07/05/2024
From the perspective of using different tools, the key is their value in influencing the effectiveness of the organisation.
🌟 WHAT IS THE VALUE OF DESIGN THINKING?
To answer this question, it is particularly useful to look at two studies that have analysed the impact of Design Thinking processes on revenue and on the cost and duration of projects.
➡ In McKinsey & Company was created the McKinsey Design Index (MDI) which refers to practices related to Design used in an organisation. Higher MDI translates into higher level of using practices associated with Design Thinking. On the basis of collected information it is possible to see a correlation between Design practices and income of an organisation. These companies which have high level of the McKinsey Design Index within 5 years achieved approximately 10% higher average income than companies which do not use the Design practices (approx. 3-6%). The studies were conducted on the basis of the data acquired from MDI (McKinsey Design Index), S&P 500 (market index that comprises of 500 companies with the highest capitalisation quoted on New York Stock Exchange and NASDAQ.
In McKinsey & Company “The business value of design” (https://mck.co/3vANtfp)
➡ IBM commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by engaging IBM’s Design Thinking practice. The purpose of this study is to provide readers with a framework to evaluate design thinking’s potential financial impact for both individual projects and a grander organizational transformation. To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four of IBM’s Design Thinking clients and surveyed an additional 60 executives who have employed design thinking at their organizations, some with and some without IBM. These organizations turned to design thinking to address a variety of challenges
Findings:
✔ Organizations slashed the time required for initial design and alignment by 75%.
✔ Project teams leveraged better designs and user understanding to reduce development and testing time by at 33%.
✔ 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.
✔ Faster time-to-market enabled increased profits from netnew customers and the higher present value of expected profits.
✔ Improved collaboration and business strategy drove increased customer experience and sales, streamlined processes, and reduced project labor.
The Total Economic Impact™ Of IBM’s Design Thinking Practice (https://ibm.co/3PM9MFy)