THE CHANGED ROLE OF DESIGN

THE CHANGED ROLE OF DESIGN 1 February 2010 Provoke Design Oy/Ltd. Christian Aminoff, Timo Hänninen, Mikko Kämäräinen and Janne Loiske This report was commissioned by the Ministry of Employment and the Economy, as part of the Strategy for the Creative Economy. The feasibility study and its documentation were implemented by Provoke Design Oy/Ltd. Interpretations of interviews express the opinions of the authors. Any errors herein are solely due to the author.

Contents 1. Summary 3 2. TERMS AND CONCEPTS 4 2.1. Open Innovation 4 2.2. Design Thinking 5 2.3. Crowdsourcing 7 2.4. Co-creation 8 2.5. Social Innovation 9 2.6. Service Design 9 3. BACKGROUND 10 4. METHODS 13 4.1. Workshops 13 4.2. Case studies 13 4.3. Interviews 13 4.4. Analysis and grouping of results 14 5. CASE STUDIES 17 5.1. A system for innovations in medical care Kaiser Permanente (HMO) 17 5.2. Development of the business idea: Sermo 20 Event permit procedure, Helsinki: the user-oriented design of public 5.3. services 21 5.4. Innovations of the supply chain in trade: Kraft and Safeway 22 6. INTERVIEWS 23 6.1. Experienced roles and change of design 24 6.2. Difficulty of terms 25 6.3. Role of design 26 6.4. Internationality 31 6.5. Service design 32 6.6. Education and training 35 6.7. Innovations 38 6.8. Public sector 41 Relationship to economic success and the desired status as regards 6.9. enterprises 45 6.10. Perception of time, and time window of future visions 47 7. CONCLUSIONS 49 7.1. Change 49 7.2. Challenges 49 7.3. Proposals: Promotion of the Sector 50 7.4. Proposals: Education and training 50 7.5. Proposals: Public sector 50 7.6. Proposals: Enterprises 51 7.7. Discussion 51 2 / 52

1. Summary The role of design has changed significantly in the wake of the recession. The Muotoilu 2005! (Design 2005!) programme facilitated the rapid progress of a transition already underway, and created a basis for research on design. At that time, new, changed roles were developed alongside the old, rather than supplanting them. For example, the scope of design was expanded from aesthetics to usability and product branding. The programme s follow-up group regarded the continuity of the development process underway as critical. Since the programme s implementation, a new perspective on changes in the role of design has emerged around the world. This shift in perspective is due to climate change, globalisation and the global recession. The aim is to apply design-related approaches and methods outside the field of product and service design, as a form of expertise in multi-professional innovation. This work is focused on areas such as user-oriented innovation in business activities, organisations or in meeting social challenges. Design thereby has a plethora of roles, for example in terms of user involvement in development activities or acting as a visual interpreter between various organisations and stakeholders. Other roles include the organisation of brainstorming sessions and the creation of solution prototypes as services. This novel way of utilising design is termed Design Thinking. As during previous transitions, this will supplement rather than replace old roles. However, a new aspect lies in the fact that developing expertise in this role has been globally considered an opportunity widely available to non-designers as well as designers. Design Thinking is taught at educational institutions within various sectors, as an innovative approach and an interdisciplinary subject. In this feasibility study, case studies, workshops and interviews were applied in discerning the opinions of those who work closely with design including users on the current status of design and the related change needs in Finland. A number of results were obtained. The following are examples of issues requiring action: A clear gap remains between enterprises the number of leading experts in design is small. In addition, many enterprises have yet to go through the previous transition, particularly in the domestic markets. Design offices have been slow to internationalise. Overshadowed by product design, service design has failed to develop. Although education is in transition, Aalto University alone will not be sufficient. The pace of change is rapid. Some interviewees doubted whether Finland would be able to maintain a leading position in this new role. The following begins with a clarification of the concepts and terms used by the interviewees and a description of the feasibility study s background. Two classification models were used to describe the various roles played by design and the related changes. These are presented at the end of Chapter 4. Case studies on the consequences of change, documented for the report, have been presented in a separate chapter. The summary of the workshops is followed by a summary of the interviewees' opinions on the current role of design and the changes needed. On occasions, these change needs turned out to be surprisingly profound. The thematic areas of the interviews have been discussed in separate chapters. A summary is provided at the beginning of each chapter, followed by quotations from the interviews. The report is concluded by the authors' opinion on the transition underway and proposals for further measures, based on the workshops and interviews. 3 / 52

2. TERMS AND CONCEPTS A number of concepts and terms arose in the interviews. The contents of these are briefly described below. Many concepts still lack a generally accepted Finnish translation. In the interviews, the changing role of design was often associated with a more profound transition in innovation for example, rather than technological innovations, or in addition to them, the interviewees considered innovations in processes, organisations and operating models to be necessary. They associated design with abstract issues lying outside products: user-orientation and innovation methods. Design s role was viewed as one type of expertise among many, manifesting itself in the phenomena presented below for instance, as an interpreter of open innovation, between technology, marketing, users and various organisations. 2.1. Open Innovation Open innovation is a term coined by Professor Henry Chesbrough, who works at the Open Innovation Center, UC Berkeley. According to Chesbrough, open innovation involves the use of purposeful inflows and outflows of knowledge, in order to accelerate internal innovation and expand the markets for the external application of innovation. 1 As a result, companies have begun seeking other ways of increasing the efficiency and effectiveness of their innovation processes. For instance, this is being done through an active search for new technologies and ideas outside the firm. Another method involves cooperation with suppliers and competitors, in order to create customer value. An important area of this lies in the further development or out-licensing of ideas and technologies which do not fit in with the company s strategy. As an operating model, open innovation meets these challenges. Open innovation deals with research and development as an open system. Such a system defines what external knowledge should be utilised in the company's activities, and what internal knowledge should be outsourced. The opposite idea, closed innovation, limits the use of internal knowledge to inside the enterprise and eschews the use of external knowledge. Open innovation is distinct from the Open Source development model, which is based on cooperation and initiated and concluded by volunteers. 1 CHESBROUGH, H (2006), Open Innovation: Researching a New Paradigm 4 / 52

2.2. Design Thinking Design Thinking is a creative process or approach involving the search for new prospective solutions. Rather than focusing on the improvement of existing solutions, this approach analyses challenges and the potential for the discovery of new, user-oriented solutions meeting such challenges. Business schools tend to focus on inductive thinking (based on directly observable facts) and deductive thinking (logic and analysis, typically based on past evidence). Design schools emphasize abductive thinking imagining what could be possible. This new thinking approach helps us challenge assumed constraints and add to ideas, versus discouraging them. 2 A.G. Lafley CEO, Procter & Gamble Design Thinking is often described as the ability to combine empathy, creativity and rationality in order to meet user needs more effectively and to enable the success of emerging, new ideas. As such, Design Thinking is a creative process, based on constructing and synthesising ideas rather than de-constructing them. The diagram below presents a macro-level perspective on Design Thinking.??? Divergence Analysis Needs? Brainstorming Synthe sis Observation Solution Convergence A simplified presentation of Design Thinking Generally speaking, Design Thinking is more reminiscent of an approach or cultural way of thinking than a model or process see below. (A simplified model, based on the work of Tim Brown, Michael Barry, Sara L. Beckman et al.) 2 LAFLEY, A.G. (2008), The Game-Changer: How You Can Drive Revenue and Profit Growth with Innovation 5 / 52

In Design Thinking, since ideas are not evaluated or rejected during the early phases of brainstorming, fear of failure is eliminated and participation encouraged in the brainstorming and prototyping phases. Since it leads to creative solutions, lateral, outside-the-box thinking is encouraged during these processes. Organisational and management theories have viewed Design Thinking as forming part of the A/D/A (architecture/design/anthropology/) approach. Andrew Jones has stated that the A/D/A model is typical of innovative, human-oriented enterprises, where it has replaced more traditional M/E/P (mathematics/economics/psychology) models. Jones has analysed enterprises such as Southwest Airlines, Whole Foods, Starbucks and Google. 4 Design Thinking applies design methods to problem solving, including outside the field of industrial design itself. Such methods involve user-oriented design and the creation of new ideas, visual communications, synthesis and prototyping. But the issue to be resolved typically involves something other than a product it may be a service, or an organisational or social challenge. The term 'design thinking' has gained in popularity because it makes it easier for those outside the design industry to focus on the idea of design as a way of thinking about solving problems, a way of creating strategy by experiencing it rather than keeping it as an intellectual exercise, and a way of creating and capturing value. Design thinking is more than a methodology. Design is a cultural way of thinking. It's important to understand its power, commit to evolving your culture, even restructuring the company, resourcing and rewarding those who practice design thinking. You can no longer tolerate those who shut down design thinking. We have to get rid of the devil's advocates and experts who own their domain to the detriment of innovation. 5 David Burney Vice President of Brand Communications + Design, Red Hat 3 De BONO, E (1992), Serious creativity: using the power of lateral thinking to create new ideas. HarperBusiness 4 Dr JONES, A (2008), The Innovation Acid Test. Axminster: Triarchy Press 5 http://www.redhat.com/magazine/019may06/features/burney/, retrieved on 10 November 2009 6 / 52

2.3. Crowdsourcing Crowdsourcing refers to outsourcing the tasks of an enterprise to its customers. The customer is included in the processes, generating added value for the enterprise (and for him or herself). In most cases, the customer obtains only a modest financial reward from crowdsourcing. There are multiple Finnish translations for this term, which was originally coined by journalist Jeff Howe in 2006. Howe presented a new way of understanding how large crowds can be exceptionally productive and creative when given the opportunity to gather around something they find interesting. As an example, he cited the istock-photo, which has radically changed the way photographs are sold. Peer recognition, or granting the customer visibility in an environment meaningful to him or her, can be used as a means of motivation. Other such means include learning anew and having fun or the opportunity to participate in interesting activities on one s own initiative. Success depends on identifying people who are able to generate target-oriented results. Equality, fairness and trust between the participants must be maintained in crowd-sourcing projects. Such values, which create and preserve communality, can be maintained by following universally familiar rules. On the same basis as it forges trust among its customers, an enterprise must build public confidence in itself. Jeff Howe later described the crowdsourcing model as social behaviour: people gather together, either free of charge or for very modest compensation, to perform tasks which were previously carried out by employees. In some instances, a community constitutes a more efficient work force than a company.7 Crowdsourcing and the Open Source development model are distinguished from one another by the latter s basis in communality and its initiation and performance by volunteers. In crowdsourcing, the company itself outsources its tasks, thereby retaining the initiative whereas, in conventional outsourcing, tasks are carried out by actors or individuals not specified in advance. They may be amateurs or volunteers, or experts working in their free time. On the other hand, the task may be carried out by a company with which the orderer is not previously familiar. 6 HOWE, J, (2006), The Rise of Crowdsourcing. Wired magazine, June 2006 7 HOWE, J. (2008), Crowdsourcing: Why the Power of the Crowd Is Driving the Future of Business 7 / 52

