Corporate Corner
This is a reference to stories on firms that do well through design.
Thomson Consumer Electronics
HAG a.s., Norway
LG Electronics
Thomson Consumer Electronics
Date: Tue, 7 Mar 1995 15:14:48 +0200 (EET)
From: Ludo Vandendriessche
To: AAicsidserv
Subject: Article on ICSID corporate member Mime-Version: 1.0
The challenges and accomplishments faced by Thomson's American Design organization have been centered around the profound changes in technology, consumer behavior and business practices.
Technology. As the world of electronics is rapidly evolving from analog to digital, the switch to digital technology has created the possibility of entirely new consumer-based products and services.
Thomson's direct-to-home digital satellite broadcast system is one example. Digital DBS provides a high bandwidth digital data stream directly to every home in the US, from a geosynchronus satellite 23,000 miles in space. This has created a platform for additional new products and services.
Because of Design's ability to analyze and communicate the impact this technology may have relative to customer needs and behavior patterns, it has played a larger role in the formulation of overall business strategies.
Consumer Behavior. Firstly, in this area, stable and easily identifiable consumer demographies and lifestyles no longer exist in the US. Secondly, contemporary market research and usability testing techniques may only help refine existing products. To better understand what new products and services may better meet the changing needs of the customers requires a totally new approach to the design process.
While "customer-driven" has become a well-worn phrase within industry, Thomson Design has embarked on a new "user-centered" design process.
Developed in conjunction with Rick Robinson and John Cain while at the Doblin Group in Chicago, this process employs creative ethnographic research techniques and sophisticated computer-based analytical tools to assist in the creation of new product concepts or service scenarios. This process has resulted in expanding the skill mix within the Thomson Design Center to include cognitive psychology, anthropology and software engineering.
Business practices. Examining the changes in this area, speed-to-market has not only become a key performance measurement within Thomson, but it has become critical to survive in the tough consumer electronics marketplace.
Computer-based hardware and software design tools, coupled to high speed, world-wide data networks, are now an essential part of the design process. The industrial design staff has been enhanced to include a small team of CAD/CAM specialists capable of creating, modifying and transmitting sophisticated 3-D databases for the purposes of engineering evaluation and manufacturing validation.
User-interface designers employ computer scientists who prototype navigation systems using software simulation tools. Such prototypes are developed for internal engineering systems evaluation and external consumer-usability testing.
Design and change. Clearly, the definition of Design within Thomson has changed dramatically over the past 5 years. Superficially, this may seem obvious given the fundamental changes in technology, consumer behavior and business. However, the alert corporations are embracing design as a key strategic business element.
[ Top of Page ]
HAG a.s., Norway
Date: Thu, 9 Mar 1995 09:41:20 +0200 (EET)
From: Ludo Vandendriessche
To: AAicsidserv
Subject: Hag and Design
Mime-Version: 1.0
HAG is one of the major manufacturers and marketers of office/work chairs in Scandinavia. With sales subsidiaries in Norway, Sweden, Denmark, Germany and the US, their aim is to create functional seating solutions with extensive quality. Production is located in Norway and the US.
Their personnel policy attempts to create a company culture in which the employees take the initiative and responsibility to create a different and better company. The ultimate goal is to hire employees who concentrate on meeting the customers' requirements.
HAG was elected the Design Company of the Year in 1986 and 1992, and received the Export Prize in 1991. At present, exports represent about 75% of their total turnover. At the end of 1994 the total turnover was more than 300 million NOK and they employ 275 persons. The company has a good profitability and has been quoted on the Oslo Stock Exchange since 1992.
Ergonomics.
The product development of office chairs in Scandinavia, to a large extent, has been under the influence of the legislation in the various countries. As early as the 1970s, working environment legislation was enacted with strong demands being placed on the design and shape of the workplace.
In addition, a developed workplace medical service, influencing the decision-making for purchasing chairs, was also important in setting ergonomic requirements. Such things as the simple adjustment to various body sizes and various sitting positions were considered important. The visual design of the place of work often became a balancing item when considering that "function gives the form".
