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The importance of design in business practices of czech companies

Abstract

In the context of discussions about the role of innovation in business policy and marketing activities, questions of design to participate in the innovation success are often considered. The main aim of this paper is to comprehensively review the sources of design management. Furthermore, the study shows current situation in Czech business. This paper also attempts to analyse and identify the awareness of companies of various sizes concerning the importance of design. The primary aim of research was to investigate companies´ concern for design in relation to other factors: price, quality and reliability. A comprehensive review of the extant literature and journals identified several sources of design approach for Czech companies. The research consists of two main parts. Firstly, a method of smart internet Google SpreadSheets questionnaires designed by the authors was used. Total of 168 entries collected from 305 addressed respondents were used in the research. In the second part of research, the results were analysed using quantification and by means of seeking a mutual dependence. The results obtained were subjects to a statistical study. The results of the research have offered interesting findings. It was discovered that design represents a very important competitive factor that influences firms’ final decision. On the other hand, quality, reliability and price are still perceived as more interesting factors of innovation. Briefly, design is not likely to be perceived as the main innovation factor in the Czech Republic. This paper identifies several interesting aspects regarding design within Czech companies, including the mindset of management.

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The importance of design in business practices of czech companies

Author: Kramoliš, Jan
Publisher: Technická Univerzita v Liberci
Year: 2015
Source: https://dspace.tul.cz/bitstreams/feeff5f4-7522-4d65-a952-58329945e159/download
151
2, XVIII, 2015
DOI: 10.15240/ ul/001/2015-2-011
Ma ke ing & T ade
In oduc ion
As a esul o apid changes and a g owing
compe i i eness o companies a p esen ,
design is becoming one o he key ins umen s
o inno a ion and also he key ins umen o
companies´ pe o mance [8], [1]. Fo he eason
o ha ing p oduc s mo e and mo e echnically
alike, i is he design ha is becoming an
ins umen o compe i i eness as well as he
c i e ion o decision making o fi nal consume s.
Inno a ion by U abe, Child & Kagono [19]
consis s o he gene a ion o a new idea and i s
implemen a ion in o a new p oduc , p ocess, o
se ice, leading o a c ea ion o pu e p ofi o
he inno a i e business en e p ise.
Design managemen is a e m o which
he e is no clea -cu defi ni ion. Howe e , i is
e iden ha his e m s ands o connec ing wo
fi elds – design and managemen .
Design by B uce & Bessan [3] is
essen ially he applica ion o human c ea i i y
o a pu pose – o c ea e p oduc s, se ices,
buildings, o ganiza ions and en i onmen s
which mee people’s needs. I is he sys ema ic
ans o ma ion o ideas in o eali y.
In he con ex o inno a ions, we a e able o
speci y h ee in e p e a ions o he e m design [18]:
 Design is a angible ou come.
 Design is a c ea i e ac i i y.
 Design is he p ocess by which in o ma ion
is ans o med in o a angible ou come.
Fai head [18] e e s o ou di e en le els o
unde s anding o design:
 Design is seen as “s yling”.
 Design is abou be e p oduc s.
 Design sha es he in e ace be ween
company and audiences.
 Design is in eg a ion: A whole p ocess.
The connec ion o e ms design and
co po a e is used by Vysekalo á & Mikeš [21].
In he poin o iew, he co po a e design is
a pa o isual iden i y and i is a se o isual
cons an s ha is used in in e nal and mainly
ex e nal communica ion. I includes ollowing
ac o s: name o he company and he way o
i s p esen a ion, company logo, p oduc b ands,
p omo ional i ems and p in ed ma e ials, sc ip
and colou , s uc u e and nomencla u e o
he buildings and in e io s, employees wea ,
con aine g aphics, gi i ems, e c. The g aphical
image o hese componen s should be included
in a so-called design manual. Design manual is
a summa y o ules and ecommenda ions o
p in ed and elec onic isual p esen a ions o
he company, e.g. g aphical ules, layou o he
documen s, ules conce ning usage o oun s,
colou s, logo and i s a ia ions, company
documen s, and he like.
