Cluster Ecosystem Analysis Case: Emerging Design Cluster in Southern Denmark Lotte Langkilde Cluster Labs

11 November 2014

Clusterlab:      Ecosystem  analysis  :  Case:  Emerging  Design  cluster  in  Southern  Denmark      

Lo8e  Langkilde  and  Thit  Madsen  University  of  Southern  and  D2I    

TCI  Monterrey,  Mexico  

OUTLINE  

•  Short  introduc:on  

•  Cluster  Ecosystem  Analysis:    – Model  and  Analysis  

•  Cluster  Ecosystem  Analysis  in  ac:on  (D2)  

 How  do  you  work  with  strategy  development?  (5  min  discussion)  

ABOUT  REG  X  :  Danish  Cluster  Academy:    •  Jan  2010  -­‐  July  2014:  at  University  of  Southern  Denmark  

Mission:    –  Increase  the  competences  of  people  working  with  clusters  (policy  makers  and  cluster  managers)  

–  Put  clusters  on  the    naHonal  agenda  

Focus  areas  in  our  work:    –  Clusters,  regional  development  and  open  innovaHon  

REG  X    TRAINHIGH  LEVEL  POLICY  MAKERS  

               CLUSTER  MANAGERS    

 ANALYSECLUSTERS  

 UNDERSTANDCLUSTERS  

       COLLABORATECLUSTERS  

 

 

GROW    REGIONAL  ECONOMY    

ECOSYSTEM  ANALYSIS  

•  A  model  for  cluster  development  – Analysis    – Strategic  direcHon  –  ImplementaHon  

ECOSYSTEM  ANALYSIS  Welfare  Tech  

Design  and  creaHve  industries  

Danish  food  cluster  

CLEAN  (Energy  efficiency)  

Offshore  

THE  MODEL  

www.clusterecosystems.com

THE  METHOD  

STANDARD  APPROACH  

1.  IdenHfy  actors  in  the  ecosystem  2.  Develop  a  quesHonnaire  (one-­‐2-­‐one  /  

electronically  )  3.  Interview  40+  actors  about  their  role,  expectaHons  

and  collaboraHons  in  the  cluster  4.  IdenHfying  strengths  and  challenges  in  the  

ecosystem  5.  Develop  recommendaHons  for  the  future  

development  of  the  clusters  ecosystem  6.  Pull  all  the  informaHon  together  in  a  preliminary  

report/document  

www.clusterecosystems.com

……….BUT  

THE  METHOD  

….THESE  STEPS  ARE  WHAT  MAKES  THE  

DIFFERENCE!  1.  IniHate  a  dialogue  between  the  ecosystem  actors  early  in  the  process  and  

discuss  findings  from  the  analysis  as  the  results  develop  2.  Conduct  a  number  of  dialogue  workshops/meeHngs  and  highlight  the  

strengths  and  challenges  in  the  ecosystem,  and  get  a  joint  understanding  among  key  ecosystem  actors  of  the  “state-­‐of-­‐the-­‐cluster-­‐ecosystem”  

3.  IdenHfy  in  collaboraHon  with  the  ecosystem  actors,  ways  to  solve  the  unique  ecosystem  issues  (eg.  CollaboraHon  between  entrepreneurs  and  large  enterprises)  

4.  Support  a  conHnued  implementaHon  of  the  recommendaHons  from  your  work  

www.clusterecosystems.com

CASE:  DESIGN2INNOVATE  

•  BACKGROUND  – Emerging  design  cluster  in  region  of  Southern  Denmark  

– Markets:  B2B,  B2C,  B2P  – “knowledge  cluster”  

•  Kolding  School  of  Design  &  University  of  Southern  Denmark  

– Different  cluster  support  iniHaHves  by  regional  and  naHonal  government  (entrepreneurship,  strategic  design,  research..)  

– CompeHng  iniHaHves  in  the  region    

Picture  here….  

