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Magazine Summer 2009
‘Gentlemen we have
no money, therefore
we must think’
Will the credit crunch kill off cash? page 6
Inside this magazine
12 Not so grim up north: the resilience of Scandinavia
18 The thrifty case for sustainable design
30 Outsourced chores: the white goods revolution finally arrives
34 The art of leadership, from Alexander the Great to Pepsi
40 Urban legends: how design can transform our cities
Welcome
It always pays to be clever with money, especially when there’s less of it than
usual. So it’s time to get ingenious about how we deploy increasingly scarce
resources. Disposability is out and durability is in as sustainable design moves
centre-stage and the spirit of make do and mend enjoys a comeback (page 18).
We also take a look at how design can make public sector procurement
more innovative and cost-effective (page 26) as the government looks for £30bn
in efficiency savings by 2010. And what fate awaits money itself? The notes
and coins in our pockets could soon be consigned to history by plastic and
m-commerce (page 6). Nevertheless, we’ve asked three designers to apply
their own brand of ingenuity to imagining a future for pounds and pence.
You’re sure to have your own views on all this and the rest of DCM. As ever,
do share them with us at dcmeditor@haymarket.com.
David Kester
Chief executive, Design Council
www.designcouncil.org.uk
Design Council Issue 6
Magazine Summer 2009
Unconventional wisdom
Helping the developing world see things more clearly,
aiming for a better mobile net and reflecting on users
Mobile internet
Surfing in the slow lane
No 1 Tomorrow’s money
The block with a chip by Conka Design
“This concept makes use of the most modern advances in
materials and technology,” says Mark Hodge, creative director.
“Manufactured from recyclable and biodegradable bio-
plastics, it features a small internal microchip over-moulded
within the plastic, ensuring counterfeiting is an impossibility.
“It is based more on credit and less on the coin-and-paper
system. The chips within each unit store information about
the value of the coin or card, so it can be used within vending
machines, or accurately tracked within a shopping environment.”
06/07
Cash has had its day. Ten years from now, half Puckoon, Spike Milligan’s comic novel set in 1920s
of Europeans believe, we will be spending so Northern Ireland, a landlord won’t accept a green
much through electronic payments, cards and pound because he thinks it is a cheque: to him,
m-commerce (transactions using mobile phones) brown – the colour of the old 10-shilling note – is
there will be no notes or coins left to handle. the colour of money.
It’s easy to underestimate just how profound The rise of plastic and bank transfers has
a shock that will be, given the long and colourful begun to erode our love affair with notes and
history of money. The first notes started circulating coins: “Some people already go the whole day
in China around 600AD. The English pound dates without handling cash, thanks to credit cards and
back to the eighth century and probably owes its swipe cards. It may eventually become a ‘dirty’
name to the practice of measuring large payments commodity people just don’t want to touch as it
by weight, 240 silver coins weighing one pound. becomes rarer,” says Adrian Furnham, professor
Although you could exchange coins at a of psychology at University College London and
goldsmith for a promissory note, money did author of The Psychology of Money.
not really take off in the UK until the Bank Our attitude to the allegedly grubby £5 note is
of England was incorporated in 1694. In the already changing. Fivers pass through many hands
1770s, an argument over whether Britain’s quickly, have vanished from ATMs and, on average,
North American colonies could print their own are now in circulation for only nine months.
banknotes (British mandarins believed the The amount of cash in circulation has never
reckless Americans would print too much money, changed dramatically – instead, it’s the make-up
triggering hyperinflation) was one of the hidden of our assets that best demonstrates our shifting
drivers behind the War of Independence. attitudes to currency. Just after World War II, the
Until the 1880s, when the Bank pre-printed amount of bank credit (the money held in bank
notes, cashiers signed each banknote personally. accounts and available to be converted into physical
Even then, it took a while to get used to cash. In currency if required) was roughly equivalent to
the cash in circulation. Today, it is 160 times greater
than the value of the notes and coins in our pockets
and accounts for 97% of all money supply.
When the Bank of England talks about printing
money to revive our economy, the presses don’t
literally roll: the liquidity available to banks
just increases. This explains why the idea of
a genuine run on the banks terrifies treasuries.
No 2 Tomorrow’s money We live in an economy built on credit.
Our dependence on credit may grow as it
‘Clik’ and anti-bacterial coins by Fripp Design
“Clik (top) is fresh and modern. Embedded with RFID becomes easier for us to use plastic and mobile
[trackable, identifable radio frequency tagging], it is impossible phones to buy stuff. Chip and PIN is still relatively
to copy and the bumps can be easily read by the blind slow, but Barclays is the first bank to introduce
by simply counting the rows and columns to work out the
denomination,” says design director Neil Frewer. ‘contactless cards’ where up to £10 can be spent
“Coins are bacteria-ridden, so our second concept (above) without any verification. By 2011, five million such
has no dirt traps or crevices that could harbour diseases. cards will be in circulation.
The anti-bacterial-coated PET shell will take knocks over time
with ease, and the glass-like finish ensures its looks won’t There is an economic rationale behind phasing
fade. Suspended inside the shell are a range of materials, each out cash: counting out notes or coins makes us
representing a different amount, from plastics for pence to think more about what we are spending. No
metals in the pounds”.
matter how familiar we are with electronic
payments, there is something less immediate and
tangible about debiting an account electronically.
Psychologists call this ‘payment coupling’ – the
association between deciding to spend and the
actual spending. Priya Raghubir and Joydeep
Srivastava, who wrote the definitive study on the
subject, liken any form of physical payment that
isn’t legal tender (including credit cards and gift
vouchers) to “Monopoly money.”
