Monday 22 October 2012

THE BUSINESS OF DESIGN

UK Economy

7th Largest in the world.
3rd Largest in Europe.
One of the most globalised countries.
London is the largest financial centre equal with New York.
Largest industries – aerospace, pharmaceuticals, North Sea oil and gas.

What is an industry sector?

Goods-producing segment of an economy.
An area of the economy in which businesses share the same or a related product or service.
An industry or market sharing common characteristics.
Standard economic modules Identify 4 industrial Sectors.

What is an industry sector?

Primary Sector

The primary sector of the economy extracts or harvests products from the earth.
Activities associated with the primary sector include agriculture (both subsistence and commercial), mining, forestry, farming, grazing, hunting and gathering, fishing, and quarrying.

Secondary Sector

The secondary sector of the economy manufactures finished goods.
Activities associated with the secondary sector include metal working and smelting, automobile production, textile production, chemical and engineering industries, aerospace manufacturing, energy utilities, engineering, breweries and bottlers, construction, and shipbuilding.

Tertiary Sector

The tertiary sector of the economy is the service industry. 
Activities associated with this sector include retail and wholesale sales, transportation and distribution, entertainment (movies, television, radio, music, theater, etc.), restaurants, clerical services, media, tourism, insurance, banking, healthcare, and law.

Quaternary Sector

The quaternary sector of the economy consists of intellectual activities.
Activities associated with this sector include government, culture, libraries, scientific research, education, and information technology.

Why are industry sectors important?

Dividing an economy into different sectors with defined similarities allows for more in-depth analysis of the economy as a whole. 
Any economy can be divided into sectors, such as the economy of a particular city, or the global economy.

Why do you need to be aware of economic sectors?

The Service Industries

An industry made up of companies and organisations that primarily generate revenue through providing often intangible products or services.
Service industry companies are involved in retail, transport, distribution, food services, as well as other service dominated business. 
Also called service sector or tertiary sectorService industries can be divided into 3 further sectors

Public Sector

The part of the economy concerned with providing basic government, state or publicly owned services
The composition of the public sector varies by country, but in most countries public sector services include the police, military, public roads, public transit, primary/secondary education and health care.

The public sector usually provides services that are free at the point of delivery and a non-payer cannot be excluded from (such as street lighting, emergency services….)
These services are often of benefit to the whole of society rather than just the individual who uses them (such as public education, local government, NHS….)They are services that encourage and support the development of equal opportunities.

Government Departments

Department of Health
Department of Justice
Home Office
Foreign Office
Department of Transport
Department of Energy
Department for Work and Pensions
Department of Food and Agriculture
Ministry of Defence
Education Department
Department for Local Government
Department for Business and Innovation
Department for Culture Media and Sport
Department for International Development
The Treasury
Civil Service

Private Sector

The part of the economy that is not state controlled, and is run by individuals and companies for profit.
The private sector encompasses all for-profit businesses that are not owned or operated by the government.

In most free-market economies, the private sector is the sector where most jobs are held. 
This differs from countries where the government exerts considerable power over the economy, like in the People's Republic of China.

The part of national economy is driven by private enterprise and investment. 
It includes the personal sector (households) and the corporate sector (companies), and is responsible for allocating, distributing or accessing most of the resources within an economy.

These services are delivered for profit and are usually only by accessed by payment may benefit society as a whole. Although the services may benefit society their primary responsibility/function is to generate individual or company profits.

Third Sector

The part of the economy that includes voluntary or not-for-profit sectors or organisations.
The Third Sector includes voluntary and community organisations, Professional associations, self-help groups and community groups. It also encompasses social enterprises, mutuals and co-operatives.

Third Sector Organisations 

TSOs…an intermediary space between business and government where private energy can be deployed for public good” – Jim Joseph

The presence of a large non-profit sector is sometimes seen as an indicator of a healthy economy in local and national financial measurements.With a growing number of non-profit organizations focused on social services, the environment, education and other needs throughout society, the non-profit sector is increasingly central to the health and well being of society.

Service industries

Creative industries
Education
Health & social work
Financial and business services
Hotels and restaurants
Other social and personal services
Public administration and defence
Real estate and renting
TourismTransport
Storage & communication
Wholesale 
Retail tradestyle.

The creative industries

The creative industries refers to a range of economic activities which are concerned with the generation or exploitation of knowledge and information. They may variously also be referred to as the cultural industries (especially in Europe) or the creative economy.

This is a broad concept of domain in which activities related to creative work creation or production are carried out. It could be a synonymous term for entertainment industry. In general, creative industries are a set of service enterprises that engage in economic activities originating in individual skill, creativity, and talent, and which furthermore have the potential for wealth and job creation.

The sub-domains under creative industry include:  

Advertising
Architecture
Arts and Antique markets
Crafts
Designer Fashion
Film Video and photography
Graphic Design
Software
Computer games 
Electronic publishing
The visual and performing arts
Publishing
Television
Radio
Music industry
Film industry
Animation industry
Game industry
Post-production
Fashion & Textiles

“Design is the thread that connects ideas and discovery to people and markets” 
The Business of Design The Design Council 2005

Design & Industry

185, 500 designers are generating £11.6 billion in annual turnover
62% of Designers are under 40
31% (20,436) of design businesses are based in London
69% isn’t 59% of design companies employ fewer than 5 people
Over 50% of UK design businesses work in communications, digital and multimedia design

Working in the Creative Industries.

There are 3 main types of companies working in the creative industries
Design Studios/Consultancies
In-House design teams
Freelance designers

Disciplines in the Creative Industries.

Communication Design
Product and Industrial design
Interior and Exhibition Design
Fashion and Textile Design
Digital and Multimedia Design
Service Design

Disciplines in the Creative Industries.

Communication Design
Graphic Design 
Illustration
Retail & Promotion
Publishing Editorial 
Product & Packaging
Branding & Identity
Information &Wayfinding
Type & Typographic Design
Print & Production
Digital & Multimedia design
Digital & Multimedia Design
Web design & development
Interface Design
Design for Mobile Technology
Games Design
Motion Graphics
Digital Film & Animation
Special effects

Disciplines in the Creative Industries.

50% of designers working in Communication Design also work in digital and multimedia design.
These 2 areas are the most integrated disciplines within the creative industries
They service all sectors of local, regional, national and international economic sectors (including public, private and third sector organisations).

Who is looking after our interests?

CBI – Confederation of British Industry 

NESTA – the National Endowment for Science Technology and the Arts 

THE DESIGN COUNCIL 

CSD – Chartered Society of Designers

D&AD – Design & Art Direction Network

AOI – Association of Illustrators

TIGA - TIGA's vision is to make the UK the best place in the world to do games business.

BIPP – British Institute of Professional Photographers

RIBA – Royal Institute of British Architects

BFMA – British Furniture Manufacturers Association

IPA – Institute of Professional Advertisers

RPS – Royal Photographic Society

BIID – British Institute of Interior Design

RSBA – Royal Society of British Artists