40+  INTERVIEWS  

!!!"#$%&'()(#*&+&'(,&"#*,

SOME  OF  OUR  FINDINGS  STRENGTHS  •  Strong  knowledge  base  in  the  region  •  New  companies  emerging  •  Design  companies  collaborate  with  other  design  companies  on  solving  joint  

assignments  (network-­‐based  growth)  •  Regional  and  local  focus  on  Design:  Policy  /  Design  City  /  CEO  of  Design      

CHALLENGES  •  DefiniHon  of  design!  What  are  we  talking  about?  Design  as  a  tool  or  as  a  service/

product?  Who  is  in?  Who  is  not?  •  Sporadic  collaboraHon  between  ecosystem  actors  (entrepreneurs,  large  

companies,  uniersity,  Kolding  School  of  Design)  •  No  obvious  flagskip  company  (Lego=  Toys  for  kids)  

RECOMMENDATIONS  1.   Strenghten  collabora:on  between  actors  in  the  ecosystem  

–  Develop  a  joint  strategy  for  the  direcHon  of  the  cluster  –  Establish  a  neutral  cluster  organisa:on  to  facilitate  collaboraHon  between  actors  in  the  system  

–  Promote  collabora:on  with  other  clusters  in  the  region  (design  as  an  innovaHon  driver  in  eg.  food,  clean  tech  and  offshore  energy.)  

RECOMMENDATIONS  

2.   “Push”  the  use  of  design  thinking  into  regional  businesses  as  a  innova:on  driver  1.   Collect  info  from  other  countries  and  carry  out  peer-­‐

reviews  2.  Develop  a  “Design  exchange”  where  companies  and  

designers  meet  3.   Set  up  design  consulta:on  teams:  Mix  local  designers  

with  high-­‐brand  design  houses  =>  easier  access  to  local  companies  and  build  up  new  competencies  and  new  networks  

FINDINGS  3.   Strenghten  the  role  of  entrepreneurs  in  the  cluster  

– Make  sure  the  designers  are  visible  –  eg  an  annual  presHgious  award  

–  Increase  business  skills  among  designers  (business  plan,  pitch,  “read  your  customers  expectaHons”,  capital  needs,  current  industry  needs)  

FINDINGS  

4.   Strenghten  the  role  of  the  knowledge-­‐ins:tu:ons  and  promote  collabora:on  between  the  ins:tu:ons  4. More  focus  on  interna:onal  visibility  and  int.  

collabora:on  5.  Strenghten  the  role  of  the  students  in  the  cluster  and  

collaborate  om  matchmaking  students  and  regional  companies  (few  jobs  and  students  leave  the  region)  

FINDINGS  

5.   Strategic  design  as  a  tool  for  solving  global  challenges  –  Collect  info  from  global  strategic-­‐designhubs  and  idenHfy  future  partners  

–  Develop  /  test  1-­‐2  pilots  in  collaboraHon  with  other  clusters  –  and  use  design  as  the  tool  in  the  innovaHon  process    

SUM  UP  •  Clusters  in  regional  development  

–  Ecosystem  analysis  =>  recommendaHons  to  development  of  the  regional  clusters  

–  Discussions  with  network-­‐  /  cluster  organisaHons  –  New  strategic  direcHons  for  the  cluster  –  Bu8om-­‐up  process  –  New  opportuniHes  for  cross-­‐cluster  collaboraHon  (design  as  an  innovaHon  driver  in  energy,  offshore  and  food..)  