2.4. Co-creation Co-creation is an active, creative and social process based on co-operation between producers and users. Value is increasingly generated through co-operation between enterprises and their customers rather than inside enterprises. In the most extreme form, N=1, meaning that the target group consists of an individual user. 8 The initiative is taken by an enterprise aiming at generating value for its customers. 9 Herein lies the difference with crowdsourcing, which is focussed on outsourcing an enterprise s tasks rather than on the value generated by product users. The co-creation matrix, Promise Corporation & LSE Enterprise. 8 PRAHALAD, C.K. and KRISHNAN, M.S. (2008), The New Age of Innovation: Driving Co-created Value Through Global Networks 9 Promise Corporation & LSE Enterprise, (2009), Co-creation: New pathways to value, An overview 8 / 52

2.5. Social Innovation Social innovation refers to reforms of regulative systems, policies, organisational structures and operating models improving society s economic and social performance, and its operational capacity, in both the public and private sectors. 10 Social innovation and society's structural ability to reinvent itself have major impacts on the longterm success of society and the national economy. Little research has been conducted on the inception of social innovations and their impacts on society, including on an international scale. The social innovation concept entered the language less than ten years ago, despite the fact that such innovations account for a huge share of services and their organisation, and of legislation and people's everyday activities. 11 Hannu Hämäläinen of Stakes gives the following example of social innovations in the field of social and health care: "A social innovation in the field of social and health care is a new idea resulting from the creative activity of an individual, a group, a community and/or a network. This idea generates added value in terms of the well-being of an individual or community, or with respect to health or a service system. 12 Hannu Hämäläinen, Director of Innovations, Stakes 2.6. Service Design Service design refers to service innovation, development and planning through design methods. The key objective of service design is the user-oriented planning of a service experience, so that the service meets both user needs and the business-related needs of the service provider. The building blocks of the customer's service experience are service touch-points, service moments and a service string or customer journey. 13 In service design, all service touch-points must be carefully considered target areas of the service. They must be designed so as to form a clear, consistent and coherent service experience. This is important, since customers pay attention to service touch-points in particular to all that they can feel and experience. Account should be taken of the fact that nobody's service experience as such can be designed and defined in advance, since meanings, values and expectations, which vary from person to person, are included in such experiences. Thus, designing a service experience refers to the creation of a suitable environment and tools for events and activities, so that the experience can be modified as desired. 14 10 http://www.sitra.fi/fi/ohjelmat/hankkeet_ennen_ohjelmatoimintaa/hankkeet/sosiaaliset_innovaatiot/sosiaaliset_innovaatiot_+yhteiskun nan_uudistumiskyky_ja_taloudellinen_menestys.htm, retrieved on 10 November 2009 11 http://www.stakes.fi/fi/ajankohtaista/tiedotteet/2007/70_2007.htm, retrieved on 10 November 2009 12 http://innovaatio.stakes.fi/fi/esittely/index.htm, retrieved on 10 November 2009 13 KOIVISTO, M, (2007), Mitä on palvelumuotoilu? Muotoilun hyödyntäminen palvelujen suunnittelussa, TAIK (What is service design? Utilising design in service design, UIAH) 14 http://www.palvelumuotoilu.fi/sanasto_ja_metodit/, retrieved on 10 November 2009 9 / 52

3. BACKGROUND Design 2005! was a design policy programme, launched by the Government to promote business and its competitiveness through design. In 2004, the programme s follow-up group presented the following conclusions on the programme s implementation: on the whole, the implementation of the Design 2005! programme began on several fronts. The industrial design technology programme funded by Tekes and the research programme on industrial design funded by the Academy of Finland formed separate, unique entities. Their research subjects were relevant and they created a basis for the renewal of the design industry. The foresight project on education set down guidelines for the development of education. Promoting the internationalisation of design offices was considered a major future challenge. Expediting the design system s development will require investments in communications. The follow-up group was of the view that the design system had developed on a broad front. Key actors from outside the design community had been enlisted in the development of the design system. This led to more dynamic development while boosting confidence in design. Significant volume growth has been attained in a short period in the area of design research. A comparison with the international discussion on research demonstrated that the research problems posed in Finland were relevant and topical. The followup group considered the continuation of the development process already launched as 15 crucial. However, rapid changes have occurred in the concept of design and its operating environment since the implementation of the Design 2005! programme and the above-mentioned industrial design technology programme funded by Tekes in 2002-2005: MUOTO 2005. The concept of strategic design was earlier associated with putting an enterprise's strategy into practice through product-related design solutions and brand management. Now, a new concept, design thinking, has emerged alongside strategic design of this type. In design thinking, a design approach is used to solve challenges that are unrelated to products. Other changes to follow the implementation of the technology programme include the emergence of service design and the challenges posed by open innovation. Research by Virginia Acha, for example, relates open innovation to the application of design: Our analysis indicates that design includes the translation of understanding and expectations between organisations engaged in open innovation practices. The findings demonstrate that firms which actively undertake design activities in innovation and which use design to control the innovation process, are more likely also to pursue open innovation strategies. 16 Virginia Acha, 2008 15 SAARELA, LAPPI, TUUKKANEN, (2004), Muotoilu 2005! -ohjelman seurantaryhmän raportti The report of the follow-up group on the Design 2005! programme, in Finnish), Reports of the Ministry of Education 2004:11 16 ACHA, V, (2008), Open by Design: The Role of Design in Open Innovation. Department for Innovation, Universities & Skills, UK 10 / 52

Education and training in the field of design has also changed in the wake of the programme s implementation. Examples of this are provided by new Master's degrees, such as the Canadian Master of Design in Strategic Foresight and Innovation 17, or in the combination of courses in design with other subjects, as in Singapore where courses have been based on the Design Thinking agenda 18 or in Stanford s d.school which was established as early as 2003. 19 Such courses are not aimed at providing an education in the traditional role of design i.e. creating new forms: We want the d.school to be a place for Stanford students and faculty in engineering, medicine, business, the humanities, and education to learn design thinking and work together to solve big problems in a human centred way. 20 This transition can also be seen in Finland. With the establishment of Aalto University, the concept of design will change more rapidly here too. Design s new roles are influenced by how well it is integrated into education in general and by how its various roles are emphasised within Aalto University: amongst the associated innovation workshops, the Design Factory focuses on product development, the Media Factory on the media sector and the Service Factory on services of high added value. At domestic level, Aalto University alone will not suffice the new roles of design must be promoted more widely: as early as 2006, a visionary group working on a research project funded by the Research Institute of the Finnish Economy (ETLA) proposed that design be more efficiently integrated into educational programmes in the fields of business management and technology. In addition, the quality of education and its international aspects should also be improved. 21 The Finnish design sector remains small and may contract further due to the recession. This sector comprises small actors, meeting demand for strategic design from a small number of enterprises. In 2007, enterprises in the Finnish design sector recorded combined annual net sales of EUR 122 million, industrial design accounting for EUR 47.3 million of this. 22 However, a challenge lies in the fact that statistics on this are insufficient and lack uniformity between different countries. According to the Finnish TOL 2008 standard industrial classification, enterprises in the industrial arts belong to the same category as industrial design, despite the fact that the activities of enterprises providing design services are entirely different to the industrial arts. In accounts of the changing role of design, foresight and the planning of new business activities based thereon are often mentioned. Other oft-mentioned subjects in this connection include the user-oriented design of private or public sector activities, as well as open innovation and social innovation. The change that began following the implementation of the technology programme is still underway. Reform is required of our innovation policy and educational systems. 17 Ontario College of Art & Design 18 University of Technology and Design, Singapore 19 The Hasso Plattner Institute of Design at Stanford University 20 http://www.stanford.edu/group/dschool/big_picture/our_vision.html, retrieved on 25 November 2009 21 LINDSTRÖM, NYBERG, YLÄ-ANTTILA (2006), Ei vain muodon vuoksi Muotoilu on kilpailuetu, ETLA B 220 22 ALANEN, A, (2009), Yritysten muotoilutoiminta: Omin voimin vai ostopalveluilla? (Design activities of companies: independently or contracting out?) Tieto & trendit 8/2009, 38 41. 11 / 52

Finland's national innovation strategy for 2008 also highlights demand- and user-orientation in all innovation activities. User-orientation is a central perspective in design. Correspondingly, the possibilities of applying this perspective and design tools outside the field of product development have been highlighted in the debate on design s changing role. In recent years, design has also developed rapidly as an innovation. Most notably, this has resulted in concepts such as strategic design, design management and design thinking. Innovation policy and support, as well as educational systems, have yet to catch up with these developments. 23 The above quotation is an excerpt from the document "Design as a driver of user-centred innovation", published by the European Commission in April 2009. The Commission organised a public hearing (535 respondents), the results of which clearly associate the role of design with innovation: 91 per cent of the responding organisations considered design highly important to the EU economy s future competitiveness; 96 per cent thought that initiatives in support of design should form an integral part of innovation policy in general; and 91 per cent believed that such initiatives should be taken at EU level, in addition to domestic and regional level. Some 74 % thought that design should be part of the EU's innovation policy. 24 A report on the OECD's innovation strategy will be published in the spring of 2010. This report is expected to discuss the changing nature of innovation, and design s contribution to this. A new role for design and new design expertise are required for innovation activities extending beyond technology and products. Non-technological, organisational and social innovation are increasingly in the spotlight. In recent years, the notion of innovation has broadened. In particular, interest has grown in non-technological forms of innovation for example organisational changes, marketing and design and their contribution to productivity growth. 25 This report was commissioned as part of the Strategy for the Creative Economy, from the Ministry of Employment and the Economy. This feasibility study set out to identify who new design concerns and its field of activity. The project constitutes a basic survey on the changed role of design, analysing the current status of this new role in Finland, the associated actors and their current roles and tasks. Data was collected through interviews and from literary sources. The aim was to uncover a set of descriptions of the new concept of design, and to chart this new field and its functional structures from the viewpoint of the sea-change occurring in the markets. Opinions on the roles of various actors and their tasks within the field of design were analysed with the help of interviews. The report outlines the meaning of the new concept of design from the viewpoint of industrial policy. 23 COMMISSION OF THE EUROPEAN COMMUNITIES (2009), Commission staff working document: Design as a driver of user-centred innovation. 24 Results of the public consultation on design as a driver of user-centred innovation (October 2009) - http://ec.europa.eu/enterprise/policies/innovation/policy/designcreativity/design_consultation_en.htm 25 OECD (2009), 2009 Interim Report on the OECD Innovation Strategy: AN AGENDA FOR POLICY ACTION ON INNOVATION 12 / 52

