Sustainable Design

Sustainable Design
© PK* [Dec.20, 2009]

No one can be sure if sustainable design – also known as eco-design, green design and environmental design – will be just a hit-and-miss in the market trend or not. However, we do know that global warming is still a serious topic as recently there was a conference held by the United Nations Climate Change Conference (2009). Now, the concern of global warming has a huge impact on the attitude of people all around the world. We are concerned about the material, energy and technology used in the production process. Sustainable technologies often use less energy, fewer limited resources, and recycled materials which will not pollute the environment. Consequently, green products soon become a hit since they are recyclable and having a low carbon footprint. At this point, the concept of sustainable design can be applied not only to a small product (microcosm) but also to a large building (macrocosm).

In Industrial design, many companies now aim to create a product that has a long-term value and select the best alternative to reduce the waste of energy in the production process. They use more recycled materials and apply non-toxic colors in the finishing process. This movement helps drive the market trend in sustainable design.

Furniture is recently designed using more sustainable materials, such as weed, bamboo and certificated wood. Besides the concept of human-centered design, the new design is created in the way that the furniture is easy to repair and recycle. Many companies like ‘Steelcase’ have also improved their production system to be more sustainable.

Graphic design also has a large social impact since the prints are everywhere; on the package, poster, magazine, and so on. Many companies have tried to incorporate vegetable-based ink and recycled material into their products. Moreover, there are much more design awards related to this topic than before.

Architects focus mainly on the environmental impact of the buildings both during the construction process and during the lifecycle of the buildings. The power generation using solar technology and the temperature control using green roofs are two popular techniques used in sustainable architecture.

In urban planning, the planners are concerned more about the infrastructure and the relationship among things in the city. For instance, they may try to improve the public transportation in order to reduce the need of private vehicles which cause a lot of pollution.

Now, to put all of these into practice, we need to create a momentum as a social force to support the idea. The governments have to participate in the conference and reconsider their public policies. In the private sector, both of profit and non-profit organizations can help support the great idea too. At this point, Allan Chochinov from “Core 77” has mentioned some interesting ideas that designers, as one of the key players, can help carrying the concept:

-  Designers should use the word “consequence” when thinking about the end result of the products. Chochinov stated, “Designers think they’re in the artifact business, but they’re not. They’re in the consequence business.”

-  Next, he mentioned that designers had a right to introduce the sustainable concept without a need to ask for the permission. They should be able to tell clients or bosses a benefit of sustainable design.

-  He also mentioned that designers don’t need to design something brand new, but taking what they already have and design a different use into it – reduce, reuse, and recycle.

-  Then he talked about the market segment that one design product could have gone a whole lot farther if more people could share it. That is what designers should keep in mind when creating a concept.

All in all, the environmental problem seems to be a very complicated issue. We cannot solve this problem alone without having a good public policy to reinforce. It’s everyone’s responsibility. As mentioned, there are many ways you can help whether you are designer, architect, planner, governor, business person, or else. The information in this article is only a basic understanding and a short guideline that designers and everyone can take into practice. Sustainable design is good not only for the earth but also for your business. Thus, it’s not a bad idea to go green and promote it. Yes, you could reuse this concept as many times as you wish.

© PK* [Dec.20, 2009]

*References:

- http://en.wikipedia.org/wiki/United_Nations_Climate_Change_Conference_2009

- http://en.wikipedia.org/wiki/Sustainable_design

- http://www.green-furniture.com/sustainableecofurniture.html

- http://www.treehugger.com/files/2009/02/allan-chochinovs-10-steps-for-sustainable-design.php

AOL’s New Logo: From Average to Worst

*Image: http://www.pcmag.com/article2/0,2817,2356211,00.asp

WHAT?

[New logo design: AOL >> Aol.+ stock images]

“The new AOL brand identity is a simple, confident logotype, revealed by ever changing images.  It’s one consistent logo with countless ways to reveal..” – AOL

“Our new identity is uniquely dynamic. Our business is focused on creating world-class experiences for consumers and AOL is centered on creative and talented people – employees, partners, and advertisers…”

“AOL partnered with Wolff Olins, a global brand and innovation consultancy, to develop a brand identity that speaks to the company’s future.”

*Source: AOL http://corp.aol.com/press-releases/2009/11/aol-previews-new-brand-identity-its-future-independent-content-driven-company [Nov.22, 2009]

BY WHOM?

“Brand expression: Clients need deeper connections with customers. We help them create brand names, visual and verbal identities. Communicate in the most compelling ways, online and offline. And manage their brands for the long term…” – Wolff Olins [http://www.wolffolins.com]

PK*Says: What a junk!

AOL is trying to rebrand which is a good idea, but their execution is poor.

I mean C’mon if you want to play around the logo like Google, you should create a logo (the text, in this case) that can stand alone very well first. Once you put a strong text logo in place, you may put some other images behind or beside that logo as you want. In this case, without the images underneath, the white text will be hard to read on a bright background which shows a very weak identity. This is not a “world-class experience” as they mentioned.

I would suggest AOL and its consultant to rethink about the visibility again, especially the contrast which is a basic principle in design. A real professional knows that good design firms will provide you not only a logo that can convey a strong brand identity but also a logo that is visible on both of dark and bright background. That is why most of them present their works to clients on both of black and white background. Looking at the new logo above, I have no idea what “Aol” is, perhaps just a watermark, and if I step back from the computer screen a little bit, the word “Aol” is gone because of the poor visibility in design.

