3. Introduction
The growth problem that Australian manufacturing is facing is well known and documented1. Industry needs the capability and mindset to approach the problem
in a different way. Design led innovation is a model that will enable the industry to innovate differently – a model that shows evidence of success both locally and
globally2,3.
As part of the UTS META Design Thinking for Manufacturing Competitiveness hub, a Roundtable was organised on the 25th November 2014 to consider how
design led innovation can be scaled to enhance competitiveness, performance and profitability of manufacturers. The Roundtable brought together executives of
manufacturing enterprises from around Australia who are currently implementing design led innovation practices to enhance their businesses as well as others
having expertise in design and participating in manufacturing industry innovation practices.
The goal was not to focus on what is design led innovation but to explore how to build upon and scale the successes of the industry champions and their
journeys across the sector. Design led innovation has been successfully piloted across many programs within Australia. With these learnings from the
manufacturers themselves, the next step is to focus on how to scale this approach, and this roundtable was the first step in exploring how this could be achieved.
This roundtable sought to provide an industry voice on how to increase the numbers of Australian manufacturers successfully gaining a competitive edge from
adopting design led innovation practices.
It was a formal meeting with industry representatives asked and even challenged to consider and develop clarity on how to scale design led innovation.
4. Approach
Individual priorities
Theme identification using affinity mapping
Individual weighted prioritisation
Call to action
Calculation of group priorities
Introducing DLI
Advancing DLI within
10 representatives from 8 manufacturing Organisations
9 representatives from: Academia, Industry Associations, Interested Parties
What are the three most important
things that we must do to advance
Design Led Innovation in
manufacturing?
Broader Industry uptake
Design led innovation (DLI) is a method
of working based on commonly used
design principles used for product and
industrial design but applied to the entire
organisation and its business model. This
broad-systems approach allows firms
to rethink and grow their businesses by
transforming how they provide value to
customers consistently better than their
competitors. The approach is appropriate in
today’s economic climate, where Australia
has shifted from a low cost to a high cost
nation and is being buffeted by globalisation
headwinds. This shift has required firms
to develop new management capabilities
and a mindset that requires them to rethink
their competitive strategy, collaboration
opportunities, and markets they enter. A
more comprehensive understanding of
customer needs is also essential. By
adopting Design Led Innovation, firms
develop superior strategic capabilities
across all business functions, which enable
them to grow and lead in the markets they
enter.
The workshop reinforced the findings of
the recent research by Bucolo and King
in their report “Design for Manufacturing
Competitiveness”.
10 representatives from 8 manufacturing organisations
9 representatives from: academia, industry associations, interested parties
A.
B.
C.
December 2014 Industry Recommendations - Design Thinking for Export Competitiveness Page 4
5. Summary of Roundtable Discussion
The discussion generated in the Roundtable included the following three areas regarding the implementation and adoption of design led innovation: introducing design led innovation, essential actions and raising awareness,
advancing design led innovation within the business and the broader adoption of design led innovation by the sector.
The first step that was suggested for introducing DLI
into an organisation was to begin with an audit of the
company in order to identify holes. In particular, it was
recommended to focus on core purpose of the business
to determine whether they are actually providing value for
customers. It was also recommended to build in-house
capability by appointing a design champion and compiling
a toolbox of problem-solving techniques. Further
emphasised was the necessity to look holistically at the
application of DLI across the entire organisation, not just
at the product-level. It was suggested to act with urgency
now, but allow time for DLI to take effect. To validate the
process in the meantime, it was suggested to access
results of the successful outcomes of other companies.
To further advance DLI within their own businesses, the
champions emphasised the importance of persisting with
new mindsets – everyone in the company should embrace
having clarity of purpose, being persistent, and allowing a
prototyping mindset. There should be a vision and reason
forchange–thecompanyneedstobebrutallyhonestabout
the current state to make a case for change. To reinforce
thebenefitsofchange,itissuggestedtoaimforsomequick
short-term wins. Importantly, both the present business
and new ventures should be managed simultaneously.
To promote the wider uptake of DLI in the manufacturing
sector in general, several recommendations should be
implemented. It is recommended to look outwards as
the identification of new areas of demand creates new
opportunities. Education at all levels is seen as important
for making DLI more widely known and accepted as a
legitimate business tool. This can be achieved through
“TraintheTrainer”programsaimedatbusinessconsultants
and advisors, as well as through formal education as part
of university, TAFE, and schooling. It is also important
to provide a consistent message – a common ‘brand’
for DLI activities in business that is recognised and
understood nationally. Furthermore, the champions
strongly endorsed the idea of creating an infrastructure
to enable them to act as champions and mentors.
