Design-driven companies outperform the
Completed in January 2013, the dmi: Design Value Index built by Motiv Strategies, tracked the value of select publicly held companies and monitored the impact of their investments in design and innovation on stock value over time relative to the S&P Index. Selected companies met a rigorous set of six DMI design management criteria. Out of a pool of 75 U.S. companies, just 15 meet the criteria. These companies include Apple, Coca Cola, Ford, Herman-Miller, IBM, Intuit, Newell-Rubbermaid, Nike, Procter & Gamble, Starbucks, Starwood, Steelcase, Target, Walt Disney and Whirlpool.
Results show that over the last 10 years design-led companies have maintained significant stock market advantage, outperforming the S&P by an extraordinary 228%.
Based on this analysis Motiv and DMI developed a list of 8 prominent ways companies are winning in the marketplace through design. The basic premise is that using design methods to understand customer needs better as well as to reframe complex problems is leading to insights that constitute strategic competitive advantages. Further, utilizing top design talent to translate insights and new strategies into tangible solutions in hardware, software and service interactions helps companies grow faster through differentiation and better customer experiences. Margins can also be driven higher through generating an “I gotta have it” [at any cost] mentality on the part of customers.
As a natural outcome of the studies, DMI assembled a team of academics and design practitioners and joined with Microsoft to develop a useful scorecard that DMI members can use to assess design's impact within their own organizations. Find an introduction to the Design Value Scorecard here.
dmi:Review: A New Design Measurement and Management Model
Inc.: "Why You Should Care More About Good Design"
FastCo Design: Study- Good Design Really is Good For
CNBC: Using Design to beat the S&P 500
dmi:Dialog: Design-Driven Companies Outperform S&P by 228% Over Ten Years
Take the survey here http://www.surveymonkey.com/s/designvalueproject