Yet, AOL’s new logo is flexible and dynamic, but it’s not very creative as they claimed at all. In contrast, Google has done a better job creating a fun variation for their logo. By playing with the configuration of “Google”, they show a high level of creativity. The logos are also meaningful and fun despite the low visibility in some. Google can play more with the emotion of users like this because they have already had a strong brand with a unique logo. Moreover, as you can see, they do not simply buy the stock images and put the text logo on top like AOL. Using stock images in logo design is widely considered as a cheap and lazy design – not creative!

This is very critical for the brand identity. Yes, indeed, branding is mainly about people and the experience. However, logo is like your face; a clean and beautiful face is more attractive compared to the one wearing too much makeup like a joker. At least, it should be clean enough to represent who you are. I have seen many consultant companies trying to be so creative in front of the clients, but they are not. Behind the scene, they just bought a cheap design to save their budget. A better one must provide some feedbacks working back and force with designers. The best one let their clients and users participate in the developing process too.

AOL needs a better team which has a better visual experience. The content on Wolff Olines’ website is more like advertising at the bus stop. If I were an executive at AOL, I would definitely not give my vote for them.

Good attempt, poor execution.

PK* [Nov.23, 2009]

Updated: I just realized that many people are talking about this logo, and we all are agree. You may read this article (which is posted after mine) for more details.

Art and Thai Creative Economy

 

In the interview, Dr. Apinun Posayanon talked about art and Thai creative economy. Here are some interesting points…

…..

“…ผมมองว่าในช่วง ๕ ปีที่ผ่านมามันเริ่มมีการทำงานแบบไขว้ประสาน เช่นแฟชั่นกับภาพยนตร์หรือสถาปัตยกรรมกับศิลปะจัดวาง มิวสิควีดีโอกับงานมัณฑศิลป์ ผมคิดว่าเหล่านี้คงเป็นกระแสโลกด้วย เราอาจจะมองว่าการสื่อสาร มีไอพอต เอ็มพีสาม เอ็มพีสี่ มีอินเตอร์เน็ตเหล่านี้ทำให้ทุกอย่างเกิดการทำงานไขว้กัน…”

[PK*NOTE: Cross-functional work]

 

“…Creative Economy ซึ่งเหล่านี้หากเราใช้ให้ถูกทางจะเกิดประโยชน์มหาศาล แม้แต่ ญี่ปุ่น เกาหลี ฮ่องกง สิงคโปร์เขาก็เริ่มจับทางนี้ได้แล้ว… กรณีของเรนก็คือผลผลิตของทางภาครัฐที่มีเอกชนหนุน รัฐช่วยส่งเสริมเป็น Brand หรือ Icon ออกไป ตรงนี้ผมคิดว่าศักยภาพของเรามี ทางภาคเอกชนก็มี แต่การกรุยทางตอนนี้เพิ่งเริ่มต้น ผมคิดว่าอีก ๕ ปีนี้น่าจะมีการพัฒนาร่วมกัน…”

[PK*NOTE: Public and private sectors should work together in order to promote the brand icon in the creative economy.]

 

“…ผมมองว่ามีอยู่ช่วงหนึ่งความเชยก็เป็นแฟชั่น ในความฉาบฉวยตรงนั้นก็จะมีการไหลเทและการหมุนเวียน เราต้องดึงความเชยความเฉิ่มขึ้นมาเป็นพระเอกเมื่อเวลามาถึง การที่เขาไปสนใจศิลปะพื้นบ้านหรือท้องถิ่นไม่ได้เชยเลย ในทางตรงกันข้ามมันเป็นเสน่ห์ที่ต่างประเทศไม่มีและเขาไขว่คว้าหาความเป็น Exotic เพราะเขาไม่มี เราต้องเก็บอันนี้ให้ได้แล้วคิดว่าจะทำอย่างไรต่อไป…”

[PK*NOTE: Local art can be very attractive, especially for the foreigners, in spite of the fact that it’s imperfect.]

 

“…ผมมองว่ามันต้องไปขนานกันทั้งมี Local Link และต้องมี Global Link…”

[PK*NOTE: Think local, think global. We need both.]

 

“…ตอนนี้เราก็มีเครือข่ายที่ใหม่และมหาศาล และจะนำไปสู่ Creative economy ด้วย แต่ในเวลาเดียวกันองค์ความรู้มันก็ไม้จิ้มฟันยันเรือรบ มีมากมาย เราก็ต้องมีความสามารถที่จะเลือกองค์ความรู้นั้นมาบริหารได้ คือมันไม่ใช่แค่ Learn แล้วก็ไปท่องจำ ในขณะเดียวกันมันก็ต้องมีการ unlearn ด้วย unlearn ในสิ่งที่มันไม่ Work แล้ว ถ้าเผื่อว่ามัวไปย่ำอยู่กับสิ่งที่ไม่ Work แล้ว มันก็เป็นการบริหารที่ไร้ประสิทธิภาพ เพราะฉะนั้นจึงต้องมีการปรับเปลี่ยนตลอดเวลา”

[PK*NOTE: Talking about knowledge management. We should learn to unlearn something that doesn’t work too.]

 

“…องค์ความรู้นั้นต้องลงสู่พื้นที่มากขึ้น ไม่ใช่กระจุกตัวอยู่ในเมืองหลวงเสมอไป ตอนนี้เราก็เริ่มทำแล้ว ศูนย์ออกแบบ TCDC ตอนนี้กำลังขยายกิจกรรมที่ลำพูน ลำปาง มหาสารคาม ขอนแก่น…”

[PK*NOTE: Shared knowledge and distribution network]

 

“…เราต้องทำให้มีการเคลื่อนไหวอยู่ตลอดเวลา เพราะฉะนั้นการสร้างคนจึงเป็นเรื่องสำคัญมาก ตอนนี้เราก็กำลังทำ เช่นมีการจัดอบรมนักการบริหารจัดการศิลปะ ซึ่งมันจะต้องมีการทำอย่างต่อเนื่อง…”

[PK*NOTE: We have to keep moving by focusing on people (e.g., training, and so on).]

