Design that delivers.

The deeper we move into "the value decade," the clearer it is that design not only differentiates, it offers value. More and more CEOs are discovering that good design is good business - a means for achieving their strategic goals.

Don Rorke, president and chief executive of Steuben, doesn't need to be convinced about the bottom-line benefits of good design. Four years ago, Rorke began a design overhaul at the glassware company, changing its graphics, store environments, and product line. "It's an important part of being relevant to contemporary life," he says. "Products are a big part of that."

The result: The last two years have been the most profitable in Steuben's 93-year history, bringing in more customers - and a broader cross section of them. Rorke, who previously had spent 17 years at furniture-design leader Knoll, joins other leaders at Chrysler and Ford who credit their business turnaround to making design a key priority, as well as executives at companies such as Swatch, Nike, Braun, and Krups whose very reputations have been forged by distinctive corporate-design philosophies. And for good reason: In the increasingly competitive battle for share in a commodity marketplace, product aesthetics and ergonomics are often the deciding factors for consumers who are more and more sophisticated and demanding in their pursuit of style and utility.

The following are some of the best product innovations released during the past 18 months. To assemble this collection, we consulted with some two dozen industrial designers, including Matt Herron at frogdesign, Brooks Rorke at Black & Decker, Curtis Bailey at Sunberg-Ferrar, and Haven Tyler at IDEO; contacted a host of design critics; conducted an extensive on-line search; reviewed this year's winners of the Industrial Designers Society of America annual awards; and checked in with the companies that released the products to determine what role they believe design played in the achievement of their corporate goals. Design-quality judgments, admittedly, can be subjective. That's why we applied the business-mission standard as well. Were these companies, like Maytag, using design to shake up a long-standing image, or, like Motorola, trying to hold on to a franchise they felt they'd invented. Were they, like Samsung, trying to distinguish themselves in a crowded category, or, like the upstart Freewing, trying to establish a presence with a brand-new product. Good design, after all, is clearly at its best when it's also good business. And, as our examples of less-successful design show, bad design sometimes sinks right to the bottom line.

How strong is the business-design connection? Consider Iomega Corp. of Roy, UT. By the fourth quarter of 1993, the 13-year-old company, which had done well with its signature $500 Bernoulli removable computer file storage devices, was reporting a loss of nearly $18 million. Cheaper, faster storage units - which could store and transfer files between computers at work or at home - from competitors such as SyQuest Corp. had changed the marketplace. Iomega had been unsuccessful in its attempts to develop its own cheaper, better designs. Then, in early 1994, new Chief Executive Kim Edwards arrived, making product development the company's top priority. Believing that their efforts now had support from the top, once-demoralized Iomega engineers plunged in. The result: Iomega's new Zip Drive, which took the computer industry by storm last year, with retailers selling out in just hours and the company scrambling to catch up to a mounting backlog of orders. Iomega's stock, which had languished at $2 just two months before Zip Drive's March 1995 launch, shot up to $30 a share by January. Since then, the stock has split twice, but in real terms, the value has risen from $2 to $150 a share.

More proof: Over the past five years, Fitch, the international design and consulting firm that helped create Zip Drive's development, design, brand positioning, and packaging, has offered employees participation in a "mutual fund" comprising the stocks of the company's publicly traded clients over the past five years. On average, the fund, with a portfolio that has included between 40 and 87 stocks, has risen 40.8 percent annually, outperforming the S&P 500. "Smart senior management knows product design is a powerful tool and one of the fastest ways to get your company's message to consumers," says Fitch CEO Martin Beck. "While some people might consider design as an expense, we say it's an investment - with a monstrous effect on GDP."

ZIP DRIVE Iomega/CEO: Kim Edwards

Iomega Chief Executive Kim Edwards, on the job for only 12 months, devastated his product-development staff when he killed the design of the company's radical Zip portable computer file storage device just three months before it was to ship in March 1995. The problem? Focus groups reported the Zip Drive's loading method, similar to a portable CD player, was not what consumers said they wanted: a front-loading device that acted like a floppy disc.

The panicked engineers went back to the drawing board, quickly coming up with a design that not only met the launch deadline, but transformed Iomega. The $199 Zip Drive became one of the hottest commodities in the PC market, changing Iomega from an inwardly focused niche supplier to a consumer-focused, marketing-driven firm. At launch, most users looking to store or transport files used SyQuest's more expensive, larger format, less portable, slower-to-download device. Response to the Zip Drive was so overwhelming, consumers had to wait up to two months for delivery.

