Wednesday, February 17, 2010

Best of Business Week in Design, Marketing and Innovation.

SPECIAL REPORT February 1, 2010, 5:01PM ESTtext size: TT

The Value of Design

The catalyst for this report on the value of design in business was the outpouring of reader comments that arrived after a bad-tempered blog post

Back in December, I published a somewhat bad-tempered blog post. Titled "Come on Designers. Step Up", the piece was prompted by an article in The Times of London, in which designers and the design industry were hauled over the coals for, essentially, being a waste of taxpayers' money. In this instance, designers had created a new logo for the British National Health Service that nondesigners quoted in the piece (including British MP Greg Hands) deemed both unnecessary and expensive.

As I wrote at the time, the thesis of the Times piece was unoriginal and superficial—yet all too familiar. My irritation stemmed from the fact that the value of design is clearly still not understood in the marketplace at large. And, I argued, the responsibility for this disconnect—and fixing it—lies with designers. "Designers need to step up and fight back and prove their craft is not a 20th century anachronism," I wrote.

The response was swift, spirited, and fell mainly into two camps. Some thought I was being deliberately incendiary and borderline irresponsible; others agreed that perhaps the design industry has an issue. Many quite rightly pointed out that "design" is a much larger proposition than the graphic design of this particular rebranding exercise, while there were numerous lively and articulate defenses of design as a process, not a style or an artifact. Companies such as Apple(AAPL), Procter & Gamble (PG) and BMW (BMW:GR) were cited as corporate leaders that clearly understand the worth of good design.

This special report attempts to pick apart the issue a little further, with opinion pieces on the value of design from those within and outside the profession. IDEO partner Diego Rodriguez makes the case that good business arises from a design-centric process that incorporates marketing, research, and ideas. RKS Design's Ravi Sawhney and Deepa Prahalad outline four specific areas in which design can create value: understanding the consumer; mitigating risk; boosting marketing and branding; and driving sustainable business practices.

Angel investor Dave McClure is heavily involved in the Silicon Valley community of consumer Internet companies and technology-driven startups. He writes a spirited argument in which he makes the case that design and marketing are, in fact, way more important than engineeringfor the firms with which he works. And Dr. Jay Parkinson, a pediatrician and preventive medicine specialist, outlines the role that design (and disruptive innovation) can play in retooling the U.S. health-care system.

Finally, we put together a list of the 27 most influential designers and design thinkers making an impact on business today. Featuring the likes of Apple's industrial design guru Jonathan Ive and British service design specialist Hilary Cottam, our slide show aims to shine a light on the breadth and scope of the profession as well as to highlight those whose work is influencing global business and policy.

Clearly this is just another chapter in an ongoing discussion, but I hope you find the report useful. Let us know what you think.

Helen Walters is the editor of Innovation and Design at Bloomberg BusinessWeek .

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Podcast: Building Brands You Can Trust

Picking the Winners Methodology

Toyota Announces reforms to get back in track: Are they going to be able to do it? Sources: AdAge & Jaffe Juice TV

Toyota President Announces Reforms to Get Back on Track

Car Maker Will Appoint Chief Quality Officers, Rely More on Onboard Data Event Recorders

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TOKYO (AdAge.com) -- Conceding that breakneck expansion led to Toyota Motor Corp.'s recall crisis, company President Akio Toyoda outlined reforms meant to get quality back on track, including more active use of the car's so-called black box crash data recorder, Automotive News reports today.

Akio Toyoda
Toyota
Akio Toyoda
Mr. Toyoda, grandson of the car maker's founder, also indicated he won't sit before congressional hearings into the quality lapses that have triggered recalls of more than 8.5 million vehicles since last fall. Yoshimi Inaba, the head of Toyota's U.S. operations, is best suited to testify before the lawmakers because he is most familiar with the local U.S. market, Mr. Toyoda said.

"Mr. Inaba and our executives in North America have my highest level of trust, and I am sure they are well equipped to respond," Mr. Toyoda, 53, said at a news conference today. "I will focus on internal reform to improve quality and support Inaba from our headquarters." Mr. Toyoda said that he still plans to visit the U.S. to rally workers, dealers and suppliers. The details and timing of the trip are still being worked out, he said.