We enjoy buying something less when we think
about it, so we are more likely to use our credit cards
to make frivolous purchases. And because credit
card bills group purchases together, the individual
spending decisions we make seem less significant. One in 10 Britons believes that ‘under the
For similar reasons, we spend more on holiday if mattress’ is the safest place to keep their assets –
the foreign currency we are using is worth less than and 28 million Americans, appalled by the carnage
our own. The banks’ quiet phasing-out of monthly in the financial sector, are storing their money there,
statements may increase the effect and encourage despite being urged not to by the government. In
us to treat real money like Monopoly money. China, consumers who embraced newfound lines of
We have the technology to do away with cash but credit are turning back to cash.
the credit crunch suggests it may, for a while, be a Our attachment to cash runs so deep that many
case of ‘cash is dead, long live cash’. Psychologically, organisations have chosen to print their own.There
we aren’t ready to dispense with notes and coins. are more than 330 micro-currencies in the UK;
“Money is imbued with emotions,” says Furnham. Lewes and Totnes are the latest towns to launch
“For some that’s love, for others power, ambition or ‘pounds’ to encourage local spending. The flaws in
freedom.” When pop group The KLF were filmed such schemes are fairly obvious – if suppliers won’t
burning £1m on a remote island in 1994, it provoked accept the currency, businesses won’t either, and
outrage. Such a reaction would have been unlikely the whole trend contradicts the globalisation of the
had they wiped a few zeroes off their bank balance. economy. But in Europe, it is serious business.
Regional currencies are widespread in Germany. buyer can’t save enough to complete the purchase
In a bid to stimulate economies, some notes have they get their money back, minus a service fee).
‘spend by’ dates so that, if unused, they must be Popular in the 1930s, the ‘layaway’ is perfect for
renewed for a 2% levy. Islamic finance, which could newly constrained consumers who want to make
gain a foothold in the UK banking system, works bigger purchases.
along not dissimilar lines – it doesn’t offer interest, Cash remains king now, but how long will it
so there is no incentive to keep hold of cash. be before it is dethroned? Once the credit crunch
“Gentlemen, we have no money, therefore starts to ease, and economies recover, the lure of
we must think.” That’s what physicist Ernest m-commerce, time banks (paying for services with
Rutherford told the cash-strapped British Admiralty services), digital micro-currencies and peer-to-
in World War I as he tried to improve submarine peer ‘social banking’ suggests it can’t be long
detection without troubling the Treasury. With before the jangle of coins is silenced forever.
money tight, fewer credit cards being issued With the banking industry’s reputation
– and little faith in the banks – many of us are, shredded, social banking has gained some
like Rutherford, thinking outside the box. The momentum. Zopa, a peer-to-peer system that
American Internal Revenue Service has even had lets people loan directly to each other, is popular
to clarify the tax rules on bartering to claw back (and the Chancellor might like to note has only
revenue from those who don’t spend currency. a 0.2% bad-debt ratio) using a similar model to the
The trouble is, if consumers are to spend their American system Prosper, which has lent £124bn
way out of recession, the economy needs to rely less outside the conventional banking system.
on cash. Faced with a daily diet of redundancies and Dave Birch, director of Consult Hyperion, an IT
recession, we are cautious about impulse buys. As consultancy specialising in digital money, thinks
access to credit becomes harder, we use more cash cash will disappear “when we finally understand
and are more likely to spend on necessities than what the mobile phone was invented for.” In Japan
luxuries. The desire to remain outside the tax and South Korea, small transactions are routinely
system keeps cash alive among some sole traders. made through m-commerce as phones sync with
There are many situations where we could use vending machines, ticket booths and newspaper
less cash if we chose to but high fees to merchants kiosks. The Japanese m-commerce market is worth
and consumers deter many of us. Last November, more than £5bn, and 80% of e-commerce among
Downing Street said it was alarmed by sudden and 15-to-24-year-olds now takes place by phone.
sharp increases in credit card rates and fees as the Sophisticated m-commerce solutions mean
card companies try to compensate for the risk that users can receive cash from others, and choose to
many of their cardholders won’t pay their debts. pay in any currency. But security concerns could
K-Mart, one of America’s biggest retailers, has delay Birch’s forecast that most under-21s in the
revived the ‘layaway plan’, where goods are put to UK will be using such systems within five years.
one side and paid for over a few months (if the The Design Council has launched a Technology
10/11
design and everything cold, but I don’t think they How is the current economic
is accepted.That’s really would view it like that in Italy. climate affecting you?
something that creates an The environment affects other Maybe people are more
extra dimension. people’s perception of objects careful at the moment, not
and design. experimenting as much, but
What influence do you think from a creative perspective it’s
Scandinavian design has Do you have to design not only negative. The projects
in other countries? your products for that actually come out during
We have a unique heritage, a specific market? this time may be projects that
which is based on simplicity I work with between 20 and were lost for a while, and I feel
and functionalism. This often 30 companies, and all these that’s a good thing for design.
comes through in our work companies aim for a specific
and can give our design market. Of course, the
Monica Förster is a furniture a strong identity globally. You choice I make to work with
and object designer based can always react against your a certain company means
in Stockholm. Twice Swedish history, but you can never that I am choosing to
Designer of the Year, her really escape it. target my designs at
clients include Modus, a particular
Tacchini and Swedese. What impact does the audience.
environment have on
What do you find exciting your design?
about Scandinavian design? We are surrounded by forest,
The variety – there are so so there is a tradition of
many directions of design, working with wood and raw Sit down, relax:
rather than one single line materials. The climate is Förster’s Drop
working in a cross-disciplinary important too. For example, in stool,
way. We have everything from Sweden we would tend to see produced by
minimalist design to concept an aluminium chair as being Modus
14/15
Next time you buy a sofa, here’s an interesting we are overdue at least a partial return to an
question to ask yourself: would you rather have attitude familiar to householders in the 1940s:
one £4,000 sofa or eight £500 sofas? Not in your “We expect you to buy a piece of furniture
living room, but over the course of your lifetime. knowing it will last your entire life.” Moreover,
As we’re increasingly beginning to realise, a well- she says, if clients bring her good-quality old
made object that lasts a long time and can be furniture, she’ll renovate it for them.