BMW Z3 BMW of North America/Chairman/CEO: Helmut Panke 

It seems James Bond isn't the only one eager to drop his Aston Martin for BMW's sexy new roadster. Since the car was introduced in March, at a particularly affordable base price of $28,750, dealers across the country haven't been able to keep the cars in stock Production at the company's new South Carolina plant already has been boosted just to keep up with demand.

The sleek, low-to-the ground convertible is a direct design descendant of the company's legendary BMW 328 Mille Miglia sports car, which set racing records in 30s. Inside, the control panel is an updated interpretation of the classic "dual cowl" reminiscent of the MG convertibles of the '30s, '40s, and '50s. Outside, the car is available in such hot contemporary colors as violet red and turquoise green.

While BMW, like other high-end automakers, needed a new convertible sports-car entry to take advantage of a resurgence in the sports-car market, it has used the Z3 to remind buyers of BMW's own glorious past.

A keen interest in design is traditional for the company's top German management; board members, in fact, have been known to make changes on clay prototypes. But the Z3's designer turns out to be someone more familiar with American highways than the autobahn. He's an American, Chris Bangle from Wisconsin, who before becoming the top designer at the company's Munich headquarters, was the head of design at Fiat.

INTELLISENSE DISHWASHER Maytag/CEO: Leonard Hadley

Hot Water. Soap. Dirty dishes. How complicated can it be to operate a dishwasher? Thanks to advances in technology, many manufacturers have built in so many new options and features, the simple act of doing the breakfast dishes seems to require an engineering degree. Maytag has sought to shake its sleepy image with its new IntelliSense model, which offers all the industry's bells and whistles, but with a huge difference: The machine figures it out for you. To determine the optimal wash cycle, the IntelliSense model senses the amount of food soil, the presence of detergent and rinse aid, wash-arm rotation, and water temperature. The machine even tracks the amount of time between loads, so it can adjust for dried-on debris, and takes into account the number of times you open the door.

"As a company we've been around for 103 years, and we're known for quality and steadiness. We've run the same advertising - the sleepy Maytag repairman with nothing to do - for 29 years. But we don't want people to associate us just with that," says Maytag manager of marketing and media relations Linda Eggerss. "We want them to know we're also on the leading edge of innovation. The IntelliSense is the first step in that direction. As our CEO says, 'We have to go out there and earn the right to be the 'dependability' people every day.'"

CANON ES5000 CAMCORDER Canon USA/CEO: H. Murase

Seeking to reinforce its reputation for innovation, Canon has made remarkable technological strides with its ES5000 camcorder, which uses eye movement to control functions such as focusing, previously accomplished by pushing buttons and sliding switches. The technological underpinnings for this camera were developed in the company's medical division, which produces devices to monitor eye movement during eye examinations. In this camcorder, twin light-emitting diodes illuminate the eye with harmless infrared beams. The position of the beams and the image of the eye are reflected on a special sensor, and a microprocessor senses the eye's movements. While Canon had introduced this feature earlier in its 35 mm cameras, making it work in video format was much more difficult. In a video camera, the eye controls must work continuously, not simply momentarily. In addition to focus capabilities, there are six other eye-controlled functions. At present, there's no comparable product available - a product-development objective that dovetails nicely with Canon's marketing strategy. As Canon Technical Coordinator Mike Zorich explains, "In video and camera products, Canon has always sought to distinguish itself through technological leadership and exclusive technology. Then we promote the heck out of that exclusive technology. These tend to have higher price points and appeal to consumers with a higher level of quality consciousness. And, of course, more profit per unit."

SAMSUNG MS6745G SENSOR MICROWAVE OVER Samsung Electronics America/President: K.R. Song

With younger, hipper advertising and aggressive, cutting-edge product-development strategies, Samsung is redefining itself in the marketplace by going after "Generation X" consumers with a full range of electronic products. This handsome stone gray microwave, featured prominently in the company's recent ad campaign, is the best example of that. Gases and humidity emanating from cooking food allow the microwave to "sense" which power level is appropriate and when the dish is done. Consumers simply choose one of six instant cook-pad buttons - covering the most commonly requested functions - and the microwave chooses the temperature and decides when the food is thoroughly, evenly cooked. For complicated recipes, Samsung has three-stage programmable capabilities. While other manufacturers have developed sensor microwaves, Samsung's distinguishes itself with one-button simplicity and an upscale curved front design. "The rest of the industry is middle-of-the-road, looking at traditional heating and reheating in boxy appliances," says Matt Mustachio, Samsung's senior national marketing manager, home appliances. "We're going after younger, busy, health-conscious consumers."

