Monday, October 28, 2019

Decision Making and Investment Decisions Essay Example for Free

Decision Making and Investment Decisions Essay Chuck Jones aimed to have a new design decision process supported by data and surveys instead of a return or payoff on the investment approach. At first when he presented his idea, authorities requested poof and Mr. Jones was unable to show them proof. Then M. Jones started his process. 1.As a first step, he surveyed 15 design-centric companies, including BMW, Nike, and Nokia. To his surprise, few had a system for forecasting return on design 2. Mr. Jones needed to provide a new plan to focus on Customers preferences. 3.Good feedback from the public would equal possible future return on the investment that was requested by the research team. 4.Do not focus on Bottom-line returns 5.Puts Design prototypes in front of customer focus groups 6.Get detailed measurements of their preferences about Aesthetics, Craftsmanship, technical performance, ergonomics and usability 7.Chart the results against competing products and the company’s own product 8.This approach gives the Decision makers a base-line of objective evidence from which to make investment decisions Evaluation: The Duet washing machine, launched five years ago, was the first big win for the common platform approach. By redesigning an existing product, using the same underlying technology but with modifications to the appearance and user interface, the design team created a product that could be sold at three times the price of its predecessor and competitor products. Design investment decisions are now based on facts not opinion. The new decision making approach has transformed the company’s culture. It had led to bolder designs because the designers can now make a strong case for making those investments. By following this approach the company can do innovation in their products. The shift has enabled Whirlpools designers to make the business case for investments and give financial folks greater confidence to ante upresulting in bolder designs. What criteria does Whirlpool’s design team use in design decisions? What do you think each of these criteria involves? Whirlpool’s design team used their customer’s preferences as the basis of the company’s criteria. After significant considerable investigation of the, what Chuck discovered was that many of the organizations, including those the ones that operate on a global scale, many faced the same or similar situation as he did; they were all in need of a system that could forecast profitability based on design. They used a â€Å"metric-based approach† design, to capture â€Å"objective evidence† that would support and provide insight into future investment decisions for the company. Chuck and his design team â€Å"created a standardized company-wide process that puts s design prototypes in front of customer focus groups and then get detailed measurements of their preferences about aesthetics, craftsmanship, technical performance, ergonomics, and usability. This approach I think provided Whirlpool with a â€Å"baseline of objective evidence from which to make investment decisions† because with this innovative approach, the company could now make â€Å"design investment decisions† that are based on fact and not opinion

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