 

“ต้องมีการผสมสานในความเป็นศิลปิน นักวิชาการ และผู้บริหารด้วย เขาก็ต้องพยายาม ผมคิดว่ามีคนอยู่กลุ่มหนึ่งที่สามารถช่วยเหลือซึ่งกันและกันได้ หมายถึงศักยภาพและความสามารถของแต่ละคนมาหลอมรวมเป็นทีมในการทำงานได้ แต่เขาต้องมีเป้าหมาย ต้องมีพื้นที่ในการสร้างสรรค์ด้วย ไม่ใช่ว่ามา Job หนึ่งแล้วก็จบ แต่เขาต้องมีอนาคตของเขาด้วย”

[PK*NOTE: Working as a team (Artist + Academic + Executive).]

 

“…ให้ผมไปตรงไหนก็ได้ ทำอะไรก็ได้ (หัวเราะ) เพราะว่ามันขึ้นอยู่กับคนที่จะใช้เรามากกว่าว่าเขามีกึ๋นแค่ไหน (หัวเราะ) ผมมองในมุมกลับกัน ไม่ใช่ว่าเราเก่งกาจมาจากไหนนะ แต่คิดว่าคนที่จะใช้เราเขามีกึ๋นในการใช้มากน้อยแค่ไหนต่างหาก”

[PK*NOTE: Working with a smart boss, not a dumb.]

 

 

Dr. Apinun Posayanon

(Ministry of Culture, Thailand: Nov.05, 2009)

*Source: http://www.m-culture.go.th/demo/detail_page.php?sub_id=617

 

PS. You must know the direction of the wind if you want to be a great captain.

Microsoft+Yahoo! & The New Homepage [Part02]

Let’s focus on design & usability in business context

Aug.07, 2009

- Figure 2-

Now, let’s take a look closer. There are 3 main points that I would like to discuss here: 1.) Color, 2.) Customization, and 3.) Visual communication.

(1.) COLOR

The colors used on Yahoo! homepage as shown in “figure2” are mainly purple and dark blue.

Why purple??? Does anyone know that “Yahoo!” is purple? I don’t know that before until I heard about it on a TV program this year. A good guess, I thought that it’s red because the logo on website is red! Anyway, I was wrong. I believe that not many users could get it right too. The weakness of brand sense like this could develop a serious problem in brand identity. If you noticed, they are trying to come over this problem in the new design theme!

Why dark blue??? Microsoft did a better job here. I believe that everyone agrees with me that the existing schema of colors in our brain for “Microsoft” is blue. In other words, apparently the brand sense of Microsoft is blue!

Therefore, by looking only at the colors of this website, we can talk about the business. I have seen the effort to mix these two colors in the mockup of their website since last year. At that time, Microsoft aggressively moved trying very hard to convince the board members of Yahoo! to sell the company. However, the negotiation was still unsuccessful though there was a big support from some investors. Then Microsoft’s negotiating team changed the tactic by focusing on the search engine only. Yahoo! without the search engine is nothing, so I’m not surprised why Yahoo! agreed to be partners with Microsoft instead of selling it. They share the systems.

This seems to be a win-win situation for now, but if we take a deeper analysis, we may realize that the only winner in this situation is Microsoft. Now, Microsoft has a better chance to break Yahoo! taking control over in the future if they want to.  This reminds me a good story in the book mentioned by Schmitt, a professor at Columbia Business School, about Odysseus’s strategy in the Trojan War. In that story, Agamemnon led the greatest army to Troy, fighting for ten years, but he was still unable to get pass the Troy’s walled city. Odysseus, then, suggested the Greeks to build a huge Trojan horse pretending to be a peace offering for Troy, but many of Greek warriors were hidden inside. Troy, falling to the trap, opened the city gate to receive that horse. Then Troy was destroyed from the inside out; Greeks won the war easily in only a night.

Is Microsoft leading by “Odysseus” in the modern world?

(2.) CUSTOMIZATION

Aug.09, 2009

- Figure 3-

In my dictionary, “Customization” is a keyword which simply means “Manage it in your own way.” One of the selling points on the new Yahoo! homepage (see figure 2) is to allow the users to customize the page (e.g., to add Facebook, e-Bay, Twitter, and so on). Is it a secret weapon for Yahoo! to win the battle? That is actually not new because I have seen some other online services, such as BBC News (http://www.bbc.co.uk/) design their websites based on this principle before. It’s almost exactly the same. At this point, as an outsider, one may possibly think that 1.) Yahoo! imitates that idea, or 2.) Yahoo! and BBC News are partners. If those are not the case, then I shall move on to find a real reason behind that mechanism.

In this business context, I will look at the services provided by Yahoo! and its main competitor – Google.

First, looking at Yahoo! alone, they usually contribute the contents on site for users. Thus, they should have done a hard work in market research, partnership and production in order to serve the users. Who are the users here? I don’t know exactly, but the more, the better for them. According to CNN, Yahoo! is now trying to create more opportunities for advertising by focusing on the content and user experience. The new homepage project started in October 2007, and it seemed to take forever to finish. New Chief Executive Carol Bartz has been trying to light a fire under the company’s developers, as a result of recently having a beta testing (CNN –July 21, 2009). Well, I believe that the reason taking too much time is because they got a poor developing process and had to change it later. They might say that they developed the website base on feedbacks from the users, which was good, but that didn’t mean they had done in the best practice.

