impacts.
It allows designers to link the environmental loads to a
unctional unit o the product. The analysis encompasses the
entire product lie cycle including:57
upstream processes o the product+(raw materials, manuacturing, transport etc.);
downstream processes (energy and materials+
consumed by the product in use, re-use, recycling
or disposal options); and
inputs and outputs rom these processes.+
There is an internationally agreed standard or LCA and
it is documented in the International Organisation or
Standardisation (ISO) 14000 series.
Figure 4. Product system rom a lie cycle perspective
58
Raw materials acquisition
Manuacturing, processing
and ormulationDistribution andtransportation
Use/re-use/maintenance
Recycle
Waste Management
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3.3.2.2 Cradle to Cradle
To eliminate the concept of waste means to design
things products, packaging, and systems
from the very beginning on the understanding that
waste does not exist. McDonough and Braungart (2002, p. 104)
Cradle to Cradle is a philosophy developed primarily by
architect William McDonough and scientist Michael Braungart,
who co-wrote the 2002 book Cradle to Cradle: Remaking the
Way We Make Things.59 60 61 62 63 They believe the principle o
Reduce, reuse, recycle is fawed because it only minimises the
damage. Cradle to Cradle would instead create production
techniques, buildings and even communities that are
essentially waste ree. The waste rom one area is ood or a
resource or another area or process. These inputs and
outputs o a system are seen either as technical or biological
nutrients. To ensure these can be completely recycled and
reused, products must be designed or disassembly, so the
materials can be easily separated.
From a health and environment perspective the benets o
Cradle to Cradle are obvious. It reduces exposure to toxins,
improves air and water quality and conserves resources.
There are also benets rom a corporate perspective. Cradleto Cradle provides a healthier and cleaner environment or
employees and includes a number o economic benets as
well. Cradle to Cradle projects that prove economic success
and sustainability can co-exist have been conducted by
companies such as Ford, Nike and BASF.64
International Case Study: Design or Environment
Steecase *
Steelcase, a global leader in the ofce urniture industry, designs and manuacturesarchitecture, urniture and technology products. In an industry with such mature marketsSteelcase needed to nd new areas o growth. At the same time, consumers were becoming
more educated on sustainability as proposal requests with an environmental component roserom 40% to 85% over a two year period. Along with this consumer demand, inormation romthe US Environmental Protection Agency indicated that three million tons o ofce urniture isdeposited in landlls each year, and that many o the components are toxic. Steelcase decidedto design a new environmental product.
Steelcase spent three years in the development stage working collaboratively with WilliamMcDonough, one o the originators o the Cradle to Cradle methodology, and with the Instituteor Product Development in Denmark, an organisation with expertise in Lie Cycle Assessment.The net result was the THINK Chair, which Steelcase bills as having both a brain and aconscience. The Think chair thinks or the user, anticipating user needs and reacting to them
by automatically adjusting itsel, moving with the body and providing support in proportion tobody weight.
The Think chair also conorms to the highest environmental standards. It is comprised o up to44% recycled content, is 99% recyclable by weight and can be disassembled or recycling in veminutes with common hand tools.
t Id a: The Think Chair has been a hot seller with the green certication being apowerul sales tool, particularly in Europe. The Think chair was the rst ofce urniture productto receive McDonough Braungart Design Chemistrys (MBDC) new Cradle to Cradle ProductCertication (gold). Steelcase has also gained other positive attention, including the prestigious
gold IDEA design award.