repaired and updated is a sustainable choice, no This return to a ‘make do and mend’ mentality
matter what its other credentials. goes hand-in-hand with our new-found love of
This has become an issue because our craftsmanship, and is reaching far beyond the
consumption habits have changed. We don’t really bespoke end of the market. Websites offering
expect our consumer durables to be that durable tips on recycling household items (tights can be
any more. Since the early 1990s, our neophilia has used for everything from pond skimmers to fan
reached dizzy heights, largely driven – in the case belts, while “pantyhose make excellent polishing
of interiors at least – by magazines and companies cloths” according to www.greenlivingtips.com)
whose interests lie in a regular (and, historically, have exploded in popularity, and home make-
shockingly short) upgrade cycle. over shows emphasise frugality and reuse where
Items such as chairs, tables and desks that once they embraced consumerism.
previous generations would have expected to last The iconic lamp-maker Anglepoise is
at least 20 years are now chucked out after two or a fifth-generation family business that has been
three. The demand for mid-market antiques has around for 150 years. “We’re in it for the long
almost collapsed as a result. Chances are, you can haul,” says CEO Simon Terry, the founder’s
buy a Victorian mahogany dining table for less great-great-grandson. “That’s what we do. Our
now than you could 30 years ago; who wants old philosophy has always been to make it right first
when you can have new and shiny? We throw time. We find ourselves looking after customers
away two million tonnes of clothes a year, up 34% who have our lights for 75 years.” The company
on 1996. Almost three-quarters of the clothes recently launched a kit that allows customers
bought in the UK end up in landfill. to rewire their old lamps to current standards.
But our love affair with the ever-new may be “We’re a small company,” he explains, “and
coming to a close – and not just for environmental
reasons. Everything from the economy to the Vintage recycling
Wartime ‘make do and mend’
desire to shop ethically is making us reconsider posters reminded Brits how
our unsustainable attitude to durables. to survive rationing. The credit
Lisa Whatmough, owner of London furniture crunch may force us to adopt
maker Squint, believes we are seeing a move away a similar mentality
from ephemeral interiors. “Part of the problem
has been that, in the past few decades, people have
been into upgrading their homes. You go from
a flat to a house to a bigger house and you buy a new
batch of furniture each time. The credit crunch
could well stop the endless aspiring to buy bigger
and better things – not least because people won’t
be moving house so often.” Whatmough believes
18/19
we can’t compete with cheap lights from places
like IKEA – so we don’t.”
But, he says, when you buy an Anglepoise
light, you enter into a relationship with the
company. When something goes wrong with your
lamp 15 years down the line, you know there’s
a good chance, you’ll be able to get spares or have
it repaired. Of course, an Anglepoise lamp retails
at £60, as opposed to IKEA’s £12. But a £12 lamp
is something designed to be thrown away the
moment the interiors magazines tell you it’s time
for another make-over. And the same applies to
everything from fashion to household appliances.
Laudable though Terry’s stance is, there are
some items for which the long-life sustainable
philosophy doesn’t work so well. It would be
impractical to buy a laptop believing it would
be useable 30 years later. Nor has the thrifty,
make-it-to-last approach filtered through to the
mobile phone industry yet. But not everything
at the cutting edge must be disposable.
One of the most celebrated examples of
this is the near-indestructible Land Rover. It’s
modular (parts can be replaced easily), extremely
robust, (mostly) British-made and easy to
service. Small wonder that 75% of Land Rovers
made since 1955 are still on the road today.
And, if you look around you, there are plenty
of products that fall into this category. Michael
Bonney, of British bicycle-maker Orange
Bikes, says that many of the company’s earliest
models from the late 1980s are still being ridden
(although, he adds, you probably wouldn’t want
to ride a 1988 mountain bike down some of
today’s more difficult trails). And it’s not just Leaner and greener
upmarket, custom-made bikes to which this Sustainable design in action
applies. “Unless you damage the frame, almost around the world
any bike will last indefinitely.” Milking it
But why do people expect an indefinite life from Gallon milk jugs (below) from
a bike when they no longer do from a chair? The Wal-Mart and Costco in the
US are designed to stack
answer may well be because no one has designed together, making shipping
a disposable bike yet. More generally, though, more efficient. The milk arrives
mendability is usually related to relative cost. at stores more quickly,
retailers save up to 70% on
In India or China, many objects considered labour and customers pay
disposable in the West are repaired. We may soon 10 to 20 cents less per jug.
follow suit. The cost of any good, notes Terry,
is the raw materials plus the labour – and the golden
age of wasteful consumption has relied on both low
raw material costs and low labour costs. As recent
fluctuations in oil and steel prices have shown, this
cannot be depended upon. And, in the longer term,
‘The credit crunch could stop the endless aspiring Reason to believe
to buy bigger and better things – we could buy The Reason washing machine
(www.reasonwashingmachine.
furniture that will last an entire lifetime’ com) automatically dispenses
the correct amount of water
and detergent – and its 10kg
as workshop countries like China become drum lets you wash more
clothes in the same cycle.
relatively richer, neither can low labour costs.
Whatmough points to the fact that her furniture Daily bread
First launched in 1945,
is all made in the UK and keeping craft skills the Dualit toaster (below) has
alive. While this may seem desirable in a warm, become a design icon and,
fuzzy Islington kind of way, it’s positive in other unlike most white goods, it’s
built to last. Handmade in
ways, too. After almost two decades of ignoring the UK, all its parts can be
manufacturing and genuflecting before a financial repaired or replaced. It’s user-
services sector that had, in historical terms, friendly too: the manually
operated lever
swollen to become a disproportionately large part allows you
of the UK economy, we’ve suddenly discovered keep toast
that it’s quite nice to have an economy where warm until you
want to eat it.
things are made and value is added.