By he Ka h yn Bes [5], in he a ea o design
managemen a wide a ie y o pe spec i es
exis ha efl ec he ich a ay o indi iduals,
p o essions and con ex in ol ed. Hollins [10]
defi ne design managemen as he o ganisa ion
o he p ocesses o de eloping new p oduc s
and se ices.
B uce & Bessan [3] iden i y undamen al
issues o design managemen :
a) How do pa icula pe spec i es fi in o he
design p ocess and wha hey can b ing?
b) How can design p o essionals suppo
hese di e en con ibu ions?
c) How olls/ echniques a e a ailable o help
make his con ibu ion?
d) How can e ec i eness o he design
p ocess be measu ed?
e) How can he p ocess be imp o ed?
Acco ding o Design Managemen Ins i u e
in Bos on [6] defi ni ion encompasses Design
managemen he ongoing p ocesses, business
decisions, and s a egies ha enable inno a ion
and c ea e e ec i ely-designed p oduc s,
THE IMPORTANCE OF DESIGN IN BUSINESS
PRACTICES OF CZECH COMPANIES
Jan K amoliš, Pa la S aňko á, Michal Rich
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152 2015, XVIII, 2
Ma ke ing a obchod
se ices, communica ions, en i onmen s, and
b ands ha enhance ou quali y o li e and
p o ide o ganiza ional success. On a deepe
le el, design managemen seeks o link design,
inno a ion, echnology, managemen and
cus ome s o p o ide compe i i e ad an age
ac oss he iple bo om line: economic, social/
cul u al, and en i onmen al ac o s. I is he a
and science o empowe ing design o enhance
collabo a ion and syne gy be ween “design”
and “business” o imp o e design e ec i eness.
The scope o design managemen anges om
he ac ical managemen o co po a e design
unc ions and design agencies, including design
ope a ions, s a , me hods and p ocesses— o
he s a egic ad ocacy o design ac oss he
o ganiza ion as a key di e en ia o and d i e
o o ganiza ional success. I includes he use o
design hinking—o using design p ocesses o
sol e gene al business p oblems.
The e is a s ong link be ween ma ke ing and
design managemen which men ioned Go b [7]
and also Melewa , Dennis, Ken [13], and Adi &
Pascu [2] p esen s in hei pape he impo ance
o a logo as a g aphic elemen o suppo
a co po a e iden i y. They desc ibed he basic
idea: Tha he logo design is a c ea i e wo k
which allows o a company o be seen h ough
a symbol as a isual and g aphic message.
Design o e s ou powe s o di ec ions
h ough which o c ea e alue in managemen ,
and hese ou di ec ions can be seen as
a sys em wi h he ision in he cen e acco ding
o Mozo a [14], [15], [16]. The design alue
model and i s applica ion h ough he Balanced
Sco e Ca d oolki p o ide a common language
o designe s and manage s and his can help
he design p o ession e ec a change om
p ojec -based o knowledge-based.
1. Theo e ical Backg ound
Walke [22] deals wi h a specifi c fi eld o
managemen . He p esen s he di e ences
be ween manage s and designe s – see Tab. 1.
The di e ences be ween he manage s and
designe s a e mainly in he a ea o pe sonali y
speciali ies, habi s o hinking and wo king, and
educa ion backg ound.
