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Article Reprint
Structuring Strategic
Design Management:
Michael Porter’s
Value Chain
Brigitte Borja de Mozota, Maître de Conférences, Université René
Descartes
Copyright © Spring 1998 by the Design Management Institute. All rights reserved.
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Reprint #9892BOR26
D ESIGN
M ANAGEMENT
JOURNAL
VOL. 9, NO. 2 SPRING 1998
Design Management Education: Bridges Between Practice and the Academy JNL-V9N2
KEYNOTE ARTICLE
Education as Salad Bar 9892WAL10
David Walker, Harrow Business School, University of Westminster
DEGREE PROGRAMS
The Design Management Program (DMP) at Pratt Institute 9892AND32
Robert Anders, Professor, Design Management Program, Pratt Institute
CORPORATE EDUCATION
Research in the Business of Design: Denmark’s Center for Design and Business 9892KRI49
Development
Tore Kristensen, Ph.D., Director, Center for Design and Business Development
TEACHING PROPOSALS
Design Education: Out of the Closet and Back into the Curriculum 9892BLA59
Richard S. Blackburn, Associate Professor of Management, Kenan-Flagler Business School
Barry L. Bayus, Professor of Marketing, Kenan-Flagler Business School
Structuring Strategic
Design Management:
Michael Porter’s
Value Chain
Firm infrastructure
SUPPORT
and responsibility for carrying out each design task such information and in its diffusion during the
and for dealing with variations in performance strategy implementation process.
should be clearly set out. Operational information This information, when formalized, is shaped
is thus necessary for the everyday mechanical func- into documents—product brochures, annual re-
tioning of the design department and for most ports and journals, brochures, and the like—by the
effectively differentiating the company’s products design department. This is a task that goes beyond
from those of its competitors. This information can the simple production of documents. Most design
be broken down into three types: departments, for instance, do not think of graphic
• Information to control all design tasks— quality in terms of information flow except in terms
methods associated with the creative process of, say, coordinating the graphic identity manual.
(internal flow). Improving the efficiency of the corporate identity
• Information needed by the design function to manual, however, would be thinking in terms of
perform departmental tasks—information on document processing and of the efficiency of inter-
quality, marketing, production, R&D, corporate nal information flows.
communications, strategic goals, audits, and Such documents come from decisions made
market research. after an elaborate analysis of the results of question-
• Information concerning general business activ- naires, surveys of clients, and customer claims.
ity; customer orders, invoicing and financial Designers are affected by documents that generate
systems— information coming from financing design projects—customer surveys, image audits—
and investment policies. and they should integrate design policy into the
questions asked and information gathered in order
SUPPORT INFORMATION SYSTEM:
to help in the consensus-building process during
INFLUENTIAL DMIS
new product development.
Information for support activities is developed in The marketing and communications depart-
order to influence organizational behavior; in fact, ments also receive valuable information through
that is what keeps the organization together. Design customer claims and sales reports. What part should
management is a primary actor in the production of design management take in the organization of
The URGA Motorcycle: A Case Study strategy after seeing the URGA bike. Until then, they had
Design students are like entrepreneurs: They generate new directed their LED efforts toward automobile distributors;
market visions through their projects. Take, for example, the after learning of the URGA concept, they began to directly
URGA motorcycle, which was conceived by a team from the contact design studios for developing LED sales rather than
Institut Supérieur de Design in Valenciennes, France, and rely on automobile distributors only. As Tamisier said, “What
headed by Philippe Tamisier. Starting from the paradox that is important is the sociological watch that enables concept
market sales in motorcycles are stable, whereas the demand transfer from other universes. The URGA concept of practical
for motorcycles is high, Tamisier changed the whole vision of and fun already exists in the automobile industry.”
the market. He revolutionized the architecture
of the product, starting with the idea that the
bike should be conceived as if it were a global
system of transportation and pleasure encom-
passing the bike itself, its user, and its security,
as well as outfit, helmet, and luggage. The
URGA cycle offered space for luggage, helmet,
and outfit where other motorcycles store gas:
The rider could store his or her riding outfit
and helmet rather than carry them
into the office.
Developing this prototype and product form
stimulated innovations in multiple links of the
value-chain system. For instance, the strategy of
the luggage specialist, who had difficulty seeing
the value in hidden luggage, was threatened by
such a concept. Meanwhile, management at
Hewlett Packard, which was developing LED
sales for the automobile market, changed their
these documents? Or on the diffusion of market transform sociological changes into ideas and design
information? The information captured in these knowledge, reinforces design as a competitive
documents is potentially crucial for excellence in advantage. Some design firms specialize in this ac-
design management. tivity, often issuing “trends” documents. Design
The information flowing during committee and schools and design competitions that attract young
other internal meetings is also influential informa- designers play an important role in this kind of
tion. These meetings are important for strategy strategic thinking.
formulation and for cohesion of personnel. Many
one-to-one meetings, in fact, lead to decisions from Conclusion
which action flows. Many meetings and documents, Michael Porter’s value chain offers a useful
as well, take place partly to rationalize decisions that framework for synthesizing research on design
have already been made. Designers have a place in management and structuring design management
this symbolic, but necessary, legitimizing of admin- knowledge. Design managers and those who want
istrative action through information design. to promote design as a critical component of
Innovative organizations know the importance of corporate strategy will do well to study the value-
generating innovative ideas. These ideas come from chain model. l (Reprint #9892BOR26)
marketing, R&D, and design, but also from any
person in the firm—if he or she is encouraged to
offer them. Incorporating the necessity to be in- Suggested Readings
formed of all ideas can be a good way to develop Porter, Michael E. Competitive Advantage—Creating
design integration and to stimulate the consensus and Sustaining Superior Performance. New York: The
process that has to take place around any idea. Free Press/MacMillan, 1985.
ANTICIPATIVE INFORMATION SYSTEM FOR DMIS
Borja de Mozota, Brigitte. “Challenge of Design
In order to analyze its business context, competition, Relationships: The Converging Paradigm.” In
and technology and to understand its global envi- Management of Design Alliances, eds. Margaret Bruce
ronment, an organization refers to databases, jour- and Birgit H. Jevnaker. New York: John Wiley &
nalistic and expert sources, and specific studies—all Sons, 1998.
fundamental for prospective and strategic decisions.
Organizing a “technological watch” and doing A classification of published research on design
strategic scanning in order to see in advance certain management under Porter’s three-level system, as
changes in a company’s environment is basic for well as basic concepts for marketing and strategic
strategic diagnosis—especially where information on research, can be obtained from the author at the
competitors, patents, and technologies is concerned. address below.
Design managers need this information to
nurture the creative process for advanced concept Brigitte Borja de Mozota
design. These concepts can also valorize design Maître de Conférences
through publicity in the specialized press and trade Université René Descartes Paris 5
fairs. Look, for example, at the automobile industry. 48 rue Michel Ange
Environmental scanning is a key issue for strat- Paris, 75016
egy. It is also key for strategic design management. FRANCE
Being able to classify design trends, to anticipate and