Anyway, the new Yahoo! website tells me something about their business strategy. Looking at the new interface and interaction design, I can feel the increasing of freedom. To increase the freedom here means users can adjust the products or services for themselves – more flexible and open. This strategy, as I know, is based on a principle in the book called “Democratizing Innovation” written by Eric Von Hippel from MIT. Hippel claimed that innovating by users is a right direction to follow based on some evidences in his research. Yes, he mentioned that the world of production process is changing. We are talking about heterogeneity of user needs in a higher level which only small numbers of users need the same thing. However, I think we still need more evidences to support if this is a right direction in each industry.

Is Yahoo! in that case? What do most of their users need? Yahoo! is very confident saying upfront that the change is on the right track. Therefore, it implies that they think each of their users seems to have a very unique taste or style. I do not see any strong evidence to support this view though; only they have discussed with a very small group of the users. If they are right, then this will help increase the users’ activities and draw more people to the website, making Yahoo! a better partner for advertisers (CNN, 2009).

On the other hand, Google’s service is different from Yahoo!; instead of creating all the contents, Google acts like a hub to deliver the information and need for users. Many good sources from the outside are linked to the Google. Many innovative products are open to form a strong partnership with the developers. Many advertisers and investors are interested in. This seems to be a more open strategy compared to Yahoo! Then to be more competitive, Yahoo! has a better reason here to design the new homepage that is more open. However, once again, this doesn’t guarantee that the outcome will be the best for them. There are many factors both in business and web development to consider.

Moreover, there is a drawback in this direction. It may be better for Yahoo! to control some major areas in the main page and let users customize only in a deeper level if they want to. This requires a good research and a thoughtful strategic planning though. Facebook would be a good example in this area. Doing so will provide a good sense of freedom and flexibility using the web without losing the cohesiveness and brand identity which is now a weak point for Yahoo! You should not focus only on a specific area in production or market, but better thinking together as a whole.

(3.) VISUAL COMMUNICATION

Aug.07, 2009

- Figure 4-

Behind that blue box in figure 2, there is a video clip of Yahoo! engineers talking about the new homepage (see figure4). But sorry, I didn’t really understand the main point that they’re trying to say. Thus, I had to replay and read it while the automatic pop-up screen kept coming on top of it all the time which was very annoying. Well, the reason taking too much time to learn might be because I’m a stupid. Otherwise, the visual communication in that video clip is poor. Google has done a much better job in this area! It must be concise and clear; pictures would also help.

Well, let’s talk about words and pictures a little bit. I guess the process of creating this video clip is rough though it should be a selling point in business!  I believe that the idea of having texts (white on purple) appear on the screen in each topic is an afterthought. Yet, the text messages are clear enough to understand, but what they are trying to speak is considered too technical for most audiences. If you expect the users to read, why don’t you just put the texts on, right? Trying to show the corporate culture and working environment is good, but if you did implement it in a wrong direction, it might cause a huge distraction.

Oh! One more thing, Yahoo! is in a global business, right? Thus, using images and standard symbols would create a great advantage over the text version alone. Many people from all around the world still don’t know English, and some countries are not very open. It’s difficult for them to follow. I suggest the content contributors to mix those visual elements (i.e., real picture, text, and drawing) in a more creative way and easy to understand. I’m talking about design & usability in business context. Google’s would be a good example. Without paying a good attention to small details like this, it’s definitely hard for “Yahoo! + Microsoft” to beat Google. That is my worldview.

Above all, I strongly believe that those small points that I mentioned are big, especially in the future –period.

© PK*[Aug.09, 2009]
pkdatabase.wordpress.com

Notes:

-          Hippel, E. V. (2005). Democratizing Innovation. MIT Press.

-          Schmitt, H. B. (2007). Big Think Strategy: How to Leverage Bold Ideas and Leave Small Thinking Behind. Harvard Business School Press.

-          http://www.cnn.com/2009/TECH/biztech/07/21/cnet.yahoo.new.home.page/index.html (2009)

Let’s focus on design & usability in business context

Microsoft+Yahoo! & The New Homepage [Part 01]

What happens now?

There are a lot of changes going on recently in Yahoo!  At the beginning of this year (2009), Yahoo! announced that it had hired veteran technology executive Carol Bartz as its new CEO. In July 2009, Yahoo! became partners with Microsoft in search engine business with a high expectation to challenge “Google” who is now a top runner. Today, in August 2009, there are some changes on the Yahoo! website.

What I’ve mentioned before?

In January 2009 I stated in my article that Microsoft would probably do not stop negotiating with Yahoo! in spite of failing to acquire it last year; only waiting for the right moment. Yet, I believed that one day Yahoo! might have to sell their business or became partners with Microsoft. Well, the experts know that a negotiation has never been done at the first round, right? Yes, seven months later (July 2009), Yahoo! finally became partners with Microsoft!!!

In December 2008, I critiqued the Yahoo!’s usability testing process for the new look of their website, compared to Google’s and Facebook’s usability testing processes.

“Compared to Facebook.com, the Facebook team is much smarter than Yahoo!, creating the “New Facebook” as an option first, and then recently they turned it to be a default setting with having the “Old Facebook” as an option instead. Meanwhile, they got good and bad feedbacks from the real users, so they could be able to redesign their stuff effectively.”