Want  to  know  more…?  –  www.clusterecosystems.dk  and  www.regx.dk  

Cluster Lab"""

Cluster Eco System Analysis""

Thit Juul Madsen, head of secretariat, D2i"#tci2014, Monterrey "

D2i – The Danish Design Cluster"

The Region of Southern Denmark"

Regional smart specialisation"

Welfare TechHealth- and Social Innovation""www.welfaretech.dk"

D2i - Design to innovate Design-Driven Innovation""www.d2i.dk"

CLEAN Sustainable energy""www.offshoreenergy.dk"

Offshoreenergy.dk Oil & Gas and Renewables""www.offshoreenergy.dk"

The value of design"

Design Management Institute 2013"

Design-Driven Companies outperfom S&P by 228% over a 10 year period according to the DMI Design Value Index"

0,0"

4,0"

8,0"

12,0"

16,0"

2006" 2007" 2008" 2009" 2010"

No design use"Strategic

Profitability"

A Swedish study of 300 companies over a 8 year period, shows up to 50% better profits for companies that use design."

Teknikföretagen 2011"

The Design Council Design Index shows the design aware companies has out-performed the FTSE 100 by more than 200% over the past decade."

Design Council

2007"

Erhvervs- og Byggestyrelsen 2008"

There is a 22% difference in value between companies using design as an integral part of innovation and development processes, and companies that only use design as styling and finish."

A Design"

To Design"

Strategic Design"

Strategic"Design"

Surrounding"World"

Resources" Strategy"Irrelevant"

Unfocused" Unrealistic"

Why in Southern Denmark?"Investors""

Businesses"Large & SMEʼs"

Innovation & "design consultancies"

Kolding School "of Design"

"University of "Southern Denmark"

Organizations"Regional authorities"

The partners behind D2i"

/  LEGO Group"/  Bjert Invest"/  Dong Energy"

/  Design School Kolding"/  University of Southern Denmark"

/  The Region of Southern Denmark"

D2i"

/  As a design cluster A formation of large and smaller companiesUniversity, business and trade schools and world class design school"

/  An innovation programme A large scale innovation programme embedding design capabilities"

The services D2i offer"

/  Design Updates"/  Design training programmes "/  Design workshops and seminars"/  Design consultations"/  Design Camps"/  Methods, tools and models"/  Research papers and reports" "

D2i - New Knowledge"

GUIDE /

Side 2

–

Til højre /Designkapacitetsmodellen

DESIGN CAPACITY MODEL– WHY?

The Design Capacity Model is developed in the D2i – Design to innovate project by Professor Poul Rind Christensen and Post Docs Susanne Jensen, Marianne Storgaard, Pia Storvang and Kiki Mikkelsen from the Uni-versity of Southern Denmark. The model is developed to help paint a picture of the use of design in companies. The model serves to give a systematic - but not complete - overview of a company’s potential for strengthening its innovative and competitive performance through design initiatives.

The strength of the Design Capacity Model is that it involves several dimensions to describe the design practice of the com-panies. In consequence there may be several ways to improve the design potential of the company. Thereby the model incorporates a dynamic perspective which means that the companies may work towards a desired level for their design practice.

PURPOSE & APPLICATION

The Design Capacity Model is based on 5 dimensions which measure how prepared the company is to bring design into play to supportdevelopment and growth of the company.

Additionally, the model includes the framework conditions the company is working under by measuring the company’s status. Together, the 5 criteria and this status form a general impression of the company’s framework con-ditions, its design management capacity and the use of design.

The Design Capacity Model cannot stand alone, but must be seen in connection with the impressions of the company that occur through interview(s), consultations or other contacts with the company. Also be aware that the choice of the contact person(s) will colour the picture.

The model has several applications. Firstly, it can be used to identify the company’s design management practice and to compare it with other companies. Secondly, it can be used as a dialogue tool, at e.g. design consultation or other development activities. Thirdly, the model can be used as basis for discussions in the company about how the company wish to improve its design capacity in the next few years. This is done through measuring of status and of wishes for the future. Furthermore, the model enables measuring the current use of design and the desired future.