The typical triggers for a design led change to traditional business practices from all those in the room revolved around the presence of a crisis situation. A situation where it was understood by management that change was
needed in order to survive - this included a realisation that you cannot get bigger or more profitable by doing the same thing. Other identified motivators included:
It was felt that the main obstacle to the creation of a design led organisation was a lack of understanding around the creative, intangible assets of design. Identified sceptics included those within the whole supply chain – making
it difficult to work holistically with them - as well as staff within. Having a better narrative with plain, accessible language would make design led innovation more credible to others involved. Being able to communicate meaningful
metrics of intangible assets, and also link these to traditional business performance metrics such as sales and profit would also help.
• Needing next generation growth, the changing of the guard in family businesses
• Feeling blocked around scaling the business – not knowing how to grow
• Feeling frustrated with little progress and reward for effort, even when working hard and doing their best
It was felt that companies in this situation would be additionally motivated through the visibility of stories of other companies that show how DLI could assist them in imagining a better way and create new opportunities that
come from doing things differently.
Triggers and Motivation
Obstacles and Blockers
Introducing DLI:
EssentialsA. Advancing DLI within
the BusinessB. Broader Adoption of DLI by
the SectorC.
6. page 6February 2014 Design for Manufacturing Competitiveness
Industry Call to Action
Industry-Backed and
Targeted Promotion of
DLI
After reflecting upon the issues raised in the group discussion, the champions were each asked to indicate three salient priorities for increasing the number of Australian manufacturers using Design Led Innovation practices to
compete successfully.
The points under each recommendation are individual priorities identified by each participant in the Roundtable - they have deliberately not been summarised. The high level recommendations - in order of determined priority
by the group - form the basis of how the industry envisages the advancement, adoption and scale of Design Led Innovation summarised in the conclusion. They also outline who needs to act.
• Promote design led innovation success
stories
• Industry bodies promote design led
innovation
• Promote through business associations
• Promote as a tool to help firms stay in
touch with fast moving markets and
innovation
• Promotion of design led innovation as a
means of new benefits, growth
• Engage with leaders of companies
• Assistance to promote what we do and
expose our businesses.
• Promote through media, publications,
TV current affairs, Awards
• Enable communication through a
crisp, clear description of design led
innovation, a common language
• Common language, brand and metrics
as a prerequisite for promotion
• Use past users as champions to
promote case studies
• Create a solid simple manifesto
• Make design led innovation ‘visual’
in the workplace
• Common language (jargon) and
branding
• Common language and metrics
• A crisp, clear description of design
led innovation; common language
as enabler of communication
• Leverage existing Government
programs to include design led
innovation
• Leverage Government grants
for approval and funding
• Government funds, networks,
programs and Awards
• Common industry, education
and Government design led
innovation Strategy
• Establish leadership to develop
a co-ordinated approach -
industry led and government
supported with community
involvement.
• Educate through design led
innovation as business module
• Teach philosophy
• Get into formal education
system
• Develop design led innovation
in appropriate areas of
education system
• Accredited training
• Design led innovation
education at all levels: school,
higher education, business
• Build up design led innovation
expertise in delivery,
transformation of companies;
build design led innovation
mindset and capabilities from
workers to Board
• Make design led innovation
training available to businesses
Communicate DLI
clearly
Engage with
Government on DLI
Business training in
DLI and Integrate into
Education System
1. 2. 3. 4.
December 2014 Industry Recommendations - Design Thinking for Export Competitiveness Page 6
7. page 7February 2014 Design for Manufacturing Competitiveness
Mentoring and Peer
Support
Leading and Managing
Design Led Innovation
• Make it mainstream
• Get acceptance from ‘old school’
thinkers, advisers, leaders
• Draw lessons from introduction of
lean manufacturing
• Make it more easily implemented
as an organisational system and
process
• Make design led innovation
training available to businesses
• Use professional bodies,
accreditation, conferences, Train
and Trainer programs
• Needs everyone in company
involved
• Communicate clear purpose to
entire business
• Inculcate love in daily activity,
work
• Get everyone on board and
influence constructive mindsets
• Abandon growth, focus on quality
• CEO Groups and internal
disruptor groups
• Mentoring to sustain design led
innovation in business
• Peer business support groups.