I also mentioned that letter “M” in the URL of that testing homepage and the choice of colors used would be a tactic in business which is related to Microsoft.

Let’s talk about the new Yahoo! homepage

Today, I visited Yahoo! website again and saw a new improvement based on exactly the same approach as I suggested in the article about nine months ago!!!

Yahoo! Homepage (Aug 07, 2009)

- Figure 1-

In figure1, looking at the dark-blue bar on top of the page, you will see a yellow button saying “Try it now!” The new Yahoo! homepage is now set as an option with a “close” button on the right, see? Now, it’s in a testing process. In the future, they will switch the options if the feedbacks are good and most users are familiar with the new system. They completely changed the usability testing technique from a poor one which got a lot of complains from users to a new one that I mentioned.

…

© PK*[Aug.07, 2009]
pkdatabase.wordpress.com

Thai Economy is on The Right Track despite the Drop of GDP Last Year

With a thoughtful economic plan from the new Thai government and the advice from a Nobel-prize economist, Thai economy will be in a better position by the end of this year (2009), not worst!

WHAT IS WRONG ABOUT THE NEWS?

Since the market turmoil in 2007, the world has faced a lot of problems in the global economic crisis. The rate of economic growth in many countries, such as America, Japan and Thailand has dropped sharply last year. Moody’s rating agency recently stated that Thai GDP contracted by 4.3% in the fourth quarter of 2008. “Moody’s” also mentioned that Thailand is the “worst hit in Asia”, as a result that some Thai people and the investors, who just listen to the news, are in panic.

In fact, that sentence is not a truth compared to some other countries.

That prediction is based on the outsider’s point of view, selected only a sharp drop of exports (in December, 2008) using the raw data from the National Economic and Social Development Board (NESDB), not up-to-date. Beside this, Ekniti Nitithanprapas, the FPO’s expert on macro-economic affairs, said that Moody’s attempted to provide only the unofficial statement to some investors, not a real published one. By sitting on the other side of the world and reporting, I consider that it is really unprofessional.

WHAT IS RIGHT?

It is important to get things right because the reaction of people, companies and investors may affect the demand & supply in the economics. In my opinion, for a wider perspective, we should focus on not only the mathematic calculation of the existing data but also the more updated information related to the new government policies and some other economic indicators. In this recession, the analysts need to consider both of the internal and external factors, and estimate the future based on the dynamic context. In Thailand, the finance Minister Korn Chatikavanij said that Thailand’s economic fundamentals are still “very strong” but remedial measures are still needed to solve the economic problems. Usara Wilaipich, a senior economist at “Standard Chartered Bank,” said early this year that the growth would likely stabilize in the second half as fiscal stimulus takes effect. The growing rate of Thai economy depends on the external factors in the global level, such as the U.S. economy as well. The other countries are now also facing the same problem (i.e., Taiwanese economy is expected to contract by up to 5.3 percent, the Japanese economy by 4.8 percent and Hong Kong economy by 4.01 percent).

Here is more up-to-dated information related to the Thai economy:

1. In February, Thailand’s Parliament approved a 116.7 billion-baht ($3.3 billion) package which is taking effect this month (March, 2009) to stimulate domestic demand and create jobs; including cash handouts to the poor and long-term infrastructure projects [http://biz.yahoo.com/ap/090223/as_thailand_economy.html?.v=1 (Feb.23, 2009)]

2. Gross domestic product (GDP) during the first quarter of this year should be almost the same as the last quarter of 2008, in which it contracted 4.3 per cent but contraction would become lesser in the following quarters and GDP should land in the black by the end of 2009, Mr. Abhisit said. [http://enews.mcot.net/view.php?id=8759 (Feb.24, 2009)]

3. The loans granted by the end of January to the property sector rose to 12.7% from 12.5% in December 2008 [http://enews.mcot.net/view.php?id=8995 (March 11, 2009)]

4. Bank deposits declined to 5.4% as depositors apparently opted to invest elsewhere. [http://enews.mcot.net/view.php?id=8995 (March 11, 2009)]

5. With the effort of new Thai government, tourism is getting better. In the “World’s Best Tourist Country” category, Thailand ranked first once again, making this the eighth consecutive year that Thailand has won the Swedish Grand Travel Award. [http://tatnews.org/latest_update/detail.asp?id=4246 (2009)]

6. On March 13th (2009), the Prime Minister “Abhisit Vejjajiva” will open the seminar with a speech on “Empowering Thai Economy with Creativity.” [http://www.tcdc.or.th/ct/editorial_en.html (March, 2009)]

Etc.

PK*DETAIL ANALYSIS

These facts reflect as both push and pull factors in the future of Thai economy.

As an investor, I have seen the fact that many domestic investors recently started pulling their money out of the pocket again, as the bank deposits declined to 5.4%. The gold market is recently growing up because of many global factors and that is where I got the benefit from too. The loans granted by the end of January to the property sector rose to 12.7% from 12.5%. The flow in financial system is in a better shape as in some other countries, and will probably continue even still on the economic downturn in the first two quarters this year.

The Thai government is spending money to stimulate the economics first because this tactic will help generate the flow in Thai consumer spending very quickly. I think the goal of this is not to create the jobs, but to set a ground to generate the flow first. In other words, we need people to go out and spend their money, not keeping. The main target, receiving the check almost $60 (2,000 bahts) here, is the group of low-income workers (salary less than about $440 or 15,000 bahts). Note that I believe the policy makers decide not to use “money coupon,” as used in Korea, because: 1.) Some Thai people will definitely make a fake coupon which is hard to control, and 2.) The government has to spend more money to support this program. However, many businesses in Thailand, especially the big department stores and restaurants, have planned to take the opportunity on this action by creating a new promotion accordingly (e.g., “$60 check” + more if participate in their shops). This will generate a great flow in Thai economy.