4. METHODS 4.1. Workshops The feasibility project was kicked off by a workshop "Muotoilun muuttuva rooli (the changing role of design)" on 7 September 2009. The seminar and workshop were organised through co-operation between the Ministry of Employment and the Economy, the Ministry of Education, Design Forum Finland and Creative Industries Finland. Group work on changes in the role of design, from the viewpoint of enterprises, education and training, formed the focus of the workshop. Over 50 experts in the field of design participated, representing educational institutions, organisations and enterprises. The following workshop discussions were chosen as themes for the interviews: What is the current role of design, will this role change in the forthcoming years? Will social innovations and open innovation processes affect the value chain of design? Can the design approach be applied in the creation of new businesses? Does the expertise of design professionals meet the needs of other areas of expertise? Can the scope of such expertise be extended? Do other areas of expertise have sufficient basic awareness of design? Can design support service development? Can the public sector play a role in supporting design? Another workshop was organised in Rovaniemi. Muuttuvat muotoilun kentät, Työpaja muotoilun edistämisestä (The changing fields of design: a workshop on promoting design) was organised on 28 September 2009. Fresh opinions were expressed on the current status of design in Finland and the preparation of Lapland's own design strategy was initiated. The University of Lapland was in charge of preparations for the workshop and it was jointly organised by the national Culture and Creative Industries network of the Regional Development Programme, the University of Lapland and Rovaniemi Design Week. Staff and students of the University of Lapland, approximately 40 people in total, participated. Divided into groups, the participants created five scenarios for the role of design in 2015: Education and training in the field of design have changed. Design as a function has clearly extended beyond product design. The designer is a DESIGN THINKER, an expert in perspectives and methods, not a creator of new forms. Service design has become a distinctive area in its own right. Design is part of everyday life. It is automatically a "must" in the activities of enterprises in Lapland. 4.2. Case studies Examples of the new role of design were collected for the feasibility study. In addition to the chosen themes, the case studies provided the basis for the interviews, and were used to stimulate discussion on the current status and the associated changes in Finland. These case studies are presented in Chapter 5 of this report. 4.3. Interviews In addition to those directly involved in design activities, persons responsible for, or involved in, the development of new businesses, product development, service business, marketing and general management were request to give an interview.

Individual, discussion-based interviews were carried out, including a small number of telephone interviews. Of those requested to give an interview, 35 were interviewed in September, October and November 2009. Some 20 of these interviewees gave their consent to the publication of their names in connection with the interviews. These names are listed in Chapter 8. The interviewees represented organisations (4 interviewees), educational institutions (4 interviewees), productoriented companies (12 interviewees), the public sector (4 interviewees) and service industry companies (11 interviewees). Enterprises of different sizes and representing various fields were chosen. 13 / 52

4.4. Analysis and grouping of results The interviews were analysed by grouping the interviewees based on two grouping models: according to their background organisation and the D1.0...D4.0 model presented below. In addition, the interviews aimed to define the role of design as experienced by the respondent, based on the levels model presented by Anna Valtonen in her doctoral thesis. In this way, perspectives were gained on the background factors explaining the differences in how the role of design was experienced. In addition, common themes repeatedly raised in the interviews were gathered during the analysis phase and are cited in the form of quotations in this report. 4.4.1. Background organisation The background organisations of the interviewees were grouped as follows: the public sector, organisations, education/research and enterprises. Enterprises were further divided into product and service providers. 4.4.2. NextDesign Leadership Institute: Design 1.0... Design 4.0 According to its founders, the NextDesign Leadership Institute was established in 2002. Its purpose was to help trainers and professionals in the field of design all over the world to prepare to lead the way in cross-discipline design and innovation in the 2000s. The Institute focuses on three areas: NextD Education, NextD Research and NextD Conference. 26 The NextDesign Leadership Institute and its background organisation, the consulting firm Humantific, were speakers at the workshop "The Changing Role of Design", organised in Helsinki. GK VanPatter presented ideas on the new roles of design; the NextDesign Leadership Institute has divided design into four groups, representing four different levels: Traditional design (Design 1.0, D1.0) Product and service design (Design 2.0, D2.0) Organisational transformation design (Design 3.0, D3.0) Social transformation design (Design 4.0, D4.0) GK VanPatter, NextDesign Leadership Institute: Design Strategy Workshop, Helsinki, 2009. 26 http://nextd.org 14 / 52

This model, D1.0, is based on handicrafts or arts, in which creative individuals or groups of designers design the aesthetics of a product. They work through a process that is closed to others. At D2.0 level, design involves multi-professional groups and product or service development. It seeks to design an enterprise's offering: the related challenges lie in user experiences, products and services. User-oriented design and an expert designer role often form part of such activities. According to Humantific, factors such as globalisation and technology s integration into everyday life have facilitated the emergence of the D3.0 design role. Here, the target is not a product or service but any strategic problem solving situation often related to challenges at industry, organisation or system level. The problem is solved by multi-professional and multi-organisational (open) groups (participatory cocreation). Design has the role of bringing the user perspective to bear on this kind of problem solving, alongside tools such as synthesis, visualisation and various brainstorming methods. Open innovation models are included at level D3.0. At level D4.0, open innovation models are extended further through the introduction of social aspects. According to Humantific, this is the level at which e.g. problems related to the state of society are solved. In addition to the (various) organisations that have assumed the D3.0 role, the various stakeholders or individuals involved participate in this kind of problem solving. 4.4.3. Anna Valtonen: Changes in the Design Practice in Finland Anna Valtonen's doctoral thesis, published at the UIAH in 2007, considers changes in the professional role of designers. Its subject was the transformation of Finnish design from the 1990s to 2007. According to Valtonen, the recession of the 1990s transformed industry structures, forcing enterprises to seek new competitive edges and increase the use of design. Changes in industry and society led to sharp specialisation in the tasks of designers. A comparison of classification models Compared to the model created by the NextDesign Leadership Institute, the creative, aestheticscentred role of design that emerged in Finland in the 1950s largely corresponds to the definition given by D1.0. Being integrated with product development and mechanical design, the role of design in the 1960s represented the first step towards D2.0, multi-professional product development. This was further refined by the ergonomics-oriented role involving an understanding of the user that emerged in the 1970s, and the role focusing on the co-ordination of portfolio management that emerged in the 1980s. In the model created by the NextDesign Leadership Institute, product branding in the 1990s (design aimed at creating customer experiences) remains at level D2.0. According to Valtonen's doctoral thesis, the design roles recognised in Finland in different eras were all product-oriented. Even strategic design originally concentrated on the management of product portfolios and the branding of products based on user experiences. In the figure presented on the following page, the newest, ongoing transition is related to intangible issues: innovation and competitiveness amongst global competition. "Design as an innovation driver" has been proposed as the new role of design. This transformation remains ongoing and forms part of the description of levels D3.0 and D4.0, as defined by the NextDesign Leadership Institute. 15 / 52

Valtonen: The various roles of the designer and representative statements on design 27 The lowest level, design as a creator (D1.0) is an aesthetic role with a background in handicrafts. In the 1960s, as a result of cooperation between engineers and marketing, this branched out into product development (D2.0). The ergonomic-oriented role of design of the 1970s represented a step towards user orientation. Product portfolio management during the 1980s, or the management of companies product families, shifted design towards a more coordinating role. In the 1990s, product branding was aimed at the design of user experiences e.g. the appearance of the product, the environment in which it was sold and its package had to be streamlined so that they could be used as branding tools. This still comprised the design of a company's output (products and services). By the 2000s, in Finland too the role of design had shifted towards the design of global competitiveness and renewal. This may indicate a shift towards the design of organisations and practices, and away from the product. The fact that the role for 2007 still bears a question mark speaks volumes change is still ongoing. 27 VALTONEN, A. (2007), Redefining industrial design - Changes in Design Practice in Finland, UIAH 16 / 52