1. Design awarenessWho are the design thinkers?

All employees see design as an important factor

Design is presentin specific departments

Both internaland externaldesigners

Internaldesigners/designdepartment

Externaldesignersengaged

Nodesignersemployed

Technologydriven innovation

Top management - on the strategic agenda

Supplyerdriven innovation

Design is seen as a possibility

Market (user/customer)driven innovation

No one

Design driven innovation(vision, market og technology)

5. Design capabilitiesDesign capabilitiesoriginate from?

4. Innovation driversWhat drives the

innovation processes?

3. Engagement of usersHow are users engaged?

2. The importance of design in internal processes

Design is used in?

No engagement

Not important

Product and service develop-ment, including finish and styling

Production processes

Innovation projects

Strategy andmanagement

Marketing

User surveys and user feed-back

User observationsand focus groups

Users are engaged inprocesses in the company

User communitiesand lead users

D2i © 2014

Figures /Examples of 6 different companies’ design capacity models.

D2i - New Competencies"

Connecting the dots"

The right foundation and good results"

Other clusters"/  CLEAN"/  Welfare Tech"/  OffshoreEnergy.dk

Companies"/  More than 300 SMEs (over 1.000 persons)

participating in:"/  Design introductions"/  Design Camps"/  Sustainability processes"/  Research projects

Research & Education"/  University of Southern Denmark"/  Design School Kolding /  University College South /  Business Academy South

Funding & Captial"/  Region of Southern Denmark Growth Forum"/  Bjert Invest

In the future also:!/  Interreg 5A"/  Horizon 2020"/  Creative Europe"/  COSME

Public"/  Region of Southern Denmark /  Invest in Denmark /  Danish Design and Architecture Initiative"/  Municipality of Kolding"/  Municipality of Billund

Companies Utilise Design"

54%"46%"

Companies that utilise design"

68%"

32%"

The percentage of companies in the Region of Southern Denmark that utilise design has risen from 54 per cent to 68 per cent from 2010 to 2013.

2010" 2013"

Source — The Region of Southern Denmark, 2014 "

Changing expectations"

71"

39"

57"

35"

44"

59"

31"

35"

8"

21"

0" 20" 40" 60" 80"

An increased turnover"

More employees"

Greater exports"

To make new investments"

To launch new products and services"

Companies that utilise design"

Source — The Region of Southern Denmark, 2014 "

Companies in the Region of Southern Denmark who utilise design believe themselves to perform better than companies that do not utilise design.

Percentage of companies in the Region of Southern Denmark who expect:

CASE: ISOVER"

Insulation materials"Used strategic design to: "/  Move from product sales to

project sales"/  Create new revenue streams on

services and consulting"/  Move up the value chain"

"

ISOVER"Headquarter" Vamdrup"

Established" 1935"

Emloyees" 205"

Turnover (2012)" EUR 46 mio."

CASE: EASYFOOD"

Convenience foods"Used strategic design to:"/  Engage employees in product

development "/  Divide products into “collections”"/  Differentiate products on quality

and price"/  Reduced waste and increased

revenues"/  Increase local job creation "

EASYFOOD"Headquarter" Kolding"

Established" 2000"

Emloyees" 103"

Turnover (2012)" EUR 24 mio."

Whatʼs next for D2i?"

D2i is moving into a new phase – Version 2.0"

"

Developing from project to cluster organisation"

"

The role of D2i is strategic planning and coordinating with all the players in the design cluster"

"

Establishing partnerships and securing funding"

Tools to move forward"

Apply design as tool for growth""Embed design capabilities in SMEs""Connect design supply and demand""Create innovation platforms""Create at strong design environment around the design campus""Communicate the value of design""

A strategy for the future"

Internationalisation"

We are interested in international collaborations and co-operation projects""In areas where design can make a difference ""To help foster innovation and drive change"""

Curious about strategic design?"

www.D2i.dk "

Get in touch"

Thank you!"

thit@d2i.dk"www.d2i.dk"

DISCUSSION  

 How  relevant  is  the  model  for  you?  

   

THANK  YOU!