There are reasons to suggest the tide is turning Great Danes
against the sort of disposable minimalism Hansen Living kitchen
furnishings are designed to
espoused by celebrity culture and popularised last decades and improve with
by much of the press. A few years ago, a age. The range, made from
rekindling of interest in the craft movement sustainably harvested wood,
is assembled in Denmark.
began. People now talk of authenticity and
seek somewhere that tells the tale of a life lived Long haul
rather than a magazine read. The hard-edged US luggage firm Briggs
& Riley is revered by travellers
minimalist sometimes struggles to translate into for its ‘Simple as that’
Britain’s largely Victorian housing stock. And, warranty, which guarantees
as Whatmough points out, while the clean, replacement bags or cases,
even if an airline is responsible
modern look may be pleasing to the eye, for the damage.
a well-upholstered sofa is a million times more
comfortable to sit on. Green swoosh
Nike’s Trash Talk basketball
So are we returning to the values of the 1940s? trainer (below) is made from
Not quite. But we are coming to realise that the company’s manufacturing
at some point in the 1990s, the British – long by-products. The top of the
shoe comes from synthetic
respected for their restraint, modesty and love of leather waste from the factory
quality – took a collective look at WAG bling and floor and the outsole from
ecologically sound rubber.
bought into it in a big way. But make-over and
move and this season’s sofa was then. Now, it’s
make do and mend and design for life.
A R C T I C O C E A N
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22/23
! Ageing populations
In 2020, the average age in than the world’s oldest Median age (years)
India will be 29. It will be 37 populations: Germany, Japan
39+
in China and 48 in Japan. By and Monaco. With one in four
33-38
2030, India will have only 0.4 Iranians under 15, Iran can
27-32
dependents for every worker expect an economic stimulus,
21-26
whereas the UK, by 2040, will but this could pose a political
Under 21
have a dependency ratio of risk as young modernisers
No data
0.65. The UK’s median age, clash with the establishment.
39.6, is only slightly younger
Source: CIA World Factbook
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" Voting patterns
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# Peace in our time
Defining peace might seem The UK ranks 49th – behind Peace rating (lower
80°
near impossible, but the Botswana, but 82 places is more peaceful)
Global Peace Index has done ahead of Russia, which is
its best. Rating countries on ranked lower than Sri Lanka. 3+
24 factors – including military Is this why the Russians 2.6-3
spending and human rights are, as map 4 shows, the 2.1-2.5
– they reckon Iceland is the glummest major power? 1.6-2
most peaceful, ahead of 0-1.5
Norway and New Zealand. Source: visionofhumanity.org No data
24/25
160° 120° 80° 40° 0° 40° 80° 120° 160°
A R C T I C O C E A N
A R C T I C O C E A N
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% Happy, happy, happy
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$ Rise of the robots
In Greek mythology, the god lines – the Japanese believe Robot density per 10,000
80°
Hephaestus built mechanical they bring good luck. By manufacturing workers
servants. Now, dreams of 2025, one million robots
living in harmony with robots 51+
could be at work in Japan. In 41-50
are inching closer to reality. Europe, the UK lags behind
In Japan, home to 40% of the 31-40
France, Germany and Italy in 11-30
robots on earth, androids act its use of robots.
as receptionists and are even 0-10
welcomed on manufacturing Source: IEEE Spectrum
Design Council Issue 6
Magazine Summer 2009
How to spend
taxpayers’ money
innovatively...
... stimulate small businesses and deliver better services.
It can be done, Paul Simpson says, with a bit of design
thinking, a cultural shift and a spot of re-engineering
26/27
If you commute to work in central London, you probably carry an example Unpicking procurement
of innovative government procurement in your pocket. Five million Britons David Kester, chief
regularly use an Oyster card, a credit card-sized electronic pay-as-you-go executive, Design
ticket that eases journeys, fights fraud and saves Transport for London Council
“For design to help
a serious amount of money. improve public
The Oyster card does many things that the government admits the public services, a pre-procurement,
sector isn’t always good at. Promoted by one public body (Transport for conversation must take place.
That could be the difference
London), the Oyster wouldn’t work without collaboration from other public between a process where
organisations (particularly Network Rail) and businesses. It increasingly draws purchasing specifications
on the kind of open source architecture that is at the heart of the government’s offer too little scope for
innovative solutions and one
future IT strategy and is the kind of innovative solution to users’ needs that the that identifies project needs
public sector is often criticised for failing to deliver. holistically, allows discussion
The Oyster proves two things. First, that innovative government and recognises users.”
procurement is not as rare as some cynics suggest. And second, that the Ben Reason,
actual business of procurement is not just a concern for policy wonks. If the live|work
“You don’t know
government could procure goods and services in a seriously more innovative where innovation’s
way, it could save a few billion, think differently about some of the daunting going to come
challenges – health, crime, infrastructure – that seem increasingly unlikely to from. Smaller businesses may
create something that hasn’t
be solved by throwing money at them, stimulate businesses (especially SMEs) been thought of before, but it’s
and deliver services that could tangibly improve the quality of our lives. hard for them to win the work.
So why, if all that good could come of innovative procurement, doesn’t the As a small business, we find
applying for public sector
public sector do more of it? work very time consuming
To answer that, it is unfortunately necessary to crunch a few statistics. and it can be unrewarding.
Nigel Smith, chief executive of the Office of Government Commerce, You don’t always get
a chance to meet people and
an independent office responsible to the Treasury for making sure the understand what they want.”
government gets value for money, says: “The government spends around
£175bn a year, with only £12bn of that spent by professional buying Nigel Smith, chief
executive, Office
organisations. There are probably 44,000 points in the public sector where of Government
a good or service is being bought.” Commerce
If anything, those stats underestimate the complexity of the public sector, “Innovation in
procurement cannot come
a world where central government, local authorities, devolved parliaments, purely from the customer
quangos, funds and private finance initiatives are profuse and overlapping. To deciding they want an
give just one example of the impact this can have in practice, Make It Work, innovative solution. Most
innovation comes from the
a Sunderland City Council pilot project that used design thinking to help the customer expressing the
long-term unemployed, drew on seven different funds. And this was a pretty outcome and suppliers
compact, local initiative that cost around £5m over two years. coming up with an innovative
way to reach that goal.”
