PPP / Life's a Pitch

BA (Hons) Graphic Design

OUGD502 PPP2

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, pharmaceuScals, 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 characterisScs.

•  Standard economic modules IdenSfy 4 industrial Sectors


Primary Sector The primary sector of the economy extracts or harvests products from the earth.

AcSviSes associated with the primary sector include agriculture (both subsistence and commercial), mining, forestry, farming, grazing, hunSng and gathering, fishing, and quarrying.


Secondary Sector The secondary sector of the economy manufactures finished goods.

AcSviSes associated with the secondary sector include metal working and smelSng, automobile producSon, texSle producSon, chemical and engineering industries, aerospace manufacturing, energy uSliSes, engineering, breweries and bo\lers, construcSon, and shipbuilding.


TerSary Sector The terSary sector of the economy is the service industry.

AcSviSes associated with this sector include retail and wholesale sales, transportaSon and distribuSon, 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 acSviSes.

AcSviSes associated with this sector include government, culture, libraries, scienSfic research, educaSon, and informaSon technology.

Why are industry sectors important?

•  Dividing an economy into different sectors with defined similariSes 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 parScular 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 organisaSons that primarily generate revenue through providing o_en intangible products or services.

•  Service industry companies are involved in retail, transport, distribuSon, food services, as well as other service dominated business. Also called service sector or terSary 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 composiSon of the public sector varies by country, but in most countries public sector services include the police, military, public roads, public transit, primary/secondary educaSon and health care.

PUBLIC SECTOR

•  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 lighSng, emergency services….)

•  These services are o_en of benefit to the whole of society rather than just the individual who uses them (such as public educaSon, local government, NHS….)

•  They are services that encourage and support the development of equal opportuniSes

PUBLIC SECTOR Government Departments

Department of Health Department of JusSce Home Office Foreign Office Department of Transport Department of Energy Department for Work and Pensions Department of Food and Agriculture Ministry of Defence EducaSon Department Department for Local Government Department for Business and InnovaSon Department for Culture Media and Sport Department for InternaSonal 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.

PRIVATE SECTOR •  The part of naSonal economy is driven by private enterprise and investment. It includes the personal sector (households) and the corporate sector (companies), and is responsible for allocaSng, distribuSng 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/funcSon is to generate individual or company profits.

THIRD SECTOR The part of the economy that includes voluntary or not-‐for-‐profit sectors or organisaSons

The Third Sector includes voluntary and community organisaSons, Professional associaSons, self-‐help groups and community groups. It also encompasses social enterprises, mutuals and co-‐operaSves.

Third Sector OrganisaSons -‐ 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 someSmes seen as an indicator of a healthy economy in local and naSonal financial measurements.[4] With a growing number of non-‐profit organizaSons focused on social services, the environment, educaSon and other needs throughout society, the non-‐profit sector is increasingly central to the health and well being of society.

Service industries

CreaSve industries EducaSon, health &

social work Financial and business

services Hotels and restaurants Other social and

personal services

Public administraSon and defence

Real estate and renSng Tourism Transport, storage &

communicaSon Wholesale and retail trade

THE CREATIVE INDUSTRIES The creaSve industries refers to a range of economic acSviSes which are concerned with the generaSon or exploitaSon of knowledge and informaSon. They may variously also be referred to as the cultural industries (especially in Europe) or the creaSve economy. This is a broad concept of domain in which acSviSes related to creaSve work creaSon or producSon are carried out. It could be a synonymous term for entertainment industry. In general, creaSve industries are a set of service enterprises that engage in economic acSviSes originaSng in individual skill, creaSvity, and talent, and which furthermore have the potenSal for wealth and job creaSon

THE CREATIVE INDUSTRIES The sub-‐domains under creaSve industry include:

•  AdverSsing •  Architecture •  Arts and AnSque markets •  Cra_s •  Designer Fashion •  Film Video and

photography •  Graphic Design •  So_ware, computer

games and electronic publishing

•  The visual and performing arts

•  Publishing •  Television •  Radio •  Music industry, •  Film industry, •  AnimaSon industry, •  Game industry, •  Post-‐producSon •  Fashion & TexSles

“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 generaSng £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 communicaSons, digital and mulSmedia design

Working in the CreaSve Industries.

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

Disciplines in the CreaSve Industries.

•  CommunicaSon Design •  Product and Industrial design •  Interior and ExhibiSon Design •  Fashion and TexSle Design •  Digital and MulSmedia Design •  Service Design


CommunicaSon Design Graphic Design & IllustraSon

Retail & PromoSon Publishing & Editorial Product & Packaging Branding & IdenSty

InformaSon & Wayfinding Type & Typographic Design

Print & ProducSon Digital & MulSmedia design

Digital & MulSmedia Design Web design & development Interface Design Design for Mobile Technology Games Design MoSon Graphics Digital Film & AnimaSon Special effects


•  50% of designers working in CommunicaSon Design also work in digital and mulSmedia design.

•  These 2 areas are the most integrated disciplines within the creaSve industries

•  They service all sectors of local, regional, naSonal and internaSonal economic sectors

(including public, private and third sector organisaSons).

Who is looking a_er our interests? •  CBI – ConfederaSon of BriSsh Industry •  NESTA – the NaSonal Endowment for Science, Technology and the Arts •  THE DESIGN COUNCIL •  CSD – Chartered Society of Designers •  D&AD – Design & Art DirecSon Network •  AOI – AssociaSon of Illustrators •  TIGA -‐ TIGA's vision is to make the UK the best place in the world to do games

business. •  BIPP – BriSsh InsStute of Professional Photographers •  RIBA – Royal InsStute of BriSsh Architects •  BFMA – BriSsh Furniture Manufacturers AssociaSon •  IPA – InsStute of Professional AdverSsers •  RPS – Royal Photographic Society •  BIID – BriSsh InsStute of Interior Design •  RSBA – Royal Society of BriSsh ArSsts

How the money flows through government

Special interest groups

STUDY TASK •  IdenSfy 5 examples professional pracSce that you have documented on your blog.

•  Analyse the work in relaSon which sectors the work has been produced for.

•  List the services that the work relates to. •  Evaluate the success to which the work fullfills its role from a the point of view of sector and services.

Next Time…….

OUGD502 PPP2

WHO ARE ‘THEY’? Markets, Audience and Analysis

PPP / Life's a Pitch

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