Expanding markets.
During the 80s the company tried to launch its products on the European and American markets. However, they soon realized that the fact that the chairs lacked "visual emission" was the greatest hinder to success. Nevertheless, they would not compromise their Scandinavian ergonomical roots. They were faced with the task of designing fully-functional chairs with an in international design. The goal was finally achieved: HAG was awarded the "Gold Awards" at the NeoCon Exhibition in Chicago, both in 1992 and 1993.
Broad representation.
Of course, in a market with surplus capacity, pricing is subject to pressure. As a product developer, their challenge has been to produce cheaper chairs with a constantly improved functional content. The company's working methodology provides "Integrated Product Development" from the outset of any project.
Both the market and production are represented in the project group. In addition, they are always using external industrial designers as a source of inspiration and evaluation. Through structured work and the ability to make fast decisions, they have managed to cut down the development time of their new products by half.
At the same time, the philosophies focused around "Design for Assembly" have led to the production of fewer components and a shorter production time. Furthermore, HAG has been able to maintain its significant environmental policy to secure environmentally-friendly and resource-saving products.
New work chair.
These principles and attitudes have been materialized in their new work chair: HAG SCIO. The chair is an environmentally-friendly, fully-functional office chair in a low price range. And the entire project was carried out from start to finish in 20 months. The chair was launched a year ago and has been overwhelmingly accepted.
[ Top of Page ]
LG ELECTRONICS AND DESIGN
Date: Thu, 9 Mar 1995 09:44:38 +0200 (EET)
From: Ludo Vandendriessche
To: AAicsidserv
Subject: LG ELECTRONICS AND DESIGN
Mime-Version: 1.0
Design in general is full of challenge, and LG Electronics, as a rapidly growing organization, is no stranger to challenge either. Indeed, the last two years in particular have presented a lot of new ideas and principles for its designers to assimilate, especially in the area of multimedia.
Multimedia integration
LG Electronics's in-house term for multimedia is Hi-Media. They use this word to cover their activities in the area of CDi, 3DO, Multimedia PCs, associated software, and the integration of technologies in this field.
While having these products on the market, their designers were aware that future possibilities in converging texts, images, sound and communications covered a huge field. But the main obstacle here was to find an effective role for the designer in it.
Herein lay one of their greatest challenges: "To fully integrate our designers into this new and rapidly expanding field, where multidisciplinary, cross-boundary flexibility might win out against fixed field specialization, and in the process refocus and maximise the designer's talents."
Visions
Two ways the company perceived of broadening their perception of this were:
1. To hold a Multimedia Workshop. This was accomplished by the Hi-Media '94 Summer Workshop, held in GSDT, the company's European Design Centre. Future ideas were visualized by a group of 23 European, Korean and American design students in an unencumbered environment and presented to Goldstar Design staff and guests.
2. To focus their biennial LG Electronics Design Competition on this area in order to stimulate new ideas and approaches. To this end, the theme of their 1995 competition is "Creating a New Age - Hi Media" (see previously sent message). It is expected to be a great success, given the response and quality of entries to previous years' competitions. This year's competition will emphasize the global community and border/distance free cultural exchanges that new technologies will allow and indeed encourage.
Results
Having completed the first stage in July '94, innovative ideas could be filtered through which provoked much in-house discussion and debate. In particular, the areas of interfaces and user-friendliness as applicable to domestic and business environments have received special attention. And its success has merited the planning of another Workshop this coming summer.
The 1995 LG Electronics Competition was recently launched, to be coordinated from LG Electronics's Seoul Design Centre and entries are eagerly awaited.
Setting a precedent. In their opinion, these two events come very high on the company's list of accomplishments, since they are not areas that a typical in-house design facility would encounter. The logistics of holding an International Design competition are considerable. Despite this, the Hi-Media Workshop was one of the first of its type, since it focused on Industrial Designers and their perception of the future through multimedia.
This lack of precedent ensured that it was going to be a challenge. Nevertheless, the benefits of both to the future direction of design, and to the designers who partake in these activities, cannot be overestimated.
[ Top of Page ]