Personal Professional Practice: THE BUSINESS OF DESIGN//PRESENTATION//OUGD502

THE BUSINESS OF DESIGN: PRESENTATION// PPP2

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 (start to realise they are significant industries and opportunities)

What is an industry sector?

goods-producing segment of an economy - anything from information to actual product, a segment of an economy tat is producing goods
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 territory 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?

benchmark yourself against people in order to compete, whose the competition? try to gain an advantage
start to see whats going on in the current market
gaps in the market
see where the money is, whose investing where? identify and predict over the next five, ten, fifteen years where the markets going to be, where the money is going to be etc.
predicting future trends

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 territory sector.
Service 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 etc.)
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 etc.) promote and support this sense of equal opportunities, creating open access to open opportunities, centrally funded by the tax payer to fund services that everyone can use.

Public Sector, Government Departments (that help manage and facilitate the sectors) publicly owned

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

Counter to that is: 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.

Private Sector

The private sector is to generate individual or company profit:

• 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.

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

• ”...anintermediaryspacebetweenbusinessand government where private energy can be deployed for public good”
• – Jim Joseph
• Thepresenceofalargenon-profitsectorissometimes seen as an indicator of a healthy economy in local and national financial measurements.[4] 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 and social work
financial and business services
hotels and restaurants
other social and personal services
public administration and defence
real estate and renting
tourism
transport storage and communication
wholesale and retail trade

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

A whole set of industries where the main economic actives are concerned with the generation or exploration of knowledge and information.

The creative industries: the sub domains under creative industry include:

advertising
television
publishing
radio
architecture
arts and antiques markets
crafts
designer fashion
film, video and photography
graphic Design
software, computer games and electronic
music industry
film industry
animation industry
game industry
post production
fashion & textiles
the visual and performing arts

'DESIGN IS THE THREAD THAT CONNECTS IDEAS AND DISCOVERY TO PEOPLE AND MARKETS' - The Business of Design, The Design Council 2005

Design and 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 five people
Over 50% of UK design businesses work in communication, digital and multimedia design

Working in the creative Industries

There are three main types of companies working in the creative industries:

Design Studios/Consultations
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
Graphic Design & Illustration

Retail & Promotion, Publishing & Editorial, Product & Packaging, Branding & Identity, Information & Way finding, Type & Typographic Design , Print & Production , 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 and 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