Nahikian, A. (July 2007), Cradle to Cradle: An Environmental Evolution, Environmental Design and
Construction Magazine. http://www.steelcase.com/na/ourcompany.aspx?=25852
Steelcase, http://www.steelcase.com/na/environmental_think_products.aspx?=11845&c=17820
* Scott, S. (May 2006), Taking Landfll Out o the Loop, Azure Magazine, p.82-86
index < >
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Cradle to Cradle certication was launched in 2007. To certiy
a product, companies must take responsibility or ensuring
their products are entirely re-usable, as opposed to just
ensuring sae disposal as in many o the Lie Cycle Assessment
based concepts. It includes a materials assessment, as well
as measures o other sustainability criteria including energy
use, water stewardship, and recyclability. There are almost
50 companies (as o June 2008) which have had a total o 139products certied. These include Herman Miller, PolyVision
Corporation, Steelcase, and the United States
Postal Service.65
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4.0 managIng the Id advantage
One o the challenges or companies unamiliar with design is
determining how much to invest and how to integrate design
into their processes. These issues are intertwined as the
amount a company invests will vary based on the companys
competitive strategy, the level o ID integration, and whether
design is in-house or outsourced to external consultancies.Consequently, how a company invests in ID and incorporates it
into the product, process and strategy development is just as
important as the amount that is invested.
4.1 Aua Iestmet i ID
Studies done around the world suggest that companies in
general invest less than 1% o their net sales and 5%-20% o all
their innovation related costs in ID per year. A survey among
Finnish manuacturing companies indicated that the design
costs were low compared to total R&D costs. On average they
accounted or about 0.3% o net sales and only 12% o the R&D
expenditure. Even in companies that apply design regularly
the mean expenditure constituted only 0.5% o the net sales
and 16% o the R&D expenditure. Some o this cost was
internal as the share o the external design services was about
76% o the total costs.66
In the UK, the 2001 Innovation Survey measured design
investment dierently.67
It measured innovation relatedexpenditures and determined that o all the innovation related
expenditures companies spent 8% on design and 37% on R&D.
Table 4 presents the expenditure to design in dierent sectors.
Table 4. Distribution o expenditures on innovation amongst UK frms
with innovative activities68
IntramuralR&D
AcquiredR&D
AcquiredM&E
Acquiredknowledge
Design
Training
Marketing
Low techmanuacturing
10% 2% 66% 2% 4% 2% 14%
Medium low techmanuacturing
18% 2% 65% 4% 6% 2% 3%
Medium high techmanuacturing
46% 3% 19% 3% 21% 4% 3%
High techmanuacturing
64% 6% 11% 4% 7% 1% 8%
Manuacturing 39% 5% 30% 6% 9% 2% 8%
Extraction, utilities,recycling
13% 3% 77% 2% 3% 1% 1%
Construction 4% 0% 69% 5% 14% 5% 2%
Technical Services 68% 14% 7% 5% 4% 1% 0%
Inormation techservices
13% 2% 36% 21% 12% 4% 13%
Financial services 3% 1% 64% 18% 4% 2% 8%
Business services 14% 0% 48% 17% 11% 5% 6%
Transport & storage 6% 0% 77% 6% 3% 4% 4%
Wholesales 12% 7% 17% 7% 4% 1% 52%Services 31% 7% 31% 12% 6% 2% 11%
A respdets 37% 5% 30% 8% 8% 2% 9%
Intra-mural expenditures are all expenditures or R&D (Research & Development) perormed within the unit
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Companies most oten acquire design externally rom
design consultancies and subcontractors. About 90% o
Finnish manuacturing rms using design acquire ID services
externally while 40% o all Danish companies do so. In the UK
one in ve businesses commissions external agencies.69 70 71
Even so, internal design investment is also important,
especially or larger companies. Almost 30% o Finnish
manuacturing companies have in-house designers and the
average number o designers is six.72 The percentage is
the same among UK companies and they typically employ
between two and our people.73 Some 25% have dedicated
design departments with larger companies the most likely
to have one (almost 50%). Companies tend to apply design,
not just ID, to areas o their businesses that are consumer
or client acing and are less likely to use it to improve
operations internally.74
Table 5. Hiring designers in UK companies75
The return on design investment was reasonably swit. A study
among UK SMEs in the manuacturing sector showed that the
average payback time or design projects was 15 months rom
the product launch.76 Some 48% o the implemented projects
recovered total costs within a year or less ater the market
launch. Almost 90% o the projects achieved payback within
three years. Perhaps because o this low risk and high return,
investment in design is on the rise. Studies in Europe andAsia all indicate that companies are increasing expenditures
on design.