Martin Temple,
Opaque rules and maddening bureaucracy chairman of the
In government, responsibility is divided in a way that many businesses would Engineering
find baffling. Strategy – call it policy – is usually set by politicians. Delivering Employers
Federation and
that strategy is devolved to ministers, permanent secretaries and other senior BERR’s Business Support
civil servants. Policy-making is glamorous, procurement isn’t. But policies can Simplification programme
fail if the goods or services needed to fulfil them aren’t bought properly. “The mindset of the designer
can encourage change,
To further complicate matters, every civil servant buying a good or service particularly if there’s a creative
is constrained by British and European Union procurement rules written to conversation where questions
ensure the process is as competitive as possible and to encourage the buyer to can be raised. Design should
be embedded into the
focus on unit cost. There are so many of these rules and they are sometimes procurement process, not
so opaque you suspect they were written in homage to Sir Humphrey, Nigel added in as another box
Hawthorne’s masterfully evasive permanent secretary in the sitcom Yes Minister. suppliers have to tick.”
Although the words “bureaucracy gone mad!” – the exclamation mark is
ever-present, especially on radio phone-ins – have a certain resonance, you
need some process to protect the taxpayer. Otherwise you might find, as one
American education board did a few years ago, that $367,000 earmarked for
classroom improvements had been spent renting an inflatable alligator and
an underwater slide. So, inevitably, many procurement officers play it safe.
Innovation is one of those terms that nobody challenges. It would be a brave
minister who stood up in public and argued that their department needed to
be less innovative. But for a civil servant – a breed routinely demonised in the
tabloid press as “mandarins” – innovation isn’t an unqualified good.
“If you are in public sector procurement, innovation very often brings risk.
And people tend to underplay that,” says Smith. “What we’ve got to do is
Debugging the NHS show procurement professionals what they can do to manage risk and help
Can you design out them recognise that effective management of risk can be of great benefit.”
healthcare-associated Since April 2008, Martin Temple has chaired a board responsible to the
infections in the National Department of Business Enterprise and Regulatory Reform (BERR) for
Health Service? This was the
gauntlet that the Department simplifying the way government interacts with business. And, in his view, such
of Health and NHS Purchasing factors explain why public procurement “becomes an old-style mechanistic
and Supply Agency threw process where you mostly end up buying what you bought the year before”.
down when it teamed up with
the Design Council to invite This process typically starts with a tightly drawn tender (often based on the last
designers and manufacturers one), to which suppliers respond with bids and a contract is awarded.
to create new innovations As processes go, this is neat, simple – and very often counter-productive. As
for healthcare furniture and
equipment that reduce Temple says: “The one question that might never be asked is: ‘What are you
patients’ exposure to trying to do?’ rather than ‘What are you trying to replace?’ And designers, with
infections such as MRSA. their mindset, are well placed to make sure those kind of questions are asked.
A panel that included
designers Richard Seymour To me, design should be embedded in the procurement process at an early
and Tom Dixon whittled 37 stage, where it can help shape the pre-tendering process.”
entries down to five designs,
with each design team
To provide a forum for such questions, David Kester, chief executive of
receiving £25,000 to cover the Design Council, calls for a “creative pre-tender conversation” in which
further product research and interested parties talk around the issues raised by a piece of procurement.
development.
PearsonLloyd, the brains
The need for politicians to do something fast and decisive might suggest that
behind Virgin Atlantic’s stylish the last thing government procurement needs is a talking shop. But Kester says:
Upper Class seats, scored “The right discussion at this stage can save time and money later on. You may
two successes – for a patient
bedside chair and a commode find that the ideas to help you solve your problem are already out there.”
– with design consultancy In his view, a better procurement process would be: “Research, define,
Hollington, responsible for specify and buy.” He sees the Design Bugs Out initiative (see left) as a model
some of the most famous
Parker pens, also selected. for this approach. A “creative conversation” between patients, staff, managers,
Minima made the shortlist manufacturers and designers led to a ludicrously simple idea that might not have
with a design for a new emerged under the “old-style mechanistic process”: a good way to fight bugs
was to design equipment that was easier for staff to clean.
Similarly, opening up the procurement process in the prison service, using
a new procurement model developed by the Environmental Innovation Action
Group, could help the Home Office save £1.2m a year on the cost of sending
hazardous prison mattresses to landfill, by buying a different kind of mattress.
The OGC recommends such conversations take place, the earlier in the
process the better, but Smith says there are pitfalls. For a start, what may seem,
to a successful bidder, like a constructive creative conversation may seem, to
Wheel on fire: a designer an unsuccessful rival, more like a cartel. What you don’t want, says Smith, is the
ponders part of a bug-busting kind of conversation where unsuccessful suppliers can claim they were denied
hospital bedside cabinet
the kind of insight that would have led them to tender very differently.
patient chair, along with And then there is the matter of intellectual property rights. Kester says these
Kinneir Dufort.
Product prototypes could be an incentive for suppliers to collaborate with government: “The
are currently being NHS isn’t in the business of owning intellectual property, it’s in the business of
showcased among healthcare. The intellectual property on goods and services that emerge from
healthcare professionals and
the public, to seek their these discussions could revert to the suppliers.”
opinions. Products entering
development could be made The beauty of failing early and cheaply
available to the healthcare
market in 2010. Everyone agrees the public procurement process is imperfect. But different
Chris Howroyd, project parties have different ideas of which imperfections are the most critical.
manager for healthcare at Simplification is so popular that Whitehall risks becoming cluttered with
the Design Council, says the
competition could lead to decluttering initiatives. For others, aggregating buying power is key. But Smith
a number of new products, says: “Obviously, if we are buying energy from thousands of different points of
but acknowledges it is
only one part of the fight
procurement, it makes sense to aggregate deals to get better value. But in some
against superbugs: cases, if we want to encourage innovation, it may make sense to de-aggregate.”
“Designing a new bedside Ben Reason of service design group live|work would agree. His firm ran
cabinet won’t on its own
eradicate infection. It needs
the Make It Work project: “The government is trying to create opportunities for
behaviour to change and the innovation to happen. It can learn from Dott 07, which started with small scale
systems that work around it projects that had the potential to grow. Sometimes, two-month trials can be
to change too.”
more useful than three-year pilots.” And more cost-effective.