Mr. Toyoda is under pressure to visit the U.S., historically Toyota's most-profitable market, in the wake of a recall emergency that began there last fall and has snowballed to a global level. Among the recalls were two massive actions to address unintended acceleration in Toyota and Lexus cars and another to fix an antilock braking glitch in the Prius.

Mr. Inaba is to testify Feb. 24 before the House Oversight Committee. The hearing comes amid a fresh investigation by the National Highway Traffic Safety Administration into whether Toyota acted too slowly in announcing its recalls or if it failed to include enough vehicles.

A congressional Republican spokesman said today that the House Oversight Committee will ask "all the right questions" of Toyota.

"I would think given the tremendous scrutiny Mr. Toyoda and his company are under, he would have seized the opportunity to personally appear and use the hearing as a forum to move forward," Kurt Bardella, spokesman for U.S. Rep. Darrell Issa, R-Calif., the ranking member of the House Oversight Committee, said in an e-mail.

"Obviously, Mr. Toyoda is not as eager to give Congress and the American people answers as we first thought. It's telling that the only way he'll come before the Oversight Committee is by formal invitation."

In Tokyo, Toyoda outlined several new measures meant to improve quality. The automaker will:

  • Appoint a chief quality officer for each geographic region.
  • Expand the network of local technical offices to conduct on-site troubleshooting.
  • Install brake-override systems on all future models worldwide.
  • Make better use of the onboard data event recorders to analyze accidents.

The overhaul builds on more general improvements outlined by Mr. Toyoda earlier this month. Mr. Toyoda said he would chair a newly created Special Committee for Global Quality.

The regional chief quality officers will sit on that committee and be responsible for rounding up customer feedback so the company can react more quickly when problems arise.

The global committee will hold its first meeting March 30. Toyota will also equip all models worldwide with a brake-override system that will cut power to the engine if there is a conflicting signal between the gas pedal and brake. It had already announced that all new cars in North America would be getting the technology.

Finally, Toyota said it will more actively use the data collected in vehicle event data recorders. These devices are similar to the black boxes on aircraft and record information, such as vehicle and engine speed, in the seconds immediately before a crash. "By reading the data, we will be able to identify causes more quickly," Shinichi Sasaki, exec VP in charge of quality, said at the press conference. "I think this will result in substantial improvement in our analytical capability."

Mr. Toyoda said setting up new technical offices, beginning with the U.S., will enable field engineers to assess customer complaints quickly and nip problems in the bud. The goal is to be able to conduct on-site inspections within 24 hours of any reported malfunction.

Also on tap: "Customer First" training centers to inculcate local workers in "The Toyota Way."

Mr. Toyoda said human resource training hasn't kept pace with the car maker's explosive growth over the past decade. The world's largest automaker lost sight of matching production to actual demand, a keystone tenet of the company's business strategy, he said.

"With the rapid expansion of production, perhaps we weren't able to develop appropriate engineering skills and human resources," Mr. Toyoda said. "The basic rule of the Toyota Production System is build only as many cars as can match demand, and we ourselves broke that rule."


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1 Comment
Subscribe to comments on: Toyota President Announces Reforms to Get Back on Track
By jfgoodsman | Gardiner, ME February 17, 2010 04:02:41 pm:
Have you seen the zombie ads they are running? I wrote about that today and some of their others misplays:http://www.cargurus.com/blog/2010/02/17/the-toyotathon-continues. Incredible how inept at PR these guys are.

Toyota Announces


'JJTV #75 - Toyota Recall Redux' - Join the Conversation...

JJTV #75 - Toyota Recall Redux

There's an auto brand called Toyota. Maybe you've heard of them. This episode talks about the importance of having a "direct dialogue with ones customers" ESPECIALLY during times of need (or even crisis)

There's also an interesting follow-up in terms of how Toyota are reacting and trying to "move forward".

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  • My post on 5 ways Toyota can "Flip the Funnel"

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