After that, the Thai government will follow the flow moving forward to create more jobs as in the next plan. This second step has to deal with the long-term infrastructure projects, such as using the financial program, supporting the use of creativity in business development, and so on. I believe like that because the Prime Minister will have a speech on “Empowering Thai Economy with Creativity” in the conference this March [Updated: got cancel later, going to UK instead]. This would be a long-term plan. It is true that many developing countries like Thailand or China borrow and mix the theories from the international case studies to create a successful policy based on their own current circumstances. As in Japan and Korea, creativity is one of the areas used to boost the economy in around 1950-1960’s.

PK*VISION: THE GROWTH OF THAI CREATIVE INDUSTRY

Now, as an insider who looks from the outside, I would like to connect the big picture in Thai economy to the opportunity as an example of how to develop the business in Thai creative industry. In the past, Japan successfully used R&D to boost their economy, but Thailand is not really to that point yet; we need to focus on the knowledge and attitude first. Though now the percent of Thai creative industry is relatively small in GDP, I believe that the new Thai government got a good plan in this area focusing on the attitude and knowledge management first. Some previous governments also got a good direction, but only in some particular areas and in a wrong action (e.g., OTOP). For example, the previous government borrowed the idea of “OTOP” from Japan, but they focused heavily only on one side, the supply –not demand! As a result the producers didn’t have market to support.

In 2009, the Thai tourism still has a good chance to grow further, ranking number one as the “World’s Best Tourist Country,” despite the impact of political problem last December. Based on many factors and resources, I’m optimistic enough to say that the world economics will be recovered some by the end of this year (2009). For example, “Businessweek” magazine stated in February that the rate of productivity in the U.S. is increasing though the output might go down. This is because of the fast reaction in business. Therefore, the foreigners or tourists will have more cash to spend and help generate the flow for Thailand in this segment. Thailand also has great food, beautiful beach, and interesting Art, which are the pull factors.

In the past, people in Thailand might have no idea how to implement the Thai culture creating a creative product with a good usability, but now things is changing rapidly in progress like many other countries in Asia. With a great support from the Thai Creative& Design Center (TCDC) and the government, people just like me will work tirelessly to share all of the knowledge and experience learning from outside back to the country both directly and indirectly. Now, we have, perhaps too many organizations or sub-organizations working on their own, but we still don’t really work systematically as a whole. Yet, Thai creative industry needs to be improved technically in some areas: 1.) the standard & quality control, 2.) the intellectual property, 3.) the design management, 4.) the process & research (R&D) etc. These things should be taken into consideration together with some other factors in the economics too. The development should be dynamic. Thai creative products are really good in “Crafts” if we look at the number of net exports. That means Thailand has already had the high-skill labors in that area, and I think if I and some other experts can form the design & business community to help SMEs develop the production process in practice, supporting the big organization like TCDC, Thailand will have more brands and better products that meet the global standard to export. Thailand’s GDP relies on exports by up to 70% for its growth according to the NESDB. Thus, if the tourism is going up, the cultural products with a unique “design” & “standard” will have more opportunities to extend the market too. People bring the impression back home and that is a new market segment. In the future, the new growth will drive from the inside out focusing more on the internal consumption. That is one of the good opportunities to grow or boost the GDP and Thai economy in a long run.

Wish all the best,

PK* [March 12, 2009]

http://pkdatabase.wordpress.com/

p.s. I must write this. People are too sensitive to the news, not the fact.

*References:

http://enews.mcot.net/view.php?id=8781 (2009)
http://enews.mcot.net/view.php?id=8759 (2009)
http://www.property-report.com/property-news-top-stories.php?id=2331&date=250209 (2009)
http://www.nesdb.go.th/Default.aspx?tabid=95 (2009)
http://www.nesdb.go.th/Portals/0/eco_datas/account/qgdp/data4_08/detail_Eng.pdf (2009)
http://biz.yahoo.com/ap/090223/as_thailand_economy.html?.v=1 (2009)
http://tatnews.org/latest_update/detail.asp?id=4246 (2009)
http://www.tcdc.or.th/ct/editorial_en.html (2009)
http://www.tcdc.or.th/ct/conference/Arkhom/index_en.html (2008)
El-Erian, “When Markets Collide: Investment Strategies for The Age of Global Economic Change” (2008)
Howkins, “The Creative Economy: How People Make Money From Ideas” (2001)
“Businessweek” (Issue: Feb.23, 2009)
A paper note: Discussing with the experts (March 11, 2009)

The Survivors: Brand Packaging and Positioning

The Survivors: Brand Packaging and Positioning
© PK* (http://pkdatabase.wordpress.com/) [March09, 2009]

IN THE ECONOMIC CRISIS

Economic crisis has a great impact on the financial system completely changing the structure of the industry though one day it may be fully recovered. Companies that have a very high fixed cost would have a hard time to survive in this situation. Every single element in the business has to be taken into serious consideration in order to reduce the waste and keep the profit high. Investors have to deal with the unpredictable market. The policy makers face a big problem to develop a strategic planning based on the oncoming data which rapidly changes. Manufacturers come up with new ways to reduce the cost of production both in the process and on the product. As I have seen, there are two directions here: 1.) eliminate the unnecessary things, and 2.) develop a research (R&D) seeking for a completely new way to improve things.