5. CASE STUDIES Case studies were used to provide a basis for the interviews these, in turn, provided examples of the new roles of design and respondents' opinions of the significance and impacts of these roles in Finland. One of the world's best-known publishers of case studies is the Design Council (UK). This organisation defines its national role as helping leaders amidst change and turning them into the world's best users of design, with the support of the most talented design professionals. 28 5.1. A system for innovations in medical care: Kaiser Permanente (HMO) 29 5.1.1. Background Kaiser Permanente (KP) is a US-based HMO (Health maintenance organization). It was founded in 1945 and employs almost 200,000 people 30. The main objectives of the company's 2003 long-term growth strategy include increasing its current patient base through broader-based supply and major cost savings. KP feared that, in order to achieve its objectives, it would have to replace the majority of its hospitals with new, expensive buildings. Co-operation with IDEO, a design company concentrating on innovations and innovation processes, generated an idea that changed these plans. Information gained from an individual project convinced KP that investments were required in the development of patient experiences and services rather than new buildings. KP has tried to move away from individual innovation and development projects to creating a more holistic innovation structure. KP's internal innovations unit has created a system that improves the quality of development projects and decreases risks. This system is based on methods originating in the design sector. KP's innovations unit brings expertise on systems and user assets to the process. By constructing prototypes of development targets, the innovations team is able to monitor activities and collect experiences of the project, which is implemented at conceptual level only. KP's innovation process is based on methods such as brainstorming, prototyping, field testing, monitoring, creating a story and synthesis. KP requires that those participating in the process are open-minded, capable of taking risks and uninhibited. A model hospital has been constructed for KP's innovations unit 31, where the functions of various units and the requirements set can be simulated. Premises and models are utilised in Kaiser Permanente's new hospital projects in such a way that all premises to be built are based on prototypes originally developed and tested in the innovation lab and then reproduced elsewhere. The unit also engages in product development in co-operation with equipment manufacturers. Because the premises can be test operated before a hospital is built, errors can be avoided and multi-generational innovations can be realised in a single step. 5.1.2. An example of service innovations A development project on nurses reporting process is often presented as an example of development projects implemented using KP's innovation system. Shift changes in hospitals present a major challenge to continuity in patient care and smoothness of shift changes. As nurses go on and off shift, the smooth exchange of information and duties is crucial in ensuring safety, quality of care and efficiency. 28 http://www.designcouncil.org.uk/design-council/1/what-we-do/, retrieved on 25 November 2009 29 http://www.ideo.com/work/item/nurse-knowledge-exchange/, retrieved on 10 November 2009 http://xnet.kp.org/newscenter/aboutkp/fastfacts.html, retrieved on 10 November 2009 30 31Sidney R Garfield Health Care Innovation Center 17 / 52

Simultaneously, routines must be handled. Previous studies had revealed that nurses arrived 35-40 minutes before they became responsible for patients, in order to receive the required briefing. Both staff and patients were concerned that patients received little care or attention at this point. In addition, each nurse had his or her own way of prioritising and communicating information. The shift change also affected the time preceding it, since all tasks had to be finished in a hurry. 5.1.3. Measures IDEO and Kaiser Permanente conducted observations in four hospitals, watching shift changes around the clock in an attempt to understand how information was transmitted. Based on preliminary data collection and an analysis of current practices, groups consisting of patients and experts proposed a number of solutions within a short time. Some of the total of around 400 solutions were radical. Most ideas focused on information: that it should be available faster and that its processing should be less dependent on location. Based on these ideas, the innovation team developed prototypes of new practices. These prototypes were then tested for three weeks in a single test unit during every shift change. Continuous changes were made to the prototypes based on feedback from the nurses, who could directly shape the outcome. Picture from IDEO's website: www.ideo.com. Based on the new model, the nurse in charge lists the goals for the next shift prior to the shift change. The shift change was moved from the ward office closer to the patients. Tables bearing patient information and goals were placed in patient rooms. In addition, a simple list was created that could be printed out from the IT system, and which could rapidly provide 18 / 52

Create Meaningful Experien an overall picture of all patients in the ward. During the shift, notes were made in a portable IT system that allowed the collection of data for the next shift change. The new model was tested for two weeks in two hospitals, before being put into productive use after three weeks. The time needed to prepare for shift changes fell from 17 to 9 minutes, the duration of shift changes increased from 8 to 10 minutes while the time required for the new shift's first contact with patients decreased dramatically, from 43 to 12 minutes. Of the four hospitals that participated in the brainstorming phase, three introduced the model with enthusiasm and one returned to the previous model. Unwilling to introduce changes, this hospital decided to retain traditional practices, which it considered to be safe. The new model was spontaneously distributed to nine other hospitals. In addition, a number of hospitals contacted KP's innovations unit in order to find out how to introduce the model. A total of 30 hospitals made preparations to launch the model. 5.1.4. Results KP decided to introduce the system in all of its hospitals. The innovations team prepared a model for the system s launch, based on which the system could be integrated in various locations, with the help of IHI's Rapid Scale Up system. KP uses both bottom-up and the top-down development strategies. While the starting points and methods of these two strategies differ, both are needed. In every case, the top-down model always requires data and indicators that enable an ex ante and ex post analysis of the situation. Analysis is also recommended for the bottom-up model, but in some cases the nature of the problem is so evident that a refined, systematised data analysis is unnecessary. Based on the bottom-up model, responsibility lies with local actors (the units themselves), while under the top-down model it lies with the management group. With respect to the development of shift reporting, the launch was initiated based on a bottom-up model, with a top-down model being implemented later. The latter proved a much more efficient method of distributing the model than a spontaneous launch. In each case, the management team must commit itself to striving for change. Among other awards, the system has won three prizes under the Institute of Health Care Improvement's Best Practice and Spark Awards. 19 / 52

5.2. Development of business idea: Sermo 32 Due to a back injury, surgeon Daniel Palestrant found himself in the role of a patient for several months. It was then that he realised that new techniques developed by pioneering doctors are introduced slowly: it often takes years for them to be widely disseminated. He therefore had the idea of establishing an internet community in which physicians could discuss ideas. Companies could be charged for taking part in these discussions between pioneering doctors. But the idea alone failed to attract investors. Instead of hiring a conventional business consultant, Palestrant contacted Humantific, a New York-based company. Humantific employs design methods in change consulting. A series of negotiations were conducted in New York, during which Palestrant eloquently described his ideas he likens his outpouring to "intellectual bulimia" as Humantific s representatives, Elizabeth Pastor and Garry VanPatter, busied themselves drawing sketches and taking notes. The two gathered Palestrant's rambling ideas and turned them into huge posters with icons showing how the different parts of Palestrant's company would fit together. Bearing these diagrams, Palestrant contacted venture capital investors and obtained $40 million in start-up capital. The community created by Palestrant is known as Sermo (www.sermo.com). It currently has over 110,000 members and is the biggest internet community of physicians in the US. Paying customers include pharmaceutical and health care companies, to which the community provides chargeable services such as panels and surveys of physicians. Picture from the web page: www.sermo.com. Transformation design is a growing industry, combining business consulting and industrial design methods. Humantific is an example of these new-wave design thinking companies that apply product design principles to intangible issues that are difficult to conceptualise, such as the design of organisations or business ideas. This leads to unprecedented co-operation between designers and actors in business life. 32 http://www.time.com/time/magazine/article/0,9171,1736729,00.html, retrieved on 10 November 2009 20 / 52

applic ation Create Meaningful Experiences. 5.3. Event permit procedure, Helsinki: the user-oriented design of public services 33 The user-oriented approach is a success factor in the City of Helsinki's strategy programme, adopted in 2009 with the objective of providing more user-oriented services in the future. Service design plays an important role in the City's Yritysmyönteinen kumppani (Enterprise-friendly partner) project, in which the practices of three service entities are made more user- rather than provider-oriented. This is done with the help of service design consultants. "User-oriented development activities do not concern only the private sector. Being user-oriented means that services are developed based on the needs of citizens. For example, with respect to public services this means shifting the focus from providerorientation to user-orientation, the inclusion of citizens in decisionmaking on services and the introduction of service design." Jussi Pajunen, Mayor, City of Helsinki The Yritysmyönteinen kumppani (Enterprise-friendly partner) project began with three service entities: creating a smoother permit procedure for organisers of private events, integrating various city offices into the process for providing advice on establishing a business and facilitating the purchase of building sites and premises for SMEs. At the moment, each permit application must be filed at different times with each authority concerned, due to inadequate communication between the authorities. Processing an application for a permit to organise an event can take from 5 to 30 days, depending on the case. Since developing the related processes using traditional tools proved difficult, the decision was taken to apply service design methods to the development activities. The objective was to achieve more flexible and user-oriented solutions. An electronic service system is currently being developed in which event organisers can find the relevant advice and maps of venues. They can also file all of the required permit applications via the electronic service system. The current situation: citizen-oriented but office-specific service processes. New, designed services. Office/ process Office/ process 2 3 applica tion Office/ process 1 One 4 app applic licat ation One ion One Custom One er with his applicat ion Office/ process Smoothness? Rapidity? Consistency? Transparency of processes for customer? Office/ process Custom er with applicat ion Office/ process Office/ process Office/ process Creating a meaningful entity with the help of service design. 33 Kuntalehti 17/2009 Better management of the service experience as an objective. 21 / 52

34 35 5.4. Innovations in the retail supply chain: Kraft and Safeway Kraft Foods is the world's second largest food and beverage company. Safeway, in turn, is the third largest supermarket chain in the US. IDEO is a design company focusing on innovations and currently employing 550 employees. Kraft turned to IDEO in its search for supply chain innovations. The aim was to improve Kraft's relationship with chain stores. Communication was not smooth and there were delays in getting products to market. IDEO brought together 80 employees from both Kraft and chain stores, to create new solutions in workshops. Between workshops, innovations were sought by means of structured brainstorming, and field observation in stores and distribution centres. Employees were interviewed and new ideas were turned into prototypes. The entire process took 18 months, during which findings were shared and new solutions were created interactively. Picture from the website www.caprisun.co.uk. One of the supply chain innovations was realised in co-operation with the Safeway supply chain for Capri-Sun. It was observed that when stores ran out of a certain flavour of this beverage, warehouse staff had to unload other flavours in order to reach the desired product, which had been shipped at the bottom of a mixed-flavour pallet. As a result of brainstorming, a model was created whereby any flavour could be reached without unloading the others. As a result, Kraft was able to increase sales of Capri-Sun by 162%. Kraft has since trained its supply chain s entire management team to introduce these methods in internal teams and directly with customers. 34 http://www.time.com/time/magazine/article/0,9171,1736729,00.html, retrieved on 10 November 2009 35 http://www.ideo.com/work/featured/kraft, retrieved on 10 November 2009 22 / 52

6. INTERVIEWS In addition to design, the discussions with interviewees dealt with the roles of other, design-related professions. There was much discussion of overlapping roles, particularly with respect to enterprises. Roles of design and overlaps between them, as identified in the interviews In the diagram, the original role of design is represented by the green area originating in aesthetics. It is close to technology, answering the question "What?" for instance: "What does the company produce?" The role has been extended to cover technology in combination with product development. Common challenges include e.g. usability and synthesis, that is, solutions combining analysis results and converting them into concrete proposals. In this figure, user-oriented design methods and perspectives can be deemed to extend the related role powerfully towards the "To whom?" question: for instance, "To whom will the company offer its solutions?" The red, marketing area already overlaps the familiar design roles, most clearly with respect to branding. The most interesting area lies in the overlaps between the new roles. Here, the enhancement of certain types of competencies can create a new competitive edge, since few competitors are employing the same methods. Organisational development based on co-operation between management, marketing and design was viewed by the discussions as an example of such overlapping areas. In an area where roles overlap, each actor can express their own opinions and views, while enriching development activities with new methods. For instance, organisational development through user-oriented methods was referred to in the discussions as a natural role, and as a continuation to service development or service design. A number of interviewees were of the view that, in the future, they would not have the option of concentrating on performing the same task better or by producing more at lower cost. They saw innovation as becoming the key task of the company's management team: new business ideas, a new, more user-oriented model for creating value. It is in this respect that, through innovation methods and user-oriented thinking, the role branches out towards the blue area of business management ("How?"). In this area, design can assume roles such as user representation, or that of an interpreter visualising the languages used in various areas of expertise or that of an expert in innovative methods. Design may thus facilitate multi-professional brainstorming in which specific expertise originates from the other competence areas involved, or, in the future, increasingly from users.