Targeting such customers is becoming a corporate mission elsewhere at Samsung: Among other new products available is the MAX555 mini audio system. Along with more traditional CD and cassette features, it includes options such as background natural sounds. as well as "Bio EQ," which - after a listener inputs birth date and current date - gives a readout of the most appropriate music choice, given the listener's current intellectual, emotional, and physical biorhythms.

CASIO QV10 DIGITAL CAMERA Casio/President: John J. McDonald

As the filmless revolution takes hold and prices drop, it seems inevitable that digital cameras will have a significant share of the future camera market. Casio, as one of the first entries, gets high praise from critics and other industry watchers. With its Japanese roots in computers, and a product already on the market for a few years in Japan, Casio clearly has advantages new competitors such as Kodak don't. And with its multiple applications and display modes, Casio is targeting not only consumers, but business-to-business and education users.

While the design features were developed at Casio's R&D facilities in Japan, support clearly emanates from the company's U.S. outpost. U.S. company head John McDonald - an avid amateur photographer and computer buff - frequently invites the company's designers and engineers to management meetings as a way of demonstrating his enthusiasm for product development.

ASPIRE PC SYSTEM Acer America/CEO: Ronald Schwang

Aspire is the first computer design to anticipate the day when computers are as much a piece of living-room consumer electronics as they are a technological tool. With its soft shapes, flowing lines, and dark, rich colors, this computer moves out of the realm of plastic boxes and into the more sophisticated area of home furnishings. Its sides are rounded; the top of its monitor swoops asymmetrically; and random "Swiss cheese" holes provide ventilation. Noted computer designers, frogdesign inc., of Sunnyvale, CA, also gave the machine an all-in-one look, with a monitor that can be placed on top of the CPU, and eliminated desktop clutter by integrating the machine's speakers. Aspire also offers easy installation through the use of color-coded cables and corresponding connectors. Consumers apparently appreciate such considerations. Sales have exceeded the company's forecasts. In the fourth quarter, Acer doubled year-earlier computer sales, ringing up $505 million.

Although competition on the home-front is about to start, with Sony, NEC, Packard-Bell, Compaq, and Thomson Electronics all developing home-friendly PCs, Acer isn't worried. That may be because the Taiwan-based company's North American unit sees the Aspire as just a foothold into a bigger, broader future. "Within the next year, Acer hopes to become more like a consumer electronics company in the states," says Spokesperson Robyn Jenkins. After all, she adds, "overseas we sell things such as TVs, cellulars, and pagers."

SONY PLAYSTATION Sony Computer Entertainment America/Chairman: Shigeo Maruyama

When Sony considered the market positioning for its entry into the videogame arena, the choice of name was an important indicator of how the company views the product. "PlayStation suggests a 'work-station for fun,'" says company spokesperson Andrea Vassallo, removing the game from the toy category and launching it into the larger world of technology - a precursor to the one-monitor-fits-all device at the top of every computer lover's shopping list. The design mandate was to come up with a PlayStation that looked like a game device, but maintained the sophisticated styling of consumer electronics. It had to be durable enough for children to abuse, but still offer such category sophistication as three-dimensional molding for grasping the game grips. By targeting males age 12 to 24, Sony is reaching wider than most of its competitors. Nonetheless, the company had to grapple with high-volume production and cost considerations. So the company chose a simple CD design that reduced component molding time and held down the number of parts, permitting the assembly of one PlayStation every 15 seconds on the factory assembly line. And that's a good thing: Since the company introduced the Playstation last September, U.S. sales into retail have totaled 1.2 million, and the company currently is enjoying software-to-hardware sales ratios of 6-to-1, making Sony the dominant manufacturer in the videogame category.

GMC THIRD TRUCK DOOR Chevrolet Motor Division/General Manager: John Middlebrook

The full-size pickup track is GM's No. 1 selling vehicle. Whether on rural roads, city streets, or suburban highways, Americans, it seems, can't get enough of them; Chevrolet expects that 50 percent of all car sales soon will be in the truck category. By adding a side-access panel, Chevrolet offers traditional pickup track buyers some of the flexibility and convenience provided by minivans and other sports utility vehicles - and, clearly, making the pickup track more appealing to the growing mini-van market. What allowed Chevrolet, and other truck makers, to consider adding a third door was the development of extended cab trucks. Nonetheless, these truck makers were concerned about the structural impact of cutting into the cabs. "When you add a third door, what keeps that from buckling in in the event of side impact?" asks Tom Hoxie, director of product information.

About three years ago, Chevrolet was finally reassured that the addition of a third door wouldn't compromise the truck's structural integrity, and it introduced the extra door on a concept car at the Detroit Auto Show. Response was overwhelming, paving the way for following through on '96 models.