Innovations do fail. That costs money. And research in the US shows that the
public perception of government waste is impervious to reality. So it’s vital to
innovate within a budget. Kester says: “With design, you can move quickly to
a prototype that clarifies the issues. If you’re going to fail, fail early and cheaply.”
28/29
For John Wright, chairman of the Federation of Small Businesses, a level ‘If you are in
playing field is key: “Small and micro businesses drive the UK economy. Yet
only 16% of public procurement contracts are awarded to SMEs and most small
public sector
businesses find trying to win public contracts frustrating. Most procurement procurement,
officers tend to use an approved list of suppliers, which makes it near- innovation
impossible for a company that has not supplied previously to win business.”
By 2010, says Smith, the government should have shifted to one pre- often brings
qualification questionnaire for all contracts and abolished the £180 fee for risk. People
accessing public procurement contracts via Supply2.gov.uk. But, as Temple
says: “If you were in government procurement, under pressure on resources
tend to
and time, your first preference would be to work with one company, not 200.” underplay that’
One answer might be to encourage large companies to include small businesses
in their consortium and make it the larger partners’ job to nurture these SMEs.
Innovative public procurement would be good for government, small Nigel Smith
business, the economy and taxpayers. It won’t be an easy ride for those who Office of
take the risks, buying goods and services for the government, but how many
other ludicrously simple ideas – such as easy-to-clean equipment for hospitals Government
– might a design-led re-engineering of public procurement uncover? Commerce
Design Council Issue 6 30/31
Magazine Summer 2009
Kitsch appliances With the benefit of hindsight, the future was a wonderful place. Apart from
A look behind the facade an obsession with bland décor, gleaming uber-hygenic floors and oddly
of the microwave, which
revolutionised white goods uncomfortable furniture, post-war visions of future kitchens tantalised us
when it entered popular use with such perennial futurologist’s favourites as the magnetically levitated,
in the 1970s induction-heated frying pan and the fridge in a drawer.
The Ideal Home Exhibition of 1956 predicted that the ‘House of
Tomorrow’ would be atomic-powered. Food would be vacuum-packed in
plastic bags and irradiated with gamma rays – no need for tedious refrigeration!
The ‘Monsanto House of the Future’ – on display at Disneyland from 1957-67
– promised a plastic ultrasonic dishwasher for your plastic dishes. Lives would
be changed by Frigidaire’s fridge with motorised revolving shelves and,
bizarrely, a built-in mixer. And in 1969, $10,000 could buy you the Honeywell
Kitchen Computer, which could store recipes, tell you what to make with the
ingredients you had and, for its pièce de resistance, balance your cheque book.
There has been real progress since then, of course – inventions such
as microwave ovens and freezers, without which it is difficult to envisage
contemporary life. These changes have come in response to consumer
trends, particularly around our living habits, growing environmental
awareness and ever-evolving internet and mobile technology.
The way we live is changing rapidly – and that has a big effect on the
white goods we use. Official figures show that the percentage of European
households occupied by one person rose from 18% in 2001 to 30% in 2008.
At the same time, notes Nina de Man of trend-watchers PitchWork, 30% of
Europeans aged between 25 and 35 still live with their parents. Many others
share flats until well into their thirties. By that age, previous generations had
wed and started a family. Lives are increasingly frenetic. Homes are shrinking
as cities become congested. Even in the US, the median home was 8.7%
smaller in the third quarter of 2008 than in the quarter before. “Increasingly,”
de Man says, “we’re looking to maximise every second of the day by
outsourcing recurrent tasks like household chores to technology.”
From Sleeper to Scooba eventually become mainstream. “The internet will move into actual practice,”
It took 30 years to turn a
he says. “It’s about being able to do things like downloading recipes and
sci-fi comedy into reality following cooking instructions.” Finetto agrees but believes that the first
innovations will kill off complicated user manuals, with manufacturers sending
In 1973, when Woody Allen instructions to mobile phones or providing web-based information instead.
pretended to be a robot in
his classic futuristic comedy “A decade ago, we tried to install a computer in every appliance. Not any more.
Sleeper, it was widely Now all the information you need is on the internet.”
assumed such machines
would soon be doing the
To see what’s really possible in this area, companies will consider engaging
chores in all our homes. younger designers who have never known life without connectivity. Over the
next few years, so-called iGeneration designers will graduate and may work
While robots have been put
to use in the workplace, they with manufacturers to drive development. At Design Lab 08, students from
have not transformed our across the globe were invited to create appliance concepts. Among the most
kitchens. Last year, the interesting ideas was the Sook, a wireless kitchen assistant that generates,
University of Munich
revealed it had developed displays and shares recipes – bringing social networking into the kitchen.
a new household robot that Sook uses sensors to detect what food is on its cutting board, weighs it
keeps track of the contents and suggests recipes. As a recipe is generated, the user can rework it, adding
of your kitchen, learns simple
tasks and “could be making ingredients or checking alternatives online. When the meal is cooked, Sook
you dinner while you relax”. photographs it and uploads the image and recipe to the user’s chosen site.
Alas, users needed to plaster “I found that 75% of the iGeneration are on social networking sites,” says its
their kitchen with RFID tags.
creator, Adam Brodowski, a student at the Savannah College of Art and Design
Perhaps the best option in Georgia. “They are centred on creating and sharing internet content, and
might to be to emulate each person aims to be noticed for their creativity. My product lets them share
iRobot, a US firm which has
been quietly automating recipes and experiences; it essentially lets them cook together.” Think Gordon
individual tasks with products Ramsay’s Cookalong Live with a computer rather than a stroppy chef.
like the Scooba floor-washing Products with this level of technical sophistication may be a while away, but
robot, launched in 2006.
Sales have been restricted by change is coming. “The general movement in the industry is to add value from
the £206 price tag. an intelligence point of view, so you have less of a static machine and more an
intelligent device,” says Finetto. “It’s not something that will tell you what
to do but it will help you. It will adapt to you, rather than you adapting to it.”