4.2 Maagig the Risk
The risk associated with investing in design is minimal and the
key contributors to ailure are controllable. A study 77 among
UK SMEs in the manuacturing sector showed that almost 90%
o the design projects that were launched repaid their total
project investments and made prot. When projects ailed,the average losses were relatively low because most ailures
occurred prior to the start o production.
ID ailures are oten attributable to a lack o suitable design
management skills in the company. This can result in vague
objectives, lack o integration with company processes, and an
attention to styling as opposed to a desire or genuine product
improvement. Inexperience can also lead to challenges when
interacting with a design consultant. An inadequate brieng,
ailure to maintain regular contact and poor consultantselection processes can all lead to aulty work and poor
design quality.78 79
We employ designers internally
Hirig Desigers
34%
We have a dedicated design department
We hire external design consultants
We dont have any design activity
25%
19%
45%
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Global companies that use design successully have
ound the ollowing activities minimise the risks
associated with design: 80
Maximise senior management support or design;+
Ensure strong, visible leadership o the design unction;+
Foster a corporate culture that values design;+
Integrate design activities as tightly as possible with wider+
business processes;
Equip designers with broad, business relevant skills+
beyond their core unctional capabilities;
Develop and use design tools and techniques; and+
Promote ormal but fexible control o the design process.+
4.3 Maagig ID r Success
As highlighted in the data, how a company organises and
integrates ID into its processes can infuence its impact.
Companies oten start designing in an unplanned way. Beore
a company starts to buy external design services, the design
is oten internal and conducted by sta who are not design
proessionals. Once a company engages with external design
proessionals it gains condence and an understanding o
design tasks. The projects with design consulting companies
help to improve the internal attitude towards design and teach
the company design management skills, particularly how
to brie and manage proessional designers.81 82 The Danish
Design Centre developed a design ladder which illustrates
this process o design integration by breaking it out into our
dierent levels. They range rom the incidental to the highly
strategic.83
Step 1+ : Design as unplanned activity: Design is an
inconspicuous part o product development and
perormed by members o sta, who are not design
proessionals. Design solutions are based on the
perception o unctionality and aesthetics shared by the
people involved. The point o view o the end user is rarely
considered.
Step 2+ : Design as styling: Design is perceived as a nalaesthetic nish o a product. In some cases, proessional
designers may perorm the task, but generally other
proessions are involved.
Step 3+ : Design as process: Design is not a nite part
o a process but a work method adopted very early in
product development. The design solution is adapted
to the task, ocused on the end-user and requires a
multidisciplinary approach. It involves process technicians,
engineers, material technologists, marketing and
organisational people.
Step 4+ : Design as innovation: The designer collaborates
with the company leadership to adopt an innovative
approach to all or substantial parts o the business
oundation. The design process is an important element
in combination with the company vision and uture role in
the value chain.
Studies indicate that the urther up the design ladder a
company resides, the more successul it becomes compared to
competitors. For example, Swedish companies on the higheststep had average revenue growth o 9.0% while those who
used ID just or styling grew at only 6.5%.84 As noted earlier
however, management o design is an important actor in its
success.85 86 So i the design ladder is melded with a modern
understanding o successul management approaches then
IDs contribution to success can be more clearly understood. 87
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5.0 the Id advantage for bc
5.1 Status ID i BC
Industry in BC has not traditionally taken advantage
o ID.8990 From a historical perspective, BCs economy
has been driven by the resource based industries with little
use o ID. Manuacturing here has also tended to be driven
more by engineering than by ID and this has carried over to
the technology sector. In part this is because the sector is still
immature by global standards and ID usage increases as a
sector matures. The net result is that ID investment in BC has
been quite small. The PTC believes that this is ripe or change
and that companies in BC can benet rom the ID advantage.
