By Thit Juul Madsen, presented at the 17th TCI Global Conference, Monterrey 2014.

1. Design for Clusters and Clusters for Design
Thit Juul Madsen
Parallel 3.2 Topics on New Cluster Trends
12 November 2014

2. D2i – Design to innovate
Design for Clusters and Clusters for Design
Thit Juul Madsen, head of secretariat
#TCI 2014, Monterrey

3. D2i – The Danish Design Cluster

4. The Region of Southern Denmark
Regional smart specialisation
D2i - Design to innovate
Design-Driven Innovation
Welfare Tech
Health- and Social Innovation
www.welfaretech.dk
www.d2i.dk
CLEAN
Sustainable energy
www.offshoreenergy.dk
Offshoreenergy.dk
Oil & Gas and Renewables
www.offshoreenergy.dk

5. A Design

6. To Design

7. Strategic Design
Surrounding
World
Unfocused Unrealistic
Strategic
Design
Resources Strategy
Irrelevant

8. D2i
/ As a design cluster
A formation of large and smaller companies
University, business and trade schools and
world class design school
/ An innovation programme
A large scale innovation programme
embedding design capabilities

9. Value Curve
RESEARCH & DEVELOPMENT
DESIGN
PROTOTYPING
PLANNING PRODUCTION
SALES
MARKETING
BRANDING
QUALITY
MANAGEMENT
INTERNAL LOGISTICS
MAINTENANCE
ETC. ASSEMBLY
LOGISTICS
ADDED VALUE
+ +
PRE-PRODUCTION TASKS PRODUCTION TASKS POST-PRODUCTION TASKS
The Future of Industry in Denmark - Stan Shih, Acer Group

10. The value of design
Design-Driven Companies outperfom S&P by 228% over
a 10 year period according to the DMI Design Value Index
Design Management Institute 2013
Profitability
16.0
12.0
8.0
4.0
0.0
A Swedish study of 300 companies over a 8 year period,
shows up to 50% better profits for companies that use design.
2006 2007 2008 2009 2010
No design use
Strategic Design use
Teknikföretagen 2011
There is a 22% difference in value between companies
using design as an integral part of innovation and
development processes, and companies that only use
design as styling and finish.
Erhvervs- og Byggestyrelsen 2008
The Design Council Design Index shows the design
aware companies has out-performed the FTSE 100 by
more than 200% over the past decade.
Design Council 2007

11. Why Design?
Optimisation and increased productivity is
important. But if we seriously want to
improve our competitiveness, it takes
more than adjustments and adaptation.
There is no way around strategic use of
design, because design connects a
profound understanding of the
surrounding world and the users with
product and business development.
Thit Juul, D2i

12. The right foundation
Companies
/ More than 300 SMEs (over 1.000 persons)
participating in:
/ Design introductions
/ Design Camps
/ Sustainability processes
/ Research projects
Other clusters
/ CLEAN
/ Welfare Tech
/ OffshoreEnergy.dk
Research & Education
/ University of Southern Denmark
/ Design School Kolding
/ University College South
/ Business Academy South
Funding & Captial
/ Region of Southern Denmark Growth
Forum
/ Bjert Invest
In the future also:
/ Interreg 5A
/ Horizon 2020
/ Creative Europe
/ COSME
Public
/ Region of Southern Denmark
/ Invest in Denmark
/ Danish Design and Architecture
Initiative
/ Municipality of Kolding
/ Municipality of Billund

13. The partners
behind D2i
/ LEGO Group
/ Bjert Invest
/ Dong Energy
/ Design School Kolding
/ University of Southern
Denmark
/ The Region of Southern
Denmark
/ Municipality of Kolding &
Billund
Companies
involved
SMEs with in
/ Production
/ Services
/ Sales
/ Consulting

14. Organisation
BOARD
SECRETARIAT
CLUSTER ORGANISATION
PROJECT
PARTNER A
PROJECT
PARTNER B
PROJECT
PARTNER C
PROJECT
PARTNER D

15. The services D2i offer
/ Design Updates
/ Design training programmes
/ Design workshops and seminars
/ Design consultations
/ Design Camps
/ Methods, tools and models
/ Research papers and reports

16. Top management
- on the strategic agenda
D2i - New Knowledge
Both internal
and external
designers
Internal
designers/
design
department
External
designers
engaged
No
designers
employed
Design is seen as
a possibility
No one
Technology
driven innovation
Supplyer
driven innovation
Market (user/customer)
driven innovation
Design driven innovation
(vision, market og technology)
5. Design capabilities
Design capabilities
originate from?
4. Innovation drivers
What drives the
innovation processes?
Strategy and
management
Innovation projects
Production processes
3. Engagement of users
How are users engaged?
Not important
No engagement
Product and service develop-ment,
including finish and styling
Marketing
User surveys and user feed-back
User observations
and focus groups
Users are engaged in
processes in the company
User communities
and lead users
D2i © 2014

17. D2i - New Competencies

18. D2I members

19. Companies Utilise Design
2010 2013
54%
46%
Companies that utilise design Companies that do not utilise design
68%
32%
The percentage of companies in the Region of Southern Denmark that utilise design has
risen from 54 per cent to 68 per cent from 2010 to 2013.
Source — The Region of Southern Denmark, 2014

20. Changing expectations
71
39
57
35
44
59
31
35
8
21
0 20 40 60 80
An increased turnover
More employees
Greater exports
To make new investments
To launch new products and services
Companies that utilise design Companies that do not utilise design
Companies in the Region of Southern Denmark who utilise design believe themselves to
perform better than companies that do not utilise design.
Source — The Region of Southern Denmark, 2014
Percentage of companies in the Region of Southern Denmark who expect:

21. CASE: ISOVER
Insulation materials
Used strategic design to:
/ Move from product sales to
project sales
/ Create new revenue streams on
services and consulting
/ Move up the value chain
ISOVER
Headquarter Vamdrup
Established 1935
Emloyees 205
Turnover (2012) EUR 46 mio.

22. CASE: EASYFOOD
Convenience foods
Used strategic design to:
/ Engage employees in product
development
/ Divide products into “collections”
/ Differentiate products on quality
and price
/ Reduced waste and increased
revenues
/ Increase local job creation
EASYFOOD
Headquarter Kolding
Established 2000
Emloyees 103
Turnover (2012) EUR 24 mio.

23. Curious about strategic design?
www.d2i.dk

24. Connecting the dots

25. What’s next for D2i?
/ D2i is moving into a new phase – Version 2.0
/ Developing from project to cluster organisation
/ The role of D2i is strategic planning and coordinating
with all the players in the design cluster
/ Establishing partnerships and securing funding

26. Tools to move forward

27. Internationalisation
/ We are interested in international
collaborations and co-operation
projects
/ More fruitful collaborations like
the current one with Glasgow
School of Art
/ In areas where design can make a
difference
/ To help foster innovation and
drive change

28. Thank you!
Get in touch
thit@d2i.dk
www.d2i.dk