Analysis: designs on the prize

From October next year the little paper certificate on our windscreens will be no more. We will be allowed to spread the cost over twelve months as direct debit is to be introduced. And we won't have to fret about exactly where in the filing cabinet we put our current insurance certificate as the government will track who has and who hasn't paid the tax using a central database which also details a car's insurance status.

In short the system is to be re-designed and life will become just a little bit easier. For once I and many others find ourselves smiling approvingly at the tax man, while the government for its part will pocket savings of £7m a year in administration costs.

Design is more usually associated with ergonomic computer mice, bottles with feminine curves or anthropomorphised car headlights. Indeed all of these examples are icons of the design profession but design also encompasses the packaging of a product, the appeal and memorability of a company logo and as the Chancellor has learnt, a customer's experience of a service.

The rewards for taking good design seriously are not to be under-estimated. Backing up the government's estimate of savings due to the redesign of paying for Vehicle Excise Duty a recent study conducted by the Design Council reveals that for every £1 a business invests in design they can expect £20 in increased revenue, a £4 increase in net profit and over £5 in increased exports.

Design is another one of those aspects of business which seem onerous at the outset. For some it is akin to having to produce a business plan. A chore or a distraction. The urge is just to get on and produce the widget or whatever and start making money. For others design may be overlooked because it is assumed that it will add cost.

But like the business plan consideration of the design of your product or service early on forces you to consider fundamental questions. A process that will save you time and money in the long run and may even determine the success or failure of your venture.

Questions such as how will it feel to use my product? Does it look like a quality product? Will it fit in with the surrounds where it is intended to be used? Will it stand-out on the shelves?

If your business is an e-commerce site, it's worth considering how easy it will be to use. Indeed it's worth trying to make your website the easiest to use on the market as this will deliver competitive advantage and so boost profits.

However do not expect that the market will let you rest on your laurels. Design is an ever evolving beast and even classics will in time be superseded. That is why it is good idea to incorporate a design process as an intrinsic part of your business from the outset, informing strategy, brand and the very ethos of your business.

A first stop for many will be to get some advice on exactly what design is and what part it can play in your business. In this Scottish Enterprise has a design innovation service which can point you in the right direction by giving you the basics on the value of design, putting companies in touch with potential design partners and advising on costs.

What is most striking about design today is how it has reached beyond questions of aesthetic appeal. By using design to improve customer experiences and act as an engine of innovation many companies are making improvements that make them stand out in markets where competition has in recent years become even more intense.

Germany's continued economic dominance is perhaps one of the best examples of where the emphasis on good design has ensured continued competitive advantage. 'Vorsprung durch tecknik' as the iconic German motor car advert proclaims, literally translates as 'advancement through technology' but it would not be stretching it too far to translate it as 'progress through design'.

However let's hope the chancellor doesn't get too adept in this particular regard.