BC has some strong assets to build the ID advantage.
One is the Emily Carr University o Art and Design (ECUAD).
Its programs oer both a BA and an MA in industrial designand produce about 30 ID graduates per year. BC also hosts a
Design Research Canada network at SFU, which links design
researchers to industry. Data also shows that BC has a strong
creative class o which ID proessionals, represented
by the BC Industrial Design Association (BCID), are an
integral part.91 92
5.2 Ptetia r ID i BC
BCs potential in this area is demonstrated by some o the
early success stories among BC companies using ID and
working with the BC design service sector. These companies
are mainly in the outdoor equipment, transportation, lighting,
advanced manuacturing, and high technology sectors.
There are other BC sectors that could make better use o the
ID advantage. There are three in particular that the PTC
has identied.
The rst is the broad technology sector. ID usage has been low
here, in part, because BC technology companies themselves
tend to be quite small. Although there are nearly 10,000
companies employing almost 75,000 people, less than 40
o these companies employ over 200 people in BC.93 94
Because these companies are smaller and the sector relatively
immature there is low awareness o the ID advantage.
Resources are precious or these smaller companies, so a lowawareness o the ID advantage leads to these resources being
dedicated elsewhere. Case studies included in this report
however, indicate that it is some o these smaller technology
companies that can reap the greatest benets rom the
ID advantage.
Another BC sector with strong design potential is the
development o clean technologies and their associated
products. BCs strength here lies not only in its growing
industry base but in an interest in applying both Lie Cycle
Assessment and Cradle to Cradle design. One o the most
recognised curricula or teaching these principles is the Okala
Design Guide co-developed by one o the ID aculty members
at ECUAD. The guide is endorsed by IDSA and the material is
used by over 60 design schools in North America.95
Finally, ID can be key to the transormation o our traditional
resource based industries. Mining and orestry remain critical
components o BCs economy. This is true or the regional
economies but also in the urban centres where, although
their impact is less visible, they remain the most importanteconomic driver. Furthermore, contrary to the traditional
view o the lumberjack with an axe or a miner with a pick,
technology and hence design play critical roles in these
traditional industries.
These industries are acing challenging times however, and
design will play an important role in addressing current
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22 / The ID Advantage for BC
and emerging issues. This is particularly true or BCs wood
products sector as the orest is transormed by the impact
o the pine beetle. The orest and wood products industries
must develop new products and practices, and look to the
uture. Key competitors in the wood markets in Scandinavia,
New Zealand and the USA have all recognised the need to
apply design to the wood industries and are investing in
programs.96
Looking again to our case studies we can see thatthese sectors are among the most important opportunities
or the application o ID in British Columbia. Fortunately, BC
has FPInnovations, Canadas Wood Products Research Institute,
which is working to increase the awareness and use o design
in the orest sector.
5.3 Where t G i BC
Companies who wish to learn more about ID or how to apply it
to their operations can look to the British Columbia IndustrialDesign Association (BCID) , or the Association o Canadian
Industrial Designers (ACID).
BCID is a non-prot organisation registered under the
Societies Act, and represents Industrial Designers working in
British Columbia and all Canadian provinces west o Ontario.
The BCID is a Corporate Member o ACID. Other Corporate
Members o ACID include the Association o Chartered
Industrial Designers o Ontario [ACID-O] and the lAssociation
des Designers Industriels du Qubec [ADIQ]. As a membero ACID, BCID is also a member o the International Council
o Societies o Industrial Design [ICSID], a partner o the
International Design Alliance [IDA]. The BCID currently has
30 proessional members.
International Case Study: Forest Product Development
uPm ak
UPM is one o the worlds leading orest products groups. UPMs main products includeprinting papers, label materials and wood products. They had developed a new materialcalled UPM ProFi which is manuactured rom surplus materials, primarily paper and
plastic, let over rom t heir sel-adhesive label production. Because they needed creativeproduct ideas and demonstration op portunities UPM contacted Artek, one o Finlandsbest known product design companies.
