The new design business model

In the face of increased competition through the democratization and globalization of design, how do designers make the profession competitive, profitable and sustainable over time? What is the new design business model?

As I thought about this question, it brought up several issues that the design profession needs to address.

1.   Design education needs to evolve with the demands of the industry and client needs. Less craft, more planning, research and evaluation of design.

2.   Designers tend to focus on quality of the artifact, not the business goal of the client. To paraphrase Bill Clinton, It’s the client, stupid.

3.   Other disciplines, like IT, are doing a great job at building their practices around helping clients solve business problems. Designers need to have a similar perspective with their practices.

4.   Design is quickly becoming commoditized. Designers need a new way to show their value in a crowded and competitive marketplace. Consider that within the next year, AIGA China will add social networking to its website, “enabling Chinese design students to upload portfolios of work for peer comment and serving as a resource for job seekers and employers.”(AIGA Website). This will ultimately increase competition, and further drive design towards commoditization. To stay ahead designers will need to change what they do; which leads us to the next point.

5.   Design is becoming less about craft and more about design thinking and process. Designers that focus solely on craft risk being relegated to competing on low cost. Design practitioners need to put more emphasis on solving the bigger communication problem, and bringing value to clients.

6.   Design egotist need to go away.  Collaboration is the new model for great design and innovation.