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What do we imagine when we hear the word "design"?
I'm sure many people imagine "drawing'' or designing the visuals of some kind of product.
Of course, visual design is important for users, but with the development of IT technology and the popularization of various products, it is no longer possible to establish a business simply by selling superior products.
This is why "business design,'' which involves designing the entire business, has started to attract attention. In today's society, where high-quality products and services are commonplace, it is important to be able to offer original value compared to competitors . Business design is becoming an essential element in modern management.
So this time, what exactly is business design, which has been attracting attention in recent years? We will explain its overview, how it came to be noticed, the design methods, and introduce examples of its use in actual companies. Please watch till the end!
In my journey through the dynamic world of design, I've come to realize that the term "design" extends far beyond the realm of aesthetics and artistry typically associated with it. Originating from the Latin "Designare," meaning "representing a plan in a symbol," design transcends mere visual appeal. It's about conveying a message, simplifying comprehension, and expressing intent. This revelation led me to explore the concept of "Business Design," a term I often pondered over when considering, "What is Business Design?"
Business design, as I've learned, is more than a buzzword. It's a revolutionary management concept that intertwines the art of "Designing Management." It's about crafting systems that foster new business creation. In my role in system development, app development, and digital transformation, I've seen firsthand how business design can be the cornerstone of innovation. It's about shaping companies from the ground up, from design to execution, birthing new social values.
The rise of business design reflects the challenges in addressing the rapidly diversifying needs of customers through traditional methods. In my analyses, the shift towards human-centered design, distinct competitive differentiation, and a balanced focus on market and user value has been unmistakable.
Business design, in essence, is the bridge that connects and enhances "Market Value" and "Customer Experience." In my experience, the success of a product or service hinges on these elements. As someone deeply involved in the field, I've observed that without a strong foundation in business design, achieving a sustainable competitive edge becomes increasingly challenging.
In the 2000s, with the rapid spread of the Internet, companies and users began to interact directly through products such as smartphones and software such as applications. Customer values have shifted from "things" to "experiences," and design has also changed along with it .
Additionally, with the spread of smartphones, the importance of UI design and UX design has increased, and we have established ourselves in that position. At the same time, online shopping has become widespread, and in today's society where you can purchase anything you want with a tap on a screen, users' needs have become more complex and have become latent things that even users themselves are unaware of.
For this reason, many companies have begun to incorporate human-centered design thinking as a priority in their business strategies in order to uncover latent needs.
Among these, the concept of "Business Design,'' which integrates business strategy and design thinking, has influenced many business people since the early 2000s. The proponents of this concept are Roger Martin, an American design thinking expert, and Tim Brown, CEO of IDEO, a global design consulting company. is.
In 2009, Roger Martin published the book The Design of Business: Why Design Thinking is the Next Competitive Advantage. In this book, he developed the concept of business design as "strategic thinking based on design thinking,'' and proposed that integrating business strategy and design thinking would provide an advantage in next-generation competition . In addition, Tim Brown and Roger Martin jointly published a book on management design, which continues to bring business design to many people today.
This concept of business design has been developed by many companies and research, and has become pervasive as an innovation in organizations and an important management strategy.
Business design, business thinking, and design thinking are similar words that are easily mixed together and are often compared, so I would like to summarize the characteristics of each.
・Business design
Business design involves designing the entire business model using the method of design thinking (an approach to solving business issues from the customer's perspective). We design sustainable business models that provide new value and realize innovation through a user-centered approach .
・Business thinking
Business thinking is an approach centered on profitability and rationality from an economic perspective . Rather than a user-centered approach, our strategies focus on economic aspects, such as sales and market analysis and the design of revenue models, with the goal of maximizing profits.
・Design thinking
Design thinking is a way of thinking that focuses on user needs and develops solutions with an emphasis on the product or function itself We create products from a user-centered perspective using the processes that designers use when designing (empathy, definition, conceptualization, prototyping, testing), and after testing hypotheses, we understand business needs such as user needs and user issues. We will solve the problems.
Business design aims to validate ideas and reduce risk before launching or starting full development. The general flow of the business design analysis process is as follows.
Research
"Why" What expectations do customers have?
Why do we do this? Why does this project exist?
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Verification
“How” What kind of service will we provide and
what approach will we take to meet expectations?
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Prototype
“What”: What functions and uses are necessary for this purpose,
how will we be compensated, and what will we sell?