The resulting product was UPM ProFi wood plastic deck. It is a recyclable hi-tech productthat can be treated as wood and combines the best characteristics o wood bres andplastic. The rigid sur ace o the deck can endure hard blows and mechanical erosion. Itis easy to install and does not need any specic chemicals or surace treatment. As ademonstration project, UPM and Artek collaborated with Japanese architect Shigeru Banto create the Space o Silence, a pavilion built entirely o UPM ProFi and decorated with
Arteks 2nd Cycle urnishings. The pavilion was rst p resented at Salone Internationaledel Mobile in Milan, Italy in April 2007.
t Id a: The UPM ProFi Deck patio concept has been well received.Production began in Lahti, Finland, and has been expanded to meet increasing demandrom central Europe with the construction o a new mill in Germany. The UPM ProFiproduct has won a clean technology award. The pavilion itsel has also been a success.It has been displayed at several design shows and will be auctioned o in the Important20th Century Design auction by Sothebys auction house. The selling price is expected toexceed $800,000.
UPM Kymmene, http://w3.upm-kymmene.com/
Artek, www.artek.f/en/index.html
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British Columbia Industrial Designers Association [BCID]
PO Box 33943
Vancouver, BC Canada V6J 4L7
www.bcid.com
Association o Canadian Industrial Designers [ACID]
www.designcanada.org
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6.0 bc case studIes the Id advantage In actIon
ID has already been successul in BC. This handul o
case studies is by no means comprehensive but clearly
demonstrates how companies in our own jurisdiction have
used the ID advantage. Their success proves out what studies
rom other jurisdictions have shown. There is an inherent
advantage to ID and that advantage is as applicable here asanywhere else.
We would like to thank British Columbia Industrial Design
Association (BCID) and the companies listed below or their
help in creating these case studies.
6.1 Agstrm Pwer
The Challenge:Angstrom Power is a North Vancouver based technology
innovator engaged in the development and commercialisation
o micro uel cell technology or tomorrows multi-
purpose hand-held electronics. Angstrom needed to clearly
demonstrate both to industry partners and to the public
that their uel cell technology is not only usable but market
ready. They had developed a number o unctioning uel cell
demonstration products but had two challenges they needed
to address through ID. Firstly, rom an aesthetical perspective
these products were more suited or the research environmentthan the living room. Secondly, the products also needed to
be produced in very low quantities, so traditional high volume
manuacturing methods were not appropriate.
The Approach:Angstrom worked with Vancouver based ID rm Tangram
Design, who created concepts that embodied the look, eel,
and interace o an already established product. These
concepts enabled the company to reinorce that this was a
mature, proven technology to its consumers. In particular,
Tangram worked with Angstrom to develop a consistent
product semantic or eatures such as air vents, stand-by
modes and items specic to uel cell devices that did not have
established orms in other handheld applications.
Concepts were initially produced virtually, allowing Angstrom
to use photo-realistic renderings in presentations and on their
website well in advance o producing physical components.
Designs intended or prototype manuacturing leveraged low
volume while rapid-manuacturing technologies such as CNC
machining, stereolithography, and RTV tooling produced small
numbers o parts quickly and cost eectively.
Benets o the ID Advantage:Angstrom has used industrial design not only to develop
successul demonstration products but has also embraced
design as a strategic business tool. Angstrom and Tangram
have collaborated on a number o conceptual projects that
have allowed them to rapidly explore uture paradigms and
assist potential hardware partners in envisioning Angstroms
technology integrated into their commercial products.
In November 2007, Angstroms metal hydride-based uel cell
systems were approved or both passenger cabin and cargo
provisions by the International Civil Aviation Organisation
(ICAO), enabling global mobility o its devices. By being able
to demonstrate its technology to regulatory and certication
bodies, Angstrom has garnered approvals, which will permit
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25 / BC Case Studies the ID Advantage in Action
consumers to carry saety-certied devices with them on-
board commercial aircrat, eective January 1, 2009.
