Strategic Growth of Industrial Design Consultancy. A study of changes in the ID consultancy in a post-industrial society

Abstract

Based on a study of Swedish and Finnish industrial design consultancies (IDCs) we discuss how changes in industry have affected id-consultancies cope with growth, organizational and management issues. The traditional industrial designer worked in a small consultancy mainly with clients focusing on mass-produced products. The clients were basically domestic even if they operated worldwide. Investment in technology, for instance CAD and rapid prototyping, required larger investments and many id-consultancies saw a need to expand in order to afford these investments. The growth trend will probably continue, with further demands on management skills and this will also, most likely, affect also the small design firms. The design maturity of the client firms is increasing which will put a higher demand on the professionalization of the design firms. Although design has received more attention and is recognized as a valuable tool for competitiveness, the knowledge about what IDCs do and the value of their work is still mainly restricted to those who have experience working with designers. Many designers still argue that their clients do not see how design and strategies are interconnected. The question is whether the IDCs know how to communicate their competence and contribution to business development and strategy creation. The strategic role of design is not always clear to the client firm, but the question is also if the IDCs are clear about what strategy means in a corporate perspective.