The Value of Design-Led Innovation
The Design Management Institute released a report that shows clear positive correlation between design driven organizations and shareholder value. It shows that design-centric organizations have outperformed the S&P by 211% over the past 10 years. Such companies go beyond using design as a service, seeing it instead as a catalyst for organizational change and something that should drive business strategy and innovation.
Organization and culture are the big hurdles to digital business transformation.– Gartner Inc, 2016
We believe that the sweet spot of innovation is at the confluence of technical feasibility, business viability, and human values of usability and desirability. While innovation can still happen when considering just one or two of these factors, truly transformative and sustainable innovation happens when we create products or services that customers want, will pay for, and that are technically sound.
How can organizations create cultures of design-led innovation? To answer this question, we developed a framework based on our experience working closely with over 500 clients around the world on strategic design and co-innovation initiatives. From this framework, we have created a assessment that you can take to find out your organization’s innovation readiness, some barriers to innovation you face, and strategies to overcome them.
The 3 Pillars of a Culture of Innovation
An organization needs the right mix of design skills and team members with a mindset for design-led innovation. In addition, executive support is essential to ensure that design is treated as a priority at the company.
Process refers to the way in which people collaborate, discover problems and co-create with end users to solve them. It is essential that this iterative and human-centered process is applied to development and business problems alike.
Physical space plays a key role in fostering innovation and creativity. Teams need dedicated spaces where they can collaborate, iterate and co-innovate with end users and customers on projects.
Innovation Readiness Stages
Efforts are grassroots and ad-hoc. Design is seen as a cost.
Design is important and some resources are provided, but success is not sustainable.
Competent design capabilities are used as part of day-to-day business activities.
Design-led innovation is practiced throughout the organization, and design drives business strategy.
Assess your Organizational Readiness
Take this free assessment to find out your organization’s stage of readiness. This assessment takes approximately 15 minutes to complete. Your data is safe & private.
SAP’s Innovation Readiness Assessment offers tremendous value to organizations interested in harnessing the power of design to drive systemic innovation at their companies.– Jeneanne Rae, founder of Motiv Strategies and DMI's Design Value Index