Cha ac e is ic Manage s Designe s
Aims
Long e m
P ofi s/ e u n
Su i al G ow h
O ganiza ional du abili y
Sho e m
P oduc /se ice quali y
Re o m
P es ige
Ca ee building
Focus People Sys ems Things
En i onmen
Educa ion
Accoun ancy
Enginee ing
Ve bal Nume ical
G a s A Visual
Geome ic
Thinking s yle
Se ialis Linea
Analysis
P oblem o ien ed
Holis La e al
Syn hesis
Solu ion led
Beha iou Pessimis ic
Adap i e
Op imis ic
Inno a i e
Cul u e Con o mi y
Cau ious
Di e si y
Expe imen al
Sou ce: [22]
Tab. 1: Di e ences be ween manage s and designe s
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Ma ke ing & T ade
Design managemen acco ding o Ka h yn
Bes [5] includes h ee main phases:
1. Managing design s a egy – he aim is he
iden ifi ca ion and looking o condi ions
mos sui able o ha ing success ul
design managemen . This includes mainly
implemen a ion o design in o o ganiza ion
s a egy, iden ifi ca ion o oppo uni ies o
design, in e p e a ion o will and needs o
he cus ome s, and looking o benefi s o
design o business;
2. Managing design p ocess – i is he ealiza ion
o design i sel and making i isible. I helps he
o ganiza ion iden i y oppo uni ies o pa icula
p ojec s concen a ing on design, making
a c ea i e eam, isual communica ion o he
o ganiza ion and p esen ing i s ideas ou wa d;
3. Managing design implemen a ion –
his phase concen a es on pa icula
p ojec managemen in p ac ice, design
specifi ca ion, speci ying he le el o
coope a ion and e hical esponsibili y. The
e alua ion o he p ojec o ms an essen ial
pa o he implemen a ion ha p o okes
posi i e esponse ega ding design
e fi ciency.
Ve gan i [20] in oduces he e m design-
d i en inno a ion. He also defi nes h ee phases
ela ed o inno a ion managemen by means o
design:
a) lis ening,
b) in e p e ing,
c) add essing (see Fig. 1).
In he fi s phase ‘lis ening’, he e is lis ening
o he key g oups, i.e. in e p e e s. In e p e e s
a e people who p edic u u e de elopmen o
cus ome s’ needs by means o hei own esea ch.
The aim o ‘lis ening’ is o fi nd he key g oups o
in e p e e s and p edic benefi s o hei hough s
o business. The main key g oups acco ding o
Ve gan i [20] a e a is s, cul u al o ganiza ions,
sociologis s, an h opologis s, ma ke e s, e ail
and deli e y fi ms, people, designe s, fi ms
in o he indus ies, de elope s o pionee ing
p ojec s, echnology supplie s and esea ch
and educa ional ins i u ions. The second phase
is ‘in e p e ing’. I s pu pose wi hin he company
is o c ea e such condi ions ha would p opose
a mo ion. The o ganiza ion communica es wi h
he in e p e e s and in eg a es hei ideas wi h
echnology and possibili ies o he company. The
hi d phase is ‘add essing’. This means making
such condi ions o be able o inno a e, and o
discuss he a ionali y and a ac ions o he
change.
Fig. 1: Phases ela ed o inno a ion managemen by means o design
Sou ce: [20]
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154 2015, XVIII, 2
Ma ke ing a obchod
B uce & Bessan [3] also s a e he majo
benefi s o design managemen :
 Inc ease p ofi by inc easing sales o by
dec easing manu ac u ing cos s.
 Inc ease ma ke sha e.
 Gain a compe i i e ad an age.
 Re amp ma u e and ailing p oduc s.
 P o ide a s a egy o g ow h.
 Design is a way o launching a new p oduc
o se ice.
The UK Design Council ocuses on he
con ibu ion made by design and p esen s mail
esponses [3]:
 91% el i imp o ed he image o hei
company.
 90% el i imp o ed quali y o hei p oduc s.
 88% el i helped hem communica e mo e
e ec i ely wi h hei cus ome s.
 84% el i helped inc ease p ofi .
 80% el i helped in o new ma ke s.
 70% el i educed cos s.
Mazo a [15] deals wi h opic Design as
a compe i i e edge. Au ho measu es impac o
design on p oduc , classi ying he easons o
launching new p oduc s and he aci knowledge
o design. This esea ch can be use ul o
p o essional design manage s because i
isola es a iables ha a e pe inen o explain
how design ans o ms managemen p ocesses
and which p ocess i changes.
Acco ding o B uce & Coope & Vazquez
[4] small companies ha e a ange o business
needs o design, bu ha e a ying le els o
awa eness and compe ency o manage design
e ec i ely. Two di e en ypes o companies
could be disce ned om he s udy: ‘confi den ’
and ‘app ehensi e’ design use s. The o me
companies had had expe ience wi h design,
ypically in p e ious wo k expe ience and he
la e had li le awa eness o design. Fo he
inexpe ienced design companies, a ious
ac o s we e iden ifi ed ha assis ed he
e ec i e design ou come: he ela i e simplici y
o he p ojec , possession o s ong b iefi ng
skills acqui ed in a di e en discipline, sou cing
skills, such as pe sonal ecommenda ion o m
a us ed in e media y, and e alua ion skills
ob ained h ough an in e media y o acqui ed in
a di e en discipline.