23 / 52

6.1. Experienced roles and changes in design As experienced by the interviewees, the role of design in Finland was divided into two groups: the situation as currently experienced and opinions on the changes underway. The D1.0...D4.0 model presented above was used as a framework for the analysis. Based on the discussions undertaken, this change was visualised by dividing the interviewees into groups according to their background organisations. Only one of the interviewees thought that the role of design was diminishing. Seven interviewees believed that it was not changing or changing only slightly. Some 27 considered the level of change significant. Most defined the change as crossing the boundary between concrete and intangible design: The most common way of defining the current role of design was based on the D2.0 role. The majority of those who considered the level of change significant estimated that level D3.0 could be achieved in the future. The interviewers' interpretation of the current situation and changes in the role of Finnish design, based on the interviews In the summary of the interviews presented in the following chapters, the names of interviewees given belong to those who consented to the publication of their names prior to publication. Some interviewees withheld their consent to this, or failed to so prior to the publication deadline. 24 / 52

6.2. Unwieldiness of terms As a term, design was considered unwieldy and restrictive. It was evocative of form creation, easily sidelining design thinking and the intangible role of innovators. In addition, service design was unfamiliar to most of those engaged in developing service businesses. The lack of a common language prevents communication on changes in the role of design. "The word design should be banned, it causes confusion and harm. It is associated with rendering things aesthetic, even though no one can explain why." "At the moment, I am not convinced that many managers understand what design thinking is or what can be achieved through such an approach." Kalevi Ekman, Vice Rector and Professor, HUT/ Director, Design Factory, Aalto University "Design is considered a remote term in our sector. Planner is most often used." A company representative "I wouldn't talk about service design but about designing a holistic user experience." Anne Stenros, Vice President, Design, KONE "The terms open innovation and social innovation should be demystified. It all just boils down to how people distribute information. I believe that both are important to enterprises, but a lot of attention has to be paid to where they work and where they don t. For instance, in most cases crowdsourcing only works if a solution is being sought to a very well-defined problem." Marco Steinberg, Director, Strategic Design, SITRA "The challenge lies in the fact that the design approach has not been sold effectively to representatives of other areas of expertise. This is partly because there is no common language e.g. with financial management and, thus, design s possible benefits to business remain unnoticed." Thomas Pimenoff, Marketing Director, Nordea Bank Finland 25 / 52

6.1. Role of design The current role of Finnish design was viewed as being divided between levels D1.0 and D2.0. Some of interviewees stated that only Finnish enterprises that operate internationally had even reached level D2.0. Meanwhile, aspirations or views on changes in the role set the target rather far from the current level. Most interviewees portrayed the role of strategic design as either traditional design management associated with product families (portfolios) and brands, or as being somewhat intangible in terms of enabling user-oriented innovation. In our opinion, the experienced magnitude of change is based on the fact that the keenly sought change created by global competition prior to the recession has only intensified in light of the downturn. New business ideas, in which design plays a role alongside other types of expertise, are needed in Finland. "Design may show the way for new businesses. The aspirations of enterprises in traditional industries are often limited in comparison to the new business opportunities on offer. Holistic design thinking may open up perspectives on completely new types of business operations." Anne Stenros, Vice President, Design, KONE "The roles of design are many. For some, it means very little while there are some who may have realised that aesthetics is relevant to their products. At the upper end of the scale, there is some understanding of Design Management. There is a huge spectrum. The bottom end is most representative. Correspondingly, practices and the understanding of their significance vary hugely among designers and architects. I myself would like to believe that holistic thinking is very modish, even though it hasn t spread that far. Design can be viewed as far more intricate than mere product design: it has characteristics relating to services or, more generally, to the many processes taking place in an enterprise, its sales department or at its customer interfaces at multiple interfaces. I would like to think that we already live in this kind of world, even if it isn t realised in many enterprises." Toni Kauppila, Architect, SAFA (DipArch, The Bartlett, UK) Architect bureau ND/ UIAH/ Theatre Academy Helsinki/ TSE 26 / 52

The role of design has extended. Design management is now an important part of design activities. Portfolios are managed, and user experiences are analysed and studied. Design has also been thoroughly incorporated into strategic planning, and not just the implementation role at the end of the pipeline. The role of the designer is to bring these visions together. To create a concrete overview of how these visions might be fitted together." "Work in management teams very often consists of staring at the figures, because most members of these groups are Masters of Economic Sciences and engineers. Pondering visions or creating a brand or product range strategy seldom find their way onto the agendas of management teams. The role of designers is therefore to introduce these activities to companies and management teams." Petteri Kolinen, Design Director, Martela "The next step is for design to become an agent of cultural change. Creating communities, rather than just designing products, services and experiences." Juha Vaurio, Design Manager, Vaisala "Design is not a driver of innovation but a tool for management and a catalyst of innovation." "When communicating, different people often use the same words but mean completely different things because their mental images of the matter may be totally different. Design is capable of creating a visual image that enables a consensus to be reached within a multi-professional group." Fredrik Magnusson, Design Director, Iittala Group "Design is not widely utilised because it is a young discipline and still developing. The more the markets and competition force enterprises to use design, the more important its role will become as regards organisations, decision-making and resourcing. At the moment, the role of the designer mainly focuses on operative activities, that is, on implementation." Markku Salimäki, Dr.Sc.(Econ), M.Sc.(Eng) Programme Director, IDBM Programme, HSE 27 / 52

"In my opinion, the challenge in design nearly always lies in creating an identity for something. Previously, design created identities for products and then later for larger entities such as brands. Now its task at least in Sitra is to create an identity for complex social problems and make them easier to understand." Marco Steinberg, Director, Strategic Design, SITRA "The added value created by design is based on prototyping, that is, acting at an early phase, and the 'meta-ability' to synthesise and visualise things." "The object of design is changing. Now we're realising that expertise in design can be applied more widely." The more actors there are, the more the meaning of visualisation is emphasised. Words can be interpreted in so many ways. We need a language more universal than words: images, visualising." Anssi Tuulenmäki, Research Manager, Aalto University "In the coming years, design will move to the strategic level and the faster this happens the more business managers there will be who understand its importance." "Design Thinking will never be introduced in enterprises bottom-up. First, it must be adopted by top management and then diffused downwards. It is only then that we can talk about a real Design Thinking approach in an enterprise where it is used as a strategic tool by the management." Anne Stenros, Vice President, Design, KONE 28 / 52

"The aim is to increase general awareness of the possibilities of design. However, in practice it still has a weak position in many enterprises. In such cases, design thinking and expertise should be even better able to sell themselves. This would be the most natural means of the practical promotion of insights into the benefits provided by design in enterprises." "Design must not become a value as such, but should be examined as an additional way of improving the desirability of a product or service. Design must be linked closely to the way it benefits the business. It is strongly associated with brand thinking, enabling the creation of an emotional bond with the consumer." Thomas Pimenoff, Marketing Director, Nordea Bank Finland "It is hoped that the strategic dimension of design becomes integrated in companies' renewal strategies. However, the results are dependent on the kind of people in the company's management team and to the extent to which Design Thinking is utilised as a key to success. However, it seems that the majority of enterprises are not yet aware of the opportunities represented by Design Thinking in creating new businesses." Siina Saksi, Head of Marketing and Customer Service, TrygVesta "The role of Design Thinking is to detect similarities between things that appear to have nothing to do with each other. Things that have nothing to do with each other process or business-wise, but that share some similarities and it is exactly through these similarities that a sensible way of innovating, of combining things, can be found. This must involve both Design Thinking and lateral thinking." Mikko Ahlström, Design Manager, Suunto "One must avoid thinking that the new role of design will simply replace the old. Instead, a new dimension in design is being created, that will emerge in addition to the old one." Marco Steinberg, Director, Strategic Design, SITRA 29 / 52

"With the help of design, the current activities of an enterprise can be positioned in relation to its competitors and consideration can be given to its future positioning. These characteristics represent genuine added value improving competitiveness. Design enables consideration of the future and confers the ability to position oneself, thus constituting a strategic tool a tool that facilitates strategic differentiation from competitors." Janne Viemerö, Technology Director, Tekes 30 / 52

6.1. Internationality Many interviewees considered Finland s small domestic markets and lack of international contacts as problematic. Both the educational sector and enterprises were considered to need people, including leaders and ideas from abroad. At the same time, it was believed that active measures were needed to render education and studying more international. "Finland is a small country. There are not enough enterprises to provide sufficient training opportunities for designers. Finland should send its young students abroad to complete their studies. As regards the future, international networking will be of paramount importance." "If a design policy is planned, it absolutely must be linked to innovation policies at both national and EU level." "Self-adjusting organisations are the future. Policies will no longer be laid down by the authorities. Preparing a centralised design policy in Finland would be an old-fashioned approach, because the actors themselves will take control of the issue. A number of minor initiatives and activities will emerge, which will combine to create the required movement." "The role of the public sector is only to facilitate this, to provide the framework. Barriers between issues must be removed, funding must be made more easily available and various application processes must be made more transparent." Anne Stenros, Vice President, Design, KONE "The current situation in Finland is that you end up too quickly with something you already know, based on which the target is incrementally improved in a very narrow sector. This represents a total block on the creation of new innovations." Marco Steinberg, Director, Strategic Design, SITRA "Design Thinking seems to correlate with the size and international activity of an enterprise in such a way that it is more often applied in the largest companies which are active in the international operating environment than in companies that are active in the domestic market only. Pressure to engage in design thinking and the related activities comes from the international field." Toni Kauppila, Architect, SAFA (DipArch, The Bartlett, UK) Architect bureau ND/ UIAH/ Theatre Academy Helsinki/ TSE 31 / 52