• Use past users as champions to
promote case studies
• Pre-qualified design led
innovation mentors and auditors
• Must be willing to re-evaluate
everything
• Strong demonstrable commitment
from top management
• A sense of urgency but taking the
time to get strategy, direction right
• Relate it squarely to profitable
service and product outcomes
All eight high level priority actions are important by definition. The key difference between high priority and lower priority items seems to be a reflection of narrower, more specific actions being
lower priority. In some cases they are specific examples of the ‘how’ relating to achieving the high scoring items.
When acting upon the recommendations above, it is important to be aware of the possible connections between items; for example, while clear communication is rated second (#2), it is clearly
a prerequisite to enable the achievement of both promotion (#1) and education (#3).
Whilst priority actions have been identified it seems fundamental that an integrated approach to building an ecosystem to support the adoption of Design Led Innovation (incorporating aspects
of all issues identified) would have increased prospect of success.
Create Mainstream
Acceptance
Get All Involved and
Get Organisational
Alignment
5. 6. 7. 8.
December 2014 Industry Recommendations - Design Thinking for Export Competitiveness Page 7
8. page 8February 2014 Design for Manufacturing Competitiveness
Consistent branding and terminology
Conclusion
The urgency for a common and easily understood
language is key. Terminology used must make
sense to business and industry - short, simple and
compelling. Credibility can be built through links to
the achievement of profitable product and service
outcomes. It is important to continue the research
and build the evidence base for DLI as driving
strong business performance, using metrics to
make the case. This will drive the required change
in mindset within the manufacturing industry –
from the Board down and from the shopfloor
up. It is also vital to emphasise public promotion
through case studies and success stories in order
to shift community and government perception to
a more positive view of Australian manufacturing
and hence, the allocation of resources. Support
from academia in this research and also access
to mainstream media to promote DLI will assist
this need.
Education
It is also recommended to employ the development
of toolkits of DLI techniques to enable self-directed
learning by manufacturing firms with back-up support
services. This will help all levels of the manufacturing
workforce and management learn and apply design
thinking practices on the job - facilitating learning
by doing. Other education choices should include
intensive applied learning programs aimed at
CEOs, introductory programs, DLI for engineers
or marketers and other functional specialists, on-
demand modules, and refresher and extension
courses. It must be timely and practically applied not
just awareness and information.
Mentoring program and the
establishment of a community of
practice
The communication, education, and mentoring in
DLI should be further supported by the development
of a strong DLI ‘community of practice’ among
manufacturers. This will create a within-industry
infrastructure that enables the members a place
to facilitate knowledge flow, transfer of tacit
knowledge, antidote to isolation, access to sources
of case studies and war stories, joint problem-solving
opportunities, a vehicle for business performance
monitoring and metrics, and a point of contact for
greater public awareness of DLI and its ability to
transform Australian manufacturing.
This document presents industry’s voice and their desire and strategy to scale DLI to grow the
Australian advanced manufacturing sector. This will need co-ordination and integration across the
innovation eco-system and leadership from the sector. Through the Australian Design Integration
Network (ADIN), the views of industry will be taken forward and lessons captured and reported
back to the sectors and stakeholders.
The overarching challenge and priority identified by industry for how to scale DLI, is to make DLI and design thinking practices a mainstream
integrated approach; rather than a fringe or self-serving specialist initiative. This includes the many existing approaches to transforming advanced
manufacturing firms and innovation programs provided by the government. Current government programs and grants would benefit from being
leveraged to create a mainstream approach. We believe this can be activated by positioning DLI as a general purpose technique for high performance
manufacturing. This integrated approach would include the following priorities:
December 2014 Industry Recommendations - Design Thinking for Export Competitiveness Page 8
To be used and the outcomes it delivers to be
developed.DLIisfirstandforemostamanagement
capability which will enable other transformation
activities to be achieved and mindsets to be
developed.
Investment is needed in ‘Train the Trainer’
programs and education for the businesses
themselves, accredited business consultants,
industry and professional associations.
The mentoring and peer support programs from
‘experienced hands’ for those new to DLI should
be reinforced, encouraging shared learning by
interacting with others.
9. page 9February 2014 Design for Manufacturing Competitiveness
Enable and support design led innovation and design thinking practices within
Australian advanced manufacturing as a mainstream integrated approach through:
• Leveraging existing government programmes
• Developing a common and easily understood terminology when referring to
Design Led Innovation within the industry, mainstream media and academia.
• Investing in Design Led Innovation Education across all levels and all
professions, including the accreditation of consultant practitioners
• Providing the infrastructure and support for mentoring programs and the
establishment of a community of practice
Industry Recommendations
December 2014 Industry Recommendations - Design Thinking for Export Competitiveness Page 9