Some notes from the lecture we recently had on The Business of Design, specifically the idea of different sectors and where we would fit in as graphic designers.
I found it very interesting and eye opening, I never really learnt this side of business before in A-Levels and it was also directly relevant for the Life's A Pitch brief which I really want to have a good stab at for long-term reasons.
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Life's a Pitch - Enterprise Pitch, Look at costing of designing a studio.
Plan/Proposal/Presentation - 10 minutes
Fully functioning business model. Interview and ask existing studios of issues when starting up and general tips?
Market analysis
Info-packs/Websites/Mail-outs/Branding and Events can take place. Basically just create a design studio and present it. Presentations take place on 29/01/2013
Reading List -
100 Habits of Succesful Graphic Designers
Be A Graphic Designer Without Losing Your Soul
The Fundamentals of Design Management
The Business of Design
TIP: Don't work with someone you're not prepared to take to court. Think seriously about the relationships and skill sets that you think would work well together for a design studio.
ECONOMY:
UK is 7th largest economy in the world
London is the largest financial centre in the world, equal with NY. One of the most globalised in the world.
Leeds isn't far from London. London is almost local.
INDUSTRY SECTOR
- Economy within industry. But sector
- Part of economy which produces goods.
- Sectors which share common characteristics
- Standard economic models identify 4 sectors/
- Primary Sector
Harvesting, agriculture, farming, fishing etc. Primal kind of activities, Society can't really exist without the primary sector. It produces the core material.
- Secondary Sector
Manufacturing and finishing goods. Metal working, engineering, construction. Productivity. Producing stuff that's sellable. Refining raw materials from the primary sector.
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Tertiary Sector
Service industry. Proving a service to make life easier, transport, retail, tourism, healthcare, law. Things that provide consumables and services to us.
- Quaternary Sector
Intellectual activities. Government libraries education. Informing and instructing people.
Also a 5th one, not as commonly focused on..
- Quinternary Sector
Futuregazing and developmental factors. Taking research and education.
The sectors have been posed by analysts who want to analyse what's going and work out the economy. Economists and analysts.
Any economy can be divided into sectors at a regional, national and international level.
WHY DO YOU NEED TO BE AWARE OF ECONOMIC SECTORS?
- Trends
- Relationships between sectors e.g. shortage of milk
- So you know what sectors and groups of consumers to target
- Seeing future trends
- Know of competition
- Seeing gaps in the market
- Allows you to benchmark yourself
- Make a niche for yourself
THE SERVICE INDUSTRIES (Tertiary Sector)
Generate revenue through often intangible products of a service.
Service industries are invovled in retail, distribution, food services. Also called service sector or tertiary sector.
Service industries can be divided into 3 more sectors.
Public Sector
Owned by the government
Publically owned services. Local council etc. Public transit, primary/secondary education, healthcare.
General fabric of our society. Different countries have different public sectors. If you refuse to play tax, nothing still 'stops'.
Equal Opportunities - basically paid for by the public.
Government departments - Home office, Civil Services, Agriculture etc.
Free at the point of delivery.
Private Sector
Primarily money driven. Profit driven sector of our society. Idea of offering services, but wanting money for it.
Run by individuals and companies and not the government. Generating income to pass on to shareholders, company, employees etc.
e.g. China has huge economoc growth. It's state run. So every employee is owned by the state, which allows them to shift resources and professionals. For example for the 2008 Olympics, teachers were made into welders with pretty much no debt after the Olympics. Only problem is now they have problems as there's loads of unemployed welders and not many teachers.
Households are under the private sector, corporate sector too. Driven by payments.
Third Sector
Really important to know for creative industries.
Voluntarty or not-for-profit sectors. For example communities, charities, enterprise etc.
Not state/commercially run. This is kind of a middle space.
Jim Joseph, "Space between business and government where private energy can be deployed for public good."
Non-profit organisations. Not that no-one earns anything. Get money through other services - grants, public funding.
Even in the difficult economy, the world still goes round and people invest.
THE SERVICE INDUSTRIES
- The Creative Industries
- Education, Health & Social Work
- Financial and Business services
- Hotels & Restaurants
- Other social and personal services
- Public admin & defence
- Real Estate and renting
- Transport & communication
- Wholesale trade and retail
- Any of these could have public/private/third sectors within them
SERVICE INDUSTRIES ----> THE CREATIVE INDUSTRIES
Economic activities which are concerned with generation and exploitation of knowledge and information -
sometimes referred to as the cultural industries. especially in Europe.
Service in relation to economy. Not hobbyist activities stuff. Serious businesses with an industry mindset.
Offering skills as a money making activity.
Shift from advancing from activity to a job at a money making level.
'The Business of Design' The Design Council. 2005. PDF :
"Design is the thread that connects ideas and discovery to people and markets."
sub-domains:
- Advertising
- Architecture
- Graphic design
- Film industry
- Radio
- Television
- Fashion and textiles
DESIGN INDUSTRY
185,500 designers are generating £11.6 billion in annual turnover
62% of active designers are under 40. Becoming an increasingly graduate-fed industry.
31% of design businesses are based in london
69% of design business are not based in London. North West is about 20%, North West about 30%
59% of design companies employ fewer than 5 people. Small businesses are the backbone of the industry.
Over 50% of UK design businesses work in communication, digital and multimedia. 3 main types. Increasing reliance on being skilled in more than one specialism.
3 different types of graphic design businesses:
Design Studio/Consultancies - Deal with design and clients directly with the money-made directly in the studio's interest.
In-house design teams - A lot of big commercial businesses such as HSBC tend to have their own in-house design teams where they're part of a big design company.
Freelance designer - Self employed, move between design studios and in-house. Deal with clients personally too.
50% of designers work in communication and digital/multimedia
Which links to how we're working on design for print and web. Ticks both boxes.
The 2 areas service all sectors. Not just creative sectors.
Integrate to all sectors. e.g. Secondary sector builders have brands and logos they'll need designing. Along with branding and print work for companies such as JCB and Snickers.
Works across public and private sectors.
Significant opportunities out there for someone who enters the industry strategically.
WHO LOOKS AFTER OUR INTERESTS?
CBI
NESTA
D&AD
AOI
TIGA
BIPP
RIBA
RSBA
CSD
All give advice and resources. Services across a range of sectors.
Government ---> Treasury and Civil Service ---> How money flowes through government funding schemes through different sectors. Helps you start up.
Recognising the ability to collaborate. Graphic Design is very much about collaborating, doing it yourself without contact with anyone else can sometimes eem quite hobbyist.
Creative Coalition Campaign
A union of creative practitioners. - Intellectual property etc.
Thinking of yourself as a pro.
Next lecture: Who Are They?