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
What is an industry sector? 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.
What is an industry sector? 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.
What is an industry sector? 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.
What is an industry sector? 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
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
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
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.
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. 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
Disciplines in the CreaSve Industries. 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
Disciplines in the CreaSve Industries. • 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