4.1 HYPOTHESIS Existing research has found that design has a positive impact on companies’ financial performance, but the process by which this happens has not been fully identified (e.g. Hertenstein et al., 2005). The hypothesis for the study (Figure 18) was derived from this. The assumption was that by defining the benefits of design, the effects of design on cash flows can be examined. The researchers assumed that design activities related to four objects (product, service, space, brand) produce certain benefits on the operative, tactical and strategic levels of the company in question. The benefits can be linked to the company’s cash flow and intangible capital. By defining the benefits aimed for and the design activities that can be used, we can define what is to be measured. The activities are chosen based on the object of design and the other conditions of the project. The objects of design will determine the nature of the project in the tool, while the benefits of design will function as the targets set for the design project. In terms of the applicability of the tool it is important that the main objectives of the project are known already at the start, so that their fulfilment can be monitored during and after the project. Metrics can be used for tracking the meeting of targets and the project’s impact on cash flows.
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DESIGN ROI TOOL