Measuring Success:Originally ounded in 2001, Angstrom has grown to 50
employees at its North Vancouver research and production
acility. In September o 2006 Angstrom closed its most recent
round o private equity nancing with a US $18 million round
led by VantagePoint Venture Partners, who joined Angstroms
existing investor consortium that includes Ventures West,
GrowthWorks Capital, Chrysalix Energy, OPG Ventures, and
Aret Corporation.
Angstrom G2 Micro Hydrogen Charger
Angstrom A2 Fuel Cell Flashlight
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6.2 Greeight Iati
The Challenge:Greenlight Innovation is a leading global supplier o testing
and diagnostic equipment to the uel cell industry, with the
largest installed base in the world. Greenlight Innovations
current product line includes test stations or uel cell stacks,components, uel reormers, electrolysers and uel cell
systems. In 2003 Greenlight had a goal o producing a clean,
visually distinctive branded product platorm with modular
and standardised eatures to minimise costs and maximise
returns. The in-house Greenlight marketing department
championed using industrial design at an early stage o the
product development cycle.
The Approach:Greenlight worked with local Unique Industrial Design
Inc. [UNIQUE:ID] which aligned business and marketing
objectives and worked closely with the in-house mechanical
and electrical engineering teams o Greenlight and Pacic
Design Engineering [PDE]. Unique: IDs intent was to create
an end to end design plan which consolidated the makeup o
components with the look and eel o the product.
Benets o the ID Advantage:The design settled on cost eective linear materials that not
only improved the look o the old unit but reduced assembly
time. The human user interace, sheet metal, vinyl graphic
and component design standards which were set in the initial
G500 program were modular in design. This enabled the team
to quickly and eciently design three more machines in three
months. According to Greenlight: This design work gave us
the frst uel cell test station in the marketplace that had an
appearance o a refned product rather than a lab prototype
bolted together in an aluminium extrusion rame, this clearly
dierentiated us as the industry leader.
Measuring Success:The visually distinctive look became standardised across the
brand. This allowed or improved design cycle times, shorter
product lead times and improved perormance. There was an
overall cost reduction o 25 30%.
Greenlight Innovation G50, G100 and G500
G500 design process Greenlight Innovation G700
index < >
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6.3 StemCe Techgies
The Challenge:StemCell Technologies is a lie sciences company dedicated
to providing a range o products that support innovative
research in hematology, immunology, cancer research,
developmental biology, and many other areas o lie scienceresearch. Their desire was to increase the durability o the
surace coatings on test equipment used in laboratories.
The Approach:For this more project specic challenge, StemCell
approached industrial design company Form3 based in
Vancouver. Form3 reviewed the use o the equipment with
the client and proposed various options to address the
problem. Preliminary testing o the solutions as well asabrication estimates provided a comparison o the easibility
o each option. Prototypes were provided to the client or
eld testing. Specication drawings were generated or
manuacturing control.
Benets o the ID Advantage:Form3s design approach looked beyond merely developing a
new equipment coating. Instead, Form3 proposed repackaging
simplied internal components in an aluminium housing withminimal seams and replacing the cast aluminium stands with
parts having smoother nishes. The new products are CNC
machined, which provides the necessary levels o quality,
durability and precision. The parts are then anodised. This
process produces a highly durable nish with attractive
colours which helps distinguish the dierent models within
the product amilies. Graphic inormation is laser etched into
the suraces to avoid any use o adhesives required previously
or labels. The new abrication strategy led to an overall cost
reduction o approximately 40% or the equipment.