THE ALTERNATIVES

It’s good if you have enough time, resource and energy to do R&D on your own or form a partnership; however, looking across the fields (i.e., product strategy, portfolio management and financial plan), we may soon realize that the second choice is quite costly, so several companies turn to the first alternative: to eliminate the unnecessary things. We can eliminate the waste or improve something that we have already had. This must be pursued carefully because if you get it wrong, you will reduce the value of your products and your brand image, not the waste!

Now, to set a new strategic planning, especially for the consumer products, the product managers and the marketing team may develop a new product roadmap (i.e., design, functionality and technology) together by focusing on both the external market (i.e., market segments, competitors, and so on) and the internal support (i.e., budget, skill, and so on). At this point, the risk is on the marketing side; in the economic downturn, if the production cost is getting higher, many companies may try to maintain a low price in the competitive market by simply changing the structure of product packaging. One of the risks here is to fool their customers by reducing the value of product.

For example, a tricky company may push the bottom of a package up in order to reduce the capacity of product inside, let’s say from 21oz. to 18oz. Well, if you didn’t aim to reduce the value of that product, you should print something on the bottle like this: “Better look, same quality!” I don’t think the company dares to put that on if they reduce the quality or quantity. Another bad example is a box of toothpaste which I bought last year; “Coalgate” is my favorite brand, but once they set “a trap” to me by having a promotion selling 2 large boxes of toothpaste together in a very low price. Well, that sounds good, right? When I was home, I opened the packages I found that they put only a very small size of toothpaste inside one of “the large boxes” (with a super tiny number of weights on). I thought I could get two, but it was one and a half! I felt very disappointed to the brand. At first I trusted this brand, so I didn’t pay attention to the details, but they made me feel like a stupid at the end.

Do you think that customers in this “Recommendation Age” don’t know about this trick? [Wrong!] Making customers “feel tricked” is definitely a nightmare, a risk.

The better alternatives are:

1.) Keeping the value, the quality of product, but developing a “creative solution” such as the sustainable packaging (choices of material and process) to reduce the cost of energy and resource in production.

2.) Reinforcing the brand value by focusing on the product differentiation or the unique advantage against the other brands, and playing with the brand character connected to customers in the emotional level.

THE CREATIVE SOLUTIONS

By developing a creative solution, I mean to improve and manage the available resources (i.e., time, money, material and process) in a smart way. You don’t need to invest a lot of money developing a whole new production process or material used, but to seek for a better alternative first.

For example, I may redesign the product packaging using 70% more recycled materials from the previous version (e.g., 100% plastic packaging). The recycled materials here may come from any source of recycling which is cheaper. I may go to a box manufacturer and ask if they can produce a package like this for me – cheaper than hiring a real expert to make. [Seeking for a supplier like this, I borrow the technique that IKEA, the largest furniture company in the world, uses to bring the costs of their products down.] Also, instead of feeling bad using recycled materials, I then turn it to be a value added by using a power of creative design, perhaps creating a unique shape and printing the graphics with vegetable-based inks to deliver the brand message, setting the brand positioning back on the track and saying that we concern about the environment too. Then my product may get a certificate like USDA [http://www.ams.usda.gov], and that is also a value which is really good for the whole society, reducing the environmental impact. Moreover, I may develop a lower-cost structure, changing the shape of package and making a lightweight product using the recycled materials, as a result that I can increase the number of products per truck and conserve the fuel in transportation. This is related to the topics in logistics too. That’s it!

Another good example in the real world is the “HP Pavilion dv6929,” selling a notebook computer in a new innovative packaging. They put the product and all its accessories in a computer bag, not a box. Well, actually there is nothing new in terms of the material and production process, but HP, a winner of design challenge at Wall-Mart, comes with a smart move choosing the environmental friendly materials creating a new way to deliver the product. This helps HP reduce the product packaging by 97%, eliminating the waste of material and energy. [http://walmartstores.com/FactsNews/NewsRoom/8565.aspx]

For some reasons, you may decide not to change the product or package, but the process itself. When we are talking about the manufacturing process, there are three basic factors to keep in mind: material, energy, and time. To keep the time and save money, you may have to take some risks changing the raw materials and/or the operational systems in a smart way. For example, to produce brick, the manufacturers can make a few fundamental changes in the way that kiln is operated by carefully reducing the “preheating temperatures” from the standard level. This new technique, based on the economy of scale, helps the company save a lot of energy, the fuel. This creative solution is proved by the technical expert, and requires only a little effort to make the experiment.

REINFORCING THE BRAND VALUE/ BRAND POSITIONING

Those are a few samples how to develop a creative solution based on the existing production process. Now, let’s talk about the other alternative which is focusing more on the brand value and brand positioning. When we are talking about the positioning, it simply means you are not alone trying to survive in the economic crisis. So, I believe that using a dynamic competitive strategy is the best response in this situation. It’s true that the consumer behavior in the economic downturn may change; e.g., people become more price-sensitive. The buyers are concerned more about “product value” and the decision they made. Does size matter? For the consumer products, the “sizes” of packages and the “price points” become more important. It’s not about the size alone; we have to think about the brand as a whole. You may find a new way bundling the products (multiple purchases) to offer the right amount of value that is reasonable to the customers in this economic downturn.

