The Total Economic Impact Of IBM’s Design Thinking Practice
Rob Curedale
President at Design Community College, Best selling author of 30 books, consultant, educator, facilitator, founder Linkedin groups with 2 million designer members, traveller. Helping creative people share good ideas
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A Forrester Total Economic Impact? Study Commissioned By IBMKey Findings
Quantified benefits.
The following risk-adjusted quantified benefits are representative of those experienced by the organizations interviewed:
? Project teams doubled design and execution speed with IBM Design Thinking. Profits from faster releases combined with reduced design, development, and maintenance costs to deliver $678K per minor project and $3.2M per major project, for $20.6M in total value.
? Organizations slashed the time required for initial design and alignment by 75%. The model demonstrates cost savings of $196K per minor project and $872K per major project.
? Project teams leveraged better designs and user understanding to reduce development and testing time by33% This equates to cost savings of $223K per minor project and $1.1M per major project.
? IBM’s Design Thinking practice helped projects cut design defects in half. Projects were more successful in meeting user needs, thereby reducing design defects and subsequent rework to save $77K per minor project and $153K per major project.
? Faster time-to-market enabled increased profits from net new customers and the higher present value of expected profits. Faster time-to-market increased profits by $182K per minor project and $1.1M per major project.
Benefits And Costs
IBM’s Design Thinking practice cuts cost by accelerating projects: $20.6 million
IBM’s Design Thinking practice reduces risk and increases portfolio profitability: $18.6 million
2x Faster time-to-market 75% Reduced design time 33%
Reduced development time 2 | The Total Economic Impact? Of IBM’s Design Thinking Practice
? Human-centered design improved product outcomes reduced the risk of costly failures and increased portfolio profitability. Refined strategic prioritization enabled investments in solutions that were less likely to fail. The better design increased the average product profits. IBM helped expand design thinking at the organization over three years to penetrate one-quarter of the entire portfolio, enabling $18.6M in increased profits. ? Cross-functional teams collaborated to share problems and find solutions, reducing costs by $9.2M in streamlined processes.
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