Why an innovation and design driven approach matters
ADapT was developed to catapult Industrial Age Companies into the Digital Age in a straightforward, easy to follow and coherent fashion. ADapT is an Innovation and Design Driven, digital transformation method, and this is a significant part of the design (and its success).
We will expand on what an innovation and design-driven approach entails in detail during the rest of the course – but before that we need to answer why the approach was followed:
Forrester Research in a recent study showed that innovation and design-driven organisations outperform their counterparts on the S&P500 by 219% over 10 years. That is not an insignificant distinction by any means!
This study also showed that innovation and design-driven organisations:
- Have a 41% higher market share
- Have 46% competitive advantage overall, and
- Have 50% more loyal customers
Other studies have shown that incumbent organisations increasingly have less of a competitive advantage if they don’t leverage the digital world than those who do! Embracing new technology implies high levels of innovation and the need to redesign products, services, processes and business models.
In the 1980s the average age of an S&P500 Company was about 40 years, it has recently shrunk to 17 years and falling – the reason large and old companies find it challenging to adapt to the 4th industrial revolution.
The evidence shows that if organisations don’t learn how to innovate and design new products and services, they are soon toast!
But what is a design-driven innovation approach?
In simple terms, – design-driven innovation ensures that customer needs and experience, strategy and technology are expertly woven into every product or service an organisation offers. Everything the organisation is doing, its activities, processes, systems and business model, all support the delivery of optimal customer experience of the organisation, its products and its services.
In an innovation and design-driven organisation, products and services are designed for the customer and not because the organisation has the capability or expertise to make something. Design is not only about functionality and utility but also experience and feelings.