How design helps to build sustainable competitive advantage in the ever increasing competitive industry

1. Which company is more valuable?
Why?

2. as a Competitive Advantage
Parag Deshpande

3. Design = Science + Art
W H A T I S
DESIGN
Design = Logic + Creativity
Design is the creation of a plan or convention for the construction of an object,
system or measurable human interaction

4. Science
Logic
Art
Creativity

5. Design drives the customer experience
• Roadmap to holistic, collaborative implementation
• Emotional expression of the creative idea
• Rational delivery of action and implementation
• Consideration of the cost to manufacture, deliver, support, and repair
Good design is an elegant solution and crucial for
humanization of technology

6. 3/7/2017
Redesign concept by IDEO

7. Great Products
• Should fulfill a need
• Aesthetically pleasing
• Provide appropriate/responsive
feedback
• Anticipate problems
Great Designer
• An empathetic problem solver
• Connects with their audience
• Uses a combination of old and new
techniques
• Makes something better
It is absolutely essential to apply design thinking to your
product or service.

8. Design and Willingness to Pay
Willingness
to supply
Cost
Price
Willingness
to pay
Willingness
to supply
Cost
Price
Willingness
to pay

9. Threat of New Entrants
Rivalry among Competitors
Threat of Substitutes
Power of BuyersPower of Suppliers
Moderate to High
Lesser design focused companies
Competitors fail to imitate
Low threat of entrants
Resource intensive
High capital
Product differentiation
Low to moderate power of buyers
WTP for design oriented
companies
No ability for backward integration
Low threat
High brand loyalty
ROI is high
Low supplier power
Different options for suppliers
Difficult to forward integrate the
process
Design Advantage and Five Forces

10. Design as a Sustained Competitive Advantage
Resources /
Capabilities
Valuable Rare Costly to
Imitate
Non-
Substitutable
Designers
Design Thinking
Design Culture
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

11. Acquisitions of Design Agencies
~ TechCrunch
~ PR Newswire
~ Economic Times
~ Wall Street Journal

12. Numbers Speak

13. References:
• http://www.dmi.org/?page=2015DVIandOTW
• https://www.forbes.com/sites/kellyreid/2012/10/31/for-startups-design-is-the-new-competitive-advantage-
2/#64c4193c5419
• http://www.cmo.com/features/articles/2015/7/31/design-as-a-competitive-advantagethe-creatives-point-of-view-part-
i.html#gs.bSFKbZE
• http://www.canadianbusiness.com/innovation/why-design-matters/
• http://venturebeat.com/2011/10/05/design-is-becoming-a-competitive-advantage-for-startups/
• https://www.fastcompany.com/1628107/why-design-thinking-next-competitive-advantage
• https://www.ideo.com/us/post/reimagining-the-shopping-cart
• https://en.wikipedia.org/wiki/Design