STARTAC CELLULAR TELEPHONE Motorola/CEO: Gary Tooker

Who would have thought the likes of Vogue, Elle, and MTV would gush over a cellular phone as the latest must-have fashion item? They did, when Motorola, a pioneer in the development of cellular phones, introduced the first "wearable" model, a 3.1 oz., 3 5/8 in. by 2 1/4 in. unit that can be attached to its own holster, necklace, or athletic armband. Still the worldwide market leader in cellular phones, Motorola has been battling legions of new competitors in the last few years. Its weapon: the kind of groundbreaking innovation it used to create the industry. Motorola's most challenging design problem was maintaining an ear/mouth comfort ratio in such a miniaturized format - the smallest, lightest model currently on the market. But the company, which in 1989 became the first manufacturer to offer flip-top cellular phones, achieved this by literally folding the phone in half so that it is no larger than a conventional pager.

FREEWING SCORPION TILT-BODY AIRCARFT AERIAL ROBOTICS Freewing Aerial Robotics President: Hugh Schmittle

This radical, new, unmanned robotics aircraft design can literally tilt the forward portion of its body - including its propeller - in flight, independent of its wings. The result is a vectored thrust that permits near vertical takeoffs and landings without the need for runways and airports. Unlike helicopters, the design's freely pivoting wing automatically neutralizes turbulence and eliminates stalls. Previously, only complicated technologies that required hundreds of moving parts and computer-intensive control systems could perform this way.

Freewing Aerial Robotics is part of the University of Maryland at College Park's Technology Advancement Program, a high-tech "incubator" created to foster collaboration between academia and industry. In nine years, the company, in which the university holds only a tiny financial stake, has received such honors as admission to the U.S. Small Business Administration's list of the top innovations of the 20th century; the grand prize for excellence in design from Design News, the Discover Award for technological innovation; and a special technological innovation award from the Experimental Aircraft Association. While many potential users of this plane will be drawn to its defense surveillance capabilities, Freewing, looking to develop as a commercial enterprise, has designed it with commercial purposes in mind. And interest is high. The company recently signed a marketing agreement with Rockwell International, and it has received inquiries from companies in industries ranging from power-line inspection to tuna fishing, the former from a fleet owner concerned about the safety of his manned helicopters during storms.

THE DESIGN-CHALLENGED

While there haven't been any outright design catastrophes quite like the Edsel in recent years, there have been some real clunkers - sometimes because a coherent design strategy was missing, sometimes because the business case was faulty, and sometimes because the technology was overhyped or under-delivered.

In the search for design calamities, there's easy picking in the high-tech consumer electronics category. After all, innovation is a precursor to obsolescence, and the pressure to get into the market quickly too often means products are rushed into market before their time. Last year, for instance, $60 million of hype behind Windows '95 (or what Mac partisans like to call Apple '88) only made this product's flaws more evident as consumer expectations were stoked in a summer-long marketing blitz. (Windows '95 already has been upgraded, lending credence to critics.)

Not that Apple gets off any better. In 1992, then-Chairman John Sculley was so anxious to brag about the company's soon-to-be launched Newton, a hand-held personal computer, he appeared at a trade show before a prototype even existed, waving an empty plastic box and showing on a Mac what the Newton could do. A year later, the Newton MessagePad appeared, with poor handwriting recognition capabilities, mediocre messaging, no wireless modem, and a high price tag. Although Newton and other personal digital assistants have since both improved and caught on, most PDAs still get mixed reviews.

In quick-changing, technologically driven industries, such misses are arguably part of the learning curve. More curious are recent familiar, everyday objects and utensils, where slip-ups occur in the kind of details that should have become apparent in usability testing, but somehow didn't. Take the design-award-winning Thermos Thermal Electric 16001 Grill, which looks like a flying saucer on three legs. Handsome design seems to have backfired here: The soaring arc of the grill's cover, so appealing aesthetically, makes it easy for unwary consumers to burn their forearms on the edge as they open and shut it; several cases against Thermos now are pending. Likewise, there is Black & Decker's line of steam irons, part of a whole range of innovative kitchen products the company has launched in recent years to broaden and revitalize its image. While most irons on the market have rear-mounted cords that drop out of sight or rotate to the right or left, most of B&D's models have upright cords that, unfortunately, jab into users' wrists. And there are the child car seats, such as the Kolcraft Traveler 700, which failed Consumer Reports' safety tests, contained errors in instructions, did not fit properly in cars with short safety belts, and required installation every time it was used.

Noreen O'Leary is a New York-based editor-at-large at Adweek. Her pieces about media, design, and architecture have appeared in The New York Times and The Wall Street Journal.