The Business Value of Design.
McKinsey conducted the most extensive research project that studied the effects of design actions, and their impact on business value. 5 years, 300 public companies, 100K design actions, Millions of pieces of financial data. Companies categorized in quartiles based on their implementation of design thinking.
A few key findings, that were consistent across digital and physical goods, as well as industry.
They found that the market disproportionately rewarded companies based on their level of user-design adoption. As a matter of fact, according to their data, companies that fully implemented design thinking in their organization, increased their revenues and shareholder returns at nearly twice the rate of their industry counterparts. While this is amazing, and not unexpected to those that have seen the value of design thinking, the following finding was surprising, even to me: The market only rewarded companies that fully implemented design thinking across that business. Companies that spend a great deal of effort and resources, but did not implement design thinking across the full user experience, saw only marginal rewards as compared to those companies that implemented small changes.
Read the full report at McKinsey & Company