In this way, by repeatedly testing hypotheses through research, verification, and prototyping, you can develop unbiased ideas, reduce risks, and create new services and business models. Also, in business design, both subjective and objective perspectives are important.
・Subjective = Close to the user's feelings
What can become a business opportunity is the needs of a product or service, so it is very important to consider the feelings of users.
・Objective = Analyze market needs objectively
Analyze the value that products and services create and determine how they will generate revenue. We also clarify things like comparing data, researching competitors and trends, and the time and costs required for the business, and consider the feasibility and reality of success.
Regarding design management, the "Design Management" Declaration reported by the Japan Patent Office in May 2018 explains as follows.
is a management method that utilizes the power of design to build brands and create innovation. The essence of this is to discover fundamental issues by thinking centered on people (users), and create solutions that are unconstrained by conventional ideas and yet are achievable through flexible repetition and repeated improvement. (Source: Japan Patent Office )
In other words, it is a management method that puts the user first and utilizes design as a method to increase corporate value. Regarding this, many major companies such as Apple, Dyson, IBM, and Mercari have placed design as important in their management, and results have shown that companies that have actually worked on it have improved their business performance.
In traditional management, products have been developed with the aim of satisfying the world's technology and major needs. However, as technology and things in the world have developed, needs have become more complex, hidden, and difficult to see . As a result, companies' performance has slowed, and they have had to revise new business models .
Design management uses a method of thinking from the customer's perspective and developing new value and products. Therefore, the viewpoint of designers who think from the customer's perspective has attracted attention, and it has begun to be incorporated into management. Improving brand power and innovation through management design brings good results to both "customer satisfaction" and "Profits," and it is now said that design and management are inseparable .
In recent years, "business designers" have been attracting attention as important human resources for promoting DX. In 2019, the Information-technology Promotion Agency (hereinafter referred to as IPA) released research materials on DX human resources that appeared as a job type responsible for DX promotion. In DX, which requires quick business startup and personnel with specialized knowledge, business designers have an important role in building the preparations, processes, and environment for business success . Introducing what skills a business designer needs.
・Planning/planning ability
You must have the ability to plan and propose ideas, decide what to do and what not to do, and develop a concrete plan for how to grow and promote the business to its goals. Adjustments may occur frequently, so it is necessary to respond quickly and flexibly.
・Business coaching ability
We can use the good and failed experiences we have gained in the past as weapons and provide advice as know-how. Consultants who focus on planning do not often get involved in the process of actually implementing the plan, but business designers have the advantage of being involved in the field and can utilize their coaching skills.
・Facilitation ability
You must have the ability to organize a team, create an atmosphere of mutual cooperation and exchange of opinions, and lead the team in a unified direction while listening to everyone's opinions.
In this way, business designers are required to have abilities in multiple fields. They take a bird's-eye view of the project they are involved in, investigate whether it matches the market and customer needs, and incorporate their ideas into the plan.
From what I have read so far, I think you have come to understand that business design has a great deal to do with management, and its importance is increasing year by year. By understanding that not only designers but also other employees design the business and understanding the company's design, all employees can manage the organization while looking in the same direction . To this end, it is essential to understand the benefits of incorporating business design.
・Creating innovation
Results show that companies that closely integrate design and management are more profitable and successful. Pursuing customer experience will lead to new innovations, and customer-centric management will be advantageous in terms of business.
・Easy to grasp the essence of business
You can formulate a convincing business model, including who should give value and how, what should be prioritized, and what the costs will be. This allows us to build a sense of team unity, trust and good relationships with our clients.
・Improve competitiveness and profitability through a customer-centric approach
Nowadays, it is said that it is difficult to generate profits by simply pursuing market value, and business design is a strategy that constantly pursues customer requirements as well as market value, so we always move forward with a customer-centered approach. This allows all members to work flexibly with an awareness of both market value and customer satisfaction.
In modern society filled with a variety of things, business design, which is the art of designing management, has become an essential concept for discovering latent needs and providing valuable products and services to customers.
In today's society, where market competition in each industry is intensifying, developing products and services that appeal to the target market requires business design, which involves designing the entire business, allowing you to create unique value compared to your competitors.
At JIITAK, we do not focus on solutions first, but rather grasp the essence of the problem and think from the user's perspective, and work on projects as one team with our customers. If you have any problems with product development or business development, please feel free to contact JIITAK!
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