Measuring Success:The industrial design o the equipment provided a more
unctional and attractive product at a reduced manuacturing
cost. Based on the success o this initial project, StemCell
engaged Form3 to work with them on design issues or other
StemCell products. The equipment resulting rom the initial
project is still in use and available or sale by StemCell ater
nearly 10 years.
index < >
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28 / BC Case Studies the ID Advantage in Action
StemCell Technologies Red Housing and stand in context with la boratory equipment
Beore and ater comparisono the housing design
Early concepts exploring aesthetic eaturesand options or manuacture
Family o housings and stands
A smaller hand-held housingwas developed to address
additional markets
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29 / BC Case Studies the ID Advantage in Action
6.4 Xatrex
Xantrex is a world leader in advanced power electronics,
enabling delivery o electricity anytime anywhere. It ocuses
on the renewable, mobile and programmable markets. With
a number o products, more than 800 employees and 2007
revenues o over $230 million Xantrex makes airly extensive
use o ID including the ollowing two case studies.
6.4.1 Xantrex GT3
The Challenge:Xantrex was developing the GT3, a new Grid-Tie inverter. They
wanted a high quality appearance consistent with new Xantrex
product designs. At the same time they wanted unctionality
including ease o assembly, installation, operation and
maintenance while adhering to constraints such as heatdissipation, outdoor environment, and component integration.
The Approach:Key Xantrex personnel met with Form3, a BC ID rm, to
properly identiy relevant parameters. Form3 also discussed
preliminary ideas rom a variety o perspectives. Functional
conguration options or the system were illustrated and
evaluated in terms o overall unctional benets and costs.
Renderings and visual mock-ups o preerred directions wereevaluated to conrm positive responses to the appearance and
usability. Form3 worked with the development team at Xantrex
to ensure the design intent was carried through by addressing
specic problems and challenges.
Benets o the ID Advantage:Production quantities or this type o product restrict
options or the housing design, which oten result in amiliar
utilitarian appearances. The industrial design proposal
considered suitable manuacturing processes and materials
while arranging the components in a manner which not only
respected unctional constraints but provided a unique, and
stylish overall appearance. The heat sink shape is enhanced
with a convex prole. The extrusions used on the outer
rame provide structure, visual and physical alignment.
The installation process is simplied without resorting to
highly visible brackets and asteners. Access to critical
components such as disconnect switches is addressed without
compromising the overall clean appearance, or ability to
operate over many years in an outdoor environment.
Measuring Success:The industrial design o the GT3 has contributed to
the establishment o the GT3 as a world market leader.
Since product launch in early 2004 there have been over
40,000 units sold in NA, the EU, and Asia, exceeding all
initial expectations. The same chassis was fexible
enough to support the growth o the GT series amily
rom the initial single model to over 10 models covering
a variety o power levels.
index < >
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Xantrex GT3
An exploded diagram used to discusspossible assembly strategies
Xantrex GT3
A collection o sketches and computerimages used to explore aesthetic and
confguration options
Xantrex GT3
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31 / BC Case Studies the ID Advantage in Action
6.4.2 Xantrex Powerpacks
The Challenge:Xantrex sought to develop a new line o consumer oriented
portable power products. The intent was to dierentiate
rom the competition and access new markets with a distinct
departure rom the traditional appearance o inverters, andto establish a look and eel or a new category o products.
By partnering with an industrial design rm with consumer
product experience, Xantrex sought to target its industrial,
commercial and automotive product categories to a mass
consumer audience.
The ApproachXantrex worked with Form3 to address this challenge.
The designers began by conducting a review o competitorproducts and trends in other consumer product categories.
This allowed or an appropriate direction to be set.
Brainstorming sessions led to a range o conguration and
stylistic options that were illustrated or the purpose o
evaluation by marketing and engineering representatives.
Once the design was chosen, the specic details were
resolved to ensure visual qualities were carried through to
nal manuacturing.
Benets o the ID Advantage
Powerpack series:
The re-conguration o internal component positioning
provided opportunities to lower the center o gravity and
make the product more stable, increasing its consumer market
appeal. Other external eatures like the fashlight and air
compressor hose were integrated in a more attractive manner,and the central display o the AC power outlets established
the product as a portable power source rather than just an
automotive accessory.
