Business has professionalised its ability to recreate, extend and communicate value through management of the supply side of the market economy. However, this often comes at the expense of its ability to identify and create new forms of value by managing the demand side. Design enables businesses to create new value by identifying and supplying for demand that might otherwise remain hidden.
Supply and demand are the yin and yang of the market economy. When managed independent of each other, each experiences finite ability to create growth and prosperity. Managed as interdependent, supply management and demand management give rise to each other unlocking endless renewal and growth in the economy while enabling companies to achieve heightened and sustainable levels of growth, profit, differentiation, agility, and innovation.
Tom DeVries, a ThoughtFull Founding Partner, shared his thoughts about Michigan’s future during a discussion with Michigan Public Radio. Here’s an excerpt from the interview and his follow-up article.
Michigan makes things. Millions of things. But we don’t just manufacture them. We also invent and design them. For over a century, Michigan has led both developing the form and function of many high value market segments, including: furniture, appliances, medical devices, automobiles, aerospace, and agricultural products.
However, Michigan’s business culture exists in a decaying, industrial-focused paradigm—one that has become arbitrary and thoughtless in the production of goods and how they are brought to market. This is resulting in unacceptable failure rates – 96 percent according to Doblin – of new product launches. This is bad business and costly to Michigan’s economy.
Michigan needs to break away from its old habits that lead to consumer objectification and unacceptable failure rates in new products and services. They say “old habits die hard,” but businesses in Michigan, led by an active and engaged design community, can lead us into the new economy.