2. P oblem Fo mula ion
The basic aim o esea ch is o in es iga e
he impo ance o design in Czech companies
om he managemen o businesses´ poin o
iew. This pape also a emp s o analyse and
iden i y he awa eness o companies o a ious
sizes conce ning he impo ance o design.
The emphasis is pu on he issues ela ed o
he co ec a ge ing o such ac i i ies, which
is closely ela ed o he impo ance o design
wi hin companies. Finally, based on an analysis
o he da a collec ed, he s udy shows he
cu en si ua ion in Czech business.
2.1 Resea ch Me hods
The esea ch consis s o wo main pa s. In
he fi s pa o esea ch done om Janua y
o Ma ch 2014, a me hod o sma in e ne
ques ionnai es was used. I was designed by he
au ho s o he pape based on he expe ience
om hei p e ious esea ch.
The p ima y aim was o in es iga e
companies´ conce n o design in ela ion o
o he ac o s. This was done by asking specifi c
ques ions. The seconda y aim was o in es iga e
companies´ conce n o he impo ance o
design i sel .
In he second pa o esea ch, he esul s
we e analysed using quan ifi ca ion and by
means o seeking a mu ual dependence. The
ques ionnai e o m con ains 16 ques ions. The
esponses we e di ided in o se e al ca ego ies
wi h common ea u es. In o al 168 en ies
collec ed om 305 add essed esponden s ook
pa in he esea ch. The esul s ob ained we e
subjec s o a s a is ical s udy.
The esul s we e subjec s o c i ical
assessmen and a syn hesis wi h al eady
disco e ed and published da a (seconda y
da a) was ca ied ou .
The able below shows he occupa ional
s uc u e o esponden s who pa icipa ed in
he e- esea ch.
The able abo e indica es ha B2B
and B2C we e almos equally ep esen ed
(53.5% and 46.5%) in he in es iga ed a ea.
The ze o sha e in he esponden s uc u e
is ep esen ed by B2G business. This means
ha he majo sha e should jus ha e B2C and
B2B sec o . Fi s ly, a lis o selec ed sui able
subjec s was done. Then, his lis was sen
o be fi lled in h ough he in e ne esea ch
ques ionnai es.
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2, XVIII, 2015
Ma ke ing & T ade
Venn diag am isualisa ion was used o
a be e illus a ion (see Fig. 2). I is e iden
ha some companies ope a e in bo h fi elds,
whe eas ce ain numbe o companies ope a es
in one fi eld only.
The Figu e 3 shows he sec o s s uc u e o
esponden s, in which hey ope a e.
The sample which has been used o
he pu pose o his pape con ained 23%
se ice esponden s, 15% ade esponden s,
10% building esponden s, 13% enginee ing
esponden s, 4% ood indus y esponden s,
1% ex ile indus y esponden and 34%
esponden s ha ope a e on he o he sec o s.
ela i e (%) ma ke o ien a ion
Subcon ac o 26.8
B2B
49.8%
P oduce 30.1
Se ice p o ide 29.4
Me chan 13.7
ela i e (%) ma ke o ien a ion
Subcon ac o 9.7
B2C
50.2%
P oduce 33.8
Se ice p o ide 35.3
Me chan 21.1
Sou ce: own
Tab. 2: Ta ge g oup cha ac e is ics
Fig. 2: Venn diag am a ge g oup cha ac e is ics
Sou ce: own
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156 2015, XVIII, 2
Ma ke ing a obchod
3. P oblem Solu ions
The cu en s a e o he impo ance o design
in a business concep o Czech companies
in subjec s examined on he Czech ma ke
is cha ac e ized by he ollowing que ies. In
he case o a majo i y consensus, he da a
a e quan ifi ed by a ela i e indica o and
supplemen ed by impo an fi ndings in he o m
o a commen . In he case o agmen a ion o
answe s, only he mos impo an fi ndings in he
su eyed a ea a e lis ed.
