The Business Value of Design
Wasim Irshad
CEO | Founder | I help startups and businesses grow and scale with the right software?solutions.
What sets the best design performers apart is their remarkable ability to achieve nearly double the revenue and shareholder returns compared to their industry counterparts.
According to a report, start-ups have proven the effectiveness of using prototyping and iterative learning to make improved decisions. The abundance of user data and advancements in artificial intelligence (AI) has now opened up valuable opportunities for new approaches.
Additionally, quick access to real customers is easily achievable through various channels, including social media and smart devices. These exciting developments emphasize the importance of prioritizing the user in business decisions, fulfilling the aspirations of design leaders.
Today, we want to outline four key design actions that have demonstrated a strong correlation with improved financial performance. These actions include:
Continuous Iteration?
Design thrives when it involves continuous learning, testing, and modifying based on user feedback. This approach helps to innovate while reducing the risk of big failures, unlike some companies' methods which separate design stages and risk losing consumer input. Without such diversity and interaction, design could happen in a vacuum, creating potentially great work that isn't marketable or doesn't satisfy customers.
User Experience
Top-performing companies focus on providing a comprehensive user experience. They understand the blend of physical, digital, and service elements and see design as a tool to enhance this whole experience. Given today's advanced technology, products and services often combine to offer integrated experiences to users, like smartphones advising on travel times or smart homes adjusting heating schedules.
The emphasis is on understanding the user's journey and needs instead of simply replicating previous technical specifications. It involves studying customers, learning about their requirements, and using this knowledge in every decision-making process. However, only about half of the companies surveyed actually conduct user research before starting their design process.
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Cross-functional Talent
In top-performing companies, user-centric design is embraced as a collective responsibility rather than being confined to a specific department. In the past, there was a stereotype of traditional design departments where a group of tattooed and aloof individuals worked independently, isolated from the rest of the organization. They were often seen as renegades or mavericks, protecting their ideas and expressing frustration with narrow-minded engineering or marketing heads who failed to understand their innovative visions.
While this stereotype may not be as prevalent today, it can still linger in some organizations.?
Analytical Leadership
The top-performing companies have recognized the importance of design as a key management issue. They have rigorously evaluated their design performance, giving it the same attention as tracking revenues and costs. However, design leaders are often treated as second-class citizens in many other businesses. Decisions are frequently based on instinct rather than solid evidence when they do.
In the past, designers have contributed to the issue by failing to fully embrace design metrics or effectively demonstrating how their designs align with business objectives.?
Final Thoughts:
Lean start-ups have showcased the effectiveness of prototyping and iterative learning in making better decisions. Advancements in artificial intelligence (AI) and the abundance of user data have opened up opportunities for innovative approaches, such as computational design and analytics.?
Real-time access to customers through social media and smart devices further emphasizes the significance of prioritizing user needs in business decisions.
Credits: https://www.mckinsey.com/capabilities/mckinsey-design/our-insights/the-business-value-of-design