Good design is good business.
Photo by Matthew Yohe.

Good design is good business.

In a functioning free-market, companies exist for one reason and one reason only - they fulfill a customer need. The better a company serves that customer, via a lower price, better service or product, especially in comparison to its competitors, all else equal, the more successful that company will be.

Companies that stray from this foundational principle typically struggle, and companies that embrace this over the long term are much more likely to succeed.

“The most important single thing is to focus obsessively on the customer," Jeff Bezos, Founder and CEO of Amazon often says, "our goal is to be earth’s most customer-centric company.”

Many companies believe they are customer-centric, but when you look at their actions you will find that they often have competing objectives. Some companies are competitor focussed, product focussed or sales focussed. Others must meet their numbers and are willing to sacrifice customer satisfaction to do so. Companies can be successful with strategies that may overlap with customer needs, but ultimately customer needs will drive long term company success.

Design is found at the intersection of the company and its customers. This doesn't necessarily mean aesthetics, though it often does. Design, more broadly, considers how best to serve the company's customers and determines how your customers interact with those products and services. Where your company has a touchpoint with your customers, and how your business fulfills customer needs, you will find design. Though Steve Jobs avoided the word, I think he sums it up well:

"Design is a really loaded word. I don’t know what it means. So we don’t talk a lot about design around here, we just talk about how things work. Most people think it’s about how they look, but it’s about how they work."

McDonald's is a good example. Look beyond the golden arches or the hunger-inducing digital menu behind the counter or the color and materials that make up the tables and chairs (though these are all important!). How is it that you can order and have your food in minutes? In this case, the customer need = tasty food, quickly. By redesigning the layout of the kitchen and designing a process that makes routine tasks easy, McDonald's built its empire on serving customers' needs better than anyone. You can get a preview of how John Lee Hancock recreates this process in "The Founder" in this short “Anatomy of a Scene” video from The New York Times. Design was at the forefront, like it often is.

These days, customers often first reach the companies they interact with online. The digital transformation from physical to digital has moved design from the storefront to the desktop or mobile device. However, the same principles apply. Amazon's customers want to be able to find anything online, buy it in seconds, and have it delivered as fast as possible - the same day would be nice. This simple customer need is incredibly difficult to address, but among other things, Amazon has accomplished it through simple and easy online purchasing and incredibly efficient warehouse design and logistics. Good design is at the heart of why Amazon is so successful.

Your company strategy and design meet right at your customer's doorstep. Obsessing over the customer should lead you to review the experiences, from all angles, where your customers meet your business and how you serve them and then generating a company vision and strategy that best serves those needs.

Good design isn't a luxury. Good design is good business.

Rick C.

Head of Sales, West USA for Teltonika Networks. LTE, 5G solutions for M2M. Remote management software solutions and industrial networking products.

4 年

Fantastic analysis. I’ll hesitate to use the word design as often as I do without thinking of the entire experience.

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