Research Presentation DayResearch Presentation DayGlasgow, Glasgow, 2121stst January 200 January 20044

Adding value in design:

Investigation ofvalue in industry

Michael Reber (PhD Student)

Alex Duffy (Supervisor)

CAD Centre, DMEM, University of Strathclyde

Focus

Business Context Companies are bound by their investors to increase value. Value represents an important indicator for the internal

navigation of companies and value receives an increasing importance in reporting for external purpose.

Scope Value in the context of design development

Aim Enhance added value in design

Objectives investigate practice and literature to establish insights and

form the basis for the framework develop and adapt the framework to reflect design test and evaluate the findings in industry

AValue

Framework

Introduction

Investigation on

valuein industry

Literature research

Summary

Investigation of value in industry

Scope Focus on value and adding value Machinery Industry, > 500 employees, Germany 8 companies, 32 open interviews CEO‘s, Design Department, Product Development, Product

Management, Sales Department

Introduction

AValue

Framework

Investigation on

valuein industry

Literature research

Summary

Value (V)

Introduction

AValue

Framework

Is related to...

Key Item

Related Item

Ethic

(1) V is close to ethic and moral principles.

Moral Principles

Economic Aspects

(3) V is related to economic andfinancial aspects.

Investigation of value

Investigation on

valuein industry

Literature research

Summary

(7) 50% of the interview partnersee a relation between

V and Profit

Business

Goal

Profit

(8) The majority believes that analignment of personal values andcompany values is important for

company success andwould result in satisfaction,

one‘s own initiative andmotivation

Personal ValueBusiness Value

Emotion

(2) V is seen as an emotionalissue

Quality

Customer

(6) Quality is seen as a matterof high value to customer.

(4) V depends on the experienceof a person

Person

Experience

Metric

(5) V is a kind of measure andcan be positive or negative.

Adding Value(AV)

Introduction

AValue

Framework

Other Business Processes

(6) Only a few interview partners belief that AV is relevant to other

business processes.

Investigation of adding value

Investigation on

valuein industry

Literature research

Summary

Is related to...

Key Item

Related Item

Goal

(2) Without AV goals can not be achieved.

(4) The metric of AV is seen as profit orrelations like turnover to profit, internal production

cost to external production cost ...

Metric

(1) AV is seen as an activity.

Activity

(7) AV is understood as a matter of process improvement

Process Improvement

Process

(5) AV is seen as an activity within a production process.

Production Process

(3) Asked about goals, the focus was on business goals like

Chance of Survival, Innovation Leadership,Market Position, Profit etc.

(Employees did not talk aboutpersonal goals)

Business Goals

Personal Goals

Outcome from investigation

Although, different understandings of value exist, high level management belief in value as an important business indicator.

An alignment of personal vales and company values seems to be important for company success.

There seems to be a link of value to decision making processes.

Value is seen as abstract, complex and a matter of theory. Value seems to be an emotional issue. PD Engineers could not articulate their meaning of value. Adding value is seen as an activity in the production process. Without adding value, goals can not be achieved.

Introduction

AValue

Framework

Investigation on

valuein industry

Literature research

Summary

Value is an important indicator for enterprise navigation. Alignment of company values and personal values is an issue. Value is linked to decision making and knowledge

management. A number of theories and definitions exist. Definitions are not useful to gain knowledge on value in design. Adding value is seen as an activity. Without Adding value, goals can not be achieved. No fundamental framework of value exist. Outcomes of the investigation and literature review form a

basis for the development of a fundamental value framework.

Summary

Introduction

AValue

Framework

Investigation on

valuein industry

Literature research

Summary

Research Presentation DayResearch Presentation DayGlasgow, Glasgow, 2121stst January 200 January 20044

Adding value in design:

Investigation ofvalue in industry

Michael Reber (PhD Student)

Alex Duffy (Supervisor)

CAD Centre, DMEM, University of Strathclyde