So the multi-tasking, life-organising kitchen appliance may be much nearer
than we think. But many users will be wary of becoming early adopters. The
future sounds very beguiling but if you check out a website like www.
whitegoodshelp.co.uk you find that users in the present are more intrigued by
such issues as “my washing machine is slowly eating my clothes”.
‘There go
the people.
I must follow
them, for
I am their
leader’
Every generation defines its own kind of leadership, says
Lloyd Bradley. But do Lincoln, Gandhi and legendary
NBA coach Phil Jackson have traits in common?
34/35
‘If all you want is… double-digit earnings growth and nothing
else, then I’m the wrong person’
Indra Nooyi PepsiCo
Great minds: PepsiCo’s part of the communication process,” says Cooper. “Too often a good
Indra Nooyi (left) knows her communicator is defined by an ability to talk, but communication works both
public; Lincoln (above) used
compromise; André Breton ways. The ability to listen can define a good leader although it isn’t nearly as
(below) shunned superficiality noticeable as being a good talker.”
for positive thinking Alexander triumphed because he delegated. Mark Fritz, founder of HR
consultancy Procedor, says this is a crucial skill for a leader. “It allows the people
around and below to grow, so the whole leadership grows with them. Too many
would-be great leaders fail because they are afraid to delegate.”
Prime numbers
75% 54
Proportion of business The average age of
2
Women nominated for
56%
Proportion of Fortune
leaders who claim European CEOs. In the US vice-presidency 1000 CEOs who said
that good physical America, the average by a major party: they were unpopular at
fitness is vital in CEO is 56 Democrat Geraldine school. Only 4% were
building a career as Ferraro in 1984 and popular. But 84% said
a company director Republican Sarah they were “voracious
Palin in 2008 readers” as children
5
Design Council Issue 6
Magazine Summer 2009
1 Visual information
Networked transit information makes Helsinki’s
public transport as predictable – and almost as
enjoyable – as a merry-go-round ride. For any Waiting game: in San Francisco
(above left) commuters can hitch
point-to-point journey, a city-run information a ride, while Helsinki’s travel maps
system (www.ytv.fi/eng) tells passengers the best (above) take the pain out of waiting
options by public transport. Most tram stops have
a digital timetable that helps passengers by telling
them how many minutes until the next tram arrives.
The real magic, however, is an online map of buses
and trams in real time (http://transport.wspgroup.fi/
5
4 Mass transit
You don’t need to be a designer to think about
designing better ways of working. When formal
systems break down or are lacking an element,
people improvise to fill the gaps. Commuting
drivers in California’s Bay Area have developed
their own way of working the system: they pick
up random pedestrians at rapid-transit (train) stops
in the East Bay to drive them into San Francisco.
The pedestrians get a free ride and, with an extra
ways to redesign a city passenger, the drivers get to use the car pool lane
toll-free. This cooperative ride-sharing practice
has grown up defined by, but independent of, the
formal transit network. Over time, participants
Like other social networks, it also becomes have documented the etiquette of the ride on
a toolkit for sharing and tracking experiences a website (www.ridenow.org/carpool), where they
(and carbon footprints), a framework of content also share warnings about ‘cars to avoid’, but that’s
as intimate and compelling as the cosmopolitan about as official as it gets.
network that generates it. Expats in some cities An emerging system, it’s certainly lean and
find they don’t even need to pack their bags to efficient (as long as you don’t hitch a lift from
participate, as visitors from home descend on a serial killer). Cutting in line is regulated by
them from the site. nothing more than the threat of other commuters’
disapproval, proving it’s not just we British who
3 Way-finding disdain a queue-jumper.
Legible London, the Jeff Howard, author of Design for Service,
brainchild of design a West Coast-based blog, says slang has emerged
consultancy AIG, is an to celebrate this casual car-pooling phenomenon.
ambitious project to In Washington DC, ride-sharing is referred to
roll out pedestrian- as ‘slugging’, where passengers – the slugs – are
friendly directional scooped up. As with any system, it has limitations.
signs for the capital. Return journeys from the other end tend to be
People walking unreliable because the pick-up points are less
through the city obvious. But as a peer-to-peer network, it drops
previously had to a big hint to transit planners, encouraging them
consult competing, to design possibilities for such behaviour into city
confusing or infrastructure. Sure enough, bays have gradually
incomplete signage, or been marked out in San Francisco to make car-
were left to their own
devices (an A-Z pocket
guide or, heaven forbid, asking a stranger).
The project team has worked with Transport
for London and several different boroughs
across the capital to develop comprehensive
pilot schemes of consistent signage. These
graphics reflect findings from research studies
to direct pedestrians, confirm routes and
announce destinations. Results so far include
a set of successful prototypes that represent
clearly not only what people see around them,
but correspond to their own mental maps,
adding to or reinforcing the partial knowledge
of London streets people may already have
in their heads.
The best way-finding solutions for cities are Day and night: Legible London
(above left) is revolutionising
people-centred and co-created. The designer’s way-finding, as clubbers find
most important task is to synthesise and then going green is cool
visualise what pedestrians have in mind. To
do this, they ask a lot of research questions
at the start of the process, work hard to earn
the participants’ trust and draw on their own
experiences to shape what comes next.
42/43
Design-driven cities
Across the world, politicians are understanding the
importance of design to helping cities function better
London
Almost a quarter of UK design consultancies
Venues in the US, UK and are based in London. Global clients make up
mainland Europe are championing 27% of London designers’ work. Last year,
the London Development Agency launched
green standards for energy- a £3.5m design support programme for
small businesses, including a roll-out of
consuming, 24-hour party people Designing Demand. The London Design
Festival is the largest of its kind in the world.
“London’s businesses are becoming
pooling easier, as what began life as a socially driven increasingly aware of the power of design.