6.1. Service design In the role played by design, the interviewees considered service design to be a clear future prospect. The user-oriented design of services was considered important; the challenge lay not in lack of demand but in insufficient understanding of demand and in scarce supply. Service design was unfamiliar to the interviewees. Service design, or service definition, was considered to represent an innovation opportunity whose significance could be equal to, or even greater than, that of past product innovations. Some interviewees felt that Finland already lagged behind in this. "Design methods are highly suitable for developing service concepts because they are genuinely based on what a person really needs and wants to accomplish." Anna Valtonen, Rector, Umeå Institute of Design, Umeå University "The challenge lies in how we engage in increased dialogue with customers, how better account is taken of them in service design and development. Customer committees, where people express their opinions on services, and customer panels through which the customer's views and wishes are expressed through electronic media, are examples of traditional co-operative models." "All those who participate in service design and development should share a common language that understands consumer behaviour. What design opportunities exist in developing customer profiling, design and foresight based on customer behaviour, using the information already available and how might design affect customer experiences?" Hannele Humaloja-Virtanen Director, Innovative Strategies, SOK Corporation "In an organisation, service design should take priority over channel-specific silos, in order to have an influence over services and user experiences provided on a multichannel basis." "The service design concept is often also a business concept, because you have to consider how the value network is created and how money will flow between stakeholder groups." Mikko Koivisto, Service Designer, Yatta 32 / 52

"Services are becoming network-based in all sectors and service design, too, is associated with network activities. Customer participation is facilitated by network systems located at the customer interface. The objective is to find out what attracts and interests customers in a service and how contact with customers is maintained. In addition, an enterprise needs information on what its customers really want." Piia Savolainen, Chain Director, Suomen Varamiespalvelu Oy "From the marketing viewpoint, thinking and activities based on holistic service design are still lacking. "The objective should be that people move from one end of service design and development to the other, without any barriers to expertise: the way of thinking is more important. Much remains to be done before this objective is attained." Siina Saksi, Head of Marketing and Customer Service, TrygVesta "Interesting ideas are associated with service design for instance service paths and service moments which may bear relevance both to developing new services and analysing existing ones." A company representative "The business idea behind S group s retailing is mainly to respond to the rational everyday service needs of customers, where the rapidity and ease of accessing the service and product are important alongside the effortlessness of the purchasing process. Service design is able to meet challenges because customer service touch-points are not staff-specific but dependent on the place and situation created in the service situation. Service design takes consideration of services and experiences related to everyday life. With regard to shopping mall concepts, those will succeed who sell at a sufficiently affordable price and whom customers still consider as 'wonderful'. The Swedes are good at this. Shopping mall concepts are similar but there are differences in the kinds of actors who appear in shopping malls between different countries." Hannele Humaloja-Virtanen Director, Innovative Strategies, SOK Corporation 33 / 52

"There is huge demand for service design: more than 80 per cent of GNP is generated by services." Jussi Sorsimo Programme Director, Culminatum Innovation Oy Ltd "As the customer experience is designed and created, expertise must accumulate inside a company. This is a core business activity that cannot be outsourced to an external expert." Hannele Humaloja-Virtanen Director, Innovative Strategies, SOK Corporation "The role of service design will surely continue to increase in the future. You realise this when you look at what was being said about it five years ago, and compare that with the current discussion of the issue. However, we cannot yet talk about a holistic, strategic breakthrough in service design on a larger scale. Nevertheless, the importance of service design is increasing because it can positively affect the images created in customers minds. The starting point must be that service design can create added value, both in business development and in the encounter between the service provider and customer. This leads to a win-win situation. Since customer experiences are a very important part of the overall image of the service sector, design should have greater importance." "My opinion is that service innovations will be as important to Finland in the future as product innovations have been in the past." Thomas Pimenoff, Marketing Director, Nordea Bank Finland 34 / 52

6.2. Education and training With respect to education in design, greater internationality, business expertise and a common language between professions were called for. While interviewees had great expectations of Aalto University, they also stated that the new university alone would not suffice. More general, user-oriented innovation expertise and the use of innovative models should be universally taught in other educational institutions too. Without its own place at the table, service design education has begun to falter. Beyond the quotations given here, interviewees expressed the wish for active international recruitment in education hoping for fresh reformers from outside Finland. They also suggested a systematic, even obligatory stay abroad for students, in order to enable the more efficient transmission of ideas. "Education can prepare students for working life, for instance through co-operation with companies. It is more important to help students spread their own wings than to push them along a predetermined path of someone else s choosing." Anna Valtonen, Rector, Umeå Institute of Design, Umeå University "What if multi-professional development of new business were taught? How are new strategic value propositions made? This is not taught anywhere at the moment. That would be quite something. And then machinery would be constructed that would genuinely make it easy to try out new things. You will never think outside the box if you have never acted outside it. Since business is activity, various forms of activity should be facilitated. Otherwise, this only amounts to brainstorming and writing reports, not activity." Anssi Tuulenmäki, Research Manager, Aalto University Young designers should receive more education on business activity in the future similarly, engineers and businessmen should be given basic design courses. In my opinion, these courses should be taught to more students than at present. However, design education should first and foremost remain arts-based, because this is in keeping with the particular content involved." Markku Salimäki, Dr.Sc.(Econ), M.Sc.(Eng) Programme Director, IDBM Programme, HSE 35 / 52

"Fundamentalists" are now represented at Aalto University. Research on humanities and cognitive studies should be more strongly represented." The future role of design depends largely on how the next generation is educated." "The tasks carried out through co-operation between educational institutes and enterprises give a false impression of the slowness and (low) prices of processes." A common language between design and other sectors is lacking. There are no quality criteria for unconventional professions." Lena Strömberg, Secretary General, Ornamo "Aalto University will not represent a solution to our problems for a few generations to come. The innovation leap must be taken elsewhere." "We lack adequate education in design management and design leadership. In these areas, there is an educational vacuum." "Basic education on design must be organised to give students a more international perspective than before. Finnish design education is still not international enough. Anne Stenros, Vice President, Design, KONE "In the future, the focus will surely see a clear shift towards experience and service related matters. Commercially speaking, this represents a much greater opportunity than traditional design." "Education does not meet the demands of changing markets, or it does not meet them fast enough; for instance, institutions should have been teaching service design as a major at MA level for five years now." "Finland has almost completely failed to develop its expertise in design management. All structures are based on managing the current situation and rising to the top in a Finnish design reality primarily set up to place individual designers in the limelight." "Design management plays an important role in the promotion of Finland's new competitiveness, through new age holistic expertise, innovation leadership and experience leadership. This expertise should be accumulated rapidly." Juha Vaurio, Design Manager, Vaisala 36 / 52

"Design Thinking should be distributed more widely among businessmen and engineers: amongst a larger group than that served by Aalto University alone." Kalevi Ekman, Vice Rector and Professor, HUT/ Director, Design Factory, Aalto University 37 / 52

6.1. Innovations During the interviews, the discussion on design s new roles often turned to the changing role of innovations and global competition. Many interviewees pointed to the insufficiency of product or technology innovations and their hopes concerning the role of design in open and social innovations. Nearly all of the interviewees believed that design has a role to play in useroriented innovations. "Innovations are not created by processes or organisations, but by individuals. These individuals must engage in leading major projects." Marco Steinberg, Director, Strategic Design, SITRA "Social and open innovations herald a transition akin to computerisation, which transformed the entire production chain by enabling faster work at closer quarters. The various stages now followed one another in a more logical way. Open innovation provides a basis for a great deal of new, fresh and smart thinking. Correspondingly, social innovation will arise of its own accord if network solutions form part of the package. This is a self-evident part of what s happening at the moment. The more surprising thing is that this is not taken for granted by everybody." Anna Valtonen, Rector, Umeå Institute of Design, Umeå University "Only innovations that change the sector strategically can guarantee our success." Anssi Tuulenmäki, Research manager, Aalto University 38 / 52

"Design, innovations, product development all of this will move to Asia." "Enthusiasts, amateurs who act like professionals (ProAms) will break the traditional expertise mould. Actual professionals will become trainers, helping amateurs attain their goals. Professionals will provide examples and ensure that products contain no overall functional errors. New open platforms will primarily be developed, with amateurs, professionals, lead users and enthusiasts being engaged in the design process at a very early stage." "Design absolutely must be linked to innovation. A successful model is created when the innovation component is supplemented by holistic design thinking, experimentalism, optimism and seeking new opportunities." Anne Stenros, Vice President, Design, KONE "Design should act as an engine for open innovation. Open source thinking does not form part of the traditional design mindset. Traditionally, designers have been individualists unwilling to share anything. Based on the new mindset, sharing is an opportunity: everyone is a designer. This is the profound transition that has been emerging for many years now." Finland is an importer of new ideas. We should be concerned about the fact that we are learning so-called innovation theories and IDEO-type innovation development based on the blindingly obvious. The fact is that structural and management paradigms do not lend much support to this kind of activity. What is said in ceremonial addresses is something else". Juha Vaurio, Design Manager, Vaisala 39 / 52