Based on he p oblem solu ion abo e, wo
hypo heses we e es ablished. Hypo heses we e
es ed on he le el o signifi cance o α = 0.05. The
H1 hypo hesis was a subjec o he Pea son´s
chi-squa ed 2 es o independence [12] o
a con ingen able, using IBM SPSS S a is ics
so wa e. P- alue and Excel XLS a is ics5
p og amme we e used o s a is ical e alua ion
o he H2 hypo hesis.
The alue o he es -s a is ic is
2
11
c ij ij
ij ij
OE
xE



(1)
2 = Pea son’s cumula i e es s a is ic;
Numbe o employees B2B only B2C only B2C and B2B
(bo h only) Rela i e (%)
1–10
(Mic o) 9 18 1 16%
11–50
(Small) 10 11 8 17%
51–200
(Medium-sized) 15 15 6 22%
200 + (Huge/big) 31 22 22 45%
Sou ce: own
Tab. 3: Ta ge g oup cha ac e is ics: Business size dis ibu ion – Numbe o employees
Fig. 3: Ta ge g oup cha ac e is ics: Ope a ing sec o s
Sou ce: own
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Oi = an obse ed equency in a gi en
con ingency able;
Ei = an expec ed ( heo e ical) equency,
asse ed by he null hypo hesis;
and c a e he numbe o ows and columns
in he able, espec i ely. [9]
Then a s anda d de ia ion was calcula ed.
This enabled us o see up o wha ex en ypical
cases a y wi hin he se o examined numbe s.
3.1 Design wi h Respec o he
Ma ke Type
Conce ning he e alua ion o design as one o
he mos impo an ac o s in he company, he
ollowing hypo heses we e defi ned.
H1
0: Re e ing o he impo ance o design
in ela ion o he success a e o he company
he e is no di e ence be ween he companies
ha ing business in B2B and B2C ma ke s.
H1A: Re e ing o he impo ance o design
in ela ion o he success a e o he company
he e is di e ence be ween he companies
ha ing business in B2B and B2C ma ke s.
The fi gu e om abo e demons a es he
impo ance o design wi hin he company
acco ding o i s fi eld o business. I is e iden ha
ac oss he spec um ‘ ai ly impo an ’ p e ails.
Acco ding o hese numbe s, companies in B2B
ma ke only a e awa e o a g ea impo ance
o design. Sligh ly lowe numbe s a e eco ded
wi hin companies in B2C ma ke . Companies
ha ing business in B2B and a he same ime in
B2C ma ke s ook las place. Ex eme numbe s
a bo h poles, i.e. ‘ex emely impo an ’ and
‘comple ely unimpo an ’, a e e y a e.
The nex pa ocuses on he impo ance
o design om companies’ poin o iew. In
he ollowing Pea son´s chi-squa e es o
independence, he esea che s s i ed o e alua e
he impo ance o design om companies’ poin
o iew. The c i e ion o e alua ion conce ning
he impo ance o his ac o consis ed o ou
le els: ex emely impo an , ai ly impo an , no
e y impo an , and comple ely unimpo an .
Based on he hypo hesis when p- alue
a 0.05 signifi cance le el was calcula ed wi h
esul o 0.756443221, is his hypo hesis H0
ejec ed. I means ha we canno claim ha
he e is no di e ence among he companies
om B2B o B2C ma ke s wi h espec o he
impo ance o design.
Fig. 4: G aphical eco d o he e alua ion ega ding he impo ance o design om
he pe spec i e o companies and hei business ac i i ies in he ma ke s
Sou ce: own
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158 2015, XVIII, 2
Ma ke ing a obchod
F om he isual ep esen a ion o
espec i e ac o s conce ning he impo ance o
companies´ ac i i ies in he ma ke s, a simple
spide g aph analysis was d awn up. The
spide analysis includes c i e ia acco ding o
which he companies conside he impo ance.
These a e quali y, eliabili y, design and p ice.