They understand that design needs to be
phenomenom gets co-opted into a city’s way of life. integral to the entire process of delivering
a product or service. If you try to go to market
5 Greener lifestyle without thinking about design, you won’t be
making the most of your opportunity.”
Even do-gooders love to disco. Nightclub venues Boris Johnson, Mayor
in the US, UK and Europe are championing green
Montréal
standards for energy-consuming, 24-hour party Quebec’s capital is challenging Toronto as
people. Low-wattage lighting, even in illuminated Canada’s fashion hub, and is notable for
dancefloors, and campaigns to recycle vinyl and its aerospace and IT industries. In 2006,
Montréal became the first North American
CDs are all catching on. city to be named a UNESCO City of
Although flyers remain the definitive way to Design. In his previous role as minister
spread the word about events, party organisers are of industry for Quebec, Mayor Gérald
Tremblay brought in a tax credit for design,
urged to print them locally at eco-approved print which stimulated private investment.
shops, where recycled, unvarnished paper and “Design has meaning only when it enables
non-polluting inks are available. Promoters are human beings to live well. Becoming a
design city means advocating a better
using mobile and online services to share more quality of life in a perspective of sustainable
of their information digitally and avoid having to development. Design is essential to the
clear up masses of waste paper at the end of a big future of Montréal, giving us the opportunity
to reshape the city.”
night. And clubs like Watt in Rotterdam will offer Gérald Tremblay, Mayor
drinks on draught from biodegradable cups
instead of cans and glass bottles. Seoul
Design is at the heart of the South Korean
Ultimately, the green clubbers hope their capital’s bid to become internationally
standards will sink in, and night-clubbing tourists competitive. The city’s design sector is
will take eco-friendly habits back to local clubs. expected to be worth £10.5bn in under
10 years – nearly twice its value in 2007. The
Many of these initiatives have come about Design Seoul project is transforming the city,
organically, but clubbing is all about following from redesigning street signs to reshaping
trends, and the eco-night-out movement has its global brand. The International Council
of Societies of Industrial Design (ICSID) has
spread. The music industry is getting on board: named Seoul 2010 World Design Capital.
a series of projects is planned to ‘green’ Miami’s “Design doesn’t just mean making the city
long-running Winter Music Conference, look smart. Good design makes life safer
and easier and makes people feel good.
where DJs and promoters jet in from across Take education – children who receive
the world. The Green Music Alliance education surrounded by good design
(www.greenmusicalliance.org), which spans become flexible and generous in character.”
Oh Se-Hoon, Mayor
countries and genres, shows record labels how to
reduce their carbon footprint and directs consumers Sydney
to events and artists with an eco-conscience (take Design accounts for 5% of employment in
New South Wales, as much as financial
a bow, telecommuters Radiohead and KT Tunstall, services and more than agriculture.The
who runs her tour bus on biodiesel). Sustainable Sydney 2030 Vision sets
targets for environmental, social, economic
and cultural development through design.
Clearly, designers get involved in many urban Current projects include extending the
infrastructure projects, from transit and healthcare cycle network, creating new public areas
and artworks and building a green
to sustainability and recreation. Complex, city-scale infrastructure network.
problems and opportunities call for interdisciplinary “Good design is central to the future
thought and action. Designers are brilliantly placed sustainability and liveability of our cities.
Urban design can create connections
to assist in this process. In cities, where things are between where people live and work that
both never- and ever-changing, design could help encourage people to use public transport.”
us imagine and create a different quality of life. Clover Moore, Mayor
Design Council Issue 6
Magazine Summer 2009
Case study 1
Case study 2
The outcome
Together, these strategies ensure Rolls-Royce
keeps its customers’ planes and its own business
flying. It has used design to innovate radically,
rather than simply to create an incremental
advantage rivals could easily copy.
Case study 3
The outcome
The issue Heritage’s designers now work directly with
Heritage Cashmere produces luxury clothing clients, helping them to understand and anticipate
and accessories for leading retail brands. But until customers’ needs. One result of this was a London
recently, there was nothing high-end about the fashion showcase that generated revenue of
Yorkshire-based group’s business performance. £300,000. A new relationship with a Thai company
In 2006, it was failing to make a profit on a turnover has provided access to innovative technology
of £2.2m. Over 10 years it had become less a for printing directly onto cashmere, bringing
manufacturer and more a middleman for imported unique products to market. Heritage also plans
cashmere. It wasn’t adding value, and its margins
were being squeezed by low-cost competition.
‘We knew what we wanted, but we
Heritage joined Designing Demand, the Design didn’t have the guts to go for it... it’s
Council’s business support programme, embarking
on the Immerse service, which offers intensive
been a sea change in 18 months’
support for established firms .The brief was simple: John Kaye, Heritage Cashmere
revive what had once been a promising company.
to create an own-brand offering and to produce
“When I first saw Heritage,” says Designing branded items for hotels.
Demand design associate Andrew Williamson,
“my impression was that things were a bit here, “We knew what we wanted but we didn’t have
there and everywhere. The team could see there the guts to go for it,” says Heritage chairman John
were several quick wins we could deliver.” Kaye. “The changes we took on board put design
at the centre of the business – it’s been a sea change
The crux of the problem was the company’s in 18 months.” A profitable one, too. Turnover in
physical environment. “Everyone was in their own 2008 was £2.75m, and the forecast for 2009 is set
pigeonholes and no one communicated properly,” to match that figure, with a budgeted profit of
says Williamson. In particular, the design £100,000, the first in the company’s history.
department was underused and out of sight.
“Design was adding cost but not value.” Much of the success is down to attitude. Williamson
explains: “The best businesses are saying: ‘If we
The solution don’t invest in product design, communication and
Immerse begins with a day’s intensive assessment so on, we’ll be on a slippery slope.’ If you don’t
to determine a design action plan. Then, over 18 prepare yourself for when the recession starts to
months, companies are given support to implement ease, you risk losing ground on your competitors.”
their plans. For Heritage, the key was to build a
stronger identity as a designer and innovator and For more on Designing Demand, visit
to compete more effectively. www.designingdemand.org.uk.