Social and open innovations should be identified and considered an opportunity for enterprises to obtain information on customer needs, which will influence market behaviour. They facilitate the design of services and products no one has offered users before. Activities are still being carried out according to the traditional model of closed innovation and the opportunities provided by social and open innovation are not being utilised extensively, systematically and on a long-term basis. Good experiences of workshops on future developments provide an example of open innovation worth striving for." Siina Saksi, Head of Marketing and Customer Service, TrygVesta "Social and open innovations can surely have an influence. Ambitious growth targets require open-minded thinking, enabling a distinction between service processes and business models. A radical innovation model will help to think outside the box. New routes to new opportunities can be found within the scope of legislation and in a given geographic area. The way in which an innovation process is implemented - and with whom can harbour opportunities for radical innovation." "Design 2.0 and Design 3.0 are already included when new business activities are under development. I am sure that, in the future, new generations will have different expectations and values. Entrepreneurship is raising its profile, not as a form of employment but as a contractual relationship. The younger generations are more willing to express themselves. A labour force aware of its own worth could overcome the competition by working as entrepreneurs in projects guaranteeing the best conditions. These conditions will not necessarily be monetary, but based on values." Mika Pitkälä Director, Distribution Channels, Varma Mutual Pension Insurance Company Lots of companies are beginning to realise that sharing is the first step towards gaining and evolving. Fredrik Magnusson, Design Director, Iittala Group 40 / 52

6.1. Public sector The public sector was considered a facilitator in the changing field of design. Some interviewees wished to de-construct funding schemes they considered inflexible and replace them with various experimental schemes. Only the public sector was considered capable of creating sufficiently extensive platforms for experimentation or communities. The interviewees also expressed the wish that, in the future, the public sector should become an initiator of social innovation and an active user of service design: user-oriented service development was considered an opportunity to set such an example. Improving services while lowering costs will provide opportunities for value innovation. The distribution of information on new opportunities and the promotion of user-oriented design innovation were considered to be the responsibility of the public sector. Concrete ways of distributing information on new opportunities were called for e.g. through case studies and the creation of indicators. "Public sector activities must be linked to the innovations ecosystem, lend support to innovation policy and should absolutely be tied into the EU's innovation strategy." "The public sector must facilitate various open communities for encounters and their creation. At best, these should act as innovation labs where designers, end users, research communities, enterprises and students can meet. The operating model should be like that of Twitter, where you can roam around freely. It should not involve being fed information or having to search for material somewhere. just plug in. "The Design Start service is just a kind of effortless dry run, it does not genuinely benefit enterprise or design." "The public sector must act proactively regarding innovation, particularly by deconstructing inflexible systems and facilitating flexible, easy and self-regulating systems." Anne Stenros, Vice President, Design, KONE "Smallness could be a competitive asset for Finland, at least with respect to social innovations. Here, we can develop and try out "Big challenge" solutions because our small size gives us flexibility. Finland could become a laboratory for this kind of social innovation." Marco Steinberg, Director, Strategic Design, SITRA 41 / 52

"Projects supported by the public sector should be as nonbureaucratic as possible, since in the beginning it is not always clear what should be done. It would also be good if the result was not fixed before the project even began, but was genuinely being sought." "Projects need not necessarily be implemented in Finland, it would be enough for the enterprise to be from Finland. In principle, the experts could be located in Palo Alto, for instance. One of the drivers or even conditions could be international networking right from the start. Internationalism should be a prerequisite for funding, nothing should be designed for the Finnish market only." "Finnish design involves too much politics, which is paralysingly enough based on protecting organisational and vested interests. Finnish design policy has been like a kind of employment and social policy in disguise, when it should primarily be an innovation and trade policy." Juha Vaurio, Design Manager, Vaisala 42 / 52

"Being able to positively surprise the customer is also important to public organisations." "The role of design, or at least the role of service design, is changing. Its task is to combine various fields of expertise, solutions and ideas to form a clear service concept in a way that is meaningful to the customer." "In my opinion, the public sector has a role to play in setting an example. By directing its procurements towards service design, the public sector could simultaneously develop both the quality of its own service provision and Finnish expertise in service design, while creating good cases that can be applied to other sectors." "At the moment, the public sector is unaware of the opportunities provided by service design. And even if it is, legislation on procurement is regarded as an obstacle to the procurement of design services." "At the moment, public sector R&D appropriations are fragmented between various agencies and institutions and are not useroriented. What share of the public sector s annual budget should be used on research and product development? In Nokia Ltd, almost 12 per cent of net sales are invested in research and product development." "Applying service design in the public sector is an interesting subject how much time is spent on managing things because they have not been properly planned. And what improvements in social wellbeing and the national economy could be achieved with the time spent?" Finland, or even better Europe, should have a Design Council that shows the way and lowers the threshold for experimenting with service design, particularly within SMEs and the public sector." Jussi Sorsimo Programme Director, Culminatum Innovation Oy Ltd "Design should play a role in supporting the public sector... Rather than vice versa." Kalevi Ekman, Vice Rector and Professor, HUT/ Director, Design Factory, Aalto University 43 / 52

"Can the public sector play any role in the promotion of innovations other than keeping the issue visible? Enterprises are willing to invest in good projects that develop their activities and the services they provide. On the other hand, the public sector could develop its own services and customer interfaces with the help of design, and thus set an example." Hannele Humaloja-Virtanen Director, Innovative Strategies, SOK Corporation "The public sector may play a role, but implementation should be carried out in the spirit of entrepreneurship. Use of design services could be activated in enterprises through service concepts of high quality, even when measured against international standards. Funding tools could act as an incentive for the use and wider understanding of design among SMEs. Demand for design often requires an awakening: why it matters to an enterprise." Siina Saksi, Head of Marketing and Customer Service, TrygVesta "Decision-makers in companies are up to date with the current challenges, but economic resources for supporting the new approach are scarce. The public sector faces a huge amount of work in turning thinking and philosophy into an accessible concept and activity. Not all enterprises and industries are ready to implement Design Thinking." Mika Pitkälä Director, Distribution Channels, Varma Mutual Pension Insurance Company 44 / 52

6.1. Relationship to economic success and enterprises target status The interviewees viewed design as having a role to play in the development of new business models. At the same time, the change in ways of thinking brought about by the economic recession could be detected in the fact that some interviewees did not think that the next upswing would see "new Nokias," but networking enterprises of various types. Many also discussed the future challenges lying in the concept of work stable, conventional employment was considered an outgoing phenomenon. It was estimated that varied, unconventional forms of employment would become the norm in all sectors in the future. In creative industries including the design sector such employment relationships are already standard. A few quotations from the related discussions are presented below. In order to benefit an enterprise, the Design Thinking approach requires a higher level of interpretation and understanding than now. Huge changes are required in mindsets. Growth expectations must be very modest and one must understand the story and the meaning of its contents. Quarterly thinking and expectations of rapid growth are not compatible with this approach, instead longterm efforts are required. Repayment may be different. In some cases, it may be exponential, but this will probably be quite rare. As a non-economist, I think that interesting phenomena do not originate in efforts to maximise economic profits. Profit is either generated or it isn t but nothing interesting can come from a situation where the starting point is profit maximisation." Toni Kauppila, Architect, SAFA (DipArch, The Bartlett, UK) Architect bureau ND/ UIAH/ Theatre Academy Helsinki/ TSE "A great deal of information is available in Finland, but putting it into practice has often failed due to an inflexible bureaucracy. Wood processing is a good example of this. Its challenges have been discussed for around 30 years but nothing has been done why? Another example is the application procedure for grants for internationalisation from the Ministry of Employment and the Economy, which is extremely complex. These processes should be made as easy as possible, in order to create the required seed companies." Lena Strömberg, Secretary General, Ornamo "In the future, the competitiveness of enterprises will not be assessed based on the end product or service only in fact, these aspects will be secondary. The most important thing will be the enterprise s ability to innovate and how interesting it is as an innovation partner." Anne Stenros, Vice President, Design, KONE 45 / 52

"Competition between enterprises will move to higher levels, that is, from the production level to that of IP portals. Enterprises own ideas that others may want sometime in the future. In the future, this could be a big problem for Finland, where only a few enterprises are large enough to afford this. New ideas may be created but somebody else already owns them. In particular, this is likely to happen with respect to incremental innovations." Marco Steinberg, Director, Strategic Design, SITRA "Can new business even be developed nowadays without a human-oriented approach? New business may be developed so that design-related issues are handled unconsciously. Unconsciously or consciously, nothing can be done without design." Anna Valtonen, Rector, Umeå Institute of Design, Umeå University ""Design 2.0 and Design 3.0 are already included when new business activities are under development. I am sure that, in the future, new generations will have different expectations and values. Entrepreneurship is raising its profile, not as a form of employment but as a contractual relationship. The younger generations are more willing to express themselves. A labour force aware of its own worth could overcome the competition by working as entrepreneurs in projects guaranteeing the best conditions. These conditions will not necessarily be monetary, but based on values." Mika Pitkälä Director, Distribution Channels, Varma Mutual Pension Insurance Company 46 / 52

6.1. Perception of time and time window of future visions The interviewees believed that the role played by design was changing. The majority felt that there is an ongoing international transition which has been accelerated by the recession as occurred in the 1990s when the role of design changed from D1.0 to D2.0 in international companies. Some interviewees were highly critical on the subject of the time window. There is a lot of talk about change but little action. They believed there to be a real risk that the new roles would not be put into practice fast enough. "The role of design is definitely changing, but in my opinion, nothing concrete has happened yet only a need exists at the moment. The gap between talk and action is very wide right now. If anything other than hype is to come out of this, we must start projects based on which we can gather experiences." "In view of the changing role of design, the slowness of reform in the academic world also poses a challenge. The academic world is proceeding at the same pace as 200 years ago, whereas the world is continually changing. We need new talent from the pipeline but we can't afford to wait change is needed now." "Reports of whatever kind are unlikely to provide the answer to what the possible benefits of design will be. In my opinion, enterprises should simply go for it. To succeed, this kind of decision must be taken by at managerial level." "The majority of Finnish enterprises have yet to adapt to the current role of design, that of a concept of functional, aesthetic creation. This means that design in Finnish enterprises no longer provides an international competitive advantage. This means that 'We use design' is no longer a competitive asset." Marco Steinberg, Director, Strategic Design, SITRA "During an economic recession, both the world of design and industry need to ponder their new role in times of change. They will either survive or fail. Design plays a changing, living role, as it will in the future." Design is a way of thinking. It is a holistic and human-oriented way of solving problems. This description includes both the traditional concept of design and the new, more extended version." "Once again, we find ourselves in the midst of turmoil: as regards Finnish industry, we must either transform and succeed or bemoan our fate and compete on the same basis as the Chinese workforce." Anna Valtonen, Rector Umeå Institute of Design, Umeå University 47 47 / 52