Low numbe s show insignifi can impo ance
(1 – comple ely unimpo an ), whe eas
high numbe s ep esen g ea impo ance
(4 – ex emely impo an ). This efl ec s deg ees
o impo ance conce ning he e alua ion o
in e nal ac o s based on a well hough -ou
indica o sys em. The ac o a ing enables us
o answe he ollowing ques ions: ‘Wha a e he
mos impo an ac o s wi hin companies?’ and
‘Wha is he si ua ion like ega ding he selec ed
ac o wi hin a company?’ A s uc u e o he
ac o - a ing model is o be ound in Figu e 5
below.
Fo a mo e p ecise ep esen a ion o he
measu ed esul s, he axis numbe s in he
spide g aph we e adjus ed a numbe in e als
2.0 o 4.0. This spide cha ep esen s ha
in he ma ke B2C only, quali y is he mos
impo an ac o wi h he alue o 3.56, hen
he e is eliabili y wi h he alue o 3.46, p ice
wi h he alue o 3.20, and design wi h he
lowes alue o 2.92.
In he ma ke B2B only, quali y wi h he alue
o 3.69 is he mos impo an ac o oge he wi h
eliabili y wi h a e y simila alue o 3.68. The
(Pea son) Chi-squa e Tes
(Fo independence o impo ance o design and yp o ma ke
H0: Va iables a e independen (no in e ac ion be ween a iables)
H1: Va iables a e dependen (in e ac ion be ween a iables)
Chi-squa e 3.405907985
DF 6
p- alue = 0.756443221
Sou ce: own
Tab. 4: Sc eensho o H1 Chi-squa e Tes
Fig. 5: Spide cha ega ding he impo ance o espec i e c i e ia
Sou ce: own
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Ma ke ing & T ade
ac o o p ice eached a lowe alue o 3.37 and
design is again o lowes impo ance wi h he
alue o 2.76. In he companies ha ha e hei
business ac i i ies in B2B and B2C ma ke s,
he si ua ion is almos iden ical. Quali y is again
he mos impo an ac o wi h he alue o 3.77,
hen eliabili y wi h he alue o 3.72. P ice is
a he alue o 3.31 and design is again o he
lowes impo ance wi h he alue o 2.92.
3.2 Design wi h Respec o he
Company Size
Fo he pu pose o esea ch concen a ing on
he impo ance o design compa ed wi h he
company size, he ollowing hypo heses we e
defi ned.
H20: Re e ing o he impo ance o design
in ela ion o he success a e o he company
he e is no di e ence among small, medium-
sized and la ge businesses.
H2A: Re e ing o he impo ance o design
in ela ion o he success a e o he company
he e is di e ence among small, medium-sized
and la ge businesses.
Conside ing he e alua ion o design
i sel as one o he ac o s ha we e s a ed
by he companies in he g aph abo e, we a e
able o no e he ollowing. Small businesses
wi h 1–10 employees and medium-sized
businesses wi h 11–50 employees as well as
la ge businesses wi h 51–200 employees a e
o a e y simila opinion. Acco ding o hei
opinion, he s a emen ha design is ela i ely
impo an occu s mos o en. A small numbe
o businesses conside design ex emely
impo an , no e y impo an o comple ely
unimpo an . A e y simila si ua ion is in la ge
businesses wi h 201 employees and mo e when
50 businesses conside design ai ly impo an .
The en y ‘ex emely impo an ’ is insignifi can
and ‘no e y impo an ’ is o almos iden ical
low alue as ‘ex emely impo an ’.
Based on he hypo hesis when p- alue a
0.05 signifi cance le el was calcula ed wi h esul
o 0.143148809, is his hypo hesis H0 ejec ed.
I means ha we canno claim ha he e is no
di e ence among he companies ega ding
he dependence on numbe o employees and
he a i ude owa ds he impo ance o design.
Spide g aph analysis ega ding isual eco d
o he e alua ion o espec i e c i e ia om he
pe spec i e o companies´ size was made.
Fig. 6: G aphical eco d o he e alua ion ega ding he impo ance o design om
he pe spec i e o companies´ size
Sou ce: own
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