The Business of Design

In an economy where style is king, we all need to start thinking and acting more like design.

Quick, what's your IQ? No, not your intelligence quotient -- your imagination quotient. In this turbulent, get-real economy, the advantage goes to those who can outimagine and outcreate their competitors. So says Roger Martin, who has devoted his professional life to the study of competition -- first as a director at Monitor Co., the Boston-based consultancy, and now as dean of the University of Toronto's Rotman School of Management.

Martin believes that the North American economy is radically transforming. As the production of goods and services increasingly becomes routinized, the cost advantages across a growing array of industries accrue to China and India. Scale alone is not enough to thrive in a world where markets are rapidly globalizing; incremental improvement won't deliver a decent ROI.

The upshot, says Martin, is nothing less than the emergence of the design economy -- the successor to the information economy, and, before it, the service and manufacturing economies. And that shift, he argues, has profound implications for every business leader and manager among us: "Businesspeople don't just need to understand designers better -- they need to become designers."

In a global economy, elegant design is becoming a critical competitive advantage. Trouble is, most business folks don't think like designers.

Bill Breen is Fast Company's senior projects editor. He is based in Boston.

http://www.fastcompany.com/

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