Some of the products, such as the “Star Wars” designer, went well to the market and helped the company survive, others were a big failure, for example “Galidor”.Despite the fact that LEGO turned to innovative thinking, new products do not solve the problems of the company, because they love consumers because of the famous films and cartoons, and not because of the designer himself LEGO.Thematic products had a short-term success: when the interest in the film was lost, the toys were no longer bought.
After LEGO invested in innovation, the company was out of business.In addition, new products have reduced the proportion of the original parts of the LEGO design, which also had fans.Thus, creativity and innovation led to the company’s second fall in 2003.
After the popularity of Star Wars and Harry Potter, the two main themes of LEGO’s new products, sales plummeted.Of course, the main problem of LEGO was not innovation, but in their isolation from the company’s business goals. From this follows the conclusion: when innovations get out of control and cease to correspond to the company’s overall strategy, there is a split between business and creativity, which leads to inevitable losses.A new approach to creativity and businessThey have returned to their traditional topics, such as racing cars, police stations and schools. These toys allowed children to use the same parts again and again.Buying a new set of LEGO, you can simply add it to the old one, and the details will work. This is a key moment in LEGO marketing and what consumers really like.
So, LEGO overcame the crisis, returning to the traditional details of the designer. But before implementing this decision, innovations were introduced into the production process itself.The company LEGO has come to a creative approach not only in products, but also in the production process itself.Design for businessLEGO is one of the few companies that clearly understand the importance of creativity in an organization. The company introduced a new model of design development, known as “design for business.”This model is designed to link innovations with the company’s business plan, creativity and design – with the organization’s strategy and its corporate goals.
This approach firmly links the different teams, which also allows to improve the process of innovation.The set of tools and methods used in “design for business” can be divided into innovation-related and design-related. Design is the link between innovation and creativity.So, one problem of LEGO was solved due to a new, more effective connection of design with innovations. But there was still another problem for the company – the gap between the marketing strategy and the creative team. This gap caused the next fall of LEGO in 1990.
General vision of LEGO”Design for Business” was part of a seven-year strategy called “General Vision”, launched in 2004. The new vision was to stop positioning the brand as the production of creative toys, and to come up with something new. The marketing department was asked to create a broader vision of innovation and creativity in the product development process.This vision served as a guarantee that both sides – business and creativity – would pursue one goal and fully understand the company’s business strategy. Through the combination of business and creativity, employees learned to achieve strategic goals, using the resources of another team.While LEGO struggled with this problem, many companies did not take design and creative ideas into account in their business strategy. Perhaps this problem was so urgent for LEGO, because the company is focused on originality and creativity.
The strategy of a common vision linked business and creativity. The creatives of the company were released from their sealed room and put in the course of business about the business goals that need to be achieved.Result: LEGO continues to exist and flourish.The general vision strategy is designed for 7 years, but already now it has positively affected sales and profits. In 2006, LEGO was named the world’s sixth largest toy manufacturer with a profit of £ 717 million.
In 2006, the company earned £ 123.5 million more compared to 2005, increasing profit by 6.5%.ConclusionFrom the history of LEGO, you can draw a conclusion for any company related to creativity, design and the constant need for innovation.It is impossible to cut off designers and creative workers from business, locking them up for brainstorming and not giving an idea of the company’s strategy.A clear understanding of where the company is heading and what goals it pursues will give the creative departments of the company the right direction for the work, and the company itself will develop smoothly and increase profits.