"The pace of change is actually very rapid nowadays. The only factor creating a genuine competitive edge is the ability to do so, that is to be agile and go back to basics. Even these fundamental issues are changing very rapidly, let alone the superficial ones." "The silo model gives us no advantages in terms of cost or expertise. Our only chance is to do things in an interdisciplinary way." Anssi Tuulenmäki, Research Manager, Aalto University "We're not very good at utilising social innovations and open innovations. A lot of resources are required, as well as acceptance of failure and readiness to experiment. Broader utilisation usually takes time, since the opportunities created by technology are developing very fast and enterprises are lagging behind, learning how to utilise these new opportunities." "With respect to basic business activities, the role of design in developing new business activities remains more distant: the model applied in enterprises when planning their overall business, strategic decision-making and development of innovations, is still based on looking from the inside out. However, a number of signals are coming from the business environment implying that this approach is about to change." Thomas Pimenoff, Marketing Director, Nordea Bank Finland "The economic recession, globalisation and the departure of certain enterprises from Finland has created demand for rapid change. In my opinion, this has finally stimulated discussion on the role of design and its insufficient integration in other industries. Even education has yet to provide any help in this." Lena Strömberg, Secretary General, Ornamo 48 / 52

7. CONCLUSIONS 7.1. Change Design is changing. Its role has changed rapidly over the last few years and this process is not yet over. Education and innovation systems have not kept up-to-date with respect to this more profound transformation. While there are opportunities related to this, in the opinion of many interviewees the time window for exploiting such potential is rather narrow. The new roles of design comprise both horizontal (for instance, introducing service design) and vertical dimensions (the new role of strategic design as an expertise or methodological approach, extending beyond products and services). As before, the new roles will not replace the old, but all roles will co-exist and the application of roles will be layered. The most marked differences lie between concrete roles aimed at form creation and intangible developmental roles. On an international scale, the role of strategic design has been extended to encompass the creation of an enterprise's strategy: the role it plays in business development is not limited to a brand, user-oriented product, interface or even service innovation, as was the case only a few years ago. In Finland, strategic development is often seen as putting an enterprise's (already existing) strategy into practice and as co-ordinating its product development. Over the last few years, there have been occasions where the role of design has not concentrated on putting a strategy into practice, but on its innovative, user- or customer-oriented development. Part of the new role of design is directed away from product or service design, towards design planning or enabling innovation. In the area of open innovation, design is expected to act as a facilitator of communications and a creator of syntheses. 7.2. Challenges The number of top experts remains very small. Most enterprises remain unable to benefit from even the D2.0 design role that of multi-professional product and service development. At the same time, the entire innovation concept is in turmoil. In the future, value will not be generated by enterprises or experts, but by users and communities in connection with use. This entails a need for new design expertise. Connotations associated with the terminology impede communication. As a concept, design is associated with the creation of form: a number of interviewees did not consider service design, customer insight, innovation or business development as design at all. However, case studies provided new perspectives. Education and the design business lack genuine internationality. In grouping the interviewees, the clearest difference between groups was not dependent on the interviewee's background organisation. Interviewees most open to change had the common characteristic of having to engage in more work-related travel outside Finland than other interviewees. A few interviewees proposed half-seriously that educational institutions and enterprises should impose an obligatory stay abroad so that more international perspectives can be imported to Finland. A new role for design cannot be created from a local or even a national viewpoint or as a development project implemented in a single sector. It must be closely linked to the development of the entire innovation system. In fact, design education and enterprises providing and applying design have a global location. This change is rapid. Finland is on the point of trailing behind international development. Strategic design has not been developed and put into practice outside the larger enterprises. The use of design thinking for purposes other than products and services, as an innovatory approach, is rare in Finland. There is insufficient education in service design and it lacks sufficiently large markets: the need is great, but both supply and demand are small. Aalto University alone cannot rectify the situation. Design cannot be developed separately from other competences. In addition to belonging to the creative industries, it must be integrated more generally into Finland s innovation strategy. Technology-led innovation will not be enough in the 2010s we need 49 / 52

the perspectives of individual users on innovation. These perspectives are needed on a more general basis than merely when products and services are being designed. Uniform statistics are not sufficiently available for the promotion and evaluation of design. Neither are publicised Finnish success stories. 7.3. Proposals: Promotion of the Sector Finland requires a designated authority corresponding to the British Design Council, whose tasks include promoting the application of the new roles played by design (in the UK, this is defined more widely as the promotion of new roles played by the creative economy). This authority could be one that already exists, or one established for the purpose. Providing statistics on the sector and rationalising the available indicators are a prerequisite for the targeting and verification of development. Without suitable indicators, the benefits cannot be communicated to users of design. In the compilation of statistics, the sector s net sales and the impacts of activities should be presented separately. The ability to demonstrate the impacts on efficiency, innovation or business activities would facilitate the promotion of the sector. Statistics on the design sector itself and on its impacts on business activities should be harmonised in different countries, so that the situation and developments in these countries can be compared. Finland could assume an active role in this. The authority s task would include collecting and publishing success stories or case studies. With their help, various ways of creating benefits could be indicated. The other tasks of this authority could be selected from those of the Design Council and applied to the Finnish environment:http://www.designcouncil.org.uk/design-council/1/what-we-do/. 7.4. Proposals: Education and training Education and training on service design must be adequately organised in educational institutions - also outside Aalto University. To enhance user orientation, user insight must be integrated more closely with education on technology, economics and design. Education and training related to the new roles played by design must also be organised outside Aalto University. User-oriented innovation and strategic design application could be taught to students from various sectors at universities and polytechnics throughout Finland. Teaching need not be limited to students of economics and technology user orientation should be a self-evident approach, at least in all teaching related to services. In the future, all competition will be global in nature, which is why the regional approach must not be decisive in education and design training. Meeting each region s current needs through education will not develop the region. A good example of the opposite approach can be found in the design training organised in Umeå, which attracts top international talent, both students and researchers, to the town. In Umeå, satisfying regional demand is not the sole objective. International aspects should be highlighted as one of the most important objectives in all education. Can research, education and training be directed through funding so that international activities do not solely mean researcher or student exchange, but increasingly refer to participation in joint international projects? 7.5. Proposals: Public sector As regards user-oriented service design, the role of the public sector lies in setting an example in developing its own services and openly reporting on its experiences. Applying for support in the purchase of innovation services must be rendered easier and less complex. One of the first projects might be the development of application services related to funding for enterprises this would fulfil another wish expressed by the interviewees: an easier application process would be open to enterprises which currently cannot, or do not wish to, apply for support e.g. for innovation projects. Because design is closely linked to user-oriented innovation, which, in turn, accounts for much of the new potential represented by innovation, markedly greater investment than before should be made in the promotion of new design roles. Otherwise, Finland may begin lagging behind as the recession gives way to an economic upswing.

50 / 52

7.6. Proposals: Enterprises The key element is increased awareness at business management level. Companies will not begin applying the new design roles on a bottom-up basis, this first requires management approval. The role of an innovation champion presented earlier plays a crucial role in this. Presenting the benefits in measurable form and disseminating good practices through success stories is more effective than general awareness-raising campaigns. Can management teams be encouraged to heighten their awareness rather than adopting a passive, recipient-based role? In funding decisions, projects aimed at developing an enterprise's innovation systems, open innovation and user-centred systems could be prioritised ahead of product development projects. Service providers need information on service design as a user-oriented option for service definition. Some enterprises of this type view service design as mainly comprising graphic design and branding. The innovation activities of product-oriented enterprises can be enriched through the opportunities provided by service design, but only if the initiative comes from managerial level. Thus, with respect to enterprises, the above-described role of a champion networking directly with enterprise management is emphasised. This explains why such a champion must not be profiled as a promoter of traditional design, since the right message would not then get through to the enterprise's management. 7.7. Discussion Is new design required as just another silo? Or, particularly in its new roles, is it a competence that should be integrated into all activities in which something new is being developed or customer insight being created? In the light of the new design roles, will separate design units be needed in enterprises in the future? As a separate function, design s role is confined to applications at the most operational level. But with regards to the new role of design, what if the related methods and approach (Design Thinking) were applied to research and education at a more general level, with the aim of creating new products and services and user-oriented innovations? What if they were taught universally? 51 / 52

8. Interviewees The interviewees represented organisations (4 interviewees), educational institutions (4 interviewees), product-oriented companies (12 interviewees), the public sector (4 interviewees) and companies in the service industry (11 interviewees). The quotations in Chapter 6 were presented by courtesy of the following interviewees: Anna Valtonen, Rector, Umeå Institute of Design, Umeå University Anne Stenros, Vice President, Design, KONE Anssi Tuulenmäki, Research Manager, Aalto-yliopisto Fredrik Magnusson, Design Director, Iittala Group Hannele Humaloja-Virtanen, Director, Innovative Strategies, SOK Corporation Janne Viemerö, Technology Director, Tekes Juha Vaurio, Design Manager, Vaisala Jussi Sorsimo, Programme Director, Culminatum Innovation Oy Ltd Kalevi Ekman, Vice Rector, Professor, HUT / Director, Design Factory, Aalto University Lena Strömberg, Secretary General, Ornamo Marco Steinberg, Director, Strategic Design, SITRA Markku Salimäki, Dr.Sc.(Econ), M.Sc.(Eng), Programme Director, IDBM programme, HSE Mika Pitkälä, Director, Distribution Channels, Varma Mutual Pension Insurance Company Mikko Ahlström, Design Manager, Suunto Mikko Koivisto, Service Designer, Yatta Petteri Kolinen, Design Director, Martela Piia Savolainen, Chain Director, Suomen Varamiespalvelu Oy Siina Saksi, Head of Marketing and Customer Service, TrygVesta Thomas Pimenoff, Marketing Director, Nordea Bank Finland Toni Kauppila, Architect, SAFA (DipArch, The Bartlett, UK), Architect bureau ND/ UIAH/ Theatre Academy Helsinki/ TSE 52 / 52