By selling your products in the retail stores, you cannot avoid the direct comparison with the other brands on the shelf. Thus, you have to react or even repositioning your brand wisely. Mainly, there are two major competitors in the market: 1.) The Premium brands, and 2.) The lower-priced brands. In the economic crisis, I didn’t see a lot of competitions in the middle between these two poles. If you set the high positioning, selling a more expensive product, you have to emphasize on the value, the unique advantages in hand, and deliver that message effectively! Yet, it’s still difficult to sell an expensive product while surrounding with the cheaper ones.

Then as a lower-priced brand, one may respond in this recession directly by comparing the prices and saying, “We have the same quality product just like yours.” To win is to make the “rich guys” look normal as much as possible, in my opinion. The “poor brands” don’t really need the greatest design (e.g., award-winning packing design), but a smart one –knowing when and how to deliver the brand messages. You don’t need to overpower the brand positioning.

On the other hand, a premium brand must focus on the uniqueness, especially in the product itself, and that is where the best design takes place. The brand should be connected to the customers’ mind through the experience, personality and emotion. For example, you may redesign the package by creating a unique shape in order to make your product outstanding, and deliver the brand massages on the right spot, such as nearby the brand logo or main visual character (as a glance, people tend to see it first). That message might be a value added – the benefit for your customers. It implies that your product may have something better or more interesting than the others surrounding. The unique shape, highlighting the product differentiations, also helps protect your brand identity, less likely to be imitated. More importantly, you should remember that this is only a part, the front end; there are so many other areas and factors in the market that you should take into consideration in order to be successful.

REAL-WORD SCENARIO: THE SMART PACKAGING

People want things that satisfy their needs with a reasonable price. When the living cost is higher, more expensive, they are seeking for the best choice that helps them save more money. Therefore, with a good product and brand management, you as a creative producer will have a better chance to survive in the price war, especially in the economic crisis. You can mix both alternatives that I mentioned together (i.e., to develop a creative solution and to reinforce the brand value). I will not repeat the strategies again but give you one more real world example here…

Today, I went to a retail shop looking for a pack of snack for my breakfast. There are a lot of BOXES in that section, but only one outstanding BAG of snack on the shelf. It got my attention.

This is how it looks:

Well, it’s not about something totally new, but it’s quite unique in the category. I used to buy this product (“Wheat Thins”) before, but at that time it’s still in the box. This company produces many types of cracker similar to this one. Today, obviously, I believe that they are just testing a new packaging (i.e. the bag) because I noticed that it’s the only favor in this product line which they put in the bag. It’s new! They are changing slowly but effectively to replace the old packaging, very smart.

Anyway, whether they are going to extend this concept further or not, by looking at their new package today, we could have learned many things from them:

1.) “Fresh, New Look!” is the brand messaging to emphasize the value or quality of the product and tell customers that it’s new. When you make some new changes, you have to make sure that it’s better, not tricky.

2.) “Lift here” is a tab or tape which you can peel off and apply to close the open end of the bag if you cannot eat it all at once. This is convenient and better than keeping food in the opened box which air may come in. It’s not a new technique but it’s a new value added to this product. It’s a plus.

3.) This brand works together with a partner (i.e., Terracycle) collecting the empty bags and recycling them, transforming “junk” to a new product like a backpack or pencil case. This is also a new value that they add to the product and its new packaging design, and this will have a strong social impact which is good for the brand and earth. You “feel” good buying this product. Moreover, this follows the new trend in market which “Target” and some other superstores recently recycle their shopping bags using the same method.

4.) “60% less fat than…potato chips” This is also a brand messaging which specifically attacks the main competitors. They may try to steal the market share from the potato chips. Yes, eating this cracker is healthier, and you “feel” good about it. I can see the competitive environment on a bag here.

5.) Looking at the weights (8.1 oz) of the bag compared to the one on the old box, I found that they are almost exactly the same. This means that they are honest, not tricky, and then they get the respect from me (a valued customer). This is good for the brand royalty. Moreover, I noticed that the new bag is more flexible than the old box – I touched it. Then, by calculating the way to pack multiple bags in the container, I assume that they can reduce the number of containers used in transportation too. This eliminates the waste of material, time, money and energy.

Hey, just look at the bag! Now, you see how to combine the power of those alternatives and strategies together in a very effective way, thinking inside as well as outside the box. Isn’t that fun if you can see the relationship among things and understand them very well? More importantly, I would like to encourage every company in the world to think big, thinking about the whole society too. Don’t think only about your own benefits. That is a real value of life.

1

THE CREATIVE TEAM

In addition, you may notice that I focus mostly on the “CREATIVITY” managing the resource and the brand identity from start to finish. A creative person seems to be more open than the others. Some of them have a strong motivation and ability to think outside-the-box; they have a logical sight with a creative mind. You, as a CEO, need this kind of people working in a collaborative environment within your organization. Bring head of the HR department to the desk and ask her to form a creative culture for your company. Note that I didn’t focus on technology or any process, but people first. You have to fight as a team in a smart & creative way. Otherwise, especially with a low budget and high fixed cost, you will definitely have a very hard time to survive in the economic crisis. Don’t give up in whatever you do, and I will not give up too!

I wish you the best.

PK* [March09, 2009]

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References:

- “Brand Packaging: Elevating Packaging in the Marketing Mix” (Issue: Jan., 2009)
- “Brand Packaging: Elevating Packaging in the Marketing Mix” (Issue: Feb., 2009)
- “Ceramic Industry: The Exclusive Global Voice of Ceramic & Glass Business and Manufacturing” (Issue: Feb., 2009)
- El-Erian, “When Markets Collide: Investment Strategies for the Age of Global Economic Change” (2008)
- Haines, “The Product Manager’s Desk Reference” (2009)