Pocket inverter (Powersource mini) series:
By reordering internal components and rening the connector
areas, the apparent thickness o the housings was minimised,
creating a sleek and attractive product. In addition, smooth
streamlined outer shapes replaced the exterior extruded
aluminium ribs typical o products in this market. Ventilation
eatures were enhanced by shapes which are more evocative
o a power product.
Measuring Success:Xantrex has become the market leader in the powerpack
category, and has shipped over hal a million units. The
re-designed pocket inverters have revitalised the inverter
category and have allowed Xantrex to exceed its sales orecast
by 30% in 2 years.
index < >
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32 / BC Case Studies the ID Advantage in Action
Xantrex Powerpack productCAD images o some earlyconfgurations along witha cross section o thechosen direction
CAD images o showingsome early aesthetic
options or thePowerSource 100. Anappearance model is
shown on rightCAD rendering o the smaller
PowerSource Mini
Xantrex Pocket Powerpack
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33 / References
7.0 references
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22:321, p. 6.
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Management Review, Fall 2007, p. 90-97.
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http://195.157.47.227:8080/design-council/pd/TheValueODesignFactnder.pd, p. 12.
UK Design Council (2004), The impact o design on stock market per ormance 28
An analysis o UK quoted companies 1994 -2003.
UK Design Council (2007), Design in Britain 2005-06, p. 11-17.29
Nyberg, M. and Lindstrm, M. (2005), Muotoilun Taloudelliset Vaikutukset, ETL A,30
Discussion papers No. 982, p. 15-18.
Ramlau, U. and Melander, C. (2004), In Denmark, design tops the agenda, Design31
Management Review, all 2004.
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Efects o Design, www.ebst.dk/le/1924/the_economic_efects_o_designn.pd,
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Hertenstein, J., Platt, B. and Veryzer, R. (2005), The Impact o Industrial Design35
Efectiveness on Corporate Financial Perormance, Product Innovation Management,22:321, p. 5-7, 17.
Salimaki, M. (2004), International Design Business Management IDBM course,36
26D200, Helsinki School o Economics.
Hertenstein, J., Platt, B. and Veryzer, R. (2005), The Impact o Industrial Design37
Efectiveness on Corporate Financial Perormance, Product Innovation Management,
22:321, p. 18-19.
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http://195.157.47.227:8080/design-council/pd/TheValueODesignFactnder.pd, p. 11-17.
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An analysis o UK quoted companies 1994 -2003.
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Efectiveness on Corporate Financial Perormance, Product Innovation Management,
22:321, p. 5-7, 17.
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National Agency or Enterprise and Housing, Denmark (September 2003), The Economic49
Efects o Design, www.ebst.dk/le/1924/the_economic_efects_o_designn.pd, p. 3-4.
index < >
http://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdfhttp://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdfhttp://www.ebst.dk/file/1924/the_economic_effects_of_designn.pdfhttp://www.ebst.dk/file/1924/the_economic_effects_of_designn.pdfhttp://www.ebst.dk/file/1924/the_economic_effects_of_designn.pdfhttp://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdfhttp://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdfhttp://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdfhttp://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdfhttp://www.ebst.dk/file/1924/the_economic_effects_of_designn.pdfhttp://www.ebst.dk/file/1924/the_economic_effects_of_designn.pdfhttp://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdfhttp://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdfhttp://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdfhttp://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdfhttp://www.ebst.dk/file/1924/the_economic_effects_of_designn.pdfhttp://www.ebst.dk/file/1924/the_economic_effects_of_designn.pdfhttp://www.ebst.dk/file/1924/the_economic_effects_of_designn.pdfhttp://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdfhttp://195.157.47.227:8080/design-council/pdf/TheValueOfDesignFactfinder.pdf8/14/2019 BC PTC ID Report 2008
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redesigning our